Dáil Éireann debate -
Wednesday, 1 Mar 2000

Vol. 515 No. 4

Adjournment Debate. - Afforestation Grants.

Mr. Sheehan

I hope the Minister will stick to the facts unlike the Minister for Justice, Equality and Law Reform in the previous debate. I want to ascertain some details on the forestry package which was submitted to Brussels in August 1999 seeking increased grants for the forestry industry. I understood the Minister would make an announcement in this regard at the National Ploughing Championships held in the autumn but apparently he did not have any information at that time. I was then informed that details of the package would be announced in October but, again, I did not hear anything. I was subsequently informed that details would be announced in the new year but we are now in the third month of this year and nothing has happened although this is the planting season. The public is not aware of what is happening and I hope the Minister has some information for me tonight about this important matter.

The Department of the Marine and Natural Resources has failed dismally to achieve the target of 25,000 hectares per annum outlined in the last plan covering the period 1996-2000. Some 21,000 hectares were planted in 1996 under the previous Government. This Government's performance is anything but encouraging. In 1997, only 11,438 hectares were planted, 12,928 hectares were planted in 1998 and in 1999 only 12,667 hectares were planted. Those figures are a far cry from the target of 25,000 hectares per annum.

Forestry is a vital industry in Ireland and has an important environmental role to play in the achievement of the country's CO2 targets under the Kyoto Protocol. It is envisaged that the timber industry will be the third largest sector in Ireland by the year 2015. If that is to be realised, a comprehensive tree planting policy is required immediately. Pious words will not meet targets. I do not need to remind the Minister that we have the best climatic conditions in Europe for growing trees. Ireland enjoys the fastest growing rate of timber production in Europe.

A decade ago, forestry may not have seemed to be one of the most obvious forms of long-term investment but for those who saw the wood for the trees, afforestation proved to be an attractive option. In 1996, the then Government published a strategic forestry plan which set out to double the forest area in Ireland to 17% by the year 2015. Four years after that plan, just over 9% of the total area of the country is covered by forest whereas the EU average is 31%. Actions speak louder than words. It is no good producing glossy pamphlets which encourage people to engage in forestry production. The Minister must make it attractive for Irish farmers to participate in the forestry industry. I am very disappointed with the Department's inaction. The Minister must act immediately before it is too late.

Minister of State at the Department of the Marine and Natural Resources (Mr. Byrne)

I am delighted to reply to the Deputy as there is some good news in the pipeline.

Mr. Sheehan

Not before time.

Mr. Byrne

As the Deputy will be aware, I have been concerned for some time about the shortfall in forestry planting as compared with the targets set. Indeed, the Deputy raised this issue during Question Time some weeks ago. Early last year I initiated a review of the factors which lay behind this shortfall. It was evident from the review that, inter alia, significant changes in afforestation grants and premia would be required to create sufficient incentives to stimulate a substantial increase in the rate of planting.

On foot of the review, I decided to bring forward and accelerate the making of a submission to the Commission for changes in premia and grant rates under the existing legal framework of the CAP afforestation programme rather than await the submission of proposals in early 2000 in the context of the new rural development programme. The Commission has until the end of June this year to decide on the rural development plan which, in addition to forestry, covers REPS, farm retirement and headage.

Our forestry submission was made in August 1999. Following some initial contacts with the Commission, the advice at that time was that it would be possible to negotiate a favourable package and to conclude negotiation reasonably quickly. I should say in this regard that there has been an intensive ongoing engagement with the Commission at all levels including with the Commissioner and his most senior officials. In fact, this issue has been given top priority in the Forest Service for the past eight months. We have maintained contacts by all means – letters, phone calls and meetings – at all levels in DG VI of the Commission with officials, the Director General and the Commissioner. These contacts have been made at official and ministerial level.

There has, of course, been a significant level of reorganisation within DG VI, the agriculture side of the Commission, reflecting the importance now attached to rural development policy. Changes in personnel unfortunately contributed to the delay in dealing with our proposals as did the changeover from the CAP programme which ended on 31 December 1999 and the new rural development programme which applies from 1 January 2000.

The current state of play is that our proposals on afforestation grants were accepted in principle by the Commission last month. In spite of our best efforts, a satisfactory package did not emerge at that time in respect of premium increases. We have continued to push this issue and I led a delegation to Brussels on Monday for top level discussions.

Arising from those discussions, negotiations are now at a very advanced stage. I am confident that I can secure a satisfactory outcome shortly, which will present increased opportunities for those interested in afforestation during the planting season. I also reaffirm the commitment which I have already given that the increased rates for both afforestation grants and premia will apply to planting undertaken in the current season. I hope to make an early announcement.

Obviously, my first priority has been to secure optimum increases for those planting in the current season. I am also aware of the need to ensure satisfactory premium increases for those who have planted prior to now. The Commission is aware of my concerns in that regard. Further approaches to the Commission will be made shortly.

I am sure the Deputy would agree I am doing the right thing by sticking it out, to get the best possible deal for those who planted in the current season and will plant in the future.