Honouring concessions will lead to increased employment

Honouring concessions will lead to increased employment
Kaieteur News, 20 February 2007

As the export of logs continue to feature in national discussion and debates, closer attention is being focused on investors who receive concessions for value-added activities in the forest.

This notion was voiced recently by Agriculture Minister Robert Persaud,who stressed that investors are obligated to honour the conditions of their concessions.

“I am personally concerned about this matter and had cause to call in two such companies, Barama and Jialing ,” the Minister pointed out.

Following a meeting with the senior management of Jialing Forest Industries Inc. last November, the Minister said that the company derived a detailed implementation plan.

Persaud said that the plan outlined a progressive reduction in the percentage of foreign staff from 28.7 per cent in January 2007 to 18 per cent by April 2007; to 15 per cent by August and to 13 per cent by
December.

The company also outlined its commitment to start processing logs locally this year at 50 per cent of monthly production by February; 70 per cent by April; 80 per cent by July and 90 per cent by October.

Assurance was also given to construct a sawmilling and veneering plant at Port Kaituma by December, Persaud noted.

Similarly the senior management of Barama Company Limited submitted an implementation plan for this year regarding the Buck Hall complex, Persaud disclosed.

In that plan the Minister divulged that the company stated that during the period January to March it will install kiln drying facilities; a new pony saw and commence second shift sawmill operations.

Also, the construction of a workshop to start the dry dock activities and sizing of the co-generation plant will commence during this period,Persaud added.

The period April to June is likely to see the construction of the veneering building and the first barge along with the installation of the three megawatt co-generation plant and the finishing plant.

This, according to the Minister, will pave the way for the operation of the sawmill operation to be implemented and the installation and commissioning of the veneer plant, after which construction on the second barge will start.

As such, the expatriates to be employed over the period January to December this year will amount to 57 while local employment would be a minimum of 360, being equivalent to 86.3 per cent of staff, according to Persaud.

This figure will be increased by at least an additional 125 when the second and third shifts at the sawmill and veneer plant become effective, he added.