AFC’s statement on ‘local loggers being forced out of the market’ is misleading

Dear Editor,
I REFER to the statement by the Alliance For Change (AFC) member Mr. Ricky Ramsaroop MP, dated August 24, 2024 on the subject of local loggers being forced out of the market.
This statement is not only irresponsible but misrepresents the facts. The statement only confirms what is already known that the AFC is out of touch with reality and is seeking to gain public attention by creating confusion and disharmony in the sector.
In addition to being totally mischievous, this article is not fact-based but simply an attempt to tarnish the forestry sector, which is still recovering from the total mismanagement of the APNU dictatorship during the 2015-2020 period.
The facts on the sector are well known: Prior to 2015, the forestry sector was very vibrant and a significant contributor to national development. Production was high, reaching over 500,000 cubic meters annually, export over US$40 million annually, and forest sector employment 22,000 plus.
During the period 2015 to 2020 when the APNU+AFC was in government, production fell to under 400,000 cubic meters annually, export to under US$30 million, forest sector employment fell to around 14,000, GFC was bankrupt, unable to pay staff, zero maintenance of hinterland roads and infrastructure, and no new investments.

Additionally, a number of large investors along with many small operators were forced out of the sector. As a result, the sector lost at least 100,000 cubic meters in production annually. Many forest-dependent communities experienced tremendous hardship as the supply and cash flow chain dried up.
Businesses went into decline as supplies such as food, fuel, groceries, etc…, were not selling. Many of these communities were in the APNU+AFC support areas. Quite interestingly, the AFC member Mr. Deonarine Ramsaroop, was a key member of the GFC Board of Directors and right under his eyes the sector and GFC fell apart.

Fast forward to 2020 when the PPP/C took back office, there was immediate injection of funds to the GFC to pay staff and combined with strong policy, backed by support for the sector, saw the recovery from 2020 to date.
Production is reported to be well over 450,000 cubic meters annually, forest sector employment over 25,000, over 150 small concessions issued during 2021 to date, five new large concessions and over 100 new sawmills and value added facilities.
Confidence has been restored to the economy and the sector, and there has been a shift to value added production, new investments in high quality lumber, kiln dried lumber, flooring, decking, prefab housing and furniture have taken place during the period since the PPP/C took back office.
Additionally, consecutive national budgets have included incentives such as duty free on heavy duty machinery, duty free fuel, duty free on ATV and other incentives for the forestry sector. The government has expanded the road network and over 1,000 km of new roads have been built and rehabilitated in the hinterland. These developments also took place during a period where external factors beyond the control of the government took place such as the COVID-19 pandemic 2020/2021, and the heavy rainy season and flooding in 2021 and 2022 followed an extensive dry season in 2023 and 2024.
If the AFC and Mr. Ramsaroop was interested in the facts, the Minister of Natural Resources, Vickram Bharrat just recently held a public engagement with the media on August 14, 2024, where members of the media were presented with facts on the various sectors including forestry and any questions and clarifications could have been asked.

The MNR and GFC has always been open to engagement with any member of the public and the sector on any issues relating to the sector.
Unlike the AFC and the Mr. Ramsaroop-led board at the time, only self-interest issues were addressed.

Dealing specifically with the issue of piles, there has been a reported increase in the production of piles from 2021 to date from 13,000 cubic meters to 30,000 cubic meters annually; this trend alone shows the robust nature of the construction sector.
Most of the piles produced are utilised locally. I am quite certain that the ministry nor the GFC have not received any complaints from pile producers of them being cheated by Chinese buyers in measurement and prices.
Mr. Ramsaroop and the AFC knows fully well these concerns; if they exist, it can be directed to the GFC or the ministry. The GFC and MNR has weekly open day where stakeholders and members of the public can interact or table complaints or concerns to the GFC and Ministry.
Mr. Ramsaroop, who is driven by self-interest, should desist from spreading misinformation for cheap political gain. Rather, he should concentrate on beneficially utilising his resources, providing gainful employment for Guyanese, and contributing to the development of the country and sector.
Producers are not obligated to sell to any particular contractor or buyer if the terms of the arrangement are not favourable.

Guyana’s development space is open to both foreign and local investors and more so the forestry sector where both local and foreign players, including Chinese, have played an important part of the sector development. The government treats all investors and companies operating in the economy and forest sector fairly and non-discriminatory unlike Mr. Ramsaroop’s previous board and Government of 2015 to 2020.
Yours sincerely,
Ron McPhoy

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