Dáil Éireann Debate, Tuesday - 29 November 2022
757. Deputy Matt Shanahan asked the Minister for Agriculture, Food and the Marine the overhead and margin percentage used by the forest service of his Department in the afforestation grant rates for the next forestry programme, as recently published; and if he will make a statement on the matter. [58728/22]
View answer760. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine if the proposed grant rates in the next forestry programme will cover 100% of the costs involved in preparing and developing afforestation sites; and if he will make a statement on the matter. [58738/22]
View answer762. Deputy Michael Fitzmaurice asked the Minister for Agriculture, Food and the Marine if he will detail the mechanism and calculations, per forest type, by which the forest service of his Department calculated the afforestation grant rates as recently published for the next forestry programme, in tabular form; and if he will make a statement on the matter. [58740/22]
View answer773. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine if he will confirm the principle of the afforestation grant rate providing for all costs associated with afforestation; and if he will make a statement on the matter. [58834/22]
View answerI propose to take Questions Nos. 757, 760, 762 and 773 together.
The Deputies will be aware that my Department has secured funding of €1,318billion for the Forestry programme 2023-2027. This will support the biggest and best-funded Forestry Programme ever in Ireland and provides unprecedented incentives to encourage the planting of trees that can provide a valuable addition to farm income and help to meet national climate and biodiversity objectives.
My Department has published proposed grant rates for each of the forest types which reflect the overall direct costs of establishing a range of different types of forests. These rates have been agreed with DPER and are still subject to state aid approval. The proposed rates agreed with DPER are listed below.
|
- |
Forest Type |
New Grant Rate |
|
FT1 |
Native Forests |
€6,744 |
|
FT2 |
Forests for Water* |
€6,744 |
|
FT3 |
Forests on Public Lands** |
€11,044 |
|
FT4 |
NeighbourWoods*** |
€10,200 |
|
FT5 |
Emergent Forests |
€2,500 |
|
FT6 |
Broadleaf, mainly oak |
€6,744 |
|
FT7 |
Other Broadleaf |
€4,314 |
|
FT8 |
Agroforestry |
€8,555 |
|
FT9 |
Seed Orchards |
€10,000 |
|
FT10 |
Continuous Cover Forestry |
€5,421 |
|
FT11 |
Mixed High Forests: Conifer, 20% broadleaves |
€4,452 |
|
FT12 |
Mixed High Forests with mainly spruce, 20% broadleaves |
€3,858 |
Native Tree Area Scheme will be paid at FT1 and FT2 rates. Premiums will be paid over 10 years rather than 20 at a rate of €2,206 per ha annually for NTA1 and €2,284 per ha annually for NTA2.
* Additional payment of €1,000 per ha will be paid to landowner on completion of planting
** Grant includes Trails, Seats & Signage Facilities and Derelict Site payment
*** Grant includes Facilities payment
My Department was mindful of cost-of-living pressures in determining both grant and premium levels whilst working within the parameters and framework of the public expenditure code. In setting rates my Departments decisions were underpinned by the COFORD report, “Economic Activity and Employment levels in the Irish forest Sector”. The setting of the grant rates considered the various operations, labour, costs and overheads involved in the establishment of forests
The proposed Department grant rates, subject to state aid approval, do not include fencing grants or the Environmental report grant. Both payments, which will be published imminently, are additional to the basic grant rate and provide an attractive and realistic funding for forestry establishment.
The calculations of costings have regard to the COFORD report and direct costs of operations along with overheads averaging over 40%. Costs are indicative and may vary between operations and will depend on a variety of factors such as economies of scale, rates charged by different contractors, Foresters and companies. Some operations may incur difference direct costs that may be lower or higher depending on site and location.
Together with additional funding for fencing and environmental report grants, this grant package provides a very realistic and attractive package to cover the costs of forest establishment. The grant and premium package was formulated to optimise the incentivisation of tree planting and deliver on climate action targets as well as delivering economies of scale to the forest industry to help deal with rising living costs. Cost benefit analysis of the new Grant and premium rates shows a very attractive rate of return, most especially for farmers and heralds a new and exciting period for forestry in Ireland.
The new Forestry Programme will drive a new and brighter future for forestry, for farmers and for our climate. The new Forestry Strategy (2023 -2030) and the Programme 2023-2027 provides an unprecedented opportunity for my department, the forest industry and stakeholders to promote, encourage and facilitate forestry as a realistic, attractive and profitable land use option and deliver significant societal benefits.
