Seimas endorsed the reform of forest enterprises

Press release, 11 July 2017

 

The Seimas adopted the amendments to the Law on Forestry, thereby abandoning the requirement to establish a specific number of forest enterprises. The Law stipulates that integrated forestry activities in state forests are carried out by forest enterprises. The previous law provided for 42 state forest enterprises.

The explanatory note to the Law underlines that the aim is to allow the Government or its authorised institution to fully exercise the rights and obligations of the owner of state enterprises and to adopt the decisions laid down in the Law on State and Municipal Enterprises.

The amendments to the Law regulate the arrangement of retail and wholesale trade in raw timber, forest harvesting residues and standing timber produced in state forests. Under the new provisions, the wholesale trade in raw timber and forest harvesting residues will be carried out through an electronic timber sales system by auctioning for the award of long-term (3 to 10 years), half-year (6 months) and short-term (up to 3 months) contracts. Up to 7 % of the annual norm of major logging and the volume of intermediate logging may be sold by retail. Retail trade will cover standing and raw timber, priority being given to the sale of firewood to the population.

The amendments also provide for facilitating the wind-up of the Directorate General of State Forests under the Ministry of Environment and the transfer of its key functions to the said Ministry.

The new provisions of the Law were adopted by 82 votes in favour, 16 against and 12 abstentions. The Law will enter into force on 1 January 2018. The Government and the Minister of Environment will have to adopt the implementing legislation before 31 December 2017.

 

Rimas Rudaitis, Chief Specialist, Press Office, Information and Communication Department, tel. +370 5 239 6132, e-mail: rimas.rudaitis@lrs.lt

   Last updated on 07/13/2017
   Rimas Rudaitis