Cabinet to review sale of forestry rights

The sale of harvesting rights of State forestry company Coillte will be reviewed by the Cabinet in two weeks when it receives a report from ministers overseeing the option of selling the assets.

Agriculture Minister Simon Coveney yesterday said the Government was grappling with a decision whether or not to sell the timber harvesting rights owned by Coillte.

Mr Coveney said it was a “very complex process” of considering whether the rights should be sold and how the State might get value from this asset.

He said a report would be brought to Cabinet in two weeks regarding the potential sale, which will include a set of recommendations “on which the Government will make a decision”.

The review of the potential sale is expected to include details of at least three valuations of the timber rights, ongoing issues around Coillte’s pension fund and the forestry company’s debt. It could also consider the future viability of a company when an asset as significant as harvesting rights is removed.

The report is being compiled by Mr Coveney’s department as well as the Department of Public Expenditure.

Several Opposition TDs have voiced concern about any of Coillte’s assets being sold.

Sinn Féin’s agriculture spokesman Martin Ferris questioned the minister on the issue in the Dáil yesterday and said there was a strong opinion that the sale of Coillte harvesting rights would be “detrimental and the wrong decision”.

“It would be folly for the Government to sell off public ownership of Irish timber rights to some multinational or foreign speculator when those harvesting rights could be utilised to develop the industry further,” he said.

Minister for Natural Resources Pat Rabbitte said last week that the privatisation of Coillte looked “more unlikely every day”.

However, Mr Coveney said yesterday that no decision had been taken. He indicated that one was needed soon.

“We are virtually ready to make a decision, which is necessary. Regardless of what decision is made, continuing uncertainty about forestry rights and the future of Coillte is not helpful to the company or the timber industry more broadly.”

Mr Coveney said that after Cabinet had made a decision that the Dáil would debate the issue.