Seán Sherlock (Cork East, Labour)
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Question 2: To ask the Minister for Agriculture; Fisheries and Food if the commitment to establish a minimum 10,000 hectare annual planting target is being met as outlined in the programme for Government; and if he will make a statement on the matter. [41015/10]

Seán Connick (Wexford, Fianna Fail)
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The renewed programme for Government contains a number of commitments with regard to forestry, one of which is to increase the annual level of forestry planting to 10,000 ha. per annum.

To make progress towards that objective, provision of €116.5 million was made in 2010 to facilitate an increase in planting from 6,648 ha. in 2009 to 7,000 ha. this year. Current indications are that this increased planting target is on course to be met and may be even slightly exceeded. Planting levels in recent years had declined significantly each year from a peak of 23,710 ha. in 1995 to a low of 6,249 ha. in 2008. This decline can be attributed to a number of factors, including the reluctance of farmers to plant good, agriculturally productive land with trees, alternative land use options with generous grants and premiums, and the cessation of new planting by the State forestry company, Coillte Teoranta. Modest increases have been experienced in 2009 and 2010, reflecting an increased interest in forestry among farmers.

Following a successful spring planting season, I recently announced approval for another 1,500 ha. of forestry planting for the autumn planting programme. There was a very strong response from applicants, demonstrating the high level of interest among farmers and their appreciation of the many benefits associated with forestry. In recent years my Department has undertaken significant promotional activities to encourage increased farmer participation in forestry, highlighting the economic, social and environmental benefits of forestry. Together with Teagasc, we have assisted in the formation of 16 forest owner-producer groups to encourage farm forest owners to co-operate on various aspects of forest management. These promotional activities, together with the opportunities presented by the current high timber prices and the developing wood energy sector, have all contributed to an increased interest in planting new forests, and this will help us to achieve significant annual forestry planting.

All aspects of public expenditure are being examined at present, and forestry is no different in this regard. I am very much aware of the concern expressed by farming and industry sources about the adequacy of the capital allocation of €89 million for the forestry programme in the capital review, Infrastructure Investment Priorities 2010-2016, which was published during the summer. While this amount is only indicative, it will nevertheless inform the Estimates process. As part of the Estimates process, the Department is reviewing its available capital resources, which are capped at €350 million, to ensure that priority needs and commitments are met.

As the Deputy will be aware, there are also ongoing discussions at both Departmental and Cabinet level on the formulation of the budget for 2011. I can assure the Deputy that the Government remains committed to ensuring the continuation of the afforestation programme at a rate and in a format that maximises the use of scarce financial resources.

Seán Sherlock (Cork East, Labour)
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I welcome the Minister's response, but I ask him to forgive me if I missed something in his reply. Will the Government achieve a target of 10,000 ha. this year: yes or no?

Seán Connick (Wexford, Fianna Fail)
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The figure of 10,000 ha. is indicative. We did not have an obligation to reach this level, although I would have liked to do that. However, it is likely that we will exceed the target of 7,000 ha., and I am delighted with that. We released 1,500 ha. in the past few weeks, and we had subscriptions for the equivalent of 3,600 ha. Thus, a demand exists, which we have identified. I will meet officials from the forestry section tomorrow morning in Wexford when we will discuss the excess. At present it seems likely that we will exceed the 7,000 hectares about which I am happy in the current climate.

Seán Sherlock (Cork East, Labour)
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I wish to consider the matter from two perspectives. Would the Minister of State acknowledge that ensuring the target is met would potentially capture in the private forestry sector up to 160,000 tonnes of CO2? According to the private forestry sector, if the State were to purchase carbon credits for that amount, it would cost approximately €46 million. While the 10,000 hectares is an aspirational figure, would the Minister of State acknowledge that we should move beyond aspirations at this stage? There is a clear need in a very productive sector to ensure that the investment will yield a multiplier of the benefits in the longer term.

Seán Connick (Wexford, Fianna Fail)
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Regarding the carbon sequestration, the €46 million figure is applicable to 2008 and there has been a significant reduction in the CO2 produced owing to the downturn in the economy. However, I have made that argument at the various meetings I have attended and am aware of it. As the Minister of State with responsibility for forestry I am seeking to target the 10,000 hectare total. The budget is the big issue and I am obliged to review forestry funding. Everything needs to be looked at and discussed ahead of the budget. I hope the budget will give me an adequate allowance that will allow me to reach that target, but at this time I cannot commit to a 10,000-hectare programme.

Tom Sheahan (Kerry South, Fine Gael)
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Question 4: To ask the Minister for Agriculture; Fisheries and Food if the Renewed Programme for Government commitment to increase the level of new forest plantation to 10,000 hectares per annum is still achievable; and if he will make a statement on the matter. [41013/10]

Seán Connick (Wexford, Fianna Fail)
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The commitment contained in the renewed programme for Government recognised that there had been considerable difficulty in recent years in maintaining a substantial afforestation programme. Planting levels peaked in 1995 at 23,710 hectares but declined significantly thereafter reaching a low of 6,249 hectares in 2008 owing to a number of factors I outlined earlier.

