Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694861745076.pdf (Fiji)
APPENDICES Appendix 1 Written Evidence Ministry of Forestry 2016-2017, 2017- 2018 and 2018-2019 Ministry of Forestry Responses to the Standing Committee on Natural Resources Questions on the Ministry of Forestry’s 2016 - 2017 Annual Report No.

Question 1.

Page 7 – Report on Performance Can the Ministry please inform the Committee on the status of the “Planted Forests Policy”, what does this policy cover and who are the beneficiaries of this policy?
Ministry of Forestry’s Response The Planted Forest Policy is still a draft which needs to be reviewed to include current forest sector priorities, both national and international.

The scale of plantations can only be determined following a National Forest Inventory to gauge domestic needs and economic performance expected from the sector.

This will determine the extent of plantations required to substitute removals from native forest for timber needs.
This Planted Forest Policy will guide the establishment and development of new plantation enterprises involving teak and sandalwood, existing commercial-scale plantation forests within both Fiji Pine Limited (FPL) and Fiji Hardwood Corporation Limited (FHCL) lease areas, new plantation development for the production of fuel wood, fibre, bio-fuels as well as carbon forests, community forests, small scale tree planting schemes, agroforestry including food forests, urban forestry and private woodlots.
This will ease the burden on native forests, allowing them to provide services such as sequestrating carbon, improving biodiversity values and the maintenance of other environmental services, with timber being a lesser by-product.

The potential for a considerable increase in the extent and area of planted forest management is significant and there is sufficient under-utilised land in Fiji that can accommodate these new developments.
However, there is a need for a clear and coherent national policy framework to guide strategic actions and investments in these planted forests to reposition forestry as a desirable and sustainable land use.

include current and developing plantation The beneficiaries industries, landowners with idle land and willing to develop plantations, woodlots, Agroforestry and sandalwood farms, etc.
Without formal leasing of land, these landowners can attract investors to partner with for long term economic development.

The investors, forest sector, government and the nation will also benefit from this Policy.

2.
2.

Page 17 – Development of and Reduction REDD+ Readiness Emission Program The annual report states that secured FCFP “Fiji had Fiji’s REDD+ work began in 2009 with support of the Secretariat of the Pacific Community (SPC) and the German-funded GIZ Regional Program: “Coping with Climate Change in the Pacific Island Region” (CCCPIR).

Through this partnership arrangement, Fiji developed its 2011 REDD+ Policy, which guided the REDD+ work in the following years.
In 2013, Fiji submitted its Readiness Plan Idea Note (R-PIN) to the World Bank managed Forest Carbon Partnership Facility (FCPF) for consideration.

In 2015, the Fiji Government entered into a Page 1 of 6 No.

Question Ministry of Forestry’s Response of US$3.8m funding to implement its R-PP from 2015 – 2019, with co-funding from the Fiji Government and the SPC/GIZ Regional Programme Coping with Climate Change in the Pacific Island Region”.

Can the Ministry please update the Committee on this?
contractual agreement with the WB-FCPF to develop its Readiness Preparation Plan (R-PP) and a grant (TF 019024) of USD 3.8 million was approved.

In 2017, an additional funding request of USD 2 million was approved, taking the total grant fund under the WB-FCPF to USD 5.8 million.

The co-funding from SPC- GIZ ended in 2019.

