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Vol. 1985/0 264 
  
 
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COMMISSION OF THE EUROPEAN COMMUNITIES
C0MC85) 792 final  
Brussels, 7 January 1986
Discussion Paper
on Community Action in the Forestry Sector
(Communication by the Commission to the Council)
COM(85) 792 final

Discussion Paper
ON COMMUNITY ACTION IN THE FORESTRY SECTOR
I.  Introduction
1. The European Commission undertook in the programme
it presented to the European Parliament in March 1985  
produce proposals related to forestry. It  
subsequently decided to consult widely before making  
concrete proposals. The Commission is presenting this  
paper on forestry as a basis for consultation. After  
interested parties have had the opportunity of  
expressing their opinions on the ideas put forward  
here, the Commission will make proposals for a  
Community forestry action programme.
In order to help these consultations, the Commission is  
publishing a more extensive and descriptive paper on  
forestry in the Community as an addition to the present  
document. A Community Action Programme would be  
complementary to national policies. This Forestry  
Action Programme could involve a series of measures  
which would lead to the extension of the forest area  
and improvements in the utility derived from existing  
forests. While the Commission is not proposing to  
establish a Community forest policy, many of the  
actions suggested would be more effective if taken at  
the level of the Community rather than at the level of  
individual Member States.
In addition to stimulating discussions on forestry  
in the Community, the Commission is convinced that  
forestry problems in countries outside Europe,  
especially in the developing world, should also be  
considered.
II.  The importance of Community forests
2. Forests meet an important need for industrial
materials, providing economic activity and employment  
in what are often less-prosperous regions and  
supporting activity and employment in wood-using  
industries elsewhere in the Community. They also play  
a vital role in maintaining the ecological balance  
and contributing to environmental quality, in the  
prevention of erosion and desertification, and in the  
recreational and leisure activities of the Community's  
citizens.
./·

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3. The need of the ten Member States for forest products  
(sawn timber, panels, pulp, paper, and so on) greatly  
exceeds the amount of wood obtained from Community  
forests, with the result that the Community is the  
world's biggest net importer of wood products. Net  
imports amounted to nearly 17 000 MECU in 1984 and this  
situation will be unchanged by the accession of Spain  
and Portugal.
This growing shortfall between the Community's demand  
for timber and its own production is only partly due to  
the insufficiency of the planted area - after all 20%  
of the Community's land area is planted to trees. It is  
also due to the under-utilisation of much of the  
existing forest, some of which is totally  
unproductive. Proper management and silvicultural  
techniques could improve the health, appearance and  
output of such forests.
At the same time, an increase in the supply of timber  
(bearing in mind that some demand can only be met by  
imports), coupled with a better organisation, could  
sustain more activity in the Community's own wood-using  
industries. Despite its overall deficit, the Community  
exports about 2 million tons a year of paper and board  
and is a net exporter of furniture. The demand and  
industrial capability exist therefore in the Community  
which should make possible a greater use of renewable  
resources, creating additional revenue and employment.
4. The environmental role of forests is important in
relation to nature conservation and the maintenance of  
the natural balance, including the protection of soils  
an<3 the prevention of water loss, as well as providing  
scope for recreation activities. Environmental  
objectives need not conflict with the objective of  
greater forestry development. In providing recreation  
to both the rural and urban population, forests answer  
social needs and help to provide services and leisure  
industries which reflect new trends in consumer demand.
The three main functions of Community forests
mentioned above - providing raw materials, maintaining \
ecological balance and acting as a base for  
recreational activities - are of great importance.
Improving the output of raw materials and services from  
Community forests can and should be achieved together.
·/·

