Sunday Chronicle, 18 February 2007
Chinese New Year:
Bound to be another fruitful year
-- Ambassador Zhang Jungao
New Year message from Mr. Zhang Jungao, Ambassador of the People’s
Republic of China to the Republic of Guyana
TIME flies. The Chinese New Year is almost upon us again.
New Year is a time for universal joy and good wishes. In China, people
will rush back home for family reunion no matter where they are.
Friends and neighbours will exchange good wishes for the coming year
whenever they meet.
Here, I would like to take this opportunity to extend my best wishes to
all Chinese in Guyana for a happy Spring Festival and a prosperous New
Year. I would like to extend my best wishes to Guyana for a rapid
economic development and substantial improvement of people’s living
standards in the coming year.
It is also a time to bid farewell to the old year and welcome the new
year. It is a time for many to take stock of the past year and make
plans for the new year.
Last year saw the continued development of friendly relations and the
further deepening of the economic cooperation between China and Guyana.
The Guyana International Conference Centre will be completed and handed
over to the Guyanese Government. The seventh batch of medical personnel
has arrived and started their service.
The Skeldon Sugar Factory Modernisation Project began construction and
is now in a full-fledged period. Last year also saw a breakthrough of
cooperation between the private sectors of both countries in promoting
the economic development in Guyana spearheaded by Bosai and Bai Shan
Lin. Last year was a fruitful year in the history of the friendly
relations between China and Guyana.
The new year will be the 35th anniversary of the establishment of
diplomatic relations between our two countries. It is an auspicious
moment to further strengthen our cordial relations and translate it
into broader cooperation. We will host a big celebration to mark the
35th anniversary of the establishment of the diplomatic relations. We
will promote the high level friendly visits and broaden the exchanges
between our two peoples. We will further strengthen the cooperation and
coordination in international affairs between our two governments.
We will witness the completion of construction of the Skeldon Sugar
Factory. We will also welcome the arrival of the first Chinese
volunteers and geologists. The new year is bound to be another fruitful
year.
Finally, let us join together in wishing the flower of Sino-Guyana
friendship full blossom in the new year.
Chronicle
Tuesday, February 20, 2007
Monday, February 19, 2007
The many problems of Kwakani
The authorities are not dealing with the many problems at Kwakwani
Monday, February 19th 2007
Dear Editor,
The residents of Kwawani need to start questioning their leaders about decisions and representations they are making on their behalf.
The situation in our community of just about 5000 residents is getting from bad to worse and there seems to be no solution to reverse the decline. Someone needs to say enough is enough and get the little czars to work together for the overall benefit of the community.
There are some of us who are able and willing to work with what and who is available to bring about a positive change but the czars will not allow us. They prefer to hold steadfast to their throne and watch the kingdom fall
There are groups/organization established to work towards improving conditions for residents but something is just not adding up. There seems not to be a solution for the most basic problems that pop up. .
We have teachers who are in our community to teach our children living in a hostel with water barely running and only one out of four toilets working. How can this be happening when in days gone by the leaders were able to build a hostel by self-help and a Secondary School by paying a dollar a week. How can our leaders, the PTA's and the region allow this problem to remain for over one year?
We have two swimming pools not functioning for over fifteen years and would chase experts when they try to do an assessment to rehabilitate them, because they did not speak to one of the czars.
The Bauxite Company is giving to the Community $100.000 per month to assist with development. This fund is channeled through a group controlled by one of the czars but after 10 months, not a coin can be spent on any project.
The Forestry Commission is collecting a minimum of $35,000.00 per month from the Forestry Group to be used for Community Projects, but other than erection of a canopy for the Kwakwani Primary School, nothing else is there to show. The idea of injecting funds to communities by way of commission got its genesis in Kwakwani but I am sure all of the other communities can show the progress they are making from this fund.
Since 2002 President Jagdeo promised funding to rebuild a recreational facility if the community can only agree on a single plan, five years after we still cannot agree on a plan. We can take a lesson from Christianburg in Linden which had similar problems with a recreation facility because Kwakwani needed a proper NDC office, a building to house the Pre- School and Day Care, a proper hall for indoor Games and Conferences, change rooms for teams and a pavilion for cricket and football. All of the foregoing are needed by this Community and can be housed under one roof.
Funding can be acquired through the President's Youth Choice Initiative, the Ministry of Local Government, the Forestry Commission and the Bauxite Company.
The big question is will the czars allow this.
It will grieve the soul of the former leaders of this once beautiful park to see the state of the community and what passes for leadership.
All is not lost yet, the residents must start demanding that the czars give an account of their stewardship.
Yours faithfully,
Jocelyn Morian
StabroekNews
Monday, February 19th 2007
Dear Editor,
The residents of Kwawani need to start questioning their leaders about decisions and representations they are making on their behalf.
The situation in our community of just about 5000 residents is getting from bad to worse and there seems to be no solution to reverse the decline. Someone needs to say enough is enough and get the little czars to work together for the overall benefit of the community.
There are some of us who are able and willing to work with what and who is available to bring about a positive change but the czars will not allow us. They prefer to hold steadfast to their throne and watch the kingdom fall
There are groups/organization established to work towards improving conditions for residents but something is just not adding up. There seems not to be a solution for the most basic problems that pop up. .
We have teachers who are in our community to teach our children living in a hostel with water barely running and only one out of four toilets working. How can this be happening when in days gone by the leaders were able to build a hostel by self-help and a Secondary School by paying a dollar a week. How can our leaders, the PTA's and the region allow this problem to remain for over one year?
We have two swimming pools not functioning for over fifteen years and would chase experts when they try to do an assessment to rehabilitate them, because they did not speak to one of the czars.
The Bauxite Company is giving to the Community $100.000 per month to assist with development. This fund is channeled through a group controlled by one of the czars but after 10 months, not a coin can be spent on any project.
