According to the Ministry of Environment, the majority of machinery and equipment in forest nurseries are in unsatisfactory condition. Out of 50 available tractors only 7 are in good condition, out of 120 pieces of equipment (plows, harrows, cultivators, seeders, tanks) only 8 fully meet technical requirements.
Revenues from the sale of timber and non-timber products are insufficient to cover the costs and development of the sector.
In this context, the authorities propose to exempt the state forest enterprises from transferring part of the net profit to the state budget in the amount of 16.34 million lei. Thus, the funds will remain at the disposal of the enterprises for investments in modernization and development of production, with obligatory capitalization (increase of the authorized capital in the amount of the granted exemption – 25%) and/or for covering the losses of previous years.
“The measure will give a positive signal to investors and business partners that the state is ready to support strategic companies experiencing temporary difficulties. It will also contribute to the country’s economic and investment stability,” the draft resolution says. The document will be considered by the government.
