Dáil Éireann Debate, Tuesday - 23 September 2014
243. Deputy Richard Boyd Barrett asked the Minister for Agriculture, Food and the Marine regarding the recent State loan of €60 million to Coillte for its board-making business in Waterford, who oversees the way this money is invested or spent; if a cost benefit analysis is conducted prior to granting the funding; if conditions and criteria attach pertaining to value for money for the public; and if he will make a statement on the matter. [35492/14]
View answerCoillte Teoranta was established as a private commercial company under the Forestry Act, 1988 and day-to-day operational matters, such as the project to upgrade the Smartply manufacturing facility in Waterford, are the responsibility of the company. I wish to state, in the first instance, that Coillte did not receive a State loan of €60 million. The funding of the project was an operational matter for the company, subject to my approval and that of the Minister for Public Expenditure, given with the consent of the Minister for Finance, in relation to consent for borrowings under Section 24(1) of the Forestry Act 1988 (as amended). As indicated, Coillte is responsible for conduct of the project itself but, in the interests of oversight, NewERA will be regularly reviewing the project with the objective of monitoring delivery of the project within budget and on schedule.
One of the functions of NewERA is to review, from a shareholder perspective, capital investment plans of the commercial state companies under their remit, one of which is Coillte. The business case by Coillte for the borrowing of funds to invest in the upgrading of Coillte was accordingly thoroughly considered by NewERA and the shareholders Departments.
