John Perry (Sligo-Leitrim, Fine Gael)
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Question 200: To ask the Minister for Agriculture and Food further to the EU Commission proposal for a Council regulation on support for rural development 2007-13, if her attention has been drawn to the fact that there are 16,000 persons directly employed in the forestry sector and a further 15,000 persons who own forest plantations; the steps she will take to redress the situation whereby planting grants will be reduced to 40% of eligible costs, farm forest premiums capped at €500 per hectare, a reduction of 31% on current levels, and the premium time span reduced from 20 to 10 years; and if she will make a statement on the matter. [5265/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The issues raised by the Deputy relate to the proposed new draft rural development regulation 2007-13, first published by the European Commission last summer.

The Deputy can be assured that I am well aware of the overall contribution of forestry to this country, including the number of people dependent on a thriving forestry sector for their livelihood. I am also conscious of the impact that the proposals, in their current format, would have on our forestry sector.

From the outset, the Irish position on the draft regulation has been clear and unequivocal. We have consistently made clear our opposition to the Commission's proposals, particularly those relating to the reduction in the planting grant rate, the reduction in the premium period and the reduction in the maximum premium payable.

Our position on the proposal has been articulated consistently and forcefully at every level from working group up to the agriculture council. More member states are adding their voices to the concerns we have expressed and we will continue to work at all levels to achieve the best possible deal for Ireland in the admittedly tough negotiations that lie ahead.

To this end, I am heartened by the support we are receiving from all sectors of the industry. Early on in the process, I established a liaison group, comprising representatives from all parts of the forestry sector, which meets regularly. Through this group, the sector is informed of developments and my Department is supported in its negotiations with the Commission.

At this stage, intense negotiations on the regulation are continuing and a final decision is not expected to be taken by Council of Ministers for several months.