Up to 600 forestry jobs could be lost if the Government does not reverse its decision to cut spending on new forests, according to group representing forestry.
The Irish Forest Industry Chain (IFIC) today urged Government to stick to its 1996 commitment to fund the development of 20,000 hectares of new forests per annum to protect rural development and employment.
At a seminar on public private partnership in forestry, Mr George McCarthy, Chairman of IFIC, expressed concern at indications that the "our planting programme will fall to 2,000 hectares in 2004 unless this year's government cutbacks are reversed.
The Government has cut funding for 2003 by 27 per cent when compared to funding for 2002 and only 12,000 hectares of forest are to be planted this year.
Mr McCarthy said that the Government must send a strong signal to private investors and companies who have committed several million euro to the industry.
A report on the forestry sector by economist Mr Peter Bacon concluded that for every euro invested in the sector there is a return to the economy of euro1.59.
"Ireland's forestry programme must not be abandoned because of short-term cash flow difficulties," Mr McCcarthy said.
Targets for afforestation for the period to 2030 were set out in a report published in 1996. The main method for promoting afforestation is grants to the private sector.
According to the Bacon report 9 per cent of all land was covered in forest in 2000, with 40 per cent of this being private forests and the rest forests managed by Coillte.
Conifers remain the main type of tree being planted and accounted for just under 85 per cent of new planting in the period 1997-2002.