I thank the committee for affording the Department this opportunity to discuss the value for money review of the forest road scheme. I understand that a copy of the review has been circulated to Deputies.
This value for money review was undertaken under the Government's value for money and policy review initiative which was introduced to ensure improved value for money from public expenditure. The review is a detailed analysis of the public expenditure involved in the forest roads scheme.
The review is confined to the 2004-07 period and examines the efficiency and effectiveness of the scheme. The forest service was integrated into the Department of Agriculture, Fisheries and Food from the then Department of Communications, Marine and Natural Resources in January 2004.
The forest road scheme has a number of objectives reflecting the multi-functional nature of forestry itself. It provides access to the forest for general management, maintenance and timber extraction. While there is little doubt that its primary purpose is to facilitate timber extraction, the forest road has other benefits such as biodiversity enhancement through increased open spaces and, in certain circumstances, the provision of access to the public for the many and varied recreational uses of forests. Forest roads also act as fire breaks and provide access for firefighters in the event of forest fires. As forest plantations mature, a good road structure is important for the proper management of the forest having regard to its varied uses.
The forest road scheme grant is cost-based and payment will cover 80% of eligible costs, subject to a maximum of €45 per linear metre. Total expenditure on the forest road scheme in the review period was approximately €18 million.
The review was completed inhouse and overseen by a steering committee representative of the forestry division, the Department's economic and planning division and the Department of Finance. Its terms of reference, as agreed with the Department of Finance, are set out at page 8 of the review document. The aim of the review was essentially to provide an answer to the question of whether the forest road scheme provides value for money. The terms of reference addressed the key evaluation criteria of rationale, efficiency, effectiveness, impact and continued relevance.
The methodology for completion of the review included interviews with relevant staff in the forestry division, postal surveys of grant recipients and industry stakeholders, as well as consultation with the forestry liaison group. This is a group representative of the Department and the forest industry, including growers, nurseries, contractors and consultants.
The review concluded the following: the objectives of the scheme are compatible with EU and national policy; the scheme's outcomes reflect the growing awareness of the importance of forest roads in the overall forestry programme; the objectives of the scheme are being effectively met by the scheme itself; the administration of the scheme was operated efficiently and effectively during the review period, although some improvements can be made with the introduction of the specified recommendations; and the scheme justifies the allocation of public funding going forward, with some adjustment to the administration and operation of the scheme, particularly given the current economic climate.
The review includes a number of recommendations that the steering committee considers would further improve the scheme. The key recommendations can be summarised as follows: that the Department explicitly identify the objectives of the scheme in all future scheme documentation; that the forest service ensure the farmers' charter minimum processing standard is met from existing resources; that the forest service introduce an appropriate risk-based selection inspection regime; that the forest service consider amending eligibility criteria, given the importance of thinnings; and that the forest service introduce the performance indicators outlined which should be continually reviewed and updated. We have already implemented a number of these changes and will be striving to ensure future schemes will have regard to these positive recommendations.
I thank the Chairman and members for allowing us time to discuss the review. My colleagues and I will be happy to answer any questions members may have.