Tom Sheahan (Kerry South, Fine Gael)

I wish to share time with Deputy Creed.

Is the 8% reduction in forestry premia announced in the supplementary budget last month legal? More than 20,000 people are employed in forestry and 16,500 farmers have invested in forestry. Forestry premia and forestry-related activity such as road building and planting cost the Exchequer a total €122 million annually and the 8% reduction will cost farmers in excess of €7.5 million. For that reason other farmers do not have the necessary security or confidence required to get involved in planting. Farmers are worried that there will be another 8% cut in November or in April 2010. Farmers have come to me who wish to invest in forestry but they have lost confidence and are shying away from it. Will the Minister of State outline his ongoing plan for forestry that will give confidence to farmers and demonstrate that the Government is dedicated to the sector?

I have some suggestions on where one might claw back the sum of €8 million. If we were to suspend the roads programme for one year, that would result in savings of €4 million that could be used for the forestry programme. Planting tenders have dropped by between 10% and 15% but Coillte, Green Belt and other companies are not passing on the benefit of the cut to the man who is planting the trees. A cut in the planting grant by 10% would yield a sizeable sum. Will the Minister of State outline a plan for the future for forestry to show that the Government is dedicated to the sector and support the farmers who wish to develop forestry? I suggest that, when forestry premium payments finish, perhaps in year 21 one could pay the 8% to farmers.

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