PM: Preserve forests in PNG

Forests Minister Walter Schnaubelt says forests of Papua New Guinea are not only a source of supply for timber but a repository of a wide range of goods and services that underpin the rural economy. He said in rural PNG, forest is a supermarket for the populace and proper management of it for forestry development and other land use purposes, must be done properly and in due process. Business Editor SHIRLEY MAULUDU reports on what was said during the launching of the corporate plan and strategic policy documents on Tuesday in Port Moresby.

Prime Minister James Marape says the forestry sector is not in its primary stage.
In some sense, it is not totally renewable.
Most of you in the forestry space know very well that once harvested, the primary state of the forest is lost forever.
I am mindful of the intrinsèque value of conservation and biodiversity that we have in our country.
I am very keen to be part of the process of forestry now and for the next 10 years as we implement this corporate plan.
That we do not forfeit the total value of forestry we have today.
In 462,000 square kilometers of land of what is called Papua New Guinea today, we house 6 to 7 per cent of the world’s biodiversity.
So, for those who work in forestry, as we go about our business, preservation, conservation and sustainable harvest of our resources must be at the very highest as we go into the future.
This is a resource that can lose its value if we are reckless in the way we harvest.

Downstream processing
Forestry has been part of our economy in the past 26 years.
But, the value on return on the harvest to local economy has been in despair.
We should get a better return on our logs harvested going forward.
Sadly, while there have been benefits, that hasn’t translated too much on the economy and country.
So, I am very happy to note the corporate plan’s view on downstream processing.
We are not in the business of bringing in new players to the industry.
For those who have been in the industry with us for the last 46 years, you have the first opportunity to partner with the Government in the downstream space.
If you are not in the mindset of partnering Government in the downstream space, pack up today and leave our shores.
No more licenses are to be issued without a clear evidence of a downstream policy path.
No new licenses are to be issued without a clear evidence of a downstream processing plan, especially by current operators.
New licenses ought to be given to landowner companies – assisted by the provincial governments and district development authorities.
We are all in the business of adding value from our resources.
We will assist you to find market just like what we did for the oil and gas sector.
New round log permits must only go to landowner companies but they have limitations also.
In 2030s, we are harvesting sustainably and exporting only finished products.
State will exercise its State option as soon as possible.
Forest Minister Walter Schnaubelt said the evolution of the legal framework has seen a tussle played out between the State’s desire to control timber harvesting and landowners’ desire to be involved in the sale of a customary-owned asset.
The 1991 Forestry Act re-asserted the State’s monopoly over timber sales.
Yet conflicts continue to characterise the forestry sector, suggesting that on equitable balance has yet to be found and secured within our legal processes and systems.
Thus, it is of importance to address this balance.
The following will address this concern:

• TO increase the rate of timber royalties to landowners by 20 per cent;
• TO ensure the timber royalty payments to be made monthly by the forest industry and not PNGFA and directly to the landowners;
• TO increase the log export development levy (LEDL) by K3/m3 from K8/m3 to K11/m3 and also improve on the efficiency of distribution of this levy, in a timely manner;
• TO establish the State Marketing Agency;
• TO review the forest revenue system so that PNGFA can generate its own funds; and,
• TO review the Forestry Act to take account of changes, including involving climate change mitigation activities (REDD+) and adaptation activities concerning the forest sector.

Forestry Policy Documents
The five-year policy documents released are the:

• PNG Forest Authority Corporate Plan 2021-2030 – to guide and direct PNGFA towards achieving the expectations set by the Government. It is an ambitious plan.
  Key result areas and strategic activities outlined in the plan are broad and demand high-level proficiencies in performance.
  This is the second corporate plan since the institution of the PNGFS in 1991;
• NATIONAL Strategies for Reforestation and Afforestation in PNG 2020-2024 – the Government recognises this in its Vision 2050, for the authority to plant 800,000 hectares of trees by 2050.
  The strategy detailed current and emerging challenges of resources and energy crisis, climate change, loss of biological diversity and
  improved management in
  conservation and rehabilitation of forests;
• NATIONAL Strategies for Downstream Processing of Forest Produce in Papua New Guinea 2020-2024.
  It has the potential to increase the contribution to economic growth, employment generation and greater national participation in industry over the next decade and beyond.
  It lays the foundation for the development of a vibrant and competitive domestic market and strengthens greater opportunities for international trade in developed and emerging markets;
• REVISED PNG Logging Code of Practice 2nd Edition 2020.
  This instrument is important for sustainable forest management and for the enforcement and implementation in the logging areas to minimise adverse effects and to ensure forest resources replenish for future use; and,
• STATE of the Forestry Sector in Papua New Guinea.
  The report summarises current state of play within the forestry sector, outcome from the National Summit 2019, a brief on strategic policy documents, effect of the Covid-19 pandemic in the sector and the possible plan of actions to address the current Government’s policy directives.