Luke Flanagan (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

97. To ask the Minister for Agriculture, Food and the Marine if he no longer plans to sell the harvesting rights of Coillte forests; and if he will make a statement on the matter. [6345/14]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government decided on 19 June 2013 that it is not the appropriate time to proceed with the proposed sale of Coillte Harvesting Rights. It was also decided, at that time, that the current focus will be on the restructuring of Coillte, overseen by NewERA and the relevant stakeholder Departments. This decision was made on the basis of a comprehensive analysis by NewERA, Coillte, the Department of Public Expenditure and Reform and my Department. The analysis included, as part of the process, a number of detailed financial, technical and other specialist reports in relation to Coillte, by external specialist consultancy bodies, in full consultation with the Board of Coillte and its executive management. A number of bodies also outlined their views to the Oireachtas Joint Committee on Agriculture, Food and the Marine.

It is important to put the consideration about the sale of Coillte harvesting rights into context. As a Government, it was necessary had to examine all reasonable means to raise revenue, including the release of some of the value from State assets. Coillte, as a state owned enterprise managing the State's forest estate which represents a significant state asset, formed part of that exercise. The Government is very much aware of the economic and social benefits of forestry, as is evident by the allocation of funding in 2014 for the forestry programme, and of the important contribution Coillte makes in relation to the supply of timber to the sawmills, in the provision of forest recreational activities and valuable tourism attractions and in the maintenance of the State's forest estate. I have consistently said that the Government would proceed cautiously on this issue as it was important not to do anything to adversely affect the forest industry and its ongoing development.

In relation to the restructuring of Coillte, proposals in relation to restructuring are currently being considered and evaluated by NewERA. The Government will consider all the options to maximise value from Coillte when the restructuring is complete. The Government also decided, in June 2013, that a robust analysis be carried out to evaluate how to give effect to a beneficial merger of Coillte with Bord na Móna to create a streamlined and refocused commercial state company operating in the bio-energy and forestry sectors, as committed to in the Programme for Government. NewERA is undertaking a financial evaluation on behalf of the relevant Government Departments (my Department, the Department of Public Expenditure and Reform and the Department of Communications, Energy and Natural Resources), which is currently being finalised. The outcome of this analytical exercise will then be considered by the relevant Ministers in due course.