Country report - Slovak Republic

Prepared by Alexander Čarný

1. EXECUTIVE SUMMARY

To 31 December 2002, the ownership structure of the forests in the Slovak Republic was according to the Permanent Forest Inventory as follows: state 42.8%, in shared ownership 24.0%, private 12.9%, municipal 9.7%, church 3.2%, agriculture cooperatives 0.1%, unknown 7.3%, (non-state sector together 57.2%).

The users structure of forests of the Slovak Republic was (to 31 December 2002) as follows: state organizations of forestry 62.3%, in shared ownership 20.6%, private 6.1%, municipal 8.7%, church 2.1% (non-state sector together 37.7%). From the total area of forests in the Slovak Republic of 1 928 709 hectares, the state organizations of forestry have had in use 1 201 879 hectares and the non-state entities 726 830 hectares of forests.

Comparing the ownership structure of forests with the status of their use in 2002, it can be seen that the state organizations of forestry had in use 1 201 879 hectares of forests to 31 December 2002 (including unknown ownership) which is more by 376 505 hectares of forests than the area of forests under the ownership of the state. In case of deduction of the area of unknown owners it is more by 235 567 hectares.

From the total area of the forest land resources of the Slovak Republic 2 006 438 hectares (state to 31 December 2001), 94 274 entities required returning back of the ownership and users rights to the area of 989 324 hectares (49.3 % of the total area of the forest land resources of SR) to 31 December 2002.

To the observed date, 49 111 applications (52 % of the total number of applications) were positively settled. The ownership or users right were physically returned on 851 000 hectares (42 % of the total forest land resources of SR and 86 % of the claimed area). According to the state as of 31 December 2002, the ownership and users rights to forests should be returned (in case all applications are justified) to 45 163 applicants (48 % of the number of applicants) with the area of 138 324 hectares (14 % of the claimed area), mainly to individual owners.

Returning of forests to owners has stagnated for a long time since it is a question of mainly small individual ownership of forest property. These can not be identified in the terrain, as well as they are mainly in shared co-ownership. Owners refuse associating or they did not submit the documents relating to their property contrary to call. This condition is obvious from the inter-annual increase. It can be seen that while in 1992 per one positively settled claim fell on 113.3 hectares, in 1998 it was only 2.4 hectares and in 1999 3.6 hectares. In 2002, an increase of this indicator (17.5 hectares per positively settled claim) was recorded. Based on these data it can be supposed that without complex amendment of relevant laws, simplifying the whole process including provision of sufficient financial means for reallocation of land, the completion of settlement of ownership and mainly user rights to forests will take a long time. The whole process of reprivatization of forests will be extended due to the Act on adjustment of deadline on application for some claims resulting from the Act No. 229/1991 of Coll. and on amendment and completion of the Act of the National Council No. 180/1991 of Coll. in version of later regulations.

In 2002 increment of gross domestic product in constant prices of the year 1995 reached 4.4%. This development was conditioned by internal demand after foreign goods as well as improvement of foreign trade. Partial inter-annual drop of the amount of balance of foreign trade by 5.5% to the value 96.6 billions SKK proves of that. Similarly the drop was smaller also for state budget by 35%, when it reached 51.6 billion SKK.

Employment rate has increased by 0.14% what together with retirement of a considerable part of employees resulted in reduction of unemployment rate by 0.7%. Also the proportion of employed economically active population has increased (from 80.1% to 80.9%).

Average monthly salary has increased in the economy by 9.26%. After considering inflation it represents about 6%. Increase of nominal value was slightly lower in forestry, 8.3% and really 5%.

Despite improvement of the conditions of obtaining foreign financial capital, reduction of discount rate and subsequently interest rates of commercial banks the level of investments in forestry remained almost the same. Use of foreign sources is minimal. Investment activity in the economy of SR has increased almost by 9%. Higher rate of investments in industry and trade was reached mainly due to foreign investments.

The proportion of forest sector in macroeconomics of whole economy is slowly decreasing. It is the result of the increase of gross domestic product of the economy of SR and of relatively stable annual forest production realized at market. Benefits of public-beneficial forest functions and services of forestry for other sectors, mainly environment sector and citizens of SR have not been considered yet. Their value represents according to global methodology of calculation about 18 billion SKK per year, what might reflect after accepting them in the increase of forest sector proportion in gross domestic product to the level 1.8%.

The development of the economics of SR in 2003 can be unfavourably influenced also by restriction measures in prices and taxes. There are certain doubts from application of EU rules in economic practice of SR. In forestry restructuring measures in entrepreneurial sphere as well as in forestry institutions are expected. They should result definitely in the increase of the effectiveness of the forestry of SR and its competition ability in Europe and whole world.

Forests make up the basic component of the environment. They influence and improve climate, water and soil conditions, create a natural environment for many species of plants and animals, and their communities, preserve nature beauties and are a source of health and recreation for inhabitants (§ 1 of the Act No. 61/1977 of Coll. on forests). In comparison to the surrounding countries, the Slovak forests are characterized by the fact that on relatively small area they have considerably varied nature conditions and various kinds of forests, from lowlands to alpine forests. A large scale of autochthonous tree species and communities has been preserved here. This fact was reflected into § 1 of the Act No. 543/2002 of the Digest on protection of nature and landscape which should contribute to conservation of diversity of conditions and forms of life on Earth, create conditions for permanent maintenance, regeneration and rational utilization of nature resources, rescue of the natural heritage, characteristic appearance of the landscape, as well as reaching and keeping of ecological stability.

