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Joint Committee on Agriculture, Food and the Marine díospóireacht -
Wednesday, 22 Feb 2023

Forestry Policy and Strategy (Resumed): Discussion

I remind members, witnesses and those in the Public Gallery to turn off their mobile phones. The purpose of today's meeting is to resume our examination of forestry policy and strategy. The committee will hear from representatives of the Irish Timber Council, ITC, and the Irish Farmers Association, IFA.

All those present in the committee room are asked to exercise personal responsibility and protect themselves and others from the risk of contracting Covid-19.

Witnesses giving evidence within the parliamentary precincts are protected by absolute privilege in respect of the evidence they give to a committee. This means that witnesses have full defence in any defamation action arising from anything said at a committee meeting. However, witnesses are expected not to abuse this privilege and may be directed to cease giving evidence on an issue at the Chair's direction. Witnesses should follow the direction of the Chair in this regard and are reminded of the long-standing parliamentary practice to the effect that as is reasonable, no adverse commentary should be made against an identifiable third person or entity. Witnesses who are giving evidence from a location outside the parliamentary precincts are asked to note that they may not benefit from the same level of immunity from legal proceedings as witnesses giving evidence from within the parliamentary precincts, and may consider it appropriate to take legal advice on this matter. Privilege against defamation does not apply to the publication by witnesses, outside the proceedings held by the committee, of any matter arising from the proceedings.

Members are reminded of the long-standing parliamentary practice to the effect that members should not comment on, criticise or make charges against any person outside the Houses or an official, either by name or in such a way as to make him or her identifiable. Parliamentary privilege is considered to apply to utterances of members participating online in this committee meeting when their participation is from within the parliamentary precincts. There can be no assurance in relation to participation online from outside the parliamentary precincts and members should be mindful of this when they are contributing.

The committee will hear first from Mr. John Murray, chair, Mr. Pat Glennon, director, and Mr. Mike Glennon, member, of the Irish Timber Council, ITC. I now call on Mr. Murray to make his opening statement.

Mr. John Murray

Thank you, Cathaoirleach, for the opportunity to read my opening statement to the committee. The world is entering a period of great change driven by the climate impact of human activity. All nations, especially the developed ones, must cut their carbon footprint. This is not optional and Ireland must play its part. Growing more trees will result in more carbon removal from the atmosphere. In addition to growing trees, huge carbon reduction is also achieved through the use of the outputs from our forests. This is mainly timber, timber products, and biofuels.

The draft strategy for Ireland's forests sets out an overriding objective to radically and urgently expand the national forest estate. If Ireland adopts this objective the outcomes will contribute massively to the nation’s climate obligations; provide lower carbon products for construction and living; add to Ireland's biodiversity; drive economic development; support rural employment; and generally contribute to Ireland's quality of life.

The ITC welcomes the recent Government forestry programme of €1.3 billion in support of the forestry sector. Given the correct conditions, Irish landowners will achieve the Government's stated afforestation targets as they have done in the past. The fall-off in planting coincides with the introduction of excessive red tape and bureaucracy, which is discouraging landowners wishing to plant. Clear examples of this bureaucracy in recent years are the licensing of afforestation, felling and the acquisition of road permits. We are confident that if farmers and other landowners can get assurances on the prompt processing of all these licences and reduce bureaucracy in the system, they will plant.

In the early 1990s, planting targets were achieved by the private sector. Private planting in Ireland from 1990 to 2005 totalled 190,000 ha, or 12,000 ha per year. The Department of Agriculture, Food and Marine's current system could not deal with 12,000 ha per year of afforestation, as it is currently only issuing 4,500 ha per year. The loss of confidence in the system is highlighted by the poor uptake of these licences into actual planting.

The ITC believes that it is more appropriate to prioritise a fix for the bureaucratic problems and make it financially and procedurally attractive for all potential interested parties, small and large, to plant. The present system is prohibiting the small landowner and creating the scenario where only a corporate body with a comprehensive ecological team can realistically plant. This should not be the case.

The draft forest strategy states, "Support measures must be designed and developed in a way that makes the decisions around land use change and the creation of new forests easier for farmers who are considering this option." In regulating forestry, our Department has made it anything but easy for ordinary and modest landowners to get on with sustainable planting. The costs, the paperwork, and licensing debacles have turned our landowners off forestry. Our concern with the Coillte-Gresham House joint venture is that it will embed the flawed bureaucracy of recent times and will make it practically impossible for our landowning citizens to compete with the scale of expertise and automated compliance that comes with large enterprises. We fear it will raise the bar for making the decision to create a forest far above the level that can be met by the ordinary farming citizen.

Members will note extracts from statements released regarding the new joint venture between Coillte and Gresham House, which has raised grave concerns. The statements are in the public forum.

The ITC is strongly opposed to creating conditions where only Coillte, individually or through corporate alliances, can, directly or indirectly, be the primary purchaser of existing mature or semi-mature private forestry. Given Coillte’s dominant position in the Irish log supply market, it is totally unacceptable for it to increase this position through the purchase of existing forestry, which is tantamount to taking competition out of the market. This would greatly strengthen Coillte’s control of the log supply market.

The purchase of existing forestry is not new forestry and does nothing to help hit Ireland's climate change targets, but only serves to increase the State’s dominance and control of log supply to the Irish market.

We fully endorse the overriding objective to radically and urgently expand the national forest estate, as set out in the draft strategy for Ireland’s forests. The planting target to achieve our carbon reduction commitments is 18,000 ha per annum, up to 2050. This will never be achieved under the current bureaucratic licensing system. Ireland faces exorbitant fines in the future as a result of this.

We need to reduce bureaucracy and red tape, and support the farmers and landowners in achieving this target. If we do this, then we will have a much greener Ireland with houses built from Irish forests.

I am going to call Deputy Flaherty, who was the first to indicate. I am going to put everyone on time, and if we have time to go back for a second round, we will. We have ten minutes for each questioner.

I thank Mr. Murray. Mr. Pat Glennon and Mr. Mike Glennon for coming in here today. It is indicative and reflective of the forestry sector that we have two family businesses in front of us today - family businesses steeped in rural Ireland over several generations and very much at the heart of their local community. Despite their obvious success, they have probably been largely under the radar, so the fact they have come in to the committee to speak about the challenges and the threats they see ahead for this industry is significant. We need to take note of that.

Mr. Murray spoke at some length about the bureaucratic nightmare in licensing. We have had both the Minister and the Minister of State at the Department of Agriculture, Food and the Marine in here, and both of them reassured us that the licensing issue has been resolved, that there is movement and that we will see some small degree of improvement. Clearly, Mr. Murray does not have any confidence in that improvement. If we are only doing about 4,000 ha per year at the minute, it is impossible for us to get to the 12,000 ha, and certainly to the 18,000 ha. Would it be fair to say that Mr. Murray has no confidence in the process at the moment?

Mr. John Murray

That would be fair to say. We are looking at the planting of just 2,000 ha plus per year. That has not been seen since the Second World War. It is just not working. There is no doubt that we need to put a system in place that can handle the 12,000 ha, and heading for 18,000 ha.

Obviously, Mr. Murray is dealing with farmers and producers daily, and that is the message he is getting. The message we have been getting from the Department is that measures have been taken, the problem has been remedied, and that the licences are going to start flowing.

Mr. John Murray

I would say that there is a lot of frustration out there with licensing.

Obviously the Coillte and Gresham House deal is one that has perplexed Mr. Murray a lot. His is a voice that we have not heard in here, because he is reflective of the timber industry. We have a heard a lot from the IFA, and from farming groups, in relation to forestry. Could Mr. Murray expand on Coillte's position in the market, and succinctly explain its significance but also the threat of Coillte in the market for family businesses and other operators?

Mr. John Murray

Historically, Coillte was the primary supplier to our log supply market. Over the last number of years, that has started to change with the private coming on stream. Coillte would still be a monopoly supplier into our market, in and around the 70% mark. Coillte's position in the market that we have to deal with is quite substantial. We do not see why Coillte has to get involved in this. We do not see the benefits of it. Certainly from the point of view of new forests, it is minor. From the point of view of buying existing forestry, we do not see any benefit apart from Coillte enhancing its position in the market. We see that as being only good for Coillte and for no one else.

Perhaps the Glennons might be able to speak to the Scottish experience. We have heard an awful lot about Gresham House, and I know that it is active in Scotland, in both plants and afforestation. What is the Gresham House experience in Scotland?

Mr. Mike Glennon

In fairness, to put context to it, this is nothing about Gresham House. Gresham House is a good and successful business. It is a fund that wants to make a return, and we can not condemn it for that. The key issue here is that we have the lowest planting since 1943. The issue is about the bureaucracy in people planting; that is the problem. It is an unusual move for Coillte to take the stance that it has, and it is unusual for the Government to support that.

The issue here is our lowest level of planting and the bureaucracy that has driven farmers away from the system. There is no market failure. As Mr. Murray said, when the opportunity was right, farmers planted with a vengeance and hence we have the private forestry today. We cannot see the fix that this brings. If 70% of the fund is to buy existing forestry, we cannot see what that does for climate change either. It does not make any sense from that perspective. This is not taking a cut at Coillte or at Gresham House. We are at the lowest level of planting since 1943 and we need to deal with that. We need to understand the failures that have existed in the Government.

The Deputy mentioned Scotland. A number of years ago the Scots were planting 5,000 ha and were worried as to what to do. It brought in the Mackinnon report and implemented its recommendations. Scotland is now at 12,000 ha and heading towards 17,000 ha. After seeing the work that Mackinnon did, we got him involved in Ireland and he reported in 2019. We then set up another review body to review his recommendations. That proceeded on to Project Woodlands. We had a Project Charter. We set up four working groups: a working group on backlogs; a working group on a shared national approach; a working group on organisation development; and a working group on effective processes, legal and regulation review. We have a project board which has issued five reports. Then we had presentations from Phillip Lee and Grant Thornton.

Then we got into consultation at a very wide level. We had the public attitudes survey on forestry in December 2021. We had the youth dialogue report in January 2022. We had the assessment of the attitudes of communities in April 2022. We had an online public consultation survey in May 2022. We had a deliberative dialogue on forestry in June 2022. We also had this public consultation. Coillte then did its own review. We have brought in the recommendations from the Mackinnon report and we were doing probably around 4,000 ha or 5,000 ha. We are now down at 2,500 ha because we are still thinking and talking about what to do. Scotland brought in the report, listened to the experts and implemented it. It is at 12,000 ha and heading towards 17,000 ha.

We could almost say we have had as many reports, working groups and consultations as we have trees.

Mr. Mike Glennon

I tried to scan through them all today and it was just not possible. To the best of my knowledge, I do not see any of those reports recommending that Coillte should buy existing land and team up with the State bank. The concern I have is-----

I want to bring it back to the Scottish experience. Obviously, we are being told that the Gresham House joint venture with Coillte will result in more planting of trees. In Scotland, with which Mr. Glennon is familiar, what happens when an investment company like that comes in? Does it plant trees?

Mr. Mike Glennon

We should look at the objective in its official statement. It states that 70% of the fund is to buy existing forestry. That is not providing more trees; that is just changing the ownership. That is providing a fund backed by the State to buy forestry from farmers. If any farm owner wants to buy forestry, he will now be going up against the State to buy the land. We just cannot understand how that can be positioned from a climate change perspective when 70% of it relates to existing forestry.

What has been the Scottish experience with land pricing and log pricing when it became involved? At a corporate level, what happened with the market?

Mr. Mike Glennon

Prices in Ireland will have to increase with this extra funding. Bringing more money into a market will increase land prices as a result. There is no doubt about it. This Coillte-Gresham House joint venture appears to be positioned as if it will help sort our planting issues, but it will not. We believe it would be much more beneficial for the forestry sector if the Department and Coillte spent more time trying to resolve the problems in getting planting and encouraging farmers back into planting because some of them have had really bad experiences.

No less than three years ago under the same regime, we had a boat chartered every six days to bring logs into Ireland to keep our plant in Fermoy going. On the other hand, farmers were ringing us and begging us to take logs but they could not get felling licences. That was only three years ago. We are stumbling from one bureaucratic nightmare to another and we are not fixing it. Bringing in this other vehicle is doing very little to help fix the problem. We would like the Government and the Department to place more emphasis on streamlining the planting and licensing system both through planting applications and road licences to make it functional for the ordinary farmer to participate in forestry. We can easily forget that we can grow trees twice as fast as our Scandinavian competitors. Forestry is the only issue that can solve climate change and housing. It is a no-brainer for us. Every effort should be made to promote forestry in Ireland and to get the farmer really behind forestry.

I welcome the witnesses today. I have listened to what they have had to say I will make a statement with perhaps a few questions mixed into the statement. They have said we have the lowest planting since 1943 and there is a loss of confidence. For a long time, we have been saying it is a nightmare out there. There have been hardly any improvements. Despite public representative support and several reports on relevant issues, for example the Mackinnon report and several reports from this committee, nothing much has happened simply because those empowered to make decisions in government have been led a merry dance by officials within the forest service and the Department of Agriculture, Food and Marine. Unless there is a change of leadership and direction in both the forest service and the Department, there will be no significant progress in resolving any of these issues which plague the forestry programme.

