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Chamber and committees

Plenary, 22 Nov 2007

Meeting date: Thursday, November 22, 2007


Contents


Bog Myrtle (Sweet Gale)

The final item of business is a members' business debate on motion S3M-425, in the name of Mary Scanlon, on the bog myrtle or sweet gale industry. The debate will be concluded without any question being put.

Motion debated,

That the Parliament recognises the potential for the bog myrtle (sweet gale) industry in the Highlands and Scotland; considers that support should be accelerated for the industry, which sees bog myrtle grow wild and be cultivated on plantations across the Highlands, and is soon to be expanded to other regions including Moray, Aberdeenshire and the Borders; notes that immediate support is necessary to establish development, planting and research study which will ensure that the industry develops quickly and that crofters, farmers and landowners involved in the production of bog myrtle see an immediate effect, and believes that support should be given to the commercial planting programme to help mitigate the risk undertaken by initial growers to establish crops in order to see the production of bog myrtle increase in the Highlands and establish the crop in other parts of Scotland in an effort to meet the anticipated global demand for this plant from the healthcare industry and drinks manufacturers and ensure that the subsequent planting by growers continues on a sustained basis.

Mary Scanlon (Highlands and Islands) (Con):

I thank all the members who have stayed behind for the debate, and those who signed the motion and attended the briefing by Alliance Boots at lunchtime. Sweet gale is a folk name, which is taken from the botanical name Myrica gale for the plant that is better known as bog myrtle. It is a moorland shrub that thrives in damp or boggy soils, and was used by the Vikings to treat depression and poor memory and to give a sense of well-being. For thousands of years, extract of sweet gale has been harnessed for its antibacterial and antioxidant properties.

Although the plant grows wild and on cultivated plantations throughout the Highlands, production could expand into more traditional arable areas such as Moray, Fife, Aberdeenshire and the Borders. The background to the debate is the exceptional demand for the plant, with the Alliance Boots development plan requiring many more tonnes of sweet gale oil than is currently available. Alliance Boots researchers have exploited the properties of the plant and utilised its potential as an active skin care ingredient. After five years of research and trials, sweet gale's place in the Botanics range, to improve blemishes and the complexion, is guaranteed. I understand that sweet gale or bog myrtle is six times more effective than tea tree oil and 10 times safer.

The partnership between Highland Natural Products Ltd—which we have to thank for much of the innovation relating to the product—Boots, the Scottish Agricultural College, Cranfield University, the University of Bradford and Kew gardens has worked to research the commercial viability and compounds of sweet gale, which has led to the increased demand.

The sweet gale Botanics sensitive range uses all the available oil. Distribution and promotion of the line cannot increase as stocks would run out, because of the limited production of sweet gale. In the drive to establish commercial cultivation, 13.5 hectares of sweet gale will be planted in pilot areas by the year's end, but that will be insufficient to meet the demand, which Boots says could be expanded and developed globally if yield were increased and opportunities were presented.

Highlands and Islands Enterprise has approved about 25 per cent of the funding for researching the cultivation and oil yield of plantations, which are in addition to plants that grow wild. The remaining funding is from the Boots Group. It is hoped that the research will translate the sweet gale plant from a wild crop into a farmed crop. The results of that research will enable farmers and crofters to grow plants and deliver sweet gale oil with consistent yields and quality, which will allow further development of the product.

Peter Peacock (Highlands and Islands) (Lab):

Mary Scanlon raises extremely interesting and valid points and highlights a new economic opportunity for many people. Does she agree that Highlands and Islands Enterprise, which is funding research, may have a longer-term role in helping to market and promote the industry that will develop and that the new rural development programme, for which the Minister for Environment has some responsibility, may also make a big contribution? I hope that that will happen.

I apologise to members for having to leave early and I thank Mary Scanlon for raising important points.

Mary Scanlon:

Once a minister, always a minister. I believe that the Minister for Environment will talk about the rural development programme. As an MSP for the Highlands and Islands, I welcome Highlands and Islands Enterprise's input into the product.

NFU Scotland says that the commercial cultivation of sweet gale provides a new direction for the farming industry and an opportunity to encourage new rural businesses, as Peter Peacock said. It says that although a large market awaits sweet gale producers, if crucial support for production set-up costs were to stall, that could jeopardise the industry's future. Farmers and growers need to know as soon as possible whether funding will be forthcoming, as they must decide whether to start planting. The crop is likely to provide an income of between £500 and £700 per hectare, often in remote rural areas where such money would be hugely welcome.

