Vol. 536 No. 3
129 Mr. Kenny asked the Minister for the Marine and Natural Resources the position regarding the payment of premiums for forestry to investors in the afforestation programme; if increased payment has been sanctioned by the European Union; his intentions in this regard; his views on whether potential investors should participate in the forestry programme based on current premium rates; and if he will make a statement on the matter. [14193/01]
Following discussions with the European Commission, I announced in March last year significant increases, averaging 30%, in the rates of annual forest premium for those planting from 1 October 1999. The current rate of premium is £308 per hectare for the standard 20% diverse conifer category in the case of farmers. Rates for broadleaf are as high as £373 per hectare. Premiums are payable to farmers over a 20 year period and the rates quoted are subject to review within the next two years. These levels of returns make forestry an attractive land use option.
