§ Mr. Gibson-Wattasked the Minister of Agriculture, Fisheries and Food what are the main terms of the agreement on pitwood prices reached last Friday between the National Coal Board and the home timber interests; and what representations he made, in view of his responsibilities for British forestry to the National Coal Board.
§ Mr. Scott-HopkinsSmall price reductions for nearly all categories have been accepted by producers and in return the present national price agreements will be extended to a wider range of produce. The new arrangements should help them to plan their production more efficiently and compete more strongly for a larger share of the market. Details of the agreement will be published in the trade press shortly.
During the negotiations the Forestry Commission stressed the importance of reaching an agreement that would be acceptable to home interests.
§ Mr. Gibson-Wattasked the Minister of Agriculture, Fisheries and Food what plans he has for strengthening the market for home-grown timber so as to ensure a fair return to producers and processors alike, and to reduce the need for Exchequer support.
§ Mr. Scott-HopkinsThe main way of strengthening the market in the long term is to ensure supplies of home-grown timber at a level which will encourage the setting up of industries in this country and thus lead to a steady demand. Exchequer grants for forestry are designed to encourage new planting and good management rather than to supplement producers' returns.
§ Mr. Gibson-Wattasked the Minister of Agriculture, Fisheries and Food whether he is encouraging new industries and outlets to deal with the growing volume of softwoods for which there is a declining demand from the mines and railways.
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§ Mr. Scott-HopkinsThe Forestry Commission encourages the expansion of existing wood-based industries and the establishment of new ones to keep pace with the increasing volume of softwood. For example 2 pulpmills, 2 chipboard factories and a fibreboard factory based on home-grown timber have been set up during the last decade. The development of new industries and outlets for home-grown timber is already compensating the producers for the fall in demand from traditional consumers. The Forestry Commission will continue to do everything it can to encourage these alternative markets.