To date the resolution measures for the ash dieback crisis, in which more than 26,000 ha of ash are dying on the stand, have proved totally inadequate and are unfit for purpose. In the first instance there seems to be no understanding of the magnitude of the problem as well as a failure to accept that all 26,000 ha of ash as well as ash trees in our hedgerows will die as a consequence of this disease. There is a simple solution: a realistic grant to support removal of all ash plantation and enable replacement of the removed ash with the payment of premiums for 20 years. The current rate of grant assistance is totally inadequate and no premium payments attach to the current schemes. One farmer growing forestry has invoices revealing a cost of €15,000 for removal of ash from one site for which he received just €5,000 in grant aid. Furthermore, the process adopted by the forest service in approving any such support is onerous and causes nothing but grief for owners dealing with forest service officials. I ask the witnesses to give their thoughts on this.

Licensing for every aspect of forestry activity remains an absolute nightmare. Would the witnesses agree that unless one entity is empowered to make decisions, delays will continue to plague applications? The forest service must become a service. It must reach out to owners, communicate properly and stop pretending that its decisions are founded on consultation. A citizen's assembly with the recommendations flowing from it which do not adequately reflect the views of owners is in no way reflective of reality. Policy decisions should not be developed on such false assumptions and recommendations.

Would the witnesses agree that the new forestry programme, although heralded as the way forward, will not achieve success either in encouraging farmers and owners to plant trees or in achieving climate mitigation? Regarding the Coillte and Gresham House joint venture, what is done is done, as the Minister for Agriculture, Food and Marine has acknowledged. He announced that this was not the preferred way forward. The Minister needs to come clean and outline in specific detail the preferred way forward to restore confidence in the forestry programme.

I could write a book about the interaction some of my constituents have had with the forest service over several years and all the respective complications. I will give a simple example. One man has been waiting on approval for an application for the establishment of a native woodland for over two years, which is indicative of how the forest service operates and why it needs a major overhaul.

Do any of the witnesses have comments on what Deputy Michael Collins said?

Mr. Pat Glennon

Ash dieback is something that would not affect our industry but we fully understand that it is a major problem with some of the farming community.

The current system to get trees in the ground is not fit for purpose. We believe that is the fundamental issue. We are talking about the new forestry programme coming in. What happened to the old one? The old one finished two and a half years ago. The Department got an extension for two years to have its ducks in a row to have it right. Here we are now at the start of the 2023 season and it is effectively gone because we are waiting to get an answer from Europe. That means 2023 will be gone. We will be no better at the end of 2023. If we hit 2,000 ha, we will be lucky. It is back to our fundamental issue here. We need to make it simple and easy for landowners in this country to plant timber.

Mr. John Murray

There were a couple of good points in what Deputy Collins said. The forest service should be a service. It should not be an impediment and that is what it is at present.

From the Gresham House point of view - the joint venture with Coillte - my concern is that this is a way to overcome the impasse we have with the lack of planting. It is just a sticking plaster. It is just a way of trying to get trees in the ground but, as Mr. Mike Glennon said, it is not. Only 30% of this is new forestry. The main thrust of this is existing forestry. I do not believe a State body should be using State funding - the Ireland Strategic Investment Fund, ISIF - and joint venture funding to enhance its position in what is already a monopoly market. Gresham House is well entitled to do whatever it wants in any market - that is what venture capitalists do - but I do not believe the joint venture with a State company will serve our industry well.

I thank the gentlemen for coming in. The Irish Timber Council is an important voice that needs to be heard in our wider debates around afforestation.

I want to pick up on the last point in respect of the Coillte-Gresham House joint venture deal. The witnesses probably feel the need to be more diplomatic than many of us do but it is an important point they raise. The rationale for this joint venture has been sold on the basis of the inability of Coillte to draw down State aid for new afforestation, but as the Irish Timber Council points out, a significant portion of the land that will be purchased under the joint venture is existing forestry and, therefore, will not be eligible for grant aid anyway. From the Irish Timber Council's perspective, what is the logic behind this? Does it believe this is simply a land grab of a different nature than perhaps we were talking about in January when this debate was at its height in respect of monopolising the timber sector or is there another reason that is not quite as obvious and that I missed?

Mr. Mike Glennon

It is a difficult one for us to answer because we were not part of that decision and we are not sure. Our understanding is Coillte is a semi-State company. It has two shareholders. Ultimately, it is an arm of the State. We are surprised an arm of the State would put a fund together and bring in a State bank to buy land that is already planted. We are completely lost. That is why we are here to try to voice that position. We do not understand this. A total of 70% of this is to buy land that is already planted. What is that doing to help our climate change target? It seems a roundabout way to achieve the same thing. Coillte had €130 million in profits last year. It is an unusual vehicle to make this happen.

Without us focusing too much on that, the important thing is Ireland needs to meet its climate change targets. It needs to meet its afforestation targets, but why not make it easier for the farmer to plant because the win for this will be getting the farmer to plant? That should be the mission.

There is no market failure here. The State normally steps in when there is market failure. The failure here is in the bureaucracy. Farmers have proven in the past, as Mr. Murray has said, that they will plant when the environment is right. We welcome this new €1.3 billion fund but the bureaucracy is killing it.

In fact, a good piece of work will have to be done because farmers have been stung. There are farmers who planted in the past and were waiting for two years for felling licences. We need to be more customer-focused within the service to understand, if we want to get farmers on board, what we need to do and what is the correct environment. We need to give them guarantees. We cannot have them saying, "Put in the licence". We need to be signed up for guarantees and be here with issues we need to fix.

I am conscious of the time.

And Fianna Fáil.

I am nearly lost for words at that suggestion. I thought I was renowned for my brevity in this committee.

The level of ambition that has been set out in the afforestation targets that the Irish Timber Council's representatives rightly say are required for us to meet our climate action targets are quite substantial. The Minister caused a bit of a stir in this committee when he was here on 8 February when he indicated that 1,000 ha of new afforestation was planted from previously granted applications. We should not have been surprised because we would need at least that level of afforestation in a typical January if we were to meet our target. Has the Irish Timber Council any evidence to suggest 1,000 ha of new afforestation was planted last month?

Mr. Pat Glennon

We have no direct avenue. We take our information from the Department of Agriculture, Food and the Marine.

From the dashboard.

Mr. Pat Glennon

The Deputy himself probably gets it. The Department reports every week or fortnight based on what has happened with afforestation. The figures we have state it has been approximately 2,000 ha of new planting for the past three years.

That is the annual figure.

Mr. Pat Glennon

Annual new plantation.

That is the point. The Minister had suggested it is in excess of 1,000 ha. When a number of members pressed him, the Minister stated he was told 1,000 ha were planted in January. The dashboard says there were 66 ha planted in January, which is lower than January of last year.

We need to get clarification. I propose we would seek that urgently from the Department because there is a significant anomaly. I suggest that the sea change the Minister was claiming at that meeting has not happened and there is no evidence those who have the 7,000 ha of licences are moving in as a result of the new scheme at the level that would be required to make up for the fact that no new licences are being accepted at present.

Mr. John Murray

We need to be mindful as well that there are planting seasons.

We are in the middle of it.

Mr. Mike Glennon

Yes. We should be in peak time now. Although we are not representing them here today, we believe the contractors are in a difficult way because the funding has not been put through correctly for planting and guys are afraid that, by the time it eventually comes through, they will have lost their staff and their businesses. That is a significant issue. They themselves would be better off telling the committee that story in case we describe it inaccurately.

A total of 40% of those who secure licences for afforestation do not proceed to planting. That is a significant level. There is not another scheme I am aware of where that number of people go to the effort of making an application and, by the time it comes round, decide not to proceed. Is there any sense that will change as a result of the new forestry programme? If it does not, it means that if we are to have any hope of planting 8,000 ha a year, we need to be granting licences for upwards on 16,000 ha per year. I would have serious concerns as to whether the Department would have the capacity to deal with that many applications.

Mr. Pat Glennon

That is a fair comment. If we are to achieve our climate mitigation target by 2050, it is clear we need to plant 18,000 ha a year. We are a country mile away from that compared with where we should be. I am struggling to understand why we, as Ireland incorporated, cannot do that. We have a product that we can grow twice as fast as any of our competitors in Europe. We have a country that is screaming for housing. We have a product that will be grown on Irish soil, harvested and processed by Irish people, and our surplus can be exported. Why can our Department not sort out this planning fiasco we seem to get? We just cannot seem to obliterate the red tape and start helping and securing farmers to get trees in the ground. The Government's National Mitigation Plan states: "Ireland has a target to expand forest cover from the current 11% of the land area of the country to 18% by 2050, with the majority of this expansion to be undertaken by farmers." How come we cannot simplify the system to help these farmers to get trees in the ground?

The Deputy is correct. The ship has left the harbour. We see the word "licence" granted in respect of 4,000 or 4,500 applications, while only two actually got trees into the ground. People are waiting so long. Who will wait 18 months any more to see what will happen? With the new programme being delayed until the end of the year until we get an okay from Europe, the ship has left the harbour. Farmers have moved on. They have lost confidence in the programme.

My final question will go off-topic, but it concerns an issue this committee considers quite a bit because we get representations from communities and environmental organisations. The fact we can grow trees twice as fast as other European countries has been mentioned twice now, but that is specifically Sitka spruce. Does the ITC see scope for diversification into new forestry in terms of the types of trees and wood we produce?

Mr. Mike Glennon

In fairness, the modern planting regulation requires the maximum amount of spruce that can be planted to be 65% or 70%. The UK is seeing the greatest increase in the planting of hardwoods, which is falling on the back of the fact the more softwoods that are planted, the more hardwoods are brought along with it. In order to plant today, as the Deputy is probably well aware, 100% spruce cannot be planted. The planting now is 65% spruce and the 35% left over is divided between biodiversity and hardwoods. Under the new regime mechanism, this will happen by default.

Does the ITC see any other route where farmers would move to different types of tree planting and wood production, in a sustainable way, both environmentally and financially?

Mr. Pat Glennon

That is a very good and important question. We need to try to concentrate on what we are trying to fix. If we are trying to fix our carbon question, as a country, conifer trees sequester carbon three times faster than any hardwood. That is a fact. The correct species for us to build houses is conifer trees. Hardwood trees are not suitable for building houses. If we are trying to fix our climate and provide material to build houses, conifer trees are the right way to do this. That is just a fact. If we want to try to fix our carbon discussion, there is no question that we must have 70% conifer. The 15% for biodiversity and 15% for hardwood are also-rans. Hardwoods will never really come to anything. In our great-grandchildren's lifetimes, they still will not come to anything. They must be planted on very good ground to make them grow. To answer the Deputy's question, conifer trees are the sequestration horse, or what we could call the Friesian cow of our industry. That is the one we have to promote.

Mr. Mike Glennon

It is the case that a rising tide lifts all waters. At the end of the day, conifers will bring more hardwoods and biodiversity. The legislation is such that will be the case.

Deputy Carthy's last question was very pertinent. Some people who think we can have an industry without conifers are living in fantasyland. We will not have a timber industry in 30 years' time if conifers are not planted, but some people think we can.

I thank the representatives for coming in. The Forestry Licensing Dashboard features a little section on licences issued versus planting. A yellow box indicates the planting for 2023. It does not give us the figures but I am fairly all right at maths and, going by what I am looking at, it was less than 50 ha in January. I would need a pair of glasses to see what the planting was for the first three weeks of February but it is probably 60 ha to 65 ha. That information is there for anybody to get. The representatives probably get that publication.

There is a reality here. Figures are being banded around the place. Since 2016, and we will soon be ten years into this, we have achieved, in all years, less than half of the 8,000 ha we predicted. If we take the guts of a ten-year period, between 2,000 and 4,000 ha were planted per year and, last year, approximately 2,700 ha were planted. It needs to be understood that farmers waited three years for licences. They do not wait but move on. That is the reality. We have an incompetent Department, to be quite frank about it. We have two Ministers who will not make a decision to move the people in that Department somewhere, whether it is out to the Phoenix Park to look at trees or whatever. There is a problem. We have to call a spade a spade. Everything is being blamed on the habitats directive. I was below on a bog and I knew about it in 2012, as did the Department. Let us not give the excuse of going to court or whatever. We have to cover ourselves on all those things.

If there is a deficit in that amount of timber over ten years, what is the consequence? The general rule of thumb is spruce takes 30 years to grow. That is the first question. I will throw a blast of questions together in order to get them done as quick as I can. Under the proposed land use, land use change and forestry, LULUCF, we are talking about 25,000 ha to 30,000 ha of forestry a year. Do the representatives think the people who came up with those ideas need tablets or something, when we cannot plant 2,000 ha? What is their view on that? Everyone in the timber mills understands that we are now coming to the stage where private operators are coming in with as much timber as Coillte. Does that pose a problem? My understanding is operators have to be ISO and quality assured in order to get rid of timber. Is there a private side to that whereby Coillte has all the paperwork done on accreditation for selling timber? Is a problem arising or are the representatives' organisations working with the private sector to deal with that? Are they concerned that the Minister of State keeps talking about us moving towards broadleaf only? Is that a concern for the industry down the road? This is just a point of view, but the Gresham House deal is done. There is no point in us talking about it any more because when we brought it up, no one made a move to stop it. The bottom line on it is some of the people involved in the deal were before the committee and told us they were very concerned about our climate. The fact is, however, that if someone buys forestry that is already standing more than five years, it is already accounted for. We got a pure BS story.

