asked the Minister for Energy the full cost of planting and maintenance of the trees auctioned which have been indexed up to 1987 values; the way in which this compared to the reported price realised of £1.4 million in the summer sale; and if the loss incurred will be transferred to the new forestry company.
Written Answers. - Tree Planting and Maintenance.
60.
The normal pattern of production from conifer plantations is for thinning to commence when the stand of timber is about 20 years old. Subsequent thinnings occur at about five year intervals until the plantation is 40 to 50 years of age at which stage the site is clear-felled and replanted.
The action in September contained a mix of thinnings and clearfells. These thinnings and clearfells came from stands that vary in age, species and growth rates. Many of these stands still have crops which will provide further thinnings and clearfells. As expenditure and income are spread over a full rotation of up to 50 years, it is not practicable to assess the profitability of these individual stands. The question of transferring a profit or loss to the new forestry company does not arise. The prices achieved at the auction were up to the highest expectations, having regard to current market conditions.
In regard to the return to the State on its investment in forestry, I would like to draw the attention of the Deputy to the Report of the Forestry Review Group in 1985 which stated that forestry had achieved profitability of 2 per cent over and above inflation.