Allan Wilson MSP
Cunninghame North

Speeches - 2002

 

 

Speeches to the Scottish Parliament in 2002

 

Timber Industry – Thursday 30th May 2002

 
Allan Wilson: I thank Alex Fergusson for securing this evening's debate. In response to Fergus Ewing's plea—although I am not the arbiter of such matters, as he knows—I can tell him that I would be happy to debate the subject more formally, either as an Executive motion or if it is raised during Opposition time.

The total value of forestry and wood processing to the Scottish economy is more than £800 million, once account is taken of the knock-on effects in the wider economy. It is estimated that the forest industry in Scotland invests around £60 million per annum in new processing capacity. As a result of the Scottish forest industries cluster, an additional £100 million of investment is envisaged over the next five years. The Scottish forest industries cluster plays an important part in delivering our forestry strategy, particularly in relation to maximising the value to the Scottish economy of the wood resource that will become available over the next 20 years.

About 4 million cubic metres of timber are harvested each year in Scotland. An increase of around two thirds in the availability of harvestable timber in Scotland is forecast over the next 15 years. That should lead to the creation of new jobs and significant new processing investment.

Mr McGrigor: The price of timber is such that the industry is not making any money. Is that situation being caused by imports? What, in the minister's opinion, is the reason for the low price?

Allan Wilson: The price of timber is closely related to the exchange rate. I believe that the short or medium-term solution will emerge when we examine convergence criteria for joining the euro.

Like other members who have spoken this evening, I recognise that the growing success of the timber industry in Scotland is leading to a significant increase in the number of timber lorries using rural roads and that, in many cases, those roads were not designed to accommodate that amount of heavy traffic. It is therefore important to try to develop local solutions, not least to help reduce the impact of timber traffic on local communities. That is why we welcome the development of agreed route maps for timber transport.

I also recognise the problem of local roads funding for councils' maintenance of timber transport routes. However, as Alasdair Morgan correctly predicted, the special need for maintaining forest roads is already taken into account, as appropriate, in setting the levels of the single block allocation from Scottish ministers for capital expenditure on a number of services including roads and transport. Councils have complete discretion, as I believe they should, to decide on their priorities and to allocate those funds to individual projects accordingly.

Alex Fergusson raised the question of Polbae, and I am happy to look into the matter. I have not had sight of his letter yet, but I understand that local dialogue is taking place. Dumfries and Galloway Council's capital allocation is up 34.3 per cent and its revenue allocation is up 16.81 per cent, so weight restrictions are, properly, entirely a matter for the council.

More generally, an extra £70 million is being made available in capital allocations across Scotland over the next three years to March 2004 to tackle the backlog of repairs to local roads and bridges that many members have mentioned. A further £20 million in revenue funding has recently been made available for the financial year 2001-02 to further speed up councils' maintenance activity on local roads.

I was happy that Robin Harper, Ian Jenkins and even Christine Grahame introduced a degree of balance, when talking about investment in roads infrastructure, by mentioning transport by rail and—in the case of my constituency, if not David Mundell's—by sea. Following the 2000 spending review, the resources available for freight facilities grants were doubled to £36 million over the three-year period from 2001-02 to 2003-04. Those grants are available to companies that wish to move freight, which obviously includes timber.

I am pleased that progress has been made. The Executive has identified the development of timber transport infrastructure as a priority for action through the strategy. Through the freight facilities grant, we have also been able to support initiatives to move timber traffic off the public highway. Through the Forestry Commission, the Executive has worked with the timber industry and sought the close involvement of local authorities through timber transport groups and the timber transport forum, a meeting of which I attended earlier this month.

In the light of the debate, I will ask the Forestry Commission to continue to support timber transport groups. As part of the review of the woodland grant scheme, I have today written to Alex Fergusson, as convener of the Rural Development Committee, to draw his attention to the steering group's report. He should receive my letter tomorrow.

In conclusion and in response to Alex Fergusson's motion and the general mood of consensus that has broken out in the chamber—

Alex Fergusson: Until the minister started to speak. [Laughter.]

Allan Wilson: It is always good to reach consensus as our final act—at least our final act in Aberdeen. A meeting between the Executive, the Convention of Scottish Local Authorities' rural affairs committee and representatives of the forestry industry would be appropriate and could identify productive ways forward. Tomorrow, I will write to COSLA to offer a meeting to progress discussions.

The Deputy Presiding Officer: We have reached the end of our business in Aberdeen. As the Bon Accord toast puts it:

"Glad to meet,
Sad to pairt,
Glad to meet again."

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Allan Wilson MSP 01294 605040 (Office)
or 07711038711 (Mobile)

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