Scotland's sweet gale industry is flourishing. It brings new business and opportunities to fragile areas that have traditionally offered few job opportunities. However, no direct financial incentives are offered for the cost of the plants and their cultivation in the first year. After that year, the crop is low maintenance, as it is established.

More recognition and promotion are needed of the role in the rural economy of high-value non-food crops. We must acknowledge the innovation of the sweet gale product and provide funding streams to kick-start production and support first-entrant growers. Increased production of the ancient plant sweet gale would bring money into remote and rural areas but, because it is neither a tattie nor a tree, it attracts no funding incentives for growth to meet the guaranteed demand.

Could the production of sweet gale be permitted as cultivation under paragraph 13 of schedule 2 to the Crofters (Scotland) Act 1993, as amended? Could crofters access support that is available for agricultural production, including the crofting counties agricultural grants scheme? Will the minister confirm that the second tranche of implementation of the Crofting Reform etc Act 2007 in January 2008 will provide that growing bog myrtle is a wider use of crofts and common grazings? I hope that the minister will examine all those opportunities.

On behalf of bog myrtle, which is now known as sweet gale, I ask the minister to respond with an assurance that will encourage farmers and crofters to grow a sweet gale crop to yield the consistent high-quality oil that is required from this unique natural Scottish product.

Roseanna Cunningham (Perth) (SNP):

As I have indicated, I regret that I will have to leave the chamber at 17.45, but that might in fact encompass the whole debate.

I congratulate Mary Scanlon on securing the debate. I attended the reception at lunch time today—I thank the sponsors—but I will show my age by saying that listening to the name sweet gale has left me with the Lou Reed refrain, "Sweet Jane" running through my head all day; that is about a very different plant with very different properties.

I first came across sweet gale in a magazine article a couple of months ago—as a woman, I have to say that when we see a magazine article about wonderful new advances in skin care, we read it. I read the article about sweet gale and puzzled all the way through, thinking, "I have never heard of this thing—what on earth is it?" At the end of the article, it said that sweet gale was bog myrtle and I had a laugh—I can see the ad man's problem in trying to sell to the world skin care products that are made of something called bog myrtle. It has duly become sweet gale, and that is fine, because it has turned out to be one of those ubiquitous Scottish plants that, nevertheless, has enormous economic potential for Scotland.

We are accustomed to reading about the great resource of the Amazon basin, and the wonderful and varied things there that might provide all sorts of splendid biochemical products for the future. The danger is, however, that we overlook things that are right on our doorsteps—or perhaps, I should say, in our back gardens, as many members will have had occasion to curse plants such as bog myrtle in the past. It turns out that Scotland is full of equally effective plant life, and the problem now lies in taking those plants and turning the theory of how good they can become into practical production.

I do not want the debate to concern only the Highlands, because bog myrtle grows throughout Scotland, even in areas that are partly urban. A lot of rural Scotland is not the Highlands, and there are areas that lie closer to urban centres which could be considered in relation to the issue. Bog myrtle is potentially of huge economic importance—we must not lose sight of the fact that Boots is already putting products made from it on its shelves. It is not something that could possibly be marketed in the future; it is being marketed and sold right now, and Boots cannot keep up with the demand. There is the possibility—in the supposed working of the market—for the situation to arise in which there is almost unlimited demand, because the producers cannot keep up with the demand even in the United Kingdom, much less roll out the products internationally. There is an enormous economic opportunity.

I hope that Mike Russell will not take this suggestion amiss, but I would have liked Jim Mather, as the Minister for Enterprise, Energy and Tourism, to be here as well, because it is equally important for him to take some of the issues on board. We are back to our old friend—how to get start-up capital, and how to get innovative development off the ground and moving. It is a matter of innovation, and I hope that that is at the heart of everything that we do. I echo the questions that were behind Peter Peacock's comments about whether we can find a place for non-arable crops in our various incentive schemes, in order to supply the enormous demand that exists for the product.

Jim Hume (South of Scotland) (LD):

I declare, of course, an interest in farming.

