Timber business goes up in flames

The Competition Council asked for European Commission's opinion on the establishment of a 30 per cent limit for the volume of timber from each species that a company should be allowed to purchase, before introducing the measure in the draft law that will amend the existing Forestry Code.

According to a release of the competition authority sent to Agerpress, the maintaining of a limit for the acquisition of timber could contradict the Treaty on the Functioning of the European Union in terms of the free movement of goods, which might trigger an infringement procedure against Romania.

Bogdan Chiritoiu, the head of the Competition council specified that the authority already sent a notification to the head of the state to pay attention over the fact that certain provisions of the draft law to amend the Forestry Code could violate the European community legislation.

"Considering that a variant of the law has already been sent for promulgation including such provisions that could infringe European legislation in the competition field, including with respect to the state aid, as it was our responsibility, we have already sent a note to the President of Romania to draw his attention on this matter," said Bogdan Chiritoiu.

The Competition Council reminded in the document that the legislation existing in the competition field is similar to that of the European Union, including instruments meant for the identification and punishment of abuses of companies that have a dominant position on the market. "In fact, the Competition Council actually fined Kronospan, company operating on the wood processing market, with a 3.5 million fine, for abuse of its domineering position. The sanction was confirmed by the High Court of Cassation and Justice," said the above mentioned release.

Moreover, in the coming period the competition authority will complete a study on the wood market and it will make known its recommendations for the improvement of regulations that govern this sector and the functioning of Romsilva.

In his turn, the Minister of Environment, Waters and Forestry, Gratiela Gavrilescu, has recently stated that she hoped this week the Forestry Code will pass the Deputies' Chamber, after which President Klaus Iohannis will promulgate it and then the document "will do its job." The official specified that the Ministry has already prepared the methodological norms for the implementation of the new Forestry Code.

On April 27, the Senate rejected the request for re-examination that President Klaus Iohannis sent to Parliament with respect on the law that will amend the Forestry Code, adopting thus the legislative proposal that was sent for promulgation.