CABINET is currently analysing a menu of options in its quest to revive the forestry sector, according to the Natural Resources Minister, Raphael Trotman.When the Finance Minister, Winston Jordan delivered the Mid-Year-Report in August, the forestry sector had contracted by 13.1 per cent during the first six months of 2016 when compared with 2015. At the time, it was anticipated that during this the latter part of the year the sector would have shown signs of improvement but now reports are suggesting that the sector has contracted even further to more than 15 per cent.

In an effort to move the sector forward, Minister Trotman said Cabinet has established a sub-committee comprising the Ministries of Natural Resources, Social Protection, Public Infrastructure, Communities and Indigenous People’s Affairs to assess and holistically plan for the future of the sector. “There are many options that Government has – do we for example, aggressively go back to giving out our forest for harvesting of logs, do we do so in a less aggressive way and withhold for carbon credit financing that we can raise,” the Natural Resources Minister said, while addressing reporters at the Ministry of the Presidency on Thursday.

The 1.6 million hectare forest concession, which is being returned to Government following Barama Company Limited (BCL) decision to close its logging concession here, is also under serious review.

“The State is examining the future – one, whether we should give them back out in blocks, and we have received some expressions of interest from both local and international companies, (or) whether we should cut them into about four of about 400, 000 hectares each putting aside some for conservation, putting aside some for small loggers and saw-millers, putting aside for international concessionaires,” Trotman said.

He said these are the options currently being examined by the sub-committee which is expected to submit a report soon to Cabinet. He said while there may be some incentives in the 2017 Budget for operators within the Guyana Forestry Sector, the sector must remain competitive and self-financing.

In October, Barama Company Limited (BCL) indicated to Government that it will no longer be operating a logging concession here, after opting not to renew its Forest Concession Agreement.

The company had explained that it was no longer viable to continue in the forestry operations in view of prevailing global prices.

Additionally, the Natural Resources Ministry has mandated the Guyana Forestry Commission to work with BCL to ensure a smooth closure of all concession related activities within the stipulated period.

The parties will ensure that all labour and other related issues are fully addressed in keeping with applicable laws and regulations.

Demerara Timbers Limited (DTL), another logging company which has its concession at Mabura Hill in Region 10, in recent days has been scaling down operations there with reports indicating that it is soon to close shop. In the case of Bai Shan Lin, the Government, through the Guyana Forestry Commission (GFC) had taken a decision to repossess all of the company’s concessions.

The company had failed to meet several legally binding obligations, including the payment of $80M which it had owed Government.