Potential for Wrong Log Declarations--Need Independent Monitoring

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PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

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Forest Networking a Project of Ecological Enterprises

http://forests.org/ -- Forest Conservation Archives

http://forests.org/web/ -- Discuss Forest Conservation

6/18/99

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RELAYED TEXT STARTS HERE:

Title: PNG 'needs independent log monitoring system'

Source: The National

Date: June 18, 1999

Byline: LYDIA KAIA

PORT MORESBY: PNG needs an effective and independent log monitoring

system to ensure collection of all log export tax and landowner

premiums.

PNG Forest Authority managing director, Thomas Nen, said there was a

huge potential for log exporters to make wrong declarations on volumes

and species of logs and to transfer price and this must not be allowed

to happen.

Mr Nen said there was also a need for a complete review of the forest

revenue system taking into account the non-monetary and environmental

values of the forest resources to the landowners and the nation.

A tagging system for all exported log will be introduced to enable

auditing revenue trail, he said.

PNGFA has initially estimated a K2 levy on all log exports would be

required to fund the monitoring operation but with the continued slide

in the value of the kina, this could be higher.

Mr Nen also criticised recent advertisements by the Forest Industry

Association calling for consultation as "biased and self-serving".

He pointed to the FIA fixation on getting log export taxes reduced by

claiming that millions of kina and thousands of jobs in the processing

investments were at risk.

He said:" The Government has no taxes on processed timber and this

should be incentive enough for these people to go into domestic

processing."

Mr Nen rejected FIA's claim that the Government was trying to

undermine the forest industry.

He also said IRC had calculated VAT of 3 per cent and not 9 per cent

as stated by FIA.

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