Seán Connick (Wexford, Fianna Fail)

I thank Deputy Doyle for raising this matter as it gives me the opportunity to address concerns about the future funding for forestry and to reiterate the Government's commitment to forestry in Ireland.

I am well aware of the national importance of investment in forestry. Since 2000, the State has invested €1.25 billion in forestry enabling the development of an industry that now plays a significant role in the export market to Britain. The investment in forestry represents a substantial share of the agricultural budget reflecting the Government's commitment to and recognition of this important indigenous industry. I have met with a number of representative bodies, all of which have briefed me on the issues and concerns in their sector of the industry.

The benefits of the Government's investment in forestry is not confined to industry. We have also enjoyed significant benefits in terms of the provision of a source of renewable energy, the essential contribution that forestry makes to carbon sequestration in furtherance of the national climate change strategy. Benefits have also been derived from income derived from tourism associated with the use of forestry recreational amenities.

The primary objective of the forestry programme is to increase the level of afforestation in Ireland, which is among the lowest in Europe, in order to continue to derive all of these benefits from the natural resource. The Government is committed to ensuring the continuation of the afforestation programme at a rate that maximises the use of available financial resources.

The renewed programme for Government commits to an increase in the annual planting of 10,000 hectares per annum. In order to make progress towards that objective, provision was made in 2010 for 7,000 hectares of new planting and I am glad to say that this target is on course to be met.

Forestry premiums, paid in recognition of the creation of a long-term asset which provides major benefits beyond its immediate hinterland, account for over €73 million this year. As the Deputy will appreciate, forestry premium payments are a substantial commitment being carried forward each year and account for a large proportion of the eventual allocation.

A review of State forestry policy, also provided for in the renewed programme for Government, is currently being undertaken, part of which is assessing the effectiveness of current forestry grant schemes. This review will make recommendations on how best to deliver supports in the future. While the afforestation programme is an important component of the forestry programme, we also have to bear in mind the ongoing management of the existing forestry resource.

Concern has been expressed to me by farming and industry sources about the adequacy of the capital allocation of €89 million for the forestry programme in Capital Review - Infrastructure Investment Priorities 2010-2016, published in the summer. As part of the Estimates process, my Department will be reviewing its available capital resources, which are capped at €350 million for 2011, to ensure that priority needs and commitments are met.

I can assure the Deputy that I am fully aware of the need to maximise funding for forestry in what we all know are exceptionally difficult times for the public finances. I will be making every effort on behalf of the forestry industry to get a fair share of the limited resources available.

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