On the industry itself and the difficulties it had for a few years, what were the knock-on effects, as the man says, on the main three or four mills around the country? We have to think of the guys with the forwarders, harvesters and all of that. I remember meeting a man in the area in which the Chair lives one night. We both talked to him and he told us he was desperate.

He was desperate because he was being put out of business by what had gone on down through the years.

At the moment the supply of timber is pretty good. Have the witnesses any concerns? If I have a calf born on the farm, the Department of Agriculture, Food and the Marine will know and the factories will know down the line. The factories will know how many cattle are coming for sale. As I understand it, no inventory is done by Coillte. How do the witnesses know whether there will be a feast or a famine in five, seven, 12 or 15 years? Do they know the volumes that are coming, do they have any inventories that are accurate from the likes of Coillte, or is there any way to know they can tender for a certain amount of work and for them not to be having their tongues out, as it were, bringing it in from Scotland?

Being brutally honest, there is no point in us dressing mutton up as lamb here. The farming organisations have been constantly at it and the committee has been constantly at it, but the reality is we have had all the reports in the world and all of the talking shops we could have in the world. We have highlighted it, and in fairness to the committee, the only way the witnesses got their licences, to be quite frank about it, was out of the embarrassment of bringing those responsible in front of the committee. In fairness to all the public representatives on the committee, they threw their hearts into it because we saw the danger of the coming job losses.

However, this is not cured. One bit of the problem might be keeping the witnesses limping, but we have a huge problem coming down the tracks with emissions targets, because if we are not planting, we will be in trouble with emissions targets. This is coming. It is the farmer, of course, always gets the kick in the ass about their emissions being a certain amount. The offset is because of incompetence within the Department. It is my honest opinion, and I have said it and even spoken to the Taoiseach on it, that unless that Department is changed around, we will be talking next year and the year after about the fact, and I predict it now and this will be on record, that the year 2023 will be the lowest year on record for planting in Ireland, and the witnesses talked about since the war, because our submission has not yet gone to Europe. It will be between two and eight months. Two horse dealers think they can get it in four or five months. If we even go by some magical thing that it is turned around in six months, the year is over.

Looking at what is planted there now, we got this story in the audiovisual room that 7,000 ha are already granted and all those people can come into the de minimis scheme and happy days. We put it to them that day that those people had been waiting for so long - three years - to get their licences that they are as well off to throw them on the fire and burn them because it might warm them better than the trees they were to sow. There is a reality that people in the Department are living in a fairyland and it is no good to the timber industry or to us here. If you talked to farmers this minute and asked them about forestry, they would run a mile from it. There is no point in saying they would not.

Will Deputy Fitzmaurice give the witnesses a chance to answer the questions?

Let them answer them, so.

Mr. Mike Glennon

We will take some of the questions and let them fall between us. Deputy Fitzmaurice's comment is really well made about the infrastructure of the contractors and hauliers. They went through a really difficult time during the felling licence issue because we survived by paying extra for logs from Scotland, but that did not help the harvesters in the forest. It helped some of the haulage from the port but the harvesting and haulage infrastructure in the forestry sector is on its knees. The biggest fear we have is, by the time we get all the licences through, they will be gone. We will have the licences and nobody to do the work. That point is very well made and very valid.

With regard to the Deputy's comment on the inventory, there are reasonably good inventories but the concern we have is that we had a really good inventory and then the bombshell landed that we could not get felling licences. It is this thought-through process. The logs were definitely there but we could not get felling licences for them, so it did not make any difference. The supply chain from licences through forest to sawmill gate is not working correctly and that needs to be addressed. There is reasonably good work on the basic of forests that were put there in the past, but the supply chain is where the issue is.

Mr. Pat Glennon

The inventory would be more accurate with Coillte rather than the private.

Mr. Mike Glennon

Correct. There is work done on private as well to give credit where it is due. There are some concerns about it but it will all be about the felling licence. We can have an inventory but not be able to get a felling licence, or there will be so many conditions put on the felling licence that it will never come through. Our concern largely surrounds the bureaucracy of the administration itself.

Deputy Fitzmaurice made a point about regulations. One of the key things, and it is a great selling point for Ireland and other forestry products, is Forest Stewardship Council, FSC, certification. Coillte obviously has certification, as do the larger players. There definitely is a need to help the private sector and farmers to come together in joint certification schemes. It definitely is a gap in the market that needs to be addressed, and I am sure the IFA will elaborate more on that than us. The Deputy is right that, at the end of the day, we cannot sell wood to major customers bar it is certified. It is not that we can buy certified timber more cheaply; we just cannot buy it.

Does 75% have to be certified now?

Mr. Mike Glennon

Correct. There is an issue with the private growers that definitely needs to be dealt with. I share the Deputy's view, and I am slightly concerned, that the junior Minister in the Department does not see the full value of commercial forestry. The number of people employed in it, the houses we have built from it, and its overall contribution to society has been lost and the only thing we can talk about is broadleaves. We need both and I believe we in the the Irish Timber Council have failed to communicate correctly to the Department the full value of the sawmill industry. We have not been able to get that message across. I share the Deputy's view of the 25,000 ha, that if we cannot get the rest of them planted, how will that happen?

Is the Irish Timber Council concerned about the like of what I am looking at, which is planting 51 ha, 60 ha or 70 ha, to be generous?

Mr. Mike Glennon

We are incredibly worried about it for two reasons. The contractors are on their knees, and if they go, they will not be fixed. That is the big issue, that the whole infrastructure is in serious difficulty.

Mr. John Murray

With regard to the broadleaf, an interesting statistic is that, out of conifer forests last year, 4.3 million was produced. Some 30% of our forestry is broadleaf - 26,000 - and most of that was firewood. Broadleaf has its uses, but it is not for production. That is just the simple fact of it.

The Deputy mentioned the Gresham House deal and that it was done. I do not agree with that. This is the first opportunity our group has had to voice our opinions. We wrote to the CEO of Coillte and to both Ministers-----

You can thank Deputy Flaherty for that. He has lobbied hard.

Mr. John Murray

We got a reply from Coillte. We asked for a meeting. Its reply did not include a meeting date so we had to write back again to ask for that. That is still in the mix. We got no reply from the Minister for Agriculture, Food and the Marine and we got a reply from the Minister of State with responsibility for land use that she does not have time to meet us. The fact that the deal is done, as the Deputy said, I do not agree with that.

I am talking about the 12,000.

Mr. John Murray

Even so, if a deal is wrong, just because it has been signed does not make it right. We feel that deal is wrong and we do not believe that deal should ever have been done.

Mr. John Murray

We think it should be reversed. As a minimum we feel there should be safeguards put in place.

That is the end of it; that is as far as it goes. They have to be transparent. If they are not transparent, they will mean nothing. That 12,000 ha will be used time and again. It will be the same 12,000 being counted. We do a lot of that double-counting already.

Mr. Pat Glennon

I have one final point regarding broadleaf trees. Let us be clear. We are not saying wall to wall conifers - absolutely not. They have a purpose but there is no scientific justification for changing the hardwood percentage from 15% to 20%. That is purely a personal, private choice on the part of the Minister. There is no scientific evidence to say that it is the right decision. If we want to sequester carbon, it should have been left at 70% conifer.

I thank the representatives from the ITC for being here. As we have gone down the pecking order when it comes to questions, some of what I have written in front of me has been covered. An area that I wanted to cover was that relating to sitka spruce versus broadleaf, and the representatives answered their position on that well. We have had the Department, Coillte, forestry contractors and farm representative bodies, who would be the farmers that own the land, before us.

I have a couple of questions sticking to the witnesses’ special subject because it is good to hear from them. Ultimately, they are not the end user, but the last step before the end user. On that basis, we all knew - and it is there again in the witnesses’ presentation - that we peaked around the early 1990s. That is 30 years ago, give or take. We should have timber coming out of our ears today, pardon the expression. Yet, there were boats coming from Scotland. Can the witnesses categorically state that if it was not for the licensing debacle, there would have been no boats?

Mr. Mike Glennon

Undoubtedly. The only reason we bring in logs is because there is not enough timber to process.

But there is enough standing. We have enough. It was planted 30 years ago.

Mr. Mike Glennon

All the inventories are telling us the material is there. However, it is like everything else. When we had the farmers begging us to take the logs, we could not because they could not get felling licences. They had the logs; they were there. That was their pension fund or because their daughter was getting married. They wanted the money but could not sell it. It was there. That material was there.

The timber was there. The point that I am making or trying to get Mr. Glennon make is that it was because of the licensing debacle that timber was being imported when we already had it standing.

Mr. Mike Glennon

Absolutely. Either that, let our customers down or go on a three-day week - it was the only option open to us to do that. That took some of the pressure. When we hear that it is all resolved, the volumes that we brought in from Scotland gave a huge piece of space to the licensing authority. We were bringing logs for which it did not have to do any licensing work. That gave it a huge headroom to try to get up on top of it. Mr. Murray’s point is valid. This system has not been properly tested. We also need to watch that some of conditions on the licences that are being granted are that onerous on ordinary farmers that they do not think it is worth doing.

Mr. John Murray

Just take Coillte alone. It would have had your projections of what it would bring to the market. Typically, it was bringing about 1.7 million cu. m. On foot of the licensing issues that obtained between 2019 and 2021, that dropped to 1.4 million cu. m. It is starting to climb back up. The Senator’s point is valid. Where is the timber that was not used? Where is it? We are not seeing it. There is something very strange about that. Why is the timber not coming to the market? There is a big question mark over that.

Mr. Pat Glennon

We answer that question a slightly different way. I am absolutely 100% certain that if we did not charter that ship every five to six days, our company would have been on a three-day week. In one of the busiest over the past 25 years in our construction sector, we would have been on an three-day week. No question about it.

But we had the timber here, standing mature-----

Mr. Pat Glennon

Yes, we had timber in the forests.

-----and ready to process. The licences were all that was missing.

Mr. Pat Glennon

They were all that was missing.

Mr. Mike Glennon

Coillte is a well-resourced organisation, with many experts. Its volume was down 20%. If Coillte could not get through it, what hope had a private farmer?

That is kind of moving on to my next question, and excuse my ignorance on it. How do the witnesses buy timber? They are buying timber from Coillte and private forestry. How does that work? I know there are auction systems and all that. Is it the same system for private and Coillte? If not, how would the witnesses compare the two? I will ask my question out straight. How do the witnesses find dealing with Coillte?

Mr. Mike Glennon

A perfect functioning market is when half of the material is coming from the private sector and half from Coillte. That gives people options and lets a market dynamic come into place. In the UK or Scotland, it is half private and half state. That is the right balance. Neither being too dominant is the right solution. When there are equal players in a marketplace, that keeps everybody right. The private guys have served us well and Coillte has served us well. At first, the issues with the felling licences was not Coillte’s; it was the Department’s. It is an important difference.

Did the licensing situation affect price to the witnesses in any way?

Mr. Mike Glennon

It is a true commodity. It is supply and demand. If you take away supply, prices go through the roof. That is why we all had go to Scotland and take in as much as we possible could. It was either that or stop.

It was stated that there were no licences, so where is all that timber now? At the time, and in order to try to meet demand, larger applications, which, predominantly, were from Coillte, were prioritised. Is a majority of the timber that should have been harvested in the past three or four years in private ownership? Will those people struggle to get it into the market now?

Mr. Mike Glennon

The felling licence process has been a challenge for people. Some of the conditions being put on felling licences have made people say, “God, you know, I am better off leaving it here.” We keep saying this is fixed. I hope we leave the committee with one message: it is not fixed. It is not a functioning market. We need to get it fixed. We need to hear the issues the various landowners have. We need to take them serious and as credible and not just put our own answer to their problem. That is not happening. That is the biggest issue. Someone can affect a felling licence by a putting stipulation on it. Whatever those stipulations are, that can have a huge impact on the value of the crop to a player.

Just for my information, like every product, there is such a thing as good timber and bad timber. Does the area, type of land or conditions it is grown in affect the end product or the quality of the timber?

Mr. Pat Glennon

Not really. Is the Senator asking whether timber grown in Leitrim is the same as timber grown in Cork?

That is basically what I am asking.

Mr. Pat Glennon

No.

Mr. Mike Glennon

More importantly, from a consumer perspective, all the material that we supply is graded. To supply it on the market, any of the output coming from our mills or any of the mills of the members of the ITC has to reach a certain grade and standard, so there is a guarantee of uniformity of the quality coming out of the mills.

But there can be a difference in quality depending on the location.

Mr. Pat Glennon

No.

It is the same.

Mr. Pat Glennon

No. It is the same. Timber grown in Leitrim will be the same as timber grown in Cork. Mr. Glennon is saying that when we sell it to our customer, every piece must be guaranteed it is of a certain structure integrity – a strength grade.

If that was not thinned correctly, it would not have an impact on the quality.

Mr. Pat Glennon

Smaller tree. There would be a smaller diameter, but the strength of the piece will not change. It is just a smaller tree.

