Stakeholders in New Zealand have accused Malaysian timber giant Samling of boycotting local efforts to build up a wood-processing industry.
Samling Global Limited is the parent company of Barama Company Limited which is the holder of the largest forest concession in Guyana. Barama was granted a lowland, mixed tropical forest concession for approximately 1.6 million hectares in the Northwest region of Guyana and has been here since 1991. It is currently seeking a renewal of its operations agreement which expires in October this year.
The company has also been accused of exporting large quantities of logs from Guyana and its plywood production has fallen in recent times.
In 2010, Samling was cited for “extensive and repeated breaches” here and in Malaysia, resulting in its exclusion from Norway’s state pension fund, one of the world’s largest sovereign wealth funds. However, Barama had rejected the report about its activities here and Norway’s Ministry of Finance subsequently said that the concerns about Barama’s activities in Guyana relate primarily to past events.
In a recent statement related to the case in New Zealand, the Bruno Manser Fund reported that local stakeholders in the East Coast region of New Zealand’s North Island have lodged a complaint against the Samling Group with the Forest Stewardship Council (FSC), an international body that issues sustainability certificates to timber operators.
The company’s operations in the area had benefitted from FSC-certification since 2005 and was re-certified last year.
Samling is accused of boycotting local efforts to build up a wood-processing industry and failing to provide sufficient economic opportunities to one of New Zealand’s economically weakest regions. The report said that Samling is being criticised for exporting the bulk of timber harvested in New Zealand as unprocessed logs.
“Despite being a key player in the local timber business, the Malaysian group has consistently refused to provide timber at market rates to a new wood-processing facility built up by the Gisborne District Council, the Eastland Community Trust and Activate Tairawhiti in a joint effort to revive the local economy,” the report said.
It pointed out that according to FSC principles, a timber operator is required to enhance local communities’ social and economic well-being and should maintain and enhance long term economic, social and environmental benefits from the forest.
It was reported that Samling operates a 25,000 hectare forest farm planted with North American Pinus radiata trees in the Gisborne region. During the 2013-2014 harvesting period, it cut 780,000 tonnes of timber, of which 97% were exported as unprocessed logs. The plantation has been FSC-certified since 2005 and was recertified last year by the Rainforest Alliance.
According to Carrick Graham, spokesperson for the complainants, FSC have acknowledged the receipt of the complaint. Samling’s Hikurangi Forest Farms Ltd is currently expected to reply to the complainants, according to the FSC Dispute Resolutions system.
In case of non-compliance with the FSC principles, Samling may face a loss of its certification. The report noted that in 2007, Samling lost the FSC certification for its operations in Guyana. Later on, the company was fined for illegal logging and blacklisted by the Norwegian Government Pension Fund.
