Scottish timber industry fears about the impact of the proposed £1bn Forscot project on their businesses have been taken up by MSP Fergus Ewing.

The Scottish Parliament member for Inverness, East Nairn and Lochaber is also questioning Highlands and Islands Enterprise about how much of the scheme’s cost is being funded from the public purse, maintaining that nearly £250,000 of public money has already been paid over.

Mr Ewing said local sawmilling and processing companies are concerned about the impact the project could have upon their businesses.

He went on: “They take this view as the basis on which the Forscot project has been assessed contains no credible assessment of how existing businesses will be affected.”

Forscot predicts it will use around four million tonnes of Sitka spruce but Mr Ewing said industry sources believe the figures are flawed and that a massive growth in demand would lead to supply failure and price hikes.

And he wants to know exactly how much public money Forscot is looking for. He said: “I asked the Enterprise Network to provide this informaion under the Freedom of Information (FOI) law and have the response that it must be withheld. I have asked for a review of this refusal and plan to take the matter to the FOI Commissioner.”

Forscot managing director Tharald Frette said: “It is not our intention to jeopardise existing timber processing businesses. Indeed, we hope to work with these, as well as other local businesses, to provide us with the goods and services we will need to build and operate a plant that will bring major employment benefits to the area.

“It is for this reason that we sought some initial funding to ensure that this project can become a reality.”