Papua New Guinea: Call for Ban on New Export Log Projects

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

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Forest Networking a Project of Ecological Enterprises

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2/8/99

OVERVIEW & COMMENTARY by EE

Following is an article which relates recent happenings in the

Papua New Guinea forest sector; including conflicting

interpretations of the benefits of increased export logging after

log export taxes were cut to 0% for prices under K130 and

significantly reduced for all prices above this mark.

g.b.

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RELAYED TEXT STARTS HERE:

Title: Govt should ban new export log projects

Source: The Independent

Date: February 5, 1999

Byline: BARBARA MASIKE

GREENPEACE forest specialist Brian Brunton says the government

needs to introduce a moratorium on all new export log projects

and encourage landowners to do small and medium processing

themselves.

He said if the government can do that it can save about K12

million in wages to the Forest Authority.

Mr Brunton was commenting on Prime Minister Bill Skate's recent

statement that forestry exports were on the road to recovery

after hitting the bottom in July and August 1998. The prime

minister said exports of forest products responded positively to

the tax relief given to the sector in November 1998. Exports rose

by 28 per cent to US$9.5 million that month. They rose further in

December by 43 per cent and are estimated to have increased by

another 14 per cent to US$15 million in January 1999.

''This is yet another positive sign that the economic recovery

program is working, Mr Skate said. The parliament approved in its

November session a tax relief for the forestry sector by

abolishing the export tax for logs shipment with an average

export value of below K130 per cubic metre, effectively lowering

the tax amount to allow the operator to recover their operating

costs during this period of depressed prices. ''In terms of

volume, export of logs has increased by 130 per cent between

August 1998, when the tax relief was actually announced as part

of my government's eight-point plan and January 1999,'' Mr Skate

said.

''Total exports in 1998 are estimated to have reached 1.6 million

cubic meters compared with three million cubic metres in 1997, or

47 per cent lower. The current monthly export volume of 220,000

cubic metres remains below the monthly average of 250,000 cubic

metres achieved in 1997. However, the government will strictly

enforce the condition of the Forest Management Agreement to

ensure that the maximum allowable cuts are not exceeded. Mr Skate

said that ''while the forestry sector remains important to PNG,

the protection of the environment and national heritage are of

paramount importance to PNG's long term development''.

But Mr Brunton said the government has given very big tax

concessions to loggers at a time when PNG is broke. He said by

doing this: ''The government is trying to mislead the people of

PNG.'' He said the government was trying to expand export

logging. Export logging is when round logs which have not yet

been processed are exported. Mr Brunton said export logging is

the main cause of forest loss in PNG.

He also queried the US$35 million which is still being negotiated

with the World Bank which is meant for protection of trees and

the environment. Mr Brunton said this money will not address the

question of export logging which is the main cause of forest loss

in PNG. He said the recent increase in export logging is a direct

result of tax breaks granted by the government. He said while he

welcomed the conservation aid it is too little too late. ''It is

like pouring funds for conservation into a bath, while export

logging allows taxes, revenue and trees to rush out the

plughole.''

Mr Brunton also said that there are already signs that the forest

minister is taking short cuts with the legal process. He said

there is great danger that the government will avoid the

competitive tendering process mandated by the Forestry Act and

give concessions to their political mates. Mr Brunton said the

reduction in the export log concessions is only saving the

loggers profits. ''Sustainable livelihoods and conservation in

the forests can only be achieved through Papua New Guinean

landowners being involved in small and medium-scale forest and

conservation work,'' Mr Brunton said.

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