PNGAF MAGAZINE ISSUE # 9D 2 of 15th October 2021 THE DEVELOPMENT OF PNG'S FOREST MANAGEMENT SYSTEMS

AUSTRALIAN FORESTERS in PAPUA NEW GUINEA 1922-1975

PNGAF MAGAZINE ISSUE # 9D2 of 15th Oct. 2021 THE DEVELOPMENT OF PNG’s FOREST MANAGEMENT SYSTEMS Challenges, Causes for Concern, and Policy Issues of Rainforest Management

Middle Ramu Rainforest. Photo credit Dick McCarthy.

Mile a minute vine. Rainforest recovery after harvesting. North Coast PNG near Wewak. Photo credit Dick McCarthy.

Gogol Bridge June 1970.

Photo credit Ian Whyte.

Hoskins Oil Palm Development New Britain 1995. Photo credit Dick McCarthy.

Stages of Gardening and induced regrowth. Gogol TA Madang.

Photo credit Ian Whyte 1971.

Editor R B McCarthy1 2021.

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Dick McCarthy District Forester TPNG 1963-1975.

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TABLE OF CONTENTS “FORWOOD” What is Sustainable Forest Management? (SFM) Introduction of Management to a Moist Tropical Rainforest Area Technical Feasibility of SFM for Moist Tropical Forests Asian SFM Experiences Malaysian Uniform System Selective Management System Malaysia Model Forest Management Zone Malaysia Indonesian Selective Cutting System African SFM Experiences South and Central America SFM Experiences 1990’s Global Introduction of the SFM Concept ITTO Activities PNG SFM Endeavours 1975 Definition Forest Management PNG Forestry Policy at Independence Post-1975 Summation Growth Data Activities 1975-2021 FAO Description PNG Forest Situation in 2020 Challenges Faced by Australian Foresters Traditonal Forest and Forested Land Ownership Development of Traditional Owner Forest Legislation Merchantable and Non-Merchantable Species Fuelwood and other Traditional Wood Usage Difficulties of Mensuration Agencies of Damage Weather/Fire/Insects and Disease Illegal Logging/Unsustainable Harvesting & Use Invasive species/Genetic pollution Causes for Concern The Role of Forest Industries in SFM Need for Improved Forest Inventory Land Use - National Agricultural & Industrial Development Ecological Basis for Rainforest Management Policy Issues and the Forest Resource Forest Ownership The Establishment of New Forests Management of Natural Rainforests Issues between the Forest Owner and the User of the Resource References Acronyms

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“FORWOOD” 2 The concept of sustainability in relation to forests has been an accepted principle for thousands of years. Early people realised the importance of their forests as their source of their livelihoods. They must have acted to protect them and to promote the growth of useful trees.

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By the end of the 19th century, the importance of forests for the sustainable supply of goods (not only timber but also firewood) and services, especially watershed protection had been recognised. Reservation, which included both physical demarcation of boundaries, as well as the control of logging, had started in India since the First India Forest Act of 1862 and continued in Burma (now Myanmar) and subsequently in Straits Settlements (now Malaysia).

It was the main forestry activity in colonial Africa and the Caribbean in the 1900s, 1930s, and into the 1950s.

The first management systems for tropical forests were those developed for teak forests in India and Burma (Myanmar) from the mid-19th century while plantation techniques were developed for many other countries.

The original principle of sustained yield has gradually been broadened to a more inclusive principle of sustainable forest management (SFM). SFM entails the management of forests to maintain their full range of environmental, social, and economic values.

Notwithstanding 200 years of efforts to operationalize the concept of sustainability, its exact application in forestry remains troublesome.

The development of silvicultural systems for the management of most tropical moist rainforest types were not developed until the 1950s and 1960s, such as the Malayan Uniform System, the Timber Stand Improvement of Uganda, and the Tropical Shelterwood System of Ghana. They combined yield control by minimum girth/diameter limits and the poisoning of “weed” trees to liberate the “desirable” species for which there was a market.

Decades later, these systems were no longer used for several reasons, including high costs, and the lack of staff. Some countries did not find increased regeneration or a balanced size class distribution, after many decades of harvesting regulation applications.

Since the end of the 1980s, the concept of sustainable development has gained general acceptance, but much uncertainty still exists on how to operationalize this concept. The experiences with its application in forestry may contribute towards obtaining a better insight into the implications and operational significance of the concept of sustainability.

In reviewing the history of sustainability in forestry, in recent times, there must be included the various social values on which its interpretation has been based.

The dynamics in social valuation of forest resources resulted in various attempts at practical operationalization of the principle. Three lessons are drawn: (1) the need to recognize the 2

Ball J Sustainable Forest Management Chapter 2 An overview of the Commonwealths’ Forest Resources.

Commonwealth Forestry Association 2005.

3 Ball J Sustainable Forest Management Chapter 2 An overview of the Commonwealths’ Forest Resources.

Commonwealth Forestry Association 2005.

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different nature of ecological limits and social dynamics, (2) the role of dynamic social values with respect to forest resources, and (3) the significance of operational experiences in trying to attain sustainability within a concrete context.

PNGAF Magazine Issue # 9D1 of 25th September 2021 addressed the issue of “Is it possible to achieve balanced land use of forested lands in the tropics?”. It surmised that the challenge by 1975 was, and it still is, to ensure the retention of sufficient forested land area to provide for the future PNG population needs of major and minor forest products together with the indirect benefits forested lands provide.

In 19754, the multiple use concept was and has always been, embodied in the practice of forestry in PNG, i.e., managing the forests, to satisfy as best as possible, the reasonable needs and desires of the community.

The aim of forest management in any area should always be to balance the various purposes against each other to achieve the greatest good for the greatest number in the long term.

Whilst in various areas, one or other of these uses will predominate, and exclude some of the others, in most cases it is possible to achieve a balanced management regime which serves most purposes.

Since 1975, variations of the same theme of the multiple use concept have been further refined to now be known as sustainable forest management (SFM).

ITTO in 2005 defined SFM as the process of managing permanent forest land to achieve one or more clearly specified objectives of management with regard to the production of a continuous flow of desired forest products and services without undue reduction in its inherent values and future productivity and without undue undesirable effects on the physical and social environment.

To elaborate the definition and assist the monitoring, assessment and reporting of SFM, ITTO has developed a set of key criteria and indicators (C&I) for the sustainable management of tropical forests. These comprise the essential elements of SFM and are consistent with the seven thematic elements of SFM specified in the Non-Legally Binding Instrument on All Types of Forest (United Nations General Assembly 2007).

Since the 1920’s, PNG has studied the various global silvicultural systems for the management of most tropical moist rainforest types designated for the sustainable supply of forest products. Today the outcomes of those multiple use concept systems have evolved and been further refined to what is now known as sustainable forest management (SFM) as per the ITTO definition.

Forest management in any natural forest area is beset by issues. However, the greatest multitude of issues come from managing moist tropical rainforest areas. This magazine issue outlines some of the challengers, causes for concern, and policy issues encountered

by PNG forest managers yesterday, today, and tomorrow.

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Forestry and Timber Bureau Australian Department of Agriculture 1975. MULTIPLE USE OF FOREST RESOURCES. ISBN 0642008655.

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What is Sustainable Forest Management? (SFM) SFM, particularly in its widest sense, is an ambiguous concept5. The lack of conceptual precision relates to various dimensions: • • • •

The question of what needs to be sustained? i.e., what should be the objectives of sustainable forest management?

The values attached by different stakeholders to the various sustainable forest management objectives.

The uncertainties associated with interventions in complex forest ecosystems.

The time frame and spatial boundaries that should be adopted when examining the sustainability of different forest management options.

What should be sustained?

In the past, most forest management systems tended to focus on one objective of overwhelming importance, such as the maintenance of a certain flow of timber, protection of a fragile watershed or provision of an attractive forest environment for outdoor recreation.

However, this approach did not recognize that forests can produce a multitude of goods and services, frequently at the same time and from the same piece of forest land. Indeed, forests are the source of a diverse array of products, in addition to roundwood as a wide array of environmental services and offer opportunities for social and economic development.

Normally, foresters have interpreted SFM as sustainable wood production, which continues to be the management objective of utmost importance in most cases. It is the only management system about which much evidence exists.

This is a restrictive interpretation of the sustainable forest management concept i.e. the sustainable production of wood. This does not mean that other goods and services of forests are irrelevant, but that experience on their management is even more limited than in the case of sustainable wood production systems. Therefore, it is much more difficult to derive general conclusions for this broader but more imprecise concept of sustainable forest management.

For example, non-wood forest products and forest services directly contribute to the livelihoods of some 300 million forest dependent peoples around the world. These products and services acquired great importance in the last few decades.

Thus, the focus on single, or almost single, purpose management gave way to a much more complex objective of managing forest for multiple outputs. Managing forests in a way to maximize simultaneously all these objectives is impossible.

The challenge for the achievement of sustainable forest management is that difficult choices must be made, and trade-offs must be considered.

The questions facing forestry policy makers are:

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FAO 1999 Towards Sustainable Forest Management: an examination of the technical, economic, and institutional feasibility of improving management of the global forest estate. Arnoldo Contreras-Hermosilla FAO Consultant.

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• • •

How can this compromise be achieved?

What criteria can be used to judge the different options and compromises?

How can forestry policymakers decide how far to go in pursuing one objective that implies a sacrifice of some of the others?

The answer to these questions is complex because the trade-offs involved can only be analysed within the framework of a commonly accepted value system.

Values determine the “weight” or importance of each one of the objectives in sustainable forest management.

It takes a long time to produce timber and some of the other products and services that forests can supply. The long production period introduces further complications and presents more opportunities to have different interpretations of the concept of sustainable forest management. Those complications include: •

•

• •

The first complication is that there is greater uncertainty about the likely results of any forest management system. This is because forests and especially tropical forests, are enormously complex ecosystems. Technical specialists may also fail to agree about what will be the eventual outcome of any silvicultural intervention. This problem is compounded further by the fact that it often takes a long period of time to obtain reliable results from field-tests of such interventions and, therefore, identify the best course of action.

The second complication arising from the long production process, is that values change over time and, accordingly, so should the objectives of sustainable forest management.

The implication of this is that the forestry policymaker has no sure way to predict how these values may change in the future. Further, they often do not have technical or management tools that can accommodate such uncertainty in the decision-making process.

A third complication is that, in theory, the values of future generations should be integrated into today’s decisions about what is or is not sustainable forest management.

A fourth complication associated with sustainable forest management is that it is not clear what the forest management planning horizon should be. This is partly because forests need to be managed for long periods of time to produce a full array of goods and services.

For example, should the forest manager be aiming to manage forests in a sustainable way over the next 50, 100 or 150 years, or in perpetuity? In the case of countries and regions with substantial areas of mature natural forests, sustainable forest management, may be impossible if there is any timber harvesting. In these cases, the forest policymakers' challenge is usually not to achieve a sustained yield of timber of a similar quality to that taken in the first cut.

Rather, it is to either manage a smooth transition to a sustainable harvest of new growth timber (after a large and valuable first harvest of old-growth trees) or to leave these areas untouched.

In general, sufficient technical, and silvicultural knowledge is available to implement the restrictive concept of sustainable forest management (i.e., the production of a sustainable flow of wood products) in most ecological conditions. In the case of tropical forests, this assertion may meet with some scepticism, because no sustainable forest management systems 6

have ever been implemented for a sufficiently protracted period to provide indisputable evidence that long-term sustainability of wood production is possible.

However, these failures to implement sustainable forest management over long periods of time have mostly been due to economic or institutional obstacles, rather than imperfect technical knowledge.

If the sustainable forest management concept is expanded to cover the whole range of multipurpose forest goods and services and to embrace the social and environmental aspects of sustainability (ecosystem management), then the above assertion is a great deal weaker.

Examined in isolation, some sustainable forest management practices may show positive financial results in the long run and a few practices may also be profitable in the short run.

However, these results, even if good, are generally not good enough. Frequently, other forest management options or other land development options are more profitable from the point of view of the private operator. These options include the depletion of the natural forest capital stock and the complete removal of forest cover, to convert lands to agricultural activities.

The economic factors acting against the achievement of sustainable forest management arise because there are no markets for many of the benefits derived from the forest.

Even in cases where markets exist for outputs, these are often plagued by several distortions.

In such cases, forest managers are unable to capture the benefits of any efforts to implement more sustainable forest management methods and are, therefore, reluctant to undertake such efforts. In many cases the motivations of forest managers are steered in the wrong direction by mistaken, albeit frequently well intentioned, government policies. The institutional requirements to implement more sustainable forest management practices, pose formidable obstacles to the wider implementation of this concept.

To complicate matters further, the sustainable forest management concept is also imprecise in relation to spatial dimensions. For example, should sustainable forest management apply at the single stand level, at the landscape level or at the regional or national level?

To summarize, there is a multitude of possible combinations of all the various objectives commonly associated with sustainable forest management.

Different values are given to each objective over various periods of time and physical spaces.

Furthermore, these values vary between different members of the wide-ranging group of stakeholders that have an interest in forests. They are also likely to change and evolve over time as well as with respect to different spatial scales. This complexity partly explains the different and sometimes sharply contrasting opinions held about what exactly sustainable forest management really means in practical terms. In the real world it is necessary to know clearly what needs to be sustained, how the different objectives can be balanced, and what period of time and geographical space is being examined.

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Introduction of Management to a Moist Tropical Rainforest Area Proper management of any area of rainforest will normally have as its aim the utilisation of the forest site for one or more of the four benefits forested areas provide. Those uses are not necessarily mutually exclusive.

• • • •

The management of the area under forest for the direct benefits which it provides in the way of major forest products.

The management of the area under forest for the direct benefits which it provides in the way of minor forest products.

The retention of areas under forest for its various indirect benefits.

The conversion of the area away from forest cover to some other form of land use, usually though not invariably, associated with growing of plants for food for cash or growing plants to nuture grazing animals which are then onsold for cash.

Of these benefits, the production of timber in its various forms is not always necessarily the most important. For example, protection of watersheds may have greater long-term significance.

However, the greatest attention has been given to the use of rainforest sites to produce timber products. The reasoning for this attention is not difficult to ascertain. The other benefits of rainforest management rely essentially on retention of the natural vegetation with as little disturbance as possible. The managing agent in utilising the forested area for timber production must ensure as much protection as possible is given to the vegetation when disturbed.

To protect the vegetation as much as possible, specific criteria as harvesting regulations must be adhered to. (Today these criteria are included in logging codes of practice). The managing agent, nominally the National Forest Service, must administer harvesting regulations to ensure definite and sustained timber production activity can be maintained on any specified forest land area site.

