PricewaterhouseCoopers (PwC) has been engaged by the Papua New Guinea Forest Industries Association (PNG FIA) to undertake a review of the economic contribution of the forestry industry to the PNG economy. This review has looked to analyse the key areas where the forestry industry is making a significant contribution to the PNG economy.

This review is intended to be used by PNG FIA to support its argument against the introduction of additional taxation on its members and attempts to quantify the ability of the industry to bear additional taxation. Furthermore, the review has looked to identify the additional, non monetary benefits associated with forestry throughout the PNG economy. . . [more]

On behalf of the PNG Forest Industries Association, I have pleasure in attaching a paper with proposals the Australian Government may wish to consider under the Global Initiative on Forests and Climate. . . [more]

Executive Summary

The Papua New Guinea Forest Industries Association (PNG FIA) welcomes the Australian Government’s Global Initiative on Forests and Climate (GIFC). Papua New Guinea's (PNG) forest conditions are unique. GIFC projects need to reflect PNG land tenure, legal, policy and institutional arrangements and realities.

Forest cover in PNG has been quite stable since Independence. Landclearing reflects population pressures (particularly in the Highlands) and for agriculture. PNG’s forest endowment is not under threat from commercial forestry. . . [more]

The Australian Government’s GIFC initiative is important and timely. I welcome the opportunity to give the PNG forest industry’s perspective on mobilising private sector investment.

PNG does not have a significant deforestation problem. There has been some deforestation, particularly in the Highlands. This reflects population pressures. As a developing country, a modest area of PNG’s significant forestry endowment has also been cleared for agriculture. . . [more]

Commentary on Aid and the Environment: Building Resilience; Sustaining Growth. A framework for an environment strategy for Australian Aid. . . [more]

Ownership of almost all forested land in PNG remains with the traditional landowners and access can only be gained to these after Government has negotiated and agreement with these landowners. . . [more]

In recent years, several Papua New Guinea (PNG) and international environmental non¬governmental organizations {ENGOs) have spearheaded an aggressive campaign to stop commercial harvesting of timber in Papua New Guinea. The ENGOs have argued consistently that all commercial harvesting of timber in PNG is both illegal and unsustainable. As a result of these campaigns, market access for PNG's wood products, especially in the United Kingdom and Australia, is threatened. . . [more]

Senator Eric Abetz, Australia's Minister for Fisheries, Forestry and Conservation, in his foreword to the discussion paper Bringing down the axe on illegal logging (Australia 2006), states that there are 'significant volumes of illegally sourced timber and timber products that continue to be imported into this country [worth] an estimated (over) $400 million'. The Finnish consultancy firm, Jaakko Poyry Consulting (JPC), provided this estimate in their report to his Department Jaakko Poyry Consulting 2005). . . [more]

lllegal logging has been heated up by Greenpeace and WWF to become the latest issue in the long running campaigns to create a global convention on forestry and weaken the World Trade Organization (WTO). . . [more]

SGS has designed a service geared at assisting both forestry and wood processing companies achieve market regognition for their efforts to imporve forest management standards under their control and assisting companies trading in 'legal' timber products. . . [more]

Presentation by Bob Tate
Executive Officer, Papua New Guinea Forest Industries Association
Regional Seminar on Forest Law and Governance
Holiday Inn, Port Moresby - 10 – 11 October 2006

PNGFIA represents eighty-five percent of PNG’s forest industries. All members of the Association comply fully with PNG laws and regulations governing forestry.

We employ 10,000 people and provide infrastructure in rural areas, including health and education facilities, which otherwise would not exist. . . .[complete presentation]

Greenpeace tactics have many seeing red

24 January 2007: Environmental warriors should know that war has rules, writes Alan Oxley. Greenpeace loves controversy. It's a modern day Robin Hood riding inflatable boats instead of horses and shooting videos instead of arrows. More...

Source: Forestry and Development E-News

Australian government refuses NGO calls for tropical timber ban

2 November 2006: In a draft policy paper, the Australian government has produced a list of measures it is planning to undertake to tackle the issue of illegal logging. Despite the pressure from green NGOs such as Greenpeace, the discussion paper rules out banning imports of tropical timber from countries such as Papua New Guinea (PNG) and the Solomon Islands. Instead, it focuses on voluntary industry measures, and supports a government review of forest certification schemes. More...

Australian Treasury rejects NGO allegations against ANZ

20 October 2006: The Australian Treasury has ruled that ANZ has no case to answer in an NGO complaint which asserted that, by having financial links to Rimbunan Hijau, ANZ is breaching various OECD Guidelines. The complaint was lodged by a consortium of NGOs (including the Australian Conservation Foundation, CELCOR and Human Rights Council of Australia), and made references to 'respect of human rights' and 'contribution to economic, social and environmental progress'. More...

World Bank allegations against PNG lacking evidence

16 September 2006: The World Bank has published Strengthening Forest Law Enforcement and Governance - Addressing a Systemic Constraint to Sustainable Development, a report which estimates the effects of illegal logging in developing countries. The report claims that an estimated 70 per cent of Papua New Guinea's total forest production is illegal, but the claim lacks evidence. More...

