The Guyana Forestry Commission is crippling the forestry sector

The Guyana Forestry Commission is crippling the forestry sector
Kaieteur News, 26 January 2008

Dear Editor,
Over the past few years the forestry sector of Guyana, especially the
timber sector, has shown significant growth both in local and export
revenues. The export figure moved from US$ 42 million in 2004 to US$ 62
million in 2007. This growth has been championed by the established
timber companies in Guyana, many of which came into being before this
Government came into office. It should be noted that this present
Government failed to attract any new major investment into the forestry
sector. A number of companies that were issued concessions and other
benefits amid much fanfare and public relations gimmicks have all been
failures to date. These include Unamco, Jaling, Bai Shan Lin, Puruni
Woods, Garner Forest Industries and Timber Traders.
What is also now becoming seriously worrying is the abrasive and
threatening attitude of Minister Robert Persaud, under whose ministry
the forestry sector falls, when dealing with stakeholders. Stakeholders
are becoming increasingly frustrated that he is supporting the
inefficiency at the GFC rather than stepping in and making radical
changes. This is particularly worrying posturing of a person that
supposedly harbours Presidential ambitions and hope to someday lead
this nation. This could spell disaster for Guyana if and when it
happens. The forestry sector is one of the few growth areas that falls
under Minister Persaud’s portfolio. Most of the other areas he oversees
are failing: the sugar sector is collapsing and a new factory is being
built with no cane to feed it; the fisheries sector is declined
significantly; the Hydromet Unit cannot supervise building a radar
tower and doesn’t know the difference between 85 inches of rainfall or
24 inches of rainfall; the Minister and the privileged children of the
ruling dynasty have failed to even get noticed or make any progress for
this nation to benefit from our forests for climate change.
To give clarity to what is the current situation, it is already coming
to the end of January and no forestry operations sawmill or lumber
yards have been given permission to operate.
This is especially sad when most of these licences and permissions are
routine renewals.
As a result, production for the entire month of January is going to be
lost and there is no way it can be made up for in the remainder of the
year. The result would be that the forestry sector would show a decline
at the end of 2008.
The licencing and renewal process should have been completed since
November and December 2007 to permit prompt resumption of businesses in
2008.
This lateness of the process is a retrograde step for the GFC as this
was what the situation was in the 1980’s and early 1990’s prior to the
massive DFID led restructuring from 1996 - 2002 to make the GFC more
efficient.
However, most of those good managers that entered the system during
this restructuring process have since left and the current crop of
managers are seriously lacking in technical and managerial capabilities
to maintain and enhance the system put in place during the
restructuring process.
The management team of the GFC has never worked anywhere else in
management positions in their lives and it would be good if they can
publish their working experience to prove otherwise.
As a result, they are oblivious to the sufferings of the private
sector and the negative economic consequences their actions are having.
Their actions would result in companies having to layoff workers and
as a matter of fact, some companies have not yet asked some of their
employees to resume work for this year.
It should be noted that the forestry sector (based on GFC literature)
employs over 20,000 persons.
People in the depressed forestry dependent communities of Ituni and
Kwakwani are now suffering because of the actions of the GFC.
The GFC is busy trying to implement new rules and regulations for
forestry operators to comply with, utilizing the big stick method of
threats and intimidation fully aided by the Minister.
They have no idea of how their rules will work or the disastrous
consequences it will have on the sector.
It is now time that the President steps in and launch a full
investigation into the workings of the GFC and make radical changes.
His failure to act now will result in catastrophe for the sector.
Anthony Lim