I am grateful to have the opportunity to speak about bog myrtle, and I congratulate Mary Scanlon on securing the debate. She is living proof of the benefits of bog myrtle oil, having been a user for, I believe, two weeks. It is a miracle. Unfortunately, Mike Russell does not use the product—

How does the member know?

Jim Hume:

It is obvious. We can see the urgent need to make bog myrtle oil more widely available.

Bog myrtle is a Scottish product that is superior to Australia's tea tree, and an exciting one. Myrica gale—to use its botanical name—is happy in the damp, acidic soils that are common in Scotland.

In 2006, Scottish Enterprise and Highlands and Islands Enterprise commissioned a report into the business opportunities for Scottish growers, the wider economic benefits for Scotland and the attached risks. It covered the expected value to Scottish farming; the value to seed and plant providers; the capacity for research and development related to the plant; manufacturing and job opportunities; the promotion of a natural Scottish product by a major multinational; the cultivation process; transport logistics; the distillation process; and timing issues in terms of production profile versus market requirements. The report concluded that there are significant opportunities for Scotland, both in the Highlands and Islands and in the South of Scotland, in the commercial production of bog myrtle.

This debate is a timely reminder of the importance of the Scottish Enterprise network in identifying new economic ventures and of the role of local enterprise companies in bringing those ventures to their areas. I am thinking of the work of the Borders LEC on farming and the extensive work of Scottish Enterprise Dumfries and Galloway on forestry opportunities.

Key to the success of any initiative are two things. First, there must be an open and co-operative supply chain, with commercial contracts, so that propagators and growers are given a fair price and receive assurance about uptake of their product. In the past, cereal growers have faced problems with their contracts in those respects. Fair trade here would protect the investment of Boots and lessen the risk for the grower.

Secondly, there should be access to the rural development plan—which has been mentioned—and support for growers, as well as for nurseries. The agricultural business development scheme, the farm business development scheme and the agricultural processing and marketing grant scheme are now all closed to applicants. I hope that the minister will note that and make money available through the new rural development plan for farm diversification into, for example, alternative, non-food products.

There is demand for bog myrtle. Earlier in the year, it was estimated that bog myrtle could generate £5 million for rural areas—maybe more if it was exported to America. Additional income would be welcomed by any landowner or farmer, but with any new product there are risks. Plants do not always survive, and the cost of establishing plants can be up to £7,000 per hectare. There are trial plots in the Highlands, and Alba Trees of East Lothian—in my region—and the Buccleuch Group have successfully propagated 250,000 plants, proving that propagation can be successful in Scotland.

Bog myrtle shows that there are opportunities in rural Scotland, but it is no panacea. We should invest in research into such opportunities, not just from plants but from existing traditional rural industries. I am thinking of the use of wool in the building industry and in brakes in aerosystems; the use of cereals in packaging, lubricants, resins, fuels and textiles; and even the use of nettles in fine cloth, which has already happened. All of that can be done in Scotland, not just in the Highlands but in the South of Scotland.

Bog myrtle can be marketed as an entirely natural Scottish product. I look forward to the Government supporting this innovative product—no moaning about myrtle—and supporting other alternative uses for traditional agricultural products.

Sarah Boyack (Edinburgh Central) (Lab):

I congratulate Mary Scanlon on securing the debate and on having done her research. She has managed to shed new light on the properties of sweet gale. I thought that I knew about it, but she has added more information to the debate.

This is a perfect topic for a members' business debate. It is something that we can get our heads round and it is of interest to members across the chamber. There is clear cross-party support for the product. At the end of these debates, having raised awareness of a topic, a minister sits in the hot seat waiting to reply and to reflect on the comments that we have made. I congratulate Mary Scanlon on picking bog myrtle for her topic. It is an excellent choice for a debate.

One of my most enjoyable engagements as a minister came in the latter days of the previous Executive. Members might not think that that was an exciting time, but there were a lot of exciting times in the last year of that Executive. The engagement was to do with sweet gale. I was vastly impressed by the huge amount of work that Boots and the other partners put in. That work has enabled us to reach the point that we are at today. I congratulate people outwith the Parliament on the work that they have done.

