Wednesday 7th December 2016

(7 years, 4 months ago)

Westminster Hall
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Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
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It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate the hon. Member for Brecon and Radnorshire (Chris Davies) on securing such an important debate and delivering such a fine speech, full of detail about the works of the Scottish Government and how well we are doing. It is very much appreciated. He mentioned his constituency interest in the forestry and timber industries, and I have a similar interest. Forestry and timber have deep roots in my constituency. Indeed, the tree family is part of our family tree there. [Interruption.] It gets worse—but I do want to change tack and be serious, because the industry is an important part of the economy; and the family aspect is important, because there is great potential for our young people when they are building careers.

When we grow trees in my constituency, we grow careers for people who want a rewarding job. I am keen for girls and young women in particular to take up the opportunities. We take forestry seriously—not least because I share my constituency area with the Forestry Minister in the Scottish Government, Fergus Ewing. However, forestry is also seen as a major developing industry in the highlands. That growth and development can happen only if we have a responsible commitment to sustainability. The Scottish Government see great potential in forestry, and consider it an excellent area in which to get young people involved; but it must be supported and developed, and I know that they are committed to taking their good work to greater heights.

The headquarters of Forest Enterprise Scotland is in my constituency, in Inverness. It is responsible for managing Scotland’s national forest estate and contributes to what I would call the local five-a-day of our economy—health, wellbeing, education, community development and protecting our natural and cultural heritage. Its work has the potential to benefit not only my constituents but all the people in Scotland, and beyond.

The Scottish School of Forestry, Inverness College, University of the Highlands and Islands, is the principal institution for forestry training and education in Scotland. We have a good reputation locally for providing successful forest managers in both the public and private sectors of the industry. The school acquired its sites from the Forestry Commission in 1972 and sits in its own 10-hectare woodland. It is the only forestry training provider to deliver higher and further education in its own practical training environment.

Among the area’s timber industries is Gordon Timber, in Nairn, which was founded in 1862. Since the late 1880s it has been managed by four generations of the same family, and is now recognised as one of the top sawmilling companies in the UK. The BSW Timber sawmill in Boat of Garten is a major employer in the area, and our plant contributes significantly to the local economy. BSW Timber was founded in 1848 and is the UK’s biggest sawmiller. It employs more than 1,000 people across seven locations, four of which are in Scotland.

Norbord, in Inverness, was the first manufacturer of oriented strand board in Europe. It was also the first OSB plant in Europe to receive Forest Stewardship Council accreditation, demonstrating commitment to the environment. Production at Inverness and Genk combines to make Norbord one of the largest OSB producers in Europe. Earlier this year, the Canadian company Norbord announced that it plans to invest up to £95 million in its wood panel factory near Inverness.

The final business I want to mention is MAKAR at Loch Ness, which has established a progressive timber-based design and build system that is rooted in the resources of Scotland. It has honed its knowledge of modern construction methods to get the optimum performance from home-grown timber. Not only does that reduce the carbon footprint of MAKAR’s buildings; it stimulates a regional industry that feeds investment into the economy. It is important that we support tree planting in Scotland, and note the wise words of the hon. Member for Brecon and Radnorshire about investing in the future.

Forestry is a devolved matter within the UK, and Scottish Ministers already direct domestic Scottish forest policy. However, domestic forestry is heavily influenced by EU policies and regulations, and co-financed funding is received for Scotland’s rural development programme. The Scottish National party in government has created the most ambitious planting target in the UK. England and Wales have annual targets of 5,000 hectares and 1,000 hectares respectively. Our target is 10,000 hectares. Scotland created 83% of all new woodland in the UK in 2015-16, so there is considerable development in tree planting in Scotland.

A recent report for the Forestry Commission assessed the potential role of UK forestry in combating climate change. Forestry Commission Scotland recently published its climate change action plan, setting out the action it intends to take to increase the contribution of Scottish forestry to the response to the challenges of climate change. The plan focuses on five key areas: protecting and managing existing forests; woodland creation, including energy crops; adapting to climate change, with a major focus on countering fragmentation through forest habitat networks; sustainably produced wood for energy and construction; and reducing the forestry sector’s carbon footprint, for example through improved timber transport infrastructure. Planning authorities should therefore consider the contribution that trees, woodland and forestry can make to local strategies in their efforts to adapt to climate change.

Alan Brown Portrait Alan Brown
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My hon. Friend has talked about climate change and sustainability, which is what tree planting is all about. Is it not crazy that the Government currently provide renewable subsidies for biomass energy, which is completely contradictory to sustainability and tackling climate change?

Drew Hendry Portrait Drew Hendry
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My hon. Friend makes the point clearly. I certainly agree that there is a nonsensical approach to renewable energy policy in the UK at the moment, which should be reviewed.

I want to go on to the issues facing the forestry sector. Given that the Scottish forestry sector receives vital support from the EU, the Scottish Government are focused on continuing investment in the sector to ensure economic growth, so that the reckless gamble of Brexit does not impact on that vital Scottish industry. The Scottish rural development programme, which is funded via the EU, provides vital support for the Scottish forestry sector and rural communities.

One of the main threats of Brexit is to confidence in the sector and to levels of woodland creation, and the long-term impact that will have on timber supplies to the domestic processing sector. New planting by the private sector is particularly sensitive to confidence about the availability of SRDP grant support in one to two years’ time and wider uncertainty in investment and land markets. I would like to hear reassurance from the Minister that the UK Government are taking steps regarding the future availability of forestry grants and that mitigation will be provided on that issue.

