Martin Ferris (Kerry North-West Limerick, Sinn Fein) | Oireachtas source

In a recent press release the Minister of State, Deputy Tom Hayes, stated he had secured European Union approval for a forestry programme. The press release's highlights included €482 million of new investment in forestry, 44,000 ha of new forestry, 700 km of new forestry roads, 20% higher premium payments, 5% afforestation grants etc., as well as new species, with rotations of ten to 15 years.

Many people will welcome any improvement in our forestry programmes and the development of the sector to meet our 2020 EU targets. The scale of investment will have real impact on rural communities, particularly for those who farm marginal lands. It will provide them with the opportunity to come into the forestry sector, offering real options for landowners to generate alternative sources of income. This can only be a positive development. It will prove attractive to landowners not previously interested in forestry. I am concerned, however, that some landowners with good arable land may enter into forestry when their land could be put to better use.

The forestry sector contributes €2.3 billion to gross domestic product, GDP, annually, and employs up to 12,000 people. Hopefully, with these new investment enticements, it will increase the numbers employed in the sector. Does the Minister of State have any projections as to how many extra jobs will be created as a result?

The programme aims to plant 6,000 ha of new forestry in 2015 and increase this to 8,310 ha by 2020. Again, this is an ambitious target and one which I believe can be met. The Minister of State has warned that there will have to be a 20% increase in premium payments, 5% increase in afforestation grants and 14% increase in forest road grants. One would like to see larger increases for the latter two categories.

The same premium rate will be paid to farmers and non-farmers. What does that mean? I am concerned about speculators coming into the sector because of the tax breaks associated with it. Is the tax break the same for a farmer as for a non-farmer? Most farmers involved in afforestation programmes are usually outside the tax bracket because they have low incomes. Speculators coming into the sector could have an adverse effect.

I am not being negative about this programme. Any extra moneys coming into the Irish forestry sector from Europe are to be welcomed, as is any development that can generate jobs. However, there are concerns about this and I would appreciate it if the Minister could address these.

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