To ensure ongoing supervision of such activities, financial charges are levied against the harvesting operator. These financial charges allow the managing agent (nominally the National Forest Service) to perform management practices not only for future timber production but also to maintain other non-timber uses of forested lands.

Vanimo lowland rainforest. Photo credit Ian Whyte 1974.

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Technical Feasibility of Global Sustainable Forest Management (SFM) for Moist Tropical Forests FAO6 depicts natural tropical forests cover as some 1,700 million hectares, of which around 900 million hectares are in Central and South America, 500 million hectares are in Africa and about 300 million hectares are in Asia and Oceania. Tropical forests comprise the most biologically diverse ecosystems on earth, containing more than half and possibly as much as 90 percent of the earth’s known living species (World Resources Institute, 1989). No tropical forest has been managed for long periods of time and nobody knows for sure whether even the best management practices are truly sustainable.

However, experience suggests that there is enough technical knowledge to considerably improve the current management of this type of forest, or at least to avoid the most blatantly unsustainable practices. Moist tropical forests probably also present the greatest technical challenges to implementing sustainable forest management.

Many experiments to examine sustainable forest management have taken place.

Unfortunately, most were marred by nontechnical obstacles and events that occurred before conclusive empirical evidence of the technical feasibility of sustainable forest management could emerge.

Most of the obstacles were related to several economic, institutional, and social factors, including: • • • •

the length of time required for tropical trees to achieve commercial size. the use of inappropriate harvesting systems. economic pressures to repeatedly log areas in which regenerated trees have not yet matured encroachment pressures from migratory communities that survive by practising slash and burn agriculture.

In areas with scarce population, there are large reserves of forests that are not threatened.

Protected areas in these places have a low opportunity cost and forest plantations are generally not an economically viable option.

Furthermore, indigenous peoples frequently utilize forests in a sustainable way. In many cases, there is no need for drastic interventions to ensure sustainable forest management.

Circumstances may change rapidly if roads open-up remote areas, if mineral or oil deposits are found under the forests, or if high value species become more accessible.

But in areas of high population density, the proliferation of unsustainable practices is a major problem. In such areas, the total area of moist tropical forests is shrinking, and some forest types are extinct. Frequently, the forest has been converted to a mixture of primary and secondary forest. Logging in accessible areas of these moist tropical forests is intense and

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FAO 1999 Towards Sustainable Forest Management: an examination of the technical, economic, and institutional feasibility of improving management of the global forest estate.

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deforestation and forest degradation prevails. Furthermore, the pressure to convert forestland to farmland to meet expanding agricultural requirements is often intense.

Setting aside forests for protection or for sustained production of wood in areas of high population density is also difficult because the generally high opportunity costs and political costs of such actions. It is also quite likely that wood scarcity may have to become acute before more sustainable forms of forest management become attractive.

When this occurs, it is more likely that the establishment of forest plantations and more intensive management of secondary forests will become economically feasible.

Experiences with SFM in moist tropical forests in Asia The tropical forests of Asia contain a large proportion of large-sized trees compared with forests in Africa and South America. These forests are often dominated by species from the Dipterocarpaceae family, many which are commercially valuable (e.g., Meranti, Keruing and Kapur). The richness of commercial species in much of this forest allows volumes of up to 70 cubic meters per hectare (and sometimes more) to be obtained at the first cutting. In the last few decades, several experiments to examine the sustainability of wood production took place in Asia.

Malaysian Uniform System.

The Malaysian Uniform System, developed during fifty years of research, involves felling all commercial species of a diameter at breast height of more than 45 cm, on a cutting cycle of 50-60 years. Each cutting is then followed by silvicultural operations to eliminate all noncommercial species of more than 15 cm diameter at breast height, to reduce competition.

Initially, the Malaysian Uniform System resulted in successful regeneration of lowland dipterocarp forests in Malaysia. Unfortunately, however, the forests were converted to agricultural uses before the long-term sustainability of timber yield from this system could be confirmed. The precarious security conditions in many forest areas prevented the timely application of some treatments specified in the Malaysian Uniform System. However, most analysts generally agree that, had the experiments continued, most of the lowland dipterocarp forests of Peninsular Malaysia would now be sustainably producing second-rotation timber.

The rapid conversion of the lowland forests to agriculture resulted in a movement of forest harvesting into the more complex and fragile hill dipterocarp forests of Malaysia. Forest managers are now attempting to apply the Malaysian Uniform System here, but the system is untested in these types of forest and little research is available to suggest how successful it will be.

Selective Management System Malaysia As an alternative to the Malaysian Uniform System, its successor, the Selective Management System, is being applied in some parts of Peninsular Malaysia and Sabah, mainly in forests with an abundance of commercial species. Under this system, large trees are felled every 2530 years, without any silvicultural operations after logging. The production of the next crop relies exclusively on the survival of commercial trees of a medium diameter at breast height (between 30 and 50 cm, depending on the species). The system aims to save these stems for later harvests, by limiting damage to the forest during harvesting. The system has the advantage that it gives forest managers the flexibility to choose the minimum diameter of 10

stems they wish to exploit. However, it is less reliable than the Malaysian Uniform System and marks a drastic departure from the uniform, monocyclic felling system to a much more complex polycyclic system. Also, the more frequent harvesting may cause substantial damage to the remaining forest and the system requires a strong capacity to monitor and control harvesting. Empirical evidence of the sustainability of this system is also lacking, because large areas managed under this system have yet to be harvested for a second time.

Model Forest Management Zone Malaysia The most recent experiment to look at sustainable forest management in Malaysia is the Model Forest Management Zone, recently established in Sarawak. This experiment aims to demonstrate sustainable management approaches, utilizing knowledge gained from past experiences and modern planning, silvicultural and harvesting techniques that minimize logging damage. It is also too early to assess the success of this experiment.

Indonesian Selective Cutting System The TPI (Tebang Pilih Indonesia or Indonesian Selective Cutting System) and its successor, the TPTI (Tebang Pilih Tanam Indonesia or Indonesian Selective Cutting and Planting System). These systems involve cutting trees above a certain diameter (depending on forest type) on a monocyclic felling system. Also, in the latter case, regeneration relies on silvicultural operations, on leaving a minimum number of commercial trees after felling or, if this were not possible, on planting a certain number of desirable species. Experience with these systems suggests that they were complex to organize and monitor. They also require sophisticated technical capacity that often is not available. Because of these obstacles, as in the case of the other experiments reported here, experience with these systems is insufficient to prove their feasibility although their failure was not caused by lack of technical knowledge.

Experiences with SFM in moist tropical forests in Africa The moist tropical forests of Africa contain a large diversity of species, few of which are commercially valuable. The main commercial species are the so-called “red woods”, and forest managers often only harvest these trees, taking between 10 and 40 cubic meters per hectare. Compared with Asia, the idea of managing forests in a sustainable way is a more recent concept in Africa. Therefore, experience is limited. The Malaysian Selective Management System was initially tried in Ghana, but the experiment failed because the cutting-cycle used (15 years) was too short and because the forest contained few valuable species. The implementation of this system gradually led to progressive stand impoverishment. The Tropical Shelterwood System was tried in the moist tropical forests of Nigeria. This system relies on gradually removing the forest cover over a period of 20 years to promote the regeneration and growth of desirable seedlings. However, the complexity of implementing the system on a large scale proved to be too difficult and it was eventually abandoned.

Several other experimental sustainable forest management systems launched in several countries, including Central African Republic, Congo, Cameroon, Côte d’Ivoire, Burkina Faso, and Zimbabwe, relied on a variety of silvicultural treatments to ensure regeneration.

Many failed because of non-technical reasons, including political upheaval, a lack of 11

economic resources to finance operations, and pressure on governments to abandon such methods and exploit forests for more immediate benefits.

Experiences with SFM in moist tropical forests in South and Central America Moist tropical forests in South and Central America have a lower species diversity and smaller tree diameters than the moist tropical forests of Africa and Asia. The density of stems is higher, but the lower volume of commercial species in these forests generally results in harvests of only 5 to 30 cubic metres per hectare. There have been few attempts to implement sustainable forest management techniques in the region and documentation of the few attempts that have been made is poor. Some attempts have been made by private enterprises, but the results of these attempts have not been made public. It appears that none of these experiments have been conducted over long periods of time.

In Trinidad and Tobago, the Periodic Block System was designed but it does not appear to have been fully implemented. Results were never published and much of the data was lost.

Similarly, in Surinam, the CELOS Management System was developed based on several years of forest research, but the system was not implemented on a large scale. It was abandoned because of political conflict and insecurity in the area.

Other examples of experiments with sustainable forest management systems exist in Mexico (Quintana Roo and Sierra Madre projects), Peru (Palazcu Valley), Brazil (Tapajos, Minas Gerais Cerrado and Caatinga, Mata Atlantica, IMAZON Paragominas and others), Costa Rica (Portico, BOSCOSA and FORESTA projects) Bolivia (Chimanes, MACA-IDB Project) and French Guyana, but these have all suffered from similar problems of implementation or are too recent to derive definitive conclusions (Kirmse, Constantino and Guess, 1993). Therefore, the overall experience with the application of sustainable forest management systems in this region is very limited, too recent, or poorly documented.

Ball surmised that by the end of the 1980s, the sustainable management of tropical moist forests appeared to be almost non-existent, and the permanency of the forest estate, the basis of sustainable management, was often threatened.

The ITTO report No Timber without Trees (Poore et al. 1989) showed that a very small area was even in theory under sustainable management. However, by 2005, ITTO reported (Status of International Forest Management. ITTO 2005) described a more encouraging picture, where some 25 million hectares were being sustainably managed with India and Malaysia accounting for 40 % of that total.

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FAO gave a summary of conclusions about sustainable forest management for timber production in moist tropical forests.

Study Evidence Wyatt-Smith (1987) The Malaysian Uniform System was successful when abundant natural regeneration was present. In the Philippines, selective logging shows excellent regeneration of preferred species.

Successful natural regeneration in Trinidad, Puerto Rico and under the CELOS system in Surinam is promising.

Schmidt (1987) In Malaysia, the Malaysian Uniform System resulted in successful regeneration in lowland dipterocarp forest. Liberation thinnings in selectively logged forests in Sarawak produces new good quality stands quickly and selective logging in the Philippines leaves a commercially valuable residual stand.

Poore et al (1989) Sustainable management in some small-scale projects in Africa has begun. Sustainable management in Malaysia shows promise and sustainable production is carried out in Trinidad and Tobago.

Goodland et al Sustainability cannot truly be detected until at least the third (1990) cutting-cycle has been completed. Forests managed using sustainable management techniques during colonial regimes in Asia and Africa, the Malaysian Uniform System and other management systems have largely been converted before sustainability could be proved. However, several experiments currently under way in Latin America may turn out to be sustainable.

ITTO/HIID (1988) It is likely that forests managed under the Malaysian Uniform System would be producing second rotation timber if the land had not been converted to agriculture. The strip shelterwood system used in Palcazú shows abundant regeneration and polycyclic systems with liberation thinning show promise in Sarawak and Côte d’Ivoire Jonsson and A forest in Costa Rica, where Carapa guianensis was harvested, is Lindgren (1990) showing abundant regeneration.

Keto et al (1990) Current forestry regulations in Queensland recognize long-term economic and environmental concerns.

Perl et al (1991) This study gives thirteen examples of forest management systems in Latin America. None of them are demonstrably successful in every aspect of sustainable forest management.

Hartshorn (1990) In Palcazú, natural regeneration on two demonstration strips has and Southgate been very good and this suggests that the management methods (1998) used in the forest were biologically sound.

Bruenig and Poker Positive indications about the feasibility of sustainable forest (1991) management have been obtained in Congo. The Selective Management System in Malaysia and the management system used in Quintana Roo have also demonstrated the feasibility of sustainable timber production. Selective logging in dipterocarp forests in the Philippines has successfully left a commercially viable residual stand Source: Johnson and Cabarle (1993) and Southgate (1998).

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The systems examined all aimed at the sustainable production of wood, with little or no consideration of the many other objectives often associated with sustainable forest management. Most specialists agree that, in these cases, the forest management systems were technically sound, even though the empirical evidence of sustainable wood production remains incomplete and is mostly limited to evidence of successful regeneration.

In summary, the evidence from Asia suggests that sustainable wood production in moist tropical forests in this region is technically feasible, but that most experiments did not last long enough to eliminate all doubts. In Africa, failure was mainly a result of ineffective public administration. In Latin America, the main problems (with experiments to examine sustainable forest management systems) were the lack of security and insufficient commitment to implement sustainable forest management, on a larger scale. The evidence generally points to the fact that the forests are either evolving as the researchers expected them to, or that any technical failures could easily be corrected with existing knowledge. The balance of the technical evidence is quite positive and numerous studies and projects provide a solid base for technically sound forest management for sustainable wood production in most of the world's moist tropical forests.

1990’s Global Introduction of the Sustainable Forest Management Concept Sustainable Forest Management (SFM) is the management of forests according to the principles of sustainable development. SFM must keep the balance between the three main pillars: ecological, economic, and socio-cultural.

The “Forest Principles” were adopted at the Earth Summit (United Nations Conference on Environment and Development) in Rio de Janeiro in 1992.

ITTO (International Tropical Timber Organization) By the 1980’s, ITTO was established under the International Tropical Timber Agreement (ITTA), which was sponsored by the United Nations Conference on Trade and Development and was ratified in 1985. The mandate was renewed in ITTA 1994 and ITTA 2006.

ITTO is an intergovernmental organization promoting the sustainable management and conservation of tropical forests and the expansion and diversification of international trade in tropical timber from sustainably managed and legally harvested forests. ITTO pioneered the development of criteria and indicators (C&I) for the sustainable management of natural tropical forests in the early 1990s and has continued to provide leadership in their review, improvement, and implementation. C&I are tools for defining, assessing, and monitoring progress towards sustainable forest management. They list the main factors that influence the health and productivity of a forest (“criteria”) and propose indicators that, if measured over time, will help managers assess the extent to which management is consistent with forest sustainability and the wellbeing of forest-dependent communities.

ITTO assists its tropical member countries to sustainably manage their forest resources by providing support on aspects such as criteria and indicators for sustainable forest management; reduced impact logging; fire management; biodiversity conservation; 14

community forestry; forest landscape restoration; planted forests; forest governance; gender equality and empowering women; the sustainable use and conservation of mangrove ecosystems; the further processing of forest products; and green supply chains.

By 2016, the International Tropical Timber Organization, membership represented some 70 producer and consumer countries of tropical forest produce. ITTO now comprised about 90 % of the global tropical timber trade and more than 80 % of the world’s tropical forest.

