§ Mr. Lordasked the Secretary of State for Scotland whether he will make a statement on the Forestry Commission's disposals programme to date.
§ Mr. YoungerMy right hon. Friends and I have been reviewing the disposals programme in the light of proposals made to us by the Forestry Commission.
When we asked the commission to undertake this programme we stated that its main purpose was to reduce the commission's call on public funds for the management of its forestry enterprise, and some £56 million have been raised to date from the sale of assets. Recently, however, the commission has initiated major changes to its structure with a view to improving its efficiency and reshaping its management to meet future needs. Related to this, it has also reviewed its land holdings to identify those properties that are not essential to the enterprise and which might be sold as part of the rationalisation of its estate. Bearing in mind that not all such properties will find a ready market, the commission has estimated that a programme on this 7W basis could yield some £45 million over the next four or five years. This would mean total receipts from sales from the start of the programme in 1981 of around £100 million.
Against this background, the Government have decided that the commission's disposals programme should be extended to 31 March 1989 and that its main purpose should be the rationalisation of the estate with a view to improving the commission's efficiency and the commercial effectiveness of the forestry enterprise. The commission can now plan ahead on this basis without the uncertainty and attendant difficulties that frequent reviews can cause in achieving a coherent approach to the management of the enterprise.