It is of extreme importance to reassure investors that Scotland is open for business, in both planting and investment in the processing sector. Timber processing has expanded significantly in the past 10 years. The Scottish Government have held two summits with the forestry sector to listen to its concerns and ambitions for the future of forestry in Scotland. EU referendum issues were discussed indirectly, with regard to securing future funding for woodland creation grants; even there, the EU is important.

Our Rural Economy Minister, Fergus Ewing, has met with leading representatives of forestry management and investment companies to provide reassurance that the Scottish Government are committed to seeing the forestry sector thrive. Currently, the forestry sector enjoys zero or low tariffs on trade within the EU, so it is vital that there is a level playing field with other parts of the European Union. Support industries, such as forest nurseries, are very sensitive to sudden dips in demand, and even a short-term fall in planting could put some Scottish nurseries at risk.

As I said, the SNP has created the most ambitious planting target in the UK, at 10,000 hectares a year, and Scotland created 83% of all new woodland in the UK in 2015-16. Since the forestry grant scheme opened in April 2015, more than 1,000 applications, worth £45 million, have been submitted, including for more than 8,500 hectares of woodland creation. Of that, 4,300 hectares of woodland creation, with a value of around £23 million, has been approved.

This issue is very important. I am grateful to the hon. Member for Brecon and Radnorshire for securing the debate and allowing it to be discussed. We are approaching Christmas, and it is important to end on the right tone. Christmas trees are an important seasonal part of Scotland’s rural economy. Scotland’s forests provide homes for wildlife, as my hon. Friend the Member for Angus (Mike Weir) mentioned, as well as places for recreation, and they help to reduce the impact of climate change and flooding.

To underline the importance of the industry, the First Minister has encouraged people to support Scotland’s rural economy this Christmas by buying home-grown Christmas trees. Two Norway spruce trees, grown by Highfield Forestry in Beauly—right on the edge of my constituency, in an area I used to cover as a local councillor—were delivered to the First Minister’s official residence, Bute House. Let us hope that tree planting and the timber industry in Scotland and the UK have a very happy new year. We wait to hear the answers on how that will be delivered.

Neil Parish Portrait Neil Parish (Tiverton and Honiton) (Con)
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It is a great pleasure to serve under your chairmanship, Mr Bone. I congratulate my hon. Friend the Member for Brecon and Radnorshire (Chris Davies) on securing this debate. He does an excellent job chairing the all-party group on forestry.

Here we are, having this debate in Westminster Hall, and we can look around and see the timber not only in this room but in Westminster Hall itself and the oaks that were used to build that huge roof. Oaks were cut down over the years to build our fleet, when we went across the world and did various things. I will not go into the details of everything we did, but much was successful, although others may not say so. Over that period, we naturally cut down a great deal of oak forest. World wars then had their effect, and we set up the Forestry Commission after the first world war to plant a great number of trees.

Yesterday, we took evidence in the Select Committee on Environment, Food and Rural Affairs as part of our forestry inquiry. The one great plea made on grants was to bring back the one-stop shop. People are finding that when they apply for grants, they have to go through Natural England and the Rural Payments Agency and deal with DEFRA. It seems to be taking up to a couple of years to get a grant through, which is just not acceptable. Now, as we look to reform after leaving the European Union, there is much we can do with that grant scheme to make it simpler and more encouraging for landowners to plant trees.

Our Scottish friends who are here are to be congratulated, but I want to prick their bubble just a tiny bit. Some land in the UK is much more suitable than other parts for planting trees, and other land may produce 4 tonnes of wheat per acre. Some of their land in Scotland may not produce 4 tonnes of wheat per acre, so the competition for that land between crops and trees is not quite so great as elsewhere. In the north of England and Wales, there is much land that will be very good for forests, where we can create a crop—we must remember that it is a crop.

I declare an interest: I am a farmer. I do not have a big farm. If I choose to plant trees on my farm, I lock them in for one, two, three or perhaps four generations. If someone has only a small farm, they may not want to do that. I am sure the Minister is aware of that. There is a way we can manage forests: we can have large forests, perhaps on some of the marginal land. We can have deciduous trees and conifers, perhaps with strips of deciduous trees around the edges. We can make it much more accessible to the public and aesthetically beautiful and still have a crop—we must remember that timber is also a crop.

Half the time, what puts a lot of landowners off planting trees is that when they do so, a lot of the population then say, “Over our dead bodies will you cut down any of those trees.” However, trees are a living crop. They grow and mature, and then we use them for building our houses. That is all great, and it is all part of forestry, which we sometimes forget.

Drew Hendry Portrait Drew Hendry
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The hon. Gentleman makes a telling point about the choices that face people when they are planting. Does that not underline the importance of EU grants in decisions on planting?

Neil Parish Portrait Neil Parish
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Yes, the hon. Gentleman makes a fair point, but the issue is not just EU grants; it is how we deal with grants after we leave the EU. If we have the right mindset, we could produce a better grant scheme. If a percentage of better quality land further south in England where good crops can be grown is taken for trees, we will have to have a system to reward landowners for doing that. Otherwise, they will naturally decide to continue to grow other crops. Trees may be grown for aesthetic, conservation, and recreation reasons. Major forests may provide recreation, but that may also be done around our cities and highly populated areas. The great challenge for a grant system and support is to get people to plant in those areas, which is what I am keen to see.

Points have been made about climate change and the need to plant more trees to absorb carbon, as well as to stop flooding. That applies not just on marginal and steep land. In areas of run-off where intensive crops are grown, planting strips of woodland stops flooding and soil erosion. We can do an awful lot and we do not have to follow the common agricultural policy. I do not want future Governments to say, “We can’t do this.” We can do it if we look at it sensibly.