I propose to take Questions Nos. 537 to 542, inclusive, together.
The Government initially decided, in the context of the State asset disposal programme, that consideration would be given to the sale of certain assets of Coillte, excluding land. The Government has further decided, in relation to Coillte, that a concession for the harvesting rights to Coillte’s forests will be put forward for possible sale. Coillte Board and management have been actively engaged in recent months with NewERA, the Department of Public Expenditure and Reform and my Department to examine the financial and other implications of developing the potential of Coillte’s forest assets.
The process is at a preliminary stage and, aside from the valuation of the forestry assets, a number of issues have been identified in relation to the possible harvesting rights concession. These include, inter alia, the possible impact to the timber industry, environmental and social impacts, consequential implications for the company and its human resources, the future extent and nature of Coillte Group’s liabilities, and the replanting obligation. These issues each require detailed consideration. I wish to assure the Deputy that these issues and others form part of the ongoing analysis. As some of the issues identified, and the possible ways in which they may be addressed, have the potential of impacting on investor interest, my preference is to await the outcome of that analysis.
As regards the use of the proceeds from any sale of timber harvesting rights, I wish to remind the Deputy that the use to which the proceeds of such asset sales may be put is a matter that is provided for under the EU/IMF Programme. As agreed with the troika, half of the proceeds will be available to the Government to fund employment enhancing projects of a commercial nature, with the other half, while destined eventually to pay-down debt, also being available in the first instance to constitution a fund to underpin additional lending into Ireland.