I am delighted to have the opportunity to address fellow Senators on the important topic of forestry. I thank them for the invitation. It is timely that I bring forestry matters to the House, especially in light of the current focus on climate change, with COP27 now into its second week, and the urgent need for climate action.
It is well recognised that planting trees is one of the most efficient methods at our disposal to reduce carbon emissions and that forests have a vital role to play in helping us to address the climate crisis and global warming. The sustainable management of forests can also increase carbon sequestration and produces renewable wood products that act as carbon stores. Forests offer multifunctional benefits. They improve the environment not only in terms of climate change mitigation but also by enhancing biodiversity and water quality. They also contribute to the rural economy and provide health-enhancing recreational spaces for the enjoyment of all.
In order to increase tree planting and the sustainable management of forests, however, we must incentivise farmers and other landowners to so do. After all, the planting of trees is a permanent land use change. That is why I am so pleased to have recently secured funding of more than €1.3 billion for forestry. This will fund the new forestry programme from 2023-27, as well as continued premium payments to current forest owners. This €1.3 billion package is a vote of confidence in farmers, landowners, forest owners, nurseries, sawmills, public bodies and communities and, indeed, all other stakeholders in forestry. This comprehensive package increases premiums by between 46% and 66%, depending on the forest type. I sought these levels of increase because I believe them necessary to attract the level of interest we need to see in our afforestation schemes. It is my belief that the package will help to reverse the recent trend away from tree planting. The new programme will align with our ambition to reach 8,000 ha of new planting per year.
We know from extensive consultation across society that people wish to see more trees, would like greater diversity in our forests and very much value access to them.
These insights have certainly informed the development of our shared national vision and, in turn, our draft forest strategy and forestry programme. It is worth repeating our shared vision which captures our ambitions for forestry into the future. We want the right tree in the right place, for the right reasons and with the right management, to support a sustainable and thriving economy and society, and a healthy environment.
It is clear from the extensive public consultation we have carried out over the past year that the public wishes to see more diverse forests. The table of proposed grant rates and premiums that we have published shows a substantial increase in all broadleaf and diverse forest types. This a clear commitment by Government to encourage landowners to plant more diverse forests. In line with this thinking, Members will have seen that we proposed in the draft forestry programme to increase the minimum percentage of new broadleaf trees we wish to see planted to at least 35%. It is important to stress that this figure is simply an early indicative estimate of uptake based on past planting practices.
Members will note from the breakdown of the proposed grant and premium rates for the various forest types that Government has very clearly sought to incentivise the planting of native broadleafs and more diverse forest types. If farmers and landowners seek to take up these measures in greater numbers than have been estimated in the draft programme, my Department will continue to issue approvals for those forest types, provided all other conditions required for a licence to be granted are met. We have also put forward a new forests-for-water measure and we aim to encourage closer-to-nature forestry with an expanded continuous-cover forestry initiative. Furthermore, we wish to incentivise forest owners to deliver enhanced ecosystem services and to encourage reforestation that encompasses species diversity.
Positive farmer engagement will be critical to the success of the next forestry programme. I am very excited therefore by the potential for the new 1 ha native tree area scheme to be a viable option for large numbers of farmers to diversify their income, as well as an entry point for engaging with forestry. As Senators will recall from the time the relevant legislation passed through the House, farmers will not need to apply for a licence in order to avail of the scheme but, of course, they will have to meet the environmental safeguards that will form part of the scheme. I am confident the new scheme will bring new applicants into forestry and encourage those who already have trees to add more.
Also of particular interest to farmers will be the move from the standard 15-year premium to a 20-year premium. The change was sought by farming organisations and I am glad to deliver on it, as we will only achieve our ambitious forestry targets with our farmers on board. We will of course continue to support and incentivise productive forestry which is the bedrock of the forestry industry and supports rural jobs and the rural economy.
Earlier today, I spoke in this Chamber about the need to move to far greater levels of timber-based construction, and productive soft woods will be key to this. Clearly, there have been issues in the past with monoculture plantations which is why we are proposing to move to a position where Sitka spruce plantations will have a minimum broadleaf content of 20% on top of 15% space for nature.
All of these proposals are laid out in the draft forestry programme which is part of the implementation plan for the new forest strategy. Both the programme and the strategy are currently open to public consultation until 29 November. I strongly encourage all interested parties to engage with the consultation in advance of the finalisation of the strategy and programme. The new programme will very much depend on a well-functioning licensing and approvals system and we have been working hard on delivering such a system.
As is well known and, indeed, I have spoken to Members on this matter before, when I first took office we were faced with serious issues following a succession of EU and Irish court decisions in the complexity of the licensing environment and the requirement to meet exacting environmental standards. My Department and I have addressed these issues robustly and have taken a number of steps to resolve them. There has been considerable investment in resources with additional ecologists and forestry inspectors and additional administrative staff assigned to licensing. Furthermore, we have introduced efficiencies to the process and system which have helped streamline delivery. We remain firmly committed to continual improvement to achieve all possible gains in efficiency.
Important work undertaken this year was the expert independent legal and regulatory review of forestry licensing carried out by Philip Lee solicitors.
Following extensive stakeholder engagement, its report was published in June and it reaffirmed the requirement under Irish and EU environmental law for a robust licensing system as well as making a number of recommendations in areas where further efficiencies and streamlining could be achieved within the existing system. The project board for Project Woodland has responded to these recommendations and my Department will now finalise a plan for the implementation of the report.
The positive impacts of the steps we have taken to tackle previous backlogs in licensing can be seen in the increase in the number of licences issued. We have issued over 4,000 licences to date this year. The pace of processing has picked up significantly. We are issuing nearly 30% more licences than applications received and this means that the backlog continues to drop with faster turnaround times for new applicants. To give Members an idea of the progress we have made, the backlog has reduced from 6,000 in August 2021, to 3,700 in January of this year and now stands at 1,606. This means that while we still have work to do, we are moving in the right direction and a great deal has been achieved.
I am pleased to say that this year will be a record year for roads and timber volumes licensed. A total of 266 km of forest roads have been approved, which is already the highest on record for any given year. The volume of felling licences issued year-to-date is impressive at 8.4 million cu. m. This is in the context of the COFORD forecast for harvesting this year of just over 4.5 million cu. m. In terms of afforestation, we have issued 621 licences this year and we are prioritising the further clearance of afforestation files in the coming weeks. We intend to maintain the momentum in terms of issuing forestry licences but what we really need now are more applications. How do we persuade farmers of the benefits of forestry and get them to apply? I believe this new programme offers the opportunity to promote the benefits of forestry and I would ask all those interested in forestry to advocate for more planting.
We have reached a major milestone in securing funding for an ambitious programme but we are not fully there yet. We are engaging with the European Commission now to secure the state aid approval for the programme. This will be an intensive process and I will be keeping stakeholders updated as it proceeds. I believe we are on the cusp of a new and exciting era for forestry in Ireland and my mission now is to bring people on this journey with us. I thank Members for listening. I look forward to hearing their views and feedback and I am happy to answer any questions they may have.