Government cutbacks in funding and growing environmental and regulatory restrictions have prompted the Irish Forestry Industry Chain (IFIC) to commission a review of Ireland’s forestry sector and its contribution to the country’s environment and economy.

The socio-economic study, which is backed by the Irish Farmers’ Association and self-assessment companies, will address the wider social benefits of forestry in addition to the economic contribution that the industry makes at rural, regional and national level.

IFIC chairman George McCarthy said: “The enlargement of the EU will increase competition in the key European wood products markets, specifically the UK, where the vast majority of Irish exports of panel products and sawn timber are sold.

“It is therefore vital that the Irish forest industry attains its critical mass of production as outlined in the 1996 Government Strategy. This objective has been dealt a serious blow by the reduction in government funding for the expansion of the forest estate.”

IFIC executive director Gerry Farrell added: “It is clear that there is a need to quantify the myriad contributions that the forest industry makes to the country’s economy and environment, so that an appropriate level of state support can be restored.”

Economic consultants Peter Bacon & Associates will carry out the review.