I recently announced approval for an additional 1,500 hectares of forestry planting for the autumn planting programme. There was a very strong response from applicants demonstrating the high level of interest among farmers and the appreciation of the many benefits associated with forestry.

The Deputy will be aware that all aspects of public expenditure are subject to more in-depth critical scrutiny than heretofore and forestry is no different in this regard. I am very much aware of the concern expressed by farming and industry sources about the adequacy of the capital allocation of €89 million for the forestry programme in the Capital Review - Infrastructure Investment Priorities 2010-2106, published during the summer. While this amount is indicative only it will, nevertheless, inform the Estimates process. I can assure the Deputy that the Government remains committed to ensuring the continuation of the afforestation programme at a rate and in a format that maximises the use of scarce financial resources.

Tom Sheahan (Kerry South, Fine Gael)
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I thank the Minister of State for his answer. I would like to outline a few matters before I put another question to him. I recently met forestry industry representatives who informed me that they have markets for an additional 50% of product this year and that their product is at a premium this year. In one day a harvesting machine harvests 1 hectare of trees, which take 35 years to grow. We need to take afforestation very seriously.

Brendan Howlin (Wexford, Labour)
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A question please, Deputy.

Tom Sheahan (Kerry South, Fine Gael)
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The Minister of State referred to the unwillingness of farmers but I put it to him that the forestry inspectors are considerably more unwilling than farmers are.

Seán Connick (Wexford, Fianna Fail)
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I did not say that.

Tom Sheahan (Kerry South, Fine Gael)
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He said farmers were not willing to plant.

Seán Connick (Wexford, Fianna Fail)
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There were a number of issues in 2006.

Brendan Howlin (Wexford, Labour)
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Allow the Deputy to continue.

Tom Sheahan (Kerry South, Fine Gael)
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At present I have considerable anecdotal evidence of inspectors going slightly over the top. There is a belief that the Minister of State's recent announcement of the 1,500 hectares was clearing the desk for savage forestry cuts in the budget but I hope that is not the case. I want to point out how important it is.

Brendan Howlin (Wexford, Labour)
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A question please, Deputy. This is Question Time.

Tom Sheahan (Kerry South, Fine Gael)
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The Bacon report commissioned by the Department provided the evidence that for every €1 invested in forestry-----

Brendan Howlin (Wexford, Labour)
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A question please, Deputy.

Tom Sheahan (Kerry South, Fine Gael)
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There is a return of €1.59 to €1.60 to the Exchequer. In light of the importance of forestry the Minister of State must not let it slip down the ladder in the budget negotiations and provide the funding because 1 hectare a day-----

Brendan Howlin (Wexford, Labour)
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I am not sure there is any question there.

Tom Sheahan (Kerry South, Fine Gael)
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-----that can be harvested takes 35 years to grow. It is a no-brainer.

Seán Connick (Wexford, Fianna Fail)
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There were several questions there, a Leas-Cheann Comhairle. The Deputy used the term "savage cuts". I am acutely aware of the importance of the forestry sector to getting the economy back on track and it is one of the indigenous industries on which I would like to see focus in the upcoming budget in order to increase the return from the sector. The Deputy spoke about the 50% increase in demand. As we know the biomass sector has established itself in recent years. At the National Ploughing Championships I was pleased to meet so many representatives of companies that had established themselves. Many companies employing up to six people are now operational in the sector. I accept there is significant pressure with regard to thinnings.

We are also trying to encourage the establishment of producer groups. Teagasc has been involved in setting up 16 different producer groups across the country, which are very important in creating critical mass and reducing the costs applicable. Many of our plantations are small ones and the rental cost for harvesting equipment is very high. We are hoping to have a co-ordinated approach in various regions across the country that would help in that regard.

The Deputy did not ask me about the roads but I have also asked for a review of the how we fund them. I have met many industry representatives and we have had detailed discussions ahead of any decisions that would be made on our proposals for the budget.

Tom Sheahan (Kerry South, Fine Gael)
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Funding for the roads is very important for the forestry industry. Can any incentives be provided to owners of the private forests that are not being harvested given that there is market for an additional 50% of product?

Seán Connick (Wexford, Fianna Fail)
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I do not have a response to that but I will check with my officials, whom I will meet in Wexford tomorrow morning. I have asked them for a review of the roads because in many cases industry representatives have told me they only need 50 m to 100 m of road and in many cases we are grant-aiding up to 300 m of roads, which means that I could get up to six roads grant-aided as opposed to one. I have asked for that matter to be reviewed. I am reviewing all aspects of forestry and I want to assure those listening to the debate and those who will read the transcript that we are committed to maximising the potential of forestry and protecting it in the future.