UK Forestry Politics

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UK Forestry Politics Practicein
2008Guy WattChartered Forester MNZIFJohn
Clegg Consulting Ltd
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UK FORESTRY FACTS FIGURES (2006 / 07)

• Total woodland area 2,837,000 ha
• Woodland cover 11.8. Conifers 58
• Woodlands in FC management 827,000 ha
• Certified area 45
• New planting 10,700 ha
• Restocking 17,700 ha
• Coniferous roundwood production 8,500,000 green
  tonnes
• Total employment 42,000

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POLITICAL RELEVANCE OF FORESTRY

• Pre 1988
• Creation of a strategic reserve of timber a
  strong economic rationale (tax incentives)
• Post 1988 Tax Changes
• No economic rationale. New planting dropped away.
  Timber prices falling
• Search for relevance
• 1992 Rio Summit sustainability biodiversity.
  Native woods

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POLITICAL RELEVANCE OF FORESTRY

• Post 1988 (cont)
• Social / urban forestry. Creation of urban
  forests - most MPs are urban based!
• Forest Certification (FSC PEFC - UKWAS)
• Political devolution in 2000 Scotland Wales
  producing own national strategies
• England Regional Forestry Frameworks trying to
  find money in other budgets!
• Climate Change carbon fixing wood energy
  creating a political priority

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POLITICAL RELEVANCE OF FORESTRY
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POLITICAL DELIVERY OF FORESTRY

• Public money only for public benefits
• Consultation, consultation, consultation!
• FC encouragement of local woodland strategies
  LAs, Gov. Depts, conservation organisations
  public involvement
• EU shaping types amounts of grant in rural
  sector
• Increasing EU emphasis on integration
  diversification of rural sector
• (Privatisation of the Forestry Commission)

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POLITICS OF THE FOREST INDUSTRY

• A small sector with lots of organisations
• Ministers were confused by the industrys
  messages
• Creation of ConFor representing growers
  processors in 2006!
• Most representative forestry organisations in one
  building in Edinburgh inc ICF
• So far, so good!
• Funding is continual problem

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THE PRESENT ECONOMIC FRAMEWORK FOR
FORESTRY
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• NEW PLANTING IN SCOTLAND 1975 - 2006
• Source Forestry Commission

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PRICE OF FARMLAND 1993 - 2007
8,750 5,000
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FUTURE PROSPECTS FOR AGRICULTURAL COMMODITIES IN
THE UK 2006 - 2007
Source Strutt Parker, 2007
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FCs GB CONIFEROUS STANDING TIMBER PRICES 2000
2007Source Forestry Commission
20 12.5
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CONIFEROUS ROUNDWOOD FORECAST POTENTIAL
AVAILABILITY DEMAND TO 2016 IN SCOTLAND
NORTHERN ENGLAND
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CONIFEROUS SAWMILL CO-PRODUCTS FORECAST
POTENTIAL AVAILABILITY DEMAND TO 2016 IN
SCOTLAND NORTHERN ENGLAND
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FORECAST POTENTIAL AVAILABILITY OF WOOD FIBRE
SOURCES OTHER THAN CONIFEROUS ROUNDWOOD TO 2016
IN SCOTLAND NORTHERN ENGLAND
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THE MARKET FOR LAND ESTABLISHED WOODLANDS

• There is an active market for established
  commercial woodlands
• Demand far exceeds supply. Prices rising. Fiscal
  IHT ( timber income tax free) are major
  drivers
• Up to 5 indicative financial return in real
  terms depending on assumptions - constant timber
  prices
• Roundwood timber price prospects look
  encouraging in UK globally climate change /
  wood energy has strengthened market prospects in
  the UK

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DEVELOPING THE MARKET FOR WOOD PRODUCTS
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DEVELOPING THE MARKET FOR BRITISH WOOD PRODUCTS

• Wood for Good generic campaign started in 2000.
  Expanding or competing?
• Climate change is bring focus on sustainability,
  life cycle analysis, carbon neutrality due to
  political priorities
• Increasing links with architects more technical
  information needed
• BRE TRADA working much more closely with the
  trade, ConFor, FC S. Enterprise

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DEVELOPING THE MARKET FOR BRITISH WOOD PRODUCTS

• Industry is much more innovative is investing
  in new mills 4 new large sawmills 1 new
  panelboard line
• Industry is becoming more customer focused
• Timber framed houses now much more acceptable
• Specialist courses Napier University Centre for
  Timber Engineering

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PRACTICAL FORESTRY ISSUES
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PRACTICAL ISSUES CHALLENGES!

• Quality of trees particularly broadleaves
• Purchasing practices for logs mc strength
  properties
• Certification of small woods
• Continuous cover forestry
• Felling licences plans - landscape issues
• Closing of university courses for forestry

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PRACTICAL CHALLENGES!

• Availability of labour for manual work - rural
  housing Eastern Europe
• Availability of chainsaw operators
• Restrictions on the use of fertilisers
  chemicals through FSC certification
• Hylobius beetle attack on re-stock plants
  forest residue use
• The price of land for new planting

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POTENTIAL PLANTING LAND PRICES IN SCOTLAND WHERE
TO PLANT?
Source Strutt Parker, 2007
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CONCLUSIONS

• The Forestry Commission has championed the sector
  although not always appreciated!
• The sector is aware that it must be politically
  relevant
• The whole sector is working more closely
  together, but could do more
• The market outlook is better than it has been for
  many years
• We have a fantastic environmental product!

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PHOTGRAPH ACKNOWLEDGEMENTS

• Slide 22 Andrew Lee
• Slide 23 Michael Wolchover
• Slide 24 Andrew Lee
• Source New Timber Architecture in Scotland by
  Peter Wilson