Forest Code bill adopted in the 1st reading

Apr 22, 2005. /Lesprom Network/. The new Forest Code bill was adopted by the State Duma in the 1st reading. 323 MPs voted for the bill, 99.1 MPs voted against. Meanwhile the bill has caused a great deal of controversial disucssions by the deputies, timber industry officials, major, medium and small timber industrialists. According to the deputies, the new edition of the Forest Code does not stimulate the flow of investments into the timber industry, the bill does not allow private property on forestries, putting the small-scale business in unfavorable conditions compared to the large-scale business: small-scale timber companies will not be able to participate in forest auctions. Besides, the timber sector does not envisage the prolongation of forest rent even if the rentor has a good forest management record. Therefore investments in the forest industry are not profitable. MP Vladimir Krupchak: ‘Imagine that the enterprises that invested millions of dollars in the maintenance of forest roads with villages for the workers, spent money on certification, equipment acquisition and etc. And then the forest is set for auction. A financial speculant wins the auction and then rents the forest on sublease terms. The rent price is then considerably higher’. The main criteria for the auctions should not consist in the financial status of the candidate, but his production capacities for advanced timber procession and for the production of goods with high added value. The code in its current state creates more profitable conditions for the exports of raw timber and not for the procession of timber inside the country, Vladimir Krupchak said. MP Nikolai Gonchar thinks that the current edition of the Forest Code will boost corruption. According to the code, the responsibility for forest protection lies on the specially-designated executive institution, however no department or agency has been named so far. ‘This is an indirect norm of activity. The existance of such norms gives way to corruption’ he said. As Lesprom.ru reported earlier, before the discussion of the Forest Code by the parliament, a copy of it was sent to all the regions of Russia. Many regional administrations sent protest letters to the State Duma. The legislative assembly of Saint-Petersburg decided to decline the new code. ‘If in spite of the protest expressed not only by Saint-Petersburg, but by many other regions, the Forest Code is adopted in the 1st reading, we will continue the work on the bill in order to alleviate the negative consequences of the it and will prepare amendments’ coordinator of the working group D. Afinogenov said.