The Government’s decision to cut forestry premia in the recent budget had undermined confidence in state contracts according to John Duffy, Fine Gael local election candidate for Drumlish.
The 8 per cent cuts have been widely criticised as the payments are part of long-term contracts entered into by the state to encourage farmers to plant trees on their land.
“Local farmers entered these understanding in good faith and they have been badly let down by the Government,” said Duffy. “Once land is set aside for forestry, it can’t be used for other purposes. People made decisions to plant trees based on very small margins and now the Government has pulled the rug on them.”
Duffy said that the cuts were of dubious legality, given that the payments are part of a long-term contract. He pointed out that some hasty decisions by ministers have had to be reversed.
“This is typical of the panic thinking of this Government. Why would farmers plant new tracts of land if they can’t have confidence that the state will keep their side of the bargain?”
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