Balanced approach to export policy

Prime Minister seeks balanced, practical approach to shaping wood products export policy
Forest producers, Forestry Commission still at loggerheads over log exports
Friday, February 23rd 2007

Prime Minister Samuel Hinds has told stakeholders in the country's forestry and wood products sectors that the industry needs to focus more on forging alliances both within and without Guyana if the country's timber industry is to move ahead.

In what appears to be a pointed attempt to quell a protracted row between forest producers and the Guyana Forestry Commission (GFC) over the country's log export policy the Prime Minister has strongly suggested that the industry adopt a balanced and practical approach to shaping a policy on log exports.

"We certainly don't have the markets in Guyana to which we could sell our wood products and therefore, partnerships, alliances with countries are essential. We wouldn't get anywhere with just selling our wood products to ourselves," the Prime Minister told the forum.

The Prime Minister's remarks coincide with what appears to be an increasingly futile lobby by local forest producers to forestall a phased ban on timber exports being recommended by the GFC. At last Saturday's consultative forum organized by the Ministry of Agriculture and the GFC forest producers urged that two options proposed by the GFC for the phased banning of logs be reviewed and that its own "third option," for the implementation of phased restrictions on log exports be seriously considered as a way forward in the shaping of a local log export policy.

At a meeting of members of the Guyana Forest Producers Association (FPA) held last Wednesday Stabroek Business was told of forest producers' fears that last Saturday's forum could be followed by major decisions on log exports that were likely to include a precipitate ban on the export of logs.

The FPA is claiming that last Saturday's forum, which they attended "under protest," took no account of its own proposal that with effect from 2009 the industry reduce exports by 50 per cent and, thereafter, by 10 per cent annually until a full restriction is realized. The FPA's proposal, which, a spokesman for the sector told Stabroek Business was submitted to the GFC last Friday, stipulates that logs retained on the local market be cleared for export in cases where supply exceeded local demand.

Despite meetings with Agriculture Minister Robert Persaud and other forestry sector officials prior to last Saturday's meeting forest producers were unable to have their proposal discussed at the forum. Instead, the forum discussed two options contained in a paper prepared by the GFC advocating phased bans on a wide range of logs. The GFC discussion paper also proposes complete bans on certain species of timber including locust and purpleheart.

FPA members are contending that the local timber sector lacks the milling capacity to process logs harvested locally and cite the Prime Minister's remarks made at last Saturday's forum as an indication that the GFC's advocacy on the banning of log exports is not universally shared in official circles.

Lobbyists for the wood products sector of the Guyana Manufacturers and Services Association (GMSA) have told Stabroek Business that the unrestricted export of logs is denying the local economy the value-added that can be accrued from the export of processed timber and manufactured wood products. The FPA points out, however, that even the GMSA, in its position paper on the sector, does not advocate an export ban on logs but, instead, recommends the imposition of a levy on log exports.

The FPA's concerns over procedural issues associated with Saturday's meeting were echoed by at least one other stakeholder representative. Stabroek Business was reliably informed that questions were not entertained on the log banning options put forward by the GFC and that the media were expelled from the forum by GFC officials.

The FPA says that its export restriction option will enable simpler log export monitoring by the GFC and will also allow time for existing run-down sawmills to secure capital to modernize processing equipment. FPA members reiterated that should government opt for a ban on the export of logs forest producers will be forced to reduce their operations, resulting in substantial labour displacement.

FPA members are at loggerheads with the GFC and some manufacturers over the capacity of the market to absorb locally produced timber even though Stabroek Business has been told that a local manufacturer has had to resort to importing timber because of the unavailability of supplies from local producers. FPA members contend, however, that the issue is one of price rather than availability and that local forest producers are entirely prepared to do business with the manufacturing sector if it is prepared to pay the prices that are paid on the export market. Local forest producers also say that manufacturers in the wood sector who have received forestry concessions should begin to exploit those concessions in order to guarantee their wood supplies.

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