The Forestry Commission is collecting a minimum of $35,000.00 per month from the Forestry Group to be used for Community Projects, but other than erection of a canopy for the Kwakwani Primary School, nothing else is there to show. The idea of injecting funds to communities by way of commission got its genesis in Kwakwani but I am sure all of the other communities can show the progress they are making from this fund.
Since 2002 President Jagdeo promised funding to rebuild a recreational facility if the community can only agree on a single plan, five years after we still cannot agree on a plan. We can take a lesson from Christianburg in Linden which had similar problems with a recreation facility because Kwakwani needed a proper NDC office, a building to house the Pre- School and Day Care, a proper hall for indoor Games and Conferences, change rooms for teams and a pavilion for cricket and football. All of the foregoing are needed by this Community and can be housed under one roof.
Funding can be acquired through the President's Youth Choice Initiative, the Ministry of Local Government, the Forestry Commission and the Bauxite Company.
The big question is will the czars allow this.
It will grieve the soul of the former leaders of this once beautiful park to see the state of the community and what passes for leadership.
All is not lost yet, the residents must start demanding that the czars give an account of their stewardship.
Yours faithfully,
Jocelyn Morian
StabroekNews
The authorities are not dealing with the many problems at Kwakwani
Options tabled to ban log exports
By Chamanlall Naipaul
Guyana Chronicle, 18 February 2007
GUYANA’S policy with respect to the export of logs, which has recently become contentious, is expected to be defined shortly following a public consultation yesterday with officials and other stakeholders in the forestry industry.
At the session at the Regency Hotel on Hadfield Street, Georgetown, Commissioner of Forests, Mr. James Singh presented a comprehensive paper for discussion which provided information on the state of the local forestry sector versus the international situation.
He pointed out that several countries have either severely restricted the export of logs or have entirely banned exports, and said that from the consultative process established through a ministerial committee, options for Guyana have been put forward for discussions and eventual
adoption and formulation of an export policy with respect to logs.
According to Singh, option one proposes a ban of 15 species of logs from March 1, 2007, while option two proposes that a ban of exports be imposed from January 2008.
The advantage of option one, the Commissioner said, is that it will help boost value-added production during this year, while the disadvantage is that it provides for a limited time for transition by forest producers.
In relation to option two, Singh said the advantage is that it caters for a transition period of at least eight months, but the disadvantage is that the trend of log export may continue during this year, especially for the prime species.
Over all, he noted that had a ban/restriction on the export of logs been implemented, it would have had a positive impact on export revenue, the Gross Domestic Product (GDP) of the forestry sector, value-added forest production, creation of more job opportunities and an additional US$9M earned in export earnings, if the logs exported in 2006 had been converted into lumber.
In addition, the Commissioner revealed that the total log production in 2006 was 380,000 cubic metres which represents only 55% of local milling capacity.
Prime Minister Samuel Hinds, who delivered a presentation at the forum, said the way forward within the forestry sector is through forging collaboration, alliances and partnerships among stakeholders.
He noted too that external alliances have to be sought to push exports of forestry products because Guyana has a small market.
Mr. Hinds cautioned that the quarrels among stakeholders cause them to lose sight of the changes taking place in the marketplace, and one challenge they face is bringing down the cost of production to be able to compete with other countries.
A dilemma faced in light of a ban/restriction of logs is whether the local downstream processing capacity could grow fast enough to accommodate this situation, and if this growth does not happen then it could trigger problems for the sector, he said.
As such, he urged local producers to move in the direction of specialisation, and suggested that the Forest Products Marketing Council (FPMC) could be a mediator in the problems involving the stakeholders in the forestry sector.
Rebutting the contention by some that the exports of forestry products grew last year due to the increased exportation of logs, the Prime Minister said while the exports increased by 11% in volume, in terms of value it rose by 42%. He argued that therefore means that this increase
could not have come from export of logs alone.
Agriculture Minister, Mr. Robert Persaud voiced concerns about investors being granted concessions for value-added production as he had cause to call in two such companies - Barama and Jaling.
However, he said following meetings with the senior management of these companies, he has since been presented with implementation plans by them.
With respect to Jaling, the minister said the company assured that processing of logs would progressively increase to 90% by this year, while a commitment has been made to construct a sawmilling and veneering plant at Port Kaituma by the end of this year.
In addition, there will be a progressive decrease of foreign staff from 28.7% to 185 by April of this year and by the end of this year this figure should reach 13%, he said.
Persaud reported that Barama plans to install kiln drying facilities, a new pony saw and construct a workshop to start the dry dock activities and a co-generation plant by the end of next month.
By June of this year, the company expects to start the construction of a veneering building, its first barge and installation of a three-megawatt co-generation plant and installation of a finishing plant, while by September this year the third shift sawmill operation should be implemented, the installation of and commissioning of the veneer plant completed and the construction of the third barge started, the minister said.
With respect to the ratio of foreign and local employees, Persaud said by the end of this year the number of expatriates should be 57 while locals should reach a minimum of 360.
He added that monitoring of the implementation of these plans has already begun by the Guyana Forestry Commission (GFC).
“In our deliberations today, we need to examine the practice within the context of our long term objective of enhancing economic, social and ecological benefits through sustainable forest management, while at the same time being cognisant of the realities of the sector. As
practitioners, you would be all too familiar with the challenges of the availability and cost of timber production, transformation and transportation coupled with the technological ability to produce to specification,” Persaud declared.
He added: “Clearly, there is a need to articulate a policy position based on sustaining growth while at the same time arriving at a consensus position on short, medium and long term actions to expand the benefits that stream from forest industries.”
President of the Forest Products Association (FPA), Mr. David Persaud, alluding to the potential of the forestry sector to contribute to the national economy, said that for last year, earnings from export of forestry products surpassed those of rice, and it was something that the forestry industry was working on for some time.
He also appealed for greater financial incentives for retooling and modernisation of the local forestry sector to make it more competitive.