The total area of forest coverage of specially protected parts of nature (degree 2nd - 5th) makes up 80 %. From that follows a great importance of the forest ecosystems in these territories.

In 2002, the new act on forests was developed according to the plan of legislative tasks of the Government of the Slovak Republic. The act was after a difficult reminding procedure submitted as the proposal of the government to the negotiation of the National Council of the Slovak Republic in a summary jurisdiction. Regarding the fact that it did not gain a necessary support it was not submitted to negotiation of the plenum of the National Council of the Slovak Republic in the last elective period.

On 3 April 2002, the Government of SR discussed and approved, by the Decision No. 329, a legislative intention of the act on game management. The Ministry of Agriculture of SR issued the Decree No. 407/2002 of the Digest which amends and completes the Decree of the Ministry of Agriculture and Food of the Slovak Socialist Republic No. 59/1967 of Coll. adapting the executive regulations to the act on game management.

Forestry Section of the Ministry of Agriculture of SR issued on 3 June 2002 the Methodical procedure on establishment, management and utilization of seed sources of forest tree species according to the Decree of the Ministry of Agriculture of SR No. 64/2001 of the Digest on reproductive stock of forest tree species, its obtaining and record keeping as the methodical aid for forest users, qualified forest managers, developers of the forest management plans and the bodies of the state administration of forestry (No. 164/2002-700). The Methodical instruction of the Forestry Section of the Ministry of Agriculture of SR No. 230/2002-700 of 15 July 2002 adjusted a procedure of implementation of the tending measures in forest stands.

In 2004, the proposed support of the forest management from the state budget realized through the mediation of the chapter budget of the Ministry of Agriculture including the means from the European Union sources is within the program structure of 2004 as follows (million SKK): Program Rural development, Program Policy formulation and implementation - State aid in forestry, Sector Operational Program. The main conceptual program for forestry development is the Strategy of forestry development from 2004 to 2006. The National Forestry Program is under the preparation. It should be implemented from 2006.

2. CONTRIBUTION OF FORESTS

In 2002 gross domestic product of forest sector dropped by 0.1 billion SKKK in comparison with 2001. Its proportion in gross domestic product of the economy of SR was 0.47%. Tendency of decrease probably will not be stopped even in future (limited basic natural factor - forest stands, limits of potential productivity of forest ecosystems, limited competition ability of forest products on European level). By inclusion of other forest benefits into gross domestic product, reviewing the indicators of allowable cut, better valuation of labour factor as well as increasing the prices of commercial production or the change of the methodology of gross domestic product calculation it would be possible to increase this proportion singly but tendency of decrease will continue also after these changes.

Unfavourable tendency of the trend of disparity for the growth of average monthly salary between whole economy of SR and forestry (almost 1%), which was in 2002 in forestry lower by 14.36% than in whole economy of SR (85.64% proportion), still continues. In 2001 it was 13.59% (86.41% proportion).

The proportion of employees in forest sector decreased by 0.10% in comparison with the economy of SR. Though it was relatively a great number (1.5thousand employees) relative rate of reduction dropped due to the growth of employee number in the economy of SR by 0.27%. The development in 2002 can be described as continuation of the tendency of reduction of the number of employees in forestry of SR.

The most unfavourable state was recorded for basic production factor - capital. The volume of investments in forestry dropped by 1.5% in 2002 in comparison with 2001. Also their proportion in the investments in the economy of SR deteriorated by 0.02%.

Certain positive qualitative changes in the participation of forest sector in the economy of SR can be expected in future as a result of forestry involvement into some programmes of rural development within the implementation of EU economic policy.

Development of some indicators of the forestry of Slovak Republic in the years 1990, 2000, 2001 and 2002

Source: FRI Zvolen

Forest land resources are lands permanently intended for fulfilment of forest functions. They are lands covered by forest tree species including clearings to be reforested, it means stand land as well as lands without forest stands, which serve forestry and they are inevitable for forestry activities.

Present state and development of forest land resources and stand area,
its classification according to ownership and use

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Explanatory notes: FLR - forest land resources

SL - stand land

The area of forest land resources has been growing in a long term. Since 1970 it has increased by 4.7% mainly due to afforestation of unsuitable agricultural lands, transfer of agricultural lands covered by forest tree species (so called white plots) as well as gradual harmonization of the records on forest lands with the registry of immovable property in renewal of forest management plans.

Development of forest land resources and stand area in the Slovak Republic

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

The proportion of the area of forests in all age classes is a precondition of sustained and balanced timber production as well as fulfilment of public-beneficial forest functions. Actual age composition of the forests in SR differs a little bit from normal (theoretical, ideal) one.

Area composition of middle (6^th-9^th) and the highest (13^th-15^th) age classes is above normal level. Mainly protective forests and special purpose forests, being important from the viewpoint of nature conservation, account for above normal proportion of forests in the 13^th and higher age class and also in some commercial forests where planned felling was not performed due to high volume of incidental felling what users must perform preferentially. Timber from incidental felling is in accordance with valid legislation to the detriment of prescribed regeneration or tending felling in the stands above 50 years, which are not performed.

