Proposed Changes to Forest Road Grant Scheme

January 05, 2012

The Forest Road Grant scheme was suspended in December 2011 and new scheme is set to be presented to the industry for consultation in 2012.

Under the old scheme a maximum grant was available of €45 per linear metre at a density of 25 metres per hectare with the following conditions:

 

 

• The plantation had to be fit for thinning within 2 years
• A current felling licence had to be in place
• Grant aid would only apply to areas where the forwarding distance is 400 metres maximum
• Grant was paid in two stages - 80% after road was constructed and passed for payment by forest service inspector and 20% once the first thinning had been carried out.

 

 

The Forest Service are now proposing the following changes:

• Reduce the grant per linear metre from €45 to €35
• Reduce the density from 25 to 18 linear metres per hectare.
• Forwarding distances increased  to 600 metres
• All payments net of VAT

 

 

Comment

This is a major shock to the industry for a scheme that has only just been revamped and tightenend up considerably in 2011.  It has gone out for consultation and there will be a storm of legimate protest from foresters and everybody concerned - whether it will be enough to reverse this proposal is anybody's guess.

However if and when the new scheme is introduced plantation owners with crops fit for thinning should still avail of the new scheme as it vitally important that plantations are thinned on time and in a proper manner and a road and/or central stacking area is essential to ensure a successful thinning operation.