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There is no recession in the country’s forestry sector as
wood prices soar, according to the Irish Timber Growers Association
(ITGA).
ITGA
technical director Donal Whelan said forest owners in Ireland
are achieving record prices for their wood and sawmills. "Over
the past six months, wood prices paid to timber growers have
more than doubled and, even at current price levels, the industry
cannot meet demand for its output.
"Incredibly, roundwood is being imported from Scotland by
sea to supply our timber industry and this is now likely to
continue into the future. The simple fact is that Ireland
faces a critical shortage in wood supply."
Mr Whelan said wood supply from forests is forecast to increase
from 3.8 million cubic metres at present, to 6.5m by 2028,
according to preliminary figures from the sector. However,
despite this, the current shortage in wood supply is set to
grow within the next eight years.
"Most of our sawn timber and output from our boardmills is
now exported and the industry has made great strides in exporting
much of the volume which would have been sold into the home
market during the construction boom years.
"With economic output from the wider forest and timber industry
calculated at around €1.89 billion for 2008 - or just under
1% of GDP - the sector is poised to contribute significantly
to Ireland’s economy."
Mr Whelan said this level of activity will have major implications
for rural employment and the rural economy.
The ITGA stressed the importance of support schemes - including
forest roads - to help secure this future wood supply.
With the growing acknowledgement of forestry’s role in climate
change mitigation and as a source of green energy and rural
income and employment, the Government must ensure these benefits
are protected and encouraged.
Mr Whelan said the Government has spent €90 million on the
purchase of carbon credits, while it is estimated the forestry
programme can save the taxpayer €220m over the five years
to 2012, in terms of complying with Ireland’s Kyoto targets.
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