"This is a pragmatic and very welcome step by the GLA and the government," said Confor chief executive Stuart Goodall.

The forestry sector has maintained that it is a very low risk industry for gangmaster activity, since the formation of the GLA in 2005, and Confor has been in ongoing negotiation with the government for exemption.

This led to a pilot programme whereby the GLA could continue to monitor and regulate the sector, without an upfront application inspection and payment of the associated fee. Under the programme, however, forestry operators have still had to pay a licence and annual renewal fees of several hundred pounds.

"We have always argued, and the government has increasingly come round to accept, that the forestry sector is low risk from gangmasters, and following completion of the current consultation process, we are expecting to be granted exemption next summer," said Mr Goodall. "So we were facing the situation where forestry operators were continuing to have to pay fees, in the knowledge that the law would shortly be changed and they would be exempt."

He added that the continued levy of fees created a risk of "non-compliance" on the the part of forestry businesses with GLA legislation as it now stands.

He said that payment of the original application inspection fee was a major burden on many companies, particularly smaller operations.

"Companies may have been turning over £20,000-30,000 a year from their forestry activities, and facing fees of £2,000 – and we may potentially be talking hundreds of businesses working on low margins," he said. "Some said that a continuation of the situation would make them reconsider their involvement in forestry."