Further to the Government decision that a concession for the harvesting rights to Coillte’s forests be considered for 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 an advanced 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 and consequential implications for the company and its levels of employment These issues each require detailed consideration. Case studies of the sale of State owned forestry in other countries, including New Zealand, has formed part of the analysis to date.
In relation to the supply of timber to the processing sector, the Government is committed to developing and managing Ireland’s forestry resource in a manner which will ensure sustainable output and growth into the future. Total roundwood harvest during 2011 was approximately 2.7 million cubic metres. The All Ireland Roundwood Production Forecast, published by my Department in 2011, estimates that annual net realisable roundwood volume production for the island of Ireland will increase to 6.17 million cubic metres by 2020. Of this, approximately 2.5 million cubic metres (c. 40%) is expected to come from private sector forests. These figures and particularly the increase in private timber production are excellent indicators for future growth in our forestry sector.
