Abstract
With the federal forestry legislation coming into force in 1993, a multi-functional forest management has been established as the fundamental objective of national forest policy in Switzerland. This modern concept was already developed with the beginning of the federal forest policy during the second half of the last century with the effect that forest enterprises already perform extensive activities in the service sector. For publicly owned forest enterprises in the Alpine region the payment flows clearly show at which degree multi-functional management takes effect on the corresponding financing. Services provided by forest enterprises in the sectors of protection(safe-guarding) and well-being are not only financed by the profits obtained from wood production, but also by budget positions especially established for this purpose. Since the 1980s, the sectoral financing for providing services by the forest enterprises has at least partially contributed to the off-setting of the impact caused by unfavourable economic conditions in wood production. Due to the on-going planning process for the realisation of co-ordinated regional or cantonal policies as well as inter-country developments within the realms of the Alpine convention,the basis for the financing of public forest enterprises based on multi-functional forest management will be even more strongly differentiated in coming years. Pilot projects carried out under the new financial equalisation system between the federal and cantonal governments suggest that multifunctional forest management will form a solid basis for the development and implementation of forest enterprises strategies. On the operational level it is necessary to develop and apply suitable instruments for cost and management control.
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