The Irish forestry sector has called on the government to restore its level of funding to the industry following the publication of a report which says this year’s cash reduction was “unjustified”.

The independent report, commissioned by the forestry sector, says the 27% funding decrease, compared to 2002, could not be justified on economic grounds and would endanger an opportunity to create a renewable resource.

Consultant Peter Bacon says the sector has demonstrated favourable returns compared with other industries and claims that for every euro invested in forestry the economy will earn a return of €1.59.

Promotional and educational activity by the Forest Service has resulted in applications to plant 23,000ha in 2003, above the 20,000 annual target set out in the government’s 1996 “Growing for the Future” commitment. However, only 12,000ha will be planted because of the cutback.

The report recommends the government avoids a stop-go approach to funding to protect the long-term future of forestry.

George McCarthy, chairman of the Irish Forest Industry Chain, said: “It is clear that the government should now allocate sufficient funds to maintain the programme of planting 20,000ha per year, and thus ensure the potential level of return to the taxpayer as outlined in this report.”