Jackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

I thank the Cathaoirleach for the invitation to speak today.

After the election in 2020, several stakeholders in the forestry sector told me their industry was in crisis. In the previous Dáil, attempts were made to introduce legislation on the appeals process, which was causing great delays at that stage in the issuing of licences. Thankfully, we got that legislation through early in the lifetime of the current Dáil. The committee decided it would have a series of meetings on the forestry sector to determine what it could recommend to address the large backlog in the licensing system and, as Senator Paul Daly has said, rebuild confidence in the sector.

Forestry is a very important industry to rural Ireland. In the world we live in, it also has an influential role to play in addressing climate change and meeting our climate change targets. As a farmer, I find it extremely frustrating that the potential of forestry in reducing our emissions is not being fulfilled.

Forestry is an important industry, employing 12,000 people. Our report set out to address four bullet points: the current licensing issues and the backlog; encouraging new entrants into the sector; achieving the climate action target of 8,000 ha; and determining what could be done for the owners of plantations with ash dieback, who have suffered very severe financial loss. We held meetings between October 2020 and October 2021 and produced 12 recommendations for our report. We met all stakeholders and there were numerous meetings. The first recommendation was to build trust and have a charter of rights. We saw this working very well in other areas of the agriculture sector, especially in respect of farm schemes, which faced a similar problem ten or 15 years ago in that there were no established timeframes for payments. Since a charter of rights was established, 97% or 98% of payments have been made on a specific day. This has restored confidence considerably in the farm schemes. Something similar needs to be done in forestry so an applicant for a forestry licence will have a response from the Department within three, four or six months, or whatever timeframe is set out. That is essential if we are to get people back into forestry to meet our afforestation targets. I appeal to the Minister to establish a charter of rights.

The licensing system is really frustrating for stakeholders and is just not fit for purpose. While the licence output has increased considerably, there is still a significant backlog. The original target was the issuing of 100 licences per week. Thankfully, that target is being met consistently but there is a major flaw in that afforestation licences are still significantly below target. Stakeholders tell us we need at least 20 afforestation licences per week to be issued to go somewhere towards meeting our target of 8,000 ha per year.

A stakeholder told me a couple of weeks ago that in 2017 there were just under 12,000 afforestation applications in the system and that these resulted in the issuing of just under 6,000 afforestation licences in that year. At present in 2022, there are slightly fewer than 4,000 afforestation licence applications in the system. A rule of thumb is that about 64% of applications result in licences. That indicates a huge drop. In 2017, just under 12,000 afforestation licence applications were coming through the system; today, the number is one third of that. That really pinpoints the serious lack of confidence within the industry and the reluctance of potential applicants.

We all agree we have targets to meet and challenges to address regarding climate change and climate action. Getting farmers involved in afforestation is critical. The figures are extremely worrying. Given a conversion rate of 64% and the number of applications currently in the system, a maximum of 4,600 ha will be planted in 2022. That would be if all the licences got through the system in 2022, which obviously will not happen. This shows the challenges we have to face.

We need to revamp forestry. There has been too much bad press over forestry applications, the issuing of licences and ash dieback. It has left a sour taste in people’s mouths. We need to revamp and relaunch to get people interested again.

I have been very consistent on ash dieback. I am extremely disappointed that we have not put a reasonable financial package in place for the plantation owners who suffered huge financial losses as a result of ash dieback. First, they should get a grant to clear their plantations. While there is a scheme in place, farmers are not at all happy with it. They should be given a choice if they want to replant. The premium should be made available to them again.A 20-year premium scheme should be made available to those farmers again. While it would not fully compensate them for the huge financial loss they suffered - ash was to be a financially attractive crop for them - it would give the industry some confidence that fair play was happening.

We need to revamp the current premium scheme for anyone entering afforestation. Some years ago, we reduced the period covered by the scheme from 20 to 15 years. I accept that the amount of money paid out remained the same and the rate of premium per year was increased. We need to make it attractive again for people to afforest. We need to go back to a 20-year scheme and increase the rate per hectare to make it financially attractive for people to afforest. It is essential that this is done if we are to go some way towards meeting our afforestation targets.

Of the licences issued last year for afforestation, half were for broadleaf trees. While broadleaf trees are very welcome and have a role to play in making the countryside attractive, carbon sequestration, etc., the harsh reality of life is that without Sitka spruce, there will not be a forestry industry.

I will not be here in 25 years' time but we will be criticised in 25 or 30 years for what we did in Ireland in 2021 and 2022 when we did not plant sufficient Sitka spruce to keep forestry for our mills. We will need timber for building houses, etc., in future. It is an essential raw material. As I said, forestry is a great industry for remote parts of rural Ireland that find it hard to attract industry. In 25 or 30 years' time, people will ask why we were reluctant to plant Sitka spruce? The amount being planted will result in a serious shortfall in years ahead. That we allowed that to happen will reflect very badly on the powers that be. Unfortunately, that is the situation.

We have produced our report. Forestry is an industry that can contribute greatly to the battle against climate change. It creates jobs in rural Ireland where they are extremely scarce. We have to reduce our emissions from the agriculture industry. We understand that fully. If we implement the 12 recommendations in this report, we will restore confidence in the sector and everyone will be a winner. We will reduce our emissions, increase carbon sequestration and keep a vital industry going in rural Ireland.

I recognise that the appointment of an adviser to ensure the Mackinnon report is implemented is most welcome. Other recommendations in this report need to be implemented to restore confidence in the forestry industry, ensure it prospers into the future and continues its contribution to the country, both economically and as regards climate action, which is something we all want to achieve.