Austin Deasy
Ceist:62 Mr. Deasy asked the Minister for Energy if he will outline the role of Coillte Teoranta in relation to afforestation; if this body is self-financing at present; and if not, when it is expected to be self-financing.
Written Answers. - Afforestation Role of Coillte Teoranta.
The Government's policy is to expand national planting to 30,000 hectares in 1993 and to maintain it at this level each year to the year 2000. Coillte Teoranta's contribution to the achievement of this target will be 14,000 hectares and, having regard to the 12,000 hectares planted by Coillte Teoranta last year, I am satisfied that Coillte Teoranta's role in the overall afforestation effort is showing satisfactory progress.
It was acknowledged when Coillte Teoranta were established in 1989 that, given the age profile of the transferred forests and projected timber production, Coillte Teoranta would not be in a position to achieve self-financing for a number of years. For this reason the Forestry Act, 1988, included financial provisions relating to both current and capital expenditure which would allow some Exchequer funding of the company to continue for some time.
The necessity to provide funding for current expenses was eliminated in 1990, two years ahead of schedule. In relation to capital development, a provision of £10 million has been included in the 1992 Public Capital Programme which would bring aggregate Exchequer capital funding for Coillte Teoranta to £53 million as against the maximum of £100 million provided for in the 1988 Act.
I am not in a position to indicate precisely when Coillte Teoranta will be able to self-finance its capital development programme but the progressive reduction in Exchequer funding for capital purposes since Coillte Teoranta's establishment suggests that a self-financing position can be achieved in the near future and at considerably less cost than the maximum provided for in the 1988 Act.