Private forest sector facing ‘meltdown'

By Pat O' Keeffe

The private forest sector is facing ‘meltdown' unless the budget allocation to the Forest Service is increased.

John Phelan of Woodland Contractors in Galway estimated that €30-€40m of funding over last year's allocation would be required to ensure a viable private planting sector. He estimated that between 10,000 and 12,000 hectares will be planted this year, but suggests that this figure will collapse to just 2,000 hectares next year unless funding is increased. Much of this year's planting was supported by carry-over capacity within the industry. This will not be available next year, hence the likely collapse in planting unless additional funding is secured.

"Next year is the 100th anniversary of State involvement in forestry and ironically we are looking like it could be the year when we go back to scratch,'' he said.

He added that the industry cannot operate on a stop-go basis and a collapse in planting will affect the value of our existing forestry stock. The industry has already made a strong case to Government on the basis of a report by consultant Peter Bacon which indicated a €1.59 return for every €1 invested in the sector.

Meanwhile, sources in the industry expect interest in planting to decline in the short-term as farmers re-assess their plans in the light of changes to the CAP over the next three years.