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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Call for Papua New Guinea to Give Logging

     Christmas Gift to Nation's Children

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Forest Networking a Project of Ecological Enterprises

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12/22/98

OVERVIEW & COMMENTARY by EE

Greenpeace makes an appeal for Papua New Guinea to reconsider it

forest policy in order to give a gift to future generations of PNG

children.  More concretely, it is requested that tax cuts be reversed

and a moratorium declared on all new logging concessions.

g.b.

 

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RELAYED TEXT STARTS HERE:

 

Title:   GREENPEACE URGES PAPUA NEW GUINEA PRIME MINISTER BILL SKATE

         TO GIVE LOGGING CHRISTMAS GIFT TO NATION'S CHILDREN

Source:  Greenpeace press release via Pacific Islands Report

         http://pidp.ewc.hawaii.edu/PIReport/1998/

         December/12-22-20.html

Status:  Distribute freely with credit given to source

Date:    December 22, 1998

 

GREENPEACE PACIFIC

Suva, Fiji Islands

 

NEWS RELEASE

December 22, 1998

 

GREENPEACE URGES

PAPUA NEW GUINEA PRIME MINISTER BILL SKATE

TO GIVE LOGGING CHRISTMAS GIFT TO NATION'S CHILDREN

 

Port Moresby, Papua New Guinea

 

Greenpeace is alarmed that recently passed tax breaks for the logging

industry have led to a dramatic increase in production, without any

corresponding benefits to the nation or landholders.

 

"We have just learned that log exports in November were up about 150%

over the previous month's average -- from about 100,000 cubic meters

exported per month prior to November, to about 250,000 cubic meters

exported in November" said Brian Brunton, Greenpeace Forest

Specialist. "We believe this is a direct result of the dramatic tax

breaks that the Skate government quietly pushed through in October."

 

The new tax breaks require that logging companies pay absolutely no

tax on any logs exported at a price of under 125 kina per cubic meter

FOB. These changes see, on average, companies saving 25 Kina per cubic

meter in taxes. In fact, a recent study by ANU researchers Theodore

Levantis and John Livernois found that the PNG Government captures

only 2.75% of the total value under the recently reduced tax rates

compared to around 33% under the previous regime.

 

"We believe that this situation is scandalous" continued Brunton. "Not

only do these rates increase the incentive for companies to mislabel

and undervalue logs, but the government is now getting almost no

income, landholder royalties have declined to pre-Barnett Inquiry

levels, and the nation's trees are being exported at a furious pace.

We are giving away one of the PNG's most precious resources.

 

"We have reached a point where it is better to leave the trees in the

ground rather than make logging companies rich at the expense of

future generations" said Brunton. "What has us really concerned, are

rumors that, just when it makes sense for our nation to stop the

expansion of export logging, the PM is pushing to have more logging

concessions and FMA's given out to the companies."

 

"We urge the PM and the Papua New Guinea government to give our

children and grandchildren a sustainable future this Christmas by

reversing the tax cuts and declaring a moratorium on all new logging

concessions" said Brunton.

 

For more information contact:

Brian Brunton: TEL: + 675-326-0560

 

Lafcadio Cortesi

Greenpeace Pacific

568 Howard Street

San Francisco, CA 94105

TEL: w/ 415-512-9025 or h/ 510-527-2858

FAX: w/ 415-512-8699 or h/ 510-528-2886

E-Mail: lafcadio.cortesi@dialb.greenpeace.org

 

Samantha Magick

Political/Media Officer

Greenpeace Pacific

Level 1, Old Town Hall

Victoria Parade

Suva, Fiji

TEL: 679 312861

FAX: 679 312784

 

 

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