Dáil Éireann Debate, Thursday - 9 December 2021
53. Deputy Richard Boyd Barrett asked the Minister for Agriculture, Food and the Marine if he will report on the procedures and protocols in place between his Department and Coillte in relation to the sale of Coillte lands and forests; and if he will make a statement on the matter. [60849/21]
View answerCoillte has a multi-faceted role as the State's forestry company. Part of this is the responsibility, as a commercial state body not in receipt of funding from the exchequer, to act commercially and make dividend payments to the state. Land sales are part of this business model and I am assured that Coillte considers each request to sell land on its individual merits. Its final decision is influenced by factors such as the value of the land for amenity and biodiversity value, in addition to its commercial value.
As a state-owned enterprise Coillte has, of course, certain obligations to its shareholding Ministers. Under Section 14 of the Forestry Act 1988, it states that ‘the company shall submit to and agree with the Minister each year a programme for the sale and acquisition of land and the sale of timber, whether standing or felled.’ It is not considered practical for a state company to submit every individual commercial decision for consent.
In a letter dated 22nd February 2021 to my Department, as required under Section 14, Coillte stated their intention to sell a total area of 450ha of land during 2021, together with their intention to purchase up to 650ha of land for specific projects and potentially, to purchase an additional 300ha of immature forestry if the opportunity arose during the year for timber production.
As a state owned enterprise, the company is also subject to the Code of Practice for the Governance of State Bodies. Coillte operate in compliance with section 8.34 of the Code of Practice which requires that disposals of land above a value of €150,000 should be by auction or competitive tendering process, other than in exceptional circumstances.
The Code of Practice requires an oversight agreement between the relevant Minister/parent Department and commercial State bodies known as the Shareholder Letter of Expectation. A Shareholder Letter of Expectation issued to Coillte on 9th May 2017, the main focus of which was the development and agreement of certain financial targets for the company. It is proposed that an updated Shareholder Letter of Expectation will issue to the company shortly and will consider Coillte's role and strategic direction.
