Dáil Éireann Debate, Thursday - 28 September 2023
233. Deputy Sean Sherlock asked the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 755 of 20 September 2023, if it is still a pillar of the afforestation scheme that afforestation grants cover the full costs of establishing and maintaining a plantation for the first four years; and if he will make a statement on the matter. [42022/23]
View answer234. Deputy Sean Sherlock asked the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 755 of 20 September 2023, if it is accurate for his Department to advertise afforestation grants as covering 100% of the full costs to establish and maintain a forest; and if he will make a statement on the matter. [42023/23]
View answer235. Deputy Sean Sherlock asked the Minister for Agriculture, Food and the Marine further to Parliamentary Question Nos. 751 and 752 of 20 September 2023, to explain the difference in the grant rates detailed in the COFORD report: "Economic Activity and Employment levels in the Irish forestry Sector", and the rates set out in the report "The Economics of Afforestation and management in Ireland", specifically Chapter 4 where the author (details supplied) arrives at significantly higher rates; and if he will make a statement on the matter. [42024/23]
View answerI propose to take Questions Nos. 233, 234 and 235 together.
In my previous reply to the Deputy, I stated that the proposed grant rates for each of the forest types reflect the overall direct costs of establishing a range of different types of forests. I went on to outline the grant rates, fencing rates and the rate of grant for environmental reports. These rates have been agreed with DPENDR and have been approved under State Aid regulations by the European Commission.
The cost calculations include direct costs of operations along with overheads averaging over 40% and are designed to cover 100% of establishment costs. It is the case that 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 different direct costs that may be lower or higher depending on site and location. The costs of operations was set after consultation and with reference to submissions from stakeholders which included the report cited by the Deputy.
I note that the total grant package available is set higher than the Coford report "Economic Activity and Employment levels in the Irish forestry Sector" and compare in the main favourably with the indicative coefficients used by the report referenced by you.