The Fijian Government continues to contribute around $400,000 annually to the REDD+ Program.
The readiness grant (TF 019024) of USD 5.8 million is basically to support the development of Fiji’s Monitoring, Reporting and Verification (MRV) system to support the Emission Reductions Program and facilitate the MRV obligations and requirements during carbon trade.
This includes: a) The establishment of a REDD+ Unit – currently a 9-member team under the Ministry of Forestry’s Forest Resource Assessment & Conservation (FRAC) Division, which is responsible for the daily operations and management of the readiness grant and the rolling out of the Emission Reductions Program; b) The development and enhancement of an integrated National Forest Monitoring System (NFMS), which also includes the updating of information on Fiji’s forests through the national forest inventory and allometric work that will be completed by December 2022.
Through this work, Fiji will be able to calculate, update and report each year on the level of Green House Gas (GHG) emissions that have been reduced or removed; c) Establishment of the Safeguards and Feedback and Grievance Redress Mechanism (FGRM) monitoring systems, which are both operational.
This is an important and mandatory requirement, which ensures that the rights, aspirations and interests of all are protected and respected; d) Development of a Benefit Sharing Plan, which will govern and ensure the fair and equitable sharing of the carbon payments received after the level of emission reduction has been independently verified; e) Capacity building through training, education and awareness raising – this activity has begun through the Readiness phase and will continue over the duration of the 5-year emission reduction program.
The readiness grant (TF 019024) agreement was expected to end in 2019 and was extended to December 2020.

However given the challenges and difficulties brought on by the spate of tropical cyclones and the COVID-19 restrictions, the grant closing date has been extended again and will now end on the 31st December 2022.

3.

Page 26 – Seed Production a) According to the annual report it states that “There was a great decline on the volume of seeds being collected compared to previous years.
The quantity of native seeds have been reduced to as low as The Ministry has upgraded its Seed Laboratory facilities to improve seed germination rates and quality, improvise technology to propagate plants vegetatively from cuttings rather than seeds only, established projects with SPC and FAO to invest in more tree climbing equipment, training tree climbers and decentralising seed collection to divisions to include more manpower.
More recently, the Ministry has to a certain extent outsourced procurement of seedlings from communities and private nurseries as well as tenders for large scale seedling purchases.

These community arrangements also enable rural Page 2 of 6 No.

Question Ministry of Forestry’s Response 50% deficit due to many factors”.

Please advise what strategies has the Ministry taken to deal with this?
communities to participate in an area of forestry that has increasing social, environmental and economic benefits.It has outsourced seedling production partly to accommodate the volumes required in any given year.

b) Furthermore it also states that “One of the greatest challenges in this work is to have the required volume of the seeds to cater for all demand forest activities”.

Was the Ministry this able challenge, if yes, what has been done?

overcome any on to 4.


Page 29 – Tree Improvement is the progress What Private Wood Lots whether the LOU are support of the programme?

for and in The above has not only allowed the Ministry to achieve its yearly targets, but also support income generating initiatives for communities and forest based micro small medium enterprises through the collection and sale of seeds and seedlings.
Research Trial plots In terms of research trial plots, the support that the Ministry received from the LOU has been very positive as they have taken ownership of the programme by conducting monthly maintenance and weeding of Research plots and the Silviculture Research Officers only come in for assessment of the mixed species planted in the 0.23 Ha of land.
After 7 years of conducting studies, the team is in a position to produce a status report on the growth performance of the different tree species planted.

Plantation forests For plantation forest, the establishment of Private Wood Lots is normally undertaken by the Fiji Pine Trust under the provisions in the Fiji Pine Decree.
It confirms the following activities: (a) providing assistance to forestry industry and any components thereof including the development of landowners related thereto and extension forest schemes; such assistance being in the form of advisory, financial, managerial, marketing and any other assistance as it relates to investigating possible plantation areas, establishing such forests, planting, growing, maintenance, logging, transportation and end use production and ancillary industries associated with forests and products therefrom and to employ any third parties for the purposes thereof; and In the above activities, the LOU are actively involved in the whole process.
Apart from the above, the Ministry of Forestry through the Reforestation of Degraded Forest (RDF) project is also working with communities to establish their own plantation forests.

The 30MT15Y tree planting initiatives supports the RDF activities through the planting of trees in other areas.

5.
5.

Page 33 – Way Forward for the Silviculture Research Division Improvement – the Ministry has ongoing discussions with the Pacific Community on capacity building for tissue culture and is seeking funding opportunities to support research in this area.

