Forestry Planting (Hansard, 21 November 1990)

§ Lord Strathclyde
My Lords, some 19,500 hectares of new planting were recorded in the year to 31st March 1990. That included 2,600 hectares of planting under the farm woodland scheme and 4,100 hectares of planting by the commission. That compares with a general government aim of 33,000 hectares of new planting a year. In addition, we allowed for the planting of a total of 33,000 hectares in Great Britain under the experimental farm woodland scheme over a three-year period from October 1988.

§ Lord Taylor of Gryfe
My Lords, I thank the Minister for that Answer. May I bring him up to date with the planting figures to September 1990? The figures for the private sector are 12,000 hectares and for the Forestry Commission 4,000 hectares, making a total of 16,000 hectares, as against the Government's target of 33,000 hectares. As the Minister responsible for trade as well as forestry—I congratulate him upon his versatility—does he accept that reducing imports is as important as encouraging exports? Does he also accept that the figure for timber imports this year is approaching £7 billion? Encouraging domestic forestry could make a sizeable contribution to the balance of payments.

§ Lord Strathclyde
My Lords, we are not in the business of closing off a perfectly free market. Perhaps I may remind noble Lords that over the past 10 years we have seen 250,000 hectares of new planting undertaken in Great Britain. That is probably more than has been done by any other country in relation to its size to expand its forestry contribution.

§ Lord Stodart of Leaston
My Lords, is my noble friend aware of the statement made on Friday by the chairman of the Scottish Landowners' Confederation to the effect that he had had to pay off five employees at Kinloch Laggan as a result of the squeeze imposed by the Government's revamped forestry policy? In view of the grave effect that this will have on the rural economy will he endeavour to have that policy revamped?

§ Lord Strathclyde
My Lords, as I have said, our record over the past 10 years in expanding forestry has 682 been good. There is currently a hiccup affecting the increase in new tree planting, but we hope that this activity will continue to provide a long-term and viable contribution to the rural economy across the country.

§ Lord John-Mackie
My Lords, is the Minister aware that between 1970 and 1979 average private planting in this country amounted to 18,000 or 19,000 hectares, and that this was matched by the Forestry Commission which planted 18,500 hectares? To say that the Government have increased wood production is absolute nonsense. Will the noble Lord consider stopping the dramatic curtailment of the Forestry Commission's affairs in relation to wood production and the selling of trees and land? That took place in 1979 when the Government came into office. If they would stop that policy and let the Forestry Commission have its head again the Government might have some hope of reaching their target.

§ Lord Strathclyde
My Lords, the noble Lord talks about the planting record of the 1970s. We changed the tax regime in 1988 because trees were seen as a tax haven rather than as providing a viable economic future for the countryside. We gave the Forestry Commission a free rein to look after its own affairs. However, the commission is not there for its own sake, to be subsidised to a huge extent by the taxpayer. It has to be viable, like any other industry.

§ Lord Gisborough
My Lords, does my noble friend agree that the regime of 1988 dictated that the only trees worth planting now are sitka spruce which do not require further maintenance? Is he satisfied that the later rules will give some chance to grow the hardwoods which are demanded by the greens and to carry out all the management necessary to keep them in good condition?

§ Lord Strathclyde
Yes, my Lords. I am glad to say that since the tax regime was changed we have seen a tremendous upswing in the amount of broadleaved planting. Last year more than 5,000 hectares were planted. That is a tenfold increase.

§ Lady Saltoun of Abernethy
My Lords, do the Government propose to reinstate maintenance grants and, if so, when?

§ Lord Strathclyde
My Lords, yes. We are introducing management grants from 1992. We will keep the grant levels under review.

§ Lord Carmichael of Kelvingrove
My Lords, the Minister has given figures for planting over the past two decades. Can he give some idea of how employment has fared in the forestry industry over that period? His noble friend Lord Stodart mentioned that five jobs were lost in a certain area. Knowing some of these areas, I believe that five jobs are important. It would be interesting to compare the figures.

§ Lord Strathclyde
My Lords, I have not brought any figures for employment in the forestry industry in Scotland. However, it is common knowledge that the industry plays a great part in the economy of rural areas. The loss of jobs is not desirable. That is why in the long term we hope to see a recovery in the price of 683 timber. There has been tremendous investment in down-the-line production in the past few years. That will he useful in providing a long-term future for the rural economy, particularly in Scotland.

§ Lord Dulverton
My Lords, is my noble friend in possession of the comparative costs to the Exchequer of the tax which private foresters would have been able to reclaim when that incentive to forestry was in operation and the costs of the increased planting and management grants under the present system? The system is not proving a success in terms of reaching the Government's target for new planting. Is it possible to produce such figures applicable to last year's planting which I understood amounted to 14,000 hectares against the Government's hoped for 33,000 hectares?

§ Lord Strathclyde
My Lords, perhaps I shall be able to give the noble Lord a substantive reply by way of letter, a copy of which will be placed in the Library. Very roughly, in the past year available tax relief was equivalent to £10 million: planting of 28,000 hectares would give a grant figure also of about £10 million.

§ Lord Moore of Wolvercote
My Lords, does the Minister agree that in south east England there are still large areas of woodland uncleared following the devastation of the hurricane of October 1987? This is due to the high cost of clearance. Will the Government consider helping woodland owners with the clearance costs so that the lovely woods in Kent and Sussex can be replanted?

§ Lord Strathclyde
My Lords, we are all well aware of the dreadful devastation that took place in October 1987. Immediately afterwards, the Government gave careful consideration to the help that would be most appropriate to those who had suffered. The conclusion reached was that priority had to be given to the replacement of trees that had been blown down. A considerable extra grant—an increase of 60 per cent. on the normal planting grant—was handed out. I believe that the Government have been fair in respect of those people.

§ Lord John-Mackie
My Lords, can the Minister explain—

§ Lord Taylor of Gryfe
My Lords, how can the Minister—

§ The Lord Privy Seal (Lord Belstead)
My Lords, I do not think that both noble Lords can ask a question at the same time. We have had a good run round this course and I suggest that one of the two noble Lords asks a question. As the noble Lord, Lord John-Mackie, has already done so, perhaps the noble Lord, Lord Taylor, might put the last question.

§ Lord Taylor of Gryfe
My Lords, how can the Minister be so complacent in saying, as his predecessor said, that the target is 33,000 hectares when last year total planting was 17,000 hectares? Is he aware that this was believed by only two groups: first, the nursery men who thought that they had a market but had to destroy over 50 million young trees last year because of the decline in the planting programme; and secondly, the processors who invested £1 billion in the wood processing industries 684 on the assumption that domestic supplies would be available? They will not be available as long as our targets are not met.

§ Lord Strathclyde
My Lords, I am not the least bit complacent. I have admitted that there has been a temporary downturn in the amount of planting. We are always prepared to listen to the industry; we talk regularly, not just to the Forestry Commission but to representatives of the private sector as well. The introduction of management grants in April 1992 will make a considerable difference. We shall see a return to the high levels of planting seen in the past.