Brendan Ryan (Labour)

The latest figures to hand indicate the forestry industry accounts for approximately 0.3% of annual gross domestic product with some 16,000 people employed, either directly or indirectly, in the sector. In excess of 16,000 private plantations have been established, the majority, more than 14,000, established by farmers.

In 2005, €57.8 million in forestry premiums were paid out to forest owners. As well as the timber benefits, non-timber benefits are becoming increasingly important such as recreation, carbon storage and the biodiversity benefits of forestry. This is approaching a value of €100 million per annum.

Some 25% of our forestry cover is now broadleaf, a massive shift from the traditional conifer forestry. This change is as a result of the Government's grant aid policy which financially encouraged woodland owners to plant broadleaf species. The Minister of State confirmed 43% of forest estate is now privately owned. The pattern of Irish forestry has changed to one of smaller forests with greater species diversity. Also, it is gradually coming down from the peat uplands to the lower lying mineral lands.

I welcome these developments as they will bring about a significant and positive change to our landscape and facilitate the development of a widespread wood culture. It will bring about a mixture of different habitat types and contribute to the increased biodiversity of our countryside.

Despite these notable advances, all is not as rosy as one might think. The forestry service's recent detailed survey of our forestry indicates a forest cover of just 10%, well below the European average. The Government's strategic plan, entitled Growing for the Future: A Strategic Plan for the Development of the Forestry Sector, published nearly 12 years ago, set an annual target of afforestation of 20,000 hectares until 2030. This target has never been achieved, neither in this century or in the years leading up to it. The level of afforestation was as low as 7,000 hectares in 2007, 35% of the target set out in the Government's strategic plan. This is an indication of the level of ongoing interest the Government has in the industry, in developing it and in supporting the 16,000 people who derive their livelihoods from it. The figure of 35% is not even a pass rate. It is a shameful record.

In the era of peak oil and ever-increasing energy prices, the value of a renewable and home-grown wood energy takes on an increasing importance. Ten years ago the cost of a barrel of oil was as low as $20; now we are hitting $100 a barrel. What will a barrel of oil cost in another ten years? It is time for the Government to be proactive, increase investment in the forestry industry and assist it in realising its full potential.

Climate change has become an issue mentioned in the House every day and has permeated many debates. Forestry makes a significant contribution to our environment. It is accepted by all sides in this House that forestry plays a key role in delivering our targets under the national climate change strategy and the national biodiversity plan. New forests established under grant aid since 1990 will qualify as areas that will contribute to Ireland meeting its emission reduction targets under the Kyoto Protocol. Forests planted since 1990 will absorb approximately 2 million tonnes of carbon dioxide per year over the next four years. This can be used to offset greenhouse gas emissions.

This highlights the need for the Government to show more initiative in adopting an appropriate and well-thought out strategy for the development of the forestry industry. It should reward woodland owners for the environmental benefits that accrue from their forests. In doing so, the Government undoubtedly would entice more farmers and landowners to commit their most valuable asset — their land — to forestry.

The IFA's farm forestry committee put forward an interesting idea of a green forest payment. This would be paid annually to woodland owners for the wide range of non-timber benefits which their forests provide. Currently, the Kyoto Protocol provides no mechanism to reward woodland owners financially for the positive environmental and non-timber benefits provided by their forests, a good concept worthy of serious consideration. I urge the Minister of State to consult with her Cabinet colleagues, with the Minister for the Environment, Heritage and Local Government and with other stakeholders to see whether such proposals could be introduced.

There are some grave shortcomings in the management of our forests. The Forest Service has pointed out that 87% of private plantations are not thinned. This is an alarming figure. It has been speculated that if we thinned half the plantations that are currently suitable for thinning, we would obtain more than half a million cubic metres of wood. At a time when we are trying to encourage alternative energy projects such as wood chip burners, it seems incredible that we are content to leave more than half a million cubic metres of wood in our forests. The Government should encourage private woodland owners — financially or otherwise — to thin their forests, and we should make use of this perfectly good resource that nature has provided. That this resource is out there unused and untapped is a great shame.

We are blessed with perhaps the healthiest forest estate in Europe, but we must continue to do everything to ensure the good health of our forests. We need to maintain the strict regulatory policies that have protected our plantations. I urge the Government to continue to insist on the most stringent regulations regarding the importation of timber and timber products. We have seen that the Government has recently been less rigorous in the area of cattle importation and has allowed cattle to be brought here from different regions of the world. This has resulted in the introduction of diseases that were never here before and has raised fears about the overall health of our herd. I would not like the same to happen in the timber industry. Imported timber must be accepted only from pest-free regions of the world. The task is great, and climate change will not make that task any easier. The increases in temperature mean that insects and pests are on the move. We need to be prepared and vigilant.

It is also worth noting that we are the biggest importers of rain forest timber in Europe. We need to be adamant that all timber imported into Ireland comes from sustainably managed woodlands. The Labour Party believes that sustainable forestry is of huge importance in securing the continued viability of rural Ireland. We are convinced that forestry remains a major option for effective land use in this country. Our forests contribute enormously, and beyond simple monetary value, to the economic, environmental and social well-being of our society. For these three reasons, I urge the Minister, and particularly her Green Party colleagues, to commit themselves to action on this, to follow through on their commitments to the industry and to encourage increased forestry cover in Ireland.