The total area of afforestation grant-aided by my Department during the years 1998 to 2000 was as follows: 12,926 hectares in 1998, 12,667 hectares in 1999 and 15,895 hectares in 2000. It is estimated that approximately 15,000 hectares will be grant-aided in 2001. The planting targets set out in the 1996 strategic plan for forestry, Growing for the Future, envisaged annual planting of up to 25,000 hectares to 2000 and 20,000 hectares thereafter. While these ambitious targets have not been met in recent years, nonetheless the planting levels achieved have been significant.
There has been a number of significant developments recently which will help to bring plant ing in line with targets. First, the role of forestry as one of the motors of rural development has been recognised in the National Development Plan 2000-2006, which is co-funded by the Exchequer and the European Commission. Significant funding of about £540 million – 686 million – has been provided for afforestation under the plan, with a further £100 million available for structural measures. A further £80 million is being invested by the private sector.
Second, as the Deputy will recall, average increases of about 30% in the afforestation grant and premium levels were introduced for new planting last year. 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 are tax free.
The positive aspects of these substantial increases was partly offset, however, by the refusal of the European Commission to agree to similar increases for those who planted before 2000. While the Commission's attitude was disappointing, the importance of the matter was recognised by the Irish Government. At the end of July, I secured Government agreement to fund the increases from the Exchequer and I am now awaiting a decision from the Commission under the State aids procedure. A positive response from the Commission, which I expect to receive shortly, will give a very positive boost to the afforestation programme. I have also secured agreement in principle on the inclusion, for the first time ever, of a mid-term review of premium rates under the rural development plan. That review will be in hand next year.
There are two other aspects to which I need to draw attention. The national climate change strategy recognises the beneficial aspects of forestry, particularly in countering greenhouse gases and in its role as a carbon sequestrator and the rural development plan provides for the integration of forestry and REPS. This will offer significant opportunities for forestry in the future. Given the combination of these factors, I am confident that planting levels will increase to target levels on an incremental basis over the coming years.