I propose to take Questions Nos. 282 and 292 together.
The Deputy will be aware that Forestry in Ireland has undergone several significant changes in focus in recent decades and that the Shared National Vision for Forests and Trees launched by my Department early last year is built on the principle of the right trees in the right places for the right reasons with the right management. The Forest Strategy anticipates that by 2050 Ireland's forests will be a cornerstone in an inclusive and sustainable rural economy while assisting in achieving climate and biodiversity goals as well as being a major contributor to people’s health and well-being. The Forestry Programme 2023-2027 is an important first element in implementing this vision and strategy after extensive public consultation and stakeholder engagement.
It was within this framework that my Department commissioned an economic analysis which included an examination of the Internal Rate of Return (IRR) and Net present Value (NPV) for farmers and non-farmers under the proposed programme in addition to a cost benefit analysis of the Afforestation and Roads measures of the proposed new programme.
CBA is an analytical tool used in the appraisal of major capital projects, providing decision makers with important information and insights in considering investment options and the commissioned economic analysis was considered in securing the €1.3 billion funding for our ambitious forestry programme. The CBA will also be submitted to the EU Commission as part of Ireland's formal state aid application in respect of the new Forestry Programme.
The Deputy will appreciate that CBA is not all-embracing as not all costs or benefits can be quantified or monetised and economic analysis of forestry presents particular challenges, not least due to the very long-term nature of the investment. This type of economic analysis of forestry has, however, advanced considerably in the last two decades.
• Water quality and regulation
• Recreation and leisure
• Landscape
• Biodiversity
• Cultural heritage
• Reduced agricultural emissions by displacement
• Employment.
The analysis had regard to significant non-monetary elements including positive and negative externalities and a comparison of proposed forestry measures with the opportunity costs of other farm enterprise types including displacement of agricultural activity.
The protection of water forms a key component of my Departments assessment of all applications for forestry licences and grants. My Department takes a preventative approach and have been very mindful of this in designing the new forest strategy and programme for 2023-2027. Likewise in designing the new programme my Department has ensured that peat soils and land formally designated as unenclosed will no longer be eligible for forestry. The general thrust of the new programme is towards planting on mineral soils.
The overall objective of the new Forestry Programme 2023-2027 is to provide support for Sustainable Forest Management with the potential to deliver ecosystem services and environmental and climate benefits with the underpinning principle for the intervention being “the right trees, in the right places, for the right reasons and with the right management” in order to ensure effective targeting of SFM measure to deliver biodiversity and climate action benefits.
