Financing of Forestry from Public Resources in the Czech Republic

Transcription

1 International conference Supporting the Forest Sector Reform in Russia and in the Southeast European Countries by Assessing the Experience from the New EU Member States Pushkino, March 2007 Financing of Forestry from Public Resources in the Czech Republic Luděk Šišák Vice-Dean, Professor Faculty of Forestry and Environment Czech University of Life Sciences, Prague Metsäntutkimuslaitos Skogsforskningsinstitutet Finnish Forest Research Institute

2 Financing of Forestry from Public Resources in the Czech Republic Ludek Sisak Faculty of Forestry and Environment Czech University of Life Sciences Prague Introduction Political framework Institutional framework State and analysis of financing Conclusions

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4 Czech Republic: 78,863 km 2 (7.886 mil. ha) 10.3 mil. inhabitants Forests in : Area: mil. ha, 33.6% (several thousand ha of abandoned agricultural lands) Growing stock: 56 mil. m 3 u.b 663 mil. m 3 u.b. 225 m 3 /ha 259 m 3 /ha Average rotation age: years Total mean increment: 17 mil. m 3 /year Total current increment: 20 mil. m 3 /year Removals: 15 mil. m 3 /year

5 Share of forestry in: GDP: 0.6% Total number of employees: 0.6% 0.7 % (share of generated working places: 5% Investments: 0.3%. Changes in Forestry : A completely new state forest administration formed A new forest policy declared and Forest Act passsed Private sector originated New structure of forest owners came into being New structure of state forest establishments administering state forest lands occurred Quite a new system of forestry financing gradually formed

6 Forest ownership changes on the territory of the CR (% of forest area) Forest ownership State Municipalities Co-operatives Private State forestland administered by: - State Enterprise Forests of the Czech Republic (51%) - Military Forests and Farms, (5%) - National parks (%) 150 thousand private forest owners (3 ha on average). Municipal forest owners (56.% own less than 10 ha).

7 Multifunctional and structured forests

8 Subsidies (contributions) Govermental financial obligations subject to the Forest Act (mil. CZK) Activities Aver. 1) Soil reclamation and torrent control ) Licensed forest managers ) Forest management guidelines ) Soil improving and stabilising species Total

9 Services provided by the government for forestry (mil. CZK) (Subsidies influencing positively environmental aspects) Activities Aver 1) Aerial liming and fertilising (polluted areas) ) Airborne fire control service ) Large-scale measure for forest protection Consultancy Other services Total

10 State Subsidies to forestry by purpose (mil. CZK) (Securing public interests and supporting the environment) Activities Aver 1) Regeneration of air polluted forests ) Reforestation and tending of stands ) Grouping of small forest owners 3 ) Ecological technologies ) Non-market forest services ) Torrent control ) Endangered species - wild animals 3 8) Forest management plans ) Other subsidies ) Programmes co-financed from EU Total

11 Other Subsidies in : (Securing public interests and positively influencing the environment) Supporting and Guarantee Agricultural and Forestry Fund: - interest rate subsidy: mil. CZK - credit guarantee: 1 10 mil. CZK Military forests: mil. CZK State Environmental Fund: mil. CZK Afforestation of abandoned farmland: mil. CZK EU structural funds: - Sectoral Operational Program Multifunctional Agriculture and Rural Development ( ) - Horizontal Rural Develoment Plan ( )

12 Profit of forest owners without / with contribution for forest management (CZK/ha) Owner Average Profit Contrib. EUR State 27 / 06 7 / / / Municipal 169 / / 79-0/ / Private 33 / / 1,25 1 / / Average 277 / / / / CZK=0.03 EUR

13 Conclusions Forestry financing needs substantial simplification and harmonisation (rather confusing and complex). Financing should be divided into 3 categories: compensation of economic losses (from forest management restriction), purchase of particular services by governmental or societal authorities, production (market) function subsidies for securing sustainable forest management and innovations. Forestry financing outputs should be monitored not only in physical, technical units, but also in monetary values.