Dáil Éireann Debate, Wednesday - 26 May 2010
36 Deputy Frank Feighan asked the Minister for Agriculture; Fisheries and Food if he will comment on the management of forestry thinning in the private forest sector; and if he will make a statement on the matter. [22045/10]
View answerMy Department actively encourages forest owners to thin their crops. Thinning improves the quality of final crop trees and can provide a source of intermediate income for forest owners.
In recent years my Department, in conjunction with COFORD, has funded a number of projects to encourage thinning in the private forestry sector and to develop markets for the small diameter timber produced by thinning, particularly to the renewable energy sector where there is an increasing demand for energy wood in the form of small diameter logs from thinning operations. This demand has stimulated increased management and timber output from private forests.
My Department has also provided start-up funding to a number of forest owner-producer groups to encourage private forest owners to work collectively in the management of their forests and marketing of forest products, with a particular emphasis on thinning operations. In addition, the forest road scheme operated by my Department provides grant aid for the construction of forest roads which will facilitate the extraction of timber from thinnings in private forests in a cost-effective manner. The scheme is now open and applications are currently being processed.
I thank the Minister of State for his reply. The management of forestry thinnings in the private forestry sector received a big set-back in the budget this year when there was an 8% reduction in forestry premia.
The Deputy should ask a question.
The funding was guaranteed to be untouched for 20 years yet the guarantee fell by the wayside.
Does the Deputy have a question?
The Minister of State referred to the construction of roads to accommodate the thinning of private forests. How soon will the grants be available for the construction of those roads? It is of paramount importance as well that we restore the confidence of the people who got involved in the private forestry sector and that we alleviate the problems that have occurred.
I acknowledge the point the Deputy made in the first instance. We accept there was a cut in that regard. The forest road scheme is now open for grant applications and they are currently being processed. I do not have a date for when the processing of applications will be completed. As the Deputy is aware, there is an increased opportunity for those involved in the forestry sector to use their thinnings for the biomass and other markets such as SmartPly and Medite. Opportunities exist and we hope people will take the opportunity to put in roads and follow through with thinning their forests.
There is a need for joined-up thinking. The Minister of State referred to Medite. If he is not aware yet of concern he will be in the next few days following the announcement by the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, about the tariff payable on energy generated from biomass. Coillte is concerned that the thinnings, and for want of a better term the tops and tails of the forestry product, which is now winding its way to Medite may well be redirected into bio-mass, in particular as a replacement fuel in peat burning stations. That has real consequences for the long-term viability of the plant in Clonmel. The law of unintended consequences applies in this case. I urge the Minister of State to be aware of that and to consult with Coillte. It was important that the Minister, Deputy Ryan, made the announcement as we needed an incentive in that regard but this was an unintended consequence and the Department should be aware of the need to address it.
I am aware of it. I spoke as recently as last night to SmartPly. I got the opportunity to visit the plant last week as it is down the road in New Ross in my neighbourhood.
There is a positive and a negative in this instance. It is a good news story for farmers in that it will put a floor on the price of pulp wood, however, there are difficulties in other respects. In my role as Minister of State with responsibility for forestry I am concerned about the possibility of virgin fibre being used. We want trees to go through their full life rather than for forests to be cut down and burnt, which would mean the end of the trees. We would prefer to see trees go through the sawmill process and the timber being used for other products which means add-on value through the process. This is an issue that is of concern to me in the forestry sector. I will keep a close eye on matters. I intend to speak to the Minister, Deputy Ryan, on the matter. I am fully aware of it and I have had a long discussion about it with my Department this morning.
Can the Minister of State give any indication of when the 8% reduction in the forestry premia will be restored?
No, I cannot. That is a matter for the Department of Finance. I am aware of the issue. I was lobbied on it by people in my constituency following the budget last year. It caused a lot of difficulty for some people who had committed to the forestry scheme.
In the past 40 years forestry in this country has increased from 1% cover to 10% cover. People were very forward thinking in the 1970s and 1980s when they planted many of the existing forests. I am aware of the difficulty the decision caused to some individuals who were reliant on their income in that regard. I will raise the matter with the Minister for Finance but I cannot give any indication of when it is likely to happen.
Written Answers follow Adjournment Debate.