That is just for my own information.

Mr. John Murray

Where the quality of the land impacts more is on the broadleafs. Marginal land is suitable for conifer trees. It can survive very well on that. It will also survive very well on good land. However, broadleaf will not survive on marginal land.

Mr. Pat Glennon

I think perhaps the Senator is asking a slightly different question. It is like everything else. If you feed an animal good fodder, he will grow like hell. If you plant forests on poor land and others on good land, you will get more cubic metres per hectare out of the latter over a 30-year period. The yield will be there.

That is a time thing. It will come quicker.

Mr. Pat Glennon

Correct.

The witnesses are successful businessmen. No successful business will operate without forward planning. Using a crystal ball, what can they see happening with their business in 25 years’ time, when they should be harvesting what should be planted this year?

Mr. John Murray

That is a matter of some concern.

Mr. John Murray

More boats but unfortunately we can only bring boats from one part, which is part of Scotland. Therefore, boats are not a major option at this point in time. What we are planning is huge because our businesses are very technological. They are very machinery intensive and capital intensive. When we look to the future, we have to examine our processing techniques and invest in them. It is very expensive to do. If you see a gap in your future, you will look at the investment and question whether it is such a good idea.

Mr. Pat Glennon

To quote an old Chinese proverb, the best time to plant a tree was 30 years ago, and the next best time is now. Deputy Fitzmaurice asked whether we see a gap down the road. We absolutely do. Twenty years is nothing in forestry. Ours is a long-term business. It may not be a sexy business but it is a long-term business and we will be here. When we want to harvest logs in 25 years and see the thinnings coming out, they will not be there.

Mr. John Murray

This has to stop shortly. This gap has to be plugged. There is no doubt that there will be a problem in 30 years.

Mr. Pat Glennon

This could be a world-class manufacturing industry, with produce grown in Ireland by Irish people from start to finish. It could be a market leader if we could get the planning permission and the trees in the ground.

I welcome the representatives. The meeting has been fantastic so far and the presentations were really good. The report on where we are going to go with our forestry from now until 2050 has been issued. A figure of 450,000 ha was mentioned. This is roughly 15,000 ha per year. Taking into consideration other pressures in the agriculture sector, such as those concerning the nitrates action plan, do the representatives honestly believe we will ever reach the proposed 450,000 ha, or 15,000 ha per year?

Mr. Mike Glennon

Barring radical change to our mindset and approach, we will not have a chance in hell. Scotland's rate is up to 12,000 ha and heading towards 15,000 ha. Therefore, it is possible with everyone rowing in the right direction. If we work on the basis that the best predictor of the future is the past, we see we are in serious trouble.

Mr. Pat Glennon

The graph shows we did it before. If we get planning permissions right and the trees in the ground, we will succeed. The graph shows we were able to plant 18,000 ha per annum. We have done it before.

Mr. Mike Glennon

We all need to be mindful that when we were calculating our climate change obligations, we were not doing so on the basis of the 2,500 ha we are planting right now. The economic cost of our failing is greater than we are putting figures on. We were planting only 2,500 ha last year and the year before, despite the stated Government objective of 8,000 ha. When the monetary cost of not hitting our climate change targets starts to crystallise, someone will ask many very difficult questions.

Mr. Mike Glennon mentioned the Mackinnon report of 2019. The report published prior to that in Scotland transformed the industry. Mr. Mike Glennon went into it in detail, explaining all the subsequent reports. If the Mackinnon report's recommendations were implemented, which ones would need to be implemented straightaway so we could have a forestry programme fit for purpose and deliver on the same concept delivered on in Scotland?

Mr. John Murray

I really believe it is a question of timelines. If one puts in an application, a decision should be made within a specific timeline. The system is broken because there is no confidence. Applicants need to be confident of getting a decision on their afforestation licences. The one thing about putting a crop in the ground is that you need to know you can harvest it. If you do not know you will get a licence to harvest in 30 years, your decision will be an easy one to make.

Mr. Mike Glennon

Ultimately, we got a report and spent the following years getting additional reports, and now we are in a complete fog. I am amazed by the man-hours that have gone into reviews, reports and studies regarding the sector. The output is just going down. Someone has to call halt and say we need vision and a decision. We need a Minister to take this and run with it. If we keep getting more reports or reading the ones we have, the sector will completely collapse.

Mr. Pat Glennon

I have a really important comment to make on the Senator's point, which was alluded to by Deputy Fitzmaurice. Scotland planted its 12,000 ha using the same habitat or green directives that we must adhere to. The Scots got a Mackinnon report and their people on side. They got their Department and a Minister behind them and made it happen. They made it happen in fewer than five years. We are now in year four and going backwards. We will be going into minus territory shortly. It can be done but we have to get our ducks in a row. We have to get our Department geed up and get it happening straight away.

Mr. Mike Glennon

It was inspiring to see how Glasgow became the centre for COP26 and climate change initiatives. We have everything in our favour but we are just letting it slip like water through a sieve.

Mr. John Murray

Pitching one type of tree against another is not good for afforestation. It is just stymying things. The debate has gone on for too long; it is just going around in circles. Much of the debate is based on misinformation, the inaccurate take-up of information or whatever we want to call it. It is time to start doing and to stop talking and writing reports.

Senator Tim Lombard

Regarding the issue of the right tree in the right place, we have a plan to reach a target of 30,000 houses this year. The long-term aim is to have 40,000 and proceed from there based on population growth. Am I right in saying the figure for timber-frame house development is over 40% at this stage? If so, the sector is really significant in ensuring we have enough lumber to deliver on our housing plan. Should we not be considering this the other way around? Should we not be calculating how much timber is required to build the number of houses we need to build?

Mr. Pat Glennon

Now you are talking.

Should that not be the proposal? Do we not need to start talking about the quality of the timber? Otherwise, we will not reach the desired housing figure.

Mr. Mike Glennon

An interesting point in support of the Senator's argument is that 80% of the houses built in Scotland are timber. There is respect for and belief in the industry. They have a positive approach -----

Is the figure 42% here?

Mr. Mike Glennon

The figure is not wrong. It depends on which one we look at. For scheme houses, the proportion is probably at the level mentioned.

Sorry to interrupt but could I have clarification on something? Is the spruce timber accredited on the external walls of a house here?

Mr. Pat Glennon

We are doing this every day of the week in Ireland and in Scotland.

It is good to know because you would hear it is imported timber.

Mr. Pat Glennon

Absolutely. The ráiméis that Irish timber is not suitable for housing is utter rubbish.

The point I am trying to get to is that we need to be producing a certain quantity if we are to reach the 80% target that the Scottish market has. I am referring to Irish homes being built with Irish timber and, for that reason, the planting of a suitable Irish product. Mr. Pat Glennon said a certain timber specification is required. I take it that spruce is required for the building of homes.

Mr. Pat Glennon

C16 is the standard load-bearing strength required for a timber-framed home.

So we need a certain quality and a certain quantity to be planted. With that, we can service our housing market. The key issue is that the sector is supplying the housing market in the main.

Mr. Mike Glennon

We do more than that. This is where people lose sight of the multiple benefits of forestry. Very few fully understand that our industry is essential, although it became very evident during Covid. Some 90% of all products are transported on wooden pallets. Without the wood for those pallets, there would be an issue. A really interesting point is that one of the customers to which we supply wood was manufacturing the pallets for Meditron, the company that made the ventilators. Timber is such an inherent part of our lives that we do not see it, but 90% of products are transported on wooden pallets. It is a very significant sector.

To further allay the committee's fear and concern, on average 90% of the material we take into construction will pass the C16 grade to be used for houses. It is a very high percentage. We are currently doing that in Ireland and we are going to do it in Scotland. There is no question about the suitability or fitness of home-grown Irish timber for building houses.

Mr. John Murray

Given the current climate with the Ukraine war and other factors, any natural resource a nation can produce itself is a fantastic thing to have. On top of it all, it is green.

I welcome the witnesses. I support Deputy Fitzmaurice in his assessment of the Minister and the Department. It seems to be total incompetence. The frustration, listening to other members today, is apparent. Most of them asked about the issues I intended talking about. We have talked about this subject over and over. From listening to the witnesses, we are further away than we should be, and going backwards. It comes across again today that licensing needs to be fixed. We do not need any more reports or surveys. We need the Department or Minister to grasp the nettle and get this done as quickly as possible. If this is not fixed as soon as possible, how big a problem will we be facing in 20 or 30 years' time because nobody will be coming into the sector?

Mr. Mike Glennon

It is catastrophic. It is important to realise we are in that zone now. The Government target was 8,000 ha per annum before the climate change requirement went to 18,000 ha per annum. We have been planting 2,500 ha per annum for the past few years, so this clock is ticking. We cannot overestimate the extent to which the infrastructure of harvesting and haulage is on its knees. The whole subset of people who grow the plants is in serious difficulty. These people are at an emergency stage. That could hit us quicker than the forests coming out. From the perspective of our businesses, despite the millions of euro being put into it, we do not have a business without logs.

If that continues at its current pace, how soon will we hit the serious problems to which Mr. Glennon is referring? It is not going to be 20 or 30 years' time. Will it be in five or ten years that we find ourselves with serious problems?

Mr. Mike Glennon

We have probably not put enough thought into that answer. Like the rest of those here, we are working in the belief that it will be fixed. We have not contemplated the alternative.

I agree. We kind of laughed when we were told in a recent meeting that the target is 18,000 ha per annum. As it is, we cannot get near the 8,000 ha target. Unless there is a complete change in departmental thinking, we will get nowhere near 18,000 ha. The letter of expectation states that "Coillte has not been involved in planting new productive forests in many years and should ... develop initiatives to support and realise the planting of such forests." Can Mr. Glennon give us his interpretation of that phrase? It appears that it effectively gives Coillte the go-ahead to take measures such as those with Gresham House and so on, despite the Minister telling us that is not the preferred option. In the witnesses' view, is the content of that letter of expectation something of which they would be in favour?

Mr. Mike Glennon

We have two concerns. The Coillte-Gresham House agreement is a sideshow to a fundamental problem. There is no market failure. If the regulation was corrected, farmers would plant. Coillte already has 400,000 ha of land. It owns 7% of the land in the State, so I am not so sure increasing that makes sense. It would make sense if there were a market failure, but there is not. Farmers cannot get through the process of planting.

It also came across at the last meeting that we were reaching targets 20 years ago. It is since Coillte became involved that things have started to go down. I appreciate what Mr. Murray said about this deal. The witnesses are successful businessmen. I do not know if they can answer this but, in their experience, how long would it take to finalise a deal such as that entered into between Coillte and Gresham House? It is unbelievable that the Department knew nothing about it until the deal was done at the end of 2022. Is it believable that the Department did not know what was going on between Coillte and Gresham House?

Mr. John Murray

I would be surprised if it did not.

Coillte will appear before the committee next week.

I will ask its representatives that question too.

I just let the Deputy ask the question.

We have spoken numerous times to the Limerick and Tipperary Woodland Owners, which has raised the particular issue of clearing ash dieback on the roadside. For the record, can the witnesses give people an idea of the financial costs and layout and level of responsibility on the landowners to do this by themselves? Can they give the committee an idea of how costly it is to remove infected trees and the process involved in organising that?

Mr. Mike Glennon

We would give the wrong information doing that. We do not have a clear handle on that. Ash dieback does not come within the remit of our sawmills. The IFA is much better positioned to give that information. In fact, the group referred to by the Deputy would give the most accurate information of all. We do not know enough to comment credibly or accurately on that, so we are better off not commenting.

How does the expected nature restoration law play into our afforestation targets and ability to make plans? Given that plantations may be deemed to be in the wrong place and fall foul of it, what ability do we have to prepare for a situation like that?

Mr. John Murray

As with ash dieback, that is not something we would be privy to. However, I imagine that having an afforestation system that is not working and then having a nature restoration law on top of that would make the situation worse for us.

I am not telling the witnesses their business, but the land restoration policy is a major policy coming from Brussels. It would be no harm to become familiar with what is being proposed. Deputy Browne is saying that, under that proposal, some land currently planted will not be allowed to be replanted after it has been clear-felled.

Mr. Pat Glennon

That is a fair comment. One of the statistics is that the average land area planted across the EU is 38%. In Ireland, it is 11%. We are a fair bit behind but I accept that the Chair is saying there is a change in the rule book coming down the line.

It is only proposed. We will not be putting the white flag up yet.

I thank the witnesses again. Everything has been asked at this stage.

I welcome the witnesses today. It is very informative and educational to hear what they have said.

I also welcome the concerned observers in the Public Gallery, not least Jason Fleming, my neighbour from Inchicorrigane, Kilcummin.

We are at a critical juncture because, as was said, there is going to be a gap in supply created by what has happened over the past three or four years. My first question is on the confusion that has been created about broadleaf versus spruce. There is no way in the world that broadleaf will be as productive or as valuable a resource as sawn long timber to be used in the construction of houses. Am I right in that regard?

Mr. Pat Glennon

Yes, 100% correct.

I am someone who mounded in forestries going back years since track excavators were first used. Ploughs were used before that and there was a lot of hand work before that as well. We mounded places, only for them having been properly drained, that were quite useless for any other product. Is it correct that timber grown off that land, once it is grown properly, is as useful as timber grown on good, green ground?

