Written answers

Wednesday, 17 December 2008

Department of Agriculture and Food

Afforestation Programme

8:00 pm

Tony Gregory (Dublin Central, Independent)
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Question 566: To ask the Minister for Agriculture, Fisheries and Food the reason Ireland no longer avails of European funding for the forestry programme here taking into consideration the requirement for Departments to reduce expenditure; and the cost to the Exchequer through the loss of this funding. [46541/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The provision of 100% grants for the establishment costs of afforestation has been a key element of national forestry policy and is considered essential to overcome the traditional reluctance to plant and to recognise the long-term commitment of land to forestry. However, the maximum grant aid available to applicants in Ireland for any afforestation scheme co-funded from EU and Exchequer funds under the Rural Development Regulation 1698/2005 is 80%.

The EU, however, has no objection to Member States paying a higher rate of aid on a national basis. In fact, the EU makes specific provision in its state aid rules for a 100% rate of aid in countries, like Ireland, where forest cover is particularly low. Consequently, and in order to provide for the continued payment of 100% grants, it was decided not to include the forestry measures under the Rural Development Programme and to fund them from the Exchequer instead.

The overall amount of EU support for rural development in Ireland for the period 2007 to 2013 was fixed at €2.339 billion in 2006 and is fully allocated to other schemes in Ireland's Rural Development Programme. Accordingly, the decision not to include the forestry programme in the Irish Rural Development Programme has no bearing on the total amount of EU support for rural development in Ireland.

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