Log export ban set to be imposed

Cutting logs for export

Forestry sector forum set to impose widespread log export ban
Loggers to attend forum "under protest"
Friday, February 16th 2007

Tomorrow's national consultation forum on the creation of a log export policy convened by the Ministry of Agriculture and the Guyana Forestry Commission (GFC) appears set to endorse sweeping recommendations contained in a discussion paper prepared by the GFC on the banning of log exports from Guyana. The GFC recommendation which has been the subject of discussion by a ministerial committee set up to address the issue of log exports and which will guide the deliberations at tomorrow's forum presents two options both of which advocate the imposition of widespread export bans on several species of timber harvested in Guyana. The first option recommends a full ban on fifteen species of local wood from March 1. Those species listed in the GFC paper include purpleheart, locust, crabwood, red cedar and bulletwood. The first ban option also advocates a ban on squares of a further twelve species of wood measuring 8"x8" and greater from January next year. Under the first banning option the GFC is also recommending the phased banning of twelve species of local timber including greenheart, brown silverballi, mora and wallaba. The phased log export ban on the twelve species envisages a 50 per cent ban in 2008, a 75 per cent ban in 2009 and a 100 per cent ban in 2010.

The second GFC option to be considered at tomorrow's meeting envisages a full ban on logs from fifteen local species - including purpleheart, locust, crab wood, red cedar and bulletwood - from January 2008 and the banning of squares measuring a minimum of 8"x8" in a further ten categories of timber commencing in 2009. The second option also envisages phased export bans on twelve categories, 50 per cent in 2008, 75 per cent in 2009 and 100 per cent in 2010. Staboek Business understands that tomorrow's forum, which will be held at the Regency Suite & Hotel is almost certain to endorse one of the options being proposed by the GFC.

Last week representatives of the Forest Producers Association (FPA) met to discuss tomorrow's forum after which FPA spokespersons told Stabroek Business that they were seeking a meeting with Agriculture Minister Robert Persaud to discuss the GFC recommendations. FPA members are opposed to the GFC recommendations and told this newspaper that they would attend tomorrow's meeting "under protest."

But local forestry expert Andrew Mendes who is a member of the wood products sector of the Guyana Manufacturers Association (GMA) told Stabroek Business that the local manufacturing sector supported the GFC's banning recommendation since the continued unchecked export of logs was robbing Guyana of valuable revenue that could otherwise be secured from finished wood product exports. Mendes said that the implementation of the GFC's ban recommendation could see a significant increase in financial returns from the forestry sector resulting from the export of dressed timber and finished wood products. Mendes told Stabroek Business that the "extreme options" outlined in the GFC's discussion paper had come after several years of serious revenue loss resulting from the unchecked export of logs.

Local forest producers have defended the continued export of logs on the grounds that there was insufficient local milling capacity to process logs into finished wood. However, Mendes dismissed this contention stating that during the 1970s and 1980s the sawmilling sector had been the recipient of a number of loans from the Canadian International Deve-lopment Agency (CIDA), GAIBANK, The European Investment Bank and the IDB to finance the recapitalization of the milling sector.

While local forest producers also say that the export bans could result in the loss of thousands of jobs in the forestry sector Mendes told Stabroek Business that this was no more than "an argument of convenience" since the loggers had been far less concerned about the job losses that had resulted from their closure of some sawmills and the scaling down of operations at others.

Under the GFC's log export ban recommendation only holders of timber sales agreements, wood cutting leases and state forest permits will be allowed to export logs and then, only from their own concessions. The discussion paper also recommends a complete revision of the existing system by 2012.

Mendes told Stabroek Business that while the move to curb log exports was a welcome development several other anomalies in the forestry sector remained to be addressed. He noted that 52 per cent of forest lands representing 69 per cent of the country's prime forests were under the control of four companies, Barama, Jialing, UNAMCO and Demerara Timbers Ltd. He said that any envisaged revision of the arrangements currently ob-taining in the forestry sector should include the redistribution of lands including a reversal of legally questionable subletting arrangements.