Foreign Firms Lose Forestry Board Rep - Now Maintain Moratorium
12/31/00
OVERVIEW & COMMENTARY
by Forests.org
Papua New Guinea's (PNG) forest sector is dominated by foreign companies that export logs with little benefit, and many costs, to the country. The World Bank has exercised its power derived from its lending to compel the PNG government to push through some much needed reforms - which were done with amendments to the Forestry Act in early December. PNG's Forestry Board has been in desperate need of reform. For the last few years expatriates representing the interests of the multi-national log export companies have dominated the proceedings of the Board. This has been addressed by removing the Forestry Industries Association's position on the Board and by limiting some positions to PNG citizens. The amendments also end the Minister's ability to delegate the board's power to "any other person". And in a huge step towards open government, the amendment allows for board decisions, plans, maps, timber permits, licences, and Forest Management Agreements to be made public. Previously these were confidential and not released. Having assisted in developing these conditions while working as a PNG forest specialist/consultant for the Bank some time ago, it is gratifying to see a start to implementing much needed reform.
Now the question is whether the World Bank intends to do more than continue its decade+ effort to reform industrial logging, and push to open up forest management to a greater variety of types, scales and ownership. The litmus test in determining whether the Bank's actions go beyond making minor reforms to keep the logs flowing will be whether they hold strong on keeping the current moratorium on new logging concessions in place. This was imposed as a condition of the Bank's most recent and ongoing structural adjustment loan. The Bank concurred with civil society's judgment that a moratorium on new logging concessions was required to rein in the industry, and that a review of the many proposed new projects was also necessary. Yet, there are indications that the Bank may allow the moratorium to lapse prior to the completion of the review and enactment of policy based on its findings. This would be a grave mistake and represent the loss of the last best chance to responsibly manage this nationally and globally significant rainforest.
Another troublesome aspect of Bank policy is the failure to support development of government policies to foster other types of forest management. The entire forest allocation process - from listing Forest Management Areas to tendering projects to the operation of the Forest Authority - is biased towards large-scale intensive management for log export by foreign companies. Any other forest use - be it strict protection or community eco-forestry - is seen as a threat to the system and is actively impeded. There is a desperate need to lend legitimacy to the rapidly expanding local efforts to pursue small and medium scaled certified and community based forest management. Such efforts are many times more environmentally sustainable and economically beneficial to communities than even the best policed industrial forestry. The Bank is the only entity capable of requiring development of a fair and consistent policy that views all types of forest management as equally valid; and then developing and implementing a forest policy, legislation, regulations and guidelines for more ecologically sustainable, small to medium scale, community based and certified forestry operations. Yet they show no inclination to do so - having dropped plans to do so in a follow on forestry project that is still to be approved and implemented.
Forestry in Papua New Guinea is at a crossroads. While the reforms the World Bank has advanced are welcome and a good start, they are not enough. Essentially the majority of PNG's remaining commercially valuable forests are being given over to industrial forestry. Some 30 new projects are in various aspects of approval, with many questionable and corrupt activities occurring in their allocation. The World's third largest rainforest wilderness is to be decimated. If these forests are given over in their entirety to more status quo, once over harvesting; the potential for a much more environmentally, socially and economically sustainable forestry for the benefit of generations to come will be lost. These forests will be lost forever unless the World Bank insists that the existing moratorium be maintained and support policy development for other types of forest management. Failure to do so makes the recent minor reforms and proposed forestry project meaningless-ensuring the same results of an ecologically and economically reduced country.
NGOs and others concerned about forest conservation in PNG have given the World Bank the benefit of the doubt for some time. Conservationists have accepted continued industrial log exports because of promises of Bank support for broadening forest management opportunities. If the moratorium is not kept in place and support given to alternative forest management activities, and efforts are only upon again reforming export logging, the World Bank will have lost their credibility. If the World Bank is unwilling to support any forest management other than foreign log export, they will face a renewed call for a log export ban and loss of support for their forest sector initiatives in PNG. I guarantee it.
I call upon all PNG forest conservation groups and individuals to make maintenance of the moratorium and support for government policy for alternative forest management activities their emphasis; and reappraise their support of the World Bank program if they fail to do so also. Look for a major campaign to commence - with press releases and action alerts to follow shortly on these matters. And your donation < http://forests.org/donate/ > will strengthen our advocacy on behalf of PNG's forests.
g.b.
Here is past coverage of elements of the Bank/PNG government forest sector reform effort: http://forests.org/archive/png/new/pngforde.htm
RELAYED TEXT STARTS HERE:
Foreign firms lose rep on Forestry Board
Copyright 2000 The National (PNG)
December 6, 2000
FOREIGN owned or controlled timber companies operating in the country will no longer have a representative on the Forestry Board. This is one of a number of changes to the composition of the Board Parliament approved when it passed sweeping amendments to the Forestry Act yesterday.
Forest Minister Michael Ogio described the amendment bill as one that will improve transparency in dealings in the industry, and remove potential for abuse by those in authority, like the Minister or chairman of the board. Logging companies are represented by their association the Forest Industries Association (FIA), which has a representative on the Forestry Board.
Under the changes, this ex-officio position is no longer the FIA's and is now made available to the PNG Chamber of Commerce and Industry, whose representative nominated must not be a principal or employee of a foreign owned or controlled company dealing in, trading in or contracting in timber.
Expatriates on the board are also set to lose their positions. The amendment provides that the representative of the President of the Association of Foresters of PNG or his nominee to the board will now only be a citizen of PNG.
The non-government organisation position on the board has also been abolished and replaced with the President of the PNG Eco-Forestry Forum, or his nominee, who must be a citizen of PNG.
A new position for women, especially in the rural areas has been created on the board, with the representative appointed by the National Executive Council from recommendations by the National Council of Women.
In other changes to the board, the Secretary of Department of Planning and Monitoring replaces the Treasury Secretary on the board, while the chairmanship of the board is restricted to government representatives other than the managing director of the National Forest Service.
The amendments also remove the existing right of the Minister to delegate the board's power to "any other person".
It also allows for board decisions, plans, maps, timber permits, licences, and Forest Management Agreements to be placed on a public register to be viewed and searched by members of the public.