ITTO defined sustainable forest management (SFM) as “the process of managing forest to achieve one or more clearly specified objectives of management with regard to the production of a continuous flow of desired forest products and services without undue reduction of its inherent values and future productivity and without undue desirable effects on the physical and social environment.”

This definition implies the following objectives of SFM: • • • • • •

Continuously satisfying needs for goods and environmental services from forests.

Ensuring the conservation of forest soils, water, and carbon stocks.

Conserving biodiversity.

Maintaining the resilience and renewal capacity of forests, including carbon storage.

Supporting the food security, cultural and livelihood needs of forest dependent communities.

Ensuring the equitable sharing of responsibilities in forest management and of the benefits arising from forest use.

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PNG SFM Endeavours Papua New Guinea’s (PNG) forests and forestry have played an important role in the livelihoods of the people of the country for many years. Forests have provided a source for food, fruits, and nuts, building materials, medicinal plants, habitats for refuge and a wealth of other services. Increasingly throughout the years, and more so since the end of the Second World War, forests in the country have been exploited for their wood products, more particularly the timber. While still maintaining the main role of sustaining the livelihoods of rural people, forests have increasingly become the main source of revenue for the people (landowners), the Government and the timber industry.

There are many factors that have impacted on forests and forestry, but the key ones are the increasing population and people’s demands for development – due to lack of basic goods and services in the rural areas where most or all the forests are found. The increasing numbers of people need to be fed and hence more forests are being cleared each year, through shifting cultivation, to make gardens for food. Forests are also seen by many people to bring development to their undeveloped or lesser developed communities – development in the sense of cash income, infrastructure, and basic services, especially health and education.

These developmental needs often force landowners to seek Government assistance to bring in timber companies to harvest the trees in their forest. In return, landowners earn an income through timber royalties, employment, create access to urban areas through roads, jetties, or airstrips, and can access health and education services and other basic services that are generally non-existent in rural communities.

The system of land and resource ownership in PNG is unique and the natural forests that grow on it is owned by tribal communities in clan groups. This age-old arrangement is not expected to change, although there is an emergence of fragmentation within clan groups where individual families are demanding to be recognized as separate landowners despite being members of the same clan.

Forestry continues to play a significant role in the economic development of the country; being among the top 3 sectors in terms of its contribution to the economy. It provides direct employment to over 10,000 people, mostly in rural communities, constructs infrastructure such as roads and bridges, and provides a source of income through timber royalties to people, and other developmental levies.

By 1975, the PNG Dept of Forests followed a forest development model of large-scale, industrial operations strongly supported by the World Bank from the early 1960s. The longevity of the JANT Project Madang, has demonstrated that industrial-sized wood production for export is possible in PNG, although it comes with a social cost7.

Equally, forestry projects provide tangible benefits in terms of rural service provision in many areas, filling a gap caused by the non-provision of such services by the State.

7

ODI 2007. Papua New Guinea Forest Studies 1. What can be learnt from the past? A history of the forestry sector in Papua New Guinea.

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In relation to natural forest management, a sustained yield concept in PNG was followed with the felling cycle based on a 35-year rotation on a selection logging model where no stems less than 50 cm diameter could be harvested. Refer to work by Evan Shield below8.

Tree Volume Equation for Mixed Species in PNG Based on V=80.31549 +2.18592G² - 1.15235H + 0.64224G²H Where V = log volume under bark in super feet true measure Where G = girth over bark above buttress in feet Where H = log length in feet (log height above buttress height) and a Bark allowance 3inch off girth.

Forester Gary Archer converted the equation to metric, with diameter in centimetres, height in metres, and volume in cubic metres: V = 0.185582 + 0.0000536586 D^2 - 0.00873586 H + 0.0000517235 D^2 H

Forest Management in PNG in 1975, was defined as a branch of forestry concerned with overall administrative, legal, economic, and social aspects, as well as scientific and technical aspects, such as silviculture, protection, and forest regulation of the forest estate. This included management for multiple use of forest resources as timber production, wood products, communities, recreation, water, wildlife, plant genetic resources, fire, and other forest resource values.

Forestry in PNG as then defined by Carron9 was the wise and sustained fostering, production and use by people of the many values, benefits, and products of forests.

The development of PNG’s forest management initiatives closely paralleled the definitions of forest lands as described in FAO’s Forest Resources Assessment from 1948 to 1975. 10 1948 Forest lands bearing vegetative associations dominated by trees of any size, capable of producing timber or other products or of exerting an influence on the climate or on the water regime; also, lands from which forests have been recently clear-cut or burned, but which will be soon reforested.

1953 Forest lands bearing vegetative associations dominated by trees of any size, exploited or not, capable of producing wood or of exerting an influence on the local climate or on the water regime.

1958 Forest lands bearing vegetative associations dominated by trees of any size, exploited or not, capable of producing wood or other forest products, of exerting an influence on the climate or on the water regime, or providing shelter for livestock and wildlife.

1963 Forest land bearing vegetative associations dominated by trees of any size, exploited or not, capable of producing wood or other forest products, of exerting an influence on the climate or on the water regime, or providing shelter for livestock and wildlife.

1970 Forest Land are areas covered with trees and/or shrubs and not used primarily for agriculture or other nonforestry purposes.

8

Based on 1965 thesis, Evan Shield8 completed his dissertation into PNG forests volume tables titled The Application of New Sampling Methods to Previously Inaccessible Tropical Forest Areas, with Reference to Papua New Guinea. Commonwealth Forestry Review vol 55 No 1 March 1976. https://ora.ox.ac.uk/objects/uuid:56c8977d-af05-40d4-9d3a-54959ffcfe00 9 Carron L T A History of Forestry in Australia ISBN 00802987451.

10 Ref 1948-2018 Seventy years of FAO’s Global Forest Resources Assessment Historical overview and prospects. Author Monica Garzuglia (FAO) ISBN 978-92-5-130062-6 © FAO, 2018.

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Forestry Policy at Independence was based on a 1973 National Forest Policy document11, which clearly recognized the customary ownership of forests, and the need to link forestry development to national needs, as reported by Carson in 1974.

1975 PNG Forest Policy.

To have the forest resources of Papua New Guinea managed as a national asset in the interests of the present and future generations of the people (who are the forest owners).

To preserve, develop and maintain through reforestation such forest areas as will enable domestic needs.

To preserve, develop and maintain through reforestation such forest areas as will enable domestic needs to be met as far as possible and is warranted, and will also enable full advantage to be taken of export opportunities.

To accept the need for protection and management of watersheds, control of soil erosion, conservation of animal and plant communities, and the use of forests for recreational and other indirect benefits.

To encourage the development of permanent forest industries and to provide opportunities for the forest owners to become involved in these industries.

To promote research into forest technology to improve the efficiency of forestry and forest industries, to reduce imports and increase export earnings, and to improve the social and economic benefits to the nation and the forest owners.

To promote education in all branches of the forest industry and to encourage a better understanding by the people of the value of their forests in both their own and the national interest.

To provide the laws, the organisation, and funds, to manage effectively, the country’s forests having regard to overall development policies and forestry’s ability to compete successfully with other demands on the nation’s resources.

Post-1975 Logging of natural forest was largely determined by economic considerations and the perceived extent of production forest suggested that any concerns over ‘over-harvesting’ were not significant at the provincial or national level.

The PNG Forest Authority has adopted the approach of dividing the total estimated volume of commercial species within a project area by 35 (the proposed cutting cycle period) with the smallest forest management unit, of approximately 100 ha. The resultant volume estimate 11

Forest Policy. Papua New Guinea – 1973 (Translation of the “National Eight Point Improvement” into a “National Forest Policy”. Dept of Forests.

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is termed the annual allowable cut (AAC). It is this estimate that is currently entered in each Timber Permit and sets the maximum level of harvest that the operator can cut in any one year.

However, there are two problems with this approach.

• •

First it depends on an accurate inventory of the harvestable trees over a huge area, which has proven very difficult to achieve.

Secondly, it depends on 35 years as being a sufficient time period for the forest to rebuild to a similar level of commercial tree volume.

A forest growth model (PINFORM) was then developed, which has provided considerable insights for the practical application of forest management. The model demonstrated that current logging levels, using a felling cycle of 35 years and a 50 cm diameter cutting limit, results in an initial felling that is excessively heavy. Subsequent cycles have lower yields, and the initial post-logging period shows substantial stand damage with the attendant risk of initiating a cycle of stand degradation (Alder12, 1998). The computer model determined that over a wide range of felling cycles, an allowable cut of 0.5 m3 /ha/yr. may be sustained on average sites, falling to 0.3 m3 /ha/yr. on poorer sites, or rising to 0.7 m3 /ha/yr. on the best sites.

The model indicated that a reduced level of extraction, e.g., on a 20-year cycle cutting 10m3 /ha on each felling coupe, with 1/20th of the concession area cut each year may be sustainable in terms of tree growth (Alder131998). Using the PINFORM model, Alder (1998) demonstrated significant site variability in stand growth. He developed a site multiplier for each province to take account of the variation observed in the FRI/ITTO data set. Such site variation in tree growth is likely the result of a combination of total rainfall, dry season severity, and soil fertility. This emphasises the inadvisability of treating large forest areas as homogeneous blocks; rather forest mapping of the type mentioned above needs to be taken up as a matter of urgency in the forest management planning of each project.

Professor John Davidson14 commented that if one reviews growth studies since 1975 for PNG, much has been written by ACIAR, Universities and others on increasingly sophisticated methods of vegetation typing and stratification using better and better satellite imagery and GIS manipulation to report on areas allegedly deforested or degraded by whatever means but no study has tried to accurately convert areas into wood volumes or biomass. No reports to date have been located of extensive sampling to produce new local PNG volume or biomass tables from raw plot data. Most of the work by NFS on PNG natural rainforest growth functions has concentrated on permanent sample plots for natural rainforest in PNG rather than forest assessment for commercial purposes.

12

Alder, D. 1999. PINFORM: a growth model for lowland tropical forest in Papua New Guinea. ITTO project report PD 162/91 – Papua New Guinea. Anon. 1998.

13

Alder, D. 1998. The ITTO permanent sample plots in Papua New Guinea: some results of analysis. Paper presented at the ITTO Workshop on Permanent sample plots and growth models for natural forest management in Papua New Guinea, held at the Forest Research Institute, Lae, 10th – 13th November 1998.

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Personal Communication 6th June 2021 Professor John Davidson TPNG Forests 1962-1980.

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Summation of Scientific Growth Data Activities and Methodologies 1975-2021.

1980 D Alder did an FAO Forestry Paper 22/2 vol 2 Rome titled Forest Volume Estimation and Yield Prediction.

1980 PNGRIS (Papua New Guinea Resource Information System) (Funded by AusAID and PNG). This project commenced in 1980 to 1987 as a joint co-operative research project between the PNG Department of Primary Industry (DPI) (now Dept of Agriculture and Livestock) and CSIRO. It was envisaged as a comprehensive nationwide inventory of natural resources, land use and population for the whole of PNG. At the time of its completion, the forest resources were not included.

PNGRIS No 6 Papua New Guinea inventory of natural resources. Population Distribution and Land use handbook. ISBN 0642196109.

PNGRIS No 2 Forest Resources of Papua New Guinea ISBN 0642196036.

CSIRO Division of Land Use Research Land research series No 35 Vegetation of Papua New Guinea ISBN 0643001387.

1989 FAO funded and undertook a project in PNG titled Forest Management Research and Development FAO: DP/PNG/84/003. B Kingston was the Mensuration Adviser whose working document No 14 was titled FOREST MENSURATION IN THE NATURAL FOREST. B Kingston working document No 13 of FAO 1989 project Compilation of tree volume tables for the lowland forests.

PNG/84/003.

1991 Michael Adams1 reported details of the ITTO/PNG project PD 162/91 Intensification of growth and yield studies in previously logged forest. https://www.itto.int/project/id/PD162_91-Rev.1-F 1992 D Alder Forest growth specialist undertook projects re PNG permanent plots and growth yields. Reports included: Alder D 1992. Simple methods for calculating minimum diameter and sustainable yield in mixed tropical forest.

Proceedings of the Oxford Conference on Tropical Forests Wise Management of Tropical Forests. Oxford Forestry Institute.

Alder D and Synott TC 1992. Permanent Sample Plot techniques for mixed tropical forests. Tropical Forestry Paper No 25 Oxford Forestry Institute.

1995 Forest Resources and Vegetation Mapping E T Hammermaster and J C Saunders CSIRO/PNGRIS 1995 reflects the progress made in mapping PNG vegetation since the 1970’s with the advent of the computer era and associated digitisation.

1997 David Freyne Team leader of the Land Mobilisation Project (ACLMP1) 1997, presented his unpublished report Resource Inventory: Developing the Management Database to the Foresters’ Refresher school FRI Lae 1997, as part of the PNG Forestry Human Resource Development Project funded by AusAid. David Freyne described the rapid resource appraisal (RRA) of PNG forest resources, the resource inventory and the setting up of the FIM (forest information system) for use by the National Forest Service to assist with management of the forest resources of the country.

In 1987, following the launching of PNGRIS, the Department of Forests requested the CSIRO be contracted to expand the database to include information on PNG’s Forest resources. Following the United Nation’s Conference on Environment and Development in Rio de Janeiro in 1992, the World Bank and AusAid supported the concept of a PNG National Forestry and Conservation Action Plan (NFCAP). Considering this development, and the original request from the Department of Forests, AusAID contracted CSIRO to undertake a rapid resource appraisal (RRA) of the nation’s resources. This RRA was the first of a series of studies which has resulted in the Forest Resource Inventory (FIM).

Under the contract to carry out a RRA of PNG’s Forest resources, PNGRIS was upgraded to include 1:500,000 scale mapping of the resource. The upgraded version of PNGRIS with data on the forest resources included, provided users with capacity to make a first level assessment of forest resources at provincial and/or national level.

The forest resource information in PNGRIS constituted the principal data source for compilation of the National Forest Plan and Provincial Forest Development Plans of 1996.

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As the primary purpose was to determine which vegetation types carried potential merchantable forest and the species composition and volume content of those forest types, a methodology was developed that could be applied nationwide. This is described in detail in the publication Forest Resources and Vegetation Mapping E T Hammermaster and J C Saunders CSIRO/PNGRIS 1995.

The principal sources of data were the records of the National Forest Service, supplemented with data collected during CSIRO resource surveys, log harvest data and a small number of specified field sampling trips. No attempt was made to calculate the area of each forest type nor to summarise the volume of timber available on a concession, province, or national basis.

