Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

There is total employment of 10,000 people and the sector makes a direct contribution of more than €1 billion to the economy, with its total economic value estimated at €2.3 billion. There are significant social and tourism-related benefits. Forestry has an influence on climate change and an important role to play in helping Ireland to achieve its international emissions reduction targets. It is expected that the cost of implementing this proposal will be low, at several hundred thousand euro instead of €1 million.

The industry reports that harvests are being split in order to ensure that people's incomes do not exceed the exemption limit. This is inefficient and influences behaviour in an unintended way while yielding no extra revenue to the State. The current tax treatment has a disproportionate disincentive effect that is working counter to all other Government efforts to promote forestry, with its economic, environmental and social benefits. Addressing this problem will send a strong and coherent policy signal of Government support for forestry.

The restriction will still apply to passive investors. It is only active foresters who will benefit from the change.