President of the Guyana Manufacturers and Services Association (GMSA), Mr. George Robinson said that because of concerns about the inadequacy of raw materials for those involved in the manufacturing sector, along with some other irritants, his association wrote President Bharrat
Jagdeo to meet him.
While they were not successful in having a forum with him they are grateful to having such a forum to have their concerns dealt with, he said.
Chairman of the GFC Board, Mr. Tarachand Balgobin stressed that the aim with respect to the forestry industry is not to only increase its contribution to the GDP but also to increase employment opportunities, production and productivity and enhance the welfare of people.
He said that to heighten the efficiency of the forestry sector, new forestry legislation and revenue structure are imminent.
Link
By Chamanlall Naipaul
Guyana Chronicle, 18 February 2007
GUYANA’S policy with respect to the export of logs, which has recently become contentious, is expected to be defined shortly following a public consultation yesterday with officials and other stakeholders in the forestry industry.
At the session at the Regency Hotel on Hadfield Street, Georgetown, Commissioner of Forests, Mr. James Singh presented a comprehensive paper for discussion which provided information on the state of the local forestry sector versus the international situation.
He pointed out that several countries have either severely restricted the export of logs or have entirely banned exports, and said that from the consultative process established through a ministerial committee, options for Guyana have been put forward for discussions and eventual
adoption and formulation of an export policy with respect to logs.
According to Singh, option one proposes a ban of 15 species of logs from March 1, 2007, while option two proposes that a ban of exports be imposed from January 2008.
The advantage of option one, the Commissioner said, is that it will help boost value-added production during this year, while the disadvantage is that it provides for a limited time for transition by forest producers.
In relation to option two, Singh said the advantage is that it caters for a transition period of at least eight months, but the disadvantage is that the trend of log export may continue during this year, especially for the prime species.
Over all, he noted that had a ban/restriction on the export of logs been implemented, it would have had a positive impact on export revenue, the Gross Domestic Product (GDP) of the forestry sector, value-added forest production, creation of more job opportunities and an additional US$9M earned in export earnings, if the logs exported in 2006 had been converted into lumber.
In addition, the Commissioner revealed that the total log production in 2006 was 380,000 cubic metres which represents only 55% of local milling capacity.
Prime Minister Samuel Hinds, who delivered a presentation at the forum, said the way forward within the forestry sector is through forging collaboration, alliances and partnerships among stakeholders.
He noted too that external alliances have to be sought to push exports of forestry products because Guyana has a small market.
Mr. Hinds cautioned that the quarrels among stakeholders cause them to lose sight of the changes taking place in the marketplace, and one challenge they face is bringing down the cost of production to be able to compete with other countries.
A dilemma faced in light of a ban/restriction of logs is whether the local downstream processing capacity could grow fast enough to accommodate this situation, and if this growth does not happen then it could trigger problems for the sector, he said.
As such, he urged local producers to move in the direction of specialisation, and suggested that the Forest Products Marketing Council (FPMC) could be a mediator in the problems involving the stakeholders in the forestry sector.
Rebutting the contention by some that the exports of forestry products grew last year due to the increased exportation of logs, the Prime Minister said while the exports increased by 11% in volume, in terms of value it rose by 42%. He argued that therefore means that this increase
could not have come from export of logs alone.
Agriculture Minister, Mr. Robert Persaud voiced concerns about investors being granted concessions for value-added production as he had cause to call in two such companies - Barama and Jaling.
However, he said following meetings with the senior management of these companies, he has since been presented with implementation plans by them.
With respect to Jaling, the minister said the company assured that processing of logs would progressively increase to 90% by this year, while a commitment has been made to construct a sawmilling and veneering plant at Port Kaituma by the end of this year.
In addition, there will be a progressive decrease of foreign staff from 28.7% to 185 by April of this year and by the end of this year this figure should reach 13%, he said.
Persaud reported that Barama plans to install kiln drying facilities, a new pony saw and construct a workshop to start the dry dock activities and a co-generation plant by the end of next month.
By June of this year, the company expects to start the construction of a veneering building, its first barge and installation of a three-megawatt co-generation plant and installation of a finishing plant, while by September this year the third shift sawmill operation should be implemented, the installation of and commissioning of the veneer plant completed and the construction of the third barge started, the minister said.
With respect to the ratio of foreign and local employees, Persaud said by the end of this year the number of expatriates should be 57 while locals should reach a minimum of 360.
He added that monitoring of the implementation of these plans has already begun by the Guyana Forestry Commission (GFC).
“In our deliberations today, we need to examine the practice within the context of our long term objective of enhancing economic, social and ecological benefits through sustainable forest management, while at the same time being cognisant of the realities of the sector. As
practitioners, you would be all too familiar with the challenges of the availability and cost of timber production, transformation and transportation coupled with the technological ability to produce to specification,” Persaud declared.
He added: “Clearly, there is a need to articulate a policy position based on sustaining growth while at the same time arriving at a consensus position on short, medium and long term actions to expand the benefits that stream from forest industries.”
President of the Forest Products Association (FPA), Mr. David Persaud, alluding to the potential of the forestry sector to contribute to the national economy, said that for last year, earnings from export of forestry products surpassed those of rice, and it was something that the forestry industry was working on for some time.
He also appealed for greater financial incentives for retooling and modernisation of the local forestry sector to make it more competitive.
President of the Guyana Manufacturers and Services Association (GMSA), Mr. George Robinson said that because of concerns about the inadequacy of raw materials for those involved in the manufacturing sector, along with some other irritants, his association wrote President Bharrat
Jagdeo to meet him.
While they were not successful in having a forum with him they are grateful to having such a forum to have their concerns dealt with, he said.
Chairman of the GFC Board, Mr. Tarachand Balgobin stressed that the aim with respect to the forestry industry is not to only increase its contribution to the GDP but also to increase employment opportunities, production and productivity and enhance the welfare of people.
