Coillte revelations have ‘damaged’ forestry: Doyle

Minister calls on Coillte to restore trust and blames ‘legacy problems’ for payment delays to farmers

FORESTRY Minister Andrew Doyle has challenged Coillte to undo the “damage” done to the confidence of farmers and other potential tree growers.

Mr Doyle said the revelations of the past week over payment delays and a lack of contact by Coillte in long-established forestry partnership schemes had damaged ongoing efforts to promote forestry in Ireland.

“There is no doubt that damage has been done and there were serious legacy problems with Coillte.

“The big challenge now for the organisation is to resolve these problems as quickly as possible and that will be the ultimate test of them,” Mr Doyle told the Farming Independent.

His comments come as the Gov- ernment is to offer higher grants and premium rates for planting trees in a drive to increase afforestation rates to help achieve targets on climate change emissions. Ireland has fallen short of the targets of planting 7,100ha a year as the attention focuses on emissions from agriculture.

The Wicklow Fine Gael TD (pictured inset), who has a direct knowledge of the forestry business, said that the Coillte problems were “legacy issues.” He said some of it was due to the recession and recruitment embargoes which reduced the numbers of foresters.

Investment

“Maintenance is required, be it in land, machinery or business relationships. And it is clear that has lapsed in some cases. Now that must change,” added Mr Doyle, ahead of meeting Coillte in the coming days.

Coillte along with the farm organisations and a number of affected farmers are due to come before the Oireachtas Agriculture Committee later this month to discuss issues raised.

Asked if they feel it will damage the Government’s forestry drive, a Coillte spokesman insisted commercial forestry “represents an excellent investment proposition” and stated it “constantly works to improve communication with our farm partners”.

Coillte have confirmed they have begun a detailed review of over 600 farm partnerships agreed between 1993 and 2012, and expect issues with less than 50 partnerships. Some farmers have complained that they have not received payment for thinnings. Coillte stated most of the agreements were based on thinning not taking place before year 20. However, it did occur earlier in a number of cases. “During its review of its farm partners Coillte has become aware that in a very small number of cases, payments to farm partners have been missed. “This is highly regrettable,” it stated, adding that the cases would not exceed single figures. It has hired KPMG consultants to independently review how the farm partnership payments are calculated. A helpline set up has received over 55 calls, with 25 issues resolved, around 20 on track and eight complex cases being examined. Coillte admitted communication has “fallen short” in the past and it will provide an annual statement detailing any payments made, due and the calculations involved.

Oireachtas Agriculture chair Pat Deering said the key issue is “transparency” and clarity for all involved in the partnerships, with concerns raised over non-payments in some instances. He said farmers would be able to air their concerns in the committee meeting.

Joe Codd, from commercial forestry company Veon, said they have been fielding a high number of phone calls from confused farmers after Coillte concerns were raised publicly.

Mr Codd said they have been informing farmers who contacted them that the issues are not relating to those who have planted their land as part of the normal afforestation scheme but specifically to some Coillte partnerships. IFA national farm forestry chair Pat Collins said it was important that ongoing management issues with the partnerships were resolved and all outstanding payments issued as quickly as possible.

“Farmers entered into the farm partnership contracts in good faith; they saw Coillte as an extension of the Government. It is important, if trust is to be restored, that there is greater transparency on the models used to calculate their annual payment so farmers understand how their crop was valued,” said Mr Collins.

Coillte has apologised to its farm partners who had stated they were frustrated with the lack of information about payments and how they are calculated.

The mid-term review of the Forestry Programme has seen a 7pc increase in all broadleaves and diverse conifer grant categories and a 2pc increase in premium rates for all plantations greater than 10 hectares. As part of a bid to increase broadleaf planting, the minimum mandatory broadleaf requirement for each site has been increased to 15pc.

Mr Codd said the move would probably increase the level of “afforestation in broadleaves and in native woodland”.

He said it was a viable option for farmers who felt they were not making adequate returns from farming as they are able to keep the holding and it is income tax free.

“It is clear from the midterm review – that the Government and Department of Agriculture are sending out strong signals that they are supporting forestry in Ireland — agro forestry, roads scheme, grants — everything is being strengthened. They are looking at it as a big incentive in Ireland. It is good news for farmers,” he said.