Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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27. To ask the Minister for Agriculture, Food and the Marine the rationale behind the sale of Coillte’s portfolio of telecommunications assets; his plans to sell off other Coillte assets; and if he will make a statement on the matter. [34217/15]

Simon Coveney (Cork South Central, Fine Gael)
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The rationale for the disposal of Coillte’s portfolio of telecommunications assets is that it will enhance Coillte’s focus on its core activities in forestry and the operation of its board mills, which was an underlying principle in the Government Decision relating to Coillte in June 2014.  The restructuring is also consistent with the Government Decision, also relating to Coillte, in June 2013. I understand that Coillte has stated that the proceeds from the transaction will strengthen the company’s balance sheet and support their ongoing investment of €59 million in one of their panel board subsidiaries, SmartPly which is based in Belview Port, outside Waterford city, and further investment in its renewable energy business. In relation to the actual transaction, Coillte Teoranta was established as a private commercial company under the Forestry Act 1988. In compliance with the Code of Practice for the Governance of State Bodies, such a significant disposal was a matter for the Board of Coillte while my approval and the consent of the Minister for Public Expenditure and Reform for the disposal were required, also under the Code of Practice. The business was sold through a competitive bidding process in which the sale of the assets was widely advertised. The sale was handled on Coillte’s behalf by Goodbody Corporate Finance and overseen closely by the Board of the company.

Coillte has stated that, while sites at 298 locations were included in the sale, the total area of land associated with these sites is less than 15 hectares. The company has also given an assurance that access to its forests for recreation use is unaffected by the sale of their telecoms portfolio.

The decision to dispose of Coillte’s telecommunications portfolio was not made by me or the Government. It was a business decision by Coillte to capitalise on the significant value built up in its telecommunications business over the last 30 years at a time when there is considerable interest in acquiring infrastructure assets and to use the proceeds for re-investment in core aspects of its business thus creating new State assets.

As I have mentioned, under the Code of Practice, significant disposals are a matter for the Board. The company is currently refreshing its corporate strategy which I will be considering in due course.