Victor Boyhan (Independent)
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I thank the Cathaoirleach for selecting this matter and I thank the Minister of State for coming to the House to deal with it. I appreciate her coming here now because as the Acting Chairman will know, we will be discussing this later. I thank the Minister of State and the Minister for Agriculture, Food and the Marine, Deputy McConalogue, for agreeing to appear before the committee later today to discuss this matter.

I have two specific issues, the first of which is about the forestry programme while the second concerns the Gresham House investment. Since I tabled this matter, things have become somewhat clearer. I will touch on them with regard to commentary attributed to both the Taoiseach and Tánaiste by RTÉ news yesterday on the web.

I will start of on a positive because that is important. We had some engagement on Thursday of last week. I started off by saying to both the Minister of State and the Minister that forestry was in crisis. The Minister suggested and, indeed, maybe the Minister of State did too, that it may have been in crisis but we are past that stage. The Minister of State will defend her case, and I appreciate and respect that. One thing that must be made very clear in a discussion in any political engagement is that people should have courtesy and show respect. I want to show that at all times to the Minister of State and any other Minister who comes to this House.

In that context, and on a positive note, I think we all agree on a few principles in terms of a sustainable forestry sector that can achieve commercial climate and biodiversity goals, namely: a reduction in the volume of imported timber, where possible and practical; actively pursuing the timber options for the construction of new homes, which is an area of great potential; improving the current licensing schemes that are holding back potential forestry industry; and maximising the timelines for every application and function in the licensing system to fully implement the Mackinnon report in a defined timeframe.

I did a word search in respect of the programme for Government earlier. Interestingly, the word "forestry" appears 15 times. It was very easy to pull up the 15 asks associated with the word, one of which is that we roll out the recommendations of the Mackinnon report. I accept that mattes move on and that things have changed in two and a half years, but I would like to hear some detail in respect of the matter to which I refer.

There is also the issue of a forestry development agency. We have a different view on that or the Department does not see fit to have a defined and designated forestry development agency that promotes and represents the sector. There is a view in the private sector that Coillte has advantages over it. That is a particular issue.

It is important that we have clarity. I am not necessarily looking for the Minister of State to go into great detail on the Gresham House report today. Clearly, we have now been told it is a done deal and there is no rolling back on it. The Taoiseach said yesterday that contracts have been signed. Therefore, if contracts have been signed, that is it. We have to be upfront with people. I know the Minister of State will be upfront this evening because that is clearly an issue we cannot revisit. However, the Tánaiste and Taoiseach talked about a new way for Coillte to pursue other options in terms of investment. I would like to hear something about that. This is really critical. I was in the Minister of State's constituency on Monday and visited C.J. Sheeran's wood construction company. He is a very impressive man with a very impressive company. I met the workers and saw the pallet operation and was highly impressed. I asked Mr. Mark Sheeran as I left his office what three things he would like me to ask the Minister of State. He said to plant trees, trees and more trees. That is the simple message. I would like to briefly hear a little bit about the Mackinnon report and the commitments to roll it out. I do not want to pre-empt what the Minister of State will say later at committee. That would not be right or fair. All the members will be there later.

The issue is that I received a call from a major forester today who told me the reality is that the Department is not accepting new applications for planting trees, which is unheard of in the State. We know those who have had planting licences approved for up to 31 September 2022 can immediately avail of the grants but the Department is not accepting new ones.

The final matter I will ask is about when this strategy will be adopted. I am conscious of the Commission and State funding rules and all of that. Those are some issues on which I would appreciate the Minister of State's response.

Pippa Hackett (Green Party)
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I thank Senator Boyhan for his fair and measured observations of the forestry sector.He asked a few more questions than were in his original question but we will see how we get through them.

I welcome the opportunity to update Senators on the progress of the new forestry programme and Coillte's plans to increase afforestation. As Members will know, afforestation levels in recent years have been declining and we recognise that urgent action is needed to address this decline. This is why the Government has committed €1.3 billion to the new forestry programme, with substantially higher payments for farmers than for other landowners. This is the biggest and best funded forestry programme ever introduced by any Government here, and it has been designed to have a greater emphasis on close to nature forestry and to ensure that farmers will be its primary beneficiaries.

