Committee Reports::Report No. 41 - Forestry Policy in the European Community::07 March, 1979::Report

REPORT

Document Examined

1. The Joint Committee has examined a Communication sent by the Commission to the Council on 7th December, 1978 concerning forestry policy in the European Community [R/3332/78 (AGRI 916) (FIN 906)]. It has also considered the draft Council Resolution concerning the objectives and principles of forestry policy and the draft Council Decision to set up a standing forestry committee which are included in the Communication.


Contents of Communication

2. In its Communication the Commission indicates “its intention to propose the development of a common forestry policy but only in the sense of having some clearly defined objectives and principles of national forestry policy which are common to all Member States”. As a first step it is proposing that the Council adopt a Resolution defining those objectives and principles. It is also proposing the creation of consultative machinery in the form of a permanent forestry committee.


3. In its Communication the Commission deals with the following aspects of forestry policy:


(a)Structure and Ownership,


(b)Wood Production including recycling of wood products,


(c)Conservation of Nature and Protection of the Human Environment,


(d)Public Access and Recreation,


(e)Wild Life Management, and


(f)Instruments of Forestry policy including organisation, legislation, taxation, incentives, research and development, education and training, information, consultation and public relations.


Forestry in the Community

4. Forest covers 31 million ha or 21% of the total land area of the Community, about the same as the area occupied by cereals and one third of the area devoted to farming as a whole. France alone accounts for 45% of the total forest area and, together with the Federal Republic of Germany and Italy, for almost 90%. These countries are not only the largest but also, with the exception of Luxembourg, the most densely wooded in the Community. Sixty per cent of the forests are privately owned and ownership of the remaining forty per cent is shared almost equally between the State and other public bodies.


5. Wood production in the Community has fluctuated at around 80 million cubic metres which represents about 40% of requirements. All the Member States have a trade deficit in wood and wood products. The overall Community deficit amounts to 8,000 million EUA annually and is second only to that of oil. The deficit is likely to increase: it is estimated that between now and the year 2000 requirements will increase by 2% while production is expected to increase by about 1% annually assuming there is no change in policies.


Forestry in Ireland

6. Forest accounts for 5% of the land area, the lowest percentage in the Community. Seventy-seven per cent of Irish forest is State owned. In 1977 the acreage held by the Forest and Wild Life Service amounted to 854,000 acres, 670,000 of which were under forest crops while the acreage of forest in private ownership was 202,000 acres. Present policy aims at the acquisition by the State of 24,700 acres annually for afforestation. In 1976 the acreage actually planted was 21,950 acres.


Community Involvement

7. Forestry is not specifically referred to in the EEC Treaty and the question arises whether the Community is entitled to involve itself in the forestry policies of the Member States. The Joint Committee is of opinion that forestry policy is necessarily linked with the policies pursued in relation to agricultural structures as well as with regional policy. For this reason the Committee believes that the Community has a legitimate interest in working out an EEC forestry policy that would help to achieve the aims of the related policies.


8. A financial contribution from EAGGF is already available for the financing of certain forestry projects. In 1974 the Commission proposed the adoption of a Council Directive on a new method of Community aid and that proposal was dealt with in the Nineteenth report (Prl. 5138) of 10th December, 1975 of the former Joint Committee. It is understood that the proposal has not been accepted by the Council and that the Commission is considering amending it perhaps to limit Community aid to the disadvantaged areas.


Direction of Community Policy

9. The Joint Committee considers that the draft Council Resolution proposed by the Commission sets out objectives and principles which should be generally acceptable and which in any event would allow Member States a wide freedom of action in pursuing their own policies. As far as the draft Decision to set up a standing committee is concerned the Committee is advised that this is intended merely to formalise existing arrangements.


10. The Commission does not attempt in its Communication to work out how exactly the Community should intervene in the area of forestry policy assuming that the Council agrees that such intervention is desirable. The Joint Committee notes that the Commission does envisage possible provision of financial incentives to help achieve agreed objectives and to contribute to the development of other Community policies. The Committee would welcome such assistance being provided with the object of advancing the Community regional policy as well as aiding its agricultural policy. The Committee also notes with interest that the Commission considers that the Community “could exercise a useful stabilising influence” to counteract the effect of short term fluctuations in the economic situation on forestry programmes and it recommends that the Commission be invited to make specific proposals. As far as national legislation is concerned the Committee is pleased to note that the Commission agrees that no useful purpose would be served by any overall harmonisation.


State and Private Forestry

11. The draft Directive which the Joint Committee's predecessor considered in 1975 markedly favoured private forestry over State schemes and there is nothing in the Communication of last December which leads the Joint Committee to believe that the Commission is not still more concerned with the needs of private forestry. In the Committee’s view it is essential if justice is to be done in the Irish situation that any Community aid made available for private forestry should be available equally for State forestry. At the same time the Committee agrees with its predecessor that something more might be done in Ireland to encourage private forestry without endangering the State programme. In this connection it notes that the Council of the IAOS is interested in developing a co-operative forestry scheme and that it has proposed that a pilot scheme be carried out in the West of Ireland. This type of scheme is one that might commend itself to the Community as meriting assistance and the Committee recommends that this aspect of the matter be pursued.


Chipboard Industry

12. In light of the picture drawn by the Commission of a substantial trade deficit and the likelihood of a rise in overall demand it is difficult to understand how any industry producing wood products in the Community can be finding it difficult to remain viable. Nevertheless, the Joint Committee understands that this is precisely the position of the two factories in Ireland which produce chipboard. It has been represented to the Committee that low cost imports from third countries are contributing to the difficulties which the factories in question are experiencing. In the Committee’s view it makes little sense to allow existing factories to go under if the need is for making the Community less dependant on imports. The Committee recommends that the matter be pursued with the Commission.


Debate in Seanad Éireann

13. In view of the importance of forestry policy in the Community the Joint Committee requests that a debate take place in Seanad Éireann. In this connection the Joint Committee refers to the Order of Seanad Éireann of 14th February, 1979.


Acknowledgements

14. The Joint Committee wishes to express its sincere thanks to the Irish Farmers' Association and An Taisce for the considerable assistance they gave it in its consideration of the Commission document.


(Signed) MARK CLINTON,


Chairman of the Joint Committee.


7th March 1979.