At a recent event hosted by Brodies LLP in conjunction with the Confederation of Forest Industries (Confor) delegates heard from industry experts and politicians about the challenges and opportunities facing the forestry sector.
The event began with an address by Jim Fairlie MSP, Minister for Agriculture, Marine and the Islands who told the audience the timber sector was a vital industry which remained central to Scotland’s future. In particular, Mr Fairlie noted that “Scotland demonstrates real leadership in this sector, and we should be ambitious about building on that. But investment, innovation and leadership rely on one thing: confidence.”
Building on this theme Mr Fairlie also discussed the woodland creation target of 18,000 hectares annually by 2029-30, noting that this was an ambitious target that would require confidence, partnership and effective delivery to achieve.
Another point which was returned to throughout the event was the possible merger of Scottish Forestry into a unitary regulatory body which had been outlined in the Scottish Government’s Programme for Government. Mr Fairlie confirmed that no decision had been made in that regard and that he “would be reluctant for us to do anything that will dampen investor confidence in Scottish industry.”
David Leslie, joint managing director of James Jones & Sons Limited, followed with a presentation on the 50-year timber outlook.
Mr Leslie noted that Scotland currently imports approximately 81% of timber which is used and based on current trends by 2050 only approximately 15% of timber will be homegrown. Under current projections, there is a surplus of timber available now but a shortfall of approximately three million cubic metres anticipated by 2050.
Addressing this point, Mr Leslie described this as “a massive issue for the industry and this is the reason we have to be planting trees [now] because we don't do it in that gap in the future.” He also highlighted that much of this projection is based on harvesting continuing in line with current efficiency, but if this is assumption is incorrect then figures could vary.
Finally, turning to the investment case for forestry and his message for government, Mr Leslie demonstrated that the priority remained Sitka Spruce planting, noting that “we can't plant [different species at scale] because they will not provide wood for houses. They're unlikely to provide wood for pallet wood, fencing or for some of the board makers. We've got to plant products, and we've got to address it now.”
Mr Leslie’s presentation was followed by a panel discussion between Andy Leitch, Deputy Chief Executive of Confor, Ian Robinson, Managing Director of Scottish Woodlands Limited and Dr Kate Palmer, National Manager for Scotland & Northern Ireland and Policy Manager at Confor.
Echoing the words of Mr Fairlie, Mr Leitch also highlighted opportunities within the English market given the practicalities of having that scale of housebuilding on Scotland’s doorstep. He did however add a note of caution, advising on the practicality that ¾ of a cubic metre of C16 used in buildings would require 3 to 4 metres of standing timber.
Mr Robinson also highlighted these practical considerations, reflecting on the woodland creation targets set by the Scottish Government he highlighted that “for every 6,000 hectares of actually productive woodland…you’ve got another 4,000 hectares of something else which needs to be included as part of the landscape”. Mr Robinson did however highlight a pilot project commencing in Spring 2027 which Scottish Woodlands hoped would increase engagement between the sector and local bodies, with a view to addressing concerns at an earlier stage and improve collaboration between the public and private sectors.
Niall McLean, partner and solicitor advocate at Brodies LLP, reflected on some of the regulatory challenges and changes ahead. Considering the impact of statutory appeals and judicial reviews, Mr McLean acknowledged that the main issue for the sector is delay and whilst courts have improved timescales these challenges still impacted the ability to progress projects.
Mr McLean also considered the potential merger of Scottish Forestry and highlighted that if there is any uncertainty or delay caused by the process then there could be a risk of a “freezing effect” where more challenges are raised as a result of decisions not being made in accordance with statutory timescales. It would be important, therefore, to ensure that any process which is taken forward is adequately resourced to allow continued progress in the sector meantime.
The final panel discussion took place between Jamie Langan MSP, Andrew Baxter MSP, Donald Mackinnon MSP and Stuart Goodall, Chief Executive of Confor. The panel did suggest that they may disappoint delegates that had hoped for a robust affair, as all panellists were broadly agreed on the challenge the sector faced: demand for timber was increasing but production was not keeping pace.
Whilst the panellists did have some differing views on specifics, they did also broadly agree on the need for political courage to put in place plans extending beyond the five year parliamentary term that would in turn give the sector the confidence it needed to make investments and progress long-term projects.
The last word came from Graeme Leith, Partner and Head of the Rural Business and Natural Capital sector at Brodies LLP who noted that there was an “opportunity for a successful and productive forestry sector but also significant challenges which would require innovative and practical solutions.”
Brodies' Rural Business & Natural Capital team advises clients on all aspects of forestry, woodland creation and natural capital. To find out more, please get in touch with a member of the team.
