– Bulkans support initiative

(OFFICE OF CLIMATE CHANGE) — The Guyana Manufacturers and Services Association Ltd (GMSA) has endorsed the draft Low Carbon Development Strategy (LCDS), saying it shows an overall appreciation of the development thrust of the manufacturing sub sector in the forest industry.

The association, in a position paper drawn up by Mr. Rustum Bulkan, Chairman of its Wood sub-sector group, says the strategy is in accordance with the focal areas pinpointed over the years as essential for the future advancement of this sub sector.

Bulkan is also joint Managing Director of Precision Woodworking Limited with his brother Ronald, and the two in an interview also fully backed the LCDS and what it holds for Guyana’s development.

He said the strategy is “very comprehensive” and covers all aspects of the forestry sector.

“Overall, the LCDS represents a new and visionary way of approaching the social and economic development of Guyana”, he states in the paper.

He adds: “It will transform the way in which business is done and the approach to economic activities. It is felt that the impact on the economy and society will be one that is indeed transformational: in terms of creating more gainful employment, income generation, social services production, and livelihoods, whilst maintaining the forest resources.”

Ronald noted that climate change is accepted as one of the current defining issues and said it’s a credit to the Guyana Government and President Bharrat Jagdeo that they have recognised that this offers an opportunity for countries like Guyana.

He noted that enforcement of regulations will be critical for confirming to sustainable forest management (SFM) practices and what Guyana is seeking is a trade for its services in the carbon capture market and not a handout.

The position paper notes that one of Guyana’s most valuable assets is its forest resources that cover almost 80% of its land surface and says the contribution to Guyana’s economy can be significantly improved if key sectors are strengthened along a low carbon growth path.

The draft LCDS, it says, outlines an approach that addresses both the mitigation and adaptation aspects of climate change, adding that the identification of low carbon economic opportunities potentially offers significant benefits to the manufacturing sub sector in the form of a cheaper and more reliable source of power (hydro), improvements in the information and communication technology and infrastructure in critical areas targeted for development. 

“Specifically, the draft LCDS recognises the importance of moving up the lumber value chain and has outlined key requirements of this proposal…The LCDS recognises that globally, the export of secondary processed wood products is high and the prices that are gained are significantly higher than that for primary products”, it states. 

It adds that the LCDS shows good foresight in identifying that new investment in processing activities would facilitate even greater production of higher value wood products. “These would meet international standards for export and would bring new capabilities in waste minimisation and recovery, as well as establish important market linkages to enhance export value of processed products.”

CRITICAL QUESTION
It says that accompanying such investments will be the critical question of training in industrial wood-machining techniques which will create a larger pool of skilled persons, thereby benefitting the entire sector.

It points out that the LCDS includes a clear emphasis on SFM and sustainable development whilst creating an important balance on economic enhancement.

“This approach will benefit the manufacturing sub sector in the forestry industry which is the end user of forest products that are harvested. With added emphasis placed on sustainable forest management, there will be heightened need for key procedures for SFM to continue to be effectively implemented and complied with by the sector. This will bring added recognition to Guyana’s exports of added value forest products in the international market, where wood products from legally and sustainable harvested forests attract premium prices and are specifically demanded.”

It also acknowledges that the potential impact of the LCDS on local communities is recognised as being of tremendous assistance to the development needs of hinterland areas.

“Many communities will be able to attain a higher level of economic sustenance and may be able to access improved social services as a result of incentives gained. This will add to the overall development of our peoples”, it states. 

The association has drawn up recommendations for transitional arrangements in implementing the LCDS.

It states that capacity building will be required to train forest sector operators in both the producing and manufacturing sub sectors, on relevant areas that will be required for achievement of the thrust of the LCDS.

It is seeking resources support through project based grant support and direct technical support for retooling, improving the level of conversion efficiency at sawmills and manufacturing plants, saw doctoring, sawmill layout, development of added value forest products (new products and improving on existing products) and targeting marketing for these, and overall industry support in areas identified that are critical for industry development in the sector.

CLUSTER APPROACH
It also advocates fostering the cluster approach to industry development in areas of equipment utilisation (e.g kilns), pooling of raw materials to assist in ensuring adequacy of required raw materials for processing, market intelligence and trade promotion and investment activities. 

It also says that implementation of key policies that support added value forestry activities should be encouraged, (like the continued implementation of the Log Export Policy post 2012 – which is the date that this policy expires, and an assessment of approaches that may be effective in discouraging export of logs and increasing the supply of raw materials locally).

The GMSA is also seeking support to develop a programme/strategy for continued backing to forest manufacturing industry development that aims to ensure that initial efforts are sustained; and continuous support in the form of resource allocation for possible financial and technical assistance in industry development areas that are identified.

In the interview, the Bulkans stressed the enormous benefits of further processing in forestry, noting that more value-added creates far more jobs and other opportunities.

They said that their company has always spoken out against reliance on primary processing and has shown how value-added can work.

“As a company we have shown how this is possible and this should be replicated”, Ronald said.

Precision Woodworking Limited designs and manufactures hardwood leisure and garden furniture and its products have been the choice of leading United Kingdom distributors and retailers.