Mr. John Neenan:

On behalf of GMI, the representative group for most of the horticultural peat and growing media producers in Ireland and the wider horticultural sector, I thank the Chair and the members of the committee for the invitation to speak. On behalf of the horticultural sector, I express our gratitude to the committee for the interest it has taken in this issue and for again giving us the opportunity to discuss the ongoing crisis in the horticultural sector due to restrictions on horticultural peat harvesting. The proactive attitude of this committee is in stark contrast to that of the three Departments with responsibility for horticulture and peatlands, namely, the Departments of Agriculture, Food and the Marine, the Environment, Climate and Communications and Housing, Local Government and Heritage. The attention this committee gave this issue during three meetings last year was a game-changer. It prompted the Government's response, the flurry of ministerial announcements between September 2021 and January 2022, media coverage of the importation of horticultural peat into Ireland and the publication of a Seanad Bill by Senators Doherty and Gallagher. Since January, however, the Government has been inactive on this issue, despite the risks posed to the environment, the economy and employment.

The background to this matter is well known. Following a court ruling in September 2019, harvesting of horticultural peat from bogs larger than 30 ha required a complex, multistage licensing and planning regime, unlike the single-stage systems in other EU states. As a result, horticultural peat harvesting has all but ceased and Irish peat supplies are all but exhausted. Despite significant research into alternatives, by GMI members and others, none can replace horticultural peat in appropriate quality, quantity or cost. This has left the industry with only one solution, namely, to import peat. The programme for Government commits to expanding, supporting and growing the horticultural sector, but this is impossible without first addressing the horticultural peat crisis.

When we were last here, we warned that Ireland would be reliant on imported peat of inferior quality, uncertain supply and negative environmental consequences if action was not taken. This has been realised and horticultural growers now depend on imported peat. Several large shipments of peat for horticulture have been imported from the Baltic states over the past year. The Russian invasion of Ukraine has made this already vulnerable supply of peat even more unstable. All shipments from Russia and Belarus have ceased and shipping costs from the Baltic states have increased by up to 300%. These additional costs have now been passed on to growers and, in turn, to consumers, which is adding to the food inflation the public is experiencing.

Turning to the impact of this situation, the crisis in the horticultural peat sector has impacted the environment, employment and the economy. Environmentally, importing peat has resulted in higher carbon emissions. Each shipment requires 200 trucks to load a vessel that then travels up to 3,000 km by sea before discharging its cargo into another 200 trucks to bring the peat to its destination. The emissions generated from harvesting horticultural peat domestically are small in comparison. Of Ireland's greenhouse gas emissions, only 0.15% are emitted from horticultural peat. The horticultural industry in Ireland employs over 17,000 people, 6,600 directly and 11,000 indirectly. These jobs are increasingly at risk and such job losses will significantly affect the livelihoods of those working in the sector. The industry had a farm gate value of €469 million in 2020, according to the Department. The increasing costs and uncertainty of supply will have devastating consequences, with businesses being forced to leave Ireland.

During a meeting with this committee in March, Niamh Brennan, horticulture policy executive of the Irish Farmers Association, IFA, mentioned that there had been a significant reduction in the number of growers in the horticultural sector and that it was threatened with losing its core mass. There will be no point then in debating policies on how to expand the sector. GMI is disappointed that Government action has been reactive. Despite promises of reform, not a single operator has managed to get planning permission or a licence since 2019, while the clear recommendations in the reports produced have been ignored. Our group was a member of the working group on the use of peat moss in the horticultural industry, chaired by Dr. Munoo Prasad. The working group comprised representatives from the relevant Departments, State agencies, environmental NGOs and the horticultural sector. It made several recommendations, including: phasing out horticultural peat by 2030, after a transition period; passing legislation to remove the dual consent licensing system; and introducing a single consent system, as is the case in other European countries. Despite its expert status, the recommendations of the working group's report have been ignored.

In January 2022, the three Departments with responsibility in this area, namely, the Departments of Agriculture, Food and the Marine, Housing, Local Government and Heritage and the Environment, Climate and Communications, published a working paper containing quotes by six Ministers that outlined a series of actions, including: a review of the current stocks of peat available; publication of advice on peat extraction for sub-30 ha bogs; and continued research into alternative growing media. Even these actions have failed to be delivered nine months later, leaving the industry without any Government guidance.

GMI has welcomed other Government actions when they have been announced, including KPMG’s report on the future of the horticultural industry, even if these were announced in response to this committee’s meetings, media coverage of horticultural peat importation or the publication of a Seanad Bill. We are, however, disappointed that the KPMG report was published the day before the Dáil's summer recess in July, because its recommendations were not what the Departments wanted to hear. KPMG recommended the urgent need to develop viable mechanisms to sustainably use domestic peat supplies in horticulture, especially in the context of geopolitical events. The Department, despite having commissioned this report, has taken no steps to act on this recommendation.

Regarding a solution to this situation, GMI has called for the three Departments to create a comprehensive, long-term strategy for the transition away from horticultural peat, with practical solutions that support the sector and acknowledge that a just transition is required. In line with the KPMG report, GMI is now calling on the Government, as an absolute priority, to develop viable mechanisms to sustainably use domestic peat supplies in the short-term. We recommend two steps be taken to ensure there will be a sufficient supply of Irish horticultural peat to the market. First, sub-30 ha peatlands must be treated as individual bogs and not be aggregated with other areas in the same ownership. This would allow county councils to grant section 5 exemptions. Second, where an already existing bog production site exceeds 30 ha, a sub-30 ha area should be permitted for harvesting horticultural peat, provided the remainder of the area is appropriately isolated and set aside for rehabilitation and restoration or another environmentally acceptable activity.

This approach would mean there would be no need for opening any new bogs. The areas to which I refer would be sufficient to supply the Irish horticultural market. This solution requires just an estimated 1,500 ha, less than 0.1% of Irish peatlands, to provide the Irish horticultural sector with the vital supplies it requires. This solution would also result in limited greenhouse gas emissions, only 0.15% of Ireland’s overall greenhouse gas emissions. The long-term result will be no large-scale horticultural peat harvesting in Ireland.

I again thank the Chair and the committee for the invitation to appear. The crisis in this horticultural sector has not gone away, and, without appropriate Government action, we will lose our indigenous Irish horticultural sector.