Friday, 11 April 2008 3:53 PM

Determined Price for Log Export

I wish to applaud TSI in voicing the nations concern on the fact that log exporters are corruptly influencing the previous Ministers of Finance to deliberately under value their exports. As stated by TSI this is done through setting a determined export price that is far lower than the market price. May I urge TSI to further request Customs, Forestry, and whoever is responsible for tax policy to reveal these market prices and the determined prices? May I also urge the officials to be willing to give information on the basis of anonymity? This is a national concern that needs to be scrutinized. Please officials if your recommendations have not been executed by the relevant Ministers, voice out to TSI.

A resource that is about to be depleted is becoming scarce. According to simple pricing mechanism, this resource should attract high price either through market negotiation or Government policy. Similarly that resource should also be harvested in conservative and controlled manner. Sadly the opposite happens in our forest resources. With the current stock which has been estimated to last less than ten years it can be said that the forest is increasingly scarce. The rate of harvest should now be controlled and the price increased. Because of loggers' strong influence, however, the practices are contrary to market reasoning and good policy logic. The public should continue put pressure on the current Ministers of Forest and Finance to reverse the trend and help raise the earnings from the remaining stocks.

Disclaimer: The views and opinions expressed in this letter/article are those of Judas Gelu and do not necessarily reflect the official policy or position of Solomon Times Online.

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