Peter Fitzpatrick (Louth, Independent) | Oireachtas source

In November, an investment of €1.3 billion in Irish forestry was announced for the next forestry programme. This represented the largest ever investment by a Government in tree planting which, as well as providing a valuable addition to farm income, promised to tackle climate change by contributing to improved biodiversity and water quality. I welcome these contributions, especially given the decline in water quality in the Dundalk water supply, with Irish Water admitting an incredible increase in manganese.

However, despite the extension of the forestry programme 2014-20 by two years, a new forestry strategy is still not in place and the Department of Agriculture, Food and the Marine is not currently accepting or progressing new afforestation licence applications. Furthermore, while the investment comes at an appropriate time and reflects the seriousness with which we view the climate change and biodiversity challenges, concerns are now being raised as to why the Department was adamant to keep the non-farm rate of premium at such a high level.

In correspondence received from the Social, Economic and Environmental Forestry Association, SEEFA, and the IFA, concerns have been voiced about a new €200 million Irish forestry fund which has been launched by a UK listed asset management company, Gresham House, backed by Coillte. They have claimed that for years the Department of Agriculture, Food and the Marine has deprived farmers and private forestry companies of afforestation licences to plant trees, resulting in low levels of afforestation of only 2000 ha per annum. However, instead of addressing the ongoing forestry licensing scandal or supporting farmers with ash dieback, which are obvious ways to increase confidence in the sector, the path of choice was to facilitate a joint venture between Coillte and Gresham House.

Replacing farmers and private foresters with a UK investment company is a kick in the face and, quite frankly, morally wrong. We would advance foreign and national investment funds to transition 100,000 ha of Irish farmland out of local farm ownership for afforestation by funds. We are selling rural Ireland to investment funds, which will disadvantage existing local, new entrant and young farmers. When foreign investors come in and buy land for forestry, the land market is distorted and it makes it incredibly difficult for local farmers, particularly young farmers, to compete.

Although Irish and international investors will be able to access direct financial support via the new €1.3 billion forestry programme 2023 to 2027, the focus of our planning programme and Exchequer spending should be on farmers planting, which will have the greatest positive impact on our economy. The majority of the money generated from forest premiums and timber sales by farmers planting is spent locally, fuelling economic growth and supporting jobs and businesses in towns across Ireland.

In contrast, the economic benefits when an investor plants or buys existing forest is significantly less as a majority of the money leaves the local economy. More important, the proposed joint venture has not resulted in increased Government targets for afforestation. This cements the fact that any new planting could and should be undertaken by public bodies, farmers and farmer co-operatives.

When questioned in October 2022 on the projected loss in financial output to private forestry companies who cannot engage in business due to the next forestry programme not being marketable, the Minister reiterated his commitment to support the sector. He acknowledges that the draft forest strategy and the forest strategy implementation plans were published on Tuesday, 18 October, and were then subject to a six-week consultation process. With one week left in January, we are still waiting.

I am not prepared to turn my back on rural Ireland. Coillte needs to immediately halt its proposed joint venture with Gresham House and seriously consider the social, economic and environmental consequences of a large purchase of land. More important, the new 2023-2027 forestry strategy needs to be published urgently and ensure the prioritisation of afforestation undertaken by local communities, farmers, landowners and public bodies.

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