The RRA resulted in NFS having 1:100,000 and 1:250,000 scale forest type and vegetation maps for all of PNG but not accessible inventory data. This issue led to a further project funded by AusAID to incorporate forest inventory mapping as a component of ACLMP. Outcomes of this project by the FIM system for the Department of Forests included: • • • • •

Mapping at 1975 baseline from the 1973/75 SKAIPIKSA aerial photography.

Information on the percentage merchantable species composition of each forest type and of gross stocking rate of each type in the FIM from NFS surveys and logging records.

A 1996 update of logged-over areas on the 1975 baseline mapping.

All concession areas (as known at 1966) mapped at 1:250,000 and added to the FIM system.

Production of mapping showing area with serious physical limitations which should be excluded from logging activities.

Alder, D. 1998 PINFORM: a growth model for lowland tropical forest in Papua New Guinea unpublished Report to ITTO, Project PD 162/91.

Alder, D., Oavika, F. and Yosi, C. 1998 Data, programs and models for natural forest growth and yield Unpublished Report to ITTO, Project PD 162/91.

1998, the Forest Inventory Mapping (FIM) System was a computer-based forest resource inventory and management tool installed at the NFS. The original forest resource mapping and compilation of forest inventory information, on which the system was based was undertaken by CSIRO. Reference Sept 1998 Forest Resources of Papua New Guinea. Summary Statistics from the Forest Inventory Mapping System (FIM) compiled by J McAlpine and J Quigley.

2001 ACIAR 1 ACIAR Project FST 98-118 - Planning methods for sustainable management of timber stocks in PNG forests Review of forest inventory and mapping systems for forest planning - report based on trip to PNG from 19-29 November 2001 C. Brack, C. Bragg, I. Frakes, A. Gerrand, R. Keenan, P. Tickle, J. Vanclay.

2001 Peki M Stand structure and growth of logged over natural forest in Papua New Guinea. Master of Agricultural Science Thesis Faculty of Agriculture. The University of Tokyo 145pp.

2004 Peki M The growth analysis and its application for management selective cutting natural forest in Papua New Guinea.

PHD thesis graduate school of agriculture and life sciences Faculty of Agriculture. The University of Tokyo 249pp.

2005 ACIAR Project FST98-118 Improved timber inventory and strategic forest planning in Papua New Guinea. Authors include R Keenan, Chris Brack, Ian Franks, Adam Gerrand.

2011 ACIAR Native Forest management in Papua New Guinea: advances in assessment, modelling and decision-making.

Editors Julian Fox, J Keenan, Chris Brack and Simon Saulei.

2021 Peki M Progress on the studies of growth of logged over natural forests in Papua New Guinea.

2021 Bob Tate1 PNGFIA advised that currently JICA has completed PNG Forest Inventory part 1 - high resolution satellite imagery 100%. EU is now funding part 2 - ground truthing the satellite data. Up to 600 randomly selected plots - measure everything & species etc.

2021 PNG-FRIMS funded by JICA.

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FAO Description PNG Forest Situation in 2020 There was estimated to be about 29 million hectares of forested land remaining in the country. This was a decline from the 33 million hectares estimated in 1975. The loss of some 4 million hectares over a 30-year period is partially attributed to shifting cultivation, conversion of forested lands to agriculture, logging, urban development, infrastructure development, mining developments, and various natural disasters. The area and number of timber concessions had increased over the years from an area of a little over 1,000 hectares in 1940 to over 11 million in 2009. The forest resources in many of these concessions have been almost exhausted in terms of their resource base. The concessions played the important role of acting as “vehicles” for immediate development. Timber Concessions that have been acquired since 1991 are intended to facilitate sustainable forest management (SFM), therefore a 35-year cutting cycle has been inbuilt into the harvesting schedule of Forest Management Agreements (FMAs).

Forests in 2020 (based on past trends) are predicted to decline in area, but not significantly.

Most of the forest concessions have been logged, however, due to the selective nature of logging, it is predicted that forest cover will still be maintained except for where large-scale conversion has taken place to cater for agricultural plantations.

The forest industry will continue to contribute to the economic development of the country and provide a source of income and other related goods and services especially to the rural population. Of the many timber companies that were operating from the 1980s to early 2000, only a handful of companies will continue to operate into the future. Many are shutting down operations due to lack of adequate forest resources in the concessions and the ever-increasing operational costs due to often remote locations and the financial crisis currently being experienced globally. Round wood log exports, which are the primary forest products currently being produced in the forests and exported are expected to decline as timber concessions exhaust their merchantable forest resources and the ban on ‘round log export’ comes into effect. More onshore processing and value adding are expected into 2020.

Utilization of the forests as a source of energy is a major issue in major urban areas and, especially in the Highlands Region, where there are fuelwood shortages for cooking and heating in the villages. The social functions of the forests, especially in terms of income generation, will continue to be an issue in the future.

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Challenges faced by Australian Foresters in PNG. Traditional ownership of forests and forested lands The natural forests and forested lands of PNG are not public forests – they are privately owned by the traditional owners and unless they became part of a forest management ethic and practice on the part of resource owners, it could be questioned whether there would be any effective base for the long-term management goals of forest policy.

FAO reported in 1976 that one of the basic factors of government policy is that traditional ownership of lands and forests must be fully recognised. This in turn requires the purchase of appropriate areas before forest development can be proceeded with. This is a difficult task as there is a variety of traditional patterns and tenures and land clan boundaries are complicated and poorly defined.

Approximately 97% of the country and 99% of forest lands is held under customary ownership. The precise nature of this ownership varies from one culture to another. What this means in practice is that boundaries are not surveyed, title has not been registered and the applicable law is customary law.

Following Independence in 1975, this form of ownership was guaranteed under the Constitution, Section 53 (protection from unjust deprivation of property). In this context, a major challenge associated with economic development is to identify the membership of customary landowning groups and thus determine the owners of any particular forest area.

Disputes between government (the PNG Forest Authority), forestry companies, and landowner groups have often come down to whether the PNG Forest Authority and the companies entered into contractual relations for the use of land with the true owners.

15

In 1974, a mere 89 000 hectares were State owned and even this was contested by the people. The government must negotiate with the traditional owners for the use of the forest resources. Many of the traditional ownership groups however are very reluctant to sell forest land even if it is not required by them for development. They usually are only prepared to sell the timber rights for a specific period up to 25 to 40 years.

At the end of 1976, under the Forest Act 1936, the government had purchased the timber rights of 2,226,000 ha. Often these purchases were quite complex. It is only on these cutting rights with tenure varying from 5 to 40 years, where the Forest Department could exercise control to secure a continuous flow of raw wood for existing and planned forest industries.

For example, over an area of 63 000 ha in the Gogol and Ramu valley near Madang there were as many as 250 district land owning groups with 8 different languages among a population of only 2 300 people. With all owner groups an agreement must be reached before industrial development can start. In the Land Groups Act of 1974 there is a provision to recognize clans as corporations and the Land Dispute Settlement Act provides for disputes over land, boundaries etc. Under the Forestry Act of 1971 timber owners can directly deal 15

FAO 1981

23

with the logging company after the Minister in charge of forestry matters declares the area as a Local Forest Area. Under Forest Act 1937 landowners may sell small quantities of timber up to approximately 50 m3.

FAO in 2020, reported that where forest resources still exist, increasingly, landowners want forest development to take place to facilitate their access to basic goods and services. Hence, pressure is being exerted on the Government to acquire the timber areas and place them on tender to attract developers.

Middle Ramu 2001. Photo credit Dick McCarthy

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Development of Traditional Owner Forest Legislation During the period of Australian administration, there were two separate pieces of legislation in place to control the exploitation of the forest resources in the two territories: • •

the Timber Ordinance 1909 Papua. the Timber Ordinance 1922 of the Territory of New Guinea.

By the 1930s, increasing pressure on the easily accessible forest for sawmilling purposes led to the passing of the Forestry Ordinance, 1936-37 to control utilization and for the establishment of a forest industry (Mantu, 1985).

The main sections of the Ordinance provided for: • The purchase of forest lands from traditional owners, the vesting of such lands in the Government, and the creation and management of timber reserves.

• The purchase of timber rights and other forest products from traditional owners.

• The granting of permits and licences over acquired forest resources.

• The collection of royalties on forest produce removed.

• The making of regulations pursuant to the Ordinance.

It was this legislation (the Forestry Ordinance) that became widely used to cover both territories and was applied (with amendments) right up to when it was replaced by the Forestry Act 1991.

•

•

It had provisions whereby the Administration could conserve forests by dedication either as Territory Forests or Timber Reserves (yet neither category was developed to any extent).

It was also under this legislation that the concept of timber rights came to be used, by which the Administration could purchase timber rights under a timber rights purchase (TRP) agreement from the customary landowners, and then control and supervise the issuance of timber permits and timber licences over such areas (Turia, 2005).

The Timber Rights Purchase (TRP) Concept was introduced as a mechanism for the State to gain access to timber within areas of customary ownership.

The guidelines to secure a TRP that were applied from 1951 onwards were: 1. An application was made for a Timber Permit on a prescribed form, under Regulation 4 of the Forestry Ordinance 1936-37, Territory of New Guinea, and applicable to the Territory of Papua under the Forestry (Papua) Ordinance 1950.

2. A local Forest Officer made a resource survey of the area to be acquired; this was not necessarily limited to the area applied for as a Timber Permit.

3. On consideration of the report received under (2), a recommendation was made by the Director of Forests to the Administrator as to purchase or otherwise of Land and/or Timber Rights.

4. On approval of (3), funds were obtained from Department of the Treasury under procedures laid down for the control of departmental expenditures.

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5. The Department of District Services and Native Affairs then proceeded with the ‘purchase’.

6. If the Land Rights were required, the transaction was finalized by the Department of Lands, Surveys and Mines; if Timber Rights, then it became a matter for the Department of Forests.

7. On the recommendation of the Director of Forests, the timber sale then proceeded, subject to the Administrator’s approval of sale and conditions to be applied.

In line with the above guidelines, the standard procedure when acquiring timber areas was that landowners were paid instalment payments until the area was granted to an investor and was being logged. When this occurred, the Administration recouped the amount already paid to the landowners, following which it started to pay the regular timber royalty – if there were still sufficient forest resources available to complete the process (Turia, op cit.).

A dilemma for the colonial Administration, even after adopting the concept of TRP was that this arrangement did not allow the Administration to go into long-term forest management as it only had rights to utilise the trees but not the land. In addition, the natural forests proved a challenge to manage for sustained timber yield and the Administration looked to the establishment of pure plantations instead. This was at a time when forestry development internationally was very much focused on plantation development. Attention in many countries, including Papua New Guinea, was directed at examining how to deliver the potential gains in yield that plantations seemed to offer over low-yielding natural forests.

The Forestry (Private Dealings) Act 1971 granted customary owners the right to apply to have their forests declared a Local Forest Area (LFA) and to sell their timber direct to outsiders, subject to the approval of the Forestry Minister. This Act thus bypassed the timber rights purchasing (TRP) procedures that had previously governed all exploitation of timber.

The origin of this Act lay in two proposals put forward in the legislature at the time leading up to independence. First, a new Forestry Bill was introduced in the House of Assembly to allow landowners to dispose of their timber as they would like. At the same time that this new legislation was being debated, further amendments to the Forestry Ordinance were recommended: for the purpose of clarifying the rights of native owners of land who have disposed of the right to remove timber from that land, to provide adjustment of the purchase price of timber rights in certain circumstances, to remove out of date provisions, to provide for reafforestation, to provide for advisory services and assistance to be made available by the Administration to stimulate This new legislation became the Forestry (Private Dealings) Act 1971 which enabled the customary owners of timber to dispose of their timber to any person, subject to certain safeguards. The debates over self-determination which featured at this time led to other general desires being voiced by Papua New Guineans in the House of Assembly to see their people involved in the development of the country. This piece of legislation, which was later repealed by the 1991 Forestry Act, can therefore be seen as being a product of its time - as the imperative of national (and local) control began to be voiced in the years that led up to Independence.

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The Forest Industries Council Act, 1973 was passed by the House of Assembly on the 28th of September 1973. It established the Forest Industries Council, which was financed by a production levy paid by the major forest products operators and collected in conjunction with royalty payments. The role of the Forest Industries Council was to advise and assist in the promotion and marketing of major forest products, in keeping with similar marketing boards and councils that were a feature in many timber-producing countries at that time. Few of these boards remain today, with the function of marketing and promotion generally seen as a private sector competence. This Act was repealed by the 1991 Forestry Act, after the operation of the Forest Industries Council had come under the scrutiny of the 1989 Commission of Inquiry and found to be seriously wanting.

Colonial policy received its final statement in a 1974 white paper entitled, The National Forest Policy (Department of Forests 1974), based on the Carson report of 1973/74. Carson’s report emphasized the need for centralised control, which the 1974 policy framework reinforced, to protect the forest as a national resource under government control. However, as described above, this approach was challenged by the enactment of the Forestry (Private Dealings) Act 1971. This Act granted customary owners the right to sell their timber direct to outsiders, thus bypassing the Timber Rights Purchasing procedures (TRP) which had previously governed all exploitation of timber. Despite its reforming intentions, the Act had the effect of undermining controls that had been placed on timber exploitation for both environmental and social reasons.

Three factors conspired to undermine the national forest control system immediately after Independence in 1975.

First, Independence brought a new set of aspirations for national leaders which created an urgent requirement to increase the national income to finance them. This introduced a new dynamic into a public administration that had previously been very heavily dependent on external grants from the Australian government. In the early to mid-1960s, such grants had amounted to approximately 60 percent of total administration receipts (Anon., 1968).

Second, was the rapid pace of localisation that took place in the Public Service, with the loss of many experienced foresters who took with them an in-depth knowledge of the application of forest control measures that could not be readily replaced.

The third factor that had an impact on the functioning of the forest control system was the introduction of provincial government the next year, in 1976.

Forestry became a concurrent function, meaning the power of legislation and control was shared between the national and provincial governments. However, there was no proper division of the concurrent functions. The implication of this was that staff posted to the headquarters in Port Moresby were responsible to the National Minister, while those that remained in the Provinces came under the control of the Provincial Forestry Departments, under the control of the Provincial Premier. The policy and planning functions were retained by the Secretary of the Department of Forestry, while the implementers of these decisions were placed under the control of Provincial forestry officers responsible to the Provincial Governments.

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All these factors combined started to erode previous controls that had operated in the forest sector, without empowering landowners (both individually and collectively) to assert and protect their rights of forest ownership.

