P J Sheehan (Cork South West, Fine Gael)
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Question 51: To ask the Minister for Agriculture, Fisheries and Food if he will state the strategic implications of the cuts to forest premia; and if he will make a statement on the matter. [22008/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The Supplementary Budget introduced by the Minister for Finance in April 2009 reduced the funding available for the Forestry programme in 2009 and difficult decisions were taken by the Department of Agriculture, Fisheries and Food to make the maximum use of these funds. Maintaining an active afforestation programme was an important consideration in this decision-making process given its employment potential. However, this necessitated a reduction in other parts of the forestry programme. It was decided, therefore, to reduce by 8% the annual forestry premium that is paid to landowners following the successful establishment of their plantations.

With the continued availability of grants to cover establishment costs the overall planting package still provides an attractive land-use option for farmers. Provision has been included in the 2010 Budget for 7,000 hectares of new planting, an increase of over 5% on the level achieved in 2009. Evidence of the continued interest in forestry, despite the reduction in premium, is the increase to date in 2010 compared to the same period in 2009 by 26% in the number of applications for approval to plant (from 649 to 817).