3. Statement by the Minister for Environment, Energy and Rural Affairs: Welsh Government Support for Forestry in Wales

Part of the debate – in the Senedd at 3:02 pm on 12 March 2019.

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Photo of Andrew RT Davies Andrew RT Davies Conservative 3:02, 12 March 2019

Clearly, Minister, you're the Minister on point today, with two statements coming before the Plenary, so we'll be seeing a lot of each other as the afternoon progresses. Sadly, the forestry sector hasn't got a brilliant track record here in Wales. It should have a brilliant track record, because it is a huge industry—it employs 10,000 workers and has a turnover of £520 million. That, by any measure, is a substantial industry, especially in a rural economy that is crying out for new opportunities. But, regrettably, because of failed initiatives from successive Welsh Governments, we haven't seen the initiatives come forward to reinvigorate the sector. I think maybe the last paragraph of this statement indicates that by the recent meeting that you had with the industry, which says that they are 'willing to work with', which is something to be commended, but doesn't offer any comment on past performance, on which the silence most probably tells its own story.

The Welsh Government have had various initiatives over previous years, i.e. establishing 100,000 hectares between 2010 and 2030. As we know from the work that has been undertaken, instead of hitting the 5,000 hectares per year target, in the total run only 3,700 hectares have been planted in that time. In 2016, only 39 hectares of productive forest were planted here in Wales. Really, we've just got to get this right, and in particular you, as the Minister, now need to take the business by the scruff of the neck and work with the industry so that we can build on those numbers that I touched on—on the 10,000 workers and the £520 million turnover. Because it is an industry with a future—this isn't an industry that is looking to be managed into decline. There are many good examples in Scotland, for example, and in England, where the forestry sector has moved onto a more sustainable footing. Regrettably, we can point to, obviously, the reports into Natural Resources Wales's handling and the assimilation of the Forestry Commission's assets into NRW and the contracts that were brought forward from various commercial deals that have deprived the sector of income, because, as the auditor general has highlighted, and, as the Public Accounts Committee in its investigation has highlighted, that has arisen through bad practice and a loss of income into the sector.

I do appreciate the difficulties around larch and the dieback, and the unforeseen circumstances where, say five or 10 years ago, when structural plans were being put in place, these types of instances wouldn't have occurred to planners at that particular time. But that's not to say that there haven't been missed opportunities. I would call on the Minister to look at—if she could answer this question directly—making greater flexibility into the applications that could be allowed for woodland planting. In England, for example, instead of having windows of bidding and applications, it's a continuous process, because, obviously, via the planning route, companies, obviously, and farmers, in particular, who might be looking to convert their land, can't be constrained by some administrative window. They need as a great a flexibility in the scheme rules as possible, and I'd be grateful to understand will the Minister be considering that flexibility within the new scheme that she announced, obviously, that she's making available as of 1 April.

Equally, the lack of planting on behalf of NRW—as I understand it, the deficit now is some 6,000 hectares of replanting on the NRW estate, and whilst in the statement the Minister does point out her confidence around NRW and their ability to put a more mixed estate and mixed planting opportunities in place so that the commercial realisation in 10, 15, 20 years' time can be achieved, it is a fact that replanting rates aren't where they should be. If NRW was a private company, action would have been taken against them for not replanting those areas. So, again, I would like to understand from the Minister, with her deliberations over the last couple of months, has she confidence that this deficit will be addressed and that 6,000 hectares to date will be reversed and, actually, replanting will gather pace?

Also, there is the issue about managing our woodlands as well, and, under the current Glastir model, there isn't an opportunity to get money for management, as I understand it, in the scheme. At the moment, of the 300,000 hectares of Welsh forests, 60,000 hectares are unmanaged. There is an opportunity to look at managing to a far greater degree the forests that we have and the woodlands that we have so we can maximise their potential. And, again, I would be grateful if the Minister could indicate whether she or her officials have given any consideration to supporting bringing that 60,000 hectares of unmanaged forestry into some sort of scheme that could best utilise that area that is available within the forestry estate.

It is obviously very heartening to hear of apprenticeships being created. That is a vital route into the industry, and whilst I identified recently the lack of agricultural apprenticeships—less than 1 per cent of all apprenticeships, regrettably, are in agriculture—I would suggest the numbers are even poorer in the forestry sector. In her discussions with the industry, has she identified ways of bringing in new apprenticeship opportunities? Again, I identify that within the statement, but 30 apprenticeship opportunities over two years in an industry that's worth in excess of £0.5 billion—it's a welcome start, but it isn't going to change the world, it's not. When we look at the opportunities, especially in construction, for using timber products, there is a great opportunity here to open up new avenues for young entrants into the industry. Thank you, Minister.