Nicky McFadden (Longford-Westmeath, Fine Gael)
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Question 18: To ask the Minister for Agriculture, Food and the Marine the changes to the capital budget 2012 will make to the forestry sector; and if he will make a statement on the matter. [38953/11]

Simon Coveney (Cork South Central, Fine Gael)
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The Government will provide almost €112 million in funding for the forestry programme in 2012. The total amount of funding for forestry is the amount announced in the 2012 Estimates augmented by a carryover of Departmental savings of €27 million from 2011.

This allocation reflects the Government's continued commitment to a sector which is important both in creating and maintaining employment in rural areas, while also playing a significant climate change role. €110.1 million of the allocation for forestry in 2012 will be expended on the capital side with the remainder funding promotion, training and forestry development on the current side.

The capital funding will ensure continuation of the afforestation programme. In the current economic circumstances this is a clear acknowledgement of the many benefits accruing from this programme. The continued investment in afforestation will help sustain employment in sectors such as nurseries and the planting sector. It is also an investment for the future in terms of meeting our climate change targets.

The allocation will enable us to pay for new planting at a level similar to this year of almost 7,000 hectares. In addition it will pay for annual premiums to existing forestry owners. Approximately 16,000 recipients, the majority of whom are farmers, will receive almost €75 million in premium payments in 2012. It is envisaged that the annual premium run will take place in April 2012. I am pleased to confirm that there will be no change in relation to the rate of payment of forestry premiums, which continue at current levels.

In addition to the afforestation budget there is provision for forestry management schemes. These schemes support best management of forests already planted to ensure that the State investment is fully realised. Since the late 1980s, the State has invested a significant amount of money in forestry - approximately 300,000 hectares of new forestry has been planted with the assistance of grant aid. In order to capitalise fully on this investment, it is important to ensure mobilisation of this timber resource. Forests planted in the 1990's are now approaching the time of first and second thinning. Providing a level of support for the creation of forestry harvesting roads incentivises thinning. It also ensures that a sustainable level of timber supply is provided to the downstream wood processing sector and the emerging vibrant wood energy sector.

The capital funding provided by the Government to forestry in 2012 is an acknowledgement of the importance of forestry to the economy both in terms of its employment creation and maintenance and as an investment for the country's future.