Jimmy Deenihan (Kerry North, Fine Gael)
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Question 17: To ask the Minister for Agriculture and Food her views on the draft rural development regulation and the impact on the forestry sector here; and if she will make a statement on the matter. [1771/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Commission proposals for a new rural development regulation covering the period 2007-13 are at present being discussed at working group level in Brussels.

Insofar as forestry is concerned, I have very serious concerns about the impact of the proposals. In particular, I am concerned about the proposed reduction in planting grants from 100% to 40%, the reduction in premiums and a reduction in the premium payment period from a maximum of 20 years to ten years.

I have established a forestry liaison group, on which all of the various national stakeholders are represented, specifically for the purpose of examining these proposals, sharing information and identifying priorities. I would like to acknowledge the significant contribution that this group has made to date in our analysis of the draft regulation.

I expressed my views forcefully on the impact of the proposals for forestry in Ireland at the Ministerial Agriculture Council Meeting in November 2004 and to Commissioner Fischer Boel. Last week, the Luxembourg Presidency circulated a further paper on the draft regulation but this did not address any of our main concerns. Our opposition to the forestry proposals contained in the original draft remains and will be reflected in the position we adopt as the negotiations on the overall rural development package evolves.