The Forestry Commission has hit back at criticism from forestry management specialist fountains plc.

Barry Gamble of fountains claimed the operation of the Forestry Commission helps devalue the UK timber market.

But Forestry Commission director-general David Bills said Mr Gamble oversimplified the debate and made some “highly questionable” comparisons with timber price trends in North America, Australia and New Zealand, all of which Mr Bills had worked or spent time in.

He went on: “I am pleased to see fountains is doing so well in the US but note the investment is in high value hardwoods which are self-generating – hardly a basis of comparison with fountains’ UK operations. The proper comparison is softwood, and softwood timber prices in the US and Canada have also reduced in real terms.

He added that New Zealand log prices had recently been dominated by export markets, while historically Australian prices were substantially lower than UK prices.

Mr Bills said UK price reductions could be explained by currency shifts, cheap supplies from the Baltics and overcapacity in Scandinavia and elsewhere in Europe, all of which is borne out by the latest Jaakko Pöyry report.

&#8220For every forest grower who worries about the FC being a commerical operator involved in regulation, I meet at least two who are thankful they have a regulator who knows what it is like in the forest during good times and bad”

David Bills, Forestry Commision director-general

Other factors relating to the UK include the reduction in small roundwood and sawmill residue prices.

He added: “To claim Forest Enterprise can do what it likes then get a top up grant from the government is nonsense. Most extra funding is for recreation, conservation and heritage programmes and to enable the FC to maintain its grant levels to the private sector.”

Responding to Mr Gamble’s arguments for an independent regulator, Mr Bills said the Forestry Commission’s public audit and reporting processes avoided conflicts of interest.

“For every forest grower who worries about the FC being a commerical operator involved in regulation, I meet at least two who are thankful they have a regulator who knows what it is like in the forest during good times and bad.”