05.12.2007 - The Supervisory Board of RMK approved the budget of RMK for 2008 29.09

On 30 November 2008, the Supervisory Board of RMK approved the budget of RMK for 2008, which includes total income of BEEK 1.955. Revenue from the forest into the state budget is forecasted to be MEEK 275, which is 71% higher than in the budget for 2007. Forecasted profit for 2008 is MEEK 374 and operating expenses BEEK 1.306.

The budget has been compiled on the basis of the development plan for 2007-2010. Significant increase of work volumes has been planned for all main work areas of RMK – forest management, growth of forest regeneration material and ensuring everyone’s use of forests.

Work volumes in the growing of forest regeneration material will increase by up to 40% in various work stages. New forest will be established on 5 000 hectares (+5%), forest underwood maintained on 12 900 ha (+10%) and thinning carried out on 11 200 ha (+5%). Pursuant to the implemented amendment of the Forest Act, the scope of logging will increase to 2 348 000 cubic metres (+12%) in 2008. In 2008, RMK will invest MEEK 100 in forest improvement.

The amount of forest seed and plants will be ensured, pursuant to increasing need in state forests, by growing forest regeneration material. Growth will be concentrated, the cost price of the material reduced and the quality of seeds and plants improved. In order to maintain the reserve of state forest seeds, investments will be made in cone driers and seed storage depots.

Costs related to everyone’s right to use forests will increase by 30%. New possibilities for recreation will be created and the quality of existing hiking trails and camp sites will be improved, and the growing nature awareness of people will also be continued. One of the major projects for 2008 is the opening of the nature centre in Oandu (West Viru County).

“It cannot be considered a normal situation where approximately one quarter of the timber from the state forest is suitable only for heating. Forest regeneration works must be carried out in the necessary scope and on time,” said Ülle Rajasalu, Chairman of the Supervisory Board, on priorities of the budget of RMK for 2008. “The state forest should create possibilities for citizens to use all benefits related to forests. Therefore we have decided to increase recreation possibilities in forests and by that we wish to make people care more about nature”.

The draft budget approved by the Supervisory Board provides a raise of employees’ salaries by 15% in 2008. “RMK has high goals for the new year and in order to achieve these goals every employee must work hard. Therefore, salaries should be respectable,” said Aigar Kallas, Chairman of the Management Board of RMK.

RMK is a profit-making state institution established under the Forest Act and its main task is the sustainable and effective management of state forests. RMK grows forest regeneration material, organises work in the woods, the sale of timber, and takes care of game. In addition, RMK creates possibilities for recreation in rest areas in the forest and shapes nature awareness. RMK manages 38% of the forests in Estonia.

Additional information:

Ülle Rajasalu
Chairman of the Supervisory Board of RMK
Tel: +372 511 7319

Aigar Kallas
Chairman of the Management Board of RMK
Tel: +372 528 1299