fbpx

Business opposes concessions in the forest industry

13/ 07/ 2017
  On July 4, 2017, the Cabinet of Ministers of Ukraine approved the strategic vision of the management of state enterprises, which are subordinate to the central authorities. The developed concept defines which state enterprises in the long-term will remain in state ownership, and which will be transferred to the concession, privatized or liquidated. In particular, it is expected that 359 state-owned objects will be transferred to the concession, including forestry. The Association of Woodworking and Furniture Industry of the Association considers the transfer of forestry holdings to a concession as having the risks and may lead to the exploitation of forest management by private structures, which will have a very negative impact on the forestry industry. Any major changes in the forest industry should have clear goals and tools for achieving them, based on detailed economic analysis, miscalculation and minimization of risks, but, based on officially published materials, this is not expected. Representatives of the Association Committee warn that no transparent inventory of the forest fund has been carried out yet, the system of electronic logging of timber, which has to show actual volumes of logging, is still not legally fixed, therefore the state practically does not possess information about profitability or loss-making behavior of forest users, except forest farms of the State Agency of Forestry. At the same time, according to this concept, about two hundred forest farms of the State Agency of Forestry - resource and lucrative enterprises, which send significant revenues to the budget - are planning to transfer to the concession. The concession, aimed at harvesting of silt wood, will actually create conditions for exhausting cutting down and eliminate productive forest cultivation, because the period of growing the forest before felling - about 80-100 years. In addition, the idea of ​​concessions of any state resources and resources carries corruption risks and may lead to the monopolization of natural resources by private entities. It should also be noted that in the European Union practically no experience of concession of forests. In recent years, forestry experts are actively involved in the analysis of the forest sectors efficiency, the study of international experience, and the discussion of various models of industry management. Therefore, the Association considers it necessary to approach the issue of reforming the forest industry with care and refrain from making imperative decisions. Instead, we hope that the course will be chosen for the harmonious development of the industry and the dialogue on its comprehensive reform will be continued.

On July 4, 2017, the Cabinet of Ministers of Ukraine approved the strategic vision of the management of state enterprises, which are subordinate to the central authorities. The developed concept defines which state enterprises in the long-term will remain in state ownership, and which will be transferred to the concession, privatized or liquidated. In particular, it is expected that 359 state-owned objects will be transferred to the concession, including forestry.

The Association of Woodworking and Furniture Industry of the Association considers the transfer of forestry holdings to a concession as having the risks and may lead to the exploitation of forest management by private structures, which will have a very negative impact on the forestry industry.

Any major changes in the forest industry should have clear goals and tools for achieving them, based on detailed economic analysis, miscalculation and minimization of risks, but, based on officially published materials, this is not expected.

Representatives of the Association Committee warn that no transparent inventory of the forest fund has been carried out yet, the system of electronic logging of timber, which has to show actual volumes of logging, is still not legally fixed, therefore the state practically does not possess information about profitability or loss-making behavior of forest users, except forest farms of the State Agency of Forestry. At the same time, according to this concept, about two hundred forest farms of the State Agency of Forestry – resource and lucrative enterprises, which send significant revenues to the budget – are planning to transfer to the concession.

The concession, aimed at harvesting of silt wood, will actually create conditions for exhausting cutting down and eliminate productive forest cultivation, because the period of growing the forest before felling – about 80-100 years. In addition, the idea of ​​concessions of any state resources and resources carries corruption risks and may lead to the monopolization of natural resources by private entities. It should also be noted that in the European Union practically no experience of concession of forests.

In recent years, forestry experts are actively involved in the analysis of the forest sector’s efficiency, the study of international experience, and the discussion of various models of industry management. Therefore, the Association considers it necessary to approach the issue of reforming the forest industry with care and refrain from making imperative decisions. Instead, we hope that the course will be chosen for the harmonious development of the industry and the dialogue on its comprehensive reform will be continued.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Start
in the Telegram bot
Read articles. Share in social networks
0 Shares

Spelling error report

The following text will be sent to our editors: