Andrew Doyle (Wicklow, Fine Gael)
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Deputy Carey mentioned the five-year plan which is necessary in any kind of industry especially in one such as forestry. I tried to bring this matter into focus and to the attention of the Government because the planting season and the preparation for 2011 starts now for many in the forestry sector. It begins in the nursery where over the past three years more than 60 million seedlings have been nurtured and prepared.

The commitment in the current programme for Government envisaged 10,000 hectares of afforestation per year or 17% cover by 2030. I keep that in mind and in good faith, having seen it referred to at least twice in the 2020 Vision document in which forestry was depicted as paying a key role in greenhouse gas mitigation and biomass and biofuel production. It is also a primary source of supply to the construction industry and other sectors by way of saw logs and saw mills. Forestry probably employs 6,000 people directly.

The Forestry Bill states its aim as follows: "To reform and update the legislative framework relating to forestry in order to support the development of a modern forestry sector which enshrines the principles of sustainable forestry management and protection of the environment." Given all that, one would think the forestry sector had nothing to worry about but instead there is uncertainty. Between now and 2016 the capital investment programme actually cuts forestry to a level where 2,000 hectares per annum is considered to be a realistic amount with the level of funding that can be achieved.

I hate to use the term "no-brainer" but this is the case. The forestry sector has a critical role to play. It drives and supports an entire industry. It is not something that can be turned around in a year or two years. If we do not plan now we will pay the price in 15, 20 or 25 years time. If we have to start to import raw material for own industry, this will have a negative impact on our balance of payments, as opposed to exporting it. We will be paying for greenhouse gas carbon emissions. It is estimated that the programme for Government target of 10,000 hectares would actually save the State some €46 million a year. If 6,000 people are put on the unemployment register, by 2020 that would amount to about €12 million, so this is the level of cost benefit to be achieved.

However, cost benefit analysis shows that for every euro spent on forestry there is a yield of €1.59 back to the State. This proves that when we are looking for value for money in the context of limited resources we have to target areas that give a better yield and show a return down the line. One has to speculate to accumulate and we have to invest wisely.

Of all the sectors this is crucial, and should be of particular interest to the Green Party members. This was one of their trophy successes in last year's renewed programme for Government, and yet while it received a good soundbite at the time, it seems to have merited token gesture status since. The summer was taken up with the introduction of legislation to ban stag hunting. I might have comments to make regarding horse welfare, etc., that seem to have been neglected but that is a matter for another night.

I cannot overemphasise the urgency with which this issue needs to be addressed by the Minister of State. I know he is not long in the job but I ask him to bring this back to Government. It embraces many contexts and even Commissioner Dacian Ciolos last Friday alluded to the fact that in the revised CAP, forestry could be part of the rural development programme, Pillar 2, which allows some co-funding of the obligations. If the carbon offsets we could attain are factored in, then perhaps that could represent our co-funding obligations. We could drive on an industry, it would create jobs, as already justified under serious cost benefit analysis. What is more, the benefits would disperse into rural communities around the country, with the money staying local and keeping those communities sustainable as well.

I urge the Minister of State to bring this to attention of the Cabinet.

Seán Connick (Wexford, Fianna Fail)
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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.