Dublin has aborted plans to sell off its forests following strong opposition from a disparate coalition of sports enthusiasts, trade unionists and environmental campaigners. Source: The Financial Times
The plan to sell harvesting rights to the 445,000 acres of forest owned by Coillte, the state forestry company, for up to 80 years was part of the government’s €3bn sale program of state assets.
The political U-turn follows a separate decision last year by Dublin not to proceed with plans to sell a 15% stake in the state electricity company, ESB.
“The government decided that now is not the appropriate time to proceed with the sale of harvesting rights in Coillte,” said Simon Coveney, minister for agriculture.
Dublin said the decision did not affect the remainder of the disposal program and has agreed the asset sales with the troika of international lenders, which insists half of the money raised will be used to pay down debts.
But progress is slow and opposition to state sell-offs is growing as Ireland prepares to exit its bailout program later this year.
The Save our Forests campaign protested aggressively against the sell-off to the private sector, which it said would result in restricting access to forests.
Trade unions representing Coillte argued the sell-off would end up costing more than the estimated €400m-500m likely to be raised in a sale, due to the impact on the Irish timber mill industry and supply industries.
Karl Boyle, chief executive of Mountaineering Ireland, said the decision was a positive one by the government, which reflected public interest.
“We need to ensure that recreation has to be a core focus of the new policy,” Boyle said.
Dublin also faces a Don’t Loot The Lottery campaign to block the sale of a lottery licence worth up to €400m. However, the lottery licence sales process has already begun.
A division of the state gas company Bord Gais is also being sold to the private sector to raise money for the government.
Public opposition in England and Scotland blocked the sale of forestry harvesting rights in England and Scotland. However, harvesting rights have been sold to the private sector in New Zealand and Australia.
The Dublin government said it now planned to restructure the state forestry company.