Capacity Building Page 3 of 6 No.

Question Ministry of Forestry’s Response Areas that needs improvement includes capacity building, research publication and in- depth analysis.
Have resources been provided to the Ministry to make improvements to these areas?

6.

What were faced some of by the the challenges especially when Ministry transiting single a into portfolio (from Department to Ministry) and how have these been overcome?

7.

Can the Ministry please provide targets and achievements on the Ministry’s contribution to GDP in 2016-2017 financial year?
The Ministry is committed to elevating the standard of research which has resulted in the employment of university graduates to lead research sections and is addressing capacity gaps through the submissions of Training Needs Assessment and nominating staff for this.
Research publications  The Ministry now has a specific allocation for publication of books and periodicals with a funding of $1,500.00  The Research Division together with the Australian Centre for International Agricultural Research (ACIAR) has published four (4) scientific papers and 2 are currently under peer review.
For the 2021-2022 Annual Operation plan, the following are the key performance indicators (KPIs) that the Research Division has to achieve in the Ministry’s efforts of advancing forestry research:  Partnership established with local and international organisations to fund research;  Collaborative research with local and international organisations to identify research gaps; and  Reviving existing partnerships with local and international partners such as International Bamboo and Rattan Organisation (INBAR), Asia Pacific Association of Forestry Research Institutions (APAFRI) and the International Union of Forest Research Organisations (IUFRO).
The transiting of the then Department of Forestry to a single portfolio, a Ministry on its own, presented more opportunities for the Ministry and allowed more focus to its core role of sustainably managing Fiji’s forests.

The challenge in the first few months was expected due to the transfer of staff, particularly for the corporate division, which had been shared with the Department of Fisheries.
However, these did not affect the technical work and key roles of the Ministry as the technical Divisions continued with their daily key roles.

The Ministry’s contribution to GDP is mainly driven by log production, timber processing and exports.

For the 2016-2017 financial year, the target for log production as per the Ministry’s Annual Corporate Plan was 131,000 cubic meters for both native and plantation species.
The Ministry surpassed this target with the total log production of 251,222.8 cubic meters.

This of course positively impacted the timber processing industries and other community forest-based companies boosting local production and exports.

A total of 284 export permits were issued for forest products generating a total revenue of $33.0 million.
Compared to previous years, this $33.0 million is relatively low as the country and community forest-based companies were still recovering from the devastating impacts of TC Winston.

However, from 2017 onwards, production and exports of forest products slowly recovered and positively contributed to Fiji’s GDP.

8.
8.

Can the Ministry please briefly clarify what are the training programmes in Nasinu and how effective are these In addition to the one (1) year Certificate in Woodcraft Manufacturing, the Ministry of Forestry also deliversshort-term training courses at the Timber Industry Training Center which are supported by the Timber Utilisation and Research Division in terms of the provision of the training facility and resource personnel.
These training courses although tailor made to the timber industry needs, are also offered to interested forest resource owners who may be Page 4 of 6 No.

Question courses?

Ministry of Forestry’s Response considering processing logs from their forests.

The short-term training courses include; 1.

Basic Sawmilling (2 weeks) 2.

Basic Saw Doctoring (2 weeks) 3.

Timber Grading (2 weeks) 4.

Timber Seasoning (1 weeks) 5.

Timber Preservation (1 week) 6.


Timber Machining (1 week) The aim of the Timber Industry Training Center at Nasinu is to build community and industry capacity to improve the efficiency and effectiveness of timber processing and manufacturing to ensure the best use of timber with minimum wastage, and contributing to the sustainable management of the country’s forest resources.

9.
9.

Page 51 and 52 – Financial The variances were caused by: Statement a) Can the Ministry please explain the large variances in the TMA account?

1.

As per FMIS record $301,452 was recorded as expenditure from $2.5m that was received for the purpose of salvaging of logs.

