The Ministry of Natural Resources today said that the loss of jobs at forestry company Barama Company Limited (BCL) is not connected to ongoing discussions about the possible renewal of its contract.
In a statement, the Ministry was responding to a report in today’s Stabroek Business which said that the lack of clarity on the way forward with the contract could lead to hundreds of employees being sent on the breadline and that 70 were sent home yesterday. The report was based on statements by General Secretary of the Guyana Trades Union Congress, Lincoln Lewis.
In its statement, the ministry said that the facts are that the Malaysian-owned Barama Company Ltd has been continuously informing it and the Guyana Forestry Commission about its loss of market share in Asia which is affecting its profitability, and challenges caused by bad weather.
“The Ministry of Natural Resources rejects any assertion that the loss of jobs is tied to the renewal of Barama’s contract and calls on the company to set the record straight”, the statement said.
It noted that in 2015, at the request of BCL for a continuation of its contract with the government that is due to expire in 2016 October, Cabinet gave its ‘no objection’ to the continuing of the relationship. The statement said that at the same time, Cabinet recommended the convening of a Task Force to examine the request. This Task Force was seen as necessary given the “rapacious activities” of some foreign companies operating in the forests of Guyana, and “some not so positive observations that had been expressed about Barama in particular”, the statement said.
As such, the Task Force was composed of representatives of the Ministries of Business, Natural Resources, Public Infrastructure and Indigenous People’s Affairs, the Guyana Revenue Authority, the Guyana Forestry Commission and a Legal Consultant.
The statement said that the Task Force met on several occasions and visited the BCL operations at Buckhall, Essequibo. Thereafter, the Legal Consultant began reviewing the existing contract, forest concessions, and tax incentives previously granted the company while other members of the team evaluated issues such as workers’ rights, value added operations and environmental management practices among others.
The statement declared that the government takes the “responsibility of workers’ welfare and rights very seriously and asks for their understanding and forbearance whilst the matter is being addressed”.
The statement said that it is the Task Force’s intention to have the final proposal for Cabinet’s review and approval before September 30, 2016.
BCL has control over 1,611,195 hectares (3,981,349 acres) of state forest in the north west of Guyana and when it entered the market here in 1991 was meant to be predominantly engaged in value-adding via plywood. However, for a number of years plywood has been on the downswing and the company has been engaged in the exportation of a significant amount of logs. This has raised queries about the ongoing arrangement particularly as the end of the 25-year contract approaches.
BCL was one of the major investments attracted by the Desmond Hoyte administration and it presently employs around 700 persons. One of its original owners Sunkyong of South Korea sold its interest to its joint venture partner, Samling of Malaysia.
