Dáil Éireann díospóireacht -
Thursday, 18 Apr 1996

Vol. 464 No. 2

Written Answers. - Coillte Teoranta Competitiveness.

Batt O'Keeffe

Ceist:

22 Mr. B. O'Keeffe asked the Minister for Agriculture, Food and Forestry the concerns, if any, he has at the competitiveness of Coillte Teoranta, particularly its administrative overheads and structure in comparison to known international levels. [6075/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

Coillte Teoranta was established pursuant to the provisions of the Forestry Act, 1988. Under that Act, Coillte Teoranta was given a mandate to undertake its operations on a strictly commercial basis.

This commercial mandate inherently requires the company to continuously assess its competitiveness and efficiency levels. The Forestry Act, 1988 specifically empowers the company to utilize and manage the resources available to it in a manner consistent with its commercial objectives. The 1988 Act also specifically requires Coillte to conduct its business at all times in a cost effective and efficient manner.

In these circumstances, it is the statutory responsibility of the company itself to maximize its competitiveness and level of efficiency. However, for the information of the Deputy, I would add that the company, since its establishment in 1989, has rigorously pursued a policy of containing costs at all levels and has also undertaken extensive restructuring of its operations. This has, in my view, met with a considerable measure of success. From an essentially break-even position in the first five years of its operations, the company posted a profit of almost £11 million in 1994 and the 1995 results, currently being finalised and to be announced shortly, will again show a strong profit performance by Coillte.

Valid international comparisons are somewhat difficult to make given, for example, that Coillte's forest estate is entirely man-made and is relatively immature, thus requiring comparatively extensive silvicultural treatment. In my view, the critical factor centres on the recognition by Coillte that its operations are subject to international market circumstances and that it continues to improve its efficiency levels to ensure future success in the international marketplace. Notwithstanding the considerable progress made to date, Coillte intend to continue its policy of containing costs which I wholeheartedly endorse.