Mary Wallace (Meath, Fianna Fail)

We would like to see increases in grants and premiums. We have already announced an increase in the plantation grant which increased by 9% in 2005 and we received approval from the Department of Finance this year to increase the plantation grant by a further 14.7%. We submitted that proposal to the EU Commission for approval and are awaiting a final decision on it. A proposed increase in premium is currently being closely examined by the Department of Finance and such a proposal is part of the partnership talks.

Deputy Sargent was correct in saying it is important to be positive about the planting targets and to seek to have an increased planting target. One of the main items on our agenda is to encourage more farmers to engage in planting. That public planting by Coillte ceased as a result of the EU decision in the late 1990s has impacted on our planting targets. Nevertheless, there is an attractive package in forestry for farmers, as I outlined, be it the planting grants or the tax free premium over 20 years.

The Deputy was also correct in pointing to the energy aspect of forestry. The development of the production of wood chips and wood pellets, including the availability of SEI grants from the Department of Communications, Marine and Natural Resources, is important in encouraging people to switch over to using wood chip or wood pellets. Such development is also important to the forestry industry because following a tax-free premium over 20 years, farmers can gain additional income from thinnings from year 20 to year 40. Therefore, the more wood chip and wood pellet outlets we have, the better for the forestry industry. Such a development would provide a continual income from forestry for farmers engaged in it, in terms of tax-free premiums over 20 years and an income derived from the sale of forestry thinnings over the next 20 years. Under the single farm payment farmers can plant up to 50% of their land. Measures such as this are important and farmers can eventually gain further income from the sale of the timber. Farmers who have engaged in forestry production have spoken to me about the increased value in their assets. If farmers are elderly when they engage in forestry production, they know they are passing on a valuable asset to the next generation.

We also have an afforestation promotion campaign throughout the country through which we get the message across to farmers about the important energy aspect of forestry and about increasing the area planted. These two aspects are important and we will continue to promote them.

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