State aid forestry schemes currently in place in Romania, Italy, Latvia, Poland, Denmark and Bulgaria can be adapted to new European Commission rules, according to the Sinn Féin spokesperson on Agriculture, Matt Carthy.

The TD for Cavan-Monaghan believes this raises questions about the Irish Government’s approach to its new €1.3 billion Forestry Programme with the commission.

The €1.3 billion 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 commission last November.

The European 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.

Deputy Carthy has claimed that it “seems bizarre the Irish government didn’t provide for a new programme under the old rules and then had worked to adapt it as other states are doing”.

“Considering the importance of forestry to rural economies and its role in Climate Action, it is incredible that new afforestation licence applications cannot be accepted since January 1st.

“The excuse from governments is that they had to wait until the new rules were in place before applying for an exemption for the Irish forestry programme,” the TD for Cavan-Monaghan.

The Minister for Agriculture, Food and the Marine, Charlie McConalogue recently confirmed to Agriland that the Irish government had not yet made a “formal submission” to the European Commission to secure sign off for its proposed new €1.3 billion Forestry Programme 2023-2027.

The minister told the Dáil this week that the government was continuing to “engage with the European Commission in regard to submitting that and getting as quick a reply as possible”.

But the Fianna Fail TD for Tipperary, Jackie Cahill, warned that in the meantime some companies will “need a rescue package”.

“It will be 2024 before companies involved in forestry will experience the financial benefit of the new programme.

“Contractors, nurseries, professional foresters and so on have a serious cashflow problem,” the Fianna Fail TD, who is also the chair of the Joint Oireachtas Committee on Agriculture, Food and the Marine, said.

He said it was essential that these forestry- related businesses were kept afloat because they would play a key role in helping Ireland to meet its climate action targets.

“We must recognise that this delay, which is outside the minister’s control, is causing huge financial pressure for the companies in question. I ask that a package be put in place to assist them with their cashflow problems,” Deputy Cahill said.