§ 67. Mr. Godman Irvineasked the Minister of Agriculture, Fisheries and Food if he is aware that figures published by the Forestry Commission show a substantial drop in the prices realised for small-sized timber over a period when wages, the principal costs involved, have been increased at least twice; if he will make a statement showing the effect of the price and cost changes on both the smaller woodland businesses and on the Forestry Commission; and what steps he is taking to improve the situation.
§ Mr. Scott-HopkinsIt is true that prices for standing timber have fallen since 1961 while wages in the forestry industry have risen. Timber prices can be expected to fluctuate, and the decline has been primarily due to lower prices for imported timber and a weaker demand in the home sector. The Forestry Commission has been able to absorb much of the effect of wage increases through greater productivity, and it is reasonable to suppose that private forestry has been similarly affected. Moreover the Commission's planting and management grants to private woodland owners have been increased.
Prices for imported timber appear to be hardening and demand for homegrown timber should increase as a result of the establishment of new processing plants designed to use homegrown timber.