Mr. Mike Glennon

That is absolutely correct.

Mr. Pat Glennon

I have an important point on that. If a person has 100 acres or 100 ha to plant, or whatever measurement terminology one wants to use, we feel the blanket approach to the rule of having 15% hardwood, 15% biodiversity and 70% conifer will end up with us having to plant hardwoods on ground that will never grow hardwoods, only weeds. It is the wrong tree in the wrong place for the wrong reason. The Deputy's point is exactly right. Sitka spruce or conifers will grow there but hardwoods will struggle to survive in the example given by him.

Mr. John Murray

I was in Waterville many, although not that many, years ago and I saw two fields. One field was full of Sitka spruce. It was a perfect crop. The other field had six bushes in it. Both fields were planted with equal numbers of trees. One field was planted with oak and the other with spruce. The oak did not survive. They all died. That is the Deputy's point in case. The spruce was perfect.

That is very important to spell that out, especially to a Minister in charge of forestry who is trying to ram it down our throats that broadleaf can be as productive as Sitka spruce on that kind of land.

Mr. John Murray

It is just not true. It is as simple as that.

Mr. Pat Glennon

There is no grey area. That is false.

It has been a major mistake of this Government and the last, and even the Government before that. They would not give a grant to people who wanted to plant marginal ground. People had to have 80% green ground and only 20% marginal ground. That has been the policy of the Governments since 2010 or 2011 and that policy is wrong.

We have a lot of marginal ground that would be good for planting Sitka spruce. As I said, we planted very marginal places that were absolutely horrible but the land grew timber. It is being transported through our village. What the witness said is very important, that we use whatever resource we have available to us. It is great to see lorry-loads of timber, be it from thinning or the big timber or whatever, being transported through our little village. There are only very few things that we are growing on our land.

There are those who have cattle and sheep, of course, but some people cannot do that kind of farming as they have marginal ground. We are being denied and this word needs to get back but there is no good in telling this to the Ministers we have at the present time because they are not listening. They are deciding about conifers. That is why I believe the Ministers we currently have do not want us to plant spruce trees and do not want us to cut them. They want us to remain static. I do not blame the witnesses one bit in the world for going to Scotland to bring in sawn long timber. At the same time, the same Minister will stand up and say that we must build timber frame houses, but from where are we going to get the timber if we do not import it? The witnesses agree it is going to become much worse because there is a gap at present.

It should have been the policy that if a person plants something, he or she should be allowed to harvest it. Now we have objectors. There should be no such thing as giving these people a chance to object at all to farmers cutting down their forests after they have planted them. It had to have been their notion to cut it down if they planted 30, 40 or 50 acres. It was not to get lost inside in the middle of it that they planted the land in the first place. What is going on is absolutely ridiculous. I know a fella in Rathmore who was seven years waiting for a felling licence. He got it finally in the end. He had a young family, a fine family, and he needed to support them going to college. They are all doing well but he could have made it easier for himself if he were able to benefit from the sale of his timber. Now he is waiting to get a licence to replant it. The whole thing is floundering.

As for Gresham House, this is wrong. I worked for Coillte and I appreciate the work it has done and the amount of timber it has provided. The Chair, Deputy Cahill, and I were across the road the other day at a forestry where my father first worked with a spade. It had been planted in 1951. The third crop of timber is being transported through the village these days. There is production. Men are working in the saw mills. Lorries are drawing timber. Forwarders are bringing out the timber. Planters are going onto the land with machines and they are mounding. Work is being done.

Will the Deputy give the witnesses a chance to respond?

Yes, that is fine.

Mr. John Murray

First of all the point about the 20% marginal is a very good point, especially given what the Deputy said about the land use change that is coming against us. Any land that is marginal and suitable for timber, if the landowner wants to plant it, he or she should be allowed to plant it. It is as simple as that. Bureaucracy, red tape or opinion should not get in the way of that.

They have not been given-----

Let Mr. Murray finish.

Mr. John Murray

I have another point. It is funny that Deputy should say what he said. I was talking to my father last week. We are now harvesting and selling the kind of timber that, at 12 years of age, he took out with a horse. That is now in its third rotation. That is the resource we have. We can grow our timber so fast that we can bring it to market at speed. It is a fantastic resource and, as I keep saying, it is green. It does not get any better than this.

Mr. Pat Glennon

On top of that, conifers can grow really well on poor soil in Ireland. The Deputy's example of land that cattle would not feed on is the ideal ground for forestry. It is poorish land. I do not want to run down any county so I will start with County Longford because that is where I am from. There is more than enough land there that is marginal, land that is not good enough to make an economic return for the farmer using cattle, sheep, or whatever may be the case, that we should be planting. It is in every county up and down the country. We will never compete with the really good dairy farmers nor should we. We should not be competing with them. There is lots of land that should never be competing with the good beef or dairy farmers.

There is lots of poor, marginal land that is ideal for planting our crop.

Mr. Mike Glennon

There are two important statistics to bring us to a close. These are that the European average for forestry is 38% of a country's area, while ours is 11% or 12%, and we also now have the lowest level of planting since 1943. This best describes the problem we have.

I have just one question concerning the Gresham House deal. Is it felt this will drive up the price of forestry land in rural areas where farmers might be wishing to buy such properties themselves?

The witnesses answered that already. I think the Deputy had gone out of the room.

It was said that it will impact the price of land and drive it up. I thank the representatives of the ITC for coming in today. They have given us a good insight into the industry from the processing side of things. In fairness, they were very forthright. The information they have given us has been of great benefit. We have put a great deal of work into the subject of forestry in recent years, and rightly so because the sector is in crisis. Even though some people are trying to tell us the crisis is over, I do not know how that assertion can be made until we see the afforestation figures increasing. I appreciate the witnesses coming in. If they have any other issues they may wish to bring to us in future, they should feel free to send us a written submission at any time regarding the aspects they feel we should be addressing.

Sitting suspended at 7.12 p.m. and resumed at 7.16 p.m.

We have resumed for our second session. Witnesses giving evidence within the parliamentary precincts are protected by absolute privilege in respect of the evidence they give to a committee. This means that witnesses have a full defence in any defamation action arising from anything said at a committee meeting. However, witnesses are expected not to abuse this privilege and may be directed to cease giving evidence on an issue at the Chair's direction. Witnesses should follow the directions of the Chair in this regard and are reminded of the long-standing parliamentary practice to the effect that, as is reasonable, no adverse comments should be made against an identifiable third person or entity. Witnesses who choose to give evidence from locations outside the parliamentary precincts are asked to note that they may not benefit from the same level of immunity from legal proceedings as a witness giving evidence from within the parliamentary precincts and may consider it appropriate to take legal advice on this matter. Privilege against defamation does not apply to the publication by witnesses outside the proceedings held by the committee of any matters arising from the proceedings.

From the Irish Farmers Association, IFA, we will now hear from Mr. Brian Rushe, deputy president; Mr. Jason Fleming, farm forestry chair; Ms Geraldine O'Sullivan, senior policy executive; and Ms Edel McEvoy, policy executive. I call Mr. Rushe to give the IFA's opening statement.

Mr. Brian Rushe

I thank the committee for inviting us to this session. We are here today to highlight some concerns farmers have regarding Ireland’s future forest strategy, particularly the barriers that exist and which have seen a dramatic decline in farmer planting in recent years. Due to time constraints I will pick some key points in our statement.

It is important to recognise that farmers will be crucial to the success of the future forest strategy. Agricultural land accounts for approximately 65% of the total area of Ireland and farmers will ultimately decide the production systems implemented on their farms. Farmer planting peeked in 1995 at over 17,000 ha, but has been in sharp decline since. This has especially been the case since 2015. In 2021, farmers planted 360 ha of forestry nationally, accounting for just 18% of the planting programme of approximately 2,000 ha. Investor or non-farmer planting accounted for 82% of the planting programme.

The decline in farmer planting and corresponding increase in investor planting can be linked to the equalisation of premium rates for farmers and non-farmers in 2015. Under the previous forestry programme, the non-farmer premium rate increased by 65% while the farmer premium payment was maintained at the same rate but paid over 15 years instead of 20 years. This shift in policy to significantly increase incentives for investors while farmer premiums were maintained but the term of payment was reduced by five years seriously undermined farmer confidence in the programme. This development, combined with a range of other issues that reduced the area of land available for forestry and increased the regulatory burden and associated management costs, can be linked to the sharp decline in farmer planting.

Turning to the barriers to farm forestry, the reality is that many farmers no longer view forestry as a safe investment. Under legislation, they are locked in under the replanting obligation while they have seen their productive area continually eroded with evolving environmental regulations and a regulatory system that is impeding management and reducing profitability. The lack of support for farmers affected by ash dieback disease has made others wary of entering forestry under the current terms and conditions. The recently announced €1.3 billion in funding under the new Forestry Programme 2023-2027 shows a financial commitment from the Government to forestry.

The increase in forest premium rates and the return to a 20-year premium payment for farmers are positive steps and have generated renewed interest in forestry but barriers remain and need to be resolved if that interest is to be converted into land planted. Despite the work that has been ongoing through Project Woodland, including the regulatory review report and the consultations on the draft forest strategy and implementation plan, many of the substantive barriers to farmer planting remain. If farmers are to re-engage and plant at the level required to meet our climate obligations, in excess of 8,000 ha per year, the outstanding issues that are deterring farmers from planting need to be addressed.

The current licensing system is not fit for purpose for farm forests and places too high a regulatory and cost burden on farmers considering forestry at farm level. A proportionate regulatory burden that reflects the size and type of operation and guarantees a decision within an agreed timeframe is urgently needed. One of the greatest barriers to planting is the replanting obligation. This must be reviewed and options proposed if planting targets are to be met. The non-productive areas of forests planted under the afforestation scheme has increased to 35%, comprising 20% broadleaf planting and 15% areas for biodiversity enhancement, with no payment to farmers on this land beyond the 20-year forest premium. This needs to be addressed. A payment for ecosystem services must be paid for engaging in good biodiversity management practice within these areas.

The treatment of forest owners whose ash plantations have been devastated by disease has undermined confidence and trust in the programme. Until this is properly addressed and the loss of timber earnings recognised, farmers will not commit their land to forestry. The IFA is seeking for all infected plantations to be eligible for a 100% reconstitution grant and paid a forest premium for 20 years on the replanted land to compensate for the financial loss incurred. A voluntary carbon scheme must be introduced to pay farmers for the carbon sequestered within their forests.

Following the recent announcement of the establishment of the Irish strategic forestry fund by Gresham House and Coillte, the realities of how the Government intends to deliver the afforestation strategy have become more apparent to farmers and rural communities. The fund is very much the first step of Coillte’s plan to plant 100,000 ha of new forests, as set out in its strategic vision. Farmers and rural communities are rightly concerned that a large proportion of the €1.3 billion in funding under the forestry programme will be redirected away from farmers and rural communities and instead paid out to investors. These concerns are grounded in reality, as evidenced by investor planting accounting for 41% of planting between 2015 and 2020, with that percentage rising year on year. The socioeconomic impact on rural communities of this level of investor planting is unknown, particularly in areas where there is a high concentration of investor planting within townlands. The increase in investor planting has corresponded with a growing level of opposition to forestry nationally, as farmers and rural communities see neighbouring land being bought up by invisible investors, with the vast majority of the premiums funded by the Exchequer and earnings from future timber sales leaving the local economy and providing minimal downstream benefits to local businesses and communities. This is an unsustainable forestry model. The level of supports provided by the Government to non-farmers needs to be reviewed. There is strong demand in the agricultural land market and limited supply. Continued support of investors has the potential to further impact land prices and availability, increasing the competition for land. Steps must be taken to ensure that private investors in forestry do not disrupt an already heated land market. The focus of future forest policy must be to prioritise supporting farm forestry to meet afforestation targets. This optimises the multiple benefits that will ensure vibrant rural areas with thriving populations.

Despite the announcement in November 2022, the new forestry programme is not operational and no new applications for afforestation and forest roads can be accepted. The delay will have a considerable impact on the afforestation and the wider forestry sector. The average turnaround times for afforestation licences in 2022 was 18 months. Based on these turnaround times, even if state aid approval is received at the end of quarter 3 in 2023, a farmer who applies to plant would have to wait until October 2024 to get a decision on the planting application. This is an untenable situation. The current average turnaround times for afforestation licences are 4.5 times the legal requirement of four months. Changes need to be made to the current licensing system to streamline and speed up turnaround times for afforestation and all forest licence applications. The system must guarantee that a farmer has to wait no longer than four months for a decision on a forestry licence, as set out in the Forestry Act 2014.

Finally, I wish to raise the issue of the growing concern among farmers regarding the number of roadside ash trees infected with ash dieback disease. Farmers feel aggrieved that they are now being held solely responsible for the safe removal of these diseased roadside trees but the Department did not have adequate controls in place to stop the importation of infected plants. The IFA is seeking the introduction of a financial support package that would enable farmers and landowners to safely manage infected roadside ash trees and reduce the risk of injury. Safely removing these trees is costly and needs to be co-ordinated at a local level with local authorities.

