Vol. 557 No. 4
68 Mr. Coveney asked the Minister for Communications, Marine and Natural Resources the number of hectares of forestry he expects will be planted in 2003 under the natural planting programme; and the basis of his decision to dramatically cut grants for planting which will undermine the future stability of the forestry industry. [22459/02]
The Government remains committed to the long-term development of the forestry sector. This commitment has again been reiterated in the programme for Government.
Over the last six years, 1997-2002, expenditure on forestry amounted to over €540 million or an average annual spend of €90 million. This figure is not so far from the 2003 allocation of €82.58 million. During that period some 83,000 hectares have been planted under the afforestation programme. This represents an average planting rate of almost 14,000 hectares per annum.
Under the national development plan expenditure of over €900 million has been designated for forestry. This again represents a significant commitment on behalf of the Government and the European Union to the medium and long-term development of the forestry sector in Ireland.
The allocation for forestry in 2003 of €82.58 million has to be seen not only in the context of the general budgetary situation but also of expenditure in this area over recent years and the funding commitment in the national development plan. Under this Government expenditure on forestry has geared up significantly with a projected out-turn this year of almost €107 million.
I am confident that we will, on the basis of the allocation provided, achieve a viable planting programme in 2003. To that end I am meeting tomorrow morning with representatives of the forestry sector to see how best we can together achieve this objective. I am confident we can achieve a viable planting programme.
There is absolutely no question of any cuts in grant and premium levels, which remain unchanged. In fact, the Deputy will be aware that the Government secured increases of over 30% in 2000 in grant and premium levels. In addition we also secured a commitment to review the grant and premium levels in 2003 with the possibility of increases from 2004.
The Government remains strongly committed to the continued development of the forestry sector. Our performance and delivery on this over the past five years is a matter of record. With the support of the sector I am confident we will achieve a viable planting programme in 2003.
How many acres or hectares will be planted in 2003? This cutback will devastate the forestry industry. It is estimated that the forestry programme for next year will be halved in hectarage. This means that half the stock in tree nurseries throughout the country will be unusable. As many as 20 million young trees which have been prepared over the past three years – 20,000 hectares at 1,000 trees to the acre – will not be planted. What does the Minister of State propose for those businesses which have trees waiting to be planted but which cannot be planted because of cutbacks?
Is the Minister of State aware that the National Council for Forest Research and Development has commissioned Dr. Richard Moloney of UCC to assess the impact this cutback will have on the economy? Dr. Moloney reckons there will be a loss of about €44 million to the rural economy. Does the Minister of State accept that the cutback of €22 million will mean a saving of only €11 million to the Department because the other half represents EU matching funding? Even though the Exchequer may save €11 million we will lose €22 million in direct payments to the rural economy. In fact it is estimated by Dr. Moloney that there will be a net loss to the Exchequer.
This is Question Time.
I understand that. I am asking the Minister of State if he will accept what I say.
You have spent three minutes asking a question and we are running out of time. The Minister of State will not have time to reply if you continue. You are not asking a question, Deputy, you are making a statement. Besides, it is not appropriate to quote during Question Time.
Who have I quoted, a Cheann Comhairle?
You have quoted from the report of a professor, which you have in front of you.
Can I get on with my question now, a Cheann Comhairle? This is a serious matter. The Irish forestry industry may be decimated by the Government.
I appreciate that this is a serious matter. Six minutes have been allocated for the question. You have taken three and a half minutes.
Maybe I will get a straight answer. How many hectares, or acres, does the Minister of State estimate will be planted in 2003?
Another cutback.
I do not accept the allegations made by Deputy Coveney. I have listened for the last number of days to representatives of the forestry industry making wild allegations. I have discussed this matter with individuals from the industry in the past week and I intend meeting representatives of the industry tomorrow morning to work out how we will spend the €82.5 million, which is a substantial amount of taxpayers' money.
I remind the Deputy that in 1997, when his party was in Government, the spend was €64 million. The expenditure of €540 million over the last five years is a significant investment in the forestry industry. When I examine the Estimates with representatives of the industry we will be able to plan a viable planting programme for 2003. I am totally committed to a continued afforestation programme.
Could I have an answer? What is the hectarage, so that people can plan for next year?
I am meeting the industry tomorrow and we will make decisions based on the Estimates.
Is there not a plan in the Estimates?
I have a plan and I will meet the industry tomorrow. The average spend in the past five years has been €90 million. The spend for this year is €82.5 million and there will be a viable planting programme for next year which will satisfy the industry.