The 1991 National Forest Policy and its associated Forestry Act (passed in 1991 and gazetted in 1992) responded to the call from the 1989 Commission of Inquiry for increased State control and planning in the forestry sector. The new Act incorporated the Papua New Guinea Forest Authority and vested it with responsibility for timber industry regulation under the guidance of a National Forest Board. Under the new Forestry Act, the State reserved to itself a monopoly on the right to enter a forest management agreement with landowners. As a result, if landowners cannot strike an acceptable deal with the Forest Authority, they are effectively barred from arranging industrial scale logging on their land. If a forest management agreement is concluded, it is the Forest Board, not the landowners, that selects a forest industry participant to implement the agreement and recommends to the Minister that a timber permit be granted. The new Act saved all projects and agreements approved under former legislation but gave the new Forest Board power to make variations to bring them in line with the new regime.

The involvement of landowners in the forest industry does not have a good record. Under the previous Forestry Act (repealed in 1992), the State acquired timber harvesting rights by dealing with clan agents representing the landowners. Timber royalties were paid directly to the clan agents, who were then responsible for distributing the funds amongst the clan members according to custom. Landowner were very rarely involved in forest management decision making. Under the Forestry (Private Dealings) Act 1971 (also repealed in 1992) landowners were permitted to set up a company and enter into direct agreements with logging companies to arrange the harvesting and marketing of their timber.

The involvement of landowners in decisions concerning timber harvesting within their forests has gone through several phases of experimentation. The Forestry (Private Dealings) Act of 1971 attempted to give landowners more autonomy to negotiate timber sales directly with buyers. This was complemented by working through Forest Development Corporations and, more recently, Landowner Companies. However, none of these mechanisms has a strong record of success.

However, as the 1989 Independent Commission of Inquiry reported, this system led to abuse as landowners were often not in a position to negotiate equitable settlements with large logging companies. As part of the 1979 national forest policy, the concept of the Forest Development Corporation was developed. The aim of these corporations was to assist landowners to participate and share in the benefits of timber operations occurring on their land. It was also intended that these landowner groups would be assisted by the government in their formation and application to harvest and export logs free of most of the mainly ‘infrastructure’ conditions that were imposed Government responded to the findings of the Barnett Report with a comprehensive programme of reform: a new forest policy was prepared through a consultative process, which included national and provincial governments, the forest industry, and some civil society involvement.

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This policy was approved by the National Executive Council in 1990 and printed in 1991. In the same year the forest legislation was thoroughly revised, with new procedures for resource acquisition and allocation. In addition, the regulatory institution was transformed by the creation of the PNG Forest Authority in 1993 as a statutory authority to lead the forestry reform process and devise programmes to manage the forests.

Lawyer David Mossop16 provided an overview of the recent history of the regulation of the forestry industry in Papua New Guinea and critically examined the impact of the Forestry Act 1991 in terms of the constitutional background to Forestry Law. He emphasises that at the centre of any discussion of natural resources law in Papua New Guinea must be the Constitution.

Since that time, it has been the responsibility of the Authority to monitor and ensure compliance of the rules and regulations within the forest sector, including contracts between the State, landowners, and investors. It consists of a statutory forest board, a unified forest service, a management committee in each province and special advisory committees as required.

In more recent years, the concern that commercial timber harvesting in Papua New Guinea was not providing long-term benefits to the country or its citizens resurfaced.

In response to this concern, and to assess the implementation and effectiveness of the new governance regime introduced by the 1991 Forestry Act, government commissioned five reviews on the administration and practice of the logging industry between 2000 and 2005: • Review of Forest Harvesting Projects Being Developed Towards a Timber Permit or a Timber Authority (2000-01).

• Review of the Forest Revenue System (2001-02).

• Independent Review of Disputed Timber Permits and Permit Extensions (2003).

• Review of Current Logging Projects (2004-05).

• Compliance Audits (2004-05).

The different reviews set out a whole range of general governance and project specific recommendations.

Incorporated Land Groups (ILGs) were an innovatory mechanism designed to empower landowners and allow them to assert their ownership rights established under customary law in a contemporary setting. This major innovation concerning customary ownership took place with the enactment of the Land Groups Incorporation Act of 1974. The Act empowered landowners within a group to form a single legally constituted body, the Incorporated Land Group (ILG). An ILG formally identifies itself by listing current members and membership criteria, supported by genealogies. Membership lists can be reviewed on an annual basis to allow flexibility in group membership. Each ILG is required to identify its properties, which must be verified through consensus with neighbouring clans. While the Act does not register 16

TAMING THE ROBBER BARONS? THE REFORM OF FORESTRY LEGISLATION IN PAPUA NEW GUINEA by David Mossop? QUEENSLAND UNIVERSITY OF TECHNOLOGY LAW JOURNAL p 113-130

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land in the ILG’s name, it does record the ILG’s interest in, and control of, the properties listed in its constitution (including named land areas, forests, and rivers). None of these measures interfere with the customary arrangement of temporary access rights to land resources for certain individuals.

Despite this seemingly appropriate mechanism of engaging customary landowners with large-scale development projects, problems associated with the implementation of ILGs associated with large forestry projects met with significant constraints. These were identified by both the 2001 and the 2004 PNG Independent Forestry Review Teams. These problems were: • • •

The first concern was the issue of prior informed consent.

The second concern was the following of due process.

The third concern was how to manage the interaction of large numbers of ILGs within one project area.

The first concerns the issue of prior informed consent. In theory, the Registrar of Land Groups should assist the communities in negotiating the ILG process. However, in forestry projects, this is undertaken by the PNG Forest Authority due to lack of capacity within the office of the Registrar. In some instances, logging companies have undertaken this role, raising the danger of conflict of interest.

The second concern is that ILGs are obtained without following the correct procedures. Many ILGs are not registered by the Registrar of Land Titles in the Department of Lands and Physical Planning, as the office lacks the capacity to process them. Thus, logging projects may proceed without the landowners having been issued with ILG certificates. Fragmentation of ILGs is increasingly commonplace and disputes between neighbouring ILGs are frequent.

The administrative burden of dealing with ILGs, nominally held by the Registrar of Land Groups, has been taken on by the National Forest Service without any formal mandate to do so. At present, the whole system appears to be under severe strain.

The evolution of the legal framework has seen a tussle played out between the State’s desire to control timber harvesting and landowners’ desire to be involved in the sale of a customaryowned asset.

The 1991 Forestry Act re-asserted the State’s monopoly over timber sales. Yet conflicts continue to characterise the forest sector, suggesting that an equitable balance has yet to be found and secured under the law.

Most, if not all, of the forest developers are foreign-based companies from the Asian region.

Landowners regularly take it upon themselves to seek out potential developers and then approach the Government to endorse their developers. This often ends up in conflicts among landowners themselves. It creates conflicts with processes to impartially select developers of timber concessions.

To facilitate development of any forest area especially through logging operations, the Forestry Act 1991 (as amended) stipulates that the rights over timber resources must be willingly transferred by the landowners to the State. This is undertaken by applying the provision of the Act that relates to a Forest Management Agreement (FMA). This agreement is for a period of 50 years. Under the repealed Forestry Act Chapter 216 provisions, the 30

acquisition of timber rights was referred to as a “Timber Rights Purchase” (TRP). The State would negotiate with the landowners for the transfer of timber rights to the State who would then advertise and negotiate with interested project proponents to develop the area.

Ultimately a single developer was selected and allocated the timber concession by way of a Timber Permit (TP), which may have included a Project Agreement.

Under the Private Dealings Act Chapter 217, (also repealed), landowners could deal directly with the proponent to develop a timber area. The State was not a party to these dealings, hence the term “private dealings”. This arrangement was often openly abused by the developers and the State, and its Forestry Department Officials had few legislative powers to intervene on behalf of the tribal owners.

Since the coming into force of the new Forestry Act 1991, both of these Chapters have been voided and replaced by FMAs. There are also other legal means to harvest timber from customary owned lands, i.e., through the allocation of a “Timber Authority” (TA), as provided for in the Forestry Act 1991 (as amended). This is mostly for a short-term period (annual) and restricts the harvestable volume to 5,000 m3 annually. In most cases, the timber harvested is only for domestic processing. However, in the case where the TA is for an agriculture project or road line clearance, where a Forest Clearance Authority is issued, the timber is exported. In all there are three main categories of TAs: domestic processing, road and infrastructure construction, and agricultural purposes. Selection logging is done in the first TA while clear felling is practiced in the second and third categories.

The first record of the Government purchasing timber rights from native customary owners was in 1940, when a small area of forest of 1,519 hectares was acquired by the State. Since then, there was a gradual increase up till the1980s. This rose sharply in the 1990s due to the change in the Forestry Act where large forest areas were acquired under the FMA concept.

The acquisition of forest concessions however has declined since 2000 to date.

The decade in which the largest areas were acquired by the Government or brought into production under the prevailing laws was in the 1990s, when a total of 5.8 million hectares was acquired by the Government and readied to be brought into production. It should be noted that areas brought into production do not include all areas that were acquired by the State and readied for wood production. Most of these areas have commenced timber harvesting, but there are some that have either been cancelled or the status is still being sorted out. Timber concessions nevertheless are gradually decreasing yearly as their term expires. At present about 9.4 million hectares are remaining. By 2020, about 8 million hectares will be left if no new timber concessions are acquired between 2010 and 2020.

The PNG National Forest Policy stipulates as its main objective the “management and protection of the nation’s forest resource as a renewable natural asset”. It further goes on to state that “…. the forest resources of PNG shall be managed in accordance with government programs embodying the principles of sustained yield management …..” (Independent State of Papua New Guinea, : 4). The current forestry law (Forestry Act 1991 as amended) and its Forestry Regulations and various procedures that have been developed including the PNG Logging Code of Practice, Planning Monitoring and Control procedures, etc., are intended as

31

tools to address and promote SFM. PNG is doing its best to ensure that logging companies conform to the SFM tools that have been developed for the country.

Since 1991, selection logging has been the only form of logging permitted in the newer timber concessions that have been secured under FMAs with landowners. This allows for selection logging that is geared towards SFM. To manage forest resources on a sustainable basis, all new timber concessions acquired by the State are for 50 years. This is intended to ensure that there is a second crop after the first 35 years of operation. The efficacy of this selection system has yet to be fully evaluated, as the earliest acquired areas under the FMA concept have not yet expired.

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Merchantable and Non-Merchantable Species.

Any development scheme based on forestry, which must perform long term, is prepared on the forester's appraisal of the forest, how to treat and manage the forest, and on the forester’s assessment of the type and quantities of products that one would expect to obtain within a sphere of where only several merchantable species are acceptable on international markets.

It has been shown that a very common feature of rainforest is the complexity of its floristic composition. Rainforest stands can contain more than 100 different species of woody shrubs and trees per hectare. From a management viewpoint, those species can be broadly classified as those which are merchantable and those which are non-merchantable.

Merchantable species are species which, when of suitable size and form, can be sold as timber products by the forest owner for monetary gain.

17

Non-merchantable stems (when of suitable size and form) are those whose properties are unknown to potential purchasers, or their stocking is too low to permit the collection of commercial consignments.

17

Eddowes P J 1979. The Utilisation of Papua New Guinea Timbers. FPRC Dept of Forest Port Moresby PNG. P2.

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Much work is required by forest product laboratories to firstly study each non-merchantable species, determine its properties, and then market its timber products so that its most desirable properties can be utilised.

Often, the lesser-known species are first marketed as substitutes for species already well established on global markets. e.g., the West African export market has seen the phenomenon of Chlorophora being introduced into world markets as a substitute for teak (Tectona spp), then being established in the marketplace. Finally, there has been the species Piptadeniastrum being placed upon the market as a substitute for Chlorophora.

18

Similarly, many common names are given to rainforest trees comparing them to European species as elm, beech, oak, ash etc. without having any botanical relationship to the European trees bearing those names.

18

Eddowes P J. 1979. The Utilisation of Papua New Guinea Timbers. FPRC Dept of Forest Port Moresby PNG. p5.

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Low quantities of an individual species are a serious drawback to the development of export markets. Because of the problems of inadequate volumes, the forester aims to grow large quantities of a useful species rather than aiming to grow a few scattered and low representative species.

Previously, inaccessibility was a common cause of a species being non-merchantable. This arose because of the cost of log transportation from the remote forest area. Where the extraction and transportation period are long, there is increased risk of degrade from insects and fungi.

In more recent times, improved methods of protecting timber from degrade and more road transportation methods, have reduced the risk of degrade.

Merchantable and non-merchantable species are essentially determined by economic factors.

Market forces, scarcity of wood fibre, improved harvesting methods and other technological advances in time may well result in more species becoming economic.

Poorly controlled harvesting operations can be a major cause of damage to the remaining stems in the rainforest. Because of this issue, logging codes of practice have been developed to ensure reduced impact of logging operations on the residual stands of the rainforest.

By the 1990’s several procedures had been developed to ensure better harvesting and protection of the residual rainforest stands and protection of watersheds.

The role of forests in protecting watersheds has generally been recognized in traditional PNG culture and forests in river catchments have not been disturbed in many traditional communities in the country for many years. Forests have also been recognized and respected as providers of other goods and services. Respect for forests, especially those present in watersheds, is partially embedded in the spiritual and cultural norms of the tribal people.

These forests are thought to be places where the spirits dwelled and hence have often been left alone. Fear of enemy tribes also restrained many communities from venturing into water catchment areas, as they are often isolated areas.

The Government having recognized the significance of catchment areas has ensured that they are protected. In particular, the forest policy, forestry laws and regulations and operational manuals such as the PNG Logging Code of Practice provide specific guidelines on their protection. The Environmental Act also makes provisions for the protection of catchment areas.

.

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Page 6 of the first edition (April 1966) of the Logging Code of Practice delineates that all conditions imposed by the PNG logging code of practice will be in compliance with requirements of: • • • • • • • • • • • •

Forestry Act 1991 as amended.

Environmental Planning Act Chapter 370.

Water Resources Act Chapter 205.

Environment Contaminants Act Chapter 368.

Conservation Area Act 1978.

Investment Promotions Act No. 8 of 1992.

Public Health Act Chapter 226 and its regulations (Drinking Water 1984).

PNG labour Law, Industrial Safety Health and Welfare Act Chapter 175 and its orders and regulations.

Land Transport Board Act as amended No. 11 of 1991.

Civil Aviation Act Chapter 239.

Public Works Committees Act Chapter 28.

Land groups Incorporation Act Chapter 147.

19

The Acts described above are binding on all parties and individuals involved in selective logging in PNG.

19

The Papua New Guinea Logging Code of Practice was formally adopted by the National Executive Council in March 1996.

