Timber Trouble: Forestry Contractors Demand Fair and Transparent Payment System

FCI Calls for Payment System Change for Forestry Contractors in Ireland

The recent devastation caused by Storm Éowyn has brought to light the pressing need for a change in the payment system for forestry contractors in Ireland. The Association of Farm and Forestry Contractors in Ireland (FCI) has been at the forefront of advocating for this change. In the wake of the storm, which has severely damaged an estimated 23,600 hectares of forest, the FCI has been actively engaging with European forestry contractor groups through its membership in the European Confederation of Agricultural, Rural and Forestry Contractors (CEETTAR).

One key development arising from these discussions is an agreement where European contractors will come to Ireland to assist with the challenging task of harvesting the storm-damaged timber. These contractors will work as sub-contractors to Irish FCI forestry contractors. However, the FCI has highlighted delays in the arrival of these supporting contractors, citing various factors including the absence of a fair and transparent payment system akin to those in place for forestry contractors across Europe.

Ann Gleeson Hanrahan, the managing director of FCI, welcomed the decision by Minister of State for Forestry Michael Healy-Rae to include forestry contractors in the Forest Windblow Taskforce. She emphasized the crucial role played by forestry contractors in ensuring the mobilization of timber and noted that through FCI, they will have a central voice at the taskforce to advocate for the interests of timber harvesting and haulage contractors.

FCI members have reported significant challenges in windblown sites, with harvesting output reduced by 30% to 40% compared to regular forest harvest situations. The costs of harvesting have also escalated, and work output has slowed due to the increased need for chainsaw operators on the ground. While the taskforce and Minister Healy-Rae have limited influence over pricing structures, the FCI is calling for a payment system that is based on the cubic meter measured output from independently calibrated harvester heads.

The FCI highlighted the disparity between Ireland and Nordic countries in terms of payment systems for forestry contractors. In Ireland, contractors are paid based on the dry matter weight of harvested timber, in contrast to the cubic meter measured output system prevalent in Nordic countries. This difference has resulted in challenges for Irish forestry contractors, with many facing the burden of returning credits to forest companies due to the flawed payment system.

Gleeson Hanrahan stressed the need for a fair and transparent payment system that aligns with international standards to attract contractors from across Europe. The current system, which relies on weight-based payments, has proven to be inefficient and detrimental to the interests of forestry contractors. She emphasized the urgent need for a negotiated pricing system change through the taskforce to address the challenges faced by contractors in the aftermath of Storm Éowyn.

The FCI’s advocacy for a revised payment system reflects the broader concerns within the forestry sector in Ireland. As the industry grapples with the aftermath of Storm Éowyn and the need to efficiently harvest damaged timber, the importance of addressing payment issues cannot be overstated. The collaboration between industry stakeholders, government bodies, and forestry contractors will be crucial in finding sustainable solutions that support the long-term viability of the forestry sector in Ireland.

Matt Lyons

Matt Lyons

Matt Lyons is the founder of Forestry & Carbon. Matt has over 25 years as a forestry consultant and is invoilved in numerous carbon credit offset projects.

Leave a Replay

Scroll to Top