–President Ali challenges opposition on its policies for forestry, bauxite
–highlights coalition administration’s complete destruction of Guyana’s economy, loss of jobs

PROVIDING an analysis of the performances of Guyana’s forestry sector and bauxite industry under the leadership of the A Partnership for National Unity Alliance For Change (APNU+AFC) juxtaposed with the People’s Progressive Party/Civic (PPP/C) administration, President, Dr Irfaan Ali further exposed the coalition administration’s failure to implement policies aimed at generating growth, which ultimately resulted in the collapse of the two major areas.

The Head of State in an airing of ‘Growth Agenda: Progress Under Review’ on Sunday, the President said that the previous government’s lack of policy formulation and lack of ideas lead to the ‘complete destruction’ of the country’s economy.
Focusing on the local forestry sector, Dr Ali said it saw a 35 per cent decline in exports, a 40 per cent reduction in production and a significant jobs loss, with employment falling from over 22,000 to less than 14,000.
“Forestry is directly related to some key regions in this country, including Region 10, Ituni, Kwakwani; those residents there can tell you with a clear conscience what took place in their community,” the Head of State said.
He added: “You had one company pulling out its investment. You had another company that curtailed investment because there was no clarity of vision.
“The destruction that took place between 2015 and 2020, created a drag on the economy in Linden and Region 10.”

Due to the hardships faced by many small miners, and several major players exiting the sector, many small operators were unable to produce. At that time, the market had dried up and concurrently, the cost of production increased due to the lack of incentives being provided to miners.
“The export of the total production, which had reached a peak of 500,000 cubic metres annually in 2015 fell to 400,000 cubic metres by 2020… exports of the forestry sector declined by 35 per cent,” the President said.
This, he noted, also resulted in a loss of foreign currency,

“What were some of the policies, some of the interventions by the APNU+AFC government that led to this collapse of the forestry sector? We had the onerous fees and fines that were imposed on small and medium-sized loggers, including Amerindian loggers,” Dr. Ali said.

These fees and fines had increased from $415 million in 2014 to $910 million by 2019.
He said: “Can you imagine that a 118 per cent increase in fees on not large foresters on the small and medium-sized loggers… don’t ever forget this.”

‘THE PROOF IS IN THE PUDDING’
Dr Ali noted that while the coalition, which is now separated and in opposition, it continues its attempt to shy away from its past, while the PPP/C administration is embracing accountability and transparency.
In this regard, the Head of State pointed to the improvements that have been made in the sector, since his administration took office.
He said: “The PPP/C government issued over 150 small concessions and five large concessions. And how did we assist? Remember, 118 per cent increase in fees on small and medium-sized foresters. How did we assist them? When we came back into office, we removed the VAT on machinery and equipment.”

Aside from this, the forestry sector has seen a production increase of $15.6 billion with some 550 small miners occupying 2.5 million hectare of land, and 22 medium-scale foresters who occupied 2.7 million hectares of land.
Employment in the sector has since increased, exceeding more than 25,000 employees, gaining back more than the 15,000 that was lost.
Dr Ali said: “We’re not only thinking about the present, we’re thinking about how we’re going to secure and sustain this sector. Get new markets, higher-paying markets, high-yield markets for our foresters, and that is why we are adopting the highest international standards.”
The government had also introduced a revolving fund to help small and medium-scale foresters.

BAUXITE
Meanwhile, shifting his attention to the bauxite industry, President Ali pointed out that this sector experienced a 40 per cent contraction in production and job losses in Region 10.
“More than 50 per cent of the persons who are employed here in Region 10, primarily from Linden, more than 50 per cent of those employed lost their jobs between 2015 and 2020,” he said.
The President noted, however, that the PPP/C government has since taken several steps to reduce costs, broaden product range, and increase production, with the aim of rebuilding the sector and retaining those jobs that were lost.
He said: “We had to get back that 50 per cent jobs that were lost to re-energise the economy in Linden and Region 10. We went about implementing policies, taking steps that will reduce costs, broaden the product range and increase production. The government had issued additional reserves in Kara Kara, which approximates to 3.5 million tonnes.

Meanwhile, renewed investments by the Bosai mineral group, along with issuance of additional reserves will see production increase by over 250,000 tonnes this year and 400,000 tonnes next year.
The bauxite company has also undertaken the ambitious task of constructing a $470 million aluminium plant.
Dr Ali said: “So, they have made a commitment that will expand production, and with the cost of energy coming down…we’re talking about the future, about the expansion and building of an aluminium plant.”
In 2024, some 500 persons were projected to gain employment and in 2025 another 500 will be added to the workforce with the bauxite sector earmarked for massive expansion.