The European Commission has confirmed it is in “contact” with the Irish Government in relation to the new €1.3 billion Forestry Programme but “cannot comment on the content of these contacts nor prejudge their timing or outcome”.
Details of Ireland’s next Forestry Programme 2023 – 2027 were first unveiled last November by the then Taoiseach, Micheál Martin, Minister of State with responsibility for Forestry, Pippa Hackett, and Minister for Agriculture, Food and the Marine, Charlie McConalogue.
The programme is subject to state aid approval by the European Commission before it can be implemented in Ireland.
According to the Department of Agriculture, Food and the Marine (DAFM) “a pre-notification” for state aid approval was submitted to the European Commision in November.
New EU forestry sector state aid guidelines
The Irish Government was aware when it submitted this notification that general guidelines for state aid in the agricultural and forestry sectors were due to expire in December 2022.
The commission adopted new guidelines for state aid in the agricultural and forestry sectors and in rural areas on December, 14 2022, which then came into effect on January, 1, 2023.
Under these guidelines the new Forestry Programme will be reviewed by the commission in order “to identify and assess the potential distortions of competition and trade” and to “evaluate whether the aid serves to create or maintain inefficient market structures”.
It is understood DAFM are engaging “bilaterally” with the relevant directorate-generals in the commission in relation to securing approval for the 2023-2027 Forestry Programme.
But Agriland has learned this process could “take months”.
In the meantime Minister McConalogue has approved an interim afforestation scheme and an interim forest road scheme based on the De Minimis rule – which effectively makes the schemes exempt from state aid rules – until a decision has been granted by the commission on the 2023-2027 programme.
EU state aid rules dictate that DAFM cannot issue new afforestation or grant aided roads licences under the interim arrangements.
Concerns over delays to new forestry programme
However organisations such as the Social, Economic Environmental Forestry Association of Ireland (SEEFA) – which includes private nurseries and private forestry companies – are understood to be growing increasingly concerned about any potential “delay” to the Forestry Programme 2023 – 2027.
In correspondence, seen by Agriland, SEEFA has warned Minister Hackett that forestry companies and foresters are “facing a prelonged period without work which will result in laying off contractors”.
SEEFA also highlighted to the minister that “10 million of unsold nursery sapplings” may have to be destroyed which would “threaten the survival of the forestry nursery sector in Ireland” if there is delay to tree planting programmes.
The organisation said in its experience DAFM was “no longer accepting afforestation applications” and all other forestry support schemes “have been put on hold indefinitely”.
“Effectively this means the entire pipeline of work for our sector is now terminated,” it wrote to the minister.
Dead ash trees
SEEFA also raised the issue of dead ash trees which is said were becoming a “real health and safety concern” within existing plantations.
“Works on removing decaying trees must commence immediately or it is only a matter of time before serious accidents are reported with rotten trees breaking in strong winds.
“Again we are hearing that all these works have also been suspended indefinitely due to the programme delay,” it stated.
Agriland understands that SEEFA is seeking an “urgent” meeting with Minister Hackett.
In the meantime Senator Victor Boyhan has scheduled a Commencement Matter in the Seanad next week to raise ongoing issues identified in the SEEFA correspondence with Minister Hackett.
According to Senator Boyhan, who is also a member of the Oireachtas Committee on Agriculture, the forestry sector in Ireland is clearly “in crisis”.