Matt Shanahan Questions State Bias in Forestry Policy
Matt Shanahan raised concerns about a perceived policy bias favouring the state sector over private investors in forestry. He challenged the government over the Coelchia and Gresham House arrangements and asked whether private investment vehicles and a forestry agency have been considered.
Questions on state bias and licences
Shanahan pointed to licence figures for 2022 to illustrate his concern: Coelchia achieved 110% of licences, private felling achieved 80%, and private (farm) afforestation achieved 60%. He also cited department targets showing only 67% of domestic licences were achieved from 2020 to 2022.
Private investment and fund management
He asked whether the government has considered any private investment vehicle that could take on the role of Gresham House in future, enabling domestic investors to participate in the afforestation programme. The question seeks to open fund management to private and domestic investment.
Proposal for a forestry agency
Shanahan asked whether it is time to establish a dedicated forestry agency to oversee the work, help meet targets and ensure rural and domestic growers are not disadvantaged by current policy settings.
Government response and national afforestation targets
The minister responded that the objective is to increase national forest cover from about 10% to 18%, which will require expanded planting by the state through Coelchia on public land, greater uptake by farmers and private investment, including domestic Irish investment funds.
New forestry programme incentives for farmers
The minister said the new forestry programme aims to make planting more attractive for farmers by keeping the single farm payment, extending premiums to 20 years instead of 15, offering tax-free income at the end in many cases, and increasing premiums by 33%.
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There has been much discussion on the Coelchia and the Gresham House deal and much of the issues have been aired already but could I just focus on the policy if you would please around it and that is the policy to favour the state sector over the private sector. In 2022 in terms of licences achieved, Coelchia achieved 110% of licences whereas private felling achieved only 80% and private afforestation, in other words farm afforestation only achieved 60%. and in actual fact if you go from 20 to 22 even by the department's own target figures only 67% of licences were achieved for the domestic sector so I wonder can we look at this bias into the future in terms of the policy can I ask you two questions around it one in terms of future fund management has government considered any private investment vehicle that could do the job of Gresham House into the future to allow domestic investors take part in the afforestation program and secondly is it time now to establish a forestry agency in order to oversee the very important work and to try and hit these targets and to ensure that rural and domestic growers will not be disadvantaged. Thanks Deputy, our objective here is to go from a situation whereby only about 10% of the country is under forest to where we get up to 18% almost doubling the amount of country that is afforested and that is going to require the state through Coelchia planting more forest particularly in public land. It is going to require farmers to plant more trees and it is going to require private investment as well and of course that can come from anywhere including domestic Irish investment funds. But the people who will make the biggest difference here are farmers in my view they own most of the land in the country and by getting involved in forestry they can make the biggest difference and that is why under our new forestry program we are trying to make it much more attractive for farmers to do so. Keeping the single farm payment, 20 years of premiums instead of 15, tax-free income at the end of it in many cases and also a 33% increase in premiums. the low-est
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