November 6th 1999

Awaiting the new deal

By Hugh Scanlon

It's well known at this stage that the Forest Service has submitted a set of proposals to the EU Commission looking for large increases in grant and premium payments and major changes designed to make the forestry option more attractive to landowners.

These proposals would mean increases ranging from 20 to 50 per cent in the rate of the forestry premium, depending on the species of tree and the part of the country, with increases of 15 to 30 per cent in the rate of grant aid.

The Forest Service seems to be reasonably confident that this package will be approved by Brussels, but at this stage no one is prepared to name a likely date for the official thumbs up. Officials say there is no reason they know of why clearance shouldn't be imminent, but others in the sector do not expect it to be before mid-November, and the most pessimistic view puts it into early next year.

There is widespread dismay among forestry contracting companies that this scenario should be unfolding once again. At last week's Ploughing Match they reported that there is big interest among landowners for the proposed package, but few are prepared to sign contracts until they hear the official announcement.

This was the problem that arose in exactly the same circumstances six years ago, which caused planting to come to a virtual standstill. In the present situation, there is no need for this mess to be re-enacted.

The reality is that the proposal is for the package to come into effect from the beginning of this month, so any planting that takes place this season will benefit from agreed increases.

Clearly, no one can absolutely guarantee that the proposed increases will be agreed by Brussels, so if your decision to plant is contingent on all the elements falling into place, you will have to wait for the official announcement. However, many landowners could decide to plant in the expectation that the grant and premium payments will be significantly better than they are at present.

If you have decided to plant, there is no reason to wait any longer before applying for pre-planting approval.

Once the package is in place, the Forest Service is likely to be snowed under with applications and, at that stage, any further delays will be critical.