Plywood mill closure due to Barama inaction

Minister Persaud declares…
Plywood mill closure due to Barama inaction
Guyana Chronicle news article, 07 December 2007
MINISTER of Agriculture, Mr. Robert Persaud has said that the “severe
supply shortfall of peeler logs” blamed for the closure of Barama
Company Limited (BCL) plywood mill, at Land of Canaan, East Bank
Demerara, is a direct consequence of inaction on its part.

In a statement yesterday, he said this was not disputed by the
management representatives who attended a meeting held, with Barama
Chairman, Mr. Girwar Lalaram, Chief Executive Officer, Mr. Peter Ho and
General Secretary of Guyana Labour Union (GLU), Mr. Carvil Duncan,
after the announcement.

Minister Persaud, who outlined a series of events leading up to the
latest development, said it is expected that BCL will significantly
increase the magnitude of operations in its own leased concession area,
beginning in 2008, as it is only utilising about 20 percent of its
allocated extraction level.

The statement said the Ministry expects that Barama will also review
its position and take a more compassionate stand regarding the future
of the Land of Canaan mill employees.

The Minister’s narrative said, in October 2007, BCL was given a cease
order to stop harvesting in some third party concessions because of
breaches of the Guyana Forestry Commission’s (GFC’s) procedures. It
continued: “Shortly afterward, the Ministry of Agriculture indicated,
in a press release, that, in the interest of the workers, it is
prepared to facilitate access to raw materials for the plywood factory,
but only as part of a transition process that will eliminate any
approved sub-contractual arrangement by December 3 2007.

“The GFC then requested BCL to send appropriate staff members to meet
with the GFC, in an effort to work out the conditions and logistics of
such an arrangement. To date, the GFC has had no positive response to
this request by BCL.

“As part of the Government’s social commitment, the GFC is still
willing to facilitate such a process, but in accordance with very
clearly defined conditions, which can only be arrived at on the basis
of meetings with the technical staff of GFC and BCL.

“It was later verified that BCL had committed additional breaches of
procedure in the forest concession leased to Guyana Sawmills Inc.
(GSM). GFC indicated that it would allow BCL to remove and utilise the
peeler species already harvested in GSM, on condition that BCL
formally communicate its commitment to pay the compensation, in
accordance with the GFC procedures. “This stipulation was necessary
because, once the logs were utilised, GFC would have no evidence in
the event that BCL refused to pay the necessary compensation. Despite
repeated requests by the GFC, BCL has sent no formal commitment. “GFC
has held several meetings with senior staff of BCL, to express concern
that the forest concession of 1,612,000 hectares was being
significantly under- utilised. The GFC mandated BCL to pursue
increased beneficial utilisation of the forest concession of 1,612,000
hectares within the GFC’s allowable limits.“BCL, at a meeting on
October 31, 2006, gave a commitment to increase the utilisation of the
area issued to it. Currently, BCL’s utilisation of its concession is
bout 20 per cent of its allowable harvest. For the period 1998-2006,
the total cumulative allowable production was 3,382,470 cubic metres,
or an annual allowable cut of 375,830 cubic metres.

“The actual production for the period 1998-2006 is 676,372 cubic
metres, or an annual average of 75,152 cubic metres. This corresponds
to a level of utilisation that is approximately 20 per cent. These
figures illustrate the point that BCL is under-utilising its
concession, even though it gave a commitment, in 2006, to improve
productivity in accordance with the limits established by the GFC.

“As a consequence, a substantial number of felled peeler logs are on
the ground in the concession leased to GSM. Another quantity of felled
peeler logs are also currently on the ground in a concession leased to
Toolsie Persaud Limited.

“The GFC has informed BCL that it can access these logs if certain
requirements are met,” the narrative ended.