Enraged foresters to sue Government over payments cut
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The Department of Agriculture faces legal action over its decision to reduce forestry premia.
As growers received their payments on Thursday less the 8pc cut, director of Mid-Western Forestry Nicholas Cotter warned legal proceedings would issue in the next week.
"The feedback we're getting from our clients is that they are absolutely enraged," Mr Cotter said.
"Some have sought legal advice and a senior counsel said there is a clear breach of contract on the part of the Government.
"What they were promised was 20 years of guaranteed premiums. The Government has now breached that contract and that's according to rather expensive legal opinion."
Mr Cotter has called on the Department to honour the contract it made with growers. He said the future confidence of the industry depended on it and farmers needed to feel they weren't being "hung out to dry".
"These people were sold forestry and they were given a booklet in which in was clearly stated in articles 9.14 and 9.11 the circumstances in which premia could be reduced and these have not been met.
"It's illegal and I question the Government's commitment to forestry," he said.
Meanwhile, the Irish Timber Growers' Association (ITGA) has called on the departments of the Environment and Energy, Communications and Natural Resources to fund the €7m cut to the sector.
Its technical director Donal Whelan said: "We're encouraging the Green Party to take a more active role in forestry. Less than 10pc of the land here is planted which, other than the Netherlands, is the lowest in Europe. The average is 36pc."
According to Forestry Service figures, the number of hectares committed to forestry has fallen for the past number of years. The ITGA fears the latest cut will discourage more farmers from planting their land.
"What we're concerned about is the affect these cuts will have on the future confidence of the industry," Mr Whelan said.
"Last year, approximately 6,000ha was planted. The figure was 6,900ha in 2007, 8,000ha in 2006 and 10,000ha in 2005. The Government's own target is 10,000ha per annum and not reaching this is going to cost the tax payer more because the Government will have to purchase additional carbon credits to meet its Kyoto commitments.
"It has already been estimated that by sticking to the targets the tax payer would be saved €220m over the next five years."
- Majella O'Sullivan
