Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

On Committee Stage in the Dáil there was lengthy discussion in respect of the need for the Bill to provide for payment of compensation in circumstances where an application for a felling licence is refused. In light of the concerns expressed, I sought the advice of the Office of the Attorney General. The advice I received was to the effect that there would be a risk of a finding that the provisions of the Bill permitting refusals of licences would be unconstitutional if they failed to provide for compensation. Section 32, for which I received Government approval, gives effect to this legal advice to provide for compensation where it is legally necessary to do so. While the outright refusal of an application for an approval or a licence is infrequent, there are, and will continue to be, instances where an approval or a licence may be refused by the Minister, usually for reasons of environmental protection.

It is intended that compensation will be provided through regulations to be made by the Minister for Agriculture, Food and the Marine and the consent of the Minister for Public Expenditure and Reform will be required in this regard. The proposed amendment limits the circumstances in which compensation will be payable. In the case of refusal of a felling licence or a forest road licence, compensation will be limited to the depreciation in the value of the trees that is attributable to the deterioration in the quality of the timber as a consequence of the refusal. This is similar to provisions included in Northern Ireland and UK legislation. Restrictions on the payment of compensation are also listed, including where a licence is refused for environmental reasons. Licences will not be refused without good reason and my Department will endeavour to work with landowners in order to explore all possible options before considering outright refusal. I hope this clarifies the position.