Forest Owners' Private Property Rights & Wrongs in Lithuania

Forest owners’ private property rights & wrongs in Lithuania

Presentation by: Dr. Algis Gaižutis Chairman of Forest Owners Association of Lithuania

CEPF Seminar on Baltic Countries Forestry 26-06-2013, European Parliament, Brussels Content of presentation:

• Private property rights in EU • Role & Status of Family Forestry in Lithuania • Situation with the private property rights & wrongs in Lithuania • Further actions required

Private property rights in EU

The right to property is protected by article 17 (1) of the EU Charter of Fundamental Rights:

“Everyone has the right to own, use, dispose of and bequeath his or her lawfully acquired possessions. No one may be deprived of his or her possessions, except in the public interest and in the cases and under the conditions provided for by law, subject to fair compensation being paid in good time for their loss. The use of property may be regulated by law in so far as is necessary for the general interest.”

Article 17 is clearly inspired by Article 1 of the First Protocol to the European Convention on Human Rights. Case law by the Court of Justice of the European Union made it clear that the protection of fundamental human rights is part of European law (Case 44/79 (Hauer) 13 December 1979, ECR [1979] 3727). Justified and fair restriction of property rights or expropriation?

Justified and fair restriction of property rights, when that is done:

1) in the public interest and in the cases and under the conditions provided for by law 2) subject to fair compensation 3) being paid in good time for their loss Development of ownership structure in Lithuania (thous.ha)

Expropriation 1940-1952

Land reform 1920-1939 Restitution since 1991

Šaltinis: Dr.N.Kupstaitis; Aplinkos m-ja, 2008 m. PREVAILING TREE SPECIES IN LITHUANIA Pine Spruce Oak Ash Other hardwood Birch Black alder Aspen Gray alder Other softwood

Prevailing tree species in Lithuania Forest Map of Europe

2.0 2.5 0.9

6.4 6.7 3.3 Pine 35.8 Spruce Oak Ash 21.1 Other hardwood Birch Black alder Aspen 21.4 Gray alder Other softwood

Forest land:2173 thous. ha (33,3 % of land area) - of mature stands 364,5 thous. ha

Growing stock: I. Total: 490 mln. m3 - in mature stands 124 mln. m3

Forest management regime: I. Strict reserves (26,3 thous. ha ) – 1.2 % II. Special purpose forests(264,7 thous. ha)– 12.2 % III. Protective forests (330,3 thous. ha) – 15.2 % IV. Commercial forests (1 548,5 thous. ha) – 71.4 %

• Annual allowable felling – 6,5 – 6,7 mln. m³.

GROSS ANNUAL INCREMENT (GAI) BALANCE BY FOREST OWNERSHIP • Forest area per capita - 0,67 ha.

GAI m3/ha per year

7.46 GAI = ∆ + Mk + Mo 8.26 9.12 8.88

17 14 17 22 • Growing wood volume per capita– 151 m³. Mo %, dead 53 71 51 17 Mk %, cutted

∆ %, accumulated

30 15 32 61

All State Private Reserve for restitution

Based on data from National forest inventory permanent plots 1998, remeasured in 2003

Rezerved ~3 mln. inhabitants in for restitution Lithuania: 11,6% 49,5% • ~800 thous. Forest owners 38,9% & their family members • ~20-30 thous. contractors State • ~30 thous. hunters Private ownership • ~2,5 thous. foresters in state forest enterprises • ~2 mln. urban population Annual felling 7,2 mln. m³ ~2,2 mln. ha forests

Private forest owners 3,4 mln. m³ State forest enterprises 3,8 mln. m³ Distribution of private forest holding in Lithuania By area, % By number, % <1,0 ha 6 39 1,0-3,0 ha 18 32

3,1-5,0 ha 15 13

5,1-10,0 ha 22 10

10,1-20,0 ha 17 4

>20,0 ha 22 2

Source: MoE, 2011 Statement by Institute of Law of Lithuania

The Institute of Law of Lithuania in 2012 study „The right to property, the right to freedom of economic activity and initiative, consumer protection issues“ stated: • Private property rights of forest owners are constrained disproportionately in Lithuania (Law on Protected Areas, Law on Hunting, Law on Forests, etc.)

• Expert Kristina Ambrazevičiūtė: “Importance of human rights lies in the fact that the latter determines the limits of State power. Meanwhile, the state power can also be abused, and the consequences of such abuse are much more severe” http://www.teise.org/data/Teises_i_nuosavybe_uztikrinimo_problemos.pdf HUNTING... BUT  • For the landowner (not a hunter): 0 rights to use own property for hunting activities . Only opportunity- to forbid hunting activities in his/her property

• Hunting rights of landowner- hunter: if hunting club allow, then landowner can hunt as a guest, but should pay a entrance fee for the club. • To become member of the club- specific situation from case to case…, by law- posibility -when owning more than 100 ha Is it possible to establish new private hunting club?

NOT NOW, BECAUSE: Minimum size for hunting area is 1000 ha ; when: • mean size of private agriculture holding is ~8 ha • mean size of private forest holding is 3.4 ha • leasing contracts of land/forest for hunting are not recognized by authorities Restrictions of private property size are: *Agricultural land: max 300 ha for physical person and max 500 ha for juridical person *Forest land: - no limits of size to purchase, but max of 150 ha for restitution Environment policy. Point of view: „to protect forest we can only by banning activities of forest owner on his property “

~65% of area of Lithuania- under Law on Protected Territories – "... just against the human is needed to protect the nature.<...> The regime in protected area can be varied only in the tightening direction if we see that it is too liberal. Otherwise, such the area can no longer be called “protected”,- Member of Seimas Environment Protection Committee Aurelija Stancikienė

“Seems that areas are protected not for man, but against the human being, forgetting that even the restrictions of human activities should be done for benefit of people",- former minister of Justice, recently Member of Seimas Remigijus Šimašius Infrastructure lines (electricity etc.) in private land / forest

Recent changes (2012) in Forest Act : • NOT required to ask owner for permit to cut forest • NOT required to ask owner for permit to change land use • NO compensation, as such regulation determined by law

Family forest owners in Lithuania • Private forestry-small(~3,3 ha) and fragmented holdings owned by large number of (~247 thous.) not well organized forest owners • ~ 28 % all holdings- are in joint ownership. • As one of most important objectives for small forest owners- satisfy demand on firewood and other wood for own use. • Forest holding- not a main source of incomes for a big part of owners Mision of Forest Owners Association of Lithuania: to unite forest owners and their organisations into the association, capable of coordinating their activities, to represent and protect interest of members

Strategic areas of FOAL activities:

• Lobbying to represent interest of family forest owners

• Extension services

• Income mobilization of family forest owners

• SFM of private forests.

• Development of organizational structures Further actions required

The European Parliament, through the instrument of the Petitions Committee (or other instruments), should form a fact finding Missions to Baltic States to investigate cases of systematic violations on private property rights. Thank you ! Forest Owners Association of Lithuania

Ozo str. 10A, LT-08200 Vilnius, Lithuania Ph.: +370 5 2767590 Fax.: +370 5 2767590 E-mail [email protected] QUESTIONS?? More about private forests in Lithuania: www.forest.lt