At the meeting with the chairman of the regional executive committee: The initiative is in demand

            For many, far too many of us, the idea that initiative is PUNISHABLE has become ingrained in our minds, poisoned our souls, and imprinted on our subconscious. Without instructions, without hints, without approval – it’s FORBIDDEN. Stick your neck out foolishly and you’ll get it in the neck, according to native folk wisdom. Back in the XIX century, the great Russian writer Saltykov-Shchedrin told a fairy tale about the Wise Goby, who lived a long life precisely because he never stuck his neck out...

            Forget about it! Today, initiative is precisely WHAT IS NEEDED. We need doers now. Smart, practical people capable of rational thinking and calculating their actions several steps ahead. It is precisely for such leaders that the future lies; they are the hope of work collectives. I will say more: they are the reserve of the region, the country. Chairman of the Regional Executive Committee Nikolai Sherstnev never tires of repeating this.

            As promised, at the past operational meeting chaired by the head of the region, the situation at the Vitebsk State Production Forestry Association (hereinafter referred to as GPSLHO) and at OJSC Orsha Construction Materials Plant (hereinafter referred to as Orsha CSM) based on the results of work in January 2016 was re-examined.

            Chairman of the Economics Committee of the Regional Executive Committee Svyatoslav Zarovsky reported that according to operational data, in January, 202.2 thousand cubic meters of wood were harvested by GPSLHO, and the woodworking shops

12.4 thousand cubic meters of "green gold" were processed, 6.4 thousand cubic meters of lumber were produced.

There is an increase in production volumes, but it is at the level of 101.6 – 103.2%, with the target for the current year being 120% compared to 2015. The planned targets for timber harvesting were not met by Bogushevsky, Gorodoksky, Dretunsky, Lepelsky, Ushachsky forestry enterprises; for lumber production – again, Bogushevsky and Lepelsky. The woodworking shops of Bogushevsky, Lepelsky, and Dretunsky forestry enterprises for wood processing have dropped below the level of last year's January.

Considering the high demand for timber abroad, forestry enterprises are inexcusably missing out on profits, stated the chairman of the regional executive committee. In general, for the region, the plan for export timber supply was fulfilled by 137.2% of the plan, and for sawn timber products – by 251.8% compared to January of last year. But, as the deputy chairman of the regional executive committee Viktor Askerko rightly noted, this is not indicative, since at the beginning of 2015, timber export volumes fell to 76%.

At the moment, considering the foreign market conditions, the figures should be several orders of magnitude higher; work must be carried out at full capacity and utilizing the entire daylight to obtain maximum profit. After all, demand may fall after some time. However, in reality, Begomlsky, Bogushevsky, Lepelsky, Rossonsky, Surazhsky forestry enterprises have allowed a decrease in lumber export volumes, and Postavsky did not carry them out at all.

The Orsha Forestry distinguished itself among the others, having taken into account previous criticism and, with the support of the regional and district executive committees, managed to restructure its operations, significantly exceeding the projected January targets and securing leading positions in the republic among enterprises of its profile. The volume of logging increased by more than twofold compared to the plan, and the volume of wood processing by one and a half times. In January, products worth $338,000 were shipped for export, including lumber worth $42,300, which is 4.6 times more than in the corresponding period last year.

This example prompts reflection on the rationality of concentrating wood processing efforts at the base of powerful forestry enterprises, as practice shows that structures of the State Forestry Association with small production volumes have virtually no future.

The situation with the Orsha Woodworking Plant remains difficult. Back in 2005, in execution of the Head of State's directive, its reconstruction began with the aim of creating a modern wood processing production facility for waste-free wood processing. The production of new types of products was organized – euro-pallets, glued furniture boards, mouldings, and other lumber. The full production cycle was planned to be completed with the construction of a pellet plant, which was intended to ensure the enterprise's operational efficiency.

They wanted the best, but it turned out as always: due to the lack of

working capital, it was not built. As a result, the entire KSM operation is inefficient today because, when using the existing sawmill equipment, up to 50% of the wood is turned into chips according to the technology, which are sold to third-party organizations for a pittance. Profitability of sales for 2015 is minus 30%. The combine is suffocating from debts – to banks for loans and borrowings, to suppliers for goods, works and services, to forestry enterprises for timber, for payments to the regional budget... Currently, the enterprise's accounts are arrested, and only urgent needs are paid with the consent of the bailiff. What should be done and what to do next?

            The primary task is to ensure full capacity utilization. For now, colleagues from the Orsha forestry enterprise have "lent a shoulder" to the combine by supplying a certain amount of coniferous sawlog, round timber, and unedged boards. They also allocated three forest plots standing. Neighboring forestry enterprises have also been instructed to load the combine's sawmill. But this is temporary support; it does not solve the problem at its root.

Before making a final decision, the chairman of the Vitebsk Regional Executive Committee's Economy Committee, Sviatoslav Zarovsky, has been instructed to visit the combine with specialists to sort out issues related to salary payments, accounting, product prices, and wood processing services.

The Orsha District Executive Committee and the management of the building materials combine have been given time until the end of March to turn the situation around. Final conclusions will be drawn based on the results of the quarter.

Lyudmila Myshlyonok,

chief specialist of the main department

of ideological work, culture

and for youth affairs of the regional executive committee