Vol. 533 No. 1
26 Mr. Sheehan asked the Minister for the Marine and Natural Resources if he will extend the new increased afforestation grants and premiums announced in February 2000 to all plantations that were planted pre-October 1999. [7381/01]
I have explained in detail, in my earlier reply to Deputy Connaughton, the background to this matter. I am sure Deputy Sheehan will accept that.
I am now considering possible funding from the Exchequer, at an estimated annual cost at present of £3.4 million, for those who planted prior to 1 October 1999. In view of the State aids aspect – I emphasise this – any decision to have the cost borne by the Exchequer would also require the agreement of the European Commission.
I am sure the Minister of State will agree that since the introduction of forestry measures under CAP, 80,000 hectares have been planted by more than 10,000 farmers. These farmers are the key to the future development of forestry but they will not receive the increased level of premium. It is estimated that £4.5 million annually would cover all farmers who planted before October 1999 and whose premiums are still being paid. Such people were the pioneers of the forestry industry. They planted their land when the premium was very low and they should be safeguarded now. The Minister of State mentioned £3.4 million in his reply. It is small beer in the tiger economy at a time when the country is awash with money. I have no doubt the Minister of State will get the co-operation of the Cabinet to include such farmers.
I am not yet in the Cabinet but I have a very eminent Minister who plays his part in the Cabinet. Nothing is got easily and the reason we have a tiger economy is nothing was let slip. However, in this case, as the Deputy said, the pioneers planted land up to 1999. They should be recognised and acknowledged for doing so but they signed an agreement. One of the weaknesses of the plan in 1996 was no provision was made for an increase. In the new increases I succeeded in getting last March, I included a three yearly review. From now on, we will not have the same difficulty as we had prior to 1999. I will make as strong a case as I can, aided and abetted by the Minister, Deputy Fahey. We are in touch with the Department of Finance. I do not want to make the same speech to Deputy Connaughton again next month.
I will ask about it again.
I want a decision on this. However, lest anyone be under any illusion, no decision has yet been made by Cabinet.
Does the Minister agree that 10,000 farmers in this category are being penalised because they engaged in forestry production too soon? They did so under the CAP proposals and should automatically qualify for the increased premiums.
When this decision was taken and the farmers decided to engage in forestry they knew there might not be an increase. Those were the conditions. We have secured 30% more for new planters and obviously those farmers are upset. That is why I am making such a strong case.
There are 10,000 of them.
They signed a contract saying they were happy to plant and at that level of grant and premia.
At that time.
Yes but they were also told quite clearly there would not be an increase and that was the level at which grants and premiums would be paid.
They entered into forestry production under CAP and are therefore entitled to it.
That concludes Priority Questions. We now move to Question No. 27.
