The Mahogany Industry Council has announced several major resolutions to restructure and reform Fiji’s mahogany industry to better preserve Fiji’s mahogany resources and maximise industry efficiency.

Prime Minister Voreqe Bainimarama in his announcement said: “Our mahogany industry has unfortunately suffered from a lack of regulation and organisation.

“These reforms will dramatically boost efficiency throughout the industry and protect the industry in the long-term.”

The resolutions approve a restructure of the Mahogany Industry Council’s mahogany licence issuance framework to reflect industry developments since the establishment of the licensing system in 2011.

The new licensing system is based on a more realistic annual log production capacity of 75,000 cubic metres and will also standardise log prices, limit licences to two per log grade and revise purchase protocols.

Consultations on the licensing restructure were conducted with existing licensees and the Fiji Mahogany Trust, which represents mahogany landowners.

The restructure is expected to begin on 1 January 2017.

Rates for landowners engaged in mahogany leases with FHCL have been reviewed for the first time since 2010.

Rental and stumpage rates will increase by 19 per cent and premium rates will increase by 20 per cent.

These rates will be back dated to 1 January 2016.

To facilitate the sale of surplus Grade 1 and 2 mahogany logs currently stored in concentration yards, temporary licences will be issued to FHCL to call for expressions of interests from interested buyers.

The resolutions call for the establishment of a Central Concentration Log yard at the Waivunu facility in Serua to improve the coordination of log sales and delivery.

FHCL’s recently established nursery project in Nukurua, Tailevu will also reactivate its replanting programme, with a target of replanting 1,250 hectares by the end of the year.

“This restructure will effectively restore the sustainability of our mahogany industry and profitability for our landowners,” said Mr Bainimarama.

“These reforms lay the foundation for future growth and will also preserve these important natural resources for future generations.”

The Mahogany Industry Council oversees major development initiatives implemented within the mahogany industry.

The Council will meet on a quarterly basis to monitor the progress of these initiatives.