The sweet gale industry is undergoing precisely the sort of development that we should support in Scotland, as colleagues have said. In that industry there is local research, which does not get raised often enough in the Parliament. We tend to think about research in the big universities, rather than the bottom-up research that the bog myrtle or sweet gale plant has brought. The commercial partnership and links between, for example, the Royal Botanic Gardens at Kew, academics and Highlands and Islands Enterprise are classic connections that we should foster and encourage more widely. In addition, the industry involves local agricultural production and the transition from a wild crop to a farmed crop. We do not hear about many examples of that. The sweet gale industry is an interesting development to which we should give consideration.

Roseanna Cunningham was absolutely right to say that, although Mary Scanlon has raised the subject in the context of the Highlands and Islands, we should not view sweet gale as being appropriate only for the Highlands and Islands. The list that we received from Boots today demonstrates the breadth of work that is already being done throughout Scotland. With new planting taking place, the industry will, I hope, spread further. We cannot overestimate the importance of even one or two jobs in communities in economically fragile areas, because even two jobs can make a difference, as they add to the economic development in an area. Having local processing facilities is also very useful.

Sweet gale has gone from being a niche market and a niche idea—if I can put it that way—to having the potential to grow into a mass market, which is what has stimulated our interest tonight. The idea is exciting, and it could go further. That is why the NFUS is so keen. I am glad that Mary Scanlon suggested that there is an opportunity for crofters to get involved in the industry. The scale on which the industry is developing lends itself to such an approach.

It has been suggested that the rural development programme is ideal for providing funding for the sweet gale project. From looking through the budget, I know that a lot of aspirations rest on the rural development plan. It would be good if the minister considered the matter. It would be even better if he gave us a positive response tonight. The proposals on sweet gale are not new; they have been kicking around for a while—Highlands and Islands Enterprise did some work on them previously.

It would be good to get to the stage where more research could be done and we could make the transfer to production. That is the next challenge. We have read the briefings, and we know that that could work. Companies are interested, but we need to achieve a bigger scale. Moving from the niche market and niche production to a mass market and mass production is the challenge. I am glad that Mary Scanlon has raised the subject tonight. We should seize the opportunity—the industry is a great idea.

I end by asking, where is the next sweet gale going to come from? What other natural plants in Scotland could be developed? Roseanna Cunningham was absolutely right—if the plant came from somewhere in South America, say, we would probably be hugely excited about it. We need to look to our own back yard and get our scientists in Scotland to identify the next option. That would be a really exciting development from tonight's debate.

Ian McKee (Lothians) (SNP):

I add my congratulations to Mary Scanlon for initiating the debate. I realise with horror how much older I must be than Roseanna Cunningham. The song that comes through my mind when I hear sweet gale being mentioned is, as I recall, "Where'er you walk, sweet gale shall surely follow", which is 18th century, if not 17th century.

It is really exciting when a new industry comes over the horizon, particularly one that utilises the natural heritage of the Highlands to benefit humanity and provide essential jobs to give a lifeline to threatened communities.

We have heard that bog myrtle has been used for its special powers for hundreds of years. The stimulation that it gave Vikings in battle later served to counteract the depression that was engendered by long, cold, wet Highland winters. More recently, it has served to protect against midge bites. It has also been used to flavour beer. Truly, an ingredient that can elevate depression, flavour lager and protect against midge bites is worthy of celebration in its own right.

Now we find that, when bog myrtle is incorporated into a cream, its oil protects against the effects of ageing. Perhaps that accounts for the smooth skin and youthful features of ladies of all ages who live north of the Highland line. Many members of the Parliament, including me, are certainly watching developments with mounting interest, although it is too late for some of us to benefit from the alleged effects of this wonder substance on hair follicles.

Much in the motion can be applauded warmly. I congratulate Alliance Boots and Highland Natural Products on their initiative and foresight in reaching this stage of development.

What is the role of Government in all this? In the previous session of Parliament, Ross Finnie, the then Minister for Environment and Rural Development, reported on a study that his department commissioned from independent consultants on the potential for this new product to benefit us. The study's results were that current demand could be met from wild harvest, but that optimising future development would depend on further economic research. It has been argued that things have moved on apace since then, and so they have. However, suggestions that the Government should become heavily involved need to be treated with caution.

Members will remember the ambitious Government scheme to grow groundnuts in Tanganyika, which is now Tanzania, between 1946 and 1949. I see a look of recognition on members' faces already. The aim was to stimulate economic growth, but it failed spectacularly. It incurred a huge loss to the British economy and perhaps brought about the downfall of Clement Attlee's Government in 1951.

