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PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

Foreign Firms Lose Forestry Board Rep - Now Maintain Moratorium

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Forest Networking a Project of Forests.org

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

http://forests.org/donate/ -- Support Forests.org's PNG campaign

12/31/00

OVERVIEW & COMMENTARY

Papua New Guinea's (PNG) forest sector is dominated by foreign

companies that export logs with little benefit, and many costs, to

the country. The World Bank has exercised its power derived from its

lending to compel the PNG government to push through some much needed

reforms - which were done with amendments to the Forestry Act in

early December. PNG's Forestry Board has been in desperate need of

reform. For the last few years expatriates representing the

interests of the multi-national log export companies have dominated

the proceedings of the Board. This has been addressed by removing

the Forestry Industries Association's position on the Board and by

limiting some positions to PNG citizens. The amendments also end the

Minister's abilitly to delegate the board's power to "any other

person". And in a huge step towards open government, the amendment

allows for board decisions, plans, maps, timber permits, licences,

and Forest Management Agreements to be made public. Previously these

were confidential and not released. Having assisted in developing

these conditions while working as a PNG forest specialist/consultant

for the Bank some time ago, it is gratifying to see a start to

implementing much needed reform.

Now the question is whether the World Bank intends to do more than

continue its decade+ effort to reform industrial logging, and push to

open up forest management to a greater variety of types, scales and

ownership. The litmus test in determining whether the Bank's actions

go beyond making minor reforms to keep the logs flowing will be

whether they hold strong on keeping the current moratorium on new

logging concessions in place. This was imposed as a condition of the

Bank's most recent and ongoing structural adjustment loan. The Bank

concurred with civil society's judgment that a moratorium on new

logging concessions was required to rein in the industry, and that a

review of the many proposed new projects was also necessary. Yet,

there are indications that the Bank may allow the moratorium to lapse

prior to the completion of the review and enactment of policy based

on its findings. This would be a grave mistake and represent the

loss of the last best chance to responsibly manage this nationally

and globally significant rainforest.

Another troublesome aspect of Bank policy is the failure to support

development of government policies to foster other types of forest

management. The entire forest allocation process - from listing

Forest Management Areas to tendering projects to the operation of the

Forest Authority - is biased towards large-scale intensive management

for log export by foreign companies. Any other forest use - be it

strict protection or community eco-forestry - is seen as a threat to

the system and is actively impeded. There is a desperate need to

lend legitimacy to the rapidly expanding local efforts to pursue

small and medium scaled certified and community based forest

management. Such efforts are many times more environmentally

sustainable and economically beneficial to communities than even the

best policed industrial forestry. The Bank is the only entity

capable of requiring development of a fair and consistent policy that

views all types of forest management as equally valid; and then

developing and implementing a forest policy, legislation, regulations

and guidelines for more ecologically sustainable, small to medium

scale, community based and certified forestry operations. Yet they

show no inclination to do so - having dropped plans to do so in a

follow on forestry project that is still to be approved and

implemented.

Forestry in Papua New Guinea is at a crossroads. While the reforms

the World Bank has advanced are welcome and a good start, they are

not enough. Essentially the majority of PNG's remaining commercially

valuable forests are being given over to industrial forestry. Some

30 new projects are in various aspects of approval, with many

questionable and corrupt activities occurring in their allocation.

The World's third largest rainforest wilderness is to be decimated.

If these forests are given over in their entirety to more status quo,

once over harvesting; the potential for a much more environmentally,

socially and economically sustainable forestry for the benefit of

generations to come will be lost. These forests will be lost forever

unless the World Bank insists that the existing moratorium be

maintained and support policy development for other types of forest

management. Failure to do so makes the recent minor reforms and

proposed forestry project meaningless-ensuring the same results of an

ecologically and economically reduced country.

NGOs and others concerned about forest conservation in PNG have given

the World Bank the benefit of the doubt for some time.

Conservationists have accepted continued industrial log exports

because of promises of Bank support for broadening forest management

opportunities. If the moratorium is not kept in place and support

given to alternative forest management activities, and efforts are

only upon again reforming export logging, the World Bank will have

lost their credibility. If the World Bank is unwilling to support

any forest management other than foreign log export, they will face a

renewed call for a log export ban and loss of support for their

forest sector initiatives in PNG. I guarantee it.

I call upon all PNG forest conservation groups and individuals to

make maintenance of the moratorium and support for government policy

for alternative forest management activities their emphasis; and

reappraise their support of the World Bank program if they fail to do

so also. Look for a major campaign to commence - with press releases

and action alerts to follow shortly on these matters. And your

donation < http://forests.org/donate/ > will strengthen our advocacy

on behalf of PNG's forests.

g.b.

Here is past coverage of elements of the Bank/PNG government forest

sector reform effort:

http://forests.org/archive/png/new/pngforde.htm

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RELAYED TEXT STARTS HERE:

Title: Foreign firms lose rep on Forestry Board

Source: Copyright 2000 The National (PNG)

Date: December 6, 2000

FOREIGN owned or controlled timber companies operating in the country

will no longer have a representative on the Forestry Board.

This is one of a number of changes to the composition of the Board

Parliament approved when it passed sweeping amendments to the

Forestry Act yesterday.

Forest Minister Michael Ogio described the amendment bill as one that

will improve transparency in dealings in the industry, and remove

potential for abuse by those in authority, like the Minister or

chairman of the board. Logging companies are represented by their

association the Forest Industries Association (FIA), which has a

representative on the Forestry Board.

Under the changes, this ex-officio position is no longer the FIA's

and is now made available to the PNG Chamber of Commerce and

Industry, whose representative nominated must not be a principal or

employee of a foreign owned or controlled company dealing in, trading

in or contracting in timber.

Expatriates on the board are also set to lose their positions. The

amendment provides that the representative of the President of the

Association of Foresters of PNG or his nominee to the board will now

only be a citizen of PNG.

The non-government organisation position on the board has also been

abolished and replaced with the President of the PNG Eco-Forestry

Forum, or his nominee, who must be a citizen of PNG.

A new position for women, especially in the rural areas has been

created on the board, with the representative appointed by the

National Executive Council from recommendations by the National

Council of Women.

In other changes to the board, the Secretary of Department of

Planning and Monitoring replaces the Treasury Secretary on the board,

while the chairmanship of the board is restricted to government

representatives other than the managing director of the National

Forest Service.

The amendments also remove the existing right of the Minister to

delegate the board's power to "any other person".

It also allows for board decisions, plans, maps, timber permits,

licences, and Forest Management Agreements to be placed on a public

register to be viewed and searched by members of the public.

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