***********************************************
WORLDWIDE
FOREST/BIODIVERSITY CAMPAIGN NEWS
Papua
New Guinea Log Export Tax Relief Discontinued
***********************************************
Forest
Networking a Project of Ecological Enterprises
http://forests.org/ -- Forest
Conservation Archives
http://forests.org/web/ -- Discuss Forest
Conservation
8/11/99
OVERVIEW
& COMMENTARY by EE
The new
Papua New Guinea government of Prime Minister Sir Mekere
Morauta
has moved swiftly to reinstate the government's log export
taxes. His predecessor had reduced taxes to 0% for
all logs, and
portions
of the value of logs, under K130. The
industry threatens
that
they will mothball operations and landowners will receive no
royalties. According to the ITTO's tropical timber
market report
(
http://www.itto.or.jp/market/recent/mns071699.html ) prices are
now at
$110 per cubic metre on average and stable--much higher than
industry
claims in the article below.
g.b.
*******************************
RELAYED
TEXT STARTS HERE:
Title: Loggers livid over tax
Source: Post Courier
Status: Copyright 1999, contact source for
permission to reprint
Date: August 11, 1999
THE
reinstatement of the log export taxes would effectively bring the
industry
to a halt, the Forest Industry Association said yesterday.
FIA
executive director Bob Tate said reinstatement of the taxes meant
loggers
would not be able to pay royalties to landowners.
Prime
Minister Sir Mekere Morauta yesterday said temporary relief was
granted
to the industry last year, but the basis for that had partly
subsided
with higher log prices and increased export volumes.
Sir
Mekere said the government expects to raise an extra K15 million
from
these taxes. However, Mr Tate said this was not likely to happen.
He said
reinstating the taxes would instead worsen the situation.
Mr Tate
said the expected log prices for the next six months was about
$US76 a
cubic metre, which is $US41 a cubic metre lower than prices in
late
1997.
``Landowners
who receive something in the order of K15 million per
year
will now get nothing. The reinstatement reduces investment in
sustainable
forest management and infrastructure development in rural
areas,''
Mr Tate said yesterday.
He said
a quick survey of the association's members showed that six
operators
had already indicated they might ``mothball'' their
operations
because of this.
###RELAYED
TEXT ENDS###
This
document is a PHOTOCOPY for educational, personal and non-
commercial
use only. Recipients should seek
permission from the
source
for reprinting. All efforts are made to
provide accurate,
timely
pieces; though ultimate responsibility for verifying all
information
rests with the reader. Check out our
Gaia Forest
Conservation
Archives at URL= http://forests.org/
Networked
by Ecological Enterprises, gbarry@forests.org