FEARS have arisen that forestry thinnings will be redirected from Coillte timber processing plants to biomass-powered electricity generating stations because of incentives in that sector.

THE recent damage to forests from land fires could reduce the raw material available for timber processors in local areas, according to Minister of State Seán Connick.

COILLTE, the state forestry board, is expecting to make a loss for 2009, as a whole, after seeing profits sink by more than €30 million last year.

THE forestry and wood products sector contribute more than €1.65 billion annually to the economy.

COILLTE, the State forestry group, yesterday reported profits of €35.07m for last year, up 37%.