Forest grant scheme now established

Press, 28 October 1982, Page 16

Forest grant scheme now established

Parliamentary reporter The new forestry encouragement grant scheme announced in the Budget has now been established.

, The scheme would put all private forest growers on the same footing and replace all present forms of assistance, said the Minister of Forests, Mr Elworthy. ;As from April 1, 1983, ■ companies' would no longer - receive tax credits or deductions oh forestry income', and the loan schemes for local

authorities would also be replaced. All forest growers would be on a flat rate of 45 per cent of qualifying' costs incurred in establishing, tending and maintaining forests. There would also be no limit on the annual or total planting, he said. Under the previous scheme of grants an upper limit of $l5OO per hectare had been placed on growers. There had also been restrictions on the costs that could be

claimed. Forests which fulfilled special water and soil protection functions would continue to receive separate assistance at the present rate of 66.67 per cent of establishment costs, Mr Elworthy said.

All present grant holders would transfer to the new system next April along with companies. Approved loans to local authorities would remain in force under the present terms and conditions.