Woodlands: Planting Figures (Hansard, 8 June 1988)

§ The Minister of State, Scottish Office (Lord Sanderson of Bowden)
My Lords, we see no reason why the new woodland grant scheme should fail to stimulate the desired levels of planting. So far as the next decade and immediately beyond is concerned, it is the ever-increasing volume of wood from existing forests which will help to stimulate further investment in wood-processing plants. New planting carried out today will allow the continuing development of the wood-processing industry well into the next century.

§ Lord John-Mackie
My Lords, I thank the Minister for that Answer. I should like to ask him why he is so sure of his figures when, since 1980–81 when the Government set it, the target has failed by 30 per cent? Because of what, in my opinion, has been the Government's ham-fisted handling of the tax relief aspect, I believe that the situation will be worse this year. Does the Minister not believe that the way to solve the problem is to let the Forestry Commission come back with its target of roughly half of private planting which would solve his problem immediately? I am sure the Minister is aware that the Question is promoted by the "Focus" articles in The Times, one of which was headed "Factories hungry for forests". I believe that if the Minister reads the articles carefully he will appreciate that he cannot possibly consider that the situation is in a good condition unless he reaches his target of 33,000 hectares.

§ Lord Sanderson of Bowden
My Lords, I am aware of all the points made by the noble Lord. He has expressed concern about the figures which are being reached. Although final figures have not yet been confirmed, I believe that he, along with me, will be happy to hear that they have risen for the year to the end of March, 1988, to 28,000 hectares. That is a considerable advance on the figures of 1983, for example, which showed a total of 21,000 hectares.
I should like to turn to his question of whether there will be enough wood for the wood-processing industries. By the year 2005 we expect wood production from existing British forests to have increased from its present 5.6 million cubic meters to some 9.7 million cubic meters. That means that for the next five to six years in particular the planned and present production will be roughly in line with what is available for the expansion for which I know the noble Lord will look.

§ Lord Renton
My Lords, will my noble friend say which of the planned wood-processing plants have been completed and where they are situated? Would not the answer that he gives have a bearing on the Government's decision—perhaps rightly made, in spite of what I said on an earlier occasion—to have conifers planted mainly in Scotland rather than south of the Border.

§ Lord Sanderson of Bowden
My Lords, as regards the major processing plants and those which are already "up and running" (that is the expression I should like to use), Shotton is the major user of pulp, and that involves the use of conifers. As regards the 1408 planned production, the factory in Irvine which is to be opened next year will take a very sizeable amount of pulp. However, I must point out that in addition to what is available from the forests, we have to take into account the availability of waste-paper as a raw material for some of these factories.

§ Lord Gisborough
My Lords, is my noble friend aware that the new grant scheme, whereby the grant is only paid over the first five or six years for maintenance, will make people plant varieties which do not need subsequent maintenance; namely, the sitka spruce, the one variety which causes the most antagonism with the public? That will achieve the exact opposite of what the Government want.

§ Lord Sanderson of Bowden
My Lords, I believe that we are moving slightly away from what is required for the downstream activities of the wood processing industries in the short term and looking ahead to what is available for the future. The question of maintenance has been raised on a number of occasions. Many owners will benefit quite considerably from the reduction in the top rate of tax and the transitional arrangements available until 1993 will provide a breathing space to enable owners to adjust and also allow time for us to assess the impact of the changes and to consider whether anything more needs to be done.
Perhaps I may emphasise, particularly to the noble Lord, Lord John-Mackie, that it would be very helpful if he could persuade some of his colleagues in another place of the importance of the transitional arrangements.

§ Lord Taylor of Gryfe
My Lords, perhaps I may ask the Minister whether the encouraging figures which he has quoted for 1988 are the result of the previous tax regime which is now abolished. Will the Minister confirm that the planting programme of the Forestry Commission in the past eight years has been reduced from 15,000 hectares to 5,000 hectares? Is it true that private planters are now cutting back on their nursery orders, which suggests a total cutback in their planting programme? Can the Minister inform the House where the new investors are coming from?

§ Lord Sanderson of Bowden
My Lords, I know of the noble Lord's great interest in this subject. I know that on 31st March I answered some of the questions which he has now asked. However, I repeat that it is the Government's view that in achieving their targets—they will watch this matter carefully—there will be investors available to invest in new planting. In answer to the noble Lord's point about the Forestry Commission and its planting, as an example the figure for 1984 was 8,382 hectares and there were steady figures for 1985 and the succeeding years of 5,100, 4,300, 5,300 and 5,000.

§ Lord John-Mackie
My Lords, the Minister made the point about present supplies. However, we are interested in future supplies. It is because of the planting that was done in the past that the present supplies are sufficient or reasonably sufficient. That is the point I should like to make. Is the Minister sure 1409 that the policy will ensure that over the next 50 or 60 years planting will carry on at the same rate as in the 1970s and early 1980s?

§ Lord Sanderson of Bowden
My Lords, I pay tribute to the work of the noble Lord, Lord John-Mackie, in this regard. We are now reaping the benefits of the investments of previous years; that is quite obvious. That is why in the figures I have given we are looking forward to an increase in production from those forests up to the year 2005.
As regards what is available in the future, of course we shall assess how the new tax regime is working. However, when the situation before the budget was described by one of the noble Lord's colleagues, the noble Lord, Lord McIntosh of Haringey, as grotesque and obscene, then I feel that he has a nerve to criticise me on what we have done.