BANKER SAYS NO REASON TO STOCKPILE LOGS IN

admin's picture

SOLOMON ISLANDS

HONIARA, Solomon Islands (November 4, 1997 - PACNEWS)--- The Governor of the Central Bank of the Solomon Islands, Rick Hou, says there is no reason for logging companies operating in the country to stop exporting their felled logs.

Hou told the environmental newsletter, Sol-Tree Nius, that the logging companies can still make a profit even when export prices for hard wood logs are down.

The Central Bank Governor was responding to the current stockpiling of about $20 million worth of round logs which the government fears could have a serious effect on government finances and the national economy.

He said logging companies should know that log prices cannot always remain at the same level, so they should have made allowances for price fluctuations.

Hou said Vanuatu, Papua New Guinea, and the Solomon Islands are all affected by the drop in log prices because an over production by two large producers -- Indonesia and Malaysia -- selling to the same Asian markets, has resulted in a drop in demand.

Rate this article: 
No votes yet

Add new comment