Age composition of the forests in the Slovak Republic

Age composition of forests	Aged class (ha / %)
	1	2	3	4	5	6	7	8
Actual	133 443	169 922	142 572	131 169	149 787	203 339	199 608	192 754
	6.9	8.8	7.4	6.8	7.8	10.5	10.3	10.0
Normal (ideal)	175 337	175 337	175 337	175 337	175 337	175 337	175 337	175 337
	9.09	9.09	9.09	9.09	9.09	9.09	9.09	9.09
	9	10	11	12	13	14	15+	Clearing
Actual	194 914	151 455	90 254	55 406	33 448	25 218	44 513	10 907
	10.1	7.9	4.7	2.9	1.7	1.3	2.3	0.6
Normal (ideal)	175 337	168 324	117 476	57 861	7 013	-	-	-
	9.09	8.73	6.09	2.99	0.36	-	-	-

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Age composition of forests in the Slovak Republic

Rotation and regeneration period play an important in forest management. Rotation as general production period of forest stands depends on the goals of management (prevailing functions, forest categories), tree species composition, forest form, age of felling maturity and other indicators. At present rotation is 120 years. It is about 110 years in commercial forests, 115 years in special purpose forests and 190 years in protective forests. Average regeneration period as the period from the beginning to ending regeneration of forest stands is 40 years. It is about 30 years in commercial forests, 40 years in special purpose forests. In protective forests with the goal of management to obtain natural structure regeneration period is about 100 years.

In addition to tree species composition from the viewpoint of ecological stability also suitable age and spatial structure of forest stands is important. First of all applying shelterwood and selection system has positive effect on increasing ecological stability. As a result the proportion of shelterwood and selection type of forests with differentiated age and spatial structure and high proportion of natural regeneration increases as well. The state of spatial and age differentiated forests is given in forest management by means of storeys.

Current area proportion of single-, two- and multi-storeyed forest stands according to forest category

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Standing volume in the forests of SR has been increasing in last decades and on 31 Dec 2002 it reached 423.2 million m³ of d_bh > 7 cm under bark. Average standing volume per ha is 221 m³ d_bh > 7 cm under bark.

Current state and development of standing volume since 1970 (mil. m³ d_bh > 7 cm under bark)

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Present standing volume, standing volume per hectare and stocking according to age clas

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Increase of total standing volume and standing volume per hectare, which increased in comparison with 1970 by 35.1% and 29.2% respectively, is caused by several factors. The most important are following ones:

• Above normal area distribution (area composition) of premature 50-on years old forest stands (Chapter III 1.6). With regard to their relatively high volume increment there is accumulated great supplies of timber in them. As these stands have not reached maturity age yet regeneration felling is not performed in them

• Introducing new yield tables worked out on the basis of domestic empirical material into the practice of forest management (forest management plan effective since 1 Jan 1993). By their applying records on standing volume in the forests of SR can be made more accurate

• Effect of total changes of the environment, especially climate change, growing nitrogen depositions, concentration of carbon dioxide, etc. which have not been completely studied yet

It can be supposed that recent increase of total standing volume due to introduction of new yield tables will continue to the end of the cycle of forest management plans updating according to these new tables. Then the effect of making standing volume more accurate will be eliminated. With growing age the increment of 50-90 years old forest stands with above normal proportion and their standing volume will decrease as in the oldest stands of them already regeneration starts.

Present state and trend of increments since 1980

Increments	Year
	1980		1988		2001		2002
	Total	Per ha	Total	Per ha	Total	Per ha	Total	Per ha
	(ths m3)	(m3)	(ths m3)	(m3)	(ths m3)	(m3)	(ths m3)	(m3)
TMI	8 842	4.75	13 423	6.79	11 299	5.86	11 391	6.00
FMI	5 039	2.71	6 729	3.40	7 291	3.78	7 369	3.88
TMI	8 075	4.34	10 755	5.44	11 209	5.81	11 343	5.98

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Explanatory notes: TCI - total current increment

FMI -final mean increment

TMI-total mean increment

Total current increment is indicator of yield and it gives annual volume production of forest stands. Since 1988 it has decreasing what is connected with age composition of the forests of SR, it means gradual shift of the stands with above normal proportion (at present 50-90 years old) into higher age with lower increments. Stands with highest increments (coniferous tree species at the age 30-50 years) have lower area distribution than normal (Chapter III 1.6) what finally reflects in reduction of total current increment.

Final mean increment serves as orientation parameter of the volume proportion per one year of rotation according to actual state of stands. Total mean increment characterizes upper limit of total felling (mature and premature together). Current age structure of the forests in SR shows lack of mature stands and high proportion of premature stands, therefore current values of final mean increment of 7.3 million m³ and total mean increment 11.3 million m³ are as indicators of mature, total felling resp. not real and they reflect only possible felling potential in case of normal age distribution of the forests of SR. In derivation of the volume of regeneration felling there are applied felling percents (they give proportion of the felling volume in stand standing volume according to age classes). They are applied in dependence on the duration of regeneration and rotation.