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The European Commission has made proposals for forestry  
and timber in the past. Several of these initiatives  
(on research, agricultural structure etc) have been  
implemented. A proposal on the protection of forests  
from fire and from acid rain damage finds support from  
a large majority of delegations and discussions in the  
Council are continuing. Two other initiatives are still  
before the Council with little progress being made on  
any of them. In 1979 the Commission proposed a  
Resolution on a Community Forestry Policy and the  
setting up of a Standing Forestry Committee. In
1983 it proposed objectives and lines of action for  
Community policy regarding forestry and forest-based  
industries. No decision has been taken by the Council  
on these proposals.
7. Why, then, should the Commission take further
initiatives in the forestry sector ? There are a number  
of reasons.
.  The reduction of agricultural surplusses will lead to  
the search for alternative crops, including forests.
.  The Community's considerable trade deficit in wood  
and wood products gives scope for increasing  
Community timber production, if this can be done  
economically.
.  The need to maintain and expand economic activities  
and employment especially in rural areas.
.  Action is needed to stop the accelerating destruction  
of European forests by atmospheric pollution and by  
fire. The area lost to fire each year in Spain and  
Portugal is approximately the same as that in the  
other ten Member States.
These problems raise important questions of Community  
solidarity and they call for Community action.
8. Another important reason for the Commission to take an  
initiative on forestry is the public pressure for such  
action. Several resolutions requesting action have  
been tabled in the European Parliament. The Parliament  
approved a resolution in 1983 calling for a  
comprehensive Community forestry policy. Many of the  
points raised by the Parliament are dealt with in this  
discussion document.

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9. In fact, the Community "has invested quite heavily in
forestry in the context of its other policies. Between  
1980 and 1984, around 470 MECU were committed from  
FEOGA, the European Regional Development Fund, from  
various research programmes and from the European  
Development Fund (outside the Community). In addition  
the European Investment Bank has made loans for  
forestry projects in Ireland and Portugal as well as in  
developing countries.
While such Community measures have had a significant  
impact, they remain isolated actions in the context of  
different policies. Forestry and the forest-based  
industries form, however, interrelated branches  
of economic activity which requires a clear strategy of  
its own if inefficiency is to be avoided.
Afforestation of marginal land, for example, only makes  
sense if the infrastructure to exploit and use the  
timber can be developed. The different functions of  
Community forests argue in favour of a clearly  
identified forestry action programme.
10. The suggestions for Community action, which the
Commission is putting forward in this paper, fall into  
three groups - extending the forest area, making the  
best use of existing woodland and protecting the  
forest.
Ill.  Extending the Forest area
11. The fact that the Community has a large trade deficit  
in the products of temperate forests has already been  
emphasised.  This deficit will remain even after the  
increase in timber production expected over the coming  
decade from new forests planted since 1945. There is  
wide scope, therefore, for the establishment of new  
forest as long as this can be done in an  
environmentally acceptable way.
Expansion of the forest area would provide employment,  
encouraging people to remain in those parts of the  
Community affected by agricultural decline. An  
increase in the volume of wood effectively available  
from the forest would also allow wood-procèssing  
industries to expand. In some of the already heavily  
wooded areas, where forestry is well organised, large  
numbers of jobs are directly dependent on forestry (in  
the German State of Baden-Württemberg, for instance it  
is estimated that forests provide employment for  
250 000 people).

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12. The Commission's discussion document "Perspectives for  
the Common Agricultural Policy" (COM(85)333) makes  
clear that forestry expansion may be critically  
important to the development of Community agriculture.
- Land released from agriculture as a result of the  
crisis of overproduction could be planted to trees.
- Forestry could provide a suitable crop on the  
less-productive parts of farms - as it already does  
on the large number of agri-forestry holdings. The  
development of privately-owned forestry on farms  
should therefore be encouraged.
Some areas of marginal agricultural land provide ideal  
growing conditions for trees. There is scope in such  
regions for short-term cropping with a view to  
pressed—board production or processing into  
bio-chemicals as well as for traditional forms of  
timber production, where the owner must wait 15 or 20  
years for a return on investment.
13. The main problem to be tackled in extending the forest  
area is that of incentives. Two approaches are  
currently practised in the Community, tax incentives  
and forestry grant schemes.
14. Incentives given through the tax system have led to a  
considerable extension of private forest in some parts  
of the Community. Measures taken by Member States to  
reduce the tax burden of companies or individuals  
investing in forestry could therefore be an. important  
element in policy for forest expansion.
15. In view of the problems of surplus agricultural  
production in the Community, the Commission is already  
considering possible measures for the development of  
forestry as an alternative to agriculture. In this  
context, the cost of supporting forestry production  
must be seen in relation to the cost of agricultural  
support, and the cost of other measures for taking land  
out of agricultural production.
In the long-term, the objective of agro-forestry action  
must be to develop an activity which is self-sustaining  
and does not require substantial subsidies (it is not  
envisaged that a regime of price supports or further  
external protection would be extended to forestry).

