Coillte proposals: state should retain ownership of forests

THE GOVERNMENT should move to dispose of State forestry company Coillte as a going concern, the Review Group on State Assets has recommended.

However, it urges that the sale should only involve long-term leases to forestry land. It further states that ownership of forest should remain in State hands.

The report suggests that part of the company’s land bank should be placed on the market.

It says another option would be to retain Coillte as a forestry company but to dispose of its non-core activities, particularly the two board mills.

“There is no obvious rationale for State involvement in the business of operating panel board manufacturing facilities,” the report notes.

It adds that Coillte’s telecommunications business – which involves the lease of sites for telecommunications masts and more recently the construction by Coillte of its own mast and the lease of antenna space to telecommunications companies – could also be sold.

Concern over Coillte’s market position in the sale of logs could be addressed by provisions in sale agreements, the report states.

Public access to forest as an amenity could be dealt with through licensing conditions.

An end to the existing condition applying to all those in receipt of grants for forestry to replant areas which have been cut down is also recommended.

“We consider this restriction to be unjustified and counterproductive”.