Response to interpellation 2024/25:15 on notices in the sawmill industry
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
KD argues that the sawmill industry is vulnerable due to lack of domestic demand and concerns over raw material availability 1. The government is working to improve the construction sector's conditions by combating inflation, increasing the roof deduction, and simplifying regulations 1. KD emphasizes that forestry is important for the bioeconomy and that Sweden should fulfill its climate commitments in a cost-effective manner without restricting forestry 1. S argues that the industry's decline is due to the government's lack of housing policy 2. S points out that the forest is not mentioned in the Tidö Agreement 2 and expresses concern over the raw material shortage as layoff notices have expired and shifts are closing 2.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Landsbygdsministern Peter Kullgren (KD)
Madam Speaker! Isak From has asked the Minister for Energy and Business how she intends to strengthen the sawmill industry and increase domestic demand for sawn timber for the construction industry, as well as how she and the government intend to counter the feared logging restrictions that are judged to come with the EU's goals for carbon sequestration in trees, which are judged to significantly affect the supply of timber to the sawmills. The work within the government is so distributed that it is I who shall answer the interpellation.
I share the concern regarding the sawmill industry's vulnerable position concerning both the lack of domestic demand for sawn timber and the question of sufficient supply of raw materials in the short and long term. The Swedish sawmills have an important role in the growing bioeconomy and create growth and employment throughout the country.
Demand for wood from the domestic construction industry is strongly influenced by the economic situation within the construction sector and thus also by inflation and the interest rate level. Construction, not least within the housing sector, has slowed down significantly, with a halving of the number of construction starts between 2022 and 2023.
Since the government took office, the focus has been to reverse the negative trend. We have worked to combat inflation and now foresee a falling interest rate level, which will contribute to improving the conditions for the Swedish construction sector.
The government has furthermore taken several other measures that have a direct effect on domestic construction, including a temporarily increased tax deduction for renovations, as well as implemented regulatory simplifications in the planning and building legislation. The government has also taken measures to promote sustainable construction, for example in wood.
Regarding the EU's LULUCF Regulation (Regulation (EU) 2023/839 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/841), I want to emphasize that it represents a commitment for the state of Sweden - not for individual forest owners or companies. The Environmental Goals Commission has been tasked, among other things, with developing proposals for measures so that Sweden can fulfill its LULUCF commitment in a cost-effective manner, taking into account other needs, such as security of supply, rural development, and competitiveness.
The Government assesses that active forestry with high growth and the use of products from renewable raw materials provides the greatest long-term climate benefit. Renewable raw materials are needed today and will be needed to an ever greater extent in the future to phase out fossil-intensive resources both in Sweden and in other countries.
The Government prioritizes that Swedish forestry is not restricted but can fully contribute to achieving the climate goals as well as to jobs and growth throughout the country. The direction for continued work is to promote a long-term sustainable, active Swedish forestry and a growing circular bioeconomy with competitive industries.
Isak From (S)
Madam Speaker! Thank you, Minister Kullgren - I share much of the fine words about the forest's importance that the Minister delivers in his answer.
Madam Speaker! It took the government two months to produce this answer - I submitted this interpellation in the middle of September. This may be an indication of how the government and the Tidö cooperation view the Swedish forest. I had to look at the Tidö Agreement, and what I can see is that the forest is not mentioned at all. The Tidö cooperation is therefore not based on Swedish forest policy, a policy and an industry that are immensely important for Sweden.
When I wrote this interpellation, I took note of the figures for the first and second quarters of 2024, which showed a sharp decline in the industry, where sawn timber decreased significantly. This is due, as I write in my interpellation, primarily to two factors. One is the lack of domestic demand. The Minister writes in his response that demand is affected by the economic cycle, but it is also affected by the pursued policy. This government has not had, and has not had, a housing policy to provide the country with housing, preferably built in wood.
I am from Västerbotten, and there the economy has been somewhat better. There has been a very large demand for sawn timber; several manufacturers of modular houses have delivered and have had a large demand. Right now, at least two companies in Lycksele, Kubly and Maxmoduler, are affected by what is happening with Northvolt and one of the Northvolt companies' bankruptcies. We naturally hope that they will survive the winter, because there is a large demand for their products.
As I write in my interpellation, Holmen has also been hedging. Those hedges have now expired, and several shifts are being closed at their sawmills. This is primarily due to the lack of availability of raw materials.
In recent years, it is actually storm Hans that has ensured that timber has been delivered to the Norrland sawmills. Sveaskog has paused over 40 percent of its ongoing logging in Norrbotten for the reason of FSC certification; greater consideration needs to be taken. There is a fairly large concern in northern Sweden about what happens if the landowners and the forest industry cannot continue to manage the forest and supply the sawmills. It cannot be that we are to hope for a new storm that destroys another municipality so that we can get timber to our sawmills.
This is a question that concerns the government to the highest degree, and I actually expect somewhat better answers than those that the minister has delivered here today.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.