TIMBER INDUSTRY ON A HIGH

Unprecedented levels of new investment and the ability of wood processors to fight off fierce global competition is a "major success story" for the timber industry in Scotland says Environment Minister Michael Russell. In the last two years alone, investment in new wood processing projects has amounted to £250 million which is helping to develop a number of new sawmills and major biomass energy projects around the country. Over 40,000 jobs are now supported by the forestry sector in Scotland and the industry generates around £760 million each year to the economy. Speaking at a forestry debate in the Scottish Parliament, Mr Russell highlighted that Scottish Government support for the forestry sector was also at record levels. He said: "Confidence in the industry is high and new investment is happening right across Scotland from the Borders and Dumfries to Irvine and Fort William. "The unprecedented levels of investment in the processing and wood utilisation sector can only be described as a major success story. Our processors have fought off fierce global competition and managed to remain profitable through a period of historically low timber prices. This is testament to the industry's business acumen and its ability to adapt and innovate. "In fact, our forests currently produce some 6.6 million cubic metres of softwood round timber each year and this is set to rise to nearly 9 million cubic metres by 2016. An interesting analysis of statistics suggest that timber consumption is now running at 6.5 million cubic metres a year which could demonstrate that Scotland is currently self sufficient in wood related material. However, it is also important to realise that Scotland makes a key contribution to the UK’s timber needs, helping it to reduce its global carbon footprint. "The Scottish Government is providing strong support for the sector with £269 million being allocated to forestry measures through the Scottish Rural Development Programme. This funding will act as a catalyst for new planting, enabling the sector to plant around 10,000 hectares each year. This growth in planting will also help our aspiration of expanding woodland cover to 25 per cent of Scotland's land area this century. "The emergence of the bioenergy sector also represents a huge opportunity for Scotland's forests and woodlands. The Scottish Biomass Support Scheme has been well subscribed, and 67 new projects worth £17 million will come on stream this year, assisted by £7.5 million of Scottish Government funding. "Forestry is an integral part of sustainable rural development. It creates employment, makes great use of a natural renewable resource, contributes to the local and national economy and supports community cohesion. This is why the Scottish Government is committed to helping this sector realise its full potential, firmly establishing Scotland at the heart of UK forestry. Notes to news editors 1. In 1970 just under three quarters of a million cubic metres of timber were produced in Scotland, mainly from the national forest estate. In 2007, Scotland's forests produced 6.6. million cubic metres, more than half from the private sector. 2. Forest based tourism is also an important contributor to the Scottish economy with approximately £160 million being generated each year. 14,000 people are employed in directly or directly through forest related tourism. 3. The Scottish Biomass Support Scheme gives grants to business to encourage the use of alternative and renewable resources to conventional oil and gas fired equipment, for the generation of heat and power in domestic and industrial processes. 4. Media enquiries to Steve Williams, Forestry Commission Scotland press office 0131 314 6508.

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