issues warning

Solomon Islands

Bank governor MHHI

THE governor of the Central Bank of Solomon Islands, Rick Hou, says the country’s dependency on log exports is a major weakness in the national economy and warns that this weakness will get worse if the situation is allowed to continue.

Hou made the remark while releasing the Central Bank’s 1993 annual report in Honiara. He said log production rose by another 20 per cent in 1993 following a huge increase of 80 per cent in 1992. Hou said exploitation of logs in the country is now running at well over twice the sustainable rate, while prices for round log exports doubled in 1993.

He said during the year, Solomon Islands exported logs worth $69 million, accounting for well over half the country’s total export value. This was the first time since the 1960 s that the export base has been dependent on a single commodity. He said this clearly runs counter to the longer term aim of establishing diversified export base which is capable of providing sustainable export growth. Hou added the main problem with the present level of logging activity is in the long term damage done to the forestry sector itself. 181 public servants made redundant THE Solomon Islands government is prematurely retiring the 181 public servants in what used to be the government printery, government supply department and the water unit.

The three organisations have been corporatised under the government’s privatisation and corporatisation policy.

Solomon Islands Broadcasting Commission says the new corporations, namely the Solomon Islands Water Authority, the Solomon Islands Supplies Limited and the Solomons Islands Printing Limited, could offer employment to employees they may wish to retain. The Solomon Islands government information service says those who are not offered any employment with the three new corporations will get redundancy payments.