Annual rates of afforestation have dropped dramatically and this trend needs to be reversed according to Forest Industries Ireland. FII said that government spending on forestry has declined from €112 million in 2011 to €69 million in 2021 (-40%).

The group is calling for a significant increases of 40-50% in afforestation grant rates and forestry premiums in the budget allocation to the new national Forestry Programme.

It said that greater funding to invest in personnel and technology within the Forestry Service to enable it to deliver a properly functioning administrative and regulatory platform for the forest sector is also needed.

Forestry

FII argues that increasing the number of forest owners and the afforestation rate will yield billions of euro in timber sales for farmers and other forest owners, as well as creating 6,000 new jobs in the sector in the years ahead.

The group said that if Ireland planted 8,000ha of new forests each year, these new forests alone would add 12 million tonnes of CO2 savings to our forestry carbon removals in the next 20 years, valued at €700 million at forecast carbon prices.

The sector already makes a €2.3 billion contribution to the national economy and provides important biodiversity and ecosystem services and recreational resources, according to FII.

FII director, Mark McAuley said: “The current annual planting rate of circa 2,000ha indicates that the afforestation schemes are not an economically attractive land use and cannot compete with alternatives such as the leasing of land.

“It is abundantly clear that both forestry grants and premiums must be increased if we are to reverse the downward trend in afforestation rates and move towards the government targets for afforestation which are 8,000ha per annum and increasing.

“Equally, the Forest Service in DAFM[Department of Agriculture, Food and the Marine] appears under-resourced and requires additional investment in personnel and systems to enable it to provide efficient processing of forestry licences, invest in technology, and dedicate resources to the much-needed reform of the regulatory system,” McAuley added.

FII proposal for Budget 2023

Afforestation grant rates: Currently range €2,740-6,220/ha across the GPCs/torest types. These rates are now below cost and should increase by 40-50% and be linked to inflation going forward;

Longer durations of 20 years should be considered across all forest types and longer for native woodland, according to FII.

The group is calling for a significant increase in forest road grants to deal with increased costs and standards. This will require an increase in dedicated resources to manage the administration of the forest roads scheme as well as higher grant rates.

There also needs to be greater flexibility in the 25m/ha limit. Some sites are irregularly shaped and 25m/ha is not sufficient to adequately road the property, according to the pre-budget submission.

Ash Dieback Scheme: FII said that the current Ash Dieback RUS Scheme should be replaced by a new scheme to include full planting grants, the option to plant conifers, and 15 years of new premiums.

“It is critical that funding is provided for such a scheme, and we support owners who have suffered losses from ash dieback. This issue is also greatly undermining confidence in the Forestry Programme,” the pre-Budget submission stated.

FII said it has long been calling for the reintroduction of a comprehensive reconstitution scheme and financial provision will need to be made for this.

Forestry regulation and administration: Increased personnel and resources are part of the required solution to speeding licensing and reforming the regulatory system for forestry, according to the group.

It is calling for an increased administration budget for the department to increase personnel and invest in improved I.T systems.

Training: Increased professional training and the use of apprenticeships will be useful tools in supporting the development of the sector, according to FII.