There are circumstances in which taxpayers' money should be used cautiously for seed-corn funding for commercial developments when there is a potential benefit to a community. However, such developments should be embarked on only after rigorous professional assessment.

Richard Lochhead reassured members in June that the new Scottish rural development programme for 2007 to 2013 will include a specific measure that will afford farm businesses an opportunity to submit proposals for diversifying into alternative forms of agricultural production, including non-food crops such as bog myrtle. Any request to support this fledgling industry will be judged through that process. I wish the industry well.

John Scott (Ayr) (Con):

I congratulate Mary Scanlon on securing the debate. I declare an interest as a farmer with a lot of bog and quite a bit of bog myrtle—I am waiting to hear whether Alliance Boots and Highland Natural Products want to harvest it.

It appears that bog myrtle is a plant whose time has come. I hitherto regarded it, perhaps foolishly, as a weed, although when I was a child I used to rub it between my fingers, enjoying the smell, which I presume came from the oil that is now so cherished. It is an extraordinary plant, because, as far as I know, it grows only in the most acid soil, which I have always regarded as the worst soil conditions in Scotland. Goodness knows, there is plenty of such soil in Scotland, so it would be wonderful if the crop could grow in those areas. It might just be the holy grail coming at the right time, given that sheep are coming off the hills in droves in the Highlands and in crofting areas—indeed, throughout Scotland.

The presentation today was hugely optimistic in health and skincare terms. If all the predictions come true, there could be a huge commercial opportunity in bog myrtle for Scotland's farmers. As I said, an abundance of land could be made available for it. It appears from the presentation that Scottish bog myrtle is in a class of its own. If that is the case, let us go for it.

Incomes of between £500 and £700 a hectare would be better than that provided by sheep or cattle farming—or almost anything else. If the demand is as great as it appears to be, perhaps that is just the beginning.

At the moment, bog myrtle grows in an unfertilised, unfarmed condition. Perhaps the yields would increase if it was fertilised, although it might then lose its properties—I do not know. That is something to consider in terms of research and development.

Skincare products are one area of interest, but it was hinted that the oil might also have health-giving capabilities, which should be examined. It was suggested today that bog myrtle could be the answer to MRSA. Goodness knows, if that is the case, the sky is the limit.

An opportunity perhaps exists for a research establishment to help Alliance Boots develop the product and explore its full potential—it may even have some as yet undiscovered properties.

As Jim Hume said, an opportunity exists for farmers. I suggest that they could work in co-operation through organisations such as the Scottish Agricultural Organisation Society.

Sweet gale may have a big future. Sarah Boyack's endorsement is one thing, but Mary Scanlon having tried it out personally, with such obvious beneficial effects, is quite another. I wish the concept, Highland Natural Products and Alliance Boots every success in what could be a win-win situation for all involved.

The Minister for Environment (Michael Russell):

I congratulate Mary Scanlon on securing the debate. I was unable to attend the presentation at lunch time, but Mary Scanlon helpfully and generously brought me some samples. I look forward to using the skin-soothing face mask as soon as the debate is over—I hope that it has the same effect on me as it has had on Mary Scanlon.

The name of the product is seen by some to be a little unfortunate. Bog myrtle is indeed the proper Scottish name, but it is also known as sweet gale. We might like to note that it has a number of different names in Gaelic, the commonest of which in Lewis is roid. The uses of the plant are wide, particularly in the Hebrides. We have heard about its effect as an anti-depressant and that it is used to flavour beer. It has, of course, also been used as an insect repellent, and it has many other uses. It produces a yellow dye, which can be used to dye tweed—that was certainly its use in South Uist. In Barra, it was used as a specific for children, as a remedy against worms—I am sure that members do not wish all this information, but it might be useful. In Barra, it was drunk in tea and given to children who suffered from skin problems or gastric problems. In Islay and Jura, it was used as a garnish for food. It has a remarkable history, but it is only now that it is coming into its own. All credit goes to Boots and Highland Natural Products, which have been active in the matter and are taking it forward, although perhaps more for its cosmetic use than some of its previous uses.

Sarah Boyack indicated that ministers and officials have met those involved on a number of occasions over the past few years. It is fair to say that there was enthusiasm in the previous Administration and there is enthusiasm in this Administration.

