Forestry contractors seek compensation for African swine fever losses

Forestry machinery contractors are seeking state compensation for income losses caused by African swine fever restrictions in southeastern Finland, Yle reports. Their industry organisation says the government should prepare for compensation in its supplementary budget this autumn.

Forestry work has been banned in the African swine fever infection zone, restricting the contractors’ freedom to operate. The restrictions are estimated to affect about 10 contractors.

The immediate loss is estimated at about 70 per cent of the contractors’ turnover. Matti Peltola, chief executive of the contractors’ organisation, puts the annual impact at approximately 5 million euros.

Peltola said it was practically very difficult to find replacement contracts outside the infection zone because those jobs already had contractors assigned to them.

The organisation said the situation was likely to be most difficult for small contractors working as subcontractors, who would also find it hardest to secure replacement work.

Peltola said compensation for income losses caused by the restrictions should be assessed in the same way as compensation linked to the Covid-19 restrictions.

Several groups seek state support

Agricultural producers have also called on the state to fully compensate all direct and indirect costs and income losses caused by the disease and efforts to control it.

The restrictions are also affecting the finances of municipalities within the restricted zone. The municipal managers of Virolahti and Miehikkälä have asked the state to compensate them for the resulting financial losses.

Agriculture and Forestry Minister Sari Essayah has previously said that the state may compensate some entrepreneurs for income losses caused by the African swine fever restrictions. She has not yet made any commitments.

The government’s budget session will take place next week.