He said that to heighten the efficiency of the forestry sector, new forestry legislation and revenue structure are imminent.
Link
Mrs Jagan's views dismissed direspectfully
Mrs Jagan's views should not be dismissed so disrespectfully
Sunday, February 18th 2007
Dear Editor,
In 1985 when the late President Hugh Desmond Hoyte took control of Guyana, there was a massive turn around of everything that was inherited from the "Founder Leader", President Linden Forbes Sampson Burnham.
Almost every policy President Burnham had implemented, the Hon. President Hoyte reversed. The daylight saving time was removed. How can this ever have worked with Guyana lying on the equator? He re-introduced wheat flour; freed up the economy; allowed foreign currency to flow freely, legally; stabilized the dollar at 125 to 1 US for the last two years in office; legalized banned food stuff and privatized ailing government entities. The list is longer.
In 1992 when the Hon. Dr. Cheddi Jagan acceded to the Presidency, his campaign promise was consultation, transparency, accountability, and all the right words that are associated with a true democracy. This great honourable man that once lived and walked among us, had made us realize dreams others can only dream of. But today it all seems to be coming to a slow end.
Taken from Stabroek News, dated Jan. 4th, 2007, "Commissioner of Forests James Singh is maintaining that a shipment of logs which left Guyana in December on the vessel 'Rong Cheng' met all of the regulatory body's requirements for export and that the body is not under any obligation to provide requested details". Is this what Dr. J would have told his people when they make a query on something as important as this? Is this the reverse from transparency?
The article went on to state the Guyana Forestry Commission (GFC) stated no Customs or GFC official has to be present every minute of the loading. Are these people serious? Logs were filled with illegal drugs a short while ago and exported.
Also, where do the officials go when they are not around "every minute". We can see from this incident why things are not done correctly. Accountability is truly lacking. This behaviour should not be condoned and accepted as normal behaviour.
Our current parliamentarians met with local organizations that are concerned with legalizing casino gambling. It was shocking to note some of them telling our religious organizations they have no business in government affairs. Even before the religious organizations can speak on these issues, they were told in no uncertain manner, no matter what they oppose, the bill will be going through.
Is this not a mockery of our consultation process?
First Lady, first female minister of Guyana, first female president of Guyana, and the first American woman to become president, the Hon. President Janet Jagan gave her honest opinion implying she would prefer the Government not to blacklist Stabroek News or any other newspaper on the ads issue. Herself and husband lived through hard times when they were denied newsprint for The Mirror newspaper and can relive the terrible memories of yesteryear.
She was told in a manner that sounded disrespectful that her comments were just those of a private citizen. Private citizen? This is no ordinary private citizen. This stalwart of an individual laid her life on the line so that our nation can enjoy freedom that seems to be frizzling before our eyes. Her words have lots of weight and meaning, and yes, if she implies Stabroek News should not be penalized for having a smaller readership, then maybe it is something that should be considered.
Again Dr. J always looked out for the small man. He said a small man should become a real man. I have my doubts whether he would have agreed with this happening. I cannot fathom him coming up with plans to stifle small businesses.
Some people like myself and others did suggest an audit be taken of the readers circulation, and it be rated percentage wise. But a newspaper should not suffer because its circulation does not reach heaven.
President Janet Jagan deserves much more than for others to be dismissing her comments as casual conversation. Are we heading for a U turn with no return? I would hope not. Too much is at stake.
Yours faithfully,
Mubarak Kazan
StabroekNews
Sunday, February 18th 2007
Dear Editor,
In 1985 when the late President Hugh Desmond Hoyte took control of Guyana, there was a massive turn around of everything that was inherited from the "Founder Leader", President Linden Forbes Sampson Burnham.
Almost every policy President Burnham had implemented, the Hon. President Hoyte reversed. The daylight saving time was removed. How can this ever have worked with Guyana lying on the equator? He re-introduced wheat flour; freed up the economy; allowed foreign currency to flow freely, legally; stabilized the dollar at 125 to 1 US for the last two years in office; legalized banned food stuff and privatized ailing government entities. The list is longer.
In 1992 when the Hon. Dr. Cheddi Jagan acceded to the Presidency, his campaign promise was consultation, transparency, accountability, and all the right words that are associated with a true democracy. This great honourable man that once lived and walked among us, had made us realize dreams others can only dream of. But today it all seems to be coming to a slow end.
Taken from Stabroek News, dated Jan. 4th, 2007, "Commissioner of Forests James Singh is maintaining that a shipment of logs which left Guyana in December on the vessel 'Rong Cheng' met all of the regulatory body's requirements for export and that the body is not under any obligation to provide requested details". Is this what Dr. J would have told his people when they make a query on something as important as this? Is this the reverse from transparency?
The article went on to state the Guyana Forestry Commission (GFC) stated no Customs or GFC official has to be present every minute of the loading. Are these people serious? Logs were filled with illegal drugs a short while ago and exported.
Also, where do the officials go when they are not around "every minute". We can see from this incident why things are not done correctly. Accountability is truly lacking. This behaviour should not be condoned and accepted as normal behaviour.
Our current parliamentarians met with local organizations that are concerned with legalizing casino gambling. It was shocking to note some of them telling our religious organizations they have no business in government affairs. Even before the religious organizations can speak on these issues, they were told in no uncertain manner, no matter what they oppose, the bill will be going through.
Is this not a mockery of our consultation process?
First Lady, first female minister of Guyana, first female president of Guyana, and the first American woman to become president, the Hon. President Janet Jagan gave her honest opinion implying she would prefer the Government not to blacklist Stabroek News or any other newspaper on the ads issue. Herself and husband lived through hard times when they were denied newsprint for The Mirror newspaper and can relive the terrible memories of yesteryear.
