VICTORY

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PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

World Bank Gets Its Way on Forests, to the Benefit of PNG

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Forest Networking a Project of Ecological Enterprises

10/14/96

 

OVERVIEW & SOURCE by EE

Following are two items which relate the resolution of the conflict between PNG

forest policy and World Bank loan guarantees.  PNG forest policy came into

compliance with past promises through the introduction by the Prime Minister of

a Forestry Amendment bill.  Specifically, concerns over the forestry board

composition were resolved.  This is the third time in four years that PNG NGOs

and international NGOs have worked together with other interested parties to

defeat timber industry sponsored attempts to weaken PNG forestry legislation. 

All that wrote letters, lobbied officials and otherwise took a conservation

stand deserve congratulations.  Following are two items from PNG newspapers

posted at the new UPNG Journalism web site (which includes other PNG news) at:

http://pactok.net.au:80/docs/nius/

g.b.

 

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RELAYED TEXT STARTS HERE:

 

Title -- 248 ECONOMY: World Bank gets its way on forests

Date -- 9 October 1996

Byline --Neville Togarewa

Origin -- Niuswire

Source -- Post-Courier (PNG), 9 October 1996

Copyright -- Post-Courier

Status -- Unabridged

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WORLD BANK GETS ITS WAY ON FORESTS

 

By Neville Togarewa

Parliament yesterday passed the controversial Forestry (Amendment) Bill 1996,

paving the way for the World Bank to release the second tranche of US$25

million to fund the Government's economic recovery program (ERP).

 

The Bill, introduced by Prime Minister Sir Julius Chan, was passed on the

voices after the Government defeated proposed amendments by Milne Bay

Governor Tim Neville by 38 to 24.

 

All the Opposition MPs and Governors present - except the Southern

Highlands Governor Dick Mune - who occupy the middle benches separating the

government side from the Opposition benches, voted against the Bill.

 

The program included a loan from the World Bank of US$50 million for 1995/96

and a standby facility from the International Monetary Fund for balance of

payment support. The loan's first tranche of US$25 million was fully drawn

down at the end of 1995 after the Government had met all the bank's conditions.

 

Sir Julius said there had been "a long, hard tussle" between the Government

and the World Bank.

 

"There has been a considerable strain between us and the bank .... The whole

structural adjustment program with the World Bank and the IMF has resolved

around the forestry issue," he said.

 

While the government was determined to protect Parliament's integrity and the

nation's sovereignty from being compromised, he said, Cabinet had decided to

maintain the structural reform program by passing the amendments to the Forest

Act as proposed by the World Bank.

 

"A number of the bank's requirements impinge on legislative matters and the

process of decision-making of this Parliament. At times I have wondered

whether our international donors always appreciate the roles we have been

elected to fulfill. I have wondered if they fully understand the way our

democracy functions," he said.

 

He said, however, that the release of the second tranche was not the central

issue, adding he was convinced that the government's actions had been

"impeccably correct".

 

"I am sure Members will agree that the release and use of the US$25 million

- the equivalent of a fornight's wages bill for our public service - could

now be easily accommodated within our new revenue measures," the Prime Minister

said.

 

"But it can no longer be a matter of protecting our pride at the risk of

continuing aggravation of an influential international donor. We have come

to terms with a somewhat unpleasant fact - failure to accede to the bank's

demands would place our long-standing credibility and standing at risk. In an

independent world where economic reputation and international standing are

valuable commodities, it is now time to accept."

 

Changes to the compositons of the forestry board means there will now be

eight members who will elect among themselves a chairman and his deputy. The Act

has been further amended to increase the quorum for a board meeting from four

members to six.

 

The board will include the managing director of the Forest Authority,

secretaries of Finance and Environment and Conservation, president of the

Forest Industry Association, president of the Association of Forests, a

provincial administrator representing provincial governments and one

representative each for NGOs and landowners. All members will be appointed

by the NEC.

+++ends

 

 

ITEM #2

 

Title -- S73 FORESTRY: PNG govt repeals forestry bill

Date -- 9 October 1996

Byline -- Kevin Pamba

Origin -- Niuswire

Source -- The National (PNG), 9 October 1996

Copyright -- The National

Status -- Unabridged

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GOVT REPEALS FORESTRY BILL UNDER PRESSURE

 

By Kevin Rali Pamba

PORT MORESBY: The Papua New Guinea government yesterday finally succumbed to

World Bank pressure by repealing the Forestry (Amendment) Bill after stubbornly

standing by it since its passage in July.

 

The World Bank had told the Government that the release of the second tranche of

the economic recovery loan worth US$25 million (K33m) was subject to the repeal

of the legislation.

 

Prime Minister Sir Julius Chan, who presented the new amendment instead of

Forest Minister Andrew Baing, said the US$25 million was equivalent to a

fortnight's wage of the public service and was not necessarily needed. But

it was a case of protecting the image of the country and its standing in

the eyes of international lending agencies and the world community.

 

Although former Forest Minister and Milne Bay Governor Tim Neville suggested

changes to certain aspects of the new amendment, the government used its

numerical strength to quash that. The formality of the third reading of the

amendment will be done today.

 

Opposition Leader Roy Yaki said the Forest Minister had stubbornly stood by

the amendment as if it was "really necessary."

 

"If the Government swallowed its ego and faced up to realities, we would not

have been going around in a vicious circle," he said.

 

However, he clarified that the opposition supported the right to defend national

sovereignty and integrity.

 

The Prime Minister revealed upon questioning from Mr Yaki that the July bill

had not yet been certified as a law because the minister "had not given

notification for its gazettal."

 

Therefore, he said, yesterday's amendment superseded the July bill.

 

Mr Yaki said the non-notification of the bill in the gazette was done purposely

by Mr Baing, knowing that it would be repealed soon.

 

Manus Governor Stephen Pokawin pleaded to the ministers to "let this be the

first and last such incident."

 

He said it shows that Parliament was not used for its intended purpose where

ministers brought legislations only to be thrown out in the next session. This,

he said, undermined and questioned the integrity of Parliament.

 

Papua Niugini Niuswire

http://www.pactok.net.au/docs/nius

 

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