Tony Killeen (Clare, Fianna Fail)

Gabhaim buíochas leis an mbeirt Teachta as an t-ábhar tábhachtach seo a chur faoi bhráid na Dála. I am pleased to have an opportunity to highlight the Government's commitment to forestry and my future plans for it. In essence, they are for the continuance of support for the forestry programme. The continued funding of forestry is an appropriate use of national funding from the Government's viewpoint, given the income it delivers to the rural community, the raw material it provides for industry and energy uses, the jobs it continues to sustain and the essential contribution forestry makes to carbon sequestration in furtherance of the national climate change strategy.

Deputy Sheehan has referred to the recent decision to reduce forestry premia by 8%. This reduction was necessary in view of the unprecedented pressure on the public finances and the need to work within limited resources. I acknowledge that this will have a significant impact on the annual income of premium recipients. However, it should be noted that, notwithstanding the reduction, approximately €58 million was paid to forestry owners this week in the annual premium run. I am sure the House will agree that this is still a substantial amount of money to invest in the rural economy. This is not the full extent of the amount to be paid out in premia this year as payments will continue to be made during the year.

The decision to reduce the premium was balanced by the need to maintain the establishment grants scheme, the lifeblood of planting and employment in the forestry sector. The continuation of the 100% establishment grants, coupled with expenditure on support schemes, is evidence of the ongoing commitment of the Government to forestry and our plans to continue that support of the sector. Forestry planting is labour intensive and the continued 100% funding of the establishment grants seeks to ensure continued employment in the nursery, planting and maintenance elements of the forestry sector. It should also be appreciated that, despite the financial pressure on the Department, the total amount of funding being made available for forestry and bio-energy is still approximately €120 million, only marginally over 1% less than that provided in 2008.

The rationale for continuation of support for forestry is the extensive contribution it makes to the economy, society and the environment. Evidence of this is the employment of some 16,000 persons in the forestry sector. Allied to this is the figure released by COFORD that Irish forest product exports for 2007 were worth in excess of €333 million to the economy, an increase of more than 14% in value on the previous year. This contribution is the outcome of the Government's commitment to forestry to date, as well as the investment by all of the stakeholders in the industry, from the nursery right through to the processor. However, it is essential that support is continued to facilitate an ongoing supply of raw material to use the capacity that has been developed to date and sustain the viability of the sector. The Department is seeking to ensure continued confidence in the sector in order to maintain this contribution into the future. To this end, I met today the forestry liaison group which consists of representatives of the stakeholders in the forestry sector to discuss proposals for a number of policy actions to ensure continued confidence in the sector.

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