Current state of increments according to forest category

Forest category	TCI		FMI		TMI		(Felling/TCI) x100 (%)
	(ths m3)	(m3.ha-1)	(ths m3)	(m3.ha-1)	(ths m3)	(m3.ha-1)
Commercial	7 874	6.15	5 208	4.07	7 996	6.24	58.2
Protective	1 449	4.84	801	2.68	1 265	4.23	17.1
Special purpose	2 068	6.52	1 360	4.28	2 082	6.56	68.6
Together	11 391	6.00	7 369	3.88	11 343	5.98	54.9

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

Explanatory notes: TCI - total current increment

FMI -final mean increment, TMI-total mean incre

Incidental felling complicates the implementation of planned annual tending and regeneration timber felling. In years 1990-2001 they represented almost half of total felling. In 2002 they dropped to 35%.

Timber felling in the forests of SR fluctuated a lot in the years 1980-1999. It dropped from more than 5.8 million m³ in 1980 below 4.5 million m³ in the years 1991-1993. In following years it had increasing tendency again (in the years 2001, 2002 about 6.2 million m³).

Overview of performed felling in Slovakia in the year
1980, 1990, 2001 and 2002

Indicator	Performed felling (ths m3 of wood with dbh > 7 cm under bark) and of that incidental felling (ths m3 of wood with dbh > 7 cm under bark. / %) In year
	1980		1990		2001		2002
Coniferous	2 758	1 000	NEAP II. 2 777	1 838	3 037	1 581	3 209.5	1 727.4
		36.2		66.2		52.0		53.8
Broadleaved	3 106	314	2 499	766	3 147	861	3 038.7	430.4
		10.1		30.7		27.4		14.2
Together	5 864	1 314	5 276	2 604	6 184	2 442	6 248.2	2 157.8
		22.4		49.3		39.5		34.5

Source: Overall information of Forestry information centre of Lesoprojekt Zvolen

State forest organizations reached in 2002 the volume of timber felling 3 858 ths m³ and non-state subjects 2 390 m³ (together 6 248 ths m³). Regeneration felling represented 4 169 ths m³ (67%), tending felling 2 059 m³ (33%) and extraordinary felling 20 ths m³.

Within works of national importance state forest organizations under the Ministry of Agriculture of SR secure afforestation of lands transferred into forest land resources and care about new plantations with costs 0.8 million SKK, repairs and maintenance of the objects of forestry-technical reclamation and torrent control with costs 21.9 million SKK and elimination of damage caused by floods, which were funded from state budget. Then they secured production of Christmas trees (17 100 pcs) and decorative evergreens (10 572 kg). This issue is given in detail in chapter V 4.2.1.2 Other sales and revenues.

There were 1 774 hunting grounds in Slovakia in 2002, of that 16 independent game reserves and 14 independent pheasantries. Despite the fact 1222 lease contracts finished any big changes in the settlement of hunting grounds did not occur. Lease contracts were agreed for existing hunting grounds without any change in their settlement. Their average area in 2002 was 2 504 ha (in 1990 it was 3 991 ha, it means greater by 887 ha).

State enterprise Forests of SR Banská Bystrica had in the year 2002 138 overhead hunting grounds with the area 563 880 ha (13%). 23 were managed by other state organizations (Military Forests and Estates, s.p., Pliešovce, training forests, State forests of TANAP, Forest-Agricultural Estate Ulič, s.e. and others) with the area 175 292 ha (4%). 1 426 hunting grounds with the area 3 260 259 (73%) were on lease by hunting associations and 130 hunting grounds with the area 277 742 ha (6%) other subjects not belonging to organizational units of SPZ. The associations of several users' subjects managed 16 hunting grounds. The highest increase was recorded for the number of other hunting grounds on lease except of SPZ (by 15, area 35 ths ha).

Other state organizations have the highest hunting grounds (on average 7 621 ha) followed by overhead hunting grounds of Forests of SR. s.e. Banská Bystrica (4 086 ha). These hunting grounds form the core of ungulates breeding in all hunting regions. Other hunting grounds on lease have the smallest average area (2 136 ha) and hunting associations (2 286 ha). Total area of hunting area is 4 442 878 ha. Agricultural areas cover 2 330 ths ha, water areas 1 975 ths ha and other 87 ths ha.

In Slovakia currently exist 14 protected landscape areas (Vihorlat, Small Carpathians Karpaty, Poľana, Štiavnické vrchy Mts., Horná Orava, Ponitrie, Kysuce, East Carpathians, White Carpathians, Záhorie, Strážovské vrchy Mts., Cerová vrchovina hills, Latorica, Dunajské luhy) with the area of 525 547 hectares.

Within the protected landscape areas, there are 255 small-area protected territories with the area of 14 014 hectares. Protection zone makes up 1318 hectares. Their total area is 15 332 hectares.

Survey of small-area protected territories in protected landscape area in Slovakia

Source: State Nature Protection of the Slovak Republic

In the Slovak Republic there are 9 national parks (Tatra National Park, Pieniny National Park, Low Tatra National Park, Slovak Paradise, Small Fatra, Muránska plain, Poloniny, Slovak Karst, Great Fatra). Their area is 317 821 hectares. The protection zone makes up 276 379 hectares.

