"Science has clarified the political and economic significance of work, and it has long been given an honoured place between nature and capital.
It would be a poor service for someone to find a way for the state to get enough money every year for its citizens to be able to shop abroad for everything needed for the most luxurious life," said the notable Russian educator Konstantin Ushinsky.
/1860/
Work influences the human psyche
"If people were to find the philosopher's stone, the misfortune would not be great: gold would cease to be a value. But if they found a magic bag from which everything the heart desires pops out, or invented a machine that completely replaced any human labour – in a word, if they immediately achieved the results that technicians and political economists strive to obtain – humanity's own development would stop: depravity and savagery would take over society, society itself would crumble, and not only political economy (for who would need it then?) would be struck from the list of human knowledge. As soon as there was no need to work, history would also stop.
Roman history shows us an even more striking example of the fact that man needs free work in itself in order to develop and maintain feelings of human dignity.
The material results of work constitute a person's possessions, but only the internal, spiritual, life-giving power of work is the source of human worth and, consequently, the source of virtue and happiness. This life-giving influence of work affects only the person who works. The material fruits of work can be taken away, inherited, or bought, but the internal, spiritual, life-giving power of work can neither be taken away, nor inherited, nor bought with all the gold in California: it remains with the person who works. The lack of these invisible values obtained through work, and not the lack of velvet, silk, bread, machines, or wine, has ruined Rome and Spain, is ruining the southern states, is degenerating social classes, destroying families, and depriving many thousands of people of virtue and happiness," Konstantin Ushinsky pointed out in his research.
Currently, the main state budget revenues in Latvia are formed by taxes earned and paid through the hard work of commercial entities – natural and legal persons engaged in economic activity – which reached 6.57 billion euros in 2017.
Economic activity also includes forest management: planting, tending, felling, timber extraction, selling the harvested timber, transportation, various types of wood processing, and the creation of wood products. For every cubic metre of wood grown and sold, the corresponding taxes are paid into the state treasury immediately after felling. During the wood processing process, its value and tax payments increase further.
Budget revenues are increasing
As the Ministry of Finance has indicated, work on the preparation of budget bills to fill the State Treasury in 2019 was started in good time to ensure the newly elected Saeima and the Cabinet of Ministers had the necessary information to make final decisions.
As determined by the Law on Budget and Financial Management, the purpose of the budget is to determine and justify what funds are necessary for the government, other state institutions, and local governments to fulfil their duties, the funding of which is provided for in legislation, while ensuring that during the period for which these funds are intended, expenses are covered by corresponding revenues. When developing the budget, the need to ensure general economic balance must be taken into account.
Evaluating state budget revenues and expenditures over the last ten years, they have grown by more than two billion euros. The planned state budget revenue for 2009 was 4,022,543,416 Lats, and expenditures were 4,687,239,898 Lats. In contrast, for the 2018 state budget, the government approved revenues of 8,753,146,235 euros and expenditures of 8,954,188,268 euros.
The 2018 state consolidated budget's basic budget revenues of 4,410,228,340 euros were formed by tax revenues, such as income tax, value-added tax, excise duty, vehicle operation tax, etc.
For example, in 2017, commercial entities paid 6.57 billion euros in taxes into the state budget. The state forest manager, the joint-stock company Latvijas valsts meži (LVM), made its state-mandated payment in June 2018 from the money obtained as a result of economic activity in state forests – 38 million euros for 2017.
There is still a shortage of money
The general budget deficit in 2017 was 131.1 million euros, or 0.5% of GDP, and the consolidated gross debt was 10.8 billion euros, or 40.1% of GDP, according to the preliminary results compiled by the Central Statistical Bureau (CSP). Only the Social Insurance Fund finished last year with a budget surplus, while in the central government and local governments, expenditures exceeded revenues.