If confidence is to be restored and farmers are to plant at the scale required to meet climate obligations, the Government needs to address the legacy issues preventing farmer from planting. It must provide assurances to farmers and rural communities that farmer-based solutions that strive to protect farmers rights are implemented to support the national afforestation targets being met.

I thank the witnesses for coming in. An issue was raised by the most recent group that appeared before the committee. They said they were a year waiting for the Minister and they did not get a meeting. Have the witnesses had meetings with the Minister?

Mr. Jason Fleming

I thank the Deputy, as well as the other Michael and the Chairman, for their support. I was speaking to Deputy Carthy as well. I thank all members of the committee. We have been seeking a meeting for the past year. We got a meeting with the Minister of State, Senator Hackett-----

The IFA has been seeking a meeting for the past year.

Mr. Jason Fleming

Yes. We had a meeting with the Minister of State, Senator Hackett, at 11.30 this morning.

The witnesses were coming in here in the afternoon.

Mr. Jason Fleming

Yes. We had a meeting with her this morning. She asked last year what we expected our trees to do for us. One thing I can tell the committee is that we expect the Minister and the Department to deliver for us on the ground as farmers. As stated, the whole forestry industry is on its knees, from nurseries and harvesters right down to the farmers planting trees. They are not planting or engaging and they cannot be lame for that. I am chairman of the IFA forestry committee. We thought the announcement in respect of the €1.3 billion that came out before Christmas was a step in the right direction but, unfortunately, after Christmas we learned of the Coillte set-up and these investment funds Coillte was going into partnership with.

As regards the programme, the 20% broadleaf, especially on the Sitka spruce side, and the 15% biodiversity, when it comes to the 20% broadleaf, that might as well be given over to the State. It is the 35% of Sitka spruce that is unproductive, and there is 15% on biodiversity grounds and 20% for broadleafs. For the 20% broadleafs on the Sitka spruce, we should be getting a broadleaf payment on that. As for the 15% relating to biodiversity, it is lucky there is an ecosystems services payment on it. It involves a seven-year payment. The view of the IFA is that seven years is not much good to us. There has to be continuous payment because when a person goes into forestry, he or she is there for generations to come and there is no way out.

Reference was made to the Coillte set-up. Last year, Coillte came out with this fancy figure of 100,000 ha of afforestation. When the pressure was on, that went from 100,000 ha down to 12,000 ha with Gresham House and then it went down to 4,000 ha afforestation. That is fine; it can be brought into the targets. The remaining 8,000 ha relating to Gresham House, however, is existing forestry. That is not coming into any targets. It is in the system already. The committee of which I am chairman, and the IFA as a whole, is trying to put a stop to the process relating to the remaining 88,000 ha proposed last year. I agree with the representatives of the Irish Timber Council on this. We are all on the same page here. They reckon this deal is not done and they can put a stop to it. If that is possible, we will be behind it 100%. The proposed deal is not good enough.

From what the representatives of sawmills who appeared previously before the committee were saying, they have lost faith in the Department, to put it simply. I presume the same is true for the farmer organisations,. What is the view of the witnesses in that regard?

Mr. Brian Rushe

Farmers have no confidence in the forestry service. Mr. John Murray made a good point when he said that it needs to become a service and not an impediment. That is what it has become. I sit on the charter of farmers' rights committee, representing the IFA, along with other farming organisations. The charter of farmers' rights is a form the Department uses to report on rates of pay and delivery times. Every section of the Department has, over time, achieved its targets. These targets were agreed with farm organisations in the negotiation of the charter. However, the forestry section consistently failed to lived up to the targets that it agreed.

Mr. Rushe does a bit of dairy farming. There is pressure on land at the moment around the country. How can this be resolved so that one part of the country is not taking the hit for everything, no matter which type of farming we are talking about? The IFA has looked at the grants that are being proposed at the moment for forestry. Given what we are hearing about the price of land for rent in certain parts of the country at the moment, will it not put an affliction on certain parts of the country with all of the different pressures that are on the entire agricultural sector, including beef, dairy, and forestry? Figures published by the EPA refer to 25,000 to 30,000 ha per year, which is loo-laa stuff given that we are not able to plant 2,000 ha at the moment. Those are dream world figures. We are looking at banding in the dairy sector and at solar panels in other places. Where does the IFA see all of these fitting? How can we square the circle?

Mr. Brian Rushe

In terms of the pressure on land-----

We are looking at rooting up some of the trees that Coillte and others have planted on what we would call peaty ground. There is talk about rooting them up and rewetting that land. Where does all of this magical land come out of to suffice the dreams of all the different pressures that is on it?

Mr. Brian Rushe

The forestry service and different Departments have lofty figures in terms of the targets, including a figure of 8,000 ha for farmers but they need to get from two to three and then from three to four. The way to make forestry happen for farmers is to remove those barriers that we spoke about that simply put farmers off. We need to make an enterprise attractive for a farmer. How do we make it attractive? We make it economically attractive and we remove the bureaucracy. The replanting obligation is a massive barrier but it is not spoken about enough. I have no doubt that if we removed the replanting obligation we would bring a lot of farmers back in. The fear is, because farmland is multigenerational, that farmers could be signing the next generation or the one after it into forestry. We need to remove that obligation and the bureaucracy around the licensing, which is a nightmare, frankly. As has been said previously, it is not fit for purpose. We must also make it economically attractive. Strong supports are needed. When considering the biodiversity payments Mr. Fleming spoke about in terms of the 20% broadleaf and 15% of the biodiversity ground, we are justified in looking for an ecosystem service there. Farmers are taking land - up to 35% of their ground - and putting it into something that is not economically viable. That is the bottom line. Farmers are not going to get a return for that but all of society is benefiting from that broadleaf. Farmers are rightly justified in looking for strong ecosystem payments for that to make it attractive. That is key.

We have seen the Gresham House set-up and, no more than the IFA, we do not agree with it. We have seen the different interests, including not-for-profit organisations, trying to buy land. I would be out talking to farmers a fair bit. If farmers with less than 50 acres were asked to plant 1 acre and to look after it well, those with 50 to 100 acres were asked to plant 2 acres and so on, we would get to 240,000 or 250,000 acres around the country. I am not saying that we have to put it all together. Farmers could have a shelter belt or a ditch or whatever. Do the witnesses think it is achievable to reach our targets and that farmers would buy in to that?

Mr. Brian Rushe

The conversations farmers are having with one another have changed massively even in the past two or three years. We see farmers dedicating land to ponds and bits of forestry themselves. They are taking more of an interest in, or more notice of, habitats that they did not realise were habitats and then putting more value into-----

They were paid to destroy them in the 1980s. The EU wanted everything ripped out of the place.

Mr. Brian Rushe

Yes, and farmers were supported in doing that but there is definitely a focus at farm level now on what they can do for the environment. Everyone wants to do more but the problem with forestry is that there is such little confidence in it that people are allergic to even considering it on their ground. That cannot be underestimated. If confidence can be changed at farm level, in terms of farmers looking at forestry as something that is not going give them a headache that will last for ten years, they will do it and their neighbours will do it. There can be peer learning in that regard. Fundamentally, it comes down to the lack of confidence at farm level, which is similar to what the previous witnesses have said.

Mr. Jason Fleming

It is also a two-way street but at the moment it seems to be all one-way. It seems to be all about farmers trying to engage with the Department but the Department not engaging back, especially with regard to licensing, over the past three or four years. Coillte is getting its applications processed within four months, which is within the departmental guidelines, while farmers could wait for four years. That is the reality and that was happening when timber prices were never as high. Now our licences are trickling out but the price has stalled and dropped by 20% to 30%. Where are we going, especially with these investment funds? Coillte seems to be able to do whatever it wants and farmers seem to be in the back seat. What the Minister and the Department should support here is farmers planting. They should support us and engage with us. We did plant previously. In 2013, we met the targets and planted more than 6,000 hectares. In 2016, 6,500 hectares were planted but that dropped to 2,000 in 2021. We must be supported properly and engaged with. We are planting and have no problem doing that but we are not getting the support we need.

I met Mr. Fleming at a few meetings around the country, in fairness to him. In Sligo he would have seen the lack of confidence, as Mr. Rushe said, that is there now. That is going to take an awful lot of rebuilding.

Mr. Jason Fleming

We all know the reason for the lack of confidence. As has been said, if a farmer applies for an afforestation licence and is waiting two or three years for it, he or she is going to go away and do something else with the land. That is the big problem here. We need licences to be issued within four months, as per the departmental guidelines. That should be the case for farmers and not just for Coillte. If anything comes out of today's meeting, it should be the message that four months is there for a reason. If a licence is not issued within four months, the Department should be getting back to the farmer, engaging and finding out what the problem is.

The opening statement outlines that in 2013, 70% of the planting programme was farmer planting but in 2021, it was only 18%. If anything would send a shiver up one's spine, it is those figures. I would say the figure for 2022 was even worse. Senator Daly is next.

I welcome the IFA delegation. I have a list of scribbled questions in front of me but most of them are inappropriate following the answers given to the first questions from Deputy Fitzmaurice. I wanted to try to get a handle on how the negotiations on all these issues were going with the Department but the witnesses said in their opening reply to Deputy Fitzmaurice that they were a year looking for a meeting and only got one this morning. In that context, there is not much point in me pursuing the issue of how they see things going forward, based on their negotiations or meetings with the Department, both from the ash dieback point of view and the list of problems that have been well thrashed out here. I may forget the theory I had that the IFA had more access to Agriculture House than Oireachtas Members. Our guests have knocked that one on the head this evening for certain.

The other issue, which is a common denominator in terms of what Deputy Fitzmaurice raised, is confidence in the sector.

With regard to the IFA's membership, is there an appetite there? Without stating the obvious, we have been dealing with this issue since the election of 2020 and we know all the problems at this stage. I think we also know the solutions but it is about getting the people who can implement the solutions to see it as we see it, and that is where it is all breaking down. The IFA has confirmed that it is finding the same thing. If there was a move in this regard, is there an appetite for it among the IFA membership? Is confidence shot so badly that it is irreparable? That is one question.

Is there also an appetite for the aforementioned agroforestry, for want of a better word, for example, a hectare of broadleaf trees? This is taking into consideration that while people might get the premium and they do not have to apply for a licence, it is only for 100% broadleaf, so it is 0% productive timber, based on what the timber industry representatives told us only an hour ago while the IFA representatives were present. Farmers may be looking at having trees there for life and the biggest problem is that people have to replant. If conifers were allowed in that agroforestry, does the IFA think there would more interest from the farming community, who would see a small bit of return and could replant if they so desired? If it is going to be broadleaf, do the witnesses think that is off-putting, or is there an appetite among the IFA membership for that?

Without asking the witnesses to repeat themselves, is the IFA making any progress on the ash dieback issue? From our perspective, it seems no progress has been made on that. While the IFA meetings are as frequent as I thought they were, is there a possibility as part of its deliberations that it will find an acceptable solution to the ash dieback issue? The witnesses highlighted a factor that has not got much airtime here, which is the issue of safety with regard to one-off trees in roadside hedges. Most of the deliberations we have had to date on ash dieback would have been more with people who had ash forest. It is a good point that was raised in that this is a safety concern for the general public. I ask the witnesses to elaborate on that. Has the IFA raised that with the Department and what kind of feedback has it got on that issue?

Ms Geraldine O'Sullivan

It is a point that was very well made in the negotiations. As Senator Daly rightly said, we know and we have highlighted the barriers in repeated reviews going back to 2010, when we saw planting figures fall from the peaks of 1995. These things were continually highlighted, including the replanting obligation. Given a lot of what was in the Mackinnon report and what has been highlighted in subsequent reports, we have known this because the stakeholders within the sector, farmers and previous witnesses have said it. Senator Daly is right that we know the barriers and the issue is finding workable solutions to those to make the system work.

It takes 18 months to get an afforestation application. That was the average turnaround time last year and it is an improvement in the system under Project Woodland. It takes 15 months to get a felling licence, which is also an improved timeline. We are asked why people are not going ahead with an application when they were expecting to have heard within four months and they did not hear anything until 18 months later. That is the reason. People realise they are entering into a system where they are going to have no control over the management of their land, which is a huge issue. It has been said that people need that guarantee. There needs to be improved communication between the applicant and the Department so that applicants know where their application is and that it is not going beyond the four months. If it is going beyond the four months, they should know there is a legitimate reason and that this will be communicated. They should also know that there is a positive relationship between farmers and the Department to achieve that and that it is proactively working. As was rightly said by Deputy Fitzmaurice, we have a land availability issue and we need to be proactively working between farmers and the Department and all the other stakeholders to actively get forest into all suitable land types. We should be trying to remove all of those barriers and optimise the land that is available to forestry. We need to first have those guarantees to get that appetite back, and that needs to be embedded.

We also need to de-risk the investment. Forestry was always considered a very safe investment but it is now considered very risky. We have seen environmental policy evolving at such a rapid rate that all of us dealing with it are finding it hard to keep up. People are planting something now and it is 65% productive. What happens when they are thinning it or clear-felling it in 30 years' time? Will they be allowed to have any productive species in it? What area will be productive and not productive? That is where the payment for ecosystem services is critical because we need to de-risk it. People need to have that linked with their timber values so that if they get into this land use, and even if we evolve and change policy, they will still have a payment from that land which is the value of the timber production.