The Slovak Republic as a candidate country for integration into the European Union should harmonize the national legal regulations with the legislation of the European Union. One of the most important interventions into the environment is an establishing the system of Natura 2000 which comprises the territories protected according to two directions (legislative standards). They are the Direction of the Council 79/409/EEC on protection of free-living birds (direction on birds), Direction of the Council 92/43/EEC on protection of biotops, wildlife and free-growing plants (direction on biotops).

Protected bird territories are being declared by the first one and protected territories of the European importance (territory of biotop protection) by the second one. The member states of the European Union are obliged to determine the most suitable territories with the occurrence of chosen plant and animal species and nature habitats and to ensure their statutory protection. Size and number of these territories are not strictly stated by the directions. However, they require to keep or improve biological diversity of the territory.

National legislation implemented the mentioned requirements of the European Union within the Act No. 543/2002 of the Digest on protection of nature and landscape. The protected bird territories and territories of biotop protection, as well as their protection zones are the part of the continual European system of the protected territories. Possibility to secure the legal regulations creates an assumption that the protection of territories within the system of Natura 2000 will be effective to a large extent. For not observance of the protection conditions there will be high recourses.

The total area of proposed protected bird regions according to the Ministry of the Environment of SR is 1 236 545 hectares which represents 25.2% of the area of the country. With the mentioned proportion, the Slovak Republic is classified to the first place in Europe (Germany 7.6%, Greece 4.1%, France 1.6%, Italy 4.6%, Austria 14.4%, Sweden 5.5%) though it has neither the most suitable ecological and ornithological conditions nor sufficient financial means for compensation of the prepared limitations. Expected impact on the public finances after declaring all 38 proposed bird territories by the decrees of the Ministry of the Environment of SR (years 2004 - 2005) represents the sum of 245 million SKK annually. Owners and administrators of the territories have not approved the proposed territories. However, they will be mandatory after approving by the Government of SR.

In addition, almost 400 special protection territories are prepared for declaring within the continual European network of the protected territories (Direction of the Council No. 92/43/EEC on protection of biotops, wildlife and free-growing plants). These will considerably extend the current network of protected territories in Slovakia together with protected bird territories and will have a relevant impact on the state budget. Therefore the interests of nature protection should be harmonized with economic possibilities of the country. In spite of the fact that there has been a title to a compensation of detriment since 1995 it was not implemented till now.

In 2002 sales for timber, as a substantial source of returns, have increased by 2.4% despite the drop of the volume of timber sale by 2.1% in comparison with 2001. Other sales and revenues have increased by almost 7.71%. State support for forestry and other activities have dropped by 3.5%. In total aggregated indicators these three groups of sources recorded increase of sales and revenues by 2.3%.

Sales and revenues were influenced favourably by the reduction of incidental felling, which dropped by 11.5% in comparison with 2001 as well as by growth of labour productivity.

Economic result in forest sector of SR was in 2002 lower by 31.4% than in previous years. Mainly direct and indirect expenses, which increased by 3.69%, affected it unfavourably. It was mainly high wear of machinery capital, increase of labour price, increase of taxes and fees and other operational costs.

The value of forest lands and forests stands reached 282 256 million SKK in 2002 and tangible investment property in residual value 10 339 million. SKK.

Total official value of forests has increased by 1.1% in comparison with 2001. It has increased by 4.3% in state sector and dropped by 3.4% in non-state sector. Increase of official value of forests was caused by the increase of their area. Changes in the value of forests used by state and non-state sector have resulted from the changes in forests area mainly due to their lease.

Value of natural production factor and capital in 2002

Production factor and capital	Sector (in mil SKK)		Together mil SKK	Average in ths SKK per ha of forest
	State	Non-state
Forest lands	52 542	31 794	84 336	42.0
Forest stands	123 484	74 706	198 190	98.7
Together	176 026	106 500	282 526	140.7
TIP in residual value	9 214	1 125	10 339	5.15
Of that buildings and constructions	8 341	836	9 177	4.57
Machines and equipment	873	289	1 162	0.58

Source: Lesoprojekt Zvolen (PIL 2003), Quarterly report Uč POD 2-01, Les V 4-01,

FRI Zvolen (Special questionnaire for forest owners and users)

Explanatory note: TIP - tangible investment property

Indicators of the intensity of utilization of production factors, first of all natural production source, show favourable development of sales and revenues as well as wage costs per ha of forest. State support per ha of forests has dropped by 4.5%.

Production costs per ha of forest show increase by 2.6%, what is cumulative expression of the growth of labour price by 1.6% and of appreciation by 1.3%. Slight increase of appreciation reflects greater increment of newly invested basic capital above depreciated and thus also slight progress in resolving the issue of worn machinery fleet.

State support for performances in public interest (production of positive externalities and internalised benefits of public-beneficial forest functions) calculated per ha of forests dropped by the index 0.955 in 2002.

Intensity of utilization of production factors in nominal value of current year (SKK.ha)

Source: Sector statistical report Les F (MP SR) 1-01, Quarterly report Úč POD 2-01, Analytical standards of state forest enterprises, FRI Zvolen (Special questionnaire for forest owners and users), Les V 4-01

Conclusions follow from the overview of main economic and financial indicators of forest sector in SR for the years 1990, 1993 up to 2003, assumption for the year 2003 and outlook for the year 2004 in for state forests under the Ministry of Agriculture of SR, state forests within other sectors, non-state forests and together:

- Due to the increase of prices on inputs and outputs of forest production as well as its structure sales and revenues have increased since 1990 by coefficient 2.26 and volume of production costs totally by coefficient 2.31. Rate of growth was higher for costs than sales.

