No change in forestry grant and premium levels

FORESTRY grant and premium levels remain unchanged,” said Minister of State John Browne this week in an angry Dáil response to what he called “wild allegations” from the forestry industry.

Through the Irish Forest Industry Chain, companies in the forestry sector have estimated that Government expenditure cutbacks announced in the Book of Estimates will cause 1,160 job losses and a €44 million loss of output in the rural economy.

Minister Brown said the average spend in the past five years has been €90 million.

“The spend for this year is €82.5 million, and there will be a viable planting programme for next year which will satisfy the industry”, he said.

He said the allocation for forestry in 2003 of €82.58 million has to be seen not only in the context of the general budgetary situation but also of expenditure in this area over recent years and the funding commitment in the National Development Plan.

In the NDP, expenditure of more than €900 million has been designated for forestry.

In the Dáil, Fine Gael’s Deputy Simon Coveney claimed expenditure cutbacks will devastate the forest industry, and that the area for afforestation next year will be halved.

“This means that half the stock in tree nurseries throughout the country will be unusable.”

“As many as 20 million young trees which have been prepared over the past three years will not be planted.”

He said the National Council for Forest Research and Development commissioned Dr Richard Moloney of UCC to assess the impact of cutbacks in the Book of Estimates, and Dr Richard Moloney has predicted the loss of about 44 million to the rural economy.

“Does the Minister of State accept that the cutback of €22 million will mean a saving of only 11 million to the Department, because the other half represents EU matching funding?”

“Even though the Exchequer may save 11 million, we will lose €22 million in direct payments to the rural economy.”

“In fact it is estimated by Dr Moloney that there will be a net loss to the Exchequer,” said Deputy Coveney.

Minister Browne said he did not accept Deputy Coveney’s allegations.

Meanwhile, Donal Magner, chairman, Irish Forest Industry Chain, predicted after a meeting with Minister Browne that Government cutbacks will knock 60% off the Government annual planting target of 20,000 hectares. IFIC will work to have cutbacks reversed, he said.