Families are reeling from 'cut in forestry premiums'
Wednesday May 13 2009
Sligo IFA Forestry Committee Chriman Brendan Queenan said farmers are reeling from the government decision to cut forestry premiums by 8% and the effects are already being felt by the industry.
"The afforestation programme has been sold to farmers as guaranteed taxfree income for twenty years. This has formed the basis for farmers' decision to plant. Farmers will not plant if the Government does not honour its guarantee and reverse cuts to forestry premia."
Mr. Queenan said: "The decision to cut premiums has jeopardised the entire forest sector. If farmer confidence is not restored and the premiums reinstated there will be more job losses. This would be another blow for the rural economy where the majority of these jobs are located and could have serious implications for the long-term sustainability of the sector."
There have already been job losses in the sector, as many farmers have decided not to plant if forest premiums are no longer guaranteed said Mr. Queenan.
The forest sector sustains 22,500 jobs directly and indirectly according to recent research. Even if 5% of these jobs were lost due to a reduced planting programme, it could cost the Government in the region of €22m annually between social welfare and lost tax revenue compared with €7.5m they will save by cutting the premiums.
Mr. Queenan said: "The forestry programme operates on a skeletal budget and any cuts to the budget have major implications for development. A supported forestry programme will contribute to our economic recovery by ensuring the long-term sustainability of the sector, decreasing external environmental and energy costs and stimulating innovation and job creation,"
