The programme of the new Finnish Government contains a promise to abolish inheritance and gift tax on agricultural and forest property, as well as to use other tax incentives for improving the conditions for timber production. The main purpose of these reforms is to accelerate the change of generations in respect of forest property and to improve the opportunities for exploiting domestic wood. 45 % of all forest owners are retired. The forecast is that the big change of forest ownership between generations will not take place until 10 - 15 years from now.
A change of generations will also increase forest owners' activity. Mr Antti Sahi, Forest Director of the Central Union of Agricultural Producers and Forest Owners (MTK), says that the transfer of forest property to the next generation should be made as long as the older generation is still alive and not only by means of distribution of estates.
Mr Sahi also emphasizes that the establishment of joint forest ownership, or other new forms of ownership, interests only a small part of forest owners. Such arrangements do not seem to constitute any real alternative to ownership by private families. Appropriate incentives and forest policy methods could improve the present ownership structure.
Also in other respects Prime Minister Matti Vanhanen's government programme puts emphasis on forestry and forest management. In addition to tax relief for changes of generation, the government programme envisages for example increased resources for the continuation of National Forest Programme, for voluntary protection of forests, for improvement of forest road networks and for increasing the use of renewable energy sources. However, there are so far no concrete decisions concerning sums of money and specific measures. Decisions concerning real investments will be taken in the context of the budget negotiations in May.