Minister happy with reduced forestry package

DESPITE cutbacks, the EU forestry aid package agreed last week by the Council of Agriculture Ministers provides a new platform to build on the success of Ireland’s forestry sector into the next decade, said John Browne, Minister of State at the Department of Agriculture and Food with responsibility for Forestry.

He said Ireland was almost alone among the Member States in consistently and vigorously arguing against the proposals to reduce forestry aid.

It had been proposed to cut planting grants from 100% to 40% of costs, the farmer-rate premium from a maximum of €725 to €500, and the premium payment period from 20 years for farmers, and 15 years for non-farmers, to just 10 years.

Under the terms agreed last week in Luxembourg, the planting grant will be 80% of costs in disadvantaged areas, which cover about 74% of Ireland, and 70% elsewhere; a premium of up to €700; and a premium payment period of 15 years.

In addition, the right to use state-aids to further enhance the package on offer has been confirmed by the European Commission.

The forestry sector will also be able to benefit from new measures, including innovation and technological improvement, amenity investment and agri-forestry.

IFA Farm Forestry chairman John Jackson said he found it hard to understand how the Council failed to agree a better deal, when the benefits of forestry for climate change and rural development are well known.

He acknowledged that Ireland’s Minister Coughlan and Minister Browne had negotiated the grant rate up from the initially proposed 40% and 50% base, but said the Government will now have to step in and top up the grant and premium levels, if forestry is to remain an attractive option for farmers.

Funding to back up the political agreement on rural development must await the completion of EU budget negotiations.