Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I want to speak on the wider point on confidence. There is no doubt that in recent years there have been real challenges. The Minister of State, the team and I have worked hard with regard to the licensing backlog. We have made massive progress on it. Undoubtedly it has affected confidence and we acknowledge that. It is why we put so many resources into working through it.

It is also important to acknowledge that in recent months we have launched the new forest strategy. This, and many of the measures in it, are a massive step forward with regard to the benefits for farmers compared with what was there before. Particularly for farm families, the premiums are now available tax-free for 20 years. There is a mix of interest from farmers in conifers and broadleaf trees. There is a role for both and there is good interest in both. If we take the rate in play for broadleaf trees, at approximately €1,134 per year for 20 years, it amounts to almost €23,000 per hectare tax-free over 20 years. That is a significant premium. The financial reward for forestry is very strong. As the Minister of State said, with the programme going from 15 years to 20 years, there will be an extra five years of premiums for farmers as well as the significant increase in payment rates.

Something else that will make a difference is another significant measure the Minister of State launched today, namely, that farmers will be able to plant broadleaf trees on 1 ha of their farm without needing a licence. There is the potential to plant up to 2 ha where there is a riparian zone and watercourses. The premiums are available over ten years at twice the rate. Farmers planting 1 ha of their land with broadleaf will not need a licence in approximately two thirds of the country. Over ten years, these farmers will receive almost €23,000 in premiums tax-free. They would also get the basic payment on it. Over ten years, that is just over €8,000 an acre tax-free. In most farms throughout the country we would find an acre or hectare that would be suitable for this. People will not need a licence to do it. It can make an impact and be integrated. If farmers do this, it would mean €2,200 a year for ten years.

That is the range of options. It will take time and we need rebuild confidence. The licensing backlog has been dealt with. It is open for business now. It is about promoting these opportunities.