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There are many key factors that affect the economic viability of the forests of PNG. These include, but are not limited to the following: •

•

•

•

• •

Global and regional market forces. The demand and supply of wood and wood products including pricing has an impact on the economic viability of forest management. High demand coupled with high prices, especially for round wood logs, encourages forest operators to produce more wood – sometimes at the expense of good management practices. The economic crisis of 1997 saw log prices plummet, forcing many logging operators to close business. It also led to significantly lower foreign exchange earnings for the country.

High species diversity. The highly diverse species mix in PNG’s natural forests can pose certain operational problems. Forest-based industries are often not able to meet their market quota for a desired species and sometimes must gather logs from different operation points in the country. In many forest concessions, no single species constitutes more than 5 percent of the total growing stock. This leads to large volumes being exported in mixed species parcels, thereby fetching lower FOB prices, especially in Asian markets.

Low stand density. Forests in PNG have a lower stand density in comparison to other countries in the Asia region. This increases operational costs to extract timber and requires that larger areas be harvested to meet market commitments. Extraction of smaller size logs is often resorted to, which ultimately impacts the prices received in the export markets and, more importantly, the sustainability of forest management, considering that the trees that have been removed would have constituted the crop in the second cutting cycle.

Remoteness of timber concession areas. This creates a concern for logging operators as they must pay higher costs for mobilizing and supplying goods and services to the logging sites. In addition, the remaining forest areas that have potential for forest logging operations are located even further from established urban areas with little or no road or other forms of access. To access these resources would require much capital input from the proposed developers.

Increasing cost of fuel. This has been estimated by some industry sources to constitute more than 50 percent of the operational costs for some projects.

Lack of enabling environment by the Government. This includes issues such as current tax regimes, incentives to improve downstream processing, adequate resource supply, resolution of landowner disputes, and so forth.

Overall forests in PNG have played a significant role in the economic development of the country and will continue to do so for the next decade. Unfortunately, there are fewer areas now that are available for logging operations.

The main key issue in undermining SFM in PNG is compliance by the timber industry to forestry laws, regulations, and procedures. Destruction of residual tree crops and the unwarranted damaging of soils and saplings through large disturbance are some of the issues that will affect sustainability.

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Fuelwood and other Traditional Wood Usage In PNG, outside of the 10 % of land area under possible legal concession, there is much other wood produced, which is unaccounted for in any country statistical database, and which does not attract any taxation charges. FAO in 1976, with a then PNG population of some 2 million people, estimated that annual fuelwood usage alone would be some 3.7 million cubic metres. Other traditional uses of wood including village house building and canoe construction could easily account for another 500,000 cubic metres of wood annually,

Photo left Cloudy Bay Timber Area 2005. Photo credit Dick McCarthy.

Markham Valley fuel wood A. mangium. Photo credit Dick McCarthy 1995.

Construction of Lakatoi Papa Lea Lea north of Port Moresby. – double hulled sailing watercraft Hiri Trade.

Photo Credit Dick McCarthy 2009.

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FAO reported in 2020, that many PNG citizens (over 80 percent) live in rural areas and depend on wood for their energy requirements, especially for cooking and heating. Even for the remainder of the population living in urban areas, wood continues to be an important part of their cooking and heating needs.

With increasing costs of electricity and cooking gas (LPG), many urban populations resort to wood for their energy requirements. The result is that forests close to urban areas, such as the capital city of Port Moresby and other cities and towns, are being cut and sold as firewood in local markets either in the city or on the fringes of the city. Currently, in the Highlands Region of the country, there is a problem with scarcity of wood supplies for heating and cooking.

Extension programmes by the Government to encourage people to plant trees and woodlots in the early 1970s and 1980s have largely been abandoned, thereby resulting in less wood being available for domestic purposes. Apart from domestic use of wood as a source of energy for cooking and domestic heating, wood is also used in the agriculture sector, especially for hot air drying of copra, tea, and other agricultural commodities. Up to now there have been no policies or regulations in place to address the use of wood as a source of energy.

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Difficulties of Mensuration (Measurement of Tree and Timber Quantities) Forest management for the purpose of producing a sustained yield of timber, is largely dependent upon a knowledge of the amount of standing timber in the forest and its rate of growth.

Vanimo Rainforest understorey. Photo credit Ian Whyte 1974.

The problems facing the forester in obtaining this essential information of stocking and growth includes: The first problem is botanical rather than mensurational. It comes from the difficulty in identifying many of the species present. This of course is related to the problem already mentioned of many rainforest species having completely unknown qualities. Forest industry personnel cannot be expected to develop markets for them when the forest manager is unable to identify them. Recognition of seedlings and saplings of the merchantable species is of great importance to the type of silvicultural treatment needed in any one area.

Well-drained Rainforest Open Bay TA. Photo credit Ian Whyte 1974.

The second problem is the form of the trees because of the difficulty they create in measurement. Highly fluted stems and/or tall buttresses are common in many rainforest trees and make the measurement of stem diameter awkward at best or almost impossible. Height measurements are difficult and time consuming in the rainforest. The dense growth of understorey species and vines obscure vision and can create appreciable errors in the estimation and even measurement of both merchantable and total tree height.

The use of aerial photography as an aid for forest mapping and forest management greatly assist forest managers in the measurement of forest stands. More recently the advent of GPS provides additional assistance. However, even with these modern aids, for more intensive types of assessment of rainforest stands, ground sampling methods modified to suit modern statistical design, are still essential to establish what is present on the ground.

Well-drained rainforest Open Bay TA 1974. Photo credit Ian Whyte.

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In the assessment, because of the ever-growing range of “economic” species, it is essential to assess all stems of good form and suitable size, even though they maybe unmerchantable at the time of assessment.

Individual unmerchantable stems pose difficult problems to the forest assessor and to the timberman. Although some are clearly useless due to poor form and obvious signs of internal decay, most stems on field inspections may not show any form of visible defect. In practice, felling of such stems with an allowance for defect which can then be observed internally is often used as a way of overcoming such problems.

The growth rates of trees in the rainforest are the other basic piece of information needed to introduce sustained yield management practices. However, the growth rate is still far from certain in most areas. The problems here include the absence of reliable growth rings and the great variations in diameter growth of individual species of similar size and species.

Light Light is one of the most important dependent, micro-climatic factors in its affect on rainforests, but is relatively unimportant as an independent factor in broad regional climatic patterns. It is of course an essential factor in the development of any vegetation, as the source of the photosynthetic energy needed for plant growth.

Poor penetration of light in Vanimo Rainforest. Photo credit Ian Whyte 1974.

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Agencies of Damage Throughout geological time, PNG’s vegetation is associated with Australian vegetation due to the influence of continental drift, coupled with a history of climatic fluctuations.

The present boundaries of rainforest are far from static. Given freedom from fire and other disturbance, there would be a tendency for rainforest to encroach into adjoining plant formations.

PNG is a land wracked by continual catastrophe. The mountains are young and continuing to uplift as the Australian plate subducts below the Pacific plate, so earthquakes with associated landslides are frequent on the young steep slopes. There are numerous active volcanoes, which create lava flows and mudflows and thick ash deposits.

Strong destructive winds occasionally occur. In exceptionally dry years those forests that are always slightly seasonal become unusually dry and may catch fire. The big rivers that run on the coastal plains have unstable courses. Shifting cultivation and associated regrowth forest is also extensive. It is no surprise that lists of timber tree species for a tract of lowland rainforest in PNG usually include a considerable proportion of pioneers, such as species of Albizia, Paraserianthes and Serianthes, or Eucalyptus deglupta, besides strongly light-demanding climax species such as Campnosperma spp, Pometia pinnata and Terminalia spp.

The impact of El Nino Southern Oscillation events (this is part of a pantropical climatic perturbation which results from anomalous warming of the usually cool surface of the eastern equatorial Pacific Ocean) has seen rare droughts in the tropics (PNG 1972), which in turn are linked in recent times with higher and higher incidences of uncontrolled bush wildfires throughout affected tropical areas. The recovery of fire damaged stands is slow and a downward spiral to non-forest cover is one potential outcome.

Photo Left Ramu River near Madang. Photo credit Dick McCarthy 2001.

Photo Right Volcanic explosion 1994 Rabaul Airport. Photo Credit Dick McCarthy.

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Tropical rainforest areas are subject to many agencies which severely damage or destroy the trees and or timber products. Examples include: • • • • • • •

The effects of periodic cyclones on the tropical rainforest.

The ravages of high populations of native and/or introduced animals.

The significance of various insect attacks on various species. e.g., insect attack on Araucarias as hoop in the Bulolo Valley PNG. Fire.

Illegal logging/unsustainable harvesting and misuse of forested lands.

Invasive species.

Genetic pollution.

Trees which have passed maturity in the rainforest commonly show considerable degrade due to the attacks of insects and fungi. Damage of this type can also occur on immature trees, especially where they have been damaged previously at some time in their life by large animals, falling trees and tree limbs or even fire. The defect to the stem from such causes, renders many of the trees economically worthless. This can be one of the major reasons for the relatively low yields obtained from virgin rainforests.

Weed growth, on a scale not encountered in any other type of forest, provided another type of damage to the growing trees in the rainforest. Fast growing, unmerchantable trees develop rapidly after the rainforest is opened. This, coupled with prolific vine growth which occurs under similar conditions in most rainforest areas, suppresses, deforms, and frequently kills much of the useful regeneration occurring within it. Vines, stranglers and probably to some extent mistletoes, continue to damage potentially valuable stems throughout their life.

Rainforest Recovery after Harvesting Disturbance. North Coast PNG near Wewak.

Photo credit Dick McCarthy.

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Logs taken from the rainforest are also liable to heavy damage from insects and fungi. While some species show a high resistance to this type of damage, most species, and particularly the faster growing light timbers, are highly susceptible.

More recent changes to utilisation patterns in the rainforest have been possible through the production of more rapid mechanical extraction and haulage, thus lessening the chances of deterioration, coupled with improved measures both to protect logs and to increase the durability of the timber in service. However, much work remains to be done in this area because the wet humid hot climate of rainforest areas aggravates the problems of susceptibility of logs to insect and fungal attack. The wet climate also causes long periods when it is impossible to harvest logs from the forest and reserves must be created to store logs for long periods. Logs are particularly prone to damage when stored for long periods unless special measures are taken to protect them.

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CAUSES FOR CONCERN The Role of Forest Industries in Sustainable Forest Management (SFM) The place of forest industries in general industrial development. The forest, as a renewable natural resource, may on reflection prove of primary rather than secondary importance.

PNG Forest Industry Display. Photo credit Dick McCarthy 2004.

Vigus (2002) listed four difficulties associated with sustainable forestry development being based on the export of roundwood: • Large quantities of logs (3,000 to 6,000 m3) need to be harvested in a short time to avoid degrade occurring between harvest and loading to fill log ships.

• The extraction of large-sized logs, often more than 25 metres, causes excessive damage to the residual stand during the extraction process, leading to a slower recovery of the stand.

• The premium on high quality logs results in much waste at the log yard, where logs are trimmed to cut off the “defects”, which are then burned.

• Cultural ties, land-tenure systems and the geography of PNG preclude the setting aside of areas large enough to sustain export logging.

The huge surge in log exports in 1992/93 reflected the very high international prices for tropical hardwood logs following log export limitations imposed by the Malaysian states of Sabah and Sarawak, compounded by a spate of new permit approvals in the lead-up to the gazettal of the new Forestry Act in June 1992. However, the vulnerability of roundwood log exports to international market conditions was clearly demonstrated in late 1997 with the first signs of the ‘Asian crisis’, which was to affect the region’s economies. A significant downturn in the tropical timber trade ensued and the price of logs fell. PNG, together with Indonesia and Malaysia, were the worst hit major tropical wood producers. Since 2001 there has been a take-off in the amount of exported processed wood products. Much of this export production comes from the Rimbunan Hijau Timber Processing Ltd.’s veneer plant at Panakawa in Western Province.

The interplay between international market forces and the government regulatory regime has determined the development and structure of the forest sector over the past fifty years. PNG does not have a significant domestic market for wood due to a small population that has 46

limited buying power. The export market is therefore the driving force in setting wood demand, and this is likely to continue. The low level of development in many rural areas has driven policy to seek early returns from forest development. In the absence of local government capacity, central government has looked to project operators to provide much rural infrastructure, including health care facilities, schools, roads, and other forms of communication. Although such benefits may be transitory, declining as logging operations cease, they are also very tangible when and where they exist. To date, there appears to have been little study of how these benefits might be secured for the long-term, and how the transition in service provision from the private sector to government might be managed.

FAO reported in 2020 that PNG has been a net exporter of wood products for many years while its domestic consumption is low. Round wood log exports have been the main export commodity, with about 90 percent of its harvested timber volume exported as logs. Within the four regions of the country, the New Guinea Islands Region has been the region with the highest production of wood and round wood log exports and continues to maintain that position. This is attributed to the fact that there are far more logging projects in the region with substantial logging quotas, due to the better forest types with higher stand densities than other regions of the country. Most, if not all, of the accessible forests in the Islands Region have been acquired and allocated for wood production, leaving only a few areas that, due to their topographically difficult nature, remain untouched. The Southern Region has been the next highest producer of round wood logs and forest products.

The Highlands Region does not have any major logging operations due to the physical nature of the region where access is a problem. There is only a handful of small sawmills operating, which rely on a small volume of log harvest. Most of the trees harvested are converted into sawn timber for domestic consumption. There are a number of portable sawmills operating in the region, however records of their production and operational areas are often sketchy.

The technology used in the timber industry is varied, but in general not sophisticated. There have been some investments in new technology, especially in downstream processing plants such as ply mills, veneer mills, and some sawmills. Much of the equipment is recycled, especially the logging equipment used for harvesting and transportation of logs. A few furniture-making companies have some level of sophistication in their machinery. However, the bulk of the companies involved in the timber industry do not employ very high technology. This is partially a result of the relative low wage structure that enables companies to operate without any real need to mechanize their operations with high technology.

Most of PNG’s trade in forest products is mainly in the form of round logs for export to countries such as China, Japan, India, Viet Nam, Republic of Korea, Malaysia, Philippines, and Taiwan, P.O.C. This is followed by exports in woodchips, sawn timber, plywood, and veneer. Small amounts of furniture have been exported. PNG has over the years also been importing forest products, mainly finished products as in household/office furniture, building materials, and other products such as laminated timber for construction. All of PNG’s paper requirements are imported.

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The Need for Improved Forest Inventories.

Source 1959 Commonwealth Dept. of Territories. An expedition preparing to set out from Port Moresby in 1885 for the crest of the Owen Stanley Ranges.

