Forestry Network Newsletter

// THE 8 MILLION COILLTE ILLEGAL GRANTS

From 1993 - 1998 Coillte Teo claimed ‘premia' grants for planting trees when these grants were intended only for farmers. They then used the proceeds to finance the purchase of 60,000 hectares, borrowing £50.9 which was to be serviced from the premiums receivable into the future.

After a long campaign with denials from both the Irish Agriculture Minister and European Commission, in 2001 the Raport Final of the European Commissions Organ de Concilliation who clear all agricultural grant payments ruled that Coillte was a public authority and as such did not qualify for the grants. Ireland and Coillte both challenged the decision to the European Court of Justice and both lost.

FIE has had Parliamentary Questions tabled for more than 7 years about the return of these funds by Coillte Teo to the exchequer with no result. Mary Coughlan's recent reply continues the Government's position that it is ‘considering' the issue. If Coillte is not required to return these funds, the funds become state aid and subject to proceedings under the competition law. Read more.

THE 8 MILLION COILLTE ILLEGAL GRANTS
Read to story in

FNN 17, March 2001
http://friendsoftheirishenvironment.net/fnn/index.php?action=view&id=22

Read the last few years' Parliamentary replies:

July 2008

572. Deputy Joanna Tuffy asked the Minister for Agriculture, Fisheries and Food the position regarding the matter of recouping from Coillte Teoranta, circa €8 million of forestry premium grants awarded to it but subsequently excluded from community financing under the guarantee section of the European Agricultural Guidance and Guarantee Fund and subsequently confirmed by the European Court of Justice; and if he will make a statement on the matter. [28766/08]
Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith): The question of recoupment of forestry premium from Coillte is being considered within my Department in the context of Coillte's proposed strategy for the period 2008-2012.

May 2007

Strategic Review of Coillte's Activities requested by Minister
Recounting of €8 disallowed premia to be addressed

527. Mr. Sargent asked the Minister for Agriculture and Food when she last had contact with the Department of Finance regarding the matter of recouping from Coillte Teoranta forestry premium grants awarded to it but subsequently excluded from community financing under the guarantee section of the European agricultural guidance and guarantee fund and confirmed by a European Court decision. [12795/07]

Minister for Agriculture and Food (Mary Coughlan): My Department is in contact with the Department of Finance on the matter of the disallowance of forestry premiums to Coillte under Regulation 2080/92 with a view to determining the appropriate course of action. The issue is related to developing a longer-term strategy in relation to Coillte and I have asked Coillte to let me have a strategic review of their activities following recent developments in the sector such as the acquisition by Coillte of the Weyerhaeuser plant in Clonmel.

October 2006

1178. Mr. Sargent asked the Minister for Agriculture and Food the date on which Coillte Teoranta reimbursed the Government for the grant aid intended for farmers claimed by Coillte Teoranta, which was clawed back by the European Commission. [29078/06]

Minister for Agriculture and Food (Mary Coughlan): The question of whether Coillte should reimburse monies paid to them under the EU afforestation scheme stems from a decision by the European Court of Justice on the status of the company. The matter is under consideration within my Department and a decision will be made shortly.

July, 2005

444. Mr. Sargent asked the Minister for Agriculture and Food if, in view
of recouping from Coillte Teoranta circa €8 million of forestry premium
grants awarded to it but subsequently excluded from Community financing
under the guarantee section of the European agricultural guidance and
guarantee fund, and confirmed by a European Court, she has made a decision
regarding seeking the return of these funds from Coillte Teoranta.
[31508/05]

Minister for Agriculture and Food (Mary Coughlan): A final decision in
this matter has not been made as yet but the issue is being examined in
consultation with the Department of Finance.