PNG moves to prop up timber industry rejected

PNG moves to prop up timber industry rejected

Greenpeace has accused the Papua New Guinea Forest Authority and the World Bank of short-sighted and naive policies to prop up PNG's export log industry.

Greenpeace said on March 17 it had obtained a leaked Forest Authority memo indicating an intention to reduce export log taxes by 20%, allow logging companies to cease payment of royalties to landowners and allow selective harvesting of premium species, some endangered. The PNG government is reported to be split over the measures.

Greenpeace PNG spokesperson Brian Brunton said the proposed measures will support an industry based on short-term profit motives, with no plans for forest sustainability or the PNG economy.

The industrial logging industry made a lot of money when times were good, Brunton said, and still it did not pay what it owed to PNG's people. "Now that times are bad, they expect a bailout", he said.

The major timber companies, many joint ventures between local and Malaysian companies, have scaled down their operations in recent times by 75%, sacking more than 4000 workers. The industry blames poor international log prices and the collapse of Asian markets due to the financial crisis.

[From Pacnews/Ioane news agency.]

From GLW issue 313