FAO reported in 2020 that of PNG’S total land area of 46.2 million hectares, several estimates have been given for the total forested areas in the country. For example, in 1975 it was estimated that a total of 33.667 million hectares were covered with forests, and this was reduced to 29.4 million hectares of which 25.2 million hectares were still intact in 2005 (FRA, 2005). In a recent report, Shearman et al. (2008) reported that the total forest area in 1972 was 33.227 million hectares and this was reduced to 28.2 million hectares of which 25.3 million hectares were still intact in 2002. The Government agency responsible for forestry, the Papua New Guinea Forest Authority (PNG FA) estimates the forested areas to be 29 million hectares with 24 million hectares still intact. Some of these reports have also given differing percentages for annual deforestation rates per year; 0.5 percent (FRA, 2005) and 1.41 percent (Shearman et al., 2008). Due to these differences, there is a need for PNG’s forest areas to be further verified using such technology as remote sensing. In 1975, PNG had a total forest cover, based on an assessment using aerial photography, of 33.065 million hectares of forest.

These assessments were done under the administration of the Australian Government, with CSIRO heavily involved in carrying out natural resource surveys in PNG. There was not much heavy demand placed on the forests to meet the country’s developmental needs during the early 1960s and 1970s.

Hence the decline in forest cover during that period was much lower than in the mid-1980s to 2000. A rapid decline in forest cover took place between the mid-1980s due to an increase in global and especially regional demand for round wood logs as well as the demand for food due to increase in population.

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Whilst PNG has been reported as having a forest cover of between 28 and 29 million hectares, these figures have still to be verified using remote sensing. Expert opinion is that there is more forest area than has been reported, since forest losses were reported based on the area of forests that were under production, but which were being selectively logged (rather than cleared). Hence in terms of forest cover, the areas still under forest should be greater than calculated because many of the logged over areas have not been converted to other land use such as large-scale agriculture.

PNG has reported a growing stock of some 1.035 billion m3 of wood of which approximately 50.7 percent is designated for wood production and other commercial use. From other woodlands it was reported that there were some 4.474 million hectares though no growing stock estimates were provided as data were lacking on these areas (FRA, 2005).

PNGAF magazine issue # 9B-5A of th 8th of June 2021, described the history of assessment of PNG’s Forest Resources till 1975. What of tomorrow?

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Photo Mosaic Legend - top to bottom, left to right.

Year 1964 1970 1967

Location Derembat Manus Tiauru Pandi Survey Camp HQ Ioma

1966 1944

Lae

1944

Lae

1967

Kumsi

1970 1970 1972 1963 1964

Vanimo Pual River Vanimo General Gogol Bougainville

1963

Gogol

1967 1970 1963

Ramu Gogol First helicopter Survey.

Gogol TA

1968 1964

Kassam Pass area Empress Augusta Bay Bougainville Toneli Harbour Bouganville Vanimo

1970 1964 1970 1970 1855 1968

Empress Augusta Bay Bouganville Tiauru Pandi Bialla Ossima Vanimo Near Port Moresby Tabibuga Patrol Post Jimi Valley Survey

Characters Going ashore.

Dick McCarthy, Bob McKeowen, Francis Tigi.

Communicating by field radio to base at Ioma.

Bill Wallace helicopter pilot.

Lt J S Talbot surveyor; WO 2, W Spencer, draughtsman, and Sgt H M Crossley outside drawing office of 1 Forest Survey Coy 1944.

Warrant Officer 2 W Spencer using stereoscope on aerial photographs 1 Forest Survey Coy. Eric Hammermaster, Gary Flegg, John Davidson, Bill Wallace.

Vanimo Survey.

Essential item.

Archer tree height converter wheel.

Crossing Gogol River.

Advance party Roading toward Toimonapu Plantation. Bougainville.

Gogol Survey 1963 Evan Shield, John Lowien, Eric Hammermaster, Bill Jenkin, Norm Endacott, Kevin White.

A typical cleared heli pad.

Bush Survey Camp.

20 Gogol Survey Boss Boys 1963 L to R Norm Endicott, Johnny Lowien, David “dokka” Reid, Eric Hammermaster, Jim Cavanaugh, Evan Shield, Peter Eddowes, Pilot Hurrell, Don McIntosh, Bill Jenkin, unknown, unknown, Kevin White, unknown.

Alick and Molly Dockrill.

Ken Granger assessment in Terminalia brassii swamp forests Survey Sept-Oct 1964. Money in the swamp photo.

Weighing wood samples Evan Shield, Dick McCarthy.

Measuring T brassii Mom Hill swamp.

Photo credit Ken Granger Dick McCarthy

Found a tree or two.

Ceremonial burning haus pek pek.

Expedition Port Moresby to crest of Owen Stanley Ranges.

Villagers clustered around the helicopter.

Dick McCarthy Ian Whyte Dept of Territories

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Chris Borough Ken Granger Aust War Memorial

Aust War Memorial

Ken Granger Ian Whyte Mike Jones Gary Archer Mary Jenkin Peter Eddowes Mary Jenkin

Ken Granger Ian Whyte Mary Jenkin

Mark Coode Ken Granger

Ian Whyte Ken Granger

Paul Ryan

Land Use - National Agricultural and Industrial Development Nationally in PNG, emphasis is given to agricultural and industrial development. The place of the forest (whether permanent or temporary) in relation to the picture of rural development is severely impacted.

Forests and the forestry sector have been contributing significantly to the overall economic development of the country. The forestry sector is a major contributor to GDP along with the mining and petroleum sectors, the fisheries sector, and the agriculture sector. As mining and petroleum are non-renewable sectors, forestry will increasingly be at the forefront in the coming years, together with fisheries and agriculture.

The forestry sector, and specifically SFM, will face major challenges and competition with the agriculture sector. Already there are many land-use conflicts between forestry and agriculture with the conversion of forest lands to agricultural lands. The absence of any intersectoral land-use planning in the country will make conflict between competing land uses inevitable.

PNG’s forests and forestry will continue to be impacted by: • • • • •

Traditional forest owners’ increasing needs and aspirations for development.

Increasing population.

Increasing demands for cash income to meet the costs of basic goods and services.

Infrastructure development.

Overall national economy with the government emphasis on forestry sector for economic development.

• Regional and global wood demands.

• Environmental issues including potential issues to mitigate climate change.

• Adequate supply of raw materials (wood) including reforestation/afforestation activities.

• Costs of fuel and shipping.

• Labour costs.

• Incentives to industry participants in the forestry sector.

• Creation of enabling conditions by the Government.

• Global wood and wood product prices.

• Landowners’ willingness to enter into FMAs. • The ongoing landowners’ attitudes of conflicting interest in land use after entering into forest management agreements and their own internal conflicts relating to landownership pose threats to SFM. PNG society is changing from a society based on traditional culture to one that is increasingly adopting western styles of living and conducting business. In doing so, the needs and wants of society are changing such as the need of the rural-based population wanting better education and health services.

To satisfy needs and wants, cash is needed and many people being rural dwellers do not have ready cash. But they do have forests, and forests can be converted to cash. Hence, there is a

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tendency to approach the Government to facilitate the development of their forests to enable them to derive an income that will be used to meet their needs and wants.

According to the preliminary census figures for the year 2000, PNG’s population was just over five million. Eighty-five percent of the population live in rural areas. Population densities range from one person per square kilometre in remotest areas to over 500 persons on some small islands. Land shortages are increasingly common where the population density exceeds 100 persons/km². Between 1980 and 2000, the average growth rate was 2.7 percent per year. The total population has doubled over the last 30 years and is expected to double again in the next 30 years. By 2020, the population is expected to increase to 8 million.

This increase in population will obviously put pressure on all the natural resources, including forests. Rising populations will need to be fed. To do so more natural forests will likely have to be cleared, mainly through shifting cultivation. Forested areas that were in the past left untouched, such as the catchments, will be increasingly threatened to make way for food gardens.

Hoskins Oil Palm Development New Britain 1995. Photo credit Dick McCarthy.

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Ecological Basis for Rainforest Management Management and Treatment of the Forest. The need to establish an ecological basis for PNG rainforest management yet ensuring a multiple use of forest resources.

FAO estimated in 1976, that then with a population of some 2 million people, shifting agricultural systems cleared approximately 200,000 hectares of regrowth and virgin forest annually.

PNGAF MAGAZINE ISSUE # 9B - 4 of 6th April 2021, addressed in detail, the moist tropical rainforest life cycle and forest dynamics and its applicability to PNG’s forests.

For foresters to understand rainforest management, it is necessary to examine the life cycle of climax rainforest vegetation. Herein lies the basis for successfully managing rainforest vegetation, or indeed, any vegetation.

Forest ecology is the scientific study of the interrelated patterns, processes, flora, fauna, and ecosystems in forests.

The general pattern of growth for any area of climax (mature) rainforest is one of an overstorey of large trees, most of which tend to be light demanders throughout most of their life. Beneath these trees, are one or more lower stories which contain both smaller individuals of over storey trees and mature trees of lesser stature. Large climbers are present in the upper canopy, epiphytes occur on the trunks and branches, shrub layers and in places, a herb layer is found in the undergrowth, while on the ground are fallen leaves, seedlings and seed.

Competition is severe and mortality amongst seedlings is high.

In PNG’s mixed rainforest stands, the actual composition is largely a matter of chance, depending not only on the size of the opening but upon the species present as seedlings and /or saplings when the opening is formed, and the climatic conditions that exist at the time of creating the opening.

Forest dynamics describe the underlying physical and biological forces that shape and change a forest ecosystem. The continuous state of change in forests can be summarized with two basic elements: disturbance and succession.

Rainforest silviculture is the manipulation of the forest to favour certain species and thereby enhance its value to Man. It is not a science (in its own right), but it is applied ecology.

The forester needs to understand all the factors involved in regenerating the more desirable species. This includes flowering and fruiting, seed dissemination, germination, distribution and development of regeneration, size class distribution, and pattern of growth leading to climax vegetation in the rainforest.

Rainforest soils tend to be generally infertile and deficient in plant nutrients. It is probably that infertility, which provides the main limit to production on rainforest sites. Rainforest plants are clearly adapted to making the best use of these infertile sites.

Sustainable utilisation of the rainforest depends on working within the limits of ecosystem nutrient cycles. Shifting agriculture works by using the capacity of trees to grow on acid 53

infertile soils and bring nutrients from the soil into the biomass. During the bush fallow period, nutrients reaccumulate in the vegetation, partly from the soil and partly from rain.

Shifting agriculture and selective removal of trees do not cause serious permanent depletion.

More complete biomass utilisation for wood chips or in plantation forestry will deplete ecosystem nutrients unless balanced by rain and soil inputs.

The ecological basis of natural forest silviculture is the manipulation of the forest canopy. By controlling canopy gap size, it is possible to influence species composition of the next growth cycle.

Rainforest silviculture will be successful so long as it is practised within the biological limits of the forest.

Foresters have no control over changes to the climate. Yet, forests are sensitive to climate.

Climate change can have a great effect on the dynamics of the ecosystem.

Cloudy Bay TA 2005.

Photo credit Dick McCarthy.

Middle Ramu Timber Area.

Photo credit Dick McCarthy 2001.

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Policy Issues and the Forest Resource • • • •

Forest ownership.

The establishment of new forests.

Management of natural forests.

Issues between the forest owner and the user of the resource.

The forester managing rainforests must cope not only with challenges as unmerchantable species, agencies of damage, and difficulties of mensuration and economic problems but also with issues involving government policy.

Government policy issues may involve problems of immediate expediency or be ones related to long range land use planning.

Forest Ownership Land tenure is a common issue. In many tropical countries, the present political units are amalgams of various tribes, which until more recent times, were locally autonomous and often at war with their neighbours. Land within each tribal area was frequently vested in the local population. If governments wanted to dedicate forested lands readily to forestry, then the governments would be involved in either purchasing the lands or persuading the respective tribes to reserve the forested areas with the forest management then being left largely to the government forest service.

Traditional owners had forestry capital and forested lands, but they had no global monetary worth unless they developed their forests and lands.

Such issues of land tenure have resulted in very slow progress, if any, of the dedication of large areas of forested lands for permanent forest estates.

In countries where the respective government has purchased outright, forested lands, problems which affect the management of the forest include long established local traditional owner rights such as shifting cultivation, hunting, collection of minor forest products and even the collection of major forest products for local use.

In countries still possessing relatively large areas of rainforest, they may face appreciable problems to organised forest management when extensive areas of forest are suddenly opened for closer settlement. When such development threatens forest reserves, strong action is needed by all interested parties to ensure that adequate areas of forested lands remain for all future needs. However, even when the reserves are not threatened, the increase in timber supplies form the land being cleared can lead to a decline in production from the actual permanent forest estate, with consequent disruption to planned management.

Establishment of New Forests.

Other major policy problems of a different type also exist. Taking a long-term view, it seems inevitable that more and more of the production forests in rainforest regions will ultimately be managed as plantations rather than relying on natural regeneration. Pressure for land for agriculture and the apparent greater efficiency of certain species to perform as plantation species will in time force this change. The question then arises as to the timetable for changing the emphasis in rainforest management from natural regeneration to planting.

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Natural regeneration treatments can, in many cases be financed from the revenue obtained from logging the original forest. Plantation establishment involves a large deliberate outlay of monies based on future yields of the ensuing plantation complex.

There is a real need economically to consider the costs, yields and returns both from natural regeneration treatment and from plantations in the light of anticipated population growth, demand for timber and the likely long-range view of the amount of area for production forestry. Frequently, these detailed investigations normally point governments to consider the need for greater immediate emphasis on plantations.

Management of Natural Forests It must be considered, that in finding the solution to the problems of rainforest management (i.e., political, economic, technical, and silvicultural), all add to the cost of producing timber from the managed rainforest area, even when the timber produce being derived is contributing to the respective country’s development and export earnings.

Many of the services provided by forests (as well as some of the costs of poor management of the resources) have no market price and, therefore, are not usually considered in the private sector decision-making process.

For example, a forest manager operating in the upper part of a watershed does not get paid for the services that the forest might provide to others located downstream. They may include soil protection against erosion and protection of irrigation and hydropower dams against sedimentation.

Similarly, the forest manager does not receive compensation for capturing carbon, maintaining scenic beauty or for preserving biodiversity resources, all of which may be of value to national societies or the global community.

In such situations, the forest manager does not obtain financial payment that reflects the total value of all the services provided the forest under management and, consequently, will have less of an incentive to manage the forest in a sustainable way.

In situations where such non-market values may arise, the question that the forestry policymaker faces are: how important are the “external” effects of managing forests in a sustainable way; and if somehow it was possible to “internalise” them into the decisions of the private operator, would they be important enough to encourage sustainable forest management?

