Naujienos

2005 - 02 - 09

*The Swedish Government will grant aid package for forest owners hit by the storm

At the first stage the Swedish Government will put up 1.3 billion SEK for hauling out as much timber as possible from the region hit by the storm. An aggregate volume of 75 million cubic meters of forest was felled by the storm in Southern Sweden.

The measures will be the following:

• The excise tax on diesel oil for forest machines in the area concerned will be reduced for the whole years 2005 and 2006. The purpose is to move as many forest machines as possible to Southern Sweden. The tax reduction will amount to not more than 100 million SEK per year.
• 500 million SEK will be reserved for subsidies for storing storm felled timber. This sum will be used for measuring, watering, land lease, ground works, construction of terminals and for similar measures necessary for storing the timber.
• 400 million SEK will be spent for direct subsidies to forest owners having suffered losses. These subsidies will consist of tax concessions for the years 2005 and 2006, to an amount of 10 SEK per cubic meter. The purpose is that the money shall be used for hauling the timber out of the forest.
• 100 million SEK will be spent for repairing worn out forest truck roads and private roads. The intention is to spend money also for repairing damage caused by vehicles to nature.
• Fairway fees for shipping will be abolished in 2005 and 2006. That will cost the Swedish treasury 30 million SEK.
• Railroad fees for railway transports will be abolished for the same period. "Banverket" (the Swedish Railroad Administration) will assist in the financing of special timber terminals along railroads. The estimated cost is 60 - 70 million SEK.

The following stage in the emergency work will be the preparation of measures in the supplementary budget bill that the Swedish Government will present to Parliament later in April. A review will be made of the provisions concerning use of the forest damage account. One possible measure is loan guarantees by the State to forest owners having suffered losses.

In March Sweden will submit a request to EU for emergency support. The Government cannot yet tell exactly how much money will be involved, but a back flow of "a few billion SEK" can be expected. However, this money will not be given to individual forest owners, but to the authorities involved in emergency work. In the longer term there will also be support for replanting. However, such measures will be topical only after 2 - 3 years and therefore the Government first wants to make an in depth study of the matter. (10 SEK = 1 EURO)