Naujienos

2005 - 06 - 30

*The protection decision made by ”Metsähallitus” will have detrimental effects on the economy of Northern Finland

“Metsähallitus” (the Finnish National Forest Management Agency) has decided to cease forestry activities on about 100 000 hectares of State owned land. The new protected regions are situated in the Oulu and Lapland provinces. About 55 000 hectares are afforested land.

Apart from the ecological impact, the decision will also have considerable social and financial consequences. Metsähallitus estimates that there is about 7.3 million m3 of wood in the areas were forestry will be stopped, which means that 150 000 m2 of wood will be removed from the timber market in Northern Finland. Furthermore, Metsähallitus estimates the direct effects on employment in the forestry sector to be a loss of 70 man labour years. The multiplier impact included, the impact on the forestry sector will be about 200 man labour years.

The worst effect of the protection measures is that a functioning forestry will be endangered in Northern Finland. The measures will hit areas that already from before suffer from serious unemployment. If the decision results in a reduced number of timber purchasers in the area, there may be harmful multiplier effects also on other owners’ forests.

The Federation of Forest Owners in Northern Finland is concerned about the impact on employment in that area and about the wood supply to local factories. The decision will reduce the raw material basis of the local wood processing industry. Small plants, such as sawmills and the Kemijärvi pulp factory are among the most endangered. The Federation is of the opinion that the decision made by Metsähallitus’ Management Group must be subject to a review by the Government, because Metsähallitus has exceeded its decision making powers, which are limited to 35 000 hectares of forest.

Source: http://www.nordicforestry.org