Greenpeace criticised in The Australian

16 September 2006: The Australian has published "A skewed vision from team green", an article by Alan Oxley on commercial forestry in Papua New Guinea. The article exposes to the lack of evidence supporting the claims of human rights abuses in the industry, made in the report recently released by CELCOR and Australian Conservation Foundation (ACF). It also points to the need for forestry companies operating in remote areas to call in police forces to keep order, refuting CELCOR-ACF insinuations that forestry companies are responsible for distribution of arms throughout PNG. More...

Greenpeace and WWF respond to ITS Global report

August 2006: Greenpeace International and WWF South Pacific have posted separate responses to Whatever it takes: Greenpeace's anti-forestry campaign in Papua New Guinea, a report by ITS Global. Greenpeace has challenged the independence of the report, citing the fact that the report was commissioned and paid for by Rimbunan Hijau. It also disputes the claim that its policies impede development in PNG, and maintains the claims of illegality and human rights abuses in the PNG forest industry. To support these allegations, Greenpeace produces a list of sources used in its previous reports (which were dealt with by ITS Global); no new evidence is provided. More...

NGOs target ANZ for its association with Rimbunan Hijau

23 August 2006: A five-member coalition of Australian and PNG NGOs has filed a formal complaint to the Organisation for Economic Cooperation and Development (OECD) against the ANZ Bank over the latter's relationship with Rimbunan Hijau. ANZ is accused of being complicit in the alleged environmental and social damage caused by RH, thus breaching OECD Guidelines for Multinational Enterprises. The claims largely rely on evidence discredited by ITS Global. More...

PNG forest industry abusing human rights, says AFC

7 August 2006: The Australian Conservation Foundation (ACF) has produced a report which accuses the commercial forestry sector in Papua New Guinea of causing 'spiralling abuse of civil, political, economic, social and cultural rights'. The report, Bulldozing progress: human rights abuses and corruption in Papua New Guinea's large scale logging industry, recycles material from papers by Greenpeace attacking the PNG forestry sector. More...

New report highlights the importance of commercial forestry in PNG

26 July 2006: A new report has found that commercial forestry is a consistent contributor to growth in Papua New Guinea and could play a larger role in development in the future. The Economic Importance of the Forestry Industry to Papua New Guinea, produced by ITS Global, marks a first attempt to estimate the economic value of the infrastructure created by commercial forestry in PNG.

The findings contradict claims by Greenpeace and other Green NGOs that commercial forestry in PNG is economically unviable and provides little economic value. The report found that the industry employs 10,000 people, contributes 5 per cent to GDP and a quarter of a million dollars each year in exports. Export taxes on logs account for 3 to 6 per cent of all tax.

At the regional level, the impact of the industry includes the provision of roads, air fields and services, wharves, schools and medical clinics for the local populace. A case study of Western Province indicated the industry doubles the amount of infrastructure provided by the provincial government. The report also found that the industry could contribute more if property rights, taxation and institutional arrangements and economic policies were improved. The study provided evidence that eco-forestry (promoted by Greenpeace as a replacement for commercial forestry) is currently commercially unviable in PNG.

The report was commissioned by Rimbunan Hijau (PNG) Group, the largest forestry operator in PNG, to assess the current and potential economic significance of forestry in Papua New Guinea. To see the report in full, click here.

PNG accused of transfer pricing, but evidence lacking

20 July 2006: A news article in The Australian has accused the Papua New Guinea forest industry of engaging in transfer pricing, resulting in the loss of A$100 million a year in tax revenue for the PNG government. However, the news item fails to provide adequate evidence for the claim, citing only the difference in export prices of timber from PNG, Malaysia and western Africa. Other factors influencing export prices have been ignored, and the allegation of an A$100 million tax revenue loss is referenced to unspecified "industry sources". The PNG Forest Industries Association has denied the claim.

Greenpeace campaign against forestry in PNG laid bare

15 July 2006: ITS Global has released a report which reveals that a campaign run by Greenpeace against Rimbunan Hijau (the largest forestry company in PNG) is baseless. Greenpeace claims that Rimbunan Hijau's logging is illegal and is destroying the environment. It also claims that the company abuses human and labour rights, and is engaged in corruption. None of these claims can be substantiated.

ITS Global was commissioned by Rimbunan Hijau to review Greenpeace's claims and assess them. Whatever it takes is an exhaustive and detailed analysis of the claims. To access the full text, click here.

Greenpeace climbs building in protest

12 July 2006: Greenpeace has staged a 12-hour protest on top of the UK government's Cabinet Office building, claiming that the latter is being refurbished using timber from Papua New Guinea. Greenpeace has long asserted that commercial forestry in PNG is illegal. More...

Skewed vision from team green
Alan Oxley says Greenpeace is using misleading claims to cut down logging
“The Australian” September 16, 2006

GREENPEACE is running a campaign that is raising eyebrows. It is accusing one large company of rape, enslaving its workers, abusing human rights, employing police brutality and corruption. In the worst criticism Greenpeace heaped on Shell over oil drilling in the North Sea and on Monsanto for developing and selling genetically modified oilseeds, it never resorted to such abuse. So who is the target now? . . [complete article]