Committee Reports > List of Committees > Dáil > 1986 > Committee on Public Expenditure > Report No. 21 - A review of state expenditure on The Forest and Wildlife Service

Appendix (iv)

Statement to Public Expenditure Committee

Chairman

Following the response made by my Department to the report of the PEC’s Advisory Panel I met the Committee’s consultant, Mr. John McCarrick, last week for what proved to be, I believe, a useful discussion. At his suggestion I propose, with your permission, Mr. Chairman, to make a brief statement designed to cover (a) the State Planting Programme (b) the Disposal of Timber from State Forests and (c) the Non-Commercial Activities of the FWS.

(a) The State Planting Programme

By 1922 the State forest area amounted to only 1,300 hectares. Under native Government there was a gradual build-up of annual planting to 1600 hectares by 1933 and to 3000 hectares by 1939. Following a marked fall-off in the 1940s (which, incidentally, 40 years on, is contributing to the shortage of sawlog in this decade, the Government in 1948 embarked on a more vigorous State afforestation policy of 10,000 ha. p.a. This target was first achieved in 1960 following a rapid expansion during the 1950s. During the 20 years from 1960 to 1980 the average annual planting rate was about 9000 hectares. Since 1980 the annual planting rate has fallen to 7000 hectares.

During the 60 years since 1922 the State forest estate has grown from 1300 ha. to nearly 340,000 ha. Because heavy planting dates from the late 1950s about half the present estate is under 20 years of age and so has yet to commence producing marketable timber. A further consequence of the age structure of the estate is that, while total production of timber is increasing steadily during this decade, a rapid expansion of large sawlog (from final felling) will not begin until the mid 1990s. We have to wait for the forests to mature.

By comparison, the private forest estate comprises 50,000 hectares (apart from a further 34,000 hectares under scrub).

Of the gross sum voted to the Forest and Wildlife Service in 1985 (£49 million), £4m is calculated to relate to non-commercial forestry activities i.e. Wildlife Conservation, Amenity, Private Forestry, etc, the balance of £45m is confined to State forestry.

The Gross Capital Allocation was £20m and the non-Capital amount was £29m; the net Vote was £36m.

(b) Disposal of Timber from State Forests

Despite occasional allegations to the contrary, the FWS does have a strategic policy for the exploitation of timber produced in State forests. A programme was devised with, and published by, the IDA in 1981 covering the creation of new outlets and the up-grading of existing outlets in both the sawmilling and pulpmill sectors, during the 1980s. Regular meetings are held by both organisations to monitor progress. An important part of the strategy is the part played (and funded by the FWS) by the Timber Products Division of the IIRS whose remit embraces the establishment of the strength properties of Irish timber and the active promotion of the use of Irish timber in the building sector. The success of this can be judged by the fact that Irish timber now commands 35% of sawnwood used in construction compared to only 13% in 1979. The FWS also has regular contact with the ITC and recently reached agreement with that organisation on a new Quota Scheme for sawmills.

I should mention, before listing the 6 methods of sale, that a Government-appointed inter-departmental committee which examined in detail the selling methods used by the FWS in 1984 and whose report was accepted by the Government endorsed the tender sales system.

The following principal systems of sale are used by the Forest and Wildlife Service to supply timber to the sawmilling and pulpwood processing industries to other outlets:

(Note: Total Sales in 1985 were 1,200,00m³)

1. Tender Sales

Sale by tender has been the traditional and principal system of sale used by the Forest and Wildlife Service. Under the tender system, timber lots for sale are initially valued by reference to such factors as species, quality, harvesting and site conditions, likely market interest and recent prices paid for comparable lots. A provisional reserve based on this evaluation is set. Details of individual lots are set out in 9 advertisements per year which contain 60/70 lots in various forests throughout the country. The advertisements are circulated to sawmillers and other interested parties who for nature trails, etc. In addition, eleven major recreational areas have been opened, called Forest Parks. Most of these were developed at the instigation of Bord Failte (who also contributed the bulk of the capital costs) because of their potential contribution to the tourism infrastructure of particular regions. The largest Forest Park is Lough Key, Co. Roscommon. With one exception, no new major development has taken place in this area in recent years because the sites already developed are adequate for the present. The current annual expenditure (£1.1 million) on Amenity now convers the maintenance of the 11 Forest Parks and the 400 odd Open Forest sites and is largely accounted for by costs of labour and machines.

