Minister Persaud encourages stakeholders to invest in forestry
THE Forestry Sector has been experiencing difficulties with regards to financing and consequently, its growth is being stymied. It is against that backdrop that the Ministry of Natural Resources and the Environment and the local banking sector are collaborating to devise ways of tackling the funding issue.
Towards that objective, a meeting of stakeholders was convened at the Sleep-In Hotel, on Brickdam, Georgetown on Monday, involving the ministry and representatives of the commercial banks.
Delivering the feature address at the forum, Minister with the portfolio, Mr. Robert Persaud said, while the industry is enjoying some level of growth, its performance is not as expected, because there are challenges within.
He urged the bankers to be a part of the development of forestry by way of investments.
With respect to the export of logs, Persaud said the policy is being revised to the mutual benefit of all involved.
He said manufacturers as well as the producers are to come up with a consensus position because the recommendation sent to him did not reflect a consensual view and he asked for it to be referred back to both parties, so that a common position could result.
According to him, there are misconceptions that the local market is being starved to facilitate exports. However, there is a policy, presently in place, where disincentives are created for the export of logs and in fact, the amount of forest products being produced is in excess of what is needed locally.
He posited that the sector has tremendous possibilities for growth and expansion, not only looking at forestry in its traditional setting, but also considering possibilities, potential and value-added.
In that regard, the greatest scope in terms of expanding and developing, would be in the area of adding value, Persaud pointed out.

Needed
He said he believes funds are needed to assist companies to retool and offset the high cost of establishing the required facilities and that is why he urged the banks to invest in the timber business.
Persaud maintained that there is great potential and money to be made and suggested that the banking community sink capital in the forestry sector, as it is an attractive area of investment.
In 2002, Guyana exported US$32.2M worth of forest products and, by the end of 2011; the exports were worth close to US$41 million.
Persaud said this country has seen a reasonable level of growth taking place, given that, so far, when compared to the same period last year, the economy had grown 3.3 percent.
He lamented that, although there is a positive trend, a gap still exists between what is happening now and the possibilities.
Persaud said the government has made it clear that it wants to work with stakeholders to explore and pursue initiatives to overcome the various challenges that the Forestry Sector faces.
He said it is a very important one, not only from the macro-economic standpoint but also the socio-economic view, because there are thousands of people who depend on the sector for a livelihood.