Budget cuts blow to forestry plantings
Hopes to make forestry more mainstream have been dashed by the 8pc cut in premia, the Irish Timber Growers' Association (ITGA) has claimed.
Technical director Donal Whelan said when growers committed to planting their lands, they had effectively entered into a long-term contract with the State.
The ITGA has called on the minister to honour the premium payments made with growers at the time that they entered into this contract.
"This is a long-term investment and if growers feel that, halfway through, the Government can revise it, it will undermine their confidence in future planting," Mr Whelan said.
"The issue is that there is no way out for growers under forestry legislation. They can't just decide to fell the trees and put the land to another use.
"They're tied in whether they like it or not as they have to pay back the grants if they breach these conditions."
The ITGA also claimed that the budgetary decision could have a devastating effect on the rural economy and the estimated 16,000 people employed in the sector.
"We all know that the State finances are in a desperate situation, but this year forestry was only allocated €127m, less than 1pc of the whole agriculture budget," he added.
Mr Whelan estimated that the forestry sector could save the taxpayer €220m over the next five years as output from the industry accounted for almost 1pc of GDP.
He also noted that it was the country's only carbon sink and was set to play a pivotal role in the National Climate Change Strategy.
"It's not the end of forestry, but we had reached a turning point where it was going to become mainstream and these cuts risk turning that on its head," he said.
Meanwhile, the Minister of State with responsibility for forestry, Tony Killeen, has defended the budget cuts.
"Notwithstanding this reduction in premia levels, I am confident that, with the 100pc establishment grants and the maintenance of further significant expenditure on support schemes, the overall forestry package still provides an attractive land-use option for farmers," he said.
- Majella O'Sullivan
