PM halts logging permits

Business

By SHIRLEY MAULUDU
PRIME Minister James Marape has instructed officials to stop issuing anymore logging permits until “a full stock-take” of the 205 existing ones is completed.
“We want to make more money for our country but at a sustainable rate,” he said during a visit to the PNG Forest Authority office in Port Moresby.
“This sector is a sleeping giant. We’ve been playing marbles (with it) for too long,” Marape said.
“I want you to recommend to the (forestry) minister through the board and MD (managing director) how best we can ramp up our production in this sector without compromising sustainability and good environment practises.”
Marape also wants to know how long the 205 permits have been in operation.
“And businesses not (owned by) landowner (companies) must have an element of downstream processing built into their business plan,” he said.
“(After) three years, I come to this place and I am very discouraged because we have not done much.
“There is no substantial progress in the downstream processing phase.
“No new license is to be issued. Let’s take stock of the 205 first. Inform stakeholders that the Government wants a serious placement on downstream processing.”
He wants all existing forestry-related businesses to submit to the Forest Authority their business plan on down-streaming.
“No more renewal of permits until this comes in. For those that do not have an association with downstream in their business plan, the State will exercise its right in the state marketing option that all logs cut will be put into our log ports.”
He said Treasury would work on a policy requiring a “matching Kina or dollar to come back into the country for all the logs that go out”.
“I may seem hard but I make no apology to anyone.
“It’s not just for Forestry. We will do the same for fisheries and agriculture.
“Gold, oil and gas will follow the same process as well,” he said.
“Our resources have been plundered (with) minimum return to our country.”