SI faces a bleak future

THE plight of the logging industry in Solomon Islands mirrors that of its PNG counterpart.

But the implications for the islands nation may be even worse. With log exports accounting for as much as 70 per cent of the country’s foreign earnings, the immediate future looks grim. The market mainly in Japan and Southeast Asia - has been in decline since July last year to the point where little if any new felling is now

taking place.

The country’s oldest - and one of its biggest - logging companies, Allardyce Lumber Company Ltd has been forced to lay off 10 expatriates (one of whom had been with the company in the Solomons for 30 years) as well as substantial num bers of local staff. Adding to concerns in both countries is the possibility that

Indonesia will be forced to resume round log exports to overcome its currency and economic crisis. Indonesia has a mas sive 5.9 cubic metres of round rogs stock piled. In the absence of domestic buyers, Jakarta may be forced to resume exports suspended in 1985. If that happens, indus try sources say, the PNG and Solomon Islands industries could well disappear with disastrou s consequences for both nations’ economies.

Even the traditional rise in demand in the northern spring is unlikely to kick-start the islands industries if Indonesia does re enter the fray, reducing PNG and Solomon Islands to niche markets for specialist tim bers. While most of the big operators in Solomon Islands have moth-balled their plants worth many millions of dollars, some observers don’t see the future as completely gloomy. “At least this will

weed out the fly by nighters,” said one insider. “If the market does pick up - and it will never again be as it was - it will be the established operators who will be in a posi tion to resume operations right away. In a smaller market there will be no room for the cowboys who have given the industry a bad name over the years.” Already the impact of slashed log exports is being felt.

Shippers report reduced freight to and from the outer islands where many of the logging concessions are located as the absence of the weekly pay packet hits local traders and islands residents.

“Trade store operators are obviously ordering less,” said one shipping company director. “You have to remember that as well as foreign earnings, timber was also responsible for a big chunk of local income in the form of workers’ pay. “I don’t see it getting any better very soon.” ■