The balance of $2,198,459 is recorded as differed income.

2.

The Ministry has a balance of $1,425,227.54 in TMA bank account which will be transferred to CFA account during the closure of TMA.

3.
3.

The balance of $773,231.46 was used for other expenses related to TMA operations.

After consulting Assets management unit (MOE) for posting of these expenses.

The Ministry was advised that the remaining entry will be posted during the closure of TMA which is by 31st of July 2022. b) There were 6 Qualified Opinions stated by the Office of the Auditor General.

Please advice on the status of these Qualified Opinions?

Operating fund Account (RFA) 1.


The issue of understated balance of $276,181 has been sorted with the Ministry of Economy which has approved that the adjustment will be done in financial year 2021/2022 based on the evidence.

Trading and manufacturing Account 2.

Un-reconciled balance between bank statement and GL of $104,597 was cleared in the last financial year 2020/2021 3.

As per FMIS record $301,452 was recorded as expenditure from $2.5m that was received for the purpose of salvaging of logs.
The balance of $2,198,459 is due to incomplete entries processed in FMIS.

After consulting Assets management unit (MOE).The Ministry is advised that the remaining entry will be processed during the closure of TMA which is by 31st of July 2022.

4.
4.

The TMA Profit and Loss issues have been amended and verified to date as the Ministry is working closely with the Assets Management & Monitoring Unit Ministry at Ministry of Economy in resolving all the issues pertaining to the Profit and Loss and all the remaining entry and posting will be cleared before the closure of TMA before 31st July.

The Ministry of Economy is on the verge of closing down the TMA at Nasinu before close of this financial Page 5 of 6 No.
Question Ministry of Forestry’s Response year2021 - 2022.

5.

This recorded sales has been amended and has been resolved and verified to date as the Ministry is working closely with the Assets Management & Monitoring Unit Ministry at Ministry of Economy to resolve all pending issues and all recorded sales postings will be done before the closure of TMA in this financial year 201 -2022 .
The Ministry of Economy is on the verge of closing down the TMA at Nasinu before close of this financial year 2021 - 2022.

Trust Fund Account 6.

The Ministry of Fisheries is s working closely with the Ministry of Forestry on trust fund account beneficiaries listing clearance before the third quarter of this financial year 2021 – 2022.

Page 6 of 6 Ministry of Forestry Responses to the Standing Committee on Natural Resources Questions on the Ministry of Forestry’s 2017 - 2018 Annual Report No.
Question Ministry of Forestry’s Response 1.

Page 8 – Legislative Framework Forest Certification is about auditing Forest Management to a Standard to show adherence to best management practices that balances social, environmental, and economic interest.

is Can the Ministry please the explain, what progress on certification of Native Forest and Mahogany plantation?
a) Fiji’s native forests is not currently managed and hence the supportive governance framework is in need of development, which is currently underway.

It involves the collaboration of all forest stakeholders with a different mind-set to what has existed until now.

Realigning fundamental values across all the stakeholders that often have competing and/or conflicting issues requires some time.

Licensed areas have been selectively harvested and allowed to regenerate naturally.
b) Mahogany plantations of Fiji Hardwood Corporation Ltd are now under new management, which is currently forging ahead with establishing best management protocols after having paid off all debts for the first time in existence.

All their staff have been evaluated, streamlined, and the superfluous let go.

FHCL is now well placed to develop its management to the high standard required to pass the Certification audits.
This also requires some time, especially with the new COVID—19 protocol compliant work practices to include and the distractions natural disasters like the worsening tropical cyclones that are happening more frequently.

2.

Page 10 - Gender Equality Opportunity Can the Ministry please provide Gender a breakdown on staffing within the Ministry?

3.
3.

Page 11 - Review of and development of Forest and Legislations Regulations Established GWE Project Total Ratio Male Female Total 84 62 26 172 71% 55 10 5 70 29% 139 72 31 242 The 1992 Forest Act does not have Emission Reduction processes, procedures, regulations and legislation to be guided by.

