01.12.2008 - The Supervisory Board approved RMK’s 2009 budget 04.10

At the meeting held on 28 November, the Supervisory Board of the State Forest Management Centre (RMK) approved RMK’s 2009 budget, the total finances of which are BEEK 1.7. Together with the retained profits from previous years, it is planned to carry MEEK 680 into the state budget. The planned profit for next year, following the discharging of state budget commitments, is MEEK 76 and operating costs are BEEK 1.4.

The estimated income for 2009 is decreasing in relation to the estimated 14% decrease in the price of timber. "However, there is still the need to increase silviculture and nature preservation works, which is why operating costs will increase by 9%," Ülle Rajasalu, Chairman of the Supervisory Board of RMK explained. “What is positive is that, due to the reorganisations carried out at RMK this year, general administrative costs will decrease by 13% in the budget, being even lower than the 2007 level,” Ülle Rajasalu added.

Ülle Rajasalu pointed out the cost of transport as one of the examples of the inevitable increase in operating costs. “Due to transport limitations and the closing of timber industries, both average transport distances and the number of trips have increased, which is why transport costs alone are MEEK 71 higher in the budget for next year than they were this year,” she explained.

The volumes of silviculture works in the budget for 2009 are planned as follows: 4386 ha of new forest will be established, 13 000 ha of young growth will be taken care of, 10 800 ha of thinning will be performed. The volume of timber to be cut in 2009 from the state forest is 2.4 million cubic metres. In 2009, RMK will invest MEEK 150 into forestry improvement and MEEK 42 has been planned for the running costs for the maintenance of forest roads.

The expenses and investments related to nature education and the opportunities for hiking in nature will increase to MEEK 86, which is almost one third more than this year.

RMK’s 2009 budget has been prepared according to RMK’s development plan for the years 2009-2010.

RMK is a profit-making state agency established under the Forestry Act, the main task of which is the sustainable and efficient management of the state forest. RMK grows reforestation materials, organises forestry works, is engaged in the sale of forest and timber and organises game upkeep. In addition, RMK establishes opportunities for hiking in nature and forest recreation on recreational areas, and shapes awareness of nature. RMK manages 38% of Estonia’s forests.

Additional information:
Ülle Rajasalu
Chairman of Supervisory Board of RMK
Telephone +372 511 7319
E-mail ulle.rajasalu@envir.ee

Jaanus Laas
Financial Director of RMK
Telephone +372 508 8744
E-mail jaanus.laasrmk.ee
www.rmk.ee/en