- Volume of some performances in silviculture was in 1990 substantially higher than at present, for example in artificial forest regeneration (15.5 ths ha), in protection of young forest stands (141.9 ths ha), and others.

- Opinion on forest regeneration has changed with priority put on natural regeneration what is positive result.

When we compare economic results of state forest organization in current prices we can see their slight decrease. Marked decrease in 1997 and 1999 was probably caused by wind calamities.

In the sector of non-state forests the development of economic result shows gradual improvement from the value 30 up to 393 million SKK in 2001 (in 2002 273 million SKK). The year 1997 was an exception when economic results reached 368 million SKK.

Time series of state support in nominal values (without considering inflation) shows for state sector, except for 1990, a certain balance within the range 246 -476 million SKK. The development of state support in non-state sector with the exception of 1995 has had increasing tendency to the year 2001. In 2002 its value dropped to 109 million SKK. Real values of state support in the years 2000, 2001 and 2002 are several times lower after considering inflation since 1990.

Sales and revenues have increased in total by 2.3%. State forest organizations recorded an increase by 2.2% and non-state sector by 2.5%. Non-state subjects have higher proportion of sales for timber as state forest organizations.

In 2002 less timber was sold than in 2001. Its volume represented only 89.7% of realized felling. Remaining wood was used for own production consumption or remained as supply for respective localities. Sale of timber dropped by 2.1% and of that hardwood by 6.8% and sale of softwood increased by 3.1%. (Data on assortment structure of sold timber are given in chapter III 4 Timber market).

Sales for timber have increased by 2.4%, of that in non-state sector by 5.7% and in state forest organizations by 0.06%. In state forest organizations under the Ministry of Agriculture of SR an increase by 1.17% was recorded.

Sale of timber at home has increased almost by 1%. Mainly softwood contributed to this increase, whose sale increased by 5.5%. For hardwood assortments inland sale dropped by 4%. In 2002 export dropped by 17.3% (softwood assortments by 20.9% and hardwood assortments by 16%).

Returns from softwood accounted for 55% and hardwood for 45%. Realization of m³ of softwood in forest sector of SR was higher in 2002 by 48.8% in comparison with hardwood. Realization of m³ of wood together in state forest organizations was higher by 3.2% in comparison with non-state forest sector, while for softwood assortments the difference was almost 16.4% and for hardwood only 1.2%.

The difference of realization in state and non-state sector results from the offer of smaller volumes of sale and thus by worse position of respective non-state owners in commercial dealings with timber consumers as well as by lack of experience with commercial activity.

Other sales and revenues of forestry have increased in total by 7.7% (in state forest organizations by 9% and in non-state sector by 5%). In 1990 sales and revenues reached 20.3%, in 2000 21.9% and in 2001 only 18.9%. In 2002 they have slightly increased to 19.9%.

This source of revenues includes sale of products of other forest production including plants, forest seed an others, then production of associated production, products of hunting, tourism and forestry services, machinery and other production. It includes also revenues from lease and sale of forest property.

Average timber prices in the forestry of Slovak Republic for the years 2001 - 2002 in SKK.m^-3

Source: Sector statistical report Les D (MP SR) 2-04

Structure of forests (stand area) by ownership and use of particular subjects (to 31 December 2001 and 31 December 2002)

Source: Lesoprojekt Zvolen (Permanent Forest Inventory 2003)

The forests under the ownership of the state are being managed by the state organizations of forestry as follows: Lesy SR, _. p. Banská Bystrica (Forests of the Slovak Republic, state enterprise, Banská Bystrica), Lesopoľnohospodársky majetok, š. p. Ulič (Forest-Agricultural Estate, state enterprise, Ulič), Štátne lesy TANAP-u (State Forests of the Tatra National Park). These organizations belong to the competence of the sector of the Ministry of Agriculture of the Slovak Republic. Vojenské lesy a majetky SR, š. p. Pliešovce (the Military Forests and Estates of the Slovak Republic, state enterprise, Pliešovce) belongs to the competence of the sector of the Ministry of Defense of SR. The forests under the ownership of the state are being used by the school facilities (Technical University in Zvolen, Secondary Forestry Schools in Banská _tiavnica, Liptovský Hrádok and Pre_ov) on the base of the leasing contracts with the Forests of the Slovak Republic, state enterprise, Banská Bystrica.

The state organizations of forestry have managed also the forests of owners who have not handed over them for the various reasons, as well as ones leased from the non-state subjects. The state organizations of forestry use totally 1 201 879 hectares of the stand land, of those 1 116 365 hectares are within the competence of the Ministry of Agriculture of the Slovak Republic. 85 514 hectares are under the competence of other sectors.

