As the Deputy is aware, further to the Government’s decision that a concession for the harvesting rights to Coillte’s forests be considered for sale, the National Treasury Management Agency, via its NewERA Unit, engaged with Coillte, the Department of Public Expenditure and Reform and my Department to examine the financial and other implications of a potential transaction. Substantial work has been undertaken to date on the identification of the forestry assets involved, the determination of their value and the consideration of a number of issues associated with the proposed sale of the harvesting rights. This whole process is a very complex one and it is not possible at this stage to pre-empt the outcome of the analysis or to give an estimate of the possible net proceeds. As I have said previously, the Government will proceed with caution in relation to this matter and no final decision has been taken, as yet.
As part of the process, a number of detailed financial, technical and other specialist reports were prepared for Coillte, by external specialist consultancy bodies, in full consultation with the Board of Coillte and its executive management. As Coillte is a commercial company trading in a competitive environment, matters relating to the performance of its various businesses and its portfolio are commercially sensitive, and it is therefore not appropriate, at this point in time, to make public the analysis conducted to date.
NewERA, the Department of Public Expenditure and Reform and my Department are considering the report by Peter Bacon and Associates, commissioned by IMPACT, containing an “Assessment of the Consequences of the proposed Sale of Coillte’s Timber Harvesting Rights – 10 January 2013” and the report by EPS Consulting commissioned by the Irish Timber Council on “The impacts on the sawmill sector arising from the proposed sale of Coillte’s harvesting rights ”. Both of these reports provide useful background and insight to the concerns of the Coillte Unions and the Irish Timber Council, as expressed at the meetings with the respective groups, and contribute to the consideration process.
The analysis is ongoing as it is essential that any decision is based on the most accurate, comprehensive analysis possible. The outcome of the overall analysis will be considered by the Government upon its conclusion with no further decision to be taken on Coillte until it is discussed at Cabinet.
