The Minister for Agriculture, Food and the Marine Charlie McConalogue has confirmed that a partnership between Coillte and a UK investment fund did not require his approval.
It comes as farmers have raised concerns about the new €200 million Irish forestry fund recently launched by Gresham House which is backed by the semi-state agency.
The new fund is supported by the Ireland Strategic Investment Fund (ISIF) which is managed and controlled by the National Treasury Management Agency (NTMA).
Gresham House has confirmed that the ISIF has invested €25 million in the Irish Strategic Forestry Fund to date.
The Irish Farmers’ Association (IFA) has said that the “focus” of the state’s planting programme and exchequer spending should be on “farmer planting”.
Forestry
Minister Charlie McConalogue was questioned about the new partnership as he attended the IFA Farming and Climate Summit at Thomond Park in Limerick today (Tuesday, January 10).
“Coillte in the past would have a significant role in developing new forests in the country and indeed in the past would have drawn down premiums for that.
“State aid rules coming from the EU a number of years ago would have meant that they currently can’t draw down premiums, which has meant that over the last number of years that Coillte haven’t been doing any afforestation, simply managing the forests that they have.
“I know in terms of their new strategic plan that they have been looking at options as to how they could start doing some afforestation again.
“They have been working with the Irish Strategic Investment Fund as to how they might be able to do that,” he said.
The minister confirmed to Agriland that he and Minister of State with responsibility for forestry, Pippa Hackett will meet with Coillte to discuss the matter in the coming days.
The Joint Committee on Agriculture, Food and the Marine is also expected to question the agency about the deal.
“I think overall we all accept that we want to see farmers do more afforestation. That’s why we’ve given farmers preference in relation to the premiums by giving them 33% extra for 20 years, instead of the 15 years that’s available for those who are not farmers.
“But there is a role for Coillte to play in relation to new afforestation, they are exploring how they are going to do that and I’ll be meeting them shortly to discuss that further,” the minister said.
When asked if he supported foreign investment funds entering the Irish forestry sector, McConalogue said:
“What we support and what we are preferring is equipping farmers to do afforestation. That’s why we are giving farmers preference in relation to 20-year premiums versus 15-year premiums.
“Coillte played a very positive role in the past in relation to doing new forestry and they have been exploring options given the fact that they can no longer draw premiums as they would have done in the past.
“It’s not something that was required for me to give approval for or that I gave approval to but I will be meeting them now to discuss it.
“It doesn’t require ministerial approval because it’s not a direct investment from me as minister.
“It’s not something I have had a role in up until now but I’ll be meeting with them to discuss it,” McConalogue said.