Seán Sherlock (Cork East, Labour)

I accept the Minister of State's answer but there is potential to give a further premium purely on the basis there is room to have carbon off-setting, for want of a better expression. There is major scope for the private sector to become involved in forestry. As I understand it, to date there is less than 20% involvement of the private sector in forestry and it is an area of agribusiness that has even more potential.

I am not convinced the €7,604 per hectare payment, the maximum, is adequate given that one would have to operate on large economies of scale in order to get some sort of a decent return. Many smaller forestry owners do not currently have the economies of scale to be able to thin back forests to allow for greater potential. The cost of thinning and maintenance would eat into the premium.

We are trying to make a case, in essence, for more grant aid or financial incentives to be provided. Will the Minister of State consider that?

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