The latest trick: Carry a big stick
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Stiff penalties to be imposed if timber is bought or sold over fixed price | | Logging Regularised: The new dispensation will stop hoarding and start equitable distribution |
Natural Resource Pricing Committee 11 January, 2011 - Both sawmillers and customers will be penalised if they sell or purchase timber above the price fixed by the natural resource pricing committee (NRPC).
This is the latest strategy of the department of forest and park services (DFPS) to curb the soaring timber price. While many strategies had been put in place to regulate the exorbitant timber price, DFPS officials say this time they mean business. A sawmiller will have to follow the price that came into effect in February 2010 (see table) and violators will be penalised, says official. A notification was circulated last week, which states that sawmillers and wood-based industries would be levied a 100 percent penalty on the approved price for the first offense, or a prison term equivalent to the value of the amount of fine imposed. “If detected for the second time, in addition to the first penalty, they’ll be barred once from participating in the timber allocation system,” states the notification. Violating for a third time would mean being barred from participation in future allotment (based on lucky dip system). The case would be forwarded to the economic ministry, with a recommendation to seize the business license. People purchasing timber above the fixed rate would be charged Nu 100 for every cft (cubic feet) purchased, or serve a prison term equivalent to the amount of fine imposed.  |
The decision was made, keeping in mind the huge shortage of timber and the shooting price even after the government had a fixed price, said an official. DFPS director Karma Dukpa said that the department did not have the legal backing to penalise people, who violated the price fixed by the committee. The forest rule did not have a provision on the legislation aspect on timber policy, he said. “Without legislation we couldn’t regulate and monitor,” he said. The director said that all possible aspects of making timber affordable for customers and profitable for sawmillers were looked into and the rule will be strictly implemented and monitored. The present system of allocating timber in log form (lucky dip system) was discussed and agreed upon by both sawmillers and wood-based industries, said the director. “This system will ensure that logs from the source are cheaper, because it isn’t an auction where price is determined by bidders, often flaunting the fixed floor price,” said karma Dukpa. The department had already warned the sawmillers about the new rule, and expects customers to cooperate in their effort to make timber affordable. “If customers cooperate and inform us on being charged higher than the fixed price, we can take action,” said the director. While sawmillers say that they are adhering to the rule, those in the timber and construction business say that it will be difficult to implement, as the rush for timber would drive the price up. “Only big contractors will reap the benefit. There should also be a ceiling for those buying timber from sawmills,” said a contractor, who is desperately looking for timber to complete his project. | 201 Timber complain hotline |
However, the director said that availability of timber would be better. He said that, unlike in the 1999 pricing policy, where logs were sold through auction and hoarded by sawmillers, timber allotted through the lucky dip system should be lifted and used within a month of the allotment. “If they fail, they’ll forfeit the timber and the earnest money deposited,” he said. The director said that all sawmills would get timber, as those unlucky at allotment would be given preference in the next draw. The department is also looking into supplying more timber to sawmillers and wood-based industries in log form. The production target has been increased from 1.9M cft in 2010 to 2.2M cft in 2011. “By 2013, we’ll target to increase it to 2. 5M cft,” said Karma Dukpa. By Ugyen Penjore |
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