Photo credit: Friedrich Stark/ Alarmy
The government intended to implement downstream processing, according to Forestry Minister Walter Schnaubelt, with an emphasis on boosting forestry and plantation.
Schnaubelt recently stated in West New Britain that as part of the government's plan to reclaim the forestry sector, investors would only be awarded 50% of export licences.
“The new permits that we will be giving out will only be 50 per cent for export and the other half must be processed in the country,” Schnaubelt said.
“There will be disgruntled developers because most of them would want 100 per cent export but under the agreement for a permit, it clearly stipulates that 20 per cent must be downstream processing.
“As Forest Minister, I must make a contribution to this sector.
“The buck stops with me.”
Schnaubelt stated that he hoped to see a lot more downstream processing in the province.
“We need investors who will come and work together with PNGFA to invest their capital in this country. This is just one of the initiatives that we are working on at the PNGFA head office but I will soon make announcements on these developments,” he said.
According to Schnaubelt, downstream processing cannot be limited to sawn timber.
“I want some time in the near future that papers and even toilet rolls must be produced in PNG.”
Reference: The National (19 November 2021). “Govt to cut log exports by 50pc”.
