Timber Industry: 'Freeze on new logging must go'

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PAPUA NEW GUINEA RAINFOREST/SUSTAINABLE DEVELOPMENT CAMPAIGN NEWS

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2/16/00

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Title: 'Freeze on new logging must go'

Source: The National

Date: February 15, 2000

A MEMBER of the National Forest Board has called on the Government to

lift the moratorium on all new forest projects in the country.

Michael Paisparea, who is the landowners' representative on board,

yesterday urged the National Executive Council to rescind its decision

to impose the moratorium, and called on landowners throughout the

country to support his call.

On Nov 9, 1999, the NEC slapped a ban on all new timber licenses,

extensions and conversions in compliance with the World Bank condition

of the structural reform program for 2000.

The moratorium is also a condition for the World Bank to release US$40

million to the PNG government for a proposed conservation and forestry

project over the next six years.

Mr Paisparea said the moratorium would adversely affect the lives of

people in the affected areas.

"While the intention of the World Bank to provide development loan to

PNG may be genuine, the approach, terms and conditions of such a loan

is somewhat dubious," he said.

"The World Bank seriously failed in its approach to consult with the

major players within the forestry sector, which included the national

forest service, the national forest board and the forest resource or

landowners, not to mention members of the forest industry

association."

As an industry, the forestry sector plays a significant role in the

development of PNG, especially in the rural areas where logging brings

goods and services to the people, he said.

Mr Paisparea urged the Government not to be dictated to by these

international financial institutions.

He said landowners would lobby with non-government organisations and

their respective members of Parliament to pressure the Government to

lift the moratorium.

An extreme option would be to shut all operations in the country,

which would see the Government lose K150 million in log export

revenue, he said.

The execution of the 14 new forest management agreement (FMA) projects

this year will see an additional direct foreign exchange income of

US$118 million in direct export tax over the next six years compared

to the US$40 million, which the World Bank is prepared to give in the

form of bank loan, he said.

"If the World Bank is sincere in assisting PNG, why can't the it

simply provide finance to the National Forest Service and other

Government institutions to pursue their development program instead of

imposing unnecessary conditions on the Government?

The forestry package by the World Bank is nothing more that a drive to

enforce the concept of conservation in PNG," he said.

"I appeal to all forestry resource owners and landowners to petition

your respective members of Parliament and to lobby with the various

NGOs throughout PNG to throw out this moratorium nonsense by the World

Bank," Mr Paisparea said.

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