The Forestry Programme 2023-2027 is the most ambitious Programme to date, when compared to its predecessors. It offers new and revised schemes, which are reflected by the increased payment rates contained within this Programme. These increased rates are intended to incentivise the behavioural changes required, whilst also reflecting the new terms and conditions associated within these distinct schemes.
The previous Forestry Programme 2014-2020 (extended to 2022) was a standalone Programme, therefore the schemes contained within are subject to their own unique terms, conditions, and rates. It should also be noted that the Irish Forestry Programmes require State Aid approval from the European Commission to implement.
A key principle of State Aid approval is that this aid must have an "incentive effect" to remain compatible with the EU internal market. An incentive effect is present when the aid changes the behaviour of an undertaking such as additional activity contributing to the development of the sector, where it would not have taken place without such aid or where in its absence the activity would have transpired in a restricted or different manner. In addition, the State Aid must be considered proportionate and limited to the minimum amount of aid per beneficiary to realise this change.
The Department of Agriculture as the Granting Authority in this instance, must ensure that any State Aid provided does not subsidise the costs of an activity or undertaking that would have incurred in any instance and must not compensate for the normal business risk of an economic activity. Therefore, my Department, in line with State Aid rules considers that an increase in aid for an applicant under an existing contract, would be in breach of the incentive and proportionality conditions as required within the State Aid Guidelines.
