Peter Power (Limerick East, Fianna Fail)
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Question 179: To ask the Minister for Agriculture and Food her views on the outcome of the agreement on the forestry element of the new rural development regulation achieved in 2005. [26159/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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I welcome the positive outcome of the agreement on the forestry element of the new Rural Development Regulation 2007-2013. Following intensive negotiations, which concluded on 20 June 2005, Ireland secured a most satisfactory outcome, in spite of a bleak starting position. The original draft regulation proposed a maximum 40% establishment grant for new afforestation projects as opposed to the existing 100%; a reduced premium ceiling of €500, currently standing at €725; and a reduced premium period from 20 years to ten years. Ireland consistently opposed the negative aspects of many of the proposals for forestry and in the concluding agreement achieved the following: an establishment grant of 80% in less favoured areas, covering 74% of the country, and 70% elsewhere; premium rate ceiling re-established at €700; premium period set at 15 years; and opportunities for State aid top-up. I regard this outcome as extremely positive for Ireland and I am satisfied that the response provides a careful support system on which to further develop the sector.