The controversial Gresham House, Irish Strategic Forestry Fund, backed by semi-state company, Coillte, was “operational” from December 18, last year, according to the Minister for Agriculture, Food and the Marine.
That was approximately five days after senior Coillte executives, including its chief executive Imelda Hurley and managing director Mark Carlin, had briefed members of the Oireachtas Joint Committee on Agriculture, Food and the Marine on its operations.
During the briefing Hurley had told members of the committee that Coillte had “been engaging with a number of different fund managers” and was “in the late stages of being towards the end of that process”.
She had also told the committee that she could not, at that time, identify who Coillte was in discussions with.
Coillte has said publicly that it did not conclude its negotiations with Gresham House until after its meeting with the Oireachtas Joint Committee on Agriculture, Food and the Marine.
London-headquartered Gresham House issued a news release on January 6, 2023 confirming details of its new Irish Strategic Forestry Fund.
It stated that the fund would provide up to €200 million capital “needed to create new forests, making a significant contribution to Ireland’s Climate Action Plan”.
Gresham House also outlined:
“The new fund has put in place an operational management agreement with Coillte, Ireland’s semi-state manager of forestry and timber investments.
“The development of the fund will therefore benefit from Coillte’s long-term track record operating in the Irish forestry sector.”
Separately, land registry records show that the Irish Strategic Forestry Fund registered the purchase of three land parcels in Co. Tipperary on December 23.
In a written response to a question raised by the Independent TD for Laois-Offaly, Carol Nolan, Minister McConalogue said “my understanding is that the fund became operational on December 18, 2022”.
“I was informed that week of some the details of the proposals through correspondence from Coillte and that a public announcement would be made soon confirming the establishment of the fund,” the minister told Nolan.
MInister McConalogue also outlined that Coillte did not need “consent or approval” from shareholders to provide services to the fund.
“It is an operational matter for Coillte and they were under no obligation to seek consent,” the minister stated in his response to Deputy Nolan.
The minister also highlighted in his written response that Coillte is a private limited company established under the Forestry Act 1988 “and is operationally independent from the minister and Department of Agriculture, Food and the Marine”.
“I am, therefore, not in position to comment on any operational issues relating to the establishment of the new investment fund,” he stated.
Minister McConalogue detailed in his correspondence to Deputy Nolan that it is government policy that Coillte, “as the state forestry company, should play its part by re-engaging with afforestation and they have responded to this in their new Forestry Vision and Strategy”.
“They have indicated that they will support the delivery of Ireland’s afforestation targets through a suite of initiatives which will contribute 100,000ha by 2050.
“As the company is precluded following a decision of the Court of Justice of the European Union from directly receiving premiums, they have indicated that some of the implementation of their strategy will be collaboration with third parties in projects,” the minister stated.