Forestry Commission: New Planting (Hansard, 11 January 1994)

§ Lord Fraser of Carmyllie
My Lords, in the year to 31st March 1993, the total area of new planting by the Forestry Commission was 2,356 hectares, while the area of new planting by private woodland owners for which grants were paid was 15,295 hectares. The commission's planned new planting programme for the year to 31st March 1994 is 1,800 hectares, while the private sector is expected to plant some 16,700 hectares. The total area of new planting in the current year is therefore estimated to be about 18,500 hectares. In addition, it is estimated that there will be nearly 15,000 hectares of restocking totalling, in all, 33,500 hectares.

§ Lord Taylor of Gryfe
My Lords, I thank the Minister for that reply. Does he recall that in a debate on this subject on 14th April he said, in summing up the debate: The most satisfying consensus reached during the debate is that we in Britain continue to need to plant more trees"?—[Official Report, 14/4/93; col. 1143.] The figures that he has just quoted indicate a continuing commitment in that direction. Does the Minister recall that 20 years ago—a comparatively short time in forestry terms —we were planting 41,000 hectares, of which the Forestry Commission planted more than 20,000 hectares? The Minister has just told us that next year the Forestry Commission will plant around 2,000 hectares. Is he not alarmed at the substantial diminution in new planting and will he share that alarm with the people who have invested £215 million in new pulp plant in Scotland on the assumption that supplies will become available whereas there has, in fact, been a dramatic drop in supplies?

§ Lord Fraser of Carmyllie
My Lords, the Government are certainly disappointed at the level of new planting by private owners in recent years. That planting has been depressed by the market. However, if the noble Lord includes restocking—I know he might have some reservation about including that—he will see that there was a total of some 35,000 hectares planted last year. That figure is somewhat above the average of the previous 20 years. I can certainly reaffirm that the Government would hope that, as a result of the review now being undertaken, further planting can be encouraged.

§ Lord John-Mackie
My Lords, what has happened to the money gained from all the sales undertaken by the Forestry Commission? Are the Government still holding onto that money and not giving it to the commission to use for development?

§ Lord Fraser of Carmyllie
My Lords, I am sorry, I did not hear what the noble Lord said. I hope that he will repeat his question.

§ Lord John-Mackie
My Lords, I asked what the Government have done with all the money that has been earned from the sales of wood and other products on the part of the Forestry Commission over the past 10 years or so. I believe the Government have retained that money. Why do they not give it to the Forestry Commission to allow that body—along with private bodies —to develop itself?

§ Lord Fraser of Carmyllie
My Lords, I apologise to the noble Lord for not hearing his question the first time round. The Government have made it clear that they believe that a substantial proportion of the new planting in the United Kingdom should be undertaken by the private sector. While there is and will continue to be new planting and restocking by the Forestry Commission, it is not the Government's view that the increase in the amount of forestry in the United Kingdom should be primarily led by the Forestry Commission.

§ Lord Gisborough
My Lords, in view of the encouragement given to farmers for the first time to grow hardwoods, will the Government make it clear to them that it is an utter waste of money, time and land to grow hardwoods unless they are fully prepared for the cost of expensive management throughout the first 40 years' life of those trees? Would it not be better for the country if, instead of embarking upon growing hardwoods, which will probably turn out to be an absolute waste of time, farmers were encouraged to grow softwoods as we need that product to fill our mills?

§ Lord Fraser of Carmyllie
My Lords, while it is clearly desirable that we should have an increase in the planting of softwoods, I do not agree with my noble friend that we should encourage farmers to cease the planting of hardwoods. I consider the planting of hardwoods to be a highly desirable arrangement. The farm woodland premium scheme which replaced the farm woodland scheme has been widely welcomed. What I hope we might see in the future, following on the Government's policy of seeking to allow woodland to be grown on set-aside land—the European Commission is looking into this matter—is yet further planting on such land.

§ Lord Mackie of Benshie
My Lords, will the Minister confirm that the target of 33,000 hectares was for new planting and not for restocking and planting combined, and that that figure has not been reached? Does he not agree that a statement by the Government that they have dropped their foolish plan for the privatisation of the Forestry Commission would do more for the confidence of the industry than anything else?

§ Lord Fraser of Carmyllie
My Lords, if the noble Lord examines my first Answer he will see that I was at some pains to make it clear that while the total figure amounted to some 33,500 hectares, I accept of course that the original target of 33,000 hectares a year was in respect of new planting. The noble Lord will be aware that a review is under way at the present time—it is expected to report in the early part of this year—and I hope that the results of that review will be helpful to the Government, and indeed to this House, in terms of determining how forestry policy might be taken forward.

§ Lord Rees
My Lords, will my noble and learned friend tell the House the amount of tax revenue forgone per annum by way of tax reliefs in respect of planting 72 under the last years of the old tax regime? What has been paid more recently per annum by way of grants to stimulate planting under the new regime? If we are given those figures we can assess whether the new policies are working by comparison with the tax reliefs given under the old regime, the ending of which most of us regret.

§ Lord Fraser of Carmyllie
My Lords, I cannot give my noble friend precise figures on that matter but I would express the opinion that it would do the industry no good to be seen simply as a tax haven. The removal of tax reliefs was matched by a substantial rise in the grant levels under the woodland grant scheme. As I indicated in an earlier answer, some of those schemes, particularly as regards farm woodland, have been widely welcomed.

§ Baroness Nicol
My Lords, does not the Minister agree that what is really necessary is an overall forest strategy? Does that strategy exist at the moment and does it include the conservation potential of any new planting?

§ Lord Fraser of Carmyllie
My Lords, as I previously indicated, we expect to receive the advice of the forestry review group early this year. Once we have considered it there will be full consultation with the general public and interested bodies on the options preferred by Ministers before we take the matter forward. The form and the timing of the consultation will obviously depend on the advice that the review group has to offer and the conclusions drawn by it. Following those comments I trust that the concern which the noble Baroness indicated will no longer exist.