A new Scottish proposal to reduce controversial subsidies for large-scale biomass power plants has been welcomed by the timber sector.

The UK Forest Products Association (UKFPA) is encouraged by the launch of public consultation over the proposal to reduce financial support for large-scale biomass electricity generators.

“We have been calling on the government in Edinburgh, and Westminster too, to recognise the fact that irreparable damage would be done to the UK wood-processing sector if generous public subsidies continue to be offered to large-scale electricity only generators,” said UKFPA executive director David Sulman.

“Subsidies, in the form of ROCs, boost the wood fibre buying power of the electricity generators, at the expense of wood supply to sawmills and panelboard mills. This amounts to unfair competition.”

Mr Sulman said it was challenging to get Westminster to think along the same lines as Scotland.