Donal Carey
Ceist:13 Mr. Carey asked the Minister for Energy if the system of using EC grant aid for the promotion of forestry developments is compatible with EC competition legislation.
Ceisteanna—Questions. Oral Answers. - EC Forestry Grants.
All EC assisted forestry grant measures currently in place have been approved by the European Commission, including the Commission's legal services. The measures are, therefore, compatible with EC competition legislation.
I find that hard to believe. Surely the Minister is aware that the real value of the grant aid between the private side and Coillte Teoranta amounts to approximately £133 per hectare. That arises because the payment of grants to the private side is staggered whereas payment to Coillte Teoranta is almost immediate. Does the Minister agree that there is a bias in favour of Coillte Teoranta against the private sector? Coillte Teoranta administer the grants.
The Deputy is wrong on all counts. There is no advantage. Grants are not paid in Coillte Teoranta immediately. The position is that Coillte Teoranta are owed £9 million from EC funds. Far from being paid instantly, as applicants are, they get their first payment after approval and their second payment after a period of years when the plantation has been established. The advantage lies with the private sector whose grants are paid instantly. The public sector position is that grants are delayed and Coillte Teoranta have to carry the cost in their interest payments.