Dáil Éireann Debate, Tuesday - 17 October 2006
112 Mr. Sargent asked the Minister for Agriculture and Food the forestry planting rates for the past 15 years; if these are meeting existing targets; the reason for the fall-off in planting in recent years; her plans to ensure that the Government’s existing target is met and exceeded; and if she will make a statement on the matter. [33298/06]
View answerSince 1991 some 228,159 hectares of new forestry have been planted, representing an average planting rate of 15,000 hectares a year. The current planting target of 20,000 hectares per annum, including public planting of 5,000 hectares per annum, was set in 1996.
Public planting ceased almost completely in the late 1990s, because of a Court of Justice ruling which found that Coillte Teoranta was ineligible for afforestation supports. In more recent years, a combination of high land prices, competing land-use options and uncertainty about future agricultural scenarios has led to a reluctance on the part of many farmers to commit their land to forestry.
In terms of incentives, the current forestry grant and premium package, including advice from Teagasc, is without doubt the most attractive that has ever been available. Farmers and landowners can avail of an establishment grant of 100% of costs, a tax-free premium of up to €500 per hectare per annum for 20 years at present and, under the single payment scheme, they can plant up to 50% of their eligible claimed area without losing any entitlements.
Under the new rural development plan 2007-13, we intend to bring forward a new forestry programme. The detail of the new rural development plan and its forestry component has yet to be finalised but it will be made available for public consultation shortly.
Earlier this year our Department embarked on a joint initiative with the Irish Forestry Industry Chain, IFIC, under the heading "Forests for a Bright Future" to highlight the multifunctional benefits of forestry and to stimulate uptake in the afforestation programme. This promotional campaign is expected to run for at least 18 months and is promoting the advantages of forestry, particularly to farmers, with a view to increasing the rate of new planting.
I welcome the Minister of State's reply. I wish to tie this question in with the previous question, as there is a considerable energy issue related to forestry as well as the other aspects the Minister mentioned. The Minister of State advised me in July that forestry premiums were under review. Notwithstanding what she indicated in her reply in this respect, and I can understand the reason she would paint as positive a picture as possible, given that forestry premiums have not risen in the past six years, is it intended to increase those premiums? A 40% increase is what is perceived would be a fair increase. I will meet representatives of the IFA tomorrow, as no doubt will other Members, to discuss the pre-budget submissions. Therefore, it would be useful to know if the Minister of State is thinking of introducing such an increase. As she said, land prices are increasing and many issues need to be dealt with separately in that context, the Kenny report being only one of them. Does the Minister of State intend to increase premiums in light of those other increases in costs, which make it difficult for many farmers to engage in forestry production?
The Minister of State referred to introducing a new forestry programme. Will she assure us she will not simply reduce the target of 20,000 hectares per annum, given that it is not being reached and call that level the new target, or will she be a little more ambitious and recognise that forestry needs to play a more central role in this country for all sorts of reasons?
While there has been much discussion on monopolies, Balcas in Fermanagh is the only company supplying wood pellets. In the interests of ensuring competition, is there not a need to develop the forestry industry to ensure there is more than one supplier of wood pellets, which is an increasingly important fuel source?
The European Commission contracted the Department of Agriculture and Food last February to warn of a possible legal action against Ireland due to neglect of environmental aspects of forestry policy. Has the European Commission contacted the Department since concerning the issue and, if so, what was the Department's reply?
We would like to see increases in grants and premiums. We have already announced an increase in the plantation grant which increased by 9% in 2005 and we received approval from the Department of Finance this year to increase the plantation grant by a further 14.7%. We submitted that proposal to the EU Commission for approval and are awaiting a final decision on it. A proposed increase in premium is currently being closely examined by the Department of Finance and such a proposal is part of the partnership talks.
Deputy Sargent was correct in saying it is important to be positive about the planting targets and to seek to have an increased planting target. One of the main items on our agenda is to encourage more farmers to engage in planting. That public planting by Coillte ceased as a result of the EU decision in the late 1990s has impacted on our planting targets. Nevertheless, there is an attractive package in forestry for farmers, as I outlined, be it the planting grants or the tax free premium over 20 years.
The Deputy was also correct in pointing to the energy aspect of forestry. The development of the production of wood chips and wood pellets, including the availability of SEI grants from the Department of Communications, Marine and Natural Resources, is important in encouraging people to switch over to using wood chip or wood pellets. Such development is also important to the forestry industry because following a tax-free premium over 20 years, farmers can gain additional income from thinnings from year 20 to year 40. Therefore, the more wood chip and wood pellet outlets we have, the better for the forestry industry. Such a development would provide a continual income from forestry for farmers engaged in it, in terms of tax-free premiums over 20 years and an income derived from the sale of forestry thinnings over the next 20 years. Under the single farm payment farmers can plant up to 50% of their land. Measures such as this are important and farmers can eventually gain further income from the sale of the timber. Farmers who have engaged in forestry production have spoken to me about the increased value in their assets. If farmers are elderly when they engage in forestry production, they know they are passing on a valuable asset to the next generation.
We also have an afforestation promotion campaign throughout the country through which we get the message across to farmers about the important energy aspect of forestry and about increasing the area planted. These two aspects are important and we will continue to promote them.
The European Commission made a serious complaint to the Government. What was the Department's reply to the Commission on our forestry policy?
Discussions with the European Commission on that matter are ongoing.
That concludes Priority Questions.
