Lithuanian Environment Minister Kęstutis Navickas proposes to establish a single enterprise to manage state forests.
First snow in a Dzūkija Forest
© DELFI / Domantas Pipas

"Forest management must be streamlined to make it transparent and efficient. This is our key goal," the minister, who is to unveil his vision for a forestry sector reform on Thursday, said in a press release.

All state forests are currently managed by the Directorate General of State Forests and 42 profit-seeking forestry enterprises which employ a total workforce of 4,000, including some 1,200 foresters and 800 administrative staff. The reform will aim to merge the enterprises and cut the administrative apparatus.

The Lithuanian National Audit Office says that the state forestry sector lacks transparency and efficiency.

The Organization for Economic Cooperation and Development (OECD), which Lithuania expects to join, also criticizes the forestry sector and recommends consolidating forestry enterprises.

OECD Secretary General said during his visit to Vilnius last March that Lithuania's state-owned enterprises should be managed in a transparent manner and pay dividends, noting, among other things, that the country did not need 43 different enterprises, including the directorate general, to manage its forests.

Lithuanian President Dalia Grybauskaitė has also repeatedly called for merging the forestry enterprises.

The Seimas in April 2015 passed amendments to the Law on Forests, but the parliament lacked the political will to change the number of the forestry enterprises.

The state forestry enterprises posted 12.426 million euros in combined net profits for the first half of 2016, down 1.2 percent year-on-year. Their first-half revenue increased by 2.8 percent to 79.999 million euros. These enterprises basically pay no dividends to the state.

Įvertink šį straipnį
Norėdami tobulėti, suteikiame jums galimybę įvertinti skaitomą DELFI turinį.
  • 1
  • 2
  • 3
  • 4
  • 5
(0 žmonių įvertino)
0
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Norwegian IT company Omega to double headcount of Klaipėda office

In 2006, the Lithuanian port city of Klaipėda welcomed the Norwegian company Omega, which develops...

Metro. Who will be the first?

World experience shows that the longest and most expensive metro construction phase is a political...

Wellness start-up Urban establishes development office in Lithuania

Urban was founded in 2014 by Jack Tang and Giles Williams to provide easy and affordable access to...

Profits in Lithuanian banking sector highest since 2007 (1)

Lithuanian banks and branches of foreign banks in Lithuania earned almost 358 million euros (406...

Alternative lending in Baltics is taking market share from traditional banks and credit unions

In the ever-growing European alternative finance market, Lithuania - together with other Baltic...