asked the Minister for Energy the targets given by him to the board of Coillte Teoranta which would give the State a growing financial return; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Coillte Teoranta.
6.
I have charged the board of Coillte Teoranta with the immediate task of building a modern timber growing business which will yield a positive and growing financial and economic rate of return for the State.
The medium targets have been set out for the company in the context of the recent national plan. In this, Coillte Teoranta's first year of operation, the emphasis is on the establishment of a new commercial structure and an overall reduction in costs while, at the same time, maintaining a planting rate of a least 10,000 hectares and timber production of at least 1.5 million cubic metres.
When the House was processing the Bill establishing Coillte Teoranta, the Minister promised that he would give an idea of the timespan within which the company would have to break even. If that information has been passed on by the company will the Minister give it to the House?
It is important to bear in mind that the company was established on 1 January last. They have been making exceptional progress since and, in fact, will exceed their target. There is little the company can do about the growth of timber in State forests. The only avenue open to them is to improve their operations, and they have done that since they were established. The objectives set out in the national plan must be met by 1993 and, judging by the progress to date, there is little doubt but that the company will meet those objectives.
One of the objectives of the company was to establish a marketled industry but there is no evidence that they have gone into the marketing side of the business. Is the Minister of State satisfied that the company are making progress in regard to this?
I am satisfied about that. The company have increased their share of the domestic market significantly and are in the process of improving their export market. That is proof that the company are achieving their targets.