The content regarding forestry included in the new government's declaration is pleasing to industry entrepreneurs, who are now awaiting the development of an action plan that outlines concrete steps.
Meanwhile, the timber industry professionals interviewed point out that what has been written into the government declaration affects forestry most directly, as it is the foundation of the entire sector. At the same time, it is emphasised that the declaration is currently only a protocol of good intentions, and it can only be evaluated based on the work actually completed.
The sector will contribute more
“If what is written in Krišjānis Kariņš's government declaration is reflected in the action plan and implemented, we can expect the sector’s contribution to increase not only export revenues but also the volume of taxes paid,” predicts Māris Liopa, Chairman of the Board of the Forest Owners and Managers Association of Latvia. In his view, the declaration contains several conditions important to the industry that relate directly to ensuring competitive forestry in the region. Forestry is the foundation of wood processing. “The declaration plans to allocate state budget funds for forest statistical inventory. Currently, this important function is supported financially as much as possible by the Forestry Development Fund; there is no other source of finance,” emphasises M. Liopa.
He adds that the future of the sector could be at risk without such monitoring. “Unfortunately, today data is often more important than reality. The lack of it raises justified concerns about the use of emotions instead of basing decisions solely and exclusively on data. How important this monitoring is can be seen by observations made on certain road sections and the conclusions of people far removed from the industry – ‘they’ve cut everything down’ – while ignoring how many stands have been planted and how much is naturally regenerating. There is also the question: how much does a tree grow per year, and then it must be decided when a tree should be felled – when it reaches felling age, or when its diameter reaches a certain thickness,” M. Liopa replies to the question about the importance of forest monitoring.
Support for infrastructure
Another sore point for small private forest owners is infrastructure. “If what is written in the declaration is implemented – ‘...we will support the use of EU, state, and state forest manager financial resources for the improvement of forest infrastructure and to increase the economic value of the forest’ – that will be an excellent opportunity not only to use land effectively but also to invest in forest infrastructure,” emphasises M. Liopa.
Consensus on restrictions
An important issue will be determining appropriate compensation in connection with economic activity restrictions or total bans imposed on landowners. “We have been talking about this topic for many years, but we are not reaching the finish line with economically justified compensation,” M. Liopa says, describing the problem.
In his opinion, another important commitment is to develop amendments to forestry-related regulations in cooperation with forest industry organisations, in order to ensure Latvia’s competitiveness in the Baltic Sea region based on the principles of sustainable forest management. “By working together, forest owners, public administration specialists, and politicians can find the best possible solutions, especially if we need to compete with rivals working in Finland and Sweden,” emphasises M. Liopa. He rejects claims that environmental experts might be ignored in the development of legislative changes. “Constructive discussions, not grandstanding,” M. Liopa replies to the question: “How to reach an agreement?” He recalls what is written in the declaration – to not allow the reduction of forest areas intended for economic activity. “There are many domestic and foreign enthusiasts who, driven by altruistic or perhaps mercantile interests, want the areas of protected territories in Latvia to be increased. Furthermore, it must be taken into account that the so-called natural values inventory will be completed this year,” M. Liopa says, answering the question as to why this point is important. Natural values must be protected, but that does not mean that half or a third of the country should be made into a protected territory where people are redundant... A state does not exist without people!
Important matters
Arnis Muižnieks, Chairman of the Board of the Latvian Forest Owners' Association
The government declaration contains several provisions essential to the forest industry, the successful realisation of which would promote the development of the sector. The declaration recognises the importance of forest statistical inventory and the necessity of financing it from the state general budget, because without reliable data on forest resources, it is impossible to fully plan sustainable forest management. Likewise, the declaration contains two points aimed at increasing the efficiency of land use, which is especially important if the country wants to move towards increasing public prosperity, because the forest sector is one of the main sectors that brings money into the country; because in a country, just like in a family, someone has to earn, otherwise one has to borrow money from somewhere. Therefore, it is greatly hoped that the work will be carried out that provides for the development of proposals to improve the regulatory environment in cooperation with forest industry organisations, which would promote the creation of higher quality, more productive stands. The declaration's point on further EU support for the tending of young stands and the replacement of unproductive stands is also aimed at productivity. One of this government's biggest challenges will certainly be the ability to work as a unified team, which is all one can wish for it, because without cooperation between ministries and unified action in resolving issues, it will be very difficult to achieve good results!
From the Declaration on the Intended Activities of the Cabinet of Ministers
- In cooperation with forest industry organisations, we will develop amendments to forestry-related regulations to ensure Latvia’s competitiveness in the Baltic Sea region, based on the principles of sustainable forest management; we will not allow the reduction of forest areas intended for economic activity.
- We will support the allocation of funds from the state general budget for conducting forest statistical inventory, taking into account its importance to the national economy on a national scale.
- We will support the use of EU, state, and state forest manager financial resources for the improvement of forest infrastructure, to increase the economic value of the forest, and to mitigate the impact of climate change.
- We will develop new and improve existing regulatory frameworks for the use of agricultural and forestry products in pharmaceuticals, construction, energy, and other sectors, developing the bioeconomy and ensuring higher value-added for available resources.