The uses that have been identified by Boots and Highland Natural Products are important and they possibly have a Scottish, UK, European and global reach. We would encourage that for any Scottish product, particularly one that uses natural Scottish ingredients. We acknowledge that this is a significant potential commercial opportunity for the consortium. As a result, Roseanna Cunningham was right to say that it is a significant potential commercial opportunity not only for the Highlands and Islands, but for Scotland.

We must recognise that some significant questions still have to be answered. For example, the research to date suggests that the oils that are produced from plants grown in natural, wild boggy conditions are the best. The current cost of producing the oil is many times higher than that of producing other, comparable, oils. A reduction in production costs will be required to enable the development of a viable supply chain for the oil in Scotland.

The key issues that must first be tackled are agronomy factors related to cultivation, oil yield and analysis of the oil produced. That can be done only through a thorough programme of research and development. I am therefore pleased that Highlands and Islands Enterprise and the UHI Millennium Institute have provided almost £300,000 towards that task. The agronomy institute on Orkney is considering how bog myrtle can best be grown and cultivated, and Boots research and development is analysing the oils produced. This is a good opportunity for the agronomy institute and a variety of other organisations in Scotland, including UHI, to be involved in a world-scale project.

Does the minister accept that, in respect of the potential health-giving properties, there may also be an opportunity for some of the Scottish agricultural and biological research institutes to get involved in the development process?

Michael Russell:

I am sure that that is the case and I am happy to confirm it.

My point is that the timetable means that it will be some time before the work is completed. Currently, 2010 seems to be the likely completion point, when we can move on to the next stage.

As well as providing public support for research and development, the Scottish Government is putting in place a system of support for farmers, crofters and other land managers who want to develop their businesses, including diversifying into new crops. I will deal with that in some detail.

The Scottish rural development programme will provide £1.6 billion over seven years to encourage and enhance the viability and sustainability of farming, agriculture, forestry and other land use in Scotland. Rural development contracts represent the central part of our programme's integrated approach. Regional priorities will be set, which is particularly important in this case, so that resources are directed to the areas of greatest need. The measures will encourage land managers to invest in and restructure their businesses, and support will be available for farmers and crofters who wish to supplement their income by developing alternative land uses or novel products.

Will the minister give way?

Michael Russell:

I would like to give way but I wish to be able to make some progress.

Although much work has still to be done on the project, the prospect exists for land managers to consider diversification into a non-food crop such as bog myrtle, and to secure Government support for that.

The support will be considerable; support for up to 50 per cent of the costs will be available. Mr Hume and Mr Scott do not qualify for this, but for a young farmer—under 40 years of age—the support will have a 10 per cent premium, and 75 per cent training grants will be available to ensure that the farmer has the right skills to make use of that diversification. Rural development contracts also highlight the importance of co-operation, so that there can be co-operation between those who are growing, those who are developing and researching, and those who are marketing and selling.

The building blocks are in place and I am glad to be able to give two specific commitments that have been asked for, by Mary Scanlon and Sarah Boyack among others. Mary Scanlon mentioned the crofting counties agricultural grant scheme, which is being rolled up in the new rural development programme. Under that scheme, it is and will be possible for crofters to apply for assistance with the cost of establishing alternative agriculture, such as bog myrtle crops, under farm diversification measures. Once the Scottish rural development programme is in place, which we hope will be at the turn of the year, that will be possible.

There is also another possible line. Paragraph 2(10) of schedule 1 to the Crofting Reform etc Act 2007 amends section 42 of the Crofters (Scotland) Act 1993, which is about financial assistance. It changes assistance from its inclusive focus on agriculture to supporting any reasonable use that promotes sustainable development. It is fairly obvious that the bog myrtle scheme might well qualify.

Of course, lots of people want to get into the scheme and there is some competition, but it opens the door to say that support will be available for diversification.

All the contributions to this debate have been important and useful. The Government acknowledges the work that has already been carried out, supports the research that is taking place, and is keen that agricultural diversification among crofters and farmers will see this crop as having as much potential as many others. We hope that this product will be part of the process of Scotland finally establishing its unique place in the world as a place of environmental cleanliness, of wonderful biodiversity and of products that will help everyone on our planet.

Meeting closed at 17:43.