Forest Holidays: Forestry Commission Stake

Lord Clark of Windermere Excerpts

Tuesday 17th March 2015 Lords Chamber

[Lord De Mauley]

My Lords, the Forestry Commission has to approve of any new sites for this activity, such approval not to be unreasonably withheld, which is a reasonably common requirement. In practice, Forest Holidays is unlikely to be able to progress a site if it does not have the full support of the Forestry Commission. Forest Holidays also has its own site selection criteria, which exclude any site where there are significant environmental constraints.

I spoke to the chairman of the Forestry Commission today, and he confirmed that only a limited number of sites are available within the public forest estate.

[Lord Clark of Windermere (Lab)]

I declare an interest as the chair of the Forestry Commission from 2001 to 2009. As the House may know, there have been two joint ventures with the Forestry Commission and Forest Holidays, one on my watch in 2006 and a later one in 2012. Will the Minister confirm that, on the first occasion, it followed full parliamentary procedure, had the approval of the Treasury and went out to full competitive tendering?

As regards the second venture, will the Minister assure the House that if the private sector investor decided to sell its share, the Forestry Commission would not be forced to sell the commensurate share at the same time?

[Lord De Mauley]

I can confirm most of what the noble Lord said. The terms under which the current joint venture operates are very much the same as for the original joint venture. If the controlling interest is sold, the Forestry Commission may be required to sell its interest in the company by the buyer, including the Forestry Commission’s stake in the business. The sale would not change the controls set out in the framework agreement and the site leases.