“It’s tough out there,” Timber Trade Federation National Panel Products Division (NPPD) chairman Bob Harvey told the division’s annual dinner last week.

“Our industry has been remarkably resilient but if the eurozone crisis is not resolved, the UK will inevitably suffer,” he said.

On the vexed subject of biomass, Mr Harvey called for government action, saying it must “level the playing field” with regard to subsidies. “Burning virgin timber can’t be a long-term solution to our energy needs.”

Referring to the government’s withdrawal of funding for the Timber Resource Efficiency Partnership, the chairman said he would like to see the government stimulate growth, particularly in the construction sector, and suggested that changes could be made to VAT, other taxation or stamp duty.

“The coalition is so paranoid about the overspending of the last government, it is doing nothing. It needs to encourage [growth] and stop blaming the last government,” he said.

“I would like to see this industry continue to flourish,” he said and concluded with a toast to the guests of the NPPD, who included several representatives from foreign embassies as well as overseas trade personnel.

Lathams’ director Chris Sutton will take over the chair of the NPPD for the next year as Mr Harvey stands down after two years in the post.