Barama yet to fulfill conditions under tax and duty concessions

Oct 28, 2008 News

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Despite benefiting from tax and duty concessions, it is disappointing to note that the veneer plant to be set up by Barama Company Limited is yet to be installed, according to Minister of Agriculture Robert Persaud.
Persaud, along with Commissioner of Forestry James Singh and other officials, yesterday visited the company’s Buck Hall, Essequibo River operations.
In expressing his dissatisfaction, Minister Persaud reminded officials from the company that they have entered certain agreements, have benefited, and as such it is expected that they implement their end of the arrangements.
The minister pointed out that he is more interested in the value-added component of the operations.
In justifying the company’s position on the implementation of the veneer plant, Mohendra Chand, an employee within the Forestry Division at Barama, noted that clearing of the area to house the plant had commenced, but the implementation was halted after the company’s consultant advised that the area was too small.
“We got a submission from our consultant on the layout of the veneer plant, and what we have discovered is that the plant is larger than the area we have cleared. So there is more work to be done in terms of land clearing. Some of the equipment for the plant is already here,” he said.
Although the two parties have varying differences on the veneer plant’s implementation, both the minister and the company’s officials yesterday agreed that mining poses a major threat on the sector’s existence and reputation.
Addressing the minister during a briefing, Chand said that the company has asked the Forest Stewardship Council (FSC) to assist them with a policy direction on the co-existence of mining and forestry.
Minister Persaud agreed with the company’s officials that he does ‘passionately’ share their view on the damage that the unregulated and lawless acts in some areas of mining can cause on the reputation of the forestry sector.
He noted that he is aware that, because of unregulated mining, the company’s certification in the last round of audit was delayed.
“We would have to work to overcome that…it is happening in different parts of the country…it has been discussed at Cabinet level…we hope that we can bring greater sanity and control of mining.”
Other concerns that were raised yesterday by the company were the fact that there is insufficient land for a completion of its housing scheme project at Buck Hall.
The present housing accommodation at Buck Hall can house 500 persons, but the company is yet to cater for another 500 employees.
Within the housing scheme area, it is planned that school facilities, along with police accommodation, a recreation area and a market square, will be established.
While acknowledging that he is concerned about the limited land space for the further expansion of the operations to accommodate its employees, Persaud pointed out that the land that is next to the operation, which can be used for such a project, is already taken.
He urged that the company engage the owners of the adjacent land with the aim of addressing alternative arrangements.
While he admitted that he deliberately delayed his visit to the location because of previous challenges as a result of compliance, Persaud noted that the current reports indicate that corrective measures have been undertaken by the company.
Barama employs just about 1500 persons, and has an investment of $16B in Guyana.
During the minister’s visit at Buck Hall yesterday, he commissioned the newly-installed second sawmills.
He also launched two new barges that will complement the company’s current fleet of equipment to satisfy the increased demand for sawn and valued-added forest products. Each barge costs US$1M.
(Tusika Martin) Despite benefiting from tax and duty concessions, it is disappointing to note that the veneer plant to be set up by Barama Company Limited is yet to be installed, according to Minister of Agriculture Robert Persaud.
Persaud, along with Commissioner of Forestry James Singh and other officials, yesterday visited the company’s Buck Hall, Essequibo River operations.
In expressing his dissatisfaction, Minister Persaud reminded officials from the company that they have entered certain agreements, have benefited, and as such it is expected that they implement their end of the arrangements.
The minister pointed out that he is more interested in the value-added component of the operations.
In justifying the company’s position on the implementation of the veneer plant, Mohendra Chand, an employee within the Forestry Division at Barama, noted that clearing of the area to house the plant had commenced, but the implementation was halted after the company’s consultant advised that the area was too small.
“We got a submission from our consultant on the layout of the veneer plant, and what we have discovered is that the plant is larger than the area we have cleared. So there is more work to be done in terms of land clearing. Some of the equipment for the plant is already here,” he said.
Although the two parties have varying differences on the veneer plant’s implementation, both the minister and the company’s officials yesterday agreed that mining poses a major threat on the sector’s existence and reputation.
Addressing the minister during a briefing, Chand said that the company has asked the Forest Stewardship Council (FSC) to assist them with a policy direction on the co-existence of mining and forestry.
Minister Persaud agreed with the company’s officials that he does ‘passionately’ share their view on the damage that the unregulated and lawless acts in some areas of mining can cause on the reputation of the forestry sector.
He noted that he is aware that, because of unregulated mining, the company’s certification in the last round of audit was delayed.
“We would have to work to overcome that…it is happening in different parts of the country…it has been discussed at Cabinet level…we hope that we can bring greater sanity and control of mining.”
Other concerns that were raised yesterday by the company were the fact that there is insufficient land for a completion of its housing scheme project at Buck Hall.
The present housing accommodation at Buck Hall can house 500 persons, but the company is yet to cater for another 500 employees.
Within the housing scheme area, it is planned that school facilities, along with police accommodation, a recreation area and a market square, will be established.
While acknowledging that he is concerned about the limited land space for the further expansion of the operations to accommodate its employees, Persaud pointed out that the land that is next to the operation, which can be used for such a project, is already taken.
He urged that the company engage the owners of the adjacent land with the aim of addressing alternative arrangements.
While he admitted that he deliberately delayed his visit to the location because of previous challenges as a result of compliance, Persaud noted that the current reports indicate that corrective measures have been undertaken by the company.

Barama employs just about 1500 persons, and has an investment of $16B in Guyana.
During the minister’s visit at Buck Hall yesterday, he commissioned the newly-installed second sawmills.
He also launched two new barges that will complement the company’s current fleet of equipment to satisfy the increased demand for sawn and valued-added forest products. Each barge costs US$1M.
(Tusika Martin)

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