Papua New Guinea Forest Authority Misleading Public on Logging T

["greenbase" <greenbas@gb.greenpeace.org>]

GREENPEACE CATCHES FOREST AUTHORITY IN MISLEADING THE PUBLIC ON
THE LOGGING TAX.

Papua New Guinea, March 13, 1998 - A proposal to reduce the
export log tax by 20% will be an environmental and economic
disaster for Papua New Guinea, said Greenpeace today.

Greenpeace has released a leaked Papua New Guinea Forest
Authority (PNGFA) memo that proposes relief measures for the
forest industry including a reduction in the export log tax.
The memo contradicts public statements made earlier in the week
by the Forest Authority.

Greenpeace's Brian Brunton says that these proposals by the
Forest Authority are simply bowing to pressure from the logging
companies who want the PNG government to do away with the export
tax in light of the recent Asian economic crisis. "Let us be
clear, that giving into the logging companies will do absolutely
nothing to look after the forests or economy of Papua New
Guinea", he said. "The Forest Authority is telling one story to
the public and another to the government."

The log export tax was imposed by the PNG government as a means
of generating income and to encourage the development of local
sawmilling operations. The Government of PNG is reported to 
be in favour of the tax remaining in place but is under pressure
from its own Forest Authority and now the World Bank. The Bank
has changed its position and now supports relaxation of the tax 
under certain conditions. 

The leaked memo highlights inconsistencies in public statements
made by the PNG Forest Authority earlier this month in a
newspaper advertisment. The Forest Authority had assured the 
public that it had no intention of relaxing the species allowed
for export as logs, and that there would not be exemptions
granted on any royalties or levies. However the leaked memo
shows that this is exactly what the Forest Authority is
recommending be done.The memo also recommends reductions in the
log export tax and that money owed to landowners by the logging
companies be excluded as part of the relief measures.

'Any support for a relaxation of the tax is a sellout and if the
Forest Authority and the World Bank really had the interests of
the forests and Papua New Guinea's economy at heart , rather
than the logging companies then they would not be recommending
this"Brunton said. "The Papua New Guinea government has got to
show some leadership on this and keep the tax in place. This is
the only way to ensure some viable future for our forests". 

Greenpeace on the Internet at http://www.greenpeace.org