Tree Planting (Hansard, 9 December 1976)

§ 13. Mr. Bulmer
asked the Minister of Agriculture, Fisheries and Food what is the Government's target for planting over the next five years in both the public and private sectors.

§ Mr. Strang
I assume the hon. Member is referring to forestry. The Forestry Commission aims to sustain a planting and replanting programme of up to 55,000 acres a year in Great Britain which is in line with the conclusions of the recent forestry policy review. The Government provide grants for private forestry but the level of plantings is a matter for decision by individual owners.

§ Mr. Bulmer
Does the Minister accept that there has been a dramatic fall in private planting since the introduction of capital transfer tax? This has most serious long-term implications for our 616 balance of payments. Would he tell the House whether his Department is arguing in favour of relief from this tax with the Treasury working party?

§ Mr. Strang
Certainly I agree that there has been a drop in the number of private plantings in the past year, but it is difficult to be certain to what extent this is attributable to capital transfer tax. The industry has been depressed overall. There is an inter-departmental review group looking at the whole question of taxation, grants and amenities in relation to forestry. We hope to have its recommendations before the end of the year.

§ Mr. Hardy
Will the Minister accept that the cost of importing timber and timber products is very considerable and is likely to rise? Will he agree that the amount of planting—whether it be in the private or public sector—in the next 10 to 15 years must be higher than the total for the past two years?

§ Mr. Strang
I agree that it is in the national interest that there should be an increase in planting in this country.

§ Mr. Shepherd
Will the Minister tell the House what steps he is taking to find out whether private sector plantings are influenced by capital transfer tax?

§ Mr. Strang
There is a tendency for the Opposition to ignore the very significant concession incorporated in the 1975 Finance Act that is specifically designed to help private woodland owners. However, we are looking again at this whole question of taxation in relation to private forestry.