Body criticises Coillte’s prices ‘uneconomic’ rates

THE “ignorance” of the State forestry service Coillte has left contractors on the brink of collapse, a report has claimed. Since the forestry industry switched over from chainsaws to harvesting machines costing €250,000 or more, contractors have invested heavily with the aid of EU grants.

But according to the preliminary findings of a report for the Irish Forestry Contractors Association (IFCA), the industry is now in crisis due to the “uneconomic rates” paid by Coillte for harvesting and hauling timber.

The average rate is €8 per tonne. But the report recommends this be raised to at least €13 per tonne. The State-owned company dominates the forestry industry and spends around €20 million on timber harvesting contracts and €10m on haulage.