This year we are spending 11.1% on health – 1,018.2 million euros; 6.4% on defence (574.8 million euros); 6.4% or 571.2 million euros on public order; and 8.4% (756.4 million euros) on education. 16.5% (1,475.3 million euros) is directed to economic activity, 4.4% to the national economy (energy, industry, construction, communications, etc.), 7.3% to agriculture (forestry, fisheries, and hunting), and 4.8% to transport (roads, public transport, and railways) of budget funds.
We spend 13.3% or 1,190.6 million euros of budget funds on general government services, paying for European Union fund payments, grants to local governments and international cooperation (7.1%), management of national debt and contributions to the European Commission budget (5.8%), as well as for the Office of the President, the Saeima, and the Cabinet of Ministers (0.4%). We spend 2.1% or 188.8 million euros on recreation, culture, and religion; 0.6% or 51.8 million euros on environmental protection; and 0.1% or 12.8 million euros on housing and community amenities of budget funds.
Is money being spent responsibly?
"Despite the fact that state budget revenues have increased, there is still a lack of money for the salaries of doctors, teachers, police officers, as well as for pensions, benefits for new mothers, and road repairs. Farmers are protesting against muddy roads, the situation in orphanages is approaching a catastrophe, and in the field of education, we are rapidly falling behind even our closest neighbours. Yet there are things for which Latvia is regularly able to allocate significant sums without thinking about the losses and far-reaching consequences, in the name of seemingly good causes.
Over several years, studies by defenders of nature, birds, and animals have followed one another, and not only money from European funds but also the budget of the Latvian Ministry of Defence has been spent on them. Even in years when Latvia was unable to maintain its army and fulfil its NATO commitments. One and a half million euros have already been invested in the now "famous" 'Birds in Ādaži' programme, and there were other “valuable” programmes and projects before that. A hazel grouse protection plan has been created, which, if implemented, will ensure an incomparably larger volume of work and sums for environmental researchers in the coming years. A study on the impact of the northern goshawk on the hazel grouse population – 750,000 euros; a study on habitat loss – 375,000 euros; a study on the impact of wild boar (even though the number of wild boar in the country has decreased significantly due to the African swine fever) – 50,000 euros. There are also a number of expenditures that repeat annually in the overview of planned activities and measures until 2026 – including the education of forest managers," points out Māris Liopa, Chairman of the Forest Certification Council of Latvia.
The sums invested in nature conservation and projects for restricting economic activity do not just threaten the Latvian public with the breakdown of budget mathematics, but with much more serious consequences – with the restriction of work opportunities, restricting economic activity in forests over many hectares, thereby preventing foresters from working in them and growing forests, from fostering a work ethic in the new generation, and preventing people from maintaining their sense of human dignity through work. "Work, as a foundation, provides a person with an awareness of their own worth, a sense of virtue and happiness. Without work, life loses its value. Work is not only a necessary condition for a person's development, but it is also necessary to maintain the self-respect that they already possess," the notable Russian educator Konstantin Ushinsky pointed out in his research. By paying compensation for inaction and eliminating jobs to protect birds and lichens, a further blow will essentially be dealt to the irreversible psychological destruction of Latvia's already divided society, creating irreversible consequences in people's psyches. Already, according to Central Statistical Bureau data, 606 thousand, or 30.9 per cent of the population, are at risk of poverty or social exclusion in Latvia.
Forests and work – for the people of Latvia
The forest is a renewable resource, and its sustainable management, while taking into account environmental, social, and direct production costs, as well as the investments necessary to promote the forest's ecological preservation capacity, provides an economic contribution. This is known in every country, and it is no secret to any forester. This is also provided for by Principle 5 of the FSC® Forest Management Standard, 'Benefits from the Forest'. Already, LVM manages a quarter of the area it oversees with the primary goal of environmental protection and recreation.
Thanks to the principles provided for by sustainable forest management, as a result of economic activity, the joint-stock company Latvijas valsts meži has increased its annual contributions to state and municipal budgets more than fourfold since 2000. In addition to dividends and taxes paid into state and municipal budgets, the company has actively invested the funds obtained in forest regeneration, the development of forest infrastructure, the increase of forest areas, the production of high-quality forest tree seedlings, as well as in the development of information technology. Every year, an average of 7.9 thousand hectares of new forest stands are planted, and a further 7.8 thousand are regenerated using natural methods.
