Vol. 509 No. 5
26 Mr. Sheehan asked the Minister for the Marine and Natural Resources the number of hectares planted under forestry in 1998; if it is in line with the target set out in the Government approved strategic plan; and the percentage of the total planted in 1998 undertaken by individual farmers. [20370/99]
The total area of new afforestation grant aided by my Department in 1998 was 12,928 hectares, of which 8,923 hectares were planted by farmers, which is about 70 per cent of the total. The planting targets set in the strategic plan for the forestry sector are 25,000 hectares annually to the year 2000 and 20,000 hectares annually thereafter to the year 2035.
Proposals for substantial increases in the level of afforestation grants and loss of income premiums have been submitted to the European Commission. At a meeting with Commissioner Fischler last week, the Minister stressed the importance of an early and positive response to the Irish proposals. Follow-up discussions at official level will be held shortly. Increases in the level of financial support are essential if planting levels are to be brought in line with targets.
Does the Minister of State agree that farmers are dismayed by the delay caused by the EU not giving the green light to the Department to go ahead with the new forestry premiums? This has a disastrous result. The REP scheme is now more attractive than the forestry premiums and it has a detrimental effect on the acreage being planted.
It is a sad reflection on the Government's target of 25,000 hectares that only 12,928 hectares were planted in 1998. The industry is in dire straits. It will not take off and the targets will not be met until a substantial increase in forestry grants is announced. We will lose another year's planting if this is not done.
The air of dismay among farmers at the recent National Ploughing Championships in Cork was alarming. The alarm bells are ringing. There will be no increase in the hectares planted until the Department gives a definite lead on what the increases will be. A farmer cannot be expected to commit to a 30 year afforestation scheme until he knows what he will get for it, because he will have to borrow money in those circumstances.
The Deputy cannot make a statement.
When will this announcement be made by Brussels?
I attended the ploughing championships, although I did not see the Deputy there, and I met many people there. I visited all the stands relating to forestry, which I was happy to see were all in one location this year because of my initiative in that regard. It is their view that there is tremendous interest in forestry this year. That is probably because there is a fairly clear indication that the grant for forestry will increase substantially. I hope to be in a position to announce that in the very near future. I accept what the Deputy said about how we are not meeting the target, but I intend to come very close to that target in the next year. I know I am under pressure to tell the people the grants are available. That will happen in the next fortnight.
Regarding the REP scheme, some schemes compete with forestry. Forestry is a tremendous alternative to conventional farming, especially on poorer soils. The income from forestry lasts for 20 years and is tax free. Farmers should consider it carefully as an alternative, especially given that the new grants will be greatly in excess of those provided under the REPS programme. An investment in forestry is a tremendous one for the country, albeit after 40 years, and I encourage farmers to become involved.
Does the Minister of State consider the 20 year premium to be too short and does he agree it should be extended to 30 years because some forests will not be ready for felling until after that time? Will the Minister of State extend the premium to include forestry growth up to then? What will farmers do for an income after the 20 year term has expired?
The grant aid will be for 20 years. Following – or maybe even before – that, a thinning operation will be carried out in forests where small logs will be removed. A number of processing factories take such logs. There will be an income from forests from 20 years on, and a substantial one at clear felling stage.
