IFA claims budget decision to slash forestry premiums by 8% leading to job losses in the sector

THE budget decision to cut forestry premiums by 8% is already costing jobs in the industry, the Irish Farmers Association has claimed.

IFA president Padraig Walshe said the afforestation programme has been sold to farmers as guaranteed tax-free income for 20 years.

“This has formed the basis for farmers’ decision to plant. But farmers will not plant if the Government does not honour its guarantee and reverse cuts to forestry premia,” he said.

Mr Walshe said there have been job losses already in the sector as many farmers have decided not to plant if forest premiums are no longer guaranteed. Recent research showed that the sector sustains 22,500 jobs directly and indirectly.

The cost to the Government, if even 5% of these jobs were lost due to a reduced planting programme, would be about €22 million annually, between social welfare and lost tax. The amount saved by cutting the premiums is €7.5m.

Meanwhile, Forestry Minister Tony Killeen has asked the Forestry Liaison Group to consider new overall priorities within the budget available in 2009 and, based on that, to recommend a set of policy initiatives that in its view will ensure continued confidence in the sector.