Chapter 11. Forest Sector Policy Making and Implementation

Hartmut Holzknecht

Martin Golman

Table of Contents

Policies at independence
The legal framework for forest exploitation had three main elements:
Policy making since independence
Policy implementation
The new reform agenda
Overview and conclusion
References

The total forested area of Papua New Guinea is estimated at around 36 million ha. (Louman and Nicholls 1995, 155). Of this, an estimated 13.5 million ha. is regarded as potentially commercial ‘production forest’ (Filer 1997b, 225). Exported forest products, particularly unprocessed logs, provided some 18.6 per cent of export earnings in 1994 but there has since been a steady decline in both the FOB value and the volume of forestry exports. While the reported 1993 timber harvest of 3.5 million cu.m. was said to be at the estimated sustainable yield nationally (Duncan 1994), logging in certain areas was well in excess of the sustainable yield, especially in West New Britain and New Ireland.

Traditionally, the forests of Papua New Guinea have been an important part of the production systems on which most people depend for their sustenance and livelihood. The high rate of logging, both controlled and uncontrolled, seriously threatens not only environmental stability in some areas but also species endemism. While there are millions of hectares of forest accessible for timber extraction, the diversity of tree species and the low density of commercially known species in accessible areas makes commercial exploitation problematic.

Three main factors underlie the difficulties of managing Papua New Guinea’s forest resource. First, not enough is known about the ecological requirements of commercial timber species. Hence it is difficult to estimate a sustainable rate of logging, whether overall for a mixed forest or for individual species. Secondly, the volume of exploitable species per hectare is small and many species are virtually unknown in world markets. Thirdly, virtually all land (more than 97 per cent) is owned and inherited according to customary practice; thus the power of the state to control and manage land use is limited.

Policies at independence

The colonial administration recognized customary land tenure systems and customary ownership of trees and forests but was not particularly interested in finding ways in which customary owners could participate in forestry development, except as employed labour. Charles Lane-Poole, as forestry adviser to the Commonwealth government from 1922 to 1924, was an early visionary who saw the value Papua New Guinea’s forests could have for commercial timber and for conservation. A report prepared by Lane-Poole in 1925 recommended a policy to regulate access to forests; this was not implemented at the time, but a gold rush in the 1930s and resulting exploitation of the forest eventually produced a forest ordinance.

John McAdam, the first director of Forests, obtained approval in 1948 for a forest resources survey, a program of forest reservation, research and management, a working plan for forests, and approvals for staff training (Carson 1974, 6). Three years later, Percy Spender, the then Australian minister for Territories, issued the first comprehensive forest policy statement, which placed emphasis on the production of sawn timber for post-war reconstruction and on the clearance of land for agriculture.

His successor, Paul Hasluck, made a further policy statement in 1957, which became the basis for a five-year program, 1968–1973. Included in this were the acquisition and reservation of a permanent forest estate, of 4 million acres within ten years and 10 million acres within twenty years; establishment of a forestry training centre, a forest research institute, and botanical collections and identification; research on timber utilization and preservation; and a reforestation program (including the reforesting of the extensive highlands grasslands). Subsequently the administration saw a need for forestry development, to generate revenue with a view to the eventual independence of the colony (Downs 1980).

The colonial policy for the extraction of timber from customarily-owned (‘native’) forests was developed over time through the mechanism of a ‘timber rights purchase’ (TRP) agreement, which was a way of purchasing so-called ‘timber rights’ from customary owners of forests, but not alienating the land. Virtually all logging companies in the colonial period were Australian-owned or Australian-based. Some of these did a degree of processing locally, but most timber was exported as round logs.

The legal framework for forest exploitation had three main elements:

Timber Rights Purchase (TRP). Under this arrangement the state acquired timber rights where customary owners were willing to sell. The state then issued a permit or licence to remove the timber on agreed terms and conditions, including the payment of royalties, a portion of which was passed on to customary owners. The TRP arrangement was intended for large-scale exploitation and was managed by the Department of Forestry.

Timber Authority (TA). Timber authorities could be issued, on payment of a fee, to enable any person to purchase a very limited quantity of timber directly from a customary owner. Without a TA no one other than a Papua New Guinean could purchase forest produce from a customary owner. However, there was no management control over TAs other than limitation on the quantity of timber purchased.

Forestry (Private Dealings) Ordinance, 1971 (which became an act in 1974). This enabled customary owners to dispose of their timber to whomever they wished, provided that (a) the interests of the owners were protected, (b) there was no conflict with national interest, (c) prospects for economic development were considered, and (d) the administrator gave his approval (Carson 1974, 11–12; also see below). At the time, many forestry officers were concerned about these private dealings, since their impact was diametrically opposed to proper management of the forest resource.

Forestry policy at independence was based on a 1973 National Forest Policy document, which clearly recognized of the customary ownership of forests and the need to link forestry development to national needs. Its main features are summarized below:

  • To have the forest resources of Papua New Guinea managed as a national asset in the interests of the present and future generations of the people (who are the forest owners);

  • to preserve, develop and maintain through reforestation such forest areas as will enable domestic needs to be met as far as possible and is warranted, and will also enable full advantage to be taken of export opportunities;

  • to accept the need for protection and management of watersheds, control of soil erosion, conservation of animal and plant communities, and the use of forests for recreational and other indirect benefits;

  • to encourage the development of permanent forest industries and to provide opportunities for the forest owners to become involved in these industries;

  • to promote research into forest technology in order to improve the efficiency of forestry and forest industries, to reduce imports and increase export earnings, and to improve the social and economic benefits to the nation and the forest owners;

  • to promote education in all branches of the forest industry and to encourage a better understanding by the people of the value of their forests in both their own and the national interest;

  • to provide the laws, the organisation and funds to manage effectively the country’s forests having regard to overall development policies and forestry’s ability to compete successfully with other demands on the nation’s resources (Carson 1974, 7–8).