-  6 -
A number of grant schemes already provide incentives to  
farmers to replace annual crops by forestry. Aim of  
the schemes is to provide the farmer with a regular  
income from forestry similar to that from farming. In  
some cases grants are available to cover the investment  
cost involved in creating new woodland. On technique  
was introduced on a limited scale in the directive to  
improve agricultural structures (Regulation 797/85).  
This allows encouragement for farmers to put land down  
to trees by investment aids, or in the case of marginal  
areas by annual payments. Forestry measures have also  
been aided (Regulation 269/79) in France and Italy with  
a view to protection soils from erosion and controlling  
flooding. The development of woodland on farms has  
been assisted by specific agricultural measures in  
Greece and Ireland and by integrated development  
programmes in France and Scotland.
These two approaches - perhaps with different  
modalities - might be applied more extensively in the  
Community where trees replace surplus agricultural  
prod uction.
16. Afforestation in Member States is encouraged through  
tax incentives or through grants. It may also be  
encouraged through Community action. The emphasis  
should be placed on choosing the instrument most suited  
to particular areas or objectives.
The Community could have a direct interest in financing  
such schemes since they could lead to budgetary savings  
on agricultural support. In areas where it is  
considered important to favour certain species for  
economic or ecological reasons, the grants could be  
varied to provide differentiated incentives.
17. Development of a Community action programme for
forestry will require additional effort in forestry  
research, statistics (at regional as well as national  
level) and information. A considerable research effort  
has already been made in the "Wood as a renewable raw  
material" programme, which has just been prolonged for  
a further five years. Other programmes exist in the  
energy, agricultural and environmental areas which  
include forestry. This work could be strengthened by  
further research into tropical timber and alternative  
uses for wood.

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A number of questions are posed in connection with
extending the forestry area.
- How can the extension of the Community's forest area  
best be organised ?
- Under what conditions can forestry play a role as an  
alternative to those agricultural crops in surplus ?  
What would be the budgetary effect of switching areas  
used for agricultural purposes to forestry ?
— How can tax or grant schemes be combined to provide  
efficient incentives to forestry develoment ?
— How can the existing Community funds be used more  
coherently in this area ?
IV Making the best use of existing forest
19. Despite the high level of Community net imports of  
timber,  only a low proportion of the Community1s  
natural wood production is used productively. A  
considerable increase in output could be achieved with  
a relatively small additional investment.
20. The productivity of forests depends partly on the size  
of holdings and the degree to which the forest areas  
are contiguous and easily accessible. In regions where  
forest is held predominantly by state or semi-state  
bodies or by business, the parcels are often large and  
the infrastructure facilitates efficient management.
The 60% of Community forests held in the private sector  
are often characterised by problems of small size and  
dispersal of plots. The average size of private forest  
holdings in the Community is probably about 8 hectares,  
but there are major structural differences between  
Member States. In the United Kingdom, where financial  
institutions own considerable areas of forest, the  
average size of private holdings is far higher than in  
France, Germany or Italy where much of the forest is in  
agricultural units.

