Trevor Sargent (Dublin North, Green Party)
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Question 155: To ask the Minister for Finance the action he will take regarding the suggestion of his review of tax schemes relating to forestry and if he will evaluate the option of removing the tax free status for forestry and replacing it with higher up-front grants and longer premiums which the authors suggest may lead to a higher level of afforestation. [13956/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In budget 2005, I directed my Department, together with the Revenue Commissioners, to undertake a thorough evaluation of the effect of a range of tax incentive reliefs, including the tax exemption for forestry income. The review, which was published in full along with all of the other reviews on 6 February 2006, concluded that the relief in its present form should be maintained and that conclusion has informed my policy approach in this area.

The review also raised a wide range of other policy options for general consideration, including the option of replacing the tax free status of woodland gains with higher up-front grants and premium payments. I have no plans to make changes to this area of the tax code. Options for forestry policy generally are a matter for my colleague, the Minister for Agriculture and Food.