§ Sir Hector MonroTo ask the Secretary of State for Scotland whether any modifications to the Government's forestry policy policy are envisaged as a result of the changes to the forestry tax and grant arrangements announced by the Chancellor of the Exchequer in his Budget Statement.
§ Mr. RifkindThe changes to the tax and grant arrangements announced by my right hon. Friend are designed to provide a simpler and more widely acceptable system of support for private forestry. There has not,586W however, been any fundamental change in the Government's policy for encouraging forestry, in an environmentally acceptable way. This is reflected in the Forestry Commission's statutory duty to endeavour to achieve a reasonable balance between forestry and environmental considerations.
My right hon. Friends, the Minister of Agriculture, Fisheries and Food and the Secretary of State for Wales, and I remain of the view that a healthy forestry industry is in the national interest and that long term confidence in both forestry and wood processing industries in this country is fully justified. Last year in the context of new policies for alternative land use we announce an expansion of the forestry programme to 33,000 hectares of new planting a year, with particular emphasis on the private sector and with due regard to environmental considerations. The planting of a higher proportion of trees on low ground of better quality was also to be encouraged.
These policies remain unchanged, and to this end planting grants will be substantially increased. The expansion of planting in recent years has led to a significant and welcome growth in the United Kingdom of a modern wood processing industry through developments such as the Shotton Paper Company in Wales and Caledonian Paper in Scotland. The industry will in turn help to meet the growing demand for wood products and, together with the new planting programme, this will ensure that forestry contributes to employment in rural areas. Increased planting on better land will also provide an alternative-to agricultural production and thereby assist in the reduction of agricultural surpluses.
4. The environmental effects of the changes will be positive for a number of reasons. First, the new arrangements for Government financial assistance for planting will strengthen the careful scrutiny and consultation procedures undertaken by the Forestry Commission, because it is very unlikely that any sizeable scheme will go ahead unless the commission has approved it for grant purposes. In considering applications the commission will continue to observe its published management guidelines relating to broadleaved woodland and will introduce similar guidelines for all types of woodland as part of the new scheme. Its procedures for dealing with applications for planting grants should thus gain in effectiveness as a means of controlling the environmental impact of forestry and ensure that the right trees are planted in the right places.
5. Second, the increased planting grants will incorporate a substantial differential in favour of broadleaved planting, so that the share of broadleaves in total planting can be expected to continue to increase. Third, there will be a new supplement for planting on arable or improved grassland. Full details of a new Forestry Commission grant scheme reflecting these new arrangements will be announced next week.
6. Finally, the increased grants will be available for replanting in existing forest areas. In considering applications for replanting grants the Forestry Commission will follow policies which are designed to convert forests of an even age into attractive and more varied landscapes with a mixture of types and ages of tree.
7. The changes that have been announced, together with the new grant scheme to be announced next week, are designed to encourage the achievement of the Government's aims for forestry in a manner which is acceptable in environmental and land use terms and which 587W appeals to a wider range of interests. Forestry has an important role to play in the well being of this country. The industry has the support of this Government and has an assured future.
8. My right hon. Friend, the Secretary of State for the Environment, is today making a separate announcement on behalf of my right hon. Friend the Minister of Agriculture, Fisheries and Food and himself, about environmental guidance on the approval of grant applications for afforestation in England.