AS Latvijas valsts meži and the forest sector together currently provide approximately 45 to 50 thousand jobs, and together with related sectors – 80 thousand. These are 80 thousand people who have not left for abroad and have not lost their sense of human dignity. Forests have always protected Latvia, and even today, the traditions, work experience, and work culture of the forest sector have allowed a clear view of life to be maintained. Currently, there is not a single parish in Latvia where one cannot find a smaller or larger wood processing company. Often, these are the most significant employers in the area and, consequently, the main pillar of the local economy and residents.
Currently, timber prices have reached their highest point in the last ten years, with pulpwood prices rising above 40.00 euros per cubic metre, while every cubic metre of sawlogs is being purchased for as much as 80 euros. Thus, state tax revenues from forest harvesting alone are estimated to be in the hundreds of millions of euros annually.
The results compiled by the Central Statistical Bureau for the first quarter of 2018 show that wood and wood products stably occupy first place in Latvia's most important exports in current prices, accounting for 520.1 million euros in January–March. Moreover, this product group showed an 8.2% increase in export value. In January–March 2018, wood and wood products were exported most to the United Kingdom – 17.6%, Sweden – 12.3%, and Estonia – 9.4%. Of wood and wood products, the most exported to Germany were pallets, pallet collars, and other cargo boards (8.0 million euros), while to Sweden – roundwood (27.1 million euros).
The output of the forest sector specifically ensures the balance of Latvia's imports and exports, providing more than 2.2 billion euros in export income and thereby ensuring Latvia's solvency as a state on an international scale.
A large-scale attack on economic activity in forests is planned
In 2017, the Nature Conservation Agency launched an inventory of EU-significant forests (habitat mapping) throughout the country in order to ultimately develop five species protection plans and at least 20 nature conservation plans. Habitat mapping is provided for in the European Union (EU) Cohesion Fund co-financed project "Creation of Prerequisites for Better Conservation of Biological Diversity and Protection of Ecosystems in Latvia". Both the Nature Conservation Agency (DAP) and the Ministry of Environmental Protection and Regional Development (VARAM) emphasise that only EU-significant specially protected habitats are planned to be mapped to obtain complete and detailed information.
Funding for the conservation of biological diversity and the protection of ecosystems exceeds 8 million euros. This includes 254 thousand for the development of species protection plans for owls, seals, pond bats, and barbastelle bats. A further 0.6 million will be spent on the development of nature conservation plans for three territories, but the "big piece" is the habitat inventory worth 4.2 million.
Such a dizzying sum in the "Growth and Employment" programme will be available to biologists for the first time and will guarantee them income for three years. However, the result of their work promises serious consequences for many Latvian forest properties that are currently being managed sustainably and economically rationally.
It seems paradoxical that such financial resources will be spent on a biologist walking through the forest and “ticking a box on a questionnaire”, as it is presented to the public. The logical consequences of such actions are the establishment of a micro-reserve and the restriction of economic activity. Decisions by the Ministry of Environmental Protection and Regional Development (VARAM) on the establishment of 82 micro-reserves, in accordance with Article 5, Paragraph 10 of the Law on the Conservation of Species and Habitats (adopted 16.03.2000), can be viewed on the VARAM website.
Despite the fact that by thus restricting economic activity in a significant territory of state forests, state revenues from forest management would decrease significantly, and expenses for the maintenance of areas used for environmental protection and recreation would increase, the state would have to seek additional funds to pay compensation for the restriction of property rights, as determined by the Constitution of Latvia.