She was told in a manner that sounded disrespectful that her comments were just those of a private citizen. Private citizen? This is no ordinary private citizen. This stalwart of an individual laid her life on the line so that our nation can enjoy freedom that seems to be frizzling before our eyes. Her words have lots of weight and meaning, and yes, if she implies Stabroek News should not be penalized for having a smaller readership, then maybe it is something that should be considered.
Again Dr. J always looked out for the small man. He said a small man should become a real man. I have my doubts whether he would have agreed with this happening. I cannot fathom him coming up with plans to stifle small businesses.
Some people like myself and others did suggest an audit be taken of the readers circulation, and it be rated percentage wise. But a newspaper should not suffer because its circulation does not reach heaven.
President Janet Jagan deserves much more than for others to be dismissing her comments as casual conversation. Are we heading for a U turn with no return? I would hope not. Too much is at stake.
Yours faithfully,
Mubarak Kazan
StabroekNews
Global Timber Website modified
GuyanaGuyana, one of the most corrupt countries in Latin America, is noted especially for links to the illegal drug trade. Guyana has a particuIar reputation for money laundering and, given that trade in timber accounts for most Guyana's official export earnings, it is likely that at least some of that trade is associated with money laundering.
The unit prices cited in the ITTO's fortnightly "Tropical Timber Market Report" indicate that the difference between the unit prices for Guyana's log exports are remarkably small relative to unit prices for equivalent products exported from other producer countries. The difference might well be attributable to transfer pricing fraud. Given that, during 2005, logs account for almost all India's (and half of China's) timber imports from Guyana, and that India and China (primarily India) account for more than half of Guyana's log exports, India and China may well be complicit in such fraud. The loss of export revenue attributable to transfer pricing fraud might amount to US$ 10mi during 2005. That amount represents some 2% of Guyana's export revenue (of US$ 500 million, roughly half of which was then attributable to gold, diamonds and sugar, and a further 10% to timber).
One might expect that such a large percentage in lost revenue would prompt donors to at least claim to be applying effective pressure on the government of Guyana to substantially reduce those losses.
Logs, sawn wood, and plywood accounted for approximately 40%, 30%, and 20% of the RWE volume of Guyana's timber exports during 2005.
The lower of the two charts above, which covers only some of Guyana's timber exports, indicates the extent to which China's imports of logs have surged during 2006 - giving rise to much of the current concern about transfer pricing and illegality. It also demonstrates that some of Barama's efforts to gain FSC certification might have been motivated by a desire to increase sales to the USA - Barama's exports to the USA having halved during the first five years of this decade.
During early 2006, Guyana's largest timber enterprise, Barama, received an FSC certificate pertaining to the management of 570,000ha (i.e. less than one third of the area) of its forest concessions. This FSC certificate was withdrawn later in 2006 after it became apparent that Barama had failed to comply with improvements required to maintain that certificate. This tends to confirm Barama's illrepute - which includes alleged economic crime (concerning transfer pricing fraud and the granting of the very lage area of its forest concessions and its generous tax treatment), failure to respect the rights of workers and indigenous people, and procuring wood from dubious sources. Barama - owned jointly by Samling (a controversial subsidiary of Lingui Developments from Sarawak) and Sunkyong (a major conglomerate from Korea) - is in effect the sole producer of plywood in Guyana.
Most of its key workers and labourers are ethnic chinese - some of whom are said be indentured to gangs from China (to repay debts or to emigrate from China) - fuelling resentment within Guyana. FSC certification would greatly help overcome these negative perceptions - which depress the price of the plywood (and other timber products) which importers procure via Barama.
The ten days of focus by the international media during the six World Cup cricket matches to be played in Guyana during March/April 2007 would offer an excellent platform for Barama to announce that it would make sincere efforts to FSC-certify its forest concessions.
India's role as a destination for Guyana's illegal exports of logs will be particularly poignant on 7th April - when India plays its World Cup cricket match in Guyana.
Guyana's second largest timber company, Demerara Timbers, is said to be owned the Prime Group of Singapore - which might be a shell company and which is related to owners of the notorious Rimbunan Hiijau.
http://www.globaltimber.org.uk/guyana.htm
The unit prices cited in the ITTO's fortnightly "Tropical Timber Market Report" indicate that the difference between the unit prices for Guyana's log exports are remarkably small relative to unit prices for equivalent products exported from other producer countries. The difference might well be attributable to transfer pricing fraud. Given that, during 2005, logs account for almost all India's (and half of China's) timber imports from Guyana, and that India and China (primarily India) account for more than half of Guyana's log exports, India and China may well be complicit in such fraud. The loss of export revenue attributable to transfer pricing fraud might amount to US$ 10mi during 2005. That amount represents some 2% of Guyana's export revenue (of US$ 500 million, roughly half of which was then attributable to gold, diamonds and sugar, and a further 10% to timber).
One might expect that such a large percentage in lost revenue would prompt donors to at least claim to be applying effective pressure on the government of Guyana to substantially reduce those losses.
Logs, sawn wood, and plywood accounted for approximately 40%, 30%, and 20% of the RWE volume of Guyana's timber exports during 2005.
The lower of the two charts above, which covers only some of Guyana's timber exports, indicates the extent to which China's imports of logs have surged during 2006 - giving rise to much of the current concern about transfer pricing and illegality. It also demonstrates that some of Barama's efforts to gain FSC certification might have been motivated by a desire to increase sales to the USA - Barama's exports to the USA having halved during the first five years of this decade.
During early 2006, Guyana's largest timber enterprise, Barama, received an FSC certificate pertaining to the management of 570,000ha (i.e. less than one third of the area) of its forest concessions. This FSC certificate was withdrawn later in 2006 after it became apparent that Barama had failed to comply with improvements required to maintain that certificate. This tends to confirm Barama's illrepute - which includes alleged economic crime (concerning transfer pricing fraud and the granting of the very lage area of its forest concessions and its generous tax treatment), failure to respect the rights of workers and indigenous people, and procuring wood from dubious sources. Barama - owned jointly by Samling (a controversial subsidiary of Lingui Developments from Sarawak) and Sunkyong (a major conglomerate from Korea) - is in effect the sole producer of plywood in Guyana.
