Export ban to cost K400mil

THE ban on round log exports next year will cost the Government about K400 million in taxes, outgoing Forestry Minister Douglas Tomuriesa says.
In a report he presented to his successor Solan Mirisim on Wednesday, Tomuriesa said the inability of the PNG Forest Authority (PNGFA) to provide an action plan had resulted in the Government’s continued reliance on log export taxes for revenue.
“The Government policy was announced in 2012 but it may be more practical to phase out the ban over several years with guidance from PNGFA,” he added.
Tomuriesa said in the report that a comprehensive strategic review of the forestry industry was required to prepare PNG for the next phase of development in the forestry industry.
“This is necessary, given the emerging changes in technology innovations, international geo-politics and international trends in the trade of logs and timber.
“Following the Barnett Commission of Inquiry, the Government will need to undertake a comprehensive review of the Forestry Act 1991 as well as a strategic relook of PNG’s competitiveness in the international markets for logs and timber products.
“The review of the regulations will need the re-assessment of various permits for forestry development including timber rights purchase, local forest areas, and forest management agreements as well as forest clearance authority and timber authorities with the aim of also better defining the roles of provincial governments.
“It is crucial to maintain the industry momentum to involve consultations with the industry players to implement the government’s objective of banning round logs exports by next year,” he said.
Tomuriesa said: “When the nationwide National Forest Inventory is in finalized early next year, PNG will be able to identify and align its priorities for Reducing Emission Deforestations and Forest Degradation (REDD+) as well as PNG’s commitment to international treaties and conventions on climate change.
“Following the comprehensive industry review, a major institutional reform will be required to enable PNGFA or its successor to implement a new forest regulator regime to enable PNG to compete internationally whilest creating more jobs and generating economic growth for the country”