In an interview on YLE's morning radio programme Ykkösaamu, forest industry expert Rainer Häggblom said tax breaks would prevent a catastrophe in the industry. He added that the timing for tax cuts was perfect in order to revamp the organisation of the industry and to move forward with negotiations with Russia.
Meanwhile Matti Kärkkäinen, a forestry science professor at the University of Joensuu, said that tax cuts could stimulate domestic timber sales, even though Russian imports could not be completely eliminated.
Kärkkäinen estimated that this year timber sales will reach 30 to 35 million cubic metres, which is slightly less than the yearly average.
Both men said that reforming the structure of the forest industry must be done quickly. They also pointed to a contradiction in Finnish forest policy: timber sales are encouraged while protecting forests and recreational use of forests are stressed.
Making changes in the industry is also a challenge for forest companies and forest owners. Häggblom said that by 2010 Finland will have to safeguard domestic production with even bigger tax cuts if domestic timber sales don't improve. YLE Major Sales Tax Breaks on Wood