Bill No.

13 of 2016 was completed and went through 2 readings in parliament before Parliament reconvened and the Ministry was advised to resubmit this.

1 No.
1 No.

Question Ministry of Forestry’s Response Can the Ministry please explain the delay in re- introducing the Forest Bill No: 13 of 2016 to Parliament?

4.

Can the Ministry please to who is the clarify as regulating Mahogany operations?

Further edits were undertaken except in the area of Carbon trade.

This required the enactment of the Climate Change Act 2021 (CC Act).
Having the CC Act in place, the Forest Act was reviewed accordingly and the emission reduction component added to include the responsibility of the Ministry under the CC Act.

The Review of the 1992 Act has now been finalised and awaiting vetting by the SGs Office.

Mahogany operation is regulated by the Fiji Hardwood Corporation Limited (FHCL) under their own Harvesting Code.
Under the Mahogany Industry Development Decree 2010, it is the function of the Fiji Hardwood Corporation Ltd acting on the direction of the Mahogany Council to manage all operations in connection with the planting, growing, harvesting and sale of mahogany on mahogany plantation land.

Mahogany plantations on private land or individually owned land are regulated by the Ministry of Forestry.

5.
5.

Page 14 a) Can the Ministry explain why there was a reduction log in production of native about timber from 60,000m3 to 39,000m3 in 2018?

in 2009 the With the availability of mahogany logs through Licensing by FHCL, most companies opted to process this instead of investing in Natural Forest logging which required investment in road accesses, harvesting crews, carting of logs and other planning operations unlike with mahogany logs which were delivered to the Company’s sawmill.
Additionally, it is expected that native log production will decline further due to high costs and limited accessibility as well as awareness on maintaining forests for carbon sequestration and incentives through carbon trade in future.

the b) Can the Ministry explain why there was a reduction log in production of mahogany from about 92,000m3 in 2010 to 11,285 m3 in 2018?

FHCL had procedural and licensing issues, as expected of all newly established companies.
The high value grade 1 logs were exclusively licensed to the company Sustainable Mahogany Industries (SMI) which had very high sawmill inputs to supply their markets and when this company left, there was a period of adjustment to accommodate further licensing changes including costing and changes in management.

This is now expected to change positively with new management at the helm.
is the c) Sawmill Production: ideal What benchmark for the rate of recovery and what are some of the challenges that sawmills are faced with so that this could be improved?

The ideal benchmark for the rate of recovery is 50 percent.

The sawmill recovery is determined by a number of factors including the sawmill set up and capacity.

The following were identified as the major contributing factors to the loss of production recovery.

1.

Incompetent sawmill machinery operators; 2.


Condition of machines and lack of maintenance knowledge; 3.

Sawing defect due to the inexperience of saw doctors; and 4.

Some managers are production driven.

5.

Log geometry The Ministry is working very closely with the industry to improve performance through the provision of training, technical advice and assistance.

We have noted huge 2 No.

Question Ministry of Forestry’s Response improvement in sawmill hygiene, Health & Safety and recovery (i.e.
Aug 2019 – Jul 2020 Financial Year, recovery – 48% average and Aug 2020 – Jul 2021 Financial Year, recovery – 49% average).

Sawmill recovery is calculated based on conversion of logs to sawn timber only as a primary product.

Internationally, average recovery of log to sawn timber is 57% on average since converting round logs into rectangular sawn timber results in wastage.
Some sawmills maximise use of whole logs by processing waste after sawn timber into shorts for furniture, bark and rounder parts into hog fuel for biomass powered plants, sawdust for farms and bark-less waste into chips.

6.

Page 15 a) Referring to Graph 7 on Export and Imports, can the Ministry provide data export by species?

for 3 No.

Question Ministry of Forestry’s Response b) Can the