THERE IS need for greater clarity before the Government proceeds with its plan to merge Bord na Móna and Coillte to create a new State company, Bio Energy Ireland. Shiny new ideas are no substitute for strict commercial appraisal and hard-won experience. The Government should demonstrate that careful, long-term planning and proper financial and social evaluations underpin this initiative.
The last government planned to sell forestry company Coillte to international investors. The price, if based on timber and sales, would have been a fraction of its land bank value. The common thread linking the two companies – apart from their profitability – is their enormous land holdings, amounting in all to more than 1.2 million acres. That represents one-twelfth of the State’s entire landmass. At the moment, it belongs to every citizen and there is full or limited access to most of that acreage. Concerns exist that down-the-road privatisation would end that access.
The British government has shelved plans to sell state forests because of public opposition. Neither Fine Gael nor Labour have raised such a prospect, although the sale of assets that can “operate in a competitive market” has been mentioned, along with a need to protect consumer interests. Fine Gael’s manifesto envisaged a single renewable energy leader to exploit biomass, plant new woodlands and develop combined heat and power technology. The joint programme for government promotes the proposed company as “a global leader in the commercialisation of next generation bio-energy technologies”. But is it realistic?
It is not clear what interests have been promoting this concept. As midland bogs have been cut out, Bord na Móna has diversified into other areas. Due to financial constraints, Coillte has not planted a single additional acre since 2002 and government afforestation targets have been missed since 1995. Before these companies are merged, options involving restructure, reform and alternative approaches should be considered. Both companies have major responsibilities in terms of watershed and landscape management, carbon sequestration and biodiversity protection. Carbon credits are becoming increasingly valuable. Should cutaway Bord na Móna bogs be used to grow biomass or to protect and conserve groundwater? Apart from the economic value of Coillte’s trees, there are social, cultural and recreational values to be considered. All of these matters merit discussion and a clear and long-term planning policy.