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Contents : http://www.pomcci.org.pg/hiri2001/PNGFIA.doc PNGFIA FOREST INDUSTRY PLAN 2001 - 2036 MORE TREES MORE INVESTMENT MORE JOBS MORE RURAL DEVELOPMENT PNG Forest Industry Development Plan 2001-2036 1 PNGFIA FOREST INDUSTRY PLAN 2001 2036 OBJECTIVES to ensure an economically viable and sustainable timber industry in PNG within an environmentally acceptable framework by improving its competitiveness enhancing market access creating trade opportunities and to provide incentives for investment in industry to halt the decline of the existing industrial base through the erosion of investment capital due to impediments as unsustainable and discriminatory taxation burdens lack of rural infrastructure development and maintenance and a lack of reinvestment by PNG back into the forest sector PNG Forest Industry Development Plan 2001-2036 2 BACKGROUND Why a Timber Industry Most Papua New Guineans regard forest products as essential to their lives. 1. Everyone has timber in their homes and work places both as a building material and as furniture 2. There is a wide use of a range of paper products - in books magazines newspapers writing papers tissues and packaging Timber is a natural renewable energy efficient resource. Forest industries provide employment services commercial viability for rural areas Wood it is an increasingly strategic resource for tomorrow Nature of PNG s Wood Resources Today The three wood resources currently available in PNG are all different. They all require different processes to produce wood products which in many instances supply different markets. They are: Natural forest resource characterized by a high diversity of species Regrowth from logged over areas and/or natural regeneration Plantation resource Performance of PNG Timber Industry - Facts and Figures Refer to attached tables. For example: half of world s roundwood production still used for fuel a similar situation exists in PNG Global opportunities for PNG Forest Products Industry Thinking globally and acting locally will provide opportunities for the forest products industry to expand and actively participate in global economy through development of major export markets to rest of world only if : 1. PNG must become more aware of its role in the global economy. It cannot afford to continue to have isolationist policies on forests 2 There is further development of PNG forest practices in order to achieve sustained management of natural forests PNG and Global Wood Economy Supply and Demand Significant reductions in availability of wood from major traditional areas of supply and increasing globalization in trade of forest products will have significant consequences for PNG within next five to ten years There will be a significant shortfall in global wood supply within next decade 1 Softwood shortfall expected to reach over 400 million m3 per year by 2010 and hardwood by over 140 million m3 per year by 2010 2 Reflection of rising demand through population growth and increasing prosperity particularly in Asia which imposes a radically different regional demand for wood products than previously existed 3 Reflection of divergence of surplus wood into structural and wood pulp markets Inadequate forest management practices will lead to dramatic reductions in supply of timber PNG Forest Industry Development Plan 2001-2036 3 PNGFIA FOREST INDUSTRY PLAN VISION Key Elements 1 Technological innovations and market changes will provide PNG with a significant opportunity to increasingly utilize natural hardwoods (native and plantation origin) to manufacture a wide variety of domestic and export products many of which will be new and innovative. This will greatly add to the future value of log supplies from natural and plantation forests 2. Development of a timber industry board thereby providing a mechanism for the provision of advice to Government on policy issues related to development of the timber industry 3. Improved commercial results and investment attractiveness of forest industries through favorable government policy decisions and actions 4. Resource security essential to future of a competitive wood and wood products industry based on natural and plantation forest resources 5. Administrative reforms 6. Industry reforms 7. Resource owner reforms 8. Expansion of forest resource through plantations through investment strategies and earmarking of revenues for resource replacement 9. Protection of other forest values by providing support and earmarking of revenues for conservation issues and sustainable forest management practices 10. Promotion of an expanded and skilled workforce 11. Creation of a positive future for people and communities dependent on forest industry PNG Forest Industry Development Plan 2001-2036 4 GAINS FROM THE PNGFIA FOREST INDUSTRY 2001 2036 an increase in value of forest products product

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