FPA hosts special forum to review critical issues

FPA hosts special forum to review critical issues
Kaieteur News, 13 November 2007
The Forest Products Association recently held a special meeting to
review outstanding issues, examine the current state of the entity, and
to report on the Associations representations to government on issues
such as Log Export Policy which could impact adversely on the industry.
The venue was the Kings Plaza Hotel.

The forum was attended by a wide cross section of the industry
inclusive of major producers operating timber sales agreements, holders
of wood cutting leases and state forest permissions, small produces,
saw millers, timber dealers, lumber yards and sawpit operators.

According to a press release, discussions coming out of the meeting
also dealt with findings of the Association's Technical Sub-Committee
with regards to the government's recent introduction of new policies
and procedures for saw millers, sawpit operators and others.

The meeting endorsed the FPA's call upon government to take a balanced
approach towards the future development of the industry and to
recognize that sustainable trade of forestry products is achievable
only when there are a sufficient and readily available incentive to
modernize and expand the industry in response to real commercial export
and domestic demands.

A unanimous call was made for the Forestry Commission to consult more
closely with the Association as the industry's representative. In this
regard, concern was expressed that the industry is not represented on
the new Board of the Forestry Commission, while it was also noted that
many proposed charges were either not discussed, or implemented without
adequately consulting the industry.

Another issue addressed as reported, was the fact that the industry is
not represented on the new Board of the Forestry Commission.

At the meeting it was maintained that important issues like Guyana's
recent offer to place its forests at the disposal of the international
community for “the world's battle against climate change” was not
discussed with the country's stakeholders, especially the forest
industry, which, it was stressed, would impact on the livelihoods of
over 25,000 people dependent upon production of those forests.

Discussed at length and in detail were recent announcements by the
Minister of Agriculture to impose new procedures and policies for wood
processing standards to be implemented in 2008.

While acknowledging that timber grading rules for hardwoods had been
formulated since 1973, and most recently published in 2002, and
reviewed in 2005, the particpants noted that these rules are solely for
the purpose of grading the quality of the timber product for the
customer or market.

According to the FPA, the Forestry Commission is however, now seeking
to enforce standards and conditions for production governing a license
to operate which are compulsory and have an entirely different purpose
to the grading rules.

The Association indicated that the Commission in its publicized
consultations with the saw millers has delivered an ultimatum on an
achievable recovery rate of 75% in sawmilling and also the use of
bandsaw technology, which has nothing whatsoever to do with timber
grading rules.

There was also the firm opinion that grading, cutting, moisture content
and other related issues are determined by market forces, whereas
recovery rate is set by the products' sizes and quality, and most
importantly by the quality of log input which, in Guyana 's case, is a
hugely variable and unpredictable factor.

The report of the FPA's Technical Sub-Committee established to examine
the proposed Policies and Procedures and which was presented to and
endorsed by the Meeting, observed that many of these standards and
conditions presented by the Commission are wholly impractical, have
been introduced without sufficient technical research and consultation,
and, if enforced, will result in considerable confusion and dislocation
in the industry.

The FPA informed that the Forestry Commission has agreed to meet with
the its Technical Sub-Committee to examine its findings and
recommendation, but has, however so far postponed two scheduled
meetings.

The forum's participants resolved that the FPA make every effort to
persuade the GFC and the GGMC to establish a protocol to regulate the
coexistence of mining with timber production in forestry concessions
and recommended that the FPA approach the G&DMA to establish a common
and mutually agreeable position on the conflicting interests of the two
industries.

The meeting concluded with an appeal to all members of the forest
industry to join the FPA to strengthen the representative voice of the
industry.