There is enough technical knowledge to design sustainable wood production systems that work in most ecological situations. Thus, it is likely that the preponderance of unsustainable forestry practices in many of the world's forests is due to factors other than a lack of technical knowledge. Among the possible factors leading to unsustainable forestry practices, the financial implications of different forest management systems are of paramount importance.

It is reasonable to expect that, without regulation, private investors, forest landowners, farmers and timber concessionaires would only manage their forests in a sustainable way if it were financially advantageous. Evidence gathered from several examples around the world indicates that sustainable wood production can produce acceptable financial results.

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However, the evidence also shows that, at least over the relatively short periods of time considered by most private investors, unsustainable practices are even more profitable.

Thus, it appears that in most circumstances, private investors will have little financial incentive to adopt sustainable forest management methods. Consequently, strategies to promote sustainable forest management must make such an approach more financially attractive than its unsustainable alternatives (i.e., “cut and run” options). Because timber is generally the product of highest commercial value in most forests, it seems likely that improving forest management for timber production must be a key element of these strategies.

What are the factors that reduce the comparative profitability of sustainable forest management as a forest management option?

To fully understand how sustainable forest management might be promoted in the future, it is useful to answer the following questions: • Why is sustainable forest management financially unattractive compared to “cut and run” or “cut and convert” forest management options?

• Is sustainable forest management intrinsically unprofitable or could this be due to the prevalence of incorrect signals determining pricing and output decisions, in distorted and very imperfect markets?

• To what extent are these distortions compounded by or ameliorated by government action and policies?

The simple answer to the first question posed above, is that sustainable forest management, compared with “cut and run” forest management options, tends to have fewer benefits in the short-term but larger benefits in the long-term.

Given the strong time-preference for the present amongst most private individuals, the future benefits of sustainable forest management have little weight in today’s commercial decisions.

Therefore, “cut and run” forest management options tend to appear more profitable, in most cases, than the alternative of sustainable forest management. A major factor behind this financial disadvantage of sustainable forest management, is the slow growth rate achieved in many of the world's natural forests.

Furthermore, the long-term penalty of unsustainable harvesting practices is often reduced because forests that have been heavily logged, even those where the harvesting has been really damaging, often recuperate with a surprising vitality. This rapid accumulation of biomass occurs in the first two or three decades after harvesting.

The relatively slow growth of most natural forests is one of the main factors contributing to the relatively unattractive financial returns that can be obtained from sustainable forest management.

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There is some hope that the benefits of sustainable forest management may increase due to better silviculture, rates of growth in commercial timber prices, better harvesting and processing technologies that are likely to appear in the future. Hopefully, potential timber revenue from sustainable forest management, can be increased in the future.

The factors that might lead to such increases, including the following: • Improvements in silviculture, that boost the future growth of commercial timber volumes.

• Possible increases in the future prices of select grades of commercial timber, particularly for tropical woods, as these resources become scarcer.

• Changes towards the utilization of species that are not, at present, considered commercially valuable, but may become valuable as markets develop.

• Increases in the commercial volumes that can be harvested from a given area of forest, because of advances in industrial processing technology that allow small diameters of roundwood and mixed species to be used to manufacture solid wood and fibre products.

• Increases in the commercial volumes that can be harvested from a given area of forest, due to the use of improved harvesting technology that reduces harvesting waste.

Issues between the forest owner and the user of the resource.

Inevitably there are problems between the forest owner and the user of the resource. These usually fall into the following distinct types: • • • •

The question of how long an operator may be conceded the right to operate or in other situations, how much wood they may be allowed to remove.

The question of establishing a mechanism for determining the value of the wood as it is removed.

The question of replacing the resource.

Industry related policy issues as • Trade policies.

• Exchange rate policies.

• Financial incentives and foreign investment.

• Supply scenarios as o Resource constrained supply. o Cost efficient supply.

Any such recommended policy package must be based on forestry legislation which clearly sets out the responsibilities for creation, management, exploitation, and replacement of forests. Concession periods and wood pricing arrangements must be firm and consider the proposed end-use.

Supposed justification of tariff protection and quantitative restrictions on imports to protect certain industries can lead to the development of industries which are inefficient in relation to competing in international markets. Trade policies must be such as to stimulate the 58

development of efficient forest industries to supply domestic markets, and where appropriate, to export. Exchange rates should be set (and where necessary adjusted) to ensure that importers and exporters are paying prices or receiving revenues which truly reflect the international value of the goods being traded.

Overall, the recommended policy package must ensure commercial returns for undertaking to sustainable forest management of forested lands.

Of course, over time there will arise options to increase the financial benefits of sustainable forest management. Factors to be considered include: • • • • •

The overall costs and benefits from implementing sustainable forest management by estimating the value of non-market benefits from forests.

Attempts to redistribute benefits.

The problem of market failure.

Institutional challenges to the implementation of sustainable forest management.

Faulty government policies.

PNGAF Mag 9D -3 address the Issues of Planting and Rehabilitation of Rainforest Areas.

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•

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REFERENCES Alder, D. 1998. The ITTO permanent sample plots in Papua New Guinea: some results of analysis. Paper presented at the ITTO Workshop on Permanent sample plots and growth models for natural forest management in Papua New Guinea, held at the Forest Research Institute, Lae, 10th – 13th November 1998.

Alder, D. 1999. PINFORM: a growth model for lowland tropical forest in Papua New Guinea. ITTO project report PD 162/91 – Papua New Guinea. Anon. 1998.

Asia-Pacific Forestry Sector Outlook Study ii Working Paper Series Working Paper no.

APFSOS ii/wp/2009/19 Papua New Guinea Forestry Outlook Study by Papua New Guinea Forest Authority. Food and Agriculture Organization of the United Nations Regional Office for Asia and the Pacific Bangkok, 2009. APFSOS ii.

Ball J Sustainable Forest Management Chapter 2 An overview of the Commonwealths’ Forest Resources. Commonwealth Forestry Association 2005.

Anon. 1990. The Barnet Report. A summary of the report of the Commission of Inquiry into aspects of the timber industry in Papua New Guinea.

Baur G N I The Ecological Basis of Rainforest Management. Andre Mayer Fellow 1961-62 UN Food and Agricultural Organisation.

Department of Forests. 1974. The National Forest Policy. Port Moresby, PNG. Ewing A & Chalk R The Forest Industries Sector – an Operational Strategy for Developing Countries. World Bank Technical paper # 83.

FAO 1976 Forest Resources in the Asia and Far East Region – Papua New Guinea.

FAO 1999 Towards Sustainable Forest Management: an examination of the technical, economic, and institutional feasibility of improving management of the global forest estate.

Arnoldo Contreras-Hermosilla FAO Consultant.

FAO 2014 The State of the World’s Forest Genetic Resources.

Filer, C. [ed.]. 1997. The political economy of forest management in Papua New Guinea. NRI monograph 32. NRI, Port Moresby and IIED, London. Filer, C. with Sekhran, N. 1998.

Loggers, donors, and resource owners. Policy that works for forests and people series no. 2: Papua New Guinea. NRI, Port Moresby and IIED, London.

Forestry and Timber Bureau Australian Department of Agriculture 1975. Multiple Use of Forest Resources. ISBN 0642008655 Hunt, C. [ed.]. 2002. Production, privatisation, and preservation in Papua New Guinea forestry. Instruments for sustainable private sector forestry series. IIED, London.

Johnson, N, and Cabarle, B, 1993, Surviving the cut, WRI, Washington D.C. Johnson, S, and Sarre, A, 1995, Economics and natural tropical forest management, ITTO Tropical Forest Update, Vol 5, No 4, pp 3-6, ITTO, Yokohama.

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Kingston B 1989 Forest Management. Working document # 6 FAO Forest Management Research and Development Project PNG. FAO: DP/PNG/84/003.

Kingston B 1989 Forest mensuration in the Natural Forest. Working document # 14 FAO Forest Management Research and Development Project PNG. FAO: DP/PNG/84/003.

Mantu, J. 1985. The history of forest development in Papua New Guinea. In: Vigus, T.R. [ed.]. Seminar proceedings. The future of forestry in Papua New Guinea, held at the PNG University of Technology, Lae, 18th – 19th November 1985.

Montagu, A.S. 2002. Forest planning and management in Papua New Guinea, 1884 to 1995: a political ecological analysis. Planning Perspectives. 17: 21-40.

Mossop D. Taming the robber barons? The reform of forestry legislation in Papua New Guinea. Queensland University of Technology Law Journal p 113-130.

Overseas Development Institute January 2007. What can be learnt from the past? A history of the forestry sector in Papua New Guinea. Papua New Guinea Forest Studies 1.

Saulei, S.M. and Aruga, J.A. 1994. The status and prospects of non-timber forest products development in Papua New Guinea. Commonwealth Forestry Review. 73(2): 97-105.

Shearman P 2008 et al. The State of the Forests of Papua New Guinea: mapping the extent and condition of forest cover and measuring the drivers of forest change in the period 19722002. ISBN 9789980937483 University of Papua New Guinea.

The 2003/2004 Review Team. 2004. Towards sustainable timber production – a review of existing logging projects. Final Report. Volume 1. Report prepared for the Inter-Agency Forestry Review Committee, the Government of Papua New Guinea.

Turia, R.C.H. 2005. Cannot See the Land for the Trees: the forest management dilemma in Papua New Guinea. Department of Human Geography, Research School of Pacific and Asian Studies, Canberra, Australian National University. Doctoral Thesis.

Vigus, T.D. 1996. Reforestation Naturally. The technique. Kandrain Gloucester Integrated Development Project, Kimbe, West New Britain. Project Design & Management and ANUTECH. Vigus, T.D. 2002. Contribution to rural development by sustainable timber harvesting. Past failures, future prospects. Paper presented at the Fourth Huon Seminar on Strategies for effective rural development, business, and education, held at the PNG University of Technology, Lae, 10th – 12th September 2002.

Wyatt-Smith, J, 1987, Problems and prospects for natural management of tropical moist forests, in: Mergen, F, and Vincent, J R, (editors), 1987, Natural management of tropical moist forests, Yale University Press, New Haven.

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ACRONYMS AAD ACT ACIAR ACLMP AEC AFAP AFS AFPNG AIF AMF ANBG ANGAU ANU APMF APPM ASIO ASOPA AusAID BA BCOF “Beer Time” BFC BGD BNGD BUC C cm CALM CFA CNGT CRE CRE

CSIRO CHAH DASF DBH/ dbh DEPT DIES

Australian Antarctic Division Australian Capital Territory Australian Centre for International Agricultural Research AusAid funded World Bank Land Mobilisation program.

Administrators Executive Committee Australian Foundation for the Peoples of Asia and the Pacific Ltd. Australian Forestry School Association of Foresters of PNG Australian Infantry Forces Australian Military Forces Australian National Botanical Gardens Australian New Guinea Administrative Unit Australian National University Australian Paper Manufacturers Forestry Pty Ltd Australia Paper and Pulp Manufacturers Australian Security Intelligence Organisation Australian School of Pacific Administration Australian Aid Agency basal area British Commonwealth Occupational Force 1945-52 Any time.

Bulolo Forestry College Bulolo Gold Dredging Company British New Guinea Development (Company Limited) Bulolo University College Commonwealth Centimetre Western Australian Department of Conservation and Land Management Commonwealth Forestry Association Commonwealth New Guinea Timbers Bulolo Commander Royal Engineers CRE is a term inherited by RAE from RE and is the term for the Commanding Officer of a RAE unit which is headed by a Lt Col. Although the officer is called the CRE the name is also used for the name of his unit.

E.g., CRE Aust Forestry Group or 1(NG Forests).

Commonwealth Scientific and Industrial Research Organisation Council of Heads of Australasian Herbaria Dept of Agriculture, Stock and Fisheries Diameter at breast height Department Department of Information and Extension Services.

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DPI DOF e.g.

Etc FAO F &TB FIM FMA FPRC FRA FRG FRI Forkol FSP/PNG GAB Gbhob Gubab GIS ha IBRD IFA IFY ITTC ITTO JICA L of N LRRS m3 MCCAF MHA MM NAA NARI NB NDS NFCAP NGM no.

NG NGF NGIB NGI NGO NGVR

Department of Primary Industry Department of Forests For example et cetera (more of the same) Food and Agriculture Organisation Forest and Timber Bureau Canberra Forest Information System Forest Management Agreement Forest Products Research Centre Hohola Forest Resource Assessment Forest Red Gum Forest Research Institute Lae Bulolo Forestry College Foundation of the Peoples of the South Pacific Girth above buttress Girth breast height over bark Girth under bark above buttress Geographic Information Systems Hectare International Bank for Reconstruction and Development Institute of Foresters of Australia International Year of the Forest International Tropical Timber Council International Tropical Timber Organization Japanese International Cooperation Agency League of Nations Land Resource Soils Survey (branch of CSIRO) cubic metre McCarthy & Associates (Forestry) Pty. Ltd. Member of House of Assembly PNG Military Medal National Archives Australia National Agriculture Research Institute New Britain Northern District Sawmills PNG National Forestry and Conservation Action Plan New Guinea Mainland Number New Guinea New Guinea Forces (relates to plant collection of Lae Herbarium) New Guinea Infantry Battalion New Guinea Islands Non-Government Organisation New Guinea Volunteer Rifles 64

NZ NSW NTSC OIC OISCA P or p PIB PIR PNG PNGAA PNGAF PNGFA PNGFIA PNGRIS PNGUT POM Q QF RAE RPC RRA SFM SP TAG UK UN Unasylva UNE UNEP UNI UNITECH UNRE UPNG UQ US USA TPNG TUBL TA TA TRP Vol VSF

New Zealand New South Wales National Tree Seed Centre PNG Bulolo Officer in Charge Organisation for Industrial, Spiritual and Cultural Advancement International Japan. page Papuan Infantry Battalion Pacific Islands Regiment Papua New Guinea Papua New Guinea Australia Association Papua New Guinea Australian Foresters Magazine Series Papua New Guinea Forest Authority PNG Forest Industries Association Papua New Guinea Resource Information System PNG University of Technology Port Moresby Queensland Queensland Forestry Royal Australian Engineers/Australian Army Royal Papuan Constabulary Rapid Resource Appraisal Sustainable Forest Management South Pacific Trade Advisory Group of ITTO United Kingdom United Nations Journal of FAO of UN University of New England Armidale NSW United Nations Environment Program University University of Technology Lae PNG University of Natural Resources and Environment University of Papua New Guinea University of Queensland United States United States of America Territory of Papua and New Guinea Territory United Brewery Ltd Timber Area Timber Authority Timber Rights Purchase volume Victorian School of Forestry 65

WA WB

Western Australia World Bank

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