The largest state organization of forestry is the state enterprise Lesy SR, _. p., Banská Bystrica (Forests of the Slovak Republic, state enterprise, Banská Bystrica). It has 26 Branch Enterprises (_a_tín, Smolenice, Palárikovo, Levice, Topoľčianky, Prievidza, Trenčín, Považská Bystrica, Žilina, Čadca, Námestovo, Liptovský Hrádok, Beňuš, Čierny Balog, Slovenská Ľupča, Žarnovica, Krupina, Kriváň, Hnúšťa, Revúca, Rožňava, Košice, Prešov, Bardejov, Vranov nad Topľou, Sobrance) and two specialized Branch Enterprises (Semenoles Liptovský Hrádok and Forest Technology Enterprise Banská Bystrica).

Lesopoľnohospodársky majetok Ulič, š. p. (Forest-Agricultural Estate, state enterprise, Ulič) is specific by that it manages also an agricultural land. State Forests of the Tatra National Park provides care about the forest ecosystems of the national park (it is a question of the special purpose forests and protection forests).

According to the Program Declaration of the Government of the Slovak Republic 2002, "The Government will develop and implement the project of transformation of the state enterprises within the forest management under the competence of the Ministry of Agriculture of SR to the state stock company".

The non-state sector comprises the private, municipal and church forests, as well as forests of agriculture co-operatives and in shared ownership. A legal and organizational form of subjects in the non-state sector consists of land communities with or without legal subjectivity, associations founded according to the Civil Code, business companies, natural persons recorded for business activity or without recording, as well as special units (commercial, contributory) of municipal office.

The largest area have the forests in shared ownership (in ownership 462 808 hectares, in use 398 222 hectares), then private ones (in ownership 249 172 hectares, in use 117 688 hectares), municipal (in ownership 187 311 hectares, in use 166 804 hectares), church (in ownership 61 207 hectares, in use 39 815 hectares), agriculture co-operatives (in ownership 1899 hectares, in use 4301 hectares). The area of forests of unknown owners represents 140 938 hectares.

The majority of forests within the non-state sector are being managed by the land communities. These were created by a transformation of former associated forms (especially urbarials and compossessories) according to the Act No. 181/1995 of the Digest. Practical experiences from application of the act on land communities have shown that some its regulations complicate their operation. It is a question especially of "community without legal subjectivity" where provisions on its bodies are missing. In addition, there is missing also provision on procedure within the registration, changes and extension of a land community which can be performed only according to general regulations on administration processes, as well as solving land communities which were incorrectly registered.

As far as a function of individual legal and organizational forms within the non-state sector is concerned, there can be two different cases. The first is the case of larger estates with favorable production and harvesting possibilities. A management here has developed positively as a whole. These entities employ specific forestry staff as a rule. The second is the case of managing the forests with a small area. Unfortunately there hardly can be said about rational management. Owners usually ensure the forest operations by their own forces. Harvested timber is being used for their own consumption (especially heating) or it is purchased from owners by business companies. According to the current experiences, a separate management of small areas of forests is inefficient and does not have prospect in the future. Therefore there is obviously no other possibilities than to associate such estates and to ensure their management for example through the mediation of associations based according to the Civil Code.

Associating of forest owners and users is important from the point of view of their rational management, however, also for example in the commercial activity. As an example can be presented the municipal and urban forest enterprises which have formed the stock company Zolka for implementing their commercial activities.

3. MAIN ISSUES AFFECTING SUSTAINABLE FOREST MANAGEMENT

Among the main current and emerging issues affecting sustainable forest management in Slovakia are:

1. Organizational changes in State forestry Administration

Duties of the State administration of forestry and game management resulting from the relevant acts (Act No. 61/1977 of Coll., No. 100/1977 of Coll., No. 23/1962 of Coll., Act No. 291/1966 of the Digest in wording of later regulations) have been ensured by the departments of lands, agriculture and forestry within the County and District Offices on a local level. Majority of proceedings administered by the bodies of the State administration of forestry and game management are being performed according to the provisions of the Act No. 71/1967 of Coll. on administration proceedings.

In 2004 the State administration of forestry will be ensured by the new organizational structure through Special State administration in forestry. These bodies must be reconstructed during this year.

All above mentioned legislation will be

2. Organizational changes in State Forest Enterprise

According to the Program Declaration of the Government of the Slovak Republic 2002, "The Government will develop and implement the project of transformation of the state enterprises within the forest management under the competence of the Ministry of Agriculture of SR to the state stock company".

The state organizations of forestry have managed also the forests of owners who have not handed over them for the various reasons, as well as ones leased from the non-state subjects. The state organizations of forestry use totally 1 201 879 hectares of the stand land, of those 1 116 365 hectares are within the competence of the Ministry of Agriculture of the Slovak Republic. 85 514 hectares are under the competence of other sectors.

3. Insufficient financing of polyfunctionality of forests

It is necessary to ensure polyfunctionality of forests and their sustainable management through the mediation of ascertaining of forest condition, framework and detailed planning and special projects with guaranty of the state. The task of the state forestry policy is to outline the goals and intentions of the sector and through the mediation of the tools of power (legislation, forest management planning, control, etc.), as well as motivation mechanisms to ensure their fulfilling. Sustainable management can be ensured only by the planning approach. The Slovak Republic is an active participant of world and European forestry summits. During these undertakings, representatives of the Slovak Republic complete the contracts which commit them to implement the adopted conclusions in domestic conditions. Therefore it is necessary to develop these conclusions for ensuring their implementation.

