The timber industry and wider construction product sector have welcomed the stability of the new coalition government, despite pre-election fears that a hung parliament could lead to greater economic uncertainty.
Stuart Goodall, chief executive of the Confederation of Forest Industries, said the Conservative-Liberal Democrat coalition was the most stable outcome from the industry’s perspective, while the Construction Products Association said the prospect of a fixed-term parliament gave the industry “something to work towards”.
In the last issue of TTJ, several industry executives expressed hope of an outright majority election win and were concerned that an inconclusive result could weaken the economy.
“Both the Conservative and Liberal Democrat parties have been very positive to us in supporting expansion of forestry planting and increasing the use of wood,” said Mr Goodall. “It looks as if this is a government we can work with.”
He hoped shadow forestry ministers James Paice (Conservative) and Tim Farron (Lib Dem) could continue their roles into government.
Mr Goodall said the Labour government had been more positive towards forestry and wood-using industries during its last days, but for much of its time in government had emphasised the environment/social recreation aspects of forestry in England more than as a production enterprise.
“Labour did not quite grasp the important role productive forestry could provide both in terms of the economy and in terms of the carbon issue and climate change.”
“With the rebirth of Wood for Good and the pre-election work with opposition parties I fully expect us to be able to maintain the level of policy influence we enjoyed under Labour,” said John White, Timber Trade Federation chief executive.
Mr White recognised the need to cut the deficit, but said the new government must understand that cuts to construction expenditure would have a net negative effect. “Each £1 spent on construction generates £2.84 of benefit,” he added.
The Construction Products Association (CPA) believes the Lib Dems will have to compromise their demand for an equalisation of VAT rates on new housing and RMI work.
CPA spokespeson Simon Storer said both parties’ manifestos call for more local accountability in the planning system, which was a “concern”, “but the most important thing for the industry is we have some stability which we were all in need of”.
The coalition government deal includes a commitment to criminalise the import or possession of illegal timber, prompting TTF head of sustainability Rachel Butler to speculate whether this meant it would enact legislation regardless of the outcome of similar EU moves. “The focus and words on timber are welcome, but we wouldn’t want the policy to undermine the European process and adversely affect UK trade,” she said.
