asked the Minister for Energy if he will improve the private grant-aid scheme for planting since the EC are now funding 70 per cent of the assistance; and if he will reduce the inordinate delays being experienced by qualified planters in receiving payment for work completed.
Ceisteanna — Questions. Oral Answers. - Grant-Aid Scheme for Planting.
20.
The following improvements to the forestry element of the western package have already been agreed:
—an extension of the forestry grants scheme to all disadvantaged areas in the country;
—an extension of the scope of the forestry scheme to cover all agricultural land in the disadvantaged areas. Heretofore, only marginal land was considered for forestry grants;
—the availability of EC funds for publicity campaigns aimed at encouraging farmers to invest in forestry.
This is an outline decision only and the manner in which effect will be given to it is still the subject of discussion in Brussels. It is my intention to seek further improvements during these discussions.
I am satisfied that the time taken by my Department to process grant applications is reasonable having regard to the administrative and technical procedures, including an inspection of the land, involved in approving grant payment.
Will the Minister of State not agree that an opportunity now exists to further improve the rate of planting in severely disadvantaged areas? As the EC is now funding 70 per cent of the assistance, this should be encouraged by way of giving an increased grant. Also is the Minister of State aware of the considerable delays which take place in his Department before the first moiety of a grant is paid?
I agree that an opportunity now exists to encourage private forestry developments throughout the country and, as I have said, we announced a number of initiatives in this regard which are bearing fruit. The increase in applications over the past 12 months has been quite phenomenal and that is the reason for the delay in the payment of the grants. The acceleration of the scheme has been such that the total amount of money paid in 1987 was the equivalent to that paid out under that scheme for the previous six years. This increase has led to some delays and if the Deputy has one case in mind I will be glad to see that it is investigated and dealt with as expeditiously as possible.
I am glad the Minister of State acknowledges that there has been an increase in private planting especially in 1987 but will he not agree that the scheme which had been introduced by the previous Minister played its part in securing this increase?
We are not here to claim credit for such developments.
In listening to the Minister of State one would hardly get that impression.
A final supplementary from Deputy O'Malley.
Will the Minister of State tell us whether the Government have given any consideration to extending the BES scheme to cover private afforestation?
What scheme?
The business expansion scheme which carries with it certain tax advantages.
As far as private afforestation is concerned, quite a number of tax incentives already exist and it is not envisaged at present to extend these in the light of the present constraints on the Exchequer. If private afforestation continues to accelerate at its present rate I would see no necessity for providing any further incentives and for that reason the Government will not be considering the extension of the business expansion scheme to cover forestry, at least not for the time being.