Considering that the majority of state budget revenue is made up of income from taxes paid by residents and commercial entities, the missing funds would be covered by the money of all taxpayers, or in the best case – from European Union fund resources. But it is not the breakdown of budget calculations that is the greatest threat to Latvian society. It is by specifically denying people work opportunities, by denying young specialists jobs – the internal, spiritual, life-giving power of work, by denying people the awareness of the source of their worth, virtue, and happiness, that it is possible to destroy them.
As established by forest sector public organisations, the government agreed on the need to set criteria for identifying specially protected forest, shrub, and wetland habitats back in 2013, and the procedure for their determination is regulated by EU guidelines.
In 2013, the law "On Compensation for Restrictions on Economic Activity in Protected Territories" was adopted and entered into force, the 2nd paragraph of which stipulates:
· "An annual support payment for restrictions on economic activity in European-significant protected nature territories (Natura 2000) shall be paid in the procedure established by regulatory acts regarding the granting of rural development support from the resources of the relevant European Union funds.
· An annual support payment for restrictions on economic activity in micro-reserves may be paid in the procedure established by regulatory acts regarding the granting of rural development support from the resources of the relevant European Union funds."
The compensation payment for a partial or full ban on economic activity in the forest, for example for Natura 2000 forest territories, is 45–160 EUR per hectare annually.
The landowner may request the purchase of the land if:
1) a decision or court ruling on the restoration of property rights to land has entered into force, which, before the decision or court ruling entered into force, was included in a nature reserve or in a strict or regulated regime zone of another protected territory;
2) the land is included in a nature reserve or in a strict or regulated regime zone of another protected territory. The purchase of land will be organised by the Nature Conservation Agency in accordance with its competence.
In the first place – work, not nature and capital
As we can see, the interests and concerns of taxpayers, while trying to responsibly increase state budget revenues, have so far been neither respected by the government nor has any economic justification been provided for the conditions of the agreement with the European Union. How advantageous these conditions are for the inhabitants of Latvia and for the whole Latvian state, no explanation has been provided for this. Latvia's forests occupy 3.383 million hectares and cover 52% of the country's territory. Currently, economic activity in forests is carried out in accordance with the permissible felling volume in the country, with an average of about 12 million m3 of roundwood being felled annually over the last decade. But forest areas continue to grow continuously. Concerns and doubts are raised by the situation that the volume of wood accumulated in the forest is already growing three times faster than forest areas. This is clear evidence that Latvia's forest cover is not increasing at the expense of bushes, which are not counted in forest areas at all. In such a situation, where wood reserves exist but the state has a 10.8 billion euro debt, plans to spend funds to develop projects for restricting economic activity in economic forests seem insane. Such an unpredictable future does not provide confidence that everyone respects and understands the jointly set goals equally honestly.
It is precisely the government's duty to organise negotiations in which the most advantageous conditions for its country's participation in the European Union are decided. Entrepreneurs in the forest sector, forest owners, and more than 80 thousand people who are employed and have not left for abroad, and who have not lost their sense of human dignity, expect from the new government a more global, more predictable vision of the growth and development of the Latvian state and society that is closer to the people of Latvia, based on the only source of human worth, virtue, and happiness – work.
In such a situation, where wood reserves exist but the state has a debt of 10.8 billion euros, plans to spend funds to develop projects for restricting economic activity in economic forests seem insane.
The volume of wood that has reached felling age in the forest continues to increase
"As evidenced by the results of the third cycle of the 'Forest Resource Monitoring in Latvia' conducted by the Latvian State Forest Research Institute Silava, which were obtained by surveying 16,000 sample plots over 15 years, currently in forest stands where the dominant species has reached the main felling age and which are located in territories where forestry is not prohibited or where main felling is permitted, the wood stock including bark and tops is 220 million m3. Without bark and tops – about 200 million m3. In stands where the age of the dominant tree species is less than the main felling age, but where the average diameter of the dominant species trees has reached the currently determined main felling diameter, the wood stock, including bark and tops, constitutes at least 60 million m3," points out Jurģis Jansons, Dr.silv., Director of LSFRI Silava.