Dáil Éireann Debate, Tuesday - 31 January 2023
778. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine if he will outline his efforts to secure amendment to EU state-aid rules that would allow State-owned companies such as Coillte to avail of grant aid under the Forestry Programme; and if he will make a statement on the matter. [4570/23]
View answer782. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine if the revised State-aid rules allow for Coillte and other public bodies to access afforestation premiums funded exclusively through national resources. [4582/23]
View answer783. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine if there are any provisions under the revised State-aid rules that exclude Coillte and other public bodies from accessing afforestation premiums which are funded exclusively through national resources; and if he will indicate the relevant provisions in relation to same. [4583/23]
View answer784. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine the types of State-aid for afforestation that Coillte and other public bodies may be eligible for under the revised State-aid rules; and the costs of the establishment of forest and woodland and annual premiums per hectare for maintenance and income foregone. [4584/23]
View answerI propose to take Questions Nos. 778, 782, 783 and 784 together.
Under their new forestry strategic vision, Coillte have stated their aim to grow 100,000 hectares of new forests by 2050. While operational matters are the responsibility of the company, this vision will be key in supporting the delivery of one-third of Ireland’s afforestation target and providing a carbon sink of 18 million tonnes of CO2.
Historically afforestation premia were provided for under European Council regulation 2080/92 and were available to both farmers and non-farmers. Lower maximum rates applied in the case of non-farmers. Within this regulation, non-farmers were defined as any other private, natural or legal person. I would draw your attention to the landmark 2003 ECJ judgement for case No. 339-00 where it was held that, “as a public undertaking Coillte Teoranta was not eligible to receive aid to compensate for a loss of income arising from forestation”. This has resulted in the fact that Coillte to date, has not been eligible to receive aid to compensate for a loss of income arising from afforestation from my Department.
Ireland's current Forestry Programme regimes require State Aid to implement and operate under the Guidelines in the agricultural and forestry sectors and in rural areas. These guidelines expired on the 31st of December 2022 and have now been replaced with a revised version as of the 1st of January 2023. My Department has submitted comments during this revision period with a focus on ensuring that these guidelines reflect the best interests of land-owners within Ireland. Please note that the main drivers of the revision of this regulation were to align the State aid rules to the new Common Agricultural Policy (EU) 2021/2115. This has removed explicit references in the related areas to public and private landowners, and therefore specific submissions on this topic were required. Further details of the consultation can be located at competition-policy.ec.europa.eu/public-consultations/2022-agri_en
The next Forestry Programme 2023-2027 is currently being assessed by the Commission within this framework. Where land is in private ownership, whether farmer or non-farmer, it is proposed to be eligible for grants and premiums under the new Programme, as is currently the case under the existing programme.
My Department is currently working intensively towards securing full State Aid approval.
Without prejudice to this ongoing deliberative process, clarity will be sought on specific scenarios and details of possible claimants under this Programme. This includes the possibility for Coillte to be a direct beneficiary of forestry premiums under the Programme.
