| 1. | A significant part of the timber trade involves a world market in what are effectively illegal and stolen goods, worth up to $15 billion a year, for which the EU (including the UK), the US and Japan are the main markets. The impacts of this illegal trade on valuable ecosystems, the world's poor, the economies of developing countries and climate change mean there is a moral imperative to address this problem in every way possible. (Paragraph 5)
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| 2. | For natural and ancient forests to survive and function properly in providing livelihoods and protecting the planet's climate and species, the final goal must be not just a legal timber trade but also a sustainable timber trade. In the long term, anything less would have to be regarded as failure. (Paragraph 11)
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| The Timber Trade |
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| 3. | Any measures put in place to tackle illegal logging in the EU must be considered in the context of China and India as alternative, and very hungry, markets where there are few if any existing controls on the sources of timber entering the country and very little prospect of this changing for the better in the near future. (Paragraph 15)
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| 4. | Illegal timber is currently a fact of life within the UK timber trade. It is therefore virtually impossible for even those companies that are attempting to eliminate illegal timber from their chain of supply to guarantee that they have done so (Paragraph 19)
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| 5. | By allowing its members to use the Code of Conduct in promotional material, without thorough and transparent enforcement, the Timber Trade Federation is in danger of misleading customers as to the legality and sustainability of the industry it represents. (Paragraph 22)
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| 6. | Whilst the establishment of the Responsible Purchasing Policy by TTF is encouraging, the low uptake at its launch is definitely not. It also raises the question as to why it was needed given that all its members are supposedly already complying with the Code of Conduct and therefore sourcing their timber and timber products from legal and well-managed forests. (Paragraph 23)
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| 7. | Progressive timber companies struggle to ensure they have legal supplies of timber. For those UK companies that are less committed to ensure legality and a reliable chain of custody, the only real drivers for improvement will be the need to comply with legislation and a very real threat of prosecution. (Paragraph 26)
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| 8. | In our view, FSC is ideally positioned to expand its role and work to raise awareness of sustainable timber and related issues, if increased resources were made available to it. (Paragraph 28)
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| International Agreement |
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| 9. | The conclusion of most witnesses was that, however desirable, it is unlikely that a multilateral agreement will be reached within the short to medium term and other measures are needed to reduce illegal logging and improve sustainability. It is with regret that we agree, despite the fact that we see a binding multilateral agreement as the most effective way of improving the management of forests worldwide. (Paragraph 37)
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| 10. | We are very keen to hear from the Government how the G8 agenda on timber is being taken forward, together with any positive outcomes from the recent ENA FLEG meeting held in November 2005. (Paragraph 40)
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| FLEGT Action Plan |
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| 11. | Progress towards implementing measures on illegal logging under the FLEGT Action Plan during the last six months has been disappointingly slow. It would be useful for us to receive a detailed report from DEFRA on what progress has been made during the UK Presidency and what discussions there have been with Austria to ensure that, whatever momentum there is, is carried forward during the first six months of 2006, when it takes over the EU Presidency. (Paragraph 43)
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| 12. | Measures that properly address circumvention and illegal imports from non-partner countries are of crucial importance for Voluntary Partnership Agreements to be a success. It is an enormous lost opportunity that the licensing scheme approved by the Council of Ministers does not satisfactorily address either of these. (Paragraph 48)
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| 13. | If we are asking poorer producer countries to spend what are often precious and limited resources in improving their forestry management the onus must surely then be on the EU and Member States to do the utmost in their power to secure a stable market for the resulting certified timber. This should include some form of commitment to purchase timber from VPA signatory countries. (Paragraph 51)
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| 14. | We urge the UK Government, through its own channels and those of the EU, to assist Ghana and other interested countries in every way—financial or otherwise—to achieve their aim of putting the necessary procedures in place to verify legal timber production and enter into a VPA with the EU. (Paragraph 51)
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| 15. | We are disappointed at the lack of will both within the UK Government and the EU to push legislation on illegal timber forward as an integral part of putting in place successful Voluntary Partnership Agreements (VPAs). Without legislation to underpin VPAs they will undoubtedly fail—if they are taken up at all. (Paragraph 55)
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| 16. | If the issue of illegal timber is to be tackled there is no option but to legislate against it. We agree with the Minister that, if there are difficulties with WTO rules, alternatives to a direct ban on illegal timber imports need to be examined. We support the German proposed legislation and would very much hope to see this applied on an EU-wide basis in the future. (Paragraph 57)
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| 17. | As progress on any matter on an EU-wide level is usually slower than would be ideal, options for UK national legislation must also be taken forward as a matter of urgency. The UK Government must pursue all options, including the implementation of a Lacey-style Act within the UK making it illegal to posses or market illegal timber products. Anything less would demonstrate a lack of commitment by the Government. (Paragraph 58)