-  8 -
21. The main difficulties in improving productivity lie in  
the small size and dispersal of parcels of forest, the  
lack of a suitable infrastructure and,  frequently, the  
absence of ready markets for the wood. In a particular  
region, where these difficulties are acute, the price  
incentive to exploit the available wood may not be  
sufficient to compensate the high cost of harvesting.  
At the same time, It is unlikely that wood-using  
industries even of the most basic type, will be  
established where there is a low availability of  
timber.  The lack of a market takes away any incentive  
to exploit the timber resources.
22. This situation would be improved by the creation of  
forestry associations for groups of individual  
owners. Such associations Supplying forestry services  
and marketing assistance already exist in some areas  
of the Community, and have proved their effectiveness  
in Sweden and Finland. They could be involved in the  
drawing up of management plans for private forests.
The creation of such associations should be  
encouraged.  Their activity could be supplemented by  
firms specializing in forestry work, which could be  
aided in the context of programmes of assistance to  
small and medium sized enterprises, where such aids do  
not have direct effect on the pricing mechanisms of  
wood-based industry.
23. In some areas of the Community, the lack of an  
adequate roadway network in forested areas is a  
handicap to the better utilisation of existing forest  
resources. The Community already aids the creation of  
such networks in the Mediterranean areas of the  
Community. It may be necessary to give similar aid in  
other parts of the Community.
24. Appropriately situated and reasonably stable outlets  
are important for the achievement of higher  
productivity from forests. This, in turn, requires  
that agreements can be made both for forest owners to  
supply industry and for industry to take forest  
products. Establishment of large industrial  
facilities, such as pulp units, clearly requires a  
supply guarantee from a large area of forest. Smaller  
installations, like saw mills and chipboard  
manufacture, also require a continuous supply of raw  
material. The uses of appropriate supply contracts  
should therefore be encouraged.
./·

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In aiming to improve the productivity of forests, it  
is also necessary to support the expansion of  
wood-based industries. At the Community level, for  
instance measures to improve the standardisation of  
forest products would be a useful step to encourage  
the development of the timber trade. The Community  
already has a Directive approximating Member States  
laws on the classification of wood in the rough (1).  
This Directive should be followed where appropriate to  
remove remaining technical barriers to trade in forest  
products.
26. These proposals would help to improve the economic  
iency of forestry. It is also important to  
develop the usefulness of existing forest for  
environment and recreation.
An ecological code of conduct could be established for  
woodland management with the objectives of  
safeguarding the long-term fertility of the soil and  
the role of the forest in the water cycle, the  
conservation of woodland flora and fauna, the  
preservation of landscapes and the creation of an  
adequate diversity of species. The Community already  
supports some of these actions but it is important  
that a complete code of conduct should be generally  
applied.
There is clear evidence, for example, of strong public  
feeling in some regions at the spread of coniferous  
forest and the reduced area of broadleaved woodland.
It is possible to devise aid systems - which would not  
involve large finance - to encourage owners to plant  
deciduous trees. Such schemes could be created partly  
in the context of the common agricultural policy.
The creation of woodland nature reserves and forest  
parks, which are common in many countries, would  
increase the value of Europe's forests as a leisure  
resource. Small amounts of financial aid in the  
creation of the necessary infrastructure could open up  
many woodland areas as nature reserves and  
recreational areas.
(1) Directive 68/89/EEC

-  10  -
27. A number of questions are posed in connection with
making the best use of existing forests.
- How can the problems associated with the small size  
and dispersal of forest blocks be overcome ?
- What can be done to strengthen market possibilities  
for timber and other forest products ?
- How can the objectives of more productive forests,  
environmental quality, species diversity and of  
forests for recreation be combined ?
V. Protecting Community Forests
28. The woodlands in the Community are suffering from  
widespread damage as a result of atmospheric  
pollution, forest fires, attacks by disease and insect  
pests, and, at certain times, as a result of natural  
disasters such as storm and drought.
The destruction of forest in northern Europe has  
reached considerable proportions. It is especially  
widespread in Germany and eastern France.  With about  
50% of the German forest and,  as recent reports  
suggest, 40% of the Vosges forest (Lorraine + Alsace)  
damaged, the future economic development of regions  
dependent on forestry and tourism is at risk. The  
health of these forests has deteriorated at an  
alarming speed.  Whilst the causes of the damage and  
the mechanisms involved are not completely understood,  
it is generally agreed that atmospheric pollution is a  
major factor,  and especially emissions of sulphur  
dioxide and nitrogen oxides.
29. The Commission has already made proposals to reduce  
pollutant emissions from cars, from large combustion  
installations and from domestic central heating  
installations. It envisages making further proposals on  
speed limits, emissions from diesel cars and from  
lorries before the end of the year; and at a later  
stage emissions from other significant sources as  
already announced in COM(83 )721. It considers that \
implementation of these proposals would considerably  
reduce atmospheric pollution and probably related  
forest-damage.
A Commission proposal to establish a regular inventory  
of forest damage and network of observation posts for  
measurement is making only slow progress in the  
Council.

