Paul Bradford (Fine Gael)

I welcome the Minister of State, a former colleague of mine in both the Seanad and Dáil, to the House in which we both started our political careers in 1987. I wish her well in her new position, which is an onerous and interesting ministerial portfolio. Of all the work done by Departments, the development of forestry presents a win-win scenario. Forestry has a significant and positive contribution to make to farming, the environment, the economy, the timber industry, wildlife, energy substitution and the generation of new energy sources.

The Minister of State's contribution was littered with statistics, which is usually a negative sign. However, the figures she provided were interesting and I noted some of them. I had, for instance, forgotten the proportion of the Irish landmass covered in forest. According to the Minister of State, the figure now stands at approximately 10%, compared to a European average of 35%. While we cannot expect to reach the EU average, there is significant scope for further progress. Having said that, a debate has commenced on the utility of food production versus energy crops. At a meeting of the Joint Committee on Agriculture and Food this morning, I pointed out that from a global perspective food is becoming scarcer, with food production having been in deficit for the past five years. This imbalance will need to be addressed. While we cannot devote all available land in Ireland or Europe to forestry given the importance of food production, expanding forestry remains both necessary and feasible.

The first forestry grants were introduced approximately 20 years ago. The Minister of State cited an interesting statistic on the proportion of Irish forests planted since that date. While the figure is significant, one must ask the reason the response has not been greater, given the generous grant aid available to farmers to plant forests and the added incentive that income from forestry is tax free. Interest in afforestation has not increased as quickly as it should have. The REP scheme solved certain problems but created others, whereas the new scheme, which combines REPS farming and forestry, will be a useful step forward. I welcome progress in this regard and ask the Minister of State to ensure the scheme is developed further.

It is in the interests of the Government and rural communities to significantly increase the level of forestry plantations. If farmers and growing agencies do not respond to the substantial grants available, it may be necessary to increase grant aid or to offer further incentives, particularly in light of the timber deficit in the Irish market. Timber is one of the few agricultural products Ireland must import in significant quantities. The Minister of State should be able to sell to her colleagues in Government the case for increasing afforestation grants, particularly given the impact of forestry on income substitution, family farm income and the environment.

It is the environmental aspect of forestry that catches the public imagination most. Members of the public are tuned into environmental matters much more than in the past. Even the youngest schoolchildren now speak of global warming and climate change and everybody accepts that forestry plantations and planting trees have a positive environmental impact. We must consider the issue from this perspective.

Energy substitution and maximising the use of wood chip fuel and old-fashioned timber offers scope to reduce our reliance on oil and other imported fuels. The Minister of State referred to the green energy grants scheme which was welcomed by all sides. While Government revenues may not be flowing as freely as they did three or four years ago, it was disappointing that one of the first measures taken by the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan of the Green Party, was to reduce the value of some of the grants available to householders to switch to more environmentally friendly heating systems. This decision should be reviewed. While it is not the Minister of State's specific responsibility, the Minister should revert to the more favourable rate of grant aid. It is the Minister's responsibility to make grant aid available and the Minister of State's role to ensure the product, that is, timber, is available.

We should aspire to having energy friendly heating systems installed in all houses, old and new. The issue of supply was brought to my attention as soon as people began to install wood chip and wood pellet boilers. I am pleased, therefore, that the Minister of State indicated that a number of new plants are being established to meet demand for these products. There is little point in Members encouraging constituents to switch to an alternative or green fuel system if the product is not readily available. I understand most wood pellets are sourced from the North. The establishment in this jurisdiction of factories producing wood pellets would be a welcome development.

Forestry has a significant and expanding role to play in terms of the environment, which is an area people readily understand. We should encourage this development. As I indicated, the development of forestry is a win-win scenario. The more of it we have, the better it will be for rural areas, farming communities, rural sustainability, the environment and future energy supplies. The statistics speak for themselves. It is one of the few products we can grow naturally for which a gap exists in the market. We are not talking about European subsidies or any degree of false State aid. We are talking about simply supporting what we need not only for the present but well into the future.

Whenever one drives past a forestry plantation whether it be 40, 50 or 60 years old, one gets a great sense of where one is and one reflects on who planted it and the farmers who existed. This is another positive side to our forestry industry.

Five to ten years ago a difficulty existed in some parts of the country, in particular in the west of Ireland. Senator Ellis is present, and his previous constituency colleagues often spoke to me about it. I remember a former Member of the Dáil, Ted Nealon, speaking many times about marginally viable farming land put up for sale being purchased by people who planted forestry. This is one of the difficulties but we cannot have it every way.

The grants system gives a premium or advantage to the growing of forestry in less marginal areas and it is also making it more appealing in those parts of our island which previously were not deemed to be attractive for forestry growing. We are getting more balanced development, which I welcome. However, as in all walks of life we cannot have it every way. We cannot grow more trees from an environmental and energy point of view and bemoan the fact that farming land is lost.

We should not move away from the important food versus energy debate because it must be addressed with regard to food from a world perspective. We have scope at home to significantly increase our plantations. I look forward to the Minister of State's ongoing interest and developments in this regard. The role may be deemed what is termed a "junior ministry" but it is extremely important to the development of rural Ireland, our energy supplies and our environment. I wish her well in her endeavours.