Most of its key workers and labourers are ethnic chinese - some of whom are said be indentured to gangs from China (to repay debts or to emigrate from China) - fuelling resentment within Guyana. FSC certification would greatly help overcome these negative perceptions - which depress the price of the plywood (and other timber products) which importers procure via Barama.
The ten days of focus by the international media during the six World Cup cricket matches to be played in Guyana during March/April 2007 would offer an excellent platform for Barama to announce that it would make sincere efforts to FSC-certify its forest concessions.
India's role as a destination for Guyana's illegal exports of logs will be particularly poignant on 7th April - when India plays its World Cup cricket match in Guyana.
Guyana's second largest timber company, Demerara Timbers, is said to be owned the Prime Group of Singapore - which might be a shell company and which is related to owners of the notorious Rimbunan Hiijau.
http://www.globaltimber.org.uk/guyana.htm
Sunday, February 18, 2007
Uncontrolled logging leaves bald and bare patches.
Guyana and the wider world Part 3
Guyana and the wider worldGuyana's Poverty Reduction Strategy Programme (PRSP) and the forestry sector (Part 3)
By Janette Bulkan
Sunday Stabroek
February 18th 2007
This week's column resumes the discussion of employment in the forestry
sector against the fourth cause singled out by Guyana's Poverty
Reduc-tion Strategy Programme (PRSP) as responsible for persistent
poverty: "deterioration in the quantum and quality of social services"
(PRSP 2001, p. 7). Here I look especially at employment of Guyanese in
foreign-owned forest sector enterprises. This analysis is undertaken in
the context of the question: Why is there persistent poverty in the
interior alongside the parcelling out of Guyana's best endowed forests
in large-scale forestry concessions?
The official statistics on employment in the forestry sector are out of
date and/or not disaggregated. The 1997/1998 Labour Force Survey lists
50,737 persons (Males 41,982; Females 8,755) as employed in
'Agro-Forestry,' which in that survey denotes 'agriculture' and
'forestry' as separate activities. The 2002/2003 census lists a total
of 3,746 persons employed in 'Forestry, Logging and Related Services,'
and 42,069 in 'Agriculture, Hunting and Related Services.' These
official surveys suggest that full-time employment in the sector is
low, which is not surprising given the low rates of pay, lack of
contracts, job security, training opportunities and poor working
conditions outlined in last week's column.
A common theme in the diaspora is the exploitation, poor remuneration
and disrespect shown to Guyanese who lack 'papers' (legal
documentation), recognized skills certification, work experience
abroad, or union or other representation. Forty years after
Independence, Guyanese workers in the forestry sector suffer the same
fate: as disrespected at home as are undocumented Guyanese abroad.
The Guyana Forestry Commission (GFC) estimates that the forestry sector
provides employment to about 15,000 persons, the majority in the
small-scale sector. The small-scale forestry sector, allocated only
one-fifth of the commercial forests, (and the most worked-over and
worked-out forests) provides 75 per cent of forestry sector employment
according to a Guyana Forestry Commission study in 2003.
At the time of negotiating Foreign Direct Investment (FDI) concessions,
foreign-owned companies had emphasised the employment which they would
bring in, but they have generated little sustainably in the way of
employment or sustainable development at the local level. The quotas of
expatriate workers are part of the FDI arrangements negotiated by
Cabinet, and are not covered by the Forests Act or Forest Regulations.
The Commis-sioner of Forests has said that the JaLing Company will be
allowed to exceed its foreign worker quota of 20 per cent for 3-4 years
because there were no local skills (Press conference with Minister for
Forestry Robert Persaud, December 8, 2006). This position signifies
official disregard of a contractual agreement, which itself is much
weaker than OECD guidelines for multi-national enterprises recommend
(see later).
In 2005, the biggest concession holder, with legal control of 26 per
cent of State Production Forests, stated that its workforce totalled
1,100 workers (expatriate and Guyanese) in its logging (400 workers),
milling (100 workers) and plywood factory (550 workers) operations
(Sukhraj 2005). The downsizing of that company's plywood production can
be tracked in the quartering of its workforce in a decade - from 1,900
in 1995 to 1,750 in 1996, to 1,000 in 1997 and 550 in 2005. At the same
time, Barama's expatriate workforce is deployed across its
sub-contracted concessions and in the Amerindian village lands of
Akawini and St Monica, being logged through a 'harvesting contract'
with another company named IWPI. Such arrangements were not mentioned
in the original 1991 FDI agreement and probably not in the still-secret
2001 extended FDI agreement.
The Barama Company seems to be keeping to the overall limit of 15 per
cent expatriate workforce by counting its unskilled local workers at
the processing sites at Land of Canaan and Buck Hall. Foreign-recruited
workers are sent with interpreters for technical training by the Guyana
Forestry Training Centre (FTC), in effect reverse capacity building.
And in spite of the exemptions from all taxes and duties, including
import duties on fuel, the SGS Qualifor's Public Summary quoted a
CARICAD study that, "… a comparison of Barama Company wages and
salary structure rates with their competitors… indicates that BCL can
do more to improve their competitiveness for human resources" (SGS
Qualifor Public Summary 2006:30). Like most locally-owned forest sector
businesses, foreign-owned companies rarely advertise job vacancies.
Selection of administrative staff may be influenced by factors other
than straight efficiency and competence.
Guyanese employers in the forestry sector have not performed well
against labour standards. The proven charges, including of non-payment
of salaries and of failure to pass on NIS deductions, levelled against
Guyanese forestry companies by victimized workers are legion. The
recent declared intent by the Minister of Amerindian Affairs to take
firm action against companies and individuals found guilty of these
practices (SN, February 7, 2007) begs the question of why the terms and
conditions of employment set out in 10.2.3 of the GFC Code of Practice
for Timber Harvesting (2nd edition) are not widely implemented.
