– dealers without concessions to be blocked until situation is reviewed, revised policy finalized
– Minister Persaud
TO ensure that the domestic needs of local consumers within the forestry sector are supplied, Agriculture Minister Robert Persaud yesterday met with scores of log/lumber exporters to discuss ways in which issues of inadequate supply of building materials and the recent hike in prices, which have seen a number of contracts stalled, can be addressed. The Guyana Forestry Commission (GFC) was also mandated by the Agriculture Minister to explore possible solutions to satisfy demands by increasing supplies on the local market, before products are exported.
Minister Persaud, while addressing the gathering during a meeting in the Boardroom of the Ministry’s Regent and Vlissengen Roads office, said that while there is an acute shortage of building materials on the local market, there are still instances of low production in the Timber Sales Agreement (TSAs), by large concessionaires.
Data output by the GFC has shown that 61 percent of total production is currently being exported.
“People are sitting on concessions and I’m not sure how we can manage our operations if we are sitting on this vital resource and not utilising it. The bulk of the production is being exported and then, if you go in terms of logs, most of it is going in this form. These are the realities that we have to deal with,” he said.
While noting that it is not the intention of Government to stop the exportation of logs, but rather look at ways in which there can be an increase in the supply for local consumption, he said that it is necessary to address the national needs to supply Guyana’s ever-growing construction boom.
“We are very cognizant of the fact that contracts have been entered into and we do not want to do anything to jeopardise those commitments. Having said that though, I would urge that good sense prevail whereby stakeholders can volunteer solutions on how is it we can improve output,” the minister posited.
The GFC will also be working closely with the Forestry Producers Association (FPA), to address some of the constraints within the sector.
The Agriculture Minister, while maintaining that there is no ban on the export of log/lumber, encouraged dealers especially those who were not present at the meeting to make available information with regards to the quality and quantity of produce they currently possess so as to make this available to consumers.
“Some of the technical issues will have to continue to be addressed jointly in this regard and the emphasis, in terms of the lesser used species, we have to continue to do much more work on so as to take the pressure off,” the Minister reminded.
EXPORTATION
While addressing the issue of log export, Minister Persaud made it clear that Government will, in no way, prohibit dealers who have concessions from exporting. However, persons who currently do not possess a concession but are in the business of exportation will be blocked from exporting until the issue is resolved.
The log export policy states clearly that only a person in possession of a concession can export the commodity. However, Government was flexible with the rule that places an embargo on exportation, without concession, based on recommendations made by the FPA.
“I think in this short-term arrangement we need to revert to that position, which would allow us to modify supplies to the market. This will be so until we have reviewed the situation and finalised the revised policy,” he said.
Government is also in the process of re-allocating four TSAs and approximately 150 Spruce-Pine-Fir (SPF) lumber concessions that are not performing, before the end of 2011.