-  11 -
30. Forest fires destroy about 120 000 hectares of woodland  
each year in the ComrnuniLy of Ten and with enlargement  
this will more than double. In 1985, over 300 000  
hectares of forest have been destroyed (more than the  
area of Luxembourg), fifty lives have been lost as well  
as a considerable amount of capital equipment.
The Commission has proposed measures aimed at reducing  
the risk of forest fires and at improving Member  
States' fire-fighting capacity. This proposal would  
aid the establishment of fire fighting stations,  
encourage the improvement of equipment and of the  
training of specialised personnel. The Commission  
regards the progress of this measure, at the moment  
meeting resistance in the Council,  to be of major  
importance. It also believes that the scope of  
Community action in this area should eventually be 
widened .
31. Biotic damage caused by insects or disease poses  
another challenge to Community forests and the  
Community should be prepared to intervene rapidly. The  
Standing Committee on plant health, which meets  
regularly, is consulted whenever a potential biotic  
danger is perceived. The Community has also undertaken  
various research projects in this area. New monitoring  
systems might be developed to reduce the risks of  
introducing new diseases and further specific research  
into forest diseases may be necessary. One important  
measure would be the adoption of a code of conduct on  
genetic impoverishment, a factor which is partly to  
blame for the weakening resistance of European forests.
32. Finally, there is the problem of the results of
exceptional weather conditions, notably windblow. Here  
the Community has in the past restricted imports in  
order to reduce the pressure on the market coming from  
the sudden increase in supply. In order to improve the  
efficiency of such measures further cooperation between  
Member States needs to be considered to ease market  
tensions in such circumstances.
33. A number of questions are posed in connection with
protecting Community forests.
- How can forests be protected against pollution  
damage ?
- What steps need to be taken to reduce forest losses  
due to fire ?
- How can the monitoring of disease or damage by  
insects be improved ?

-  12  -
VI.  Forestry in developing countries
34. As the Community is a major importer of wood,
notably tropical timber from the developing countries,  
action in the forestry sector cannot be taken in  
isolation.
The^ Community has cooperation agreements through the  
Lome Convention with certain of these supplier  
countries in Africa, the Caribbean and the Pacific  
(ACP). These agreements cover not only commercial  
arrangements but also financial and technical  
cooperation to protect and develop forests as a main  
factor in environmental improvement and defence against  
desertification. The Community is also a contracting  
party to the International Tropical Timber Agreement.
At present the tropical forest is being over exploited  
with grave results for climate and agricultural  
production, as well as the supply of tropical timber.
In a Forestry Action Programme the Community should  
take into account both these international agreements  
an<^ its close relations with many developing countries.
35. A number of questions can be posed in connection with  
the promotion of forestry in developing countries.
- How can the Community mobilize its existing technical  
and scientific capacity to stop the decline of the  
tropical forest area and ensure long-term stability  
in the supply of tropical timber?
- How can the Community accelerate and improve its  
efforts to reduce and ultimately prevent  
desertification in developing countries ?
./·\

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Conclusion
36. The Commission is anxious to proceed to as wide a
consultation as possible on the questions raised and  
the ideas advanced in this paper - supplemented by the  
more extensive accompanying document.
It invites the other Community institutions and other  
organisations to formulate their own reflections and  
comments. Taking account of the views expressed in the  
course of the debate, the Commission will present its  
proposals before the summer of 1986.
The Commission underlines that the present document is  
not intended to prejudice the conclusions which it will  
reach and that it will take full account of the views  
expressed in these consultations.