2012

Progress being made by Coillte

Steady approach needed when deciding on future strategy for our forests

Fine Gael TD for Wicklow, Andrew Doyle, has today (Thursday) welcomed Coillte’s progress in developing a clear and distinct strategy for the future direction of our forests. Deputy Doyle was speaking after Coillte appeared before the Oireachtas Committee on Agriculture, Food and the Marine this week.

“I was pleased to hear from Coillte about the significant progress it has made in its transformation programme which has seen the company report profit, after tax, in 2011 of €19.9 million, with cost savings of €4.4 million. Coillte’s strategy is to focus on the innovative and sustainable management of natural resources which has seen the company move away from nearly 100 per cent reliance on log sales for the construction industry, to the development of new business lines including wood panels, land management and renewable energy and expansion into new markets in the UK, Europe and the Middle East.

“The decision on June 26^th to sell the harvesting rights of Coillte forests for a period of 50 to 80 years, however, has raised some concerns among Committee members. Namely, that Coillte ensures that a comprehensive consultation process is undertaken to ensure that no rash decisions will be made and that the seven core issues* are thoroughly examined to ensure that the State’s forests will continue to be managed in a sustainable manner and in the interest of the people of Ireland.

“It is important that we safeguard the wood biomass energy sector, whose potential to utilise over one million cubic meters of woodchip/pulpwood per annum, would greatly contribute to Ireland meeting its obligation under the EU Renewable Directive of sourcing 40 per cent renewable energy by 2020.

“Coillte and its management are to be commended for their investment in rural recreation, including hiking and mountain bike trails.”

Agriculture Committee engages in wide-ranging discussion with Coillte representatives

2 October 2012

The Joint Oireachtas Committee on Agriculture, Food and the Marine heard Coillte representatives discuss the future direction of the forestry industry in Ireland, with particular reference to the government decision to sell the harvesting rights to Coillte forests for a period of 50 to 80 years.

David Gunning, Chief Executive and Gerry Egan, Group Director, Strategy and Corporate Affairs, addressed the Committee on the current position of what they described as Ireland’s largest natural resources company. Mr Gunning reported the profit after tax in 2011 of €19.9m was driven primarily from strong log prices in Ireland and improved prices for panel products in the UK and other export markets.

Chairman of the Committee Andrew Doyle TD says: “There was general agreement among Committee Members that Coillte encapsulated much of what a state company should be. The company returned a significant dividend to the state and retained a strong focus on the social and environmental dimension. Coillte was widely commended for its investment in rural recreation, including hiking and mountain bike trails.

“There was broad support among Committee Members for the current approach being taken by Coillte, which has performed strongly in recent years based on the twin pillars of innovation and sustainability. The company adapted well to the fall in domestic demand for construction material. Production has remained at 2006 levels, due to a dramatic increase in exports to the UK and continental Europe in particular.”

“A lengthy discussion then followed around the government decision on 26 June to, in principle, sell the harvesting rights to Coillte forests for a period of 50 to 80 years. The concerns of a number of Committee Members were clearly articulated. We heard Coillte representatives explain that they were intensely consulted in the lead in to the government decision. Coillte are currently involved in depth discussion with New ERA, with seven core issues around the sale of the rights being analysed.

“Our Committee intends to carefully examine the implications and permutations as the decision is implemented with other stakeholders such as the Departments of Public Expenditure and Reform and Agriculture, to ensure that the state’s forests will continue to be managed in a sustainable manner. We will consider the issue recognising the social and environmental dimension, ensuring state forests are accessible to the entire population and with an eye on their role in achieving EU emissions targets through renewable energy and carbon sequestration.”