| | CONTRIBUTION TO SUSTAINABILITY AND SUSTAINABLE DEVELOPMENT |
| 3.1 | Sustainability was a common theme running through the majority of the responses. |
| 3.2 | Many respondents recognised the need to address the three cornerstones of sustainable development namely social, environmental and economic issues in order to achieve a sustainable woodland strategy. |
| 3.3 | Specific concepts of sustainable development practice with respect to Welsh woodland were also well exemplified in the response of the Continuous Cover Forestry Group who seek to" integrate economic, environmental, and social considerations, in a sustainable manner" through the adoption of an holistic approach to woodland management. |
| | CONTRIBUTION TO THE ECONOMY |
| 3.4 | The role of the Welsh woodland resource as an economic driver, particularly in rural areas, was widely recognised. It was felt that woodlands link to economic development principally through the processing and retailing of timber products, but also through tourism, recreation, game and in helping to sustain attractive surroundings for new business and settlements. A number of respondents highlighted the economic benefits of woodland management for purposes other than timber production, and identified that these non-market benefits need to be factored into future economic analysis. Some respondents suggested "woods become the product rather than the timber they produce" (62). |
| 3.5 | According to the Welsh Development Agency, who quote from the 'Welsh Forestry Multiplier Study' (undertaken by the Welsh Economy Research Unit in 1999), the forest industries within Wales provide direct employment for some 4,400 people, and generate £61million of disposable income and £474 million of output into the Welsh economy. In addition, there is a view that woodlands are better providers of employment with respect to job numbers per unit area of land than upland mixed farming and hill sheep farming. |
| 3.6 | Some respondents believe, however, that the role of woodlands in making a real contribution to rural development has still to be clarified, and that better information is needed about the effectiveness of the contribution that forestry makes to the Welsh economy. For example, the National Trust highlights that "job creation in forestry and related industries, even allowing for the tourist and recreation employment effect, may be very expensive in comparison with other new business opportunities. However we see some potential for the creation of new jobs". Similarly Powys County Council states that "it is difficult to get objective information about the economic impact of forestry". |
| 3.7 | It is noted by the Countryside Council for Wales that the marked shift away from direct employment of local forest workers to the use of contractors, has resulted in many rural communities loosing their links with the local land-use. In turn, the loss of manual forestry skills may impact on the management of broadleaf woodlands. |
| 3.8 | In contrast, the timber production industry believes that the benefits of Welsh forests to local rural economies are currently under-developed compared to those in many comparable countries. It is thought that this is due to the location of the main forest blocks in isolated areas, and management factors. |
| 3.9 | The economic interaction with agriculture is also widely recognised. It is the view of some in the forestry industry that the current down turn in the agricultural economy will place more reliance on commercial forest activities to support the rural economy. As highlighted by the Country Landowners Association, "forestry…offers an alternative land-use to agriculture, especially on more marginal land". |
| | The Softwood Timber Industry in a Global Market |
| 3.10 | Many respondents outside the forestry industry note that much of the Welsh softwood timber industry is (as described by the Welsh Association of National Park Authorities) "worth significantly less than it has cost to grow". This is reported by many, including workshop participants, to be a result of a combination of factors, notably: historical imperatives (described below); competition from softwood producers in Scandinavia and the Baltic States (made worse by the current high value of sterling); high costs of handling and transportation from remoter Welsh forests; and the difficulty of exporting Welsh timber products (again with the high value of sterling). In addition, it is reported that the use of re-cycled wood fibre in both the paper and panel board sectors has impacted badly on prices for small roundwood in Wales. |
| 3.11 | A large proportion of Welsh forests and woodlands are recognised to be unusual in a European context because they predominantly consist of non-native species. It is widely reported that Welsh conifer forests were not originally conceived for commercial activity, but were established to provide a reliable source of roundwood for the mining industry (pit-props) in the event of war and a blockade on timber imports. However, despite this no longer being a production driver, woodland management is thought by many to be still largely based on this historical imperative, and many respondents identified that there is now limited strategic, economic, social or environmental justification for perpetuating such a management policy. |