One recent development is the construction of 20 wooden holiday chalets in one of our Forest Parks (Killykeen, Co. Cavan). These 3 and 2-bedroomed chalets are situated in a forest on the shores of Lough Oughter. The complex opened on the 31st of last month. The development, designed and built by OPW using exclusively Irish timber, was financed to the tune of £1.7 million by a Special Fund set up in 1980 by the EEC and the Irish Government to improve the tourism infrastructure in Border counties. A full financial appraisal was done before acceptance of the project by the Department of Finance and the EEC. Because of the regions attractiveress as a centre for coarse argling and based on Bord Failte’s research it is expected that there will be a year-long high occupancy of both family and visiting anglers.

(ii) Wildlife Conservation and Game Development

I have sympathy with the PEC - and indeed the Advisory Panel - in that the official accounting procedures of Government Departments do not readily show up the full cost of particular activities. For Game Development for instance, the figure for 1985 under Subhead G, i.e. £518,000 is almost entirely taken up by wages and expenses of the 47 Wildlife Rangers whose main concern is the enforcement of the Wildlife Act and advisory and educational activities. The figure does not include the salaries and expenses of technical and administrative staff or overhead costs associated with this work. The full cost is estimated to be £1 million per annum. Similarly the 1985 provision for Wildlife Conservation (£178,000) as shown in the Forestry Vote would rise to £500,000 if similar costs were included.

Both Game Development and Wildlife Conservation are geared to the country at large rather than to individuals or groups and thus does not readily lend themselves to the imposition of charges. Wildlife Conservation is concerned with conserving wildlife species, principally by the protection of their habitats. Game Development covers the fixing of open seasons for protected wild birds and wild animals, the licencing of various hunting activities, the enforcement of hunting and other provisions and advisory and educational

2. Large Sawlog Quota Scheme

The Quota system of sale provides for an element of continuity of raw material supply to sawmills in the interests of economic and efficient operation of the industry. The schemes objectives include (i) improving industrial efficiency, (ii) achieving further added value and (iii) contributing to import substitution in the construction timber sector. A revised scheme for 1986 has been agreed with the Irish Timber Council, the representative body of the sawmilling sectors. The revised scheme places greater emphasis than hitherto on the standards of drying, grading and presentation of sawn timber. The present scheme was revised arising from the recommendations of the previously referred to inter-departmental committee on timber sales and was drawn up in consultation with the IIRS and the IDA. Mills which qualify for quotas in 1986 may be allocated up to 40% of their average purchases of large sawlogs in 1984 and 1985.

3. Auctions

Sale by auction, in part substitution for tender sales, on a trial basis, also arose from the recommendations of an Inter-departmental Committee on timber sales. A “national” auction of timber lots took place in July 1985.

4. Pulpwood Supply Contracts

Long-term pulpwood supply contracts of which there are two, were essential to the setting up of two panel-based manufacturers to fill the vacuum resulting from the closure of the countrys four pulpwood using industries in the late 1970s and early 1980s. The mills provide a valuable domestic outlet for pulpwood derived from forest thinnings and residues from the sawmills which other domestic outlets with their limited facilities to use pulpwood would have been unable to provide.

5. Local Forest Sales

Local forest sales facilitate the disposal of timber to meet local demands. Control checks are carried out by the foresters immediate superiors and Audit Section within FWS Accounts Branch.

(c) Non-Commercial Activities

(i) Amenity

As the forest plantations established in the 1950s (and before) began to mature in the late 1960s, the FWS began a modest amenity/recreation programme which was called the “Open Forest Policy”. Over the years more than 400 “Open Forest” sites have been developed. These are listed in our Open Forest booklet and they provide facilities for car parking, forest walks, picnicing, The Wildlife Act does not in any event provide for the charging of fees for licences issued under its provisions or for any other activity. The Department of Justice, who are the responsible authority, issue 80,000 firearms certificates for which the current charge is £13. The FWS do not charge for the licences it issues (about 8,000) in respect of visiting hunters and deer stalkers.

Finally, Mr. Chairman, I would like to put a suggestion to you and your Committee. While the FWS was under examination during 1985 by the Forestry Review Group it was found helpful to arrange a short tour of some State forests for the Group members to enable them to see at first hand - and to question - such forest activities as plant production (in nurseries), planting and establishment of a plantation, construction of forest roads and harvesting of thinnings and fellings. If you and your Committee feel that this would be useful I will gladly arrange such a one-day tour in the Wicklow area.