PNG puts 2-year ban on new logging leases

NO new logging permits will be

issued by the Papua New Guinea Government for two years in an effort to conserve the forest resources in the country a move which will cost K3O million in lost government revenue. Forests Minister Karl Stack has appealed to major nations and environmental organisations for up to K6O million to back his plan to set aside between 15 and 20 per cent of Papua New Guinea’s 46 million hectares of land as World Heritage areas or national

parks.

Twenty-eight new applications for logging rights have now been put on hold and when the moratorium is lifted in 1992 there will be no permits issued for the export of logs, although firms now exporting will be able to work out the balance of their permit time. Stack said the Government was taking a political and economic risk and its success depended entirely on international aid to compensate landowners and to make up the shortfall in government revenue.

The announcement was made at an international conference on forestry and

the environment held in Port Moresby, Donor organisations at the conference committed Kl 5 million toward the World Heritage project, and other fore stry improvement projects. The Asian Development Bank has made available K2O million as a soft loan if the Govern ment cannot raise all it needs by way of aid contributions.

Six companies which are already in advanced stages of negotiations with the Government will be exempted from the ban. D