Gov’t committed to ensuring forestry companies’ workers not affected

Georgetown, GINA, October 25, 2007.

 Minister of Agriculture Robert Persaud has indicated his willingness to facilitate access to raw materials for the Land of Canaan plywood factory operated by Barama Company Limited (BCL), one of the companies found guilty of breaching guidelines set by the Guyana Forestry Commission (GFC).

            This is in response to BCL’s claim that the immediate suspension of sub-contractual operations of BCL will affected the supply of raw material to its plywood factory. Minister Persaud at a press conference today stated that the arrangement will only be facilitated as part of a transition process that will eliminate any approved sub-contractual arrangement by December 31, 2007.

            “This must however, be done through a process that is based on constructive engagement rather than the manipulation of issues and processes and the issuance of threats and reckless statements,” he said.

            It is to ensure that BCL is prepared to undertake sufficient extraction of Baromalli from its own concession or make other arrangements for sourcing raw materials.  The Guyana Labour Union, which represents the factory’s employees has already been alerted to the situation.

On October 22, the GFC announced that breaches of its procedures were discovered involving Barama Company Limited, Barakat Timber Limited, A. Mazaharally and Sons Limited and N. Sukhul and Sons Limited. The breaches listed were under declaration of forest produce harvested and false declaration with respect to the origin of forest produce harvested.

The GFC outlined the charges to be instituted for the breaches totalling $96, 412, 148.00 payable by BCL as compensation fines and indicated that all-sub contractual operations of BCL with be immediately suspended with those companies.

            Information provided by the Minister indicated that of the total 1,611,195 hectares of forest concession issued to Barama Company Limited (BCL), its current level of utilization is about 20 percent. Based on the annual plan inventory data submitted to the GFC by BCL for 2007, it has been observed that BCL can harvest about 43,000 cubic metres of Baromalli logs that are 40 centimetres and above in diameter for use of  plywood production.

However, the Company’s current extraction is only 14,585 cubic meters as of September 2007 while in 2006, only a total of 12, 319 cubic metres of Baromalli logs were harvested from BCL's concession area.

            According to Minister Persaud, “the figures reflect that BCL is not making maximum use of the extensive acreage leased to it and this is an area of great concern to the GFC and my Ministry.”  

            He noted that the figures have been quoted to emphasize the point that while BCL is claiming that the suspension of the sub contracts with neighbouring concessions would adversely affect its raw material supply, and lead to downsizing of its operation, yet it is under harvesting significantly in the concession issued directly to BCL.

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