Recommendations
1. Excellent relevant models, including FAO and ILO guides, exist for
safe forest working practices. These should be used to enhance the
GFC's Code of Practice for Timber Harvesting (second edition, November
2003). All holders of forest harvesting concessions should be obliged
to work according to a revised version of this code, brought up to date
against the conventions of the Inter-national Labour Organization
(ILO); at present the GFC code is voluntary for older Timber Sales
Agreements (TSAs) and Wood Cutting Licences (WCLs).
2. The GFC should facilitate and support logistically both random spot
checks and scheduled inspections and monitoring visits by the Ministry
of Labour's Oc-cupational Safety and Health staff to manufacturing
plants which process forest products as well as to logging areas.
3. Forest Regulations (1953 as amended) include provisions for camp
conditions and regulations: first aid equipment and sicknurse/community
health worker (Article 37), food rations (Article 38). These
regulations could be used to improve conditions for forest workers.
4. The FDI arrangements negotiated by Cabinet for Barama and JaLing
allow 15 and 20 per cent foreign workers, respectively, with no
provision for a reduction in the percentage of foreigners over time.
Consequently, although Barama has been in operation in Guyana for 15
years, it is still claiming that 15 per cent. This, indeed all FDI
arrangements, should be revised to meet OECD guidelines on
multinational enterprises, and published to conform to the provision
for open government under Article 13 of the National Constitution 1980.
The revision of FDIs should require -
(a) written descriptions for all jobs;
(b) restriction of foreign employees to jobs proven to have no
qualified Guyanese applicants (tested by a competitive application
process);
(c) open advertisement in national press and local news posts (such as
Village Council offices, schools and church buildings) for all jobs at
all levels with reasonable periods for applications to be received;
(d) written contracts for all employees;
(e) formal and in-service training for Guyanese to take over from
foreign workers at all levels according to a fixed (but revisable)
schedule;
(f) scholarships or internships for Guyanese, leading usually to
officially recognized qualifications;
(g) creation and operation of branches of existing labour and
professional unions;
(h) workers' representative councils to negotiate with company
management on employment matters including conflict management;
(h) gender issues.
Several other good and sensible points on employment are in the social
issues section of the GFC Code of Practice for Timber Harvesting and in
Part VI A 6 in the National Forest Policy (October 1997).
5. FDI and Go-INVEST concessions could also be used to require holders
of forest harvesting concessions to
(a) provide social infrastructure such as labour living
accommodation/barracks and canteens for company employees;
(b) facilitate access to health posts and schools for company employees
and their families;
(c) provide banking and postal arrangements for company employees and
neighbouring communities;
(d) provide or finance transport work-to-home-to-work for the vacations
of company employees and their accompanying families;
The financial burden of some of these requirements could be mitigated
by reduced forest taxes, according to an agreed barter arrangement.
Indicators of progress, provision for bilateral or independent review,
provision for revision of arrangements, and penalties for inadequate
performance against agreed indicators, are essential for meaningful FDI
contracts. None of these points are at all new.
The year 2006 marked the centennial of the birth of international
labour law and of the trade-labour linkage. Policy-makers in Guyana and
in other countries should as a matter of world public order try to
think through how to achieve free trade and 'a living wage' together.
The beginnings of a synthesis might start with the motto carved on the
foundation stone of the main building of the World Trade Organization,
the Centre William Rappard. The building that now houses the WTO was
originally built for the ILO. What the stone says is "Si vis pacem,
cole justitiam," or "If you desire peace, cultivate justice."
By Janette Bulkan
Sunday Stabroek
February 18th 2007
This week's column resumes the discussion of employment in the forestry
sector against the fourth cause singled out by Guyana's Poverty
Reduc-tion Strategy Programme (PRSP) as responsible for persistent
poverty: "deterioration in the quantum and quality of social services"
(PRSP 2001, p. 7). Here I look especially at employment of Guyanese in
foreign-owned forest sector enterprises. This analysis is undertaken in
the context of the question: Why is there persistent poverty in the
interior alongside the parcelling out of Guyana's best endowed forests
in large-scale forestry concessions?
The official statistics on employment in the forestry sector are out of
date and/or not disaggregated. The 1997/1998 Labour Force Survey lists
50,737 persons (Males 41,982; Females 8,755) as employed in
'Agro-Forestry,' which in that survey denotes 'agriculture' and
'forestry' as separate activities. The 2002/2003 census lists a total
of 3,746 persons employed in 'Forestry, Logging and Related Services,'
and 42,069 in 'Agriculture, Hunting and Related Services.' These
official surveys suggest that full-time employment in the sector is
low, which is not surprising given the low rates of pay, lack of
contracts, job security, training opportunities and poor working
conditions outlined in last week's column.
A common theme in the diaspora is the exploitation, poor remuneration
and disrespect shown to Guyanese who lack 'papers' (legal
documentation), recognized skills certification, work experience
abroad, or union or other representation. Forty years after
Independence, Guyanese workers in the forestry sector suffer the same
fate: as disrespected at home as are undocumented Guyanese abroad.
The Guyana Forestry Commission (GFC) estimates that the forestry sector
provides employment to about 15,000 persons, the majority in the
small-scale sector. The small-scale forestry sector, allocated only
one-fifth of the commercial forests, (and the most worked-over and
worked-out forests) provides 75 per cent of forestry sector employment
according to a Guyana Forestry Commission study in 2003.
At the time of negotiating Foreign Direct Investment (FDI) concessions,
foreign-owned companies had emphasised the employment which they would
bring in, but they have generated little sustainably in the way of
employment or sustainable development at the local level. The quotas of
expatriate workers are part of the FDI arrangements negotiated by
Cabinet, and are not covered by the Forests Act or Forest Regulations.
