Minister for Agriculture, Food and the Marine, Charlie McConalogue has met with the “pillar banks” to highlight “clearly” that his department will deliver on a new Forestry Programme.
In the recent meeting with banks, Minister McConalogue said he reiterated how “central” the forestry sector is to government policy.
The European Commission is currently reviewing the Department of Agriculture, Food and the Marine’s (DAFM’s) State Aid notification for the €1.3 billion Forestry Programme 2023-2027.
Once approval has been received, the DAFM will be in a position to launch new forestry schemes subject to finalisation of the Strategic Environmental Assessment, the minister said.
“To this end, I can confirm that my department received further correspondence relating to our application from the commission on Tuesday, June 6, which will require a response.
“My department will now respond to this correspondence comprehensively in as efficient a timeframe as possible,” Minister McConalogue recently told the Dáil.
Forestry sector
In response to a question raised by Deputy Cathal Crowe, he said that so far in 2023 over €47.8 million has been paid out to forestry companies and forest owners, fully Exchequer-funded.
“This is broadly in line with payments for the same period in 2022. We will continue to deal with payments in a timely manner, as has been our practice to date,” the minister said.
Deputy Crowe raised the question whether the DAFM would make a one-off payment to aid foresters in making their annual insurance payment, however this was rejected by the minister.
Registered foresters and forestry companies must provide evidence of renewal of professional indemnity insurance on an annual basis in order to remain on the list of registered foresters and forestry companies.
Stating that the DAFM does not intend to introduce a one-off payment to aid foresters in making their annual insurance payment, Minister McConalogue said:
“I am firmly committed to introducing a well-funded Forestry Programme which both meets the needs of society and that of the sector, and this will provide guaranteed long-term investment in the sector.”
Foresters are grappling with labour shortages and high input costs, particularly fuel and insurance costs, despite their product being in high demand, Deputy Crowe told Agriland.
Companies in the sector are “squeezed” and find it hard to function which is also due to the “huge” amount of time it is taking foresters to get licences approved, he said.
“Whilst the government is very pro forestry, the banks are dealing with other sectors in the economy that have quicker turnarounds for investments. And forestry simply isn’t one of those.
“I think it is important that the minister has held that dialogue and that needs to continue because there is a national push for afforestation.
“The forestry sector will grow but it requires a lot of investment. Timber can be lucrative when it is harvested but that is 30-40 years away,” Deputy Crowe said.
Afforestation
In total, 641ha have been planted so far this year up until the week ending Friday, June 16, the most recent Forestry Licensing Dashboard by the DAFM shows.
So far in June 128ha have been planted, while in the previous months 82ha, 127ha, and 190ha were afforested in March, April and May respectively.
The DAFM notes that these figures reflect afforestation that has been paid at first grant stage this year to date, i.e. approvals under the old programme but who are finalising planting in 2023.
The licences issued within the first six months of 2023 allow for 119ha of afforestation. Seven afforestation licences were issued so far in 2023, while 55 applications were received.
However, approvals under the Interim Afforestation Scheme via General De Minimis rose to 284, according to the DAFM’s Forestry Licensing Dashboard.
Those with valid afforestation licences issued before the end of 2022 can avail of the current planting season under the higher grant and premium rates proposed under the new programme.