That comes back to ash dieback as well. We know with climate that the risk of disease and pest is increasing, and we need to provide some protection for that. The key areas to getting that appetite back are to de-risk it, provide the guarantees and, as Mr. Rushe said, ensure the replanting obligation is a carrot rather than a stick. Most people, when they get to clear-fell stage, will see the benefit of it but it is acting as a huge barrier.

With regard to broadleaf and the question of planting a hectare or small areas, I think there is an interest among farmers. However, I think it is very much landscaping and I do not see it applying to large areas. As Mr. Rushe said, there is a huge interest over time to plant areas, such as areas in a field that would be ideal and small areas around the farm. There is an interest and there will be a take-up of that, even without the conifer species. However, that does not address what the previous witnesses said, namely, it is not a forest industry. It is landscape and biodiversity planting, and that is an element within it and something important that needs to be encouraged, but it is not what a forest industry is built on. That is the big issue we have. The areas that are being planted are continually getting smaller and smaller, and we are moving away from commercial forestry into areas where farmers would find it very difficult to thin and to manage in the future because they would find it difficult to get people to come in and manage it.

On wider agroforestry, there is a huge push from the European level on this. It is a new system. I think the replanting obligation needs to be removed. We cannot have that replanting obligation with agroforestry.

With regard to ash dieback, like the committee, we have heard there is going to be some change within the scheme and it was mooted at our meeting this morning with the Minister that it is being looked at. As to the urgency this issue is being shown, it is being pushed back now as the Department deals with the forestry programme and it was pushed back while it was dealing with the licences. This is a thorn in the side and it needs to be addressed.

We will have to suspend shortly as there is a vote in the Dáil Chamber. If Senator Daly wishes to get the answers to his questions now, he can take the Chair and suspend the meeting when the witnesses respond.

Senator Paul Daly took the Chair.

I am sorry about this but the witnesses will understand the situation. I had one more question to ask if I had the time, so I got a lucky break with the Dáil vote. My question concerns the carbon credit issue and who is going to own the carbon. Where is the IFA on all of that? Who will own the carbon credits if the farmer buys in and confidence is restored? That is the next debate coming down the line. Where is the IFA on all of that and where do the witnesses think it might go? There is a belief that part of the reason corporates are coming in is that they think this will be an asset and they will be able to carbon trade down the line. The witnesses can answer those questions when we come back. I must suspend the meeting.

Sitting suspended at 7.50 p.m. and resumed at 8.26 p.m.
Deputy Jackie Cahill took the Chair.

Can I have replies to the questions I asked just before we were suspended, please?

Mr. Jason Fleming

We are all here trying to bring a bit of confidence back into the sector. We are trying to get farmers planting, which is the bottom line. As we stated, the Minister and the Department should support farmers planting. Where is this €1.3 billion for farmers? There is not much point in having €1.3 billion in a fund if we cannot access it. The Minister said to plant the right tree in the right place. At the moment there is no tree going any place, and that is the bottom line. As we all know, this matter has not even been sent to Europe yet and it could take between two and eight months for it to come back. If one goes by the Department’s dashboards, no tree has been set in this country in the past three weeks.

I wish to cover some of the question on ash dieback that the Senator asked. I am aware that Ms O’Sullivan covered it earlier. The reconstitution and underplanting scheme, RUS, has been in place since 2020 but it is not fit for purpose. It is not even covering the ground work when it comes to the digging and replanting. Farmers need a 20-year premium on top of the RUS for the replanting. It is as simple as that.

I want to cover the roadside trees affected by the ash dieback and we have a member of the committee who is on a main road but it costs between €700 and €1,000 to take down one ash dieback tree.

Is that is a cost per tree?

Mr. Jason Fleming

Yes. That is because the tree is unstable and the tree needs to be taken down piece by piece. Either side of the road has to be blocked. A qualified tree surgeon needs to do that. Members can imagine the costs there are nine or ten of those trees along the side of the road. What they, we, and what the committee is saying is that this should be covered by the county councils. They are passing it over that these trees are the responsibility of the farmers but ash dieback is not a farmer’s responsibility. It is one for the Department and it should be doing something about that. We highlighted that this morning with the Minister.

There is money within the system. Some €35 million went back to the Exchequer from the forestry section in 2021. Something similar happened in 2020 and, in 2022, I presume something along the same lines happened. We are talking about the bones of €80 million to €90 million that could be spent on compensation for ash dieback farmers to deal with the issue of the roadside trees, and so on.

On the carbon credits, we as farmers should be recognised for the credits we produce. This is a big thing going forward, as we all know, but we, as farmers, are not recognised for the credits we produce between grassland, hedgerows and forestry. I am a suckler farmer. I cannot offset, which is happening all over the country. my suckler farming against the credits I produce on my farm due to the simple fact that forestry is coming under the land use, land-use change and forestry, LULUCF, sector and the sooner that forestry is recognised and comes under the umbrella of agriculture, the better for us on the ground, in the way that we can draw down these credits, and so on.

I forgot to mention Gresham House. Gresham House came to Scotland. This was mentioned earlier. From what I have heard, it bought every available acre that was for sale in Scotland. It went in under the same pretence under which it came into this country, where it is now buying 12,000 ha or whatever.

As for the land type being planted, as was stated earlier, the days of planting on peat soils, bogs, heather ground, in special protection areas and on hen harrier land are gone. Farmers are clear-felling some of those sites, and the Department is taking this on a case-by-case basis as to whether they will have to fulfil the replanting obligation. The Department knows exactly what type of soil it is dealing with in these areas and should not go on a case-by-case basis. We may have to go to the planner, which then costs money, adding additional cost for farmers. With, say, heather ground, carbon and so on come into play. That should be dealt with as well.

Every euro we are given as farmers on the ground for planting and the promotion of planting will be spent in the local shop or the local hardware store and will keep the local schools open. If these smallholdings are sold to investment funds and the lights go out, they will never go back on again. We have to keep rural Ireland open. It is as simple as that. If the likes of Gresham House are not stopped at the 12,000 ha mark, it will decimate rural Ireland. That is if the deal is done, and who is to say it will not be? It comes back to football teams, and even local banks. Some banks are operating on a cashless basis at the moment. Trying to speak to someone in your local branch is impossible. The banks want to push customers over to machines and so on. As I said, when I was a young fella, there were three or four shops in my area. There is only one shop now. We have been trying to keep those shops open.

I warmly welcome the witnesses and thank them for coming. The one thing I would like to highlight and take from their presentation - and I have listened very closely to every word they have said - is the fact that they are re-enforcing what we knew already but what we needed them to come here to say, that is, the total lack of confidence they have in the Minister of State and the current Administration in how they have handled forestry affairs over recent years. It is like being in a different world when you listen to the Minister of State any of her officials or people from the Department and when you listen to the witnesses. The witnesses are speaking the language we hear from the people who are important, namely, the stakeholders, the farmers, the landowners and the forestry owners - those who know what they are talking about. They do not have confidence in the Department, and saying that gives me no satisfaction. I would love to be able to say that our Minister of State is a credit to forestry. I would love to be able to say that the senior officials in the Department are doing great work. I would love to be able to say that but I cannot do so because I would be telling a lie and it would be wrong to give that impression.

As I have said previously, since 1946 there has not been as little confidence in the forestry sector in Ireland as there is today. Again, I am not happy to say that. I am a positive person. I would rather be praising people than condemning their work but, unfortunately, they have done nothing for confidence in forestry. They have done nothing for existing foresters. There are as many flaws with the package that was rolled out recently as what is good with it. This is how you judge anything: you stick your finger in something and lick it to see whether or not it tastes nice. If forestry were as good as the Minister of State tries to say at the moment, or if the confidence were there, we would see farmers planting, but they are not. If farmers who have marginal ground now wonder what they will do with it and whether forestry is a good investment for them, the answer they will give is that it is not.

I would like to think that I know what I am talking about. Twenty-five years ago I planted 86 acres of forestry. Before that, I started out with a horse drawing out timber for Grainger Sawmills. I progressed to a double-barrel winch behind a four-wheel-drive tractor, so I would like to think I have come to know a thing or two about forestry over the years. I have never seen it as bad as it is now. People are simply not interested in sodding or planting a piece of ground any more when they see how difficult it has been for people to get thinning licences or permission for a road. There is also the quagmire of the hold-up that was and is there. People are saying the Government is not really serious about this. It is amazing. The one time we have a Green Party member in charge of forestry, you would think there might be a passing interest in it, but, unfortunately, there is not. There is no interest whatsoever in it.

Then there is the issue of carbon credits. It is beyond belief to talk about carbon emissions when landowners saw fit many years ago to plant their land, remove it from being actively farmed and say, "We will trust this whole system and plant trees." Surely to God, now, when carbon is an issue, and if there are carbon credits, that should be of tangible value to the person who had the guts and the gumption to plant their land and it should be a tradeable commodity. They could be allowed to trade it with a factory, for instance, or somebody who was deemed to have carbon emissions such that a trade could be done and it would be a valuable asset. That would certainly make forestry attractive again. It would help with the value of timber and the value of forest and would be a good thing for people but, again, there are no meaningful efforts being made in that regard.

I thank all the witnesses for being here, in particular Mr. Fleming for the work he has done in his role over recent years. You can always judge an individual by whether he or she is really committed to the person on the ground. I know that all the witnesses are, but I know Mr. Fleming personally and he certainly is interested in the farmers and promoting forestry and promoting people planting ground. He wanted to be positive about it in every way he could and he always did that, and I acknowledge that.

We have an awful job of work to do. I do not like talking about problems all the time without talking about solutions. I would like to see a vibrant forestry sector. I would like to see a proper price for timber. I would like to see it being easily accessible for people to change over from the stage of thinning or clear-felling a forest and selling that timber to the mill, wherever their nearest local mill is, and putting it out into the market. We have seen an awful thing happening in that regard for a number of years whereby the price of timber just went through the roof. That adversely affected other very important people to all of us, that is, the young couples and the people who want a home. When it comes to the price of the raw material and the amount of timber that goes into any house, if the price of that has gone up and up, we certainly want to see the price normalised at the same time, but that can be done while still having a good price for the farmer. It was not the farmer who was getting the enormous price for it; it was that the price had gone up.

I do not want to eat into the time. I want to allow time for the witnesses to respond. I thank them again for being here. I appreciate the efforts they make in coming before an meeting like this and in giving evidence. I thank them again for that. I also thank the Chairman for the sound way in which he always conducts these meetings.

Mr. Jason Fleming

I thank the Deputy for his comments. On land type, the demand for land out there now is frightening from all sectors. We are all going to the same pool for the type of land they are looking for now. I do not know if the Deputy was here a while ago when I spoke about the type of land being planted and the type of land not being planted. As he said, 20 or 30 years ago we were able to plant on every type of ground. Those days are gone.

The Minister for the Environment, Climate and Communications, Deputy Eamon Ryan, was down our way, as the Deputy knows, visiting small farms.

He was promoting forestry and small farmers and he said he was going to look after this cohort of farmers. Unfortunately, when he came back to Dublin he left us behind. As the Deputy said, when he passed the Red Cow and went into the Dáil, he forgot about us.

The bottom line is that if this was happening to any other sector, within or outside farming, we would be marching up and down outside. We are on our knees. The people here have to realise that. We are on our knees as the forestry sector. There is nothing happening. No tree was planted in this country in the last three weeks. That is some statement. We are looking for the committee's help to get a few things over the line. We are not looking for a whole pile. We are looking for a few things to bring confidence back into the sector. It takes something like four months to get our licences after we apply for them. That is in the departmental guidelines. We spoke about ash dieback. We need to fix the loophole whereby taxpayers' money is going into investment funds inside or outside the country. The Minister, Deputy Eamon Ryan, was on the radio a couple of weeks ago saying he was looking for a facility whereby Coillte could draw down the premiums. We are not supporting that either. The Government needs to ring-fence this money for farmers and support farmers who plant trees. We will plant. We met these targets before and we will meet them again if we are supported properly.

There is a big problem on the ground with some farmers who worry whether they will be allowed to cut down their trees 30 years or 100 years from now, particularly if they are native woodland trees. We are also hearing that on the ground. You have to look at that too. Will we be allowed to cut them down, because the goalposts are changing on a monthly basis? We do not know what is going to happen 30, 40, 50 or 60 years from now.

What do I have to say about the Minister of State, Senator Hackett? She has to step up to the mark here. As the Minister of State with responsibility for forestry, she is the captain of our ship. She has to lead us out of this mess because the ship is sinking.

Most of what I was going to ask has been answered at this stage. We heard from the last speaker another example of the frustration among stakeholders in the sector when they talk about the two Ministers. I am not going to blame any one of them. Both of them are responsible here. Every time we have a meeting about forestry, that frustration comes across from everybody. There is frustration in the committee that we have to keep coming back and listening to the same thing over and over again.

