More then half of forestry contractors are breaking the law by transporting timber on overloaded lorries, the forestry contractors' association has claimed.
The Irish Forestry Contactors' Association said the overloading was a result of poor prices paid by Coillte, the State forestry agency.
The association said timber contracting rates have been falling over recent years and now compare with those in the early 1980s. The allegations were made in a new report presented in Dublin yesterday by the contractors.
Coillte, which is hoping to move to a competitive tendering basis for its contracts next year, rejected the claims saying rates "have been held fairly steady" over recent years. The State company said it was difficult to respond to the allegations as it had not been invited to the presentation of the report and had not been shown a copy by the contractors.
The report details what it calls a "growing level of dissatisfaction" with contractors claiming they are facing a "crisis" of debt, rising costs and changing economics of timber harvesting and haulage. The association maintained the €72 million forestry industry was facing "virtual collapse" with individual contractors facing bankruptcy as a result of "the continual reduction by Coillte of the rates for harvesting and hauling timber which are now at the level of 20 years ago".
The survey conducted among a quarter of forestry contractors revealed:
• Almost 60 per cent of contractors do not believe they will be able to remain in business based on the current payments for timber.
• Over 60 per cent claim loads are being hauled in excess of the legal limit of 44 tons.
• Half of all contractors believe it is not possible to remain in business by hauling within the legal limit.
• Almost 60 per cent do not regard the allocation of contracts by Coillte as fair.
• Most favoured the introduction of a system of independent calculation of the volume of timber harvested to ensure transparency and fairness. Commenting on the report, Mr J.J. Bunyan, spokesman for the IFCA said: "The uneconomic rates of payment being paid to the contractors is forcing them into bankruptcy at a time when Coillte announced record profits.
"To try and stay in business our members are working longer hours, hauling timber over the legal limit and engaging in work practices that can leave them wide open to breaching health and safety regulations."However, a Coillte spokesman, Mr Gerry Egan, said the assertion that rates were at the level of 20 years ago was "nonsense".
"There are contractors who are doing very, very well. But there has been an attempt to hype up this report - we first heard of drafts about three weeks ago but have not been shown the courtesy of being sent a copy.
"We have asked for evidence of the methodology of the survey but they have provided nothing but a lot of heat."
