A group of forestry and agricultural organisations has called on the government to intervene in a forestry partnership between Coillte and a UK investment fund.

London-headquartered Gresham House last week launched its new €200 million Irish forestry fund which is backed by the semi-state agency.

The new fund, which is aiming for a portfolio of around 12,000ha of new and existing forests, is supported by the Ireland Strategic Investment Fund (ISIF) which is managed and controlled by the National Treasury Management Agency (NTMA).

Gresham House has confirmed that the ISIF has invested €25 million in the fund to date.

Patrick Lawless, managing director, Gresham House, Ireland, has claimed the new fund will “create a platform for enhancing Ireland’s forestry sector, delivering real change and momentum and making a meaningful contribution to Ireland’s crucial afforestation ambitions”.

As part of its strategy plan Coillte wants to create 100,000ha of new forestry by 2050.

Forestry

Some of the country’s main forestry organisations have this evening (Thursday, January 12) issued a joint press statement following a virtual meeting earlier today where they “strongly opposed” the new partnership.

Those involved include the Irish Farmers’ Association (IFA), Western Forestry Co-op, Irish Forest Owners (IFO), Social, Economic and Environmental Forestry Association (SEEFA), Forest Owners Co-operative Society (FOCS), Association of Irish Forestry Consultants (AIFC), Agricultural Consultants Association (ACA) and the Limerick and Tipperary Woodland Owners (LTWO).

“We believe a situation where rural Ireland is being sold off must be avoided.

“If the minister [for agriculture Charlie McConalogue] and the Department of Agriculture, Food and the Marine (DAFM) fixed the licensing crisis, committed to timelines, and treated existing forest owners, such as those with ash dieback with empathy and respect, then afforestation levels would increase.

“We implore the government to step in and we call on all the people of Ireland and all our elected representatives to support this,” the groups said.

“We do not support Coillte’s strategic vision to act as an agent on behalf of foreign and national investment funds to transition 100,000ha of Irish farmland out of local farm ownership for afforestation by funds,” they added.

Coillte

The statement outlined the concerns of the organisations including the removal of land from rural ownership which they claim could be the equivalent of 1,500 average family farms.

They believe that the new partnership will give venture capitalists an “unfair advantage” over existing, young and new farmers and push them off the land.

“Farmers could be competing with Coillte for one in every three acres.”

The statement claimed that income such as forestry premiums earned as part of the new fund would not be spent in the local economy “as it would be if farm families or local people afforested these lands”.

“We believe this is government policy to meet afforestation targets at any cost. It is likely to be counterproductive. We do not support it. And it is a bad deal for Ireland.”

The organisations called on the government to ensure that no forestry premium or grant should be paid to investment funds.

They said that the ISIF should invest directly in Coillte to create new forests and that the semi-state agency should use their government dividend, which was €30 million in 2021, to plant new trees.

On Tuesday (January 10), Minister for Agriculture, Food and the Marine Charlie McConalogue confirmed that Coillte did not require ministerial approval for the new partnership.

McConalogue and Minister of State with responsibility for forestry, Pippa Hackett, are due to meet with the agency to discuss the matter.