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| 18. | We would hope to see legislation in place in the UK within the next three to five years. With this in mind DEFRA should commission Chatham House, which is already doing excellent work in this area, to examine what kind of effective legislation could be introduced within that timeframe. (Paragraph 59)
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| UK Timber Procurement |
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| 19. | We very much welcome the changes in Government policy on sustainable timber procurement that have been put in place since our predecessor Committee's report in July 2002. We also recognise the personal commitment of the Minister, Elliot Morley MP, to the subject and we very much welcome his determination to continue to tackle this very important issue. (Paragraph 62)
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| 20. | It seems incredible to us that the complete lack of reliable data, clearly identified as a fundamental hurdle to improving sustainable timber procurement at least four years ago, and recognised as such by the Government, has yet to be properly addressed. (Paragraph 63)
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| 21. | The Government needs to set out a clear strategy to address this lack of data for all procurement, ideally within SDiG. In the meantime Central Point of Expertise on Timber (CPET) should lead the way by focusing on timber procurement and we would like to see set out in detail how this will be done. (Paragraph 64)
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| 22. | Many environmental groups and members of the timber industry, such as Timbmet, argue that a forest cannot be said to be sustainably managed if it does not protect the rights, health and livelihoods of people who live in or adjacent to forests and are dependent on them. We would agree. (Paragraph 75)
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| 23. | We therefore question whether it is possible for the Government to state that it has a sustainable timber policy—legal, yes—if the social implications of how and where it purchases timber are not a consideration. As it stands sustainable timber procurement is a misnomer. (Paragraph 76)
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| 24. | We urge the Government to seek clarification regarding the basis of the Danish approach and the EU position on the inclusion of social considerations in procurement contract. Furthermore, given that the decision not to include social considerations for once appears to be unrelated to restrictions under any WTO agreement, the Government must work hard within the EU to change policy and remove these restrictions, should it become clear that they are real rather than apparent. (Paragraph 77)
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| 25. | CPET should make clear to PEFC that it would be desirable for it clearly and simply to set out the minimum standards it expects all its national members to conform to if it wants continued approval of its scheme. (Paragraph 82)
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| 26. | It is important that whatever form Category B proof takes, CPET establishes a clear and comprehensive method of assessment that really delivers legality and sustainability and leaves no room for confusion amongst suppliers or procurers regarding what is required. It is also vital that CPET offers practical support to procurement officers in making judgements as to whether or not proof provided is acceptable. (Paragraph 84)
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| 27. | We welcome the Minister's assertion that he is keen to extend the standards set for Central Government to other public bodies, and that he is taking action to do this. We would be very interested in hearing what precise form this action is taking. (Paragraph 86)
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| 28. | Every effort is necessary to ensure a harmonized timber procurement policy across Europe. We welcome DEFRA's efforts to engage with other EU members on the issue of Government procurement and look forward to hearing how it intends to take this agenda forward with its European partners. We would however caution against implementing any common European standard that resulted in a reduction of the standards already put in place by the UK Government. (Paragraph 88)
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| 29. | CPET offers by far the most advanced form of sustainable procurement advice within Government. As such a pioneer we are hoping to see it have significant impact. We also expect it to be used as a tool by DEFRA, OGC and all those involved in procurement, with the hope that what is learnt through improving the Government's procurement process for timber can be applied across all other areas. (Paragraph 89)
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| 30. | We encourage CPET to examine ways in which departments and procurers can be encouraged to purchase timber and timber products from producers working to achieve sustainability, over those simply achieving legality, when sustainable products aren't available. This should include the introduction of a third category of timber, above legality and below sustainability, of 'progressing towards sustainability' to be included in guidance as soon as possible. (Paragraph 90)
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| 31. | It is also vital for DEFRA to set a clear timetable for implementing a requirement for all departments and other government bodies, local and national, to purchase only sustainable timber. In our view five years would be a realistic deadline. This would give clear signals to the market that legality is not enough and an incentive to work towards increasing sustainable timber production. (Paragraph 91)
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| 32. | Whatever criticism there may be from ourselves and others with regard to the detail, it is undoubtedly true that CPET's work has the potential, as has already proved to be the case, to have significant impact on timber procurement and timber production worldwide. We look forward to seeing greater positive impacts worldwide as CPET's role expands and develops in the future. (Paragraph 92)
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| Conclusion |
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| 33. | In many of the areas covered by this report the UK Government has proved to be an international leader: government procurement, assessment of certification schemes, negotiation of VPAs. Now its EU presidency is over it must not become complacent and must continue in this role. It must lead by example. It must push for EU wide legislation. If this fails it must implement national legislation. It must also, very importantly, ensure that companies based in the UK are not allowed to carry out or finance destructive activities in other parts of the world that would not be allowed in this country. Timber and sustainability is an area in which we will watch to monitor progress, and which we may wish to return to in the future. (Paragraph 95)
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