| 3.12 | The view that Welsh forestry is not economically viable is countered by many within the timber production industry who note that demand for timber products in Wales and the UK is far greater than current productive capacity. It is widely acknowledged that approximately 85% of the UK's consumption of timber-based products is currently imported from overseas. Furthermore, as noted by the WDA, global demand for timber products will increase by 65% over the next 20 years, focusing the need to improve the economic viability of the Welsh timber industry as a priority. |
| 3.13 | In addition, there is general support within the timber production industry for retaining a strategic supply of suitable quality softwood to sustain the large investment that has been made in the Welsh timber processing industry. However, recognising that much of the primary and secondary wood processing of Welsh timber is undertaken outside Wales, many of the respondents highlighted the need to "add value" to the Welsh softwood timber industry through local processing. In addition, the idea of producing and marketing higher value timber products from smaller production facilities in rural locations was emphasised as a way of helping achieve a self-sustaining timber industry. |
| 3.14 | It is also recognised that wood products have significantly lower energy inputs than competitor products such as concrete, plastic and steel. Therefore, in the long-term, and assuming the establishment of legislation that penalises the use of energy wasteful manufacturing processes, softwood production is regarded by some in the timber industry as a positive way forward. |
| | Coed Cymru and the Hardwood Timber Industry |
| 3.15 | The broadleaf (hardwood) timber industry is discussed by a variety of respondents, with many referring to the work of Coed Cymru. There is a strongly polarised view on the relative merits and benefits of this timber sector and more specifically on the work of Coed Cymru. |
| 3.16 | Many in the forestry industry believe that the potential value of hardwoods in Wales is limited as a result of the exacting conditions that broadleaf species require to thrive. There is also much criticism over the long time-scales required for growing a hardwood crop. On this basis, and in light of the large subsidies required to set up such initiatives, it is felt by many in the timber production industry that the work of Coed Cymru is largely ill conceived and nothing more than "subsidy-dependent gardening" (178). |
| 3.17 | Moreover, it is suggested that the ability of Welsh foresters to produce a competitive quality hardwood product is an unrealistic pipe dream. There is equally concern that the hardwood industry is currently threatened by increasing supplies from abroad, particularly in light of the hardwood that will become available as a result of the recent storms that have flattened large areas of broadleaf woodland in France and Germany. |
| 3.18 | By comparison, most woodland owners and those not directly involved with the forestry industry strongly support the development of a hardwood timber industry. The general mood of these responses is reflected in that of the Countryside Council for Wales which recognises that the work of Coed Cymru has "demonstrated inter alia an integrated approach to landuse management and the wider rural economy, linking woodland management, timber harvesting and marketing and small scale, often rural, manufacturers who produce high quality products which carry a strong Welsh identity". |
| 3.19 | Similarly, the potential for further broadleaved woodland production is widely recognised - "despite the achievements of Coed Cymru there are still huge areas [of broad-leaved woodland] which are unmanaged, with potential for regeneration". (Powys County Council). |
| 3.20 | There is also some counter commentary on the timescales of hardwood production. Notably, Ceredigion County Council identifies that "the commonly held misconception involving prohibitively long time spans [of hardwoods] is not applicable especially when value is added. For instance thinnings recently taken from a 48 year old stand of red oak were converted on a mobile double slabber sawmill into 6000 linear metres of 3" strip flooring for Aberaeron School. The wood had been thinned previously for firewood, a commodity in Ceredigion which offers a higher rate of return than pulp because of excessive haulage distances". |
| 3.21 | It is also recognised by many respondents that the hardwood industry has managed to address some of the economic and marketing issues currently facing the softwood sector, namely, the need to overcome competition from overseas markets and to add value at the processing stage. The presence of a number of hardwood mills which add value to timber production (supported by Coed Cymru) is recognised. Although it is highlighted that the recent closure of one of these mills may indicate the uneconomic basis of Coed Cymru's activities. |
| 3.22 | It has also been reported by Coed Cymru representatives that 'Challenge Funding' for access improvements and the management of upland oak woodlands has created some employment for skilled chainsaw operatives who have been forced to seek alternative work in light of the reported declines in the softwood industry. |
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