Written answers

Tuesday, 13 October 2020

Department of Agriculture, Food and the Marine

Forestry Sector

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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605. To ask the Minister for Agriculture, Food and the Marine if the cost benefit ratio for the forestry programme 2015 to 2020 was calculated in 2014 as 1:1.18; and if so, the reason for this decision. [30348/20]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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The analysis that concluded a cost benefit ratio of 1:1.18 was carried out in the context of the Department's 2014 publication 'Forests, products and people, Ireland’s forest policy – a renewed vision'. A cost benefit analysis was not undertaken specifically for the proposals as set out in the Forestry Programme in 2014 although 'Forest, products and people' was a significant source of information and direction with regard to the design of the Forestry Programme.

The 'Forest, products and people' cost benefit analysis covered afforestation and roads. On the costs side, the analysis looked at the cost of grants and premiums as well as the cost of forest management. On the benefit side, there was analysis of timber revenue, carbon sequestration as well as the benefits of recreation and environmental benefits such as water quality and biodiversity. A planting programme for three different scenarios were included in the exercise, 7,500 hectares per annum, 10,000 hectares per annum and finally 15,000 hectares per annum.

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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606. To ask the Minister for Agriculture, Food and the Marine if the cost benefit analyses of the forestry programme 2015 to 2020 included the tax treatment of forestry; and his plans to include this income forgone by the tax exemption status of forestry in the cost benefit analyses for the new application for permission for state aid 2021 to 2025. [30349/20]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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A cost benefit analysis was not undertaken specifically for the proposals as set out in the Forestry Programme in 2014. Amongst the many sources of information referred to during the development of the Programme was 'Forests, products and people, Ireland’s forest policy – a renewed vision'. This document include a cost benefit analysis of afforestation and road operations and included the funding available at the time under the Department's afforestation and forest roads schemes. This analysis did not include the cost of tax revenue forgone associated with the exemptions in place at the time for forestry.

Work on the new forestry programme is due to start in the coming months and will involve a public consultation process as well as engagement with stakeholders from across the forest sector. It is likely that a cost benefit analysis will be the economic appraisal tool used for the new programme in line with the Department of Public Expenditure and Reform's Public Spending Code. If so, the aim will be to include as many of the social and economic costs and benefits as possible including the cost of tax exemptions.

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