§ Mr. PaiceTo ask the Chancellor of the Exchequer if he will give the annual cost of the tax reliefs available to the forestry industry which were abolished in the Finance Act 1988 for each year 1974 to 1988 at(a) cash prices and (b) 1989 prices.
§ Mr. Norman Lamont[holding answer 29 June 1989]: For recent years the annual revenue cost of the right of occupiers of commercial woodlands to elect to be assessed under schedule D is broadly estimated at £10 million.
§ Mr. PaiceTo ask the Chancellor of the Exchequer what he estimates will be the annual cost to the Treasury of(a) the woodland grant scheme and (b) the farm woodland scheme at 1989 prices; and on what planting assumptions these estimates are made.
§ Mr. Norman Lamont[holding answer 29 June 1989]: Plans in Cm. 604 ("The Government's Expenditure Plans 1989–90 to 1991–92" chapter 4) include the following provision and planting targets for these schemes; costs vary from year to year.
Table 1 Woodland Grant Scheme Area of new planting (hectares) Forestry Commission grants (£ million) 1989–90 7,500 4.4 1990–91 16,200 9.4 1991–92 21,180 12.3 Notes:—The figures do not include:
1. Restocking of felled woodland.
2. Planting expected to be carried out under forestry grant schemes other than the Woodland Grant Scheme.
3. Planting in Northern Ireland.
Table 2 Farm Woodland Scheme Area of new planting (hecatares) Planting grants (£ million) Annual payments (£ million) 1989–90 12,000 6.9 1.0 1990–91 12,000 6.9 3.1 1991–92 12,000 6.9 5.1 Notes:
1. The above figures include Northern Ireland.
2. Annual payments follow 12 months after payment of the planting grants.
3. The farm woodlands scheme was introduced on 1 October 1988 and is to be reviewed at the end of its first three years. The programme for 1991–92 anticipates that that scheme may be extended after the review.