Dáil Éireann Debate, Tuesday - 9 October 2012
537. Deputy Éamon Ó Cuív asked the Minister for Agriculture; Food and the Marine the analysis that has taken place of the possible impact to the timber industry in the long term arising out of the proposal to sell Coillte forest crop; and if he will make a statement on the matter. [43472/12]
View answer538. Deputy Éamon Ó Cuív asked the Minister for Agriculture; Food and the Marine if an analysis has been carried out on the future viability of Coillte Teoranta in the event of the forest crop being sold; the result of this analysis; and if he will make a statement on the matter. [43473/12]
View answer539. Deputy Éamon Ó Cuív asked the Minister for Agriculture; Food and the Marine if an analysis has been carried out in the number of positions that will be lost in Coillte in the event of the forest crop being sold; the result of this analysis; and if he will make a statement on the matter. [43474/12]
View answer540. Deputy Éamon Ó Cuív asked the Minister for Agriculture; Food and the Marine if the proceeds of any sale of the forest crop owned by Coillte will be used to clear the deficit of €122m in the Coillte pension fund; and if he will make a statement on the matter. [43475/12]
View answer541. Deputy Éamon Ó Cuív asked the Minister for Agriculture; Food and the Marine if the responsibility to replant the forest will remain with Coillte in the event of the forest crop being sold; and if he will make a statement on the matter. [43476/12]
View answer542. Deputy Éamon Ó Cuív asked the Minister for Agriculture; Food and the Marine if it is intended to clear the debts of Coillte in part or in total in the event of the forest crop being sold; the amount of the debt reduction envisaged; and if he will make a statement on the matter. [43477/12]
View answerI propose to take Questions Nos. 537 to 542, inclusive, together.
The Government initially decided, in the context of the State asset disposal programme, that consideration would be given to the sale of certain assets of Coillte, excluding land. The Government has further decided, in relation to Coillte, that a concession for the harvesting rights to Coillte’s forests will be put forward for possible sale. Coillte Board and management have been actively engaged in recent months with NewERA, the Department of Public Expenditure and Reform and my Department to examine the financial and other implications of developing the potential of Coillte’s forest assets.
The process is at a preliminary stage and, aside from the valuation of the forestry assets, a number of issues have been identified in relation to the possible harvesting rights concession. These include, inter alia, the possible impact to the timber industry, environmental and social impacts, consequential implications for the company and its human resources, the future extent and nature of Coillte Group’s liabilities, and the replanting obligation. These issues each require detailed consideration. I wish to assure the Deputy that these issues and others form part of the ongoing analysis. As some of the issues identified, and the possible ways in which they may be addressed, have the potential of impacting on investor interest, my preference is to await the outcome of that analysis.
As regards the use of the proceeds from any sale of timber harvesting rights, I wish to remind the Deputy that the use to which the proceeds of such asset sales may be put is a matter that is provided for under the EU/IMF Programme. As agreed with the troika, half of the proceeds will be available to the Government to fund employment enhancing projects of a commercial nature, with the other half, while destined eventually to pay-down debt, also being available in the first instance to constitution a fund to underpin additional lending into Ireland.
