Sawmillers, dealers without concessions now allowed to export logs

– as Govt revises National Log Export Policy

The People’s Progressive Party/Civic (PPP/C) Government has announced changes to the National Log Export Policy, paving the way for licensed timber dealers and sawmillers with Guyana Forestry Commission (GFC) to also export logs, regardless of whether they own a concession.

The Guyana Forestry Commission

According to the GFC, the changes take effect from today and will not negatively impact on the sustainable management of the forests, for which Guyana has in the past earned carbon credits and global plaudits.
The GFC explained that the previous clause of “only concession holders will be allowed to export logs” has been replaced by “concession holders, sawmillers and timber dealers will be allowed to export logs.”
In order to qualify, these operators must be in good standing with the GFC and have an export value of forest products of at least $10 million over the last three years. New operators will be eligible when their forest products reach an export value of $10 million over a period of one to three years.
“All legal requirements are to be strictly followed and all revenue owing to the GFC in terms of royalties for production and export levies have to be paid prior to export,” GFC went on to explain in a notice.
“GFC will charge an annual licence fee of US$500 for the granting of a log export licence to applicant who meet the requirements for such a licence. This clause does not apply to concession holders, who are exporting logs from their own concessions.”
Back in September when he was presenting the 2020 emergency budget, Public Work Minister Juan Edghill had announced that the Government would amend the log export policy to allow sawmillers to export logs. According to Edghill, this will be a boost to the industry’s production and revenue.
Edghill had announced that during the period of 2014 to 2019, the forestry sector contracted by more than 30 per cent. He had noted that at the end of 2014, the GFC had a surplus of some $211 million.
By 2019, after four years of the A Partnership for National Unity/Alliance For Change (APNU/AFC) Government, this had plummeted to a surplus of $2.3 million. The depleted state of the GFC is coupled with the reduction in exports, from US$53 million in 2014 to US$34 million in 2019.
“The downturn in this industry over the last five years, caused by poor policies, has, in turn, resulted in the deterioration of logging roads, since investors, like Barama Company Limited, that maintained some key hinterland infrastructure, exited the industry, due to bad policies under the previous Administration,” Edghill had said in his budget speech.
“The complete disregard for this industry by the APNU/AFC has crippled many hinterland communities that are dependent on this resource for their livelihood. At the same time, the GFC, a once profitable and efficiently run agency, has, under the APNU/AFC Administration, become financially distressed – being unable to pay basic salaries and other operational expenses,” he had also said.
This is a reference to the situation the GFC found itself in when APNU/AFC finally left office in August. The Commission was unable to pay staff or fund critical operational costs for several months. In addition, workers were not paid their 2018 bonus, in 2020.
Soon after taking office, the President Dr Irfaan Ali-led Government was forced to disburse $350 million to support the GFC, while also promising that outstanding bonuses will be paid by this year-end.