§ Mr. Dalyellasked the Secretary of State for Scotland what conveniently available figures he has for the economic return on 10 acres of average Scottish woodland planting.
§ Mr. YoungerThe financial return from afforestation depends upon many factors, the main ones being the scale of operations; the soil, climate and terrain; the tree species planted and the method of establishment; land prices; wood prices and labour costs expected at the time of harvesting; and taxation provisions and grants. Depending424W on these factors, the internal rate of return that might be expected for a representative woodland, growing at the rate equal to the average for Scotland and established and managed in accordance with current practice, would be in the range of 2 to 5 per cent. a year in real terms, excluding the effects of any taxes, tax reliefs or grants, but including the purchase price of the land.