I am very much aware of the impacts currently being experienced by the sector as a result of delays in issuing felling licences. Prices for timber for forest owners has increased significantly in the last 12 to 18 months due to high demand for all forest products. This is an international issue and there are supply issues also being experienced in other European markets as timber is exported to others markets, including outside of the EU. Commodity prices have also risen across the board in a number of areas, including steel, concrete and plastics which together, with increased timber prices, is impacting on the cost of construction.
Ireland's sawmill industry is highly competitive and supplies significant volumes of timber products for export to the UK. Over 80% of wood based panels manufactured in Ireland are exported to the UK and further afield. Ireland has always imported and exported timber and will continue to do so for the construction of houses.
Forestry, particularly the resolution of licensing issues, is a major priority for both myself and Minister of State Hackett who is responsible for the forestry sector. Under Project Woodland, the backlog and a review of licensing processes are being examined and recommendations are being made by the Working Groups in terms of improving the situation. We have committed to issuing 4,500 licences this year, a 75% increase on last year which I accept was a low year, and I fully expect to deliver on this promise. This year to date timber licensed is 59% higher than the same point last year.