The forestry programme 2023-2027 is subject to state aid approval from the European Commission, as referenced by Senator Boyhan. The previous state aid guidelines in the forestry sector expired on 31 December 2022 and have been replaced with a revised version as of January 2023. The introduction of these revised guidelines meant that a formal application for state aid could not have been submitted to the European Commission until the revised guidelines were in place. However, my Department's engagement with the Commission is progressing well. We engaged with it towards the end of last year in advance of this date and we are working intensively to submit the formal application and secure full state aid approval for the forestry programme 2023-2027 as early as possible this year.

While the state aid approval process is ongoing, my Department has introduced an interim afforestation and roads scheme in order that those with valid approvals under the old forestry programme can plant and build roads now. Under the interim arrangements we have put in place, over 7,000 ha of existing afforestation licences can now proceed to planting stage at the rates proposed to be paid under the new programme. Licences for felling and non-grant-aided roads licences will also continue to issue.

While our farmers will deliver the vast majority of our new forests by planting on their land under the attractive new incentives we have put in place, there is also an important role for the State forester, Coillte, in helping to achieve our ambitious afforestation targets. In its new strategy, Coillte has indicated it will support the delivery of Ireland's afforestation targets through a suite of initiatives which will contribute about a fifth of our 2050 targets. As one of a number of models it intends to deploy in order to enable afforestation at a meaningful scale, Coillte has partnered with the Irish Strategic Investment Fund, ISIF, to establish the Irish Strategic Forestry Fund. My understanding is that, under this fund, roughly 3,500 ha of new forests will be planted over the next five years. To put those 3,500 ha of new forests in the context of our overall targets for new forests by 2050, the Irish Strategic Forestry Fund will create less than 1% of the forests we need to create by 2050. Coillte will not be selling any existing publicly owned forests to the fund, nor will Coillte seek to purchase any other public land on behalf of the fund.

Coillte has outlined that this fund is one of a number of models it will deploy in contributing to the State's overall forestry targets. Coillte is progressing with planting native woodlands through the not-for-profit Nature Trust, as well as engaging with local authorities and public bodies to identify land already in public ownership suitable for new native woodlands. The Minister, Deputy McConalogue, and I met with Coillte last week and we have asked it to consider the full range of possible models to deliver on its targets for new forest creation between now and 2050, and to consider how Coillte can work more closely with farmers and local communities.

I would like to be very clear that the primary model by which the State will deliver on forestry is by farmers planting trees on their own land. This is why we have made afforestation an attractive option on farms and designed the €1.3 billion forestry programme to ensure that farmers will be its biggest beneficiaries. Farmers will receive 33% more premium payments than any other landowner under the new programme, in addition to receiving the basic income support for sustainability on forested land, which non-farmers will not receive.

Victor Boyhan (Independent)
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I thank the Minister of State. We will have a greater opportunity this evening to discuss this matter. I want to raise two issues following on from the response of the Minister of State. There was a lot in her response so I want to consider it in some detail before this evening. It is clear that the new forestry programme 2023 to 2027 cannot be fully operational until it has this clarification in regard to EU state aid approval. It is also clear, or at least it is what I pick up from what the Minister of State has said, that the formal completed application to the Commission has not yet been made. The Minister of State might confirm that because it is pretty serious. We are talking about time constraints and the Minister informed me last week that it will take up to eight months to complete that process, although we hope it will be shorter. Those are the two issues, that the forestry programme for 2023 cannot commence until we have formal EU approval for state aid and that the Minister of State has indicated the formal complete application has not yet been made to the Commission.

Pippa Hackett (Green Party)
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Yes, we need to receive full state aid approval before we can fully get our forestry programme up and running. However, as I indicated, that does not stop any trees going in the ground. Anyone who has an existing licence can plant under the arrangements of the proposed new programme, and we have been given that permission. I understand we are finalising our over-and-back process with the Commission and we have to get back to the Commission with more information. I would like to think we will be making our informed submission in a matter of weeks. As the Minister said last week, the process can last for between two and eight months. I know eight months sounds like a very long time, and it is, but the last time we did this back in 2014, it was a three-month process. We have done a lot of work and we engaged with the Commission prior to the end of last year, so I would like to think we have ticked the necessary boxes. We will just have to wait and see what comes back. It is important that we get that state aid approval and get this right.