My hon. Friend makes the point clearly. I certainly agree that there is a nonsensical approach to renewable energy policy in the UK at the moment, which should be reviewed.
I want to go on to the issues facing the forestry sector. Given that the Scottish forestry sector receives vital support from the EU, the Scottish Government are focused on continuing investment in the sector to ensure economic growth, so that the reckless gamble of Brexit does not impact on that vital Scottish industry. The Scottish rural development programme, which is funded via the EU, provides vital support for the Scottish forestry sector and rural communities.
One of the main threats of Brexit is to confidence in the sector and to levels of woodland creation, and the long-term impact that will have on timber supplies to the domestic processing sector. New planting by the private sector is particularly sensitive to confidence about the availability of SRDP grant support in one to two years’ time and wider uncertainty in investment and land markets. I would like to hear reassurance from the Minister that the UK Government are taking steps regarding the future availability of forestry grants and that mitigation will be provided on that issue.
It is of extreme importance to reassure investors that Scotland is open for business, in both planting and investment in the processing sector. Timber processing has expanded significantly in the past 10 years. The Scottish Government have held two summits with the
forestry sector to listen to its concerns and ambitions for the future of forestry in Scotland. EU referendum issues were discussed indirectly, with regard to securing future funding for woodland creation grants; even there, the EU is important.
Our Rural Economy Minister, Fergus Ewing, has met with leading representatives of forestry management and investment companies to provide reassurance that the Scottish Government are committed to seeing the forestry sector thrive. Currently, the forestry sector enjoys zero or low tariffs on trade within the EU, so it is vital that there is a level playing field with other parts of the European Union. Support industries, such as forest nurseries, are very sensitive to sudden dips in demand, and even a short-term fall in planting could put some Scottish nurseries at risk.
As I said, the SNP has created the most ambitious planting target in the UK, at 10,000 hectares a year, and Scotland created 83% of all new woodland in the UK in 2015-16. Since the forestry grant scheme opened in April 2015, more than 1,000 applications, worth £45 million, have been submitted, including for more than 8,500 hectares of woodland creation. Of that, 4,300 hectares of woodland creation, with a value of around £23 million, has been approved.
This issue is very important. I am grateful to the hon. Member for Brecon and Radnorshire for securing the debate and allowing it to be discussed. We are approaching Christmas, and it is important to end on the right tone. Christmas trees are an important seasonal part of Scotland’s rural economy. Scotland’s forests provide homes for wildlife, as my hon. Friend the Member for Angus (Mike Weir) mentioned, as well as places for recreation, and they help to reduce the impact of climate change and flooding.
To underline the importance of the industry, the First Minister has encouraged people to support Scotland’s rural economy this Christmas by buying home-grown Christmas trees. Two Norway spruce trees, grown by Highfield Forestry in Beauly—right on the edge of my constituency, in an area I used to cover as a local councillor—were delivered to the First Minister’s official residence, Bute House. Let us hope that tree planting and the timber industry in Scotland and the UK have a very happy new year. We wait to hear the answers on how that will be delivered.
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