Decree to benefit the Mahogany Industry

Submitted by TemoL on Thu, 04/03/2010 - 7:33am

Cabinet has approved the promulgation of the Mahogany Industry Development Decree 2010 after a submission by the Attorney-General Aiyaz Sayed-Khaiyum.

Mr Khaiyum said over many years, the mahogany industry has been grossly mismanaged and this resulted in minimal or negative returns for all the stakeholders in the industry.

He said as a result of inherent inefficiencies and systemic obstacles, the Fiji Hardwood Corporation Limited (FHCL) has failed to operate in a profitable manner.

“The mahogany landowners have also not been able to gain any substantial returns from the harvest and sale of mahogany timber, as a result of a variety of impediments within the Fiji Mahogany Trust (FMT) and the Native Land Trust Board (NLTB).

“The problems facing the industry have been further exacerbated with constant legal battles over mahogany leases, forest and other licences, ownership and use of mahogany land, and claims against FHCL over sale or supply of mahogany timber.”

Mr Khaiyum said given the administrative, bureaucratic and legal hurdles that have besieged the industry for years, Cabinet, in 2008, had agreed to the implementation of a new mahogany industry direction, with a view to ensure that the returns to landowners from the mahogany industry is enhanced.

He said the Mahogany Industry Development Decree 2010 is a result of a thorough review of the existing establishment.

Mr Khaiyum said the Decree seeks to implement a transparent, efficient and result-oriented regime, which will ensure that the mahogany industry is further and better developed, having regard to the interests of all stakeholders, including the landowners, in order to ensure that the mahogany industry is able to provide suitable and sustainable returns for the betterment of the economy and the people of Fiji and creating a distinct brand of Fijian Mahogany.

“The system in the Decree will ensure that landowners are allocated a larger share of the proceeds of sale of mahogany timber and will enhance value-adding in the mahogany industry.

“It will also give a wider range of businesses access to mahogany revenue and thereby creates employment and specialisation.”

He said the Decree establishes a new Mahogany Industry Council to supervise and direct the maintenance and development of the mahogany industry in Fiji, and in particular, to direct and supervise FHCL and the FMT in the performance of their functions.

Mr Khaiyum said the Decree will cover any native land or State-owned land, which is used or will be used for growing mahogany trees, as ‘mahogany plantation land’, and will also include any land specified by regulation to be mahogany plantation land.

He further said under the new regime established by the Decree, the Mahogany Industry Council will have express powers to direct the maintenance and development of the mahogany industry and shall also direct and supervise FHCL and the Trust in the performance of their functions.