Matt Shanahan on Coelche deal and the future of Irish forestry
Matt Shanahan spoke in a debate on Ireland's forestry future, criticising the Government's support for the state-backed company Coelche and the proposed Gresham House arrangement. He argued that licensing delays at the Forestry Office have undermined private afforestation, warned that foreign investment may displace Irish growers, and opposed a state-monopoly approach.
State-backed company and investment deal
He criticised Coelche for seeking UK partners and foreign capital rather than relying on domestic expertise. He noted Coelche achieved 110% of its felling target in 2022 while private felling licences met 80% and afforestation licences just 68%.
Gresham House figures and land acquisition
He outlined the Gresham House deal originally aimed to develop 12,000 hectares over the programme's life and warned that the funds would flow to international investors rather than Irish families. He said Coelche now plans to acquire over 9,500 hectares of existing forestry and pursue 3,500 hectares of new afforestation - meaning much of the fund would buy existing woods rather than increase Ireland's forest area.
Licensing bottlenecks and decline in private afforestation
Shanahan traced a decline in private domestic forestry output - over 14,000 hectares in 2000, over 8,000 in 2010 and about 4,000 in 2020 - and blamed persistent delays at the Forestry Office for diverting farmers into other land uses. He insisted a functioning licensing department is essential to allow growers to enter the forestry programme.
Biodiversity and planting practice concerns
He asked whether state-supported afforestation will be required to meet the same biodiversity standards as private schemes - for example 20% broadleaf and 15% open area - and criticised examples of 100% Sitka spruce planting. He also raised the unresolved issue of die-back as a barrier for farmers joining new forestry programmes.
Opposition to foreign ownership and call to protect rural communities
Shanahan said he opposed creating state monopolies and using Irish taxpayer money to incentivise foreign investors who could displace rural and regional farm ownership. He urged a return to policies that support Irish land remaining in Irish ownership and that prioritise the perpetuation of rural economies.
We publish thousands of recordings to make Irish politics transparent and resistant to manipulation. Spotted an error? Report it — together we are building a reliable archive of Irish politics.
Minister, I am happy to take part in this important debate about the forestry future of Ireland and to examine the rationale of the Government's present policy. Ecology and biology have long been used in the lexicon of forestry language and we can now add a new word which is codology. That is the best description of the recent activity announced by Coelche, a state-supported company who despite their annual profits and could not muster the financial expertise other than go to Bond Street and Treadneedle Street to find UK partners to figure out how to add capacity to their operations. The domestic forestry sector has been in crisis now for a number of years, Minister, down to just one reason which is the efficiency of the Forestry Office to process applications. Where farmers have had land suitable for forestry, the delays have meant that they have diverted into other streams. This point is best highlighted by looking at the historical activity of the domestic forestry sector. In 2000 private domestic growing delivered over 14,000 hectares. In 2010 it delivered over 8,000 hectares and in the middle of Covid in 2020 it still delivered 4,000 hectares, a half of our annual 8,000 hectare target. But the message coming from Government is that the domestic activity cannot deliver the afforestation targets we need to meet the climate goals. Helping this narrative is the deliberate prioritisation by the Forestry Office in terms of putting state-supported activity ahead of the private growers in Ireland. In 2022, Coelche achieved 110% of its felling target, which I am sure they were delighted about. On the other hand, private felling achieved only 80% of their felling licences and just 68% of their afforestation licences. The continuing failure to provide an efficient licensing regime to the sector is at the heart of the rationale for Coelche to go looking for foreign monies and for partners capable of achieving subsidy and premium approvals. The Gresham House deal initially was to develop 12,000 hectares of Irish forestry over the life of the programme. This would deliver hundreds of millions in state subsidies to that concern. But these monies will not transfer to Irish families, rather they will go to international investors. In addition, given the pushback in recent days from deputies in this House, Coelche are now saying they will focus on acquiring over 9,500 hectares of existing forestry, along with a target of 3,500 hectares of afforestation. In other words, two-thirds of the fund will now go to acquire lands already forested, delivering nothing in increased climate change targets benefits to Ireland. What are their responsibilities to deliver biodiversity in their afforestation activities? Will they be forced, like the private sector, to provide 20% broadleaf on schemes and 15% open area? Or will they, like they do in Leitrim, go up and plant 100% Sitka spruce and then come down into Wicklow and plant 20% broadleaf as part of those schemes? Also, the failure to address the die-back issue is at the heart of the difficulties of farmers getting into the new forestry programme. And you have to try and sort out a new present scheme. I know it is stopped now because we are waiting for approval. But surely, Minister, the Department can find a way. Minister, I am well aware of our need to protect our biodiversity and to achieve our climate targets in the forestry sector. But I, like others in this House, am fundamentally opposed to the creation of state monopolies, which, if where the present policy is going is, will propel Quilter. I am also fundamentally opposed to the idea of using Irish taxpayers' monies to incentivise foreign investment interests to enter the Irish forestry market and displace rural and regional farm ownership and farm families. Forestry growers want and need a functioning licensing department that deals with their applications quickly and allows them to enter into the forestry programme. Government's focus must return to incentivising the perpetuation of our rural and regional economies and to stop aping other systems. Using foreign capital as an excuse to reduce Irish foreign capital and to further greenwash and pressure our rural communities to migrate into urban settlements. Our Irish lands must be kept in Irish ownership, Minister, as that is the only guarantee that they will be available to future generations. Ahhh! Thank you. We are planning over to the fruit of Stingningen! Roark Fand score! Again, we have a offering that speaks for itsоссوس The 13th左右!
Thank you for downloading 🙏
If you publish this material on social media, we would be very grateful if you tagged VideoParliament. It helps us reach more people and keep building a transparent archive of Irish politics.