The Commis-sioner of Forests has said that the JaLing Company will be
allowed to exceed its foreign worker quota of 20 per cent for 3-4 years
because there were no local skills (Press conference with Minister for
Forestry Robert Persaud, December 8, 2006). This position signifies
official disregard of a contractual agreement, which itself is much
weaker than OECD guidelines for multi-national enterprises recommend
(see later).
In 2005, the biggest concession holder, with legal control of 26 per
cent of State Production Forests, stated that its workforce totalled
1,100 workers (expatriate and Guyanese) in its logging (400 workers),
milling (100 workers) and plywood factory (550 workers) operations
(Sukhraj 2005). The downsizing of that company's plywood production can
be tracked in the quartering of its workforce in a decade - from 1,900
in 1995 to 1,750 in 1996, to 1,000 in 1997 and 550 in 2005. At the same
time, Barama's expatriate workforce is deployed across its
sub-contracted concessions and in the Amerindian village lands of
Akawini and St Monica, being logged through a 'harvesting contract'
with another company named IWPI. Such arrangements were not mentioned
in the original 1991 FDI agreement and probably not in the still-secret
2001 extended FDI agreement.
The Barama Company seems to be keeping to the overall limit of 15 per
cent expatriate workforce by counting its unskilled local workers at
the processing sites at Land of Canaan and Buck Hall. Foreign-recruited
workers are sent with interpreters for technical training by the Guyana
Forestry Training Centre (FTC), in effect reverse capacity building.
And in spite of the exemptions from all taxes and duties, including
import duties on fuel, the SGS Qualifor's Public Summary quoted a
CARICAD study that, "… a comparison of Barama Company wages and
salary structure rates with their competitors… indicates that BCL can
do more to improve their competitiveness for human resources" (SGS
Qualifor Public Summary 2006:30). Like most locally-owned forest sector
businesses, foreign-owned companies rarely advertise job vacancies.
Selection of administrative staff may be influenced by factors other
than straight efficiency and competence.
Guyanese employers in the forestry sector have not performed well
against labour standards. The proven charges, including of non-payment
of salaries and of failure to pass on NIS deductions, levelled against
Guyanese forestry companies by victimized workers are legion. The
recent declared intent by the Minister of Amerindian Affairs to take
firm action against companies and individuals found guilty of these
practices (SN, February 7, 2007) begs the question of why the terms and
conditions of employment set out in 10.2.3 of the GFC Code of Practice
for Timber Harvesting (2nd edition) are not widely implemented.
Recommendations
1. Excellent relevant models, including FAO and ILO guides, exist for
safe forest working practices. These should be used to enhance the
GFC's Code of Practice for Timber Harvesting (second edition, November
2003). All holders of forest harvesting concessions should be obliged
to work according to a revised version of this code, brought up to date
against the conventions of the Inter-national Labour Organization
(ILO); at present the GFC code is voluntary for older Timber Sales
Agreements (TSAs) and Wood Cutting Licences (WCLs).
2. The GFC should facilitate and support logistically both random spot
checks and scheduled inspections and monitoring visits by the Ministry
of Labour's Oc-cupational Safety and Health staff to manufacturing
plants which process forest products as well as to logging areas.
3. Forest Regulations (1953 as amended) include provisions for camp
conditions and regulations: first aid equipment and sicknurse/community
health worker (Article 37), food rations (Article 38). These
regulations could be used to improve conditions for forest workers.
4. The FDI arrangements negotiated by Cabinet for Barama and JaLing
allow 15 and 20 per cent foreign workers, respectively, with no
provision for a reduction in the percentage of foreigners over time.
Consequently, although Barama has been in operation in Guyana for 15
years, it is still claiming that 15 per cent. This, indeed all FDI
arrangements, should be revised to meet OECD guidelines on
multinational enterprises, and published to conform to the provision
for open government under Article 13 of the National Constitution 1980.
The revision of FDIs should require -
(a) written descriptions for all jobs;
(b) restriction of foreign employees to jobs proven to have no
qualified Guyanese applicants (tested by a competitive application
process);
(c) open advertisement in national press and local news posts (such as
Village Council offices, schools and church buildings) for all jobs at
all levels with reasonable periods for applications to be received;
(d) written contracts for all employees;
(e) formal and in-service training for Guyanese to take over from
foreign workers at all levels according to a fixed (but revisable)
schedule;
(f) scholarships or internships for Guyanese, leading usually to
officially recognized qualifications;
(g) creation and operation of branches of existing labour and
professional unions;
(h) workers' representative councils to negotiate with company
management on employment matters including conflict management;
(h) gender issues.
Several other good and sensible points on employment are in the social
issues section of the GFC Code of Practice for Timber Harvesting and in
Part VI A 6 in the National Forest Policy (October 1997).
5. FDI and Go-INVEST concessions could also be used to require holders
of forest harvesting concessions to
(a) provide social infrastructure such as labour living
accommodation/barracks and canteens for company employees;
(b) facilitate access to health posts and schools for company employees
and their families;
(c) provide banking and postal arrangements for company employees and
neighbouring communities;
(d) provide or finance transport work-to-home-to-work for the vacations
of company employees and their accompanying families;
The financial burden of some of these requirements could be mitigated
by reduced forest taxes, according to an agreed barter arrangement.
Indicators of progress, provision for bilateral or independent review,
provision for revision of arrangements, and penalties for inadequate
performance against agreed indicators, are essential for meaningful FDI
contracts. None of these points are at all new.
The year 2006 marked the centennial of the birth of international
labour law and of the trade-labour linkage. Policy-makers in Guyana and
in other countries should as a matter of world public order try to
think through how to achieve free trade and 'a living wage' together.
The beginnings of a synthesis might start with the motto carved on the
foundation stone of the main building of the World Trade Organization,
the Centre William Rappard. The building that now houses the WTO was
originally built for the ILO. What the stone says is "Si vis pacem,
cole justitiam," or "If you desire peace, cultivate justice."
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