CLOSING DATE FOR SCOTTISH FORESTRY GRANTS SCHEME BROUGHT FORWARD

Forestry Commission Scotland is bringing forward the closing date of the Scottish Forestry Grant Scheme (SFGS) from August, to take immediate effect for most grants.

This move is necessary due to the unprecedented demand for grant-aid leading to the scheme being fully subscribed for many of the grants, earlier than originally anticipated.

Recently, the demand for forestry grants in Scotland increased sharply, in part due to uncertainties surrounding the planned closure of the SFGS in preparation for the new Rural Development Regulation and Land Management Contracts.

Despite budgets for grant-aid rising to an all time high the Commission has decided to bring forward the closing date of the SFGS to avoid putting potential applicants to unnecessary effort when we already know that many of the grants are fully subscribed.

Dr Bob McIntosh, Forestry Commission Scotland Director, explained;

"We have had to speed up the timetable for closure of the SFGS due to an unprecedented increase in demand for grant-aid reflecting record levels of forestry activity taking place across Scotland. While I am delighted that more landowners than ever before are taking greater advantage of our forestry grants, the volume of interest has been so high this year that we do not wish to see a potential further increase in demand over the next few months when we already have enough applications to absorb the scheme's financial provisions.

"Closure of grant schemes can stimulate demand from applicants anxious to take advantage of the elements of the outgoing scheme, just in case they are not included in the new one. I believe this has been part of the reason we've witnessed such a swell in the volume of applications received over recent months.

"I do appreciate that early closure may present problems for some land owners but I feel it is the correct course of action and the best way forward to ensure that contractual commitments can be met."

Since it was introduced in 2003, the SFGS has proved a popular mechanism to support forestry development. The range of grants available to land owners and managers through the scheme has helped forestry contribute to many social, economic and environmental objectives by encouraging land owners to establish new forests, as well as breathing new life into existing, neglected woodland.

Forestry continues to contribute across a wide range of agendas; for its role in relation to climate change, a further Ł6 million in each of the next two years has been allocated for forestry grants to help meet targets announced in the Scottish Climate Change Programme. This funding raises the forestry budget levels over the next two years to new record levels of Ł26 million for 2006-2007 and Ł28 million for 2007-2008.

The early closure of the SFGS will not have an impact on other schemes administered by Forestry Commission Scotland such as the Strategic Timber Transport Fund, the Bio-Energy Infrastructure Scheme, or the Forestry Development Programme.

Notes to Editors:

1) Applications for grants within certain Locational Premium Areas (Central, Grampian, Glasgow & Clyde Valley, Highland, and Northern & Western Isles) will continue to be accepted until the funding limits are reached.

2) Applications for Short Rotation Coppice grants will continue to be accepted until August 2006, when the SFGS was originally going to close.

3) Applications for the Woods In and Around Towns challenge fund will be judged in May and some commitments may be tied over into the new Land Management Contract scheme when established in 2007.

4) The Farmland Premium Scheme will be unaffected.

5) Applications currently under assessment through the Scottish Forestry Grants Scheme will continue to be processed.

Media enquiries to:
Steve Williams, Forestry Commission Scotland press office, 0131 314 6508, mobile: 07771 730 509
Diana McGowan, Forestry Commission Scotland press office, 0131 314 6507, mobile: 07785 527 590

e-mail: steve.williams@forestry.gsi.gov.uk