The Verkhovna Rada has registered draft Resolution No. 13297, which will establish a temporary commission to find solutions to the problems of the forestry, woodworking, and furniture industries in Ukraine.
The draft act and its explanatory note can be found in the document card on the parliament's website.
The initiator of this draft Resolution “On the Establishment of the Temporary Special Commission of the Verkhovna Rada of Ukraine on the Formation and Implementation of State Policy in the Forestry, Woodworking and Furniture Industries of Ukraine” is MP Bohdan Kitsak from the Servant of the People party. The document has already been submitted to the relevant committee.
Why was the draft Resolution No. 13297 developed?
In the explanatory note, the author of this document points out the following key problems of the forestry and related woodworking and furniture industries:
1. Shadowing of the timber market.
It is noted that a significant part of forest resources is harvested and sold outside the official accounting. This leads to state budget losses, market price distortions and unfair competition.
2. Weak control and corruption in forestry.
The MP states that there is a lack of effective monitoring of deforestation, high corruption risks and illegal schemes for harvesting and selling timber. All these factors also create an excessive burden on ecosystems.
3. Technical and investment inequality.
The draft Resolution No. 13297 emphasizes that modern equipment is available only to large enterprises. At the same time, small and medium-sized companies do not have access to investment and innovation.
4. Imbalance in the processing structure.
Bohdan Kitsak reminded of the high export of raw materials from Ukraine with low added value.
“Ukraine is actually exporting jobs, taxes, and added value, instead of forming sustainable local production clusters,” the explanatory note says.
5. Lack of strategic planning.
The author of the document states that there is no comprehensive state policy that would integrate forestry, processing, and exports. The regulatory framework for stock trading, market access for small businesses, and regional peculiarities of forest management also needs to be updated.
6. Staff shortage and labor migration.
According to the MP, educational curricula are outdated and do not meet market needs, and young people are not motivated to work in the industry. Another negative trend is the massive labor migration of skilled workers abroad, particularly to Poland, Germany, and the Czech Republic.
7. Limited access to foreign markets.
Ukrainian furniture producers face a lack of support in international promotion, difficulties with certification according to European standards, and a lack of government support for exports, the MP said.
Therefore, the newly created Temporary Special Commission should conduct an in-depth analysis and monitoring of the state policy in the forestry, woodworking and furniture industries of Ukraine, as well as create and improve mechanisms for regulating, supporting and sustainable development of these sectors.
The MPs who will be part of it will have to analyze the practice of applying and implementing state policy in this area, as well as check the compliance of bylaws on these issues with the law.
What will the Temporary Commission look like and how long will it work?
Draft Resolution No. 13297 envisages that it will consist of 12 MPs: 8 from the Servant of the People party and one each from Batkivshchyna, European Solidarity, Dovira, and Voice.
It is planned that this special commission will work for 1 year from the date of its formation. In 6 months, it will report to the Verkhovna Rada on the results of its work.
In early May, EcoPolitic reported that the National Agency for the Prevention of Corruption checked the State Enterprise “Forests of Ukraine” and initiated 5 investigations.
Earlier, on April 29, the Verkhovna Rada did not support the European integration bill No. 4197-d “On the Timber Market” – there were not enough 226 votes to pass it. The same day, MPs submitted a new draft law No. 13227 on the timber market to replace the failed one.