4. Bad forest health conditions

Monitoring of the forest health condition results from the international agreements (Program ICP Forests). It forms a part of the whole monitoring system of the environment in the Slovak Republic. Ensuring of the Forest Protection Service (LOS) follows from the strategic goals of forestry in Slovakia (preservation, protection and improvement of forests). Activity of the Forest Protection Service can prevent from multi-million damages on forest stands caused by injurious agents.

It is necessary to implement the remediation measures in the forests damaged by anthropogenic activity, mainly by pollution in connection to the program of damage elimination in the forest ecosystems by 2010 by the approval of the Government Decision No. 1041 of 18 September 2002 in a harmony with the financial possibilities of the state budget of the Ministry of Agriculture of SR.

5. Increasing demand for forests protection in protected areas

The current area of the protected forest land resources represents more than 43% of the total area of forest estates. Further enlargement of the area of protected territories can be accepted from the point of view of ensuring the sufficient volume of wood raw material. The exception is the building of the NATURA 2000 system which follows from the provisions of the Council Guideline 79/409/EEC on protection of wild birds and the Council Guideline 92/43/EEC on protection of biotops, wildlife and free growing plants.

The Forestry Section of the Ministry of Agriculture of the Slovak Republic has proposed to to adopt moratorium on declaration of further protected territories on the forest land resources with exception of those which declaration follows from the Government Decision No. 1154 of 12 December 2001 in connection with the creation of NATURA 2000 system.

These protected territories on the forest land resources considerably increase the costs of management in forests and reduce the revenues. By that rises a detriment which should have been settled to the non-state entities since 1995 according to the Act No. 287/1994 of the Digest on protection of nature and landscape (it has not been realized till now).

6. The settlement of ownership rights

Implementation of the measures for mitigation of property injustice in forestry referred to many barriers mainly legislative, technical and financial ones which have not been bridged till now. Therefore it is necessary to assess the current trend and to propose the measures for completion of the unclosed cases.

4. POLICY OPTIONS AIMED AT ENHANCING THE CONTRIBUTION OF FORESTRY TO THE COUNTRY SUSTAINABLE DEVELOPMENT

The strategy and concept of forestry and the state forestry policy in the 21 st century represents programmatic frameworks that should be specified from view-points of contents as well as time (2001-2005). Accordingly, consideration should be given not only to the present conditions but also to the potential consequences of several factors influencing the functionality of forest management, and to the financial situation of the state. Options for redistribution of sources in the national budget in the 2001 to 2005 period should be taken into account within the process, along with possibilities to influence the subsidization and contribution policy in the SR forest management.

Continuity of fulfillment of tasks and activities directly affecting the present and future existence and functions of forest management shall be of decisive importance in this period, their realization will provide for its stabilization and for its development until the target year of 2005, and establish the point of origin for the state forestry policy in the following fve years.

The following programmatic goals of forestry were specified until 2005 :

• Resolution of essential problems relating to management and utilization of forests in Slovakia in the interests of permanent benefits of their owners and fulfillment of public beneficial functions,
• Mitigation and removal of the consequences of significant harmful anthropogenic factors, mainly airborne pollutants of domestic and foreign origin,
• Optimal exploitation of the forest production capacities, particularly cutting options in order to generate financial resources sufficiently covering the cost of silvicultural activities, of the renewal and maintenance of tangible and intangible fixed assets, and of the improvement of material and social conditions of forestry workers.
• Generation of sources of additional revenue by supplementary forest management activities and by levying charges on public beneficial services, maintenance of employment, stability and development of rural areas with significant ratios of forestland.
• Strengthening supervision of forest management, source-dependent increase of the level of forest regulation and protection, revaluation and rationalization of forest management, consulting, research and development activities, institutional completion of the sector of forestry.
• Enhancement of international relations and compatibility in basic forestry issues with the European Union member countries.

Structure of ownership and use of stand area (ha / %)
to 31 December 2002

Category	Kind of ownership (use)							Together
	state	private	shared ownership	church	agriculture cooperatives	municipal	unknown
Ownership	825 374	249 172	462 808	61 207	1 899	187 311	140 938	1 928 709
	42.8	12.9	24.0	3.2	0.1	9.7	7.3	100
Use	1 201 879	117 688	398 222	39 815	4 301	166 804	-	1 928 709
	62.3	6.1	20.6	2.1	0.2	8.7	-	100

Source: Lesoprojekt Zvolen (Permanent Forest Inventory 2003)

Progress in reprivatization of forests in Slovakia since 1992

Progress in reprivatization of forests in Slovakia in particular years

According to the cited act the system of complex conservation of nature and landscape is implemented in the following categories:

Survey of small-area protected territories in protected landscape area in Slovakia

Category	Own territory		Protection zone	Together
	number	area (ha)	area (ha)	number	area (ha)
Protected range	22	1 750	117	22	1 867
Nature preserve	103	3 409	81	103	3 490
Nature benchmark	74	491	40	74	531
National nature preserve	52	8 359	1 080	52	9 439
National nature benchmark	4	5	-	4	5
Together	255	14 014	1 318	255	15 332

Source: State Nature Protection of the Slovak Republic