Mary Wallace (Meath East, Fianna Fail)

I am fully aware of the opportunities presented by the emerging wood energy sector. Wood biomass is one of the most versatile of renewable energy sources and has the potential to play a major role in the supply of Ireland's energy in future. Solid biomass, mainly wood, is already the largest source of renewable energy in Ireland, accounting for 57% of Ireland's total renewable energy consumption in 2004.

A new capital grant scheme to support emerging enterprises in the wood chip supply sector was launched by our Department last year. Under the wood biomass harvesting machinery grant scheme, funding of €500,000 has already been approved to support the purchase of self-contained and self-propelled whole tree chippers. A second phase of this scheme was launched in late 2007, making an additional €600,000 in grant aid available. The additional wood energy harvesting capacity created by this support measure will have a significant impact in assisting developing enterprises in the wood chip supply sector.

Our Department is also supporting a number of pilot projects, such as producer group support, aimed at making more thinnings available to the local energy markets. Our Department also offers a comprehensive package of incentives and supports which promote farmer participation in forestry. Some €126 million will be expended by my Department specifically in the forestry sector this year.

The afforestation premium and grant scheme, for example, combines 100% grants for planting and attractive premiums of up to €574 per hectare payable for 20 years for farmers. Only last week my Department paid out over €52 million in the annual forestry premium payment to more than 10,000 forest owners, most of whom are farmers.

Under the forestry environment protection scheme, FEPS, a landowner will receive a FEPS premium of up to €200 for each hectare of woodland planted. The FEPS premium is payable for five years in addition to the existing afforestation scheme grants and premium available. Farmers can plant up to 50% of their land and still draw down the full single payment, as well as the forestry premium. Financial support is also available for the growing forest in the form of grants for forest roads to facilitate access and management operations, for shaping and pruning operations, and for reconstitution in certain circumstances.

Additional information not given on the floor of the House.

My Department engages in significant promotion of forestry to encourage farmer participation. Among the range of promotional activities supported are the joint national promotion campaign with IFIC and the RDS awards, which promote good forestry management. We also support a number of other projects which contribute to the sustainable development of forestry.

My Department, working in co-operation with COFORD, the National Council for Forest Research and Development, and Teagasc actively encourages the development of the wood-energy sector through a range of support measures aimed at creating an effective and efficient supply chain from the landowner-producer to the end user. Since 2006, COFORD has been managing the ForestEnergy programme. The programme includes a series of nationwide forest thinning and chipping demonstrations, workshops and trials aimed at those wishing to become involved in the wood biomass supply chain.

Funding is also provided to Teagasc, which plays an important role in the development of forestry through promotion, training and advice. Forestry advisers at Teagasc offices run a number of training courses, information evenings and field days and provide free and independent advice on all aspects of forestry to farmers.

My Department is working closely with other State agencies such as SEI and Enterprise Ireland in support of developing an increased biomass percentage of energy supply in Ireland.

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