Written answers

Thursday, 20 April 2023

Department of Agriculture, Food and the Marine

Forestry Sector

Photo of Michael LowryMichael Lowry (Tipperary, Independent)
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136. To ask the Minister for Agriculture, Food and the Marine if he has plans to provide immediate financial assistance to the private forestry sector given the failure of his Department to ensure the forestry programme was introduced in January 2023; and if he will make a statement on the matter. [18536/23]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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I am acutely aware of the cashflow difficulties being experienced by some registered foresters.

My Department has been working with the industry to explore solutions to these temporary problems and I met with the pillar banks where support for the forestry sector was emphasised. The Department is focused on maximising the volume of work available while ensuring prompt payment for work completed. To this end we have reviewed all options available and have introduced a suite of measures to assist in this regard.

  • All applications for afforestation licences under the previous Programme that are in the system are being worked on and processed in the normal manner, progressing to the point just before certification and approval. The aim is to have all the work done on as many grant aid files as possible so that approvals will be ready to issue as soon as the State Aid approval for the new Programme is granted. These sites would then be immediately available to commence.
  • I launched the Interim DeMinimis scheme for afforestation and roads to help bridge the lacuna between the old and new Forestry Programmes. As you are aware, there are 1,023 approved afforestation licences with 7,591 ha ready for planting. To date a total of 248 applications have been approved under the interim Afforestation scheme (via general de minimis) representing 1,533 hectares. We have received completion notices for 105 of these contracts representing 592 hectares. We have been notified that a further 198 applications or 553 hectares have commenced work. The portal to enable the submission of applications for payment opened on Wednesday 29thMarch. Applications for payment for these contracts have been submitted at a steady rate since the portal opened and will now be subject to immediate processing. .
  • I also launched an interim scheme for the reconstitution of ash dieback. This scheme has attractive additional features which will enable work to commence on those sites with current valid approvals.
  • To 31stMarch 2023 there has been a total spend of €42,728,570. Of this €4,392,592 has been paid in grants compared to €4,534,476 in 2022 a difference of €141,884. This expenditure represents a significant increase in spend for support schemes and the planting of 195 hectares. However, this planting figure does not include any expenditure under the Interim de minimis schemes. We estimate that approximately €4 million of works are underway.
My Department has been involved in intensive negotiations with the EU Commission to secure state aid approval for the new Forestry Programme and a formal application is now being made and will be submitted in full by the end of this week. This will allow the EU Commission to make a formal decision on the new Programme and will clear the way for the acceptance of applications once approval is received. The opening of the Programme is also subject to the completion of the Strategic Environmental Assessment which is nearing completion.

Along with Minister of State Pippa Hackett, who has responsibility for the sector, we are committed to building a strong future for everyone in the industry.

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