I totally agree with Mr. Fleming. We run a massive risk of hurting rural Ireland if something is not done fast, and particularly if we keep letting Gresham House and vulture funds come in here as happened in this case. As Mr. Fleming said, with your local forester or small farmer, all the money will be spent locally in our own areas. Gresham House will not care less about any rural area or small town in Ireland. That money is for its investors and - let us be honest - their job is to make money for their investors or shareholders. We need to stop any further entities like Gresham House from coming in. Mr. Fleming may not be able to answer this but in his experience, how long would it take to finalise deals such as the Coillte-Gresham House deal? I asked about this earlier today. Is it feasible that the Department did not know anything about that deal until the end of 2022?

Mr. Jason Fleming

What we are hearing is that the Minister of State knew and that it was discussed at a meeting a year back from January. The Minister of State, Senator Hackett, knew about this for the year. That is what we are hearing. It is hard to believe that the Government and the main shareholders in Coillte - I am thinking particularly of the Minister for Agriculture, Fisheries and Food, Deputy McConalogue, and the then Minister for Finance, Deputy Donohoe - did not know about it. It is not their preferred option, as the Minister, Deputy McConalogue, has said. He does not seem to know much about it, as such. If you talk to Coillte, it says that the Government asked it to make up the deficit when the farmers are not planting. I do not know what is at play here. This whole investment fund thing has to be looked at again. Whatever about the 12,000 ha in respect of which the deal is done, the remaining 88,000 ha that they are talking about has to be stopped.

Ms O'Sullivan wants to say something.

Ms Geraldine O'Sullivan

We have a new programme here. We need to start addressing the barriers and look at why are farmers not planting. One issue is land availability. Some years ago, a report identified 180,000 ha of land that was outside of environmental regulation as marginal land that was potentially suitable for forestry. We need to be looking at all these land types. We know there are things coming down the line - some were mentioned here, including the nature restoration law - but we need to actively look at suitable areas. When farmers in such areas want to plant, there should be a proactive application. As we said in our statement, we should develop a system that is farmer-focused, is about working with farmers to plant smaller areas and is fit for purpose. In other European countries, we have seen two different standards. Private forest owners have a different standard from state bodies or private investment companies, in recognition of their abilities to do it. There is a smaller application process and a much more streamlined system. We have advocated for something like that here for farmers. This is something that needs to be done. We are planting smaller areas, typically. It is on a holding. The system can be simplified and it can be streamlined. If we can do that; if we can provide the guarantees of the four months, as Mr. Fleming said; and if we can start derisking some of the issues, we will see farmers getting back in. That is where we need to focus. We must ensure the forestry programme money that is there is not going to investors but to farmers.

Why is the Department not giving those guarantees to the smallholders to improve things? Every time a group such as the IFA comes here to discuss this matter, nearly to a man and to a woman they tell us about the lack of clear communication between the sector and the Department. What is the blockage? Why is it happening on a regular basis? Why is it coming up? Nearly every second meeting at this stage is about forestry. It is just continuous.

Ms Geraldine O'Sullivan

A regulatory review was done as part of Project Woodland and was published. We were very unhappy. Everything was given that could not be done. It was something we had very much advocated. The review contained a proposal that there would be one licence, so that you would not have to apply for a licence for managing and for thinning. We recognise that clearfell is a massive change and that there was a requirement there, but we thought that for normal, standard management thinning practices you would not require a licence. It would help for there to be timely management. This was not recommended in the report but underneath in the regulatory analysis, it listed all the examples of countries where this is going on where there are smaller areas where you are allowed to do it. As long as you give notice, you are guaranteed that you can do it. There is an unwillingness there but we see it happening in other countries. We undertook a survey of other European countries and saw the difference between how private forest owners and larger operators are treated. That is because of the scale, the type of operation and the capacity to deal with that environmental regulation. It can be done but unfortunately even in the latest Philip Lee regulatory review it was not a recommendation.

On ash dieback, the Limerick and Tipperary Woodland Owners have raised infected roadside trees with me on a few occasions. They have spoken of the significant costs associated with removing the trees infected with ash dieback. For the record and for the information of anyone watching, what level of responsibility is on land owners to do this by themselves? What is the financial outlay? What kind of cost is involved in removing those kinds of infected trees from the roadside? What kind of process is involved in organising that?

Just a quick answer because we covered that already.

Mr. Jason Fleming

We covered it already.

Mr. Jason Fleming

You are talking about between €600 and €1,000. It all depends on what kind of road you are on, be it a rural road or a main road.

We need proper individuals to take down these trees because they are unstable. The roads need to be blocked on either side. It costs a significant amount of money.

When we apply for a licence, it should be the same as applying for planning permission for a house. There should be one licence and one licence only. Get that straight through the clear felling. When a person approaches a local county council, which would be Kerry County Council in my case, to apply for planning permission for a house, that person does not have to go back two years to look for permission for a septic tank or go back three years to seek permission to put in a wall, hedge or lawn. That is not the case. We are dealing with forestry and it is very simple: we need one licence. I know of situations where farmers were left waiting for four years to manage their crops. It was too late when they received their licences. Crop management usually takes 15, 16 or 17 years. Farmers being farmers, and I am one myself, we apply when we need a licence and not three or four years in advance. When we got the licences, it was too late to tend the sites. That was a massive problem in the past and will be, going forward. We have seen the figures. It took 18 months in 2022 for a forestry licence to go through.

The Minister set up Project Woodland, which I am involved in on the behalf of the forestry committee. To call it frustrating would be an understatement. We were rehashing the same stuff. It was a bit like what previous speakers have said has happened. We were rehashing the same stuff. It was a fair kick in the teeth for us as farmers and for the committee that discussions with investment funds were going on behind the scenes in a different room while we were doing our best to get stuff over the line with Project Woodland. The biggest problem with Project Woodland was that there were four different groups and there was no communication between them. I was in working group 1, which dealt with licensing, and there were three other groups. There was not a lot of communication between those groups. As a committee, we are not in a space to sign off on Project Woodland at the moment. There is a lot of work for Project Woodland to do yet. I do not think it should be finishing the way it is.

Have we any idea of the level of sales lost due to the ash dieback? How much has been lost to the sector itself? If 100% reconstitution was granted, in an ideal world, what new planting arrangements would have to be rolled out?

Mr. Jason Fleming

As I said, 26,000 ha have been affected by ash dieback. The farmers affected should get a 20-year premium, as I said. It is mainly firewood that is being cut down. I forgot to say earlier there has been talk about broadleaves in general, and Sitka spruce, but with the way planning permission is going for houses now, we will not be able to burn these trees in 30 or 40 years' time. There is no outlet for the broadleaf trees. We have no outlet.

I welcome our guests. They have made their case incredibly well and have answered a number of the obvious questions. We have been talking about a crisis in forestry for a number of years, certainly in my time in national politics. We have called it an emergency more recently. I do not know what word we are supposed to use when we have gone beyond an emergency. The situation we are in today is incredibly concerning. If the dashboard we have received is correct, then far from the 1,000 ha of planting the Minister claimed on 8 February had taken place in January, the correct figure is closer to 66 ha. That would suggest the Minister is entirely wrong in his belief that 7,000 ha of licensed land is going to come on stream incredibly quickly because of the new forestry programme. The rates are fairly similar to what they were last year. We are now in a situation whereby no new afforestation applications can be submitted. If we were to take into consideration the form of the Department in recent times, I would be afraid it will make an absolute hames of this application when it submits it to the European Commission. We could be waiting far longer than the two months that have been suggested. We could go through the entirety of 2023 with virtually no planting taking place. That would have serious repercussions because, as was mentioned by our previous guests, our climate action plans are working under the assumption we have been planting 8,000 ha for the past three years, never mind what we do this year. Within the next couple of years, the people who are responsible for the failures in forestry will be pointing fingers at everybody else, particularly members of our guests' organisations and other farm organisations. We are in a position where farming organisations are coming before us and telling us they want to plant trees and to be part of the solution to the afforestation crisis, emergency, or whatever new word we can come up with to describe the situation. The Department, the Minister and the Government are failing miserably. The only tangible thing that has been done in respect of afforestation in recent months is the Gresham House deal that Coillte did with the absolute knowledge of Ministers and which has led to further disengagement of communities of farmers and the entire sector from afforestation.

Our guests have recounted the frustrations and negative experiences of their members in respect of afforestation. If we were starting with a blank page, what things would need to happen immediately in order for us to return to the situation that pertained in the early 2000s, whereby farmers were meeting our afforestation targets? They were even exceeding our current afforestation targets.

Mr. Jason Fleming

I will answer the first part of the Deputy's question and will then pass to Ms O'Sullivan. I will rehash the same stuff. There are guidelines of four months for a licence. I do not want to be saying the same thing over and over again, but the reality is, if we were able to get licences out within four months, it would be a massive bonus for us on the ground. If they are not out within four months, there should be engagement with the Department to find out why they are not out within that timeframe.

We need to sort out the legacies of the past, as has been mentioned a few times. Ash dieback has been mentioned a few times. That has to be sorted out. We need to fix the loophole whereby taxpayers' money is being put into investment funds. Some of the money is leaving the country. Bear in mind that the UK is not even in the EU anymore. We are looking for a carbon credit payment, as has been mentioned. We hope, going forward, we will get that.

Certification is also a big issue. The committee heard previously from representatives of the mills. At the moment, 70% of the timber going into the mills is certified and 30% is not. Farmer are responsible for the 30% and most of the remainder is from Coillte. That ratio will be 50:50, going forward. We, as farmers, are looking for the Government to roll out a national certification for farmers on the ground in order that we can have a level playing field that means all timber prices will be the same. When the mills reach the 30% of uncertified timber, the price drops. That is a big issue for us that I forgot to mention earlier. The representatives of the mills covered that point, which is vital for us, going forward. That is the bottom line. Perhaps Ms O'Sullivan would respond to the rest of the Deputy's questions.

Ms Geraldine O'Sullivan

I thank the Deputy for his questions. He made the point that farmers want to plant. We know from global forecasts that there is going to be a significant shortfall in softwood. There is demand for the product. As has been said, we have ideal conditions in this country for growing timber. We have seen that, where it has been done well, it has been very profitable for the families and farmers who have planted. It will provide an opportunity within a generation. We can create a forestry culture and a generation will be able to benefit from the planting of the preceding generation. It is a green product that is in demand. We see the positives. It is a carbon sink.

At the moment, though, it is too risky. Policies, including environmental policy, are evolving, so we must ensure that the investment of farmers who go into forestry is protected, or if it is not, that they have an option to get out of forestry. It is important that there be guarantees. It is also important that if we are reducing the productive area and instead planting areas of broadleaves and biodiversity, which are a public good and a service, this is recognised better within the scheme and there is a payment for it. If society wants 35% of areas to be set aside, it should not be the farmer who has to pay for that. There needs to be a link with the commercial value, given how large of an area it is within the plantation. This matter needs to be addressed within the blank page, as the Deputy said, to make it an opportunity that farmers will get into again.

I must go to the Chamber. We will be meeting Coillte next week, which will be an important discussion. I suggest that we invite our two ministerial colleagues back as soon as feasible. It is not that I have any confidence in any response we might receive, but either through naivety or incompetence within the Department, they believe that they overcame a storm in January in the form of the Coillte-Gresham House deal. Not much good came of that entire debacle, but the one good thing that did was that it shone a spotlight on forestry policy and the disaster that the Minister and Minister of State are overseeing, so much so that it appears that the only people who have confidence in Irish forestry and afforestation are British venture funds. Even there, the vast majority of the land they are purchasing is land that has already been planted and, therefore, there is no environmental benefit to the purchases.

On behalf of all members of this committee, I assure our witnesses that we will not let this issue drop. I encourage other committees to do likewise, in particular the Joint Committee on Environment and Climate Action. Everything that committee is discussing is going up in smoke because of the Government's failures in this regard.

This committee has devoted a great deal of time to forestry in recent years, and rightly so. The sector badly needed a spotlight to be shone on it. Praising oneself is often not good, but this committee can take some satisfaction from the fact that we have thrown media attention onto forestry and forestry policy. Coillte's appearance before us before Christmas was on the day the Gresham House deal was exposed.

Mr. Brian Rushe

I am constantly speaking to farmers about forestry. The frustrations in the industry are clear and have been put forward well. We have appeared before this committee time and again highlighting farmers' frustrations. We need to remind ourselves about the situation. Our farming sector is under severe pressure due to some of the targets that have been set for it by the climate action legislation. Farmers have not been hiding from that. They have engaged with research and examined ways of improving their farming and environmental sustainability. Forestry can be a significant part of the solution, not only for the environment, but also for helping farmers to diversify and strengthen their incomes. As Ms O'Sullivan and Mr. Fleming rightly stated, though, it is no longer seen as a safe investment. It is now a risky long-term investment and a bureaucratic nightmare. One of the main things that the Gresham House deal did was to disillusion the farming community more about forestry.

To borrow a line used by, I believe, Mr. Pat Glennon, the time for talking is done. I thank the committee for its work in highlighting this issue, but the forestry service – it needs to become a service – needs to start getting trees in the ground and to start supporting farmers better.

I thank Mr. Rushe.

The joint committee will next meet on Wednesday, 1 March at 5.30 p.m. when our agenda will be forestry policy and strategy, resumed, and we will engage with Coillte.

The joint committee adjourned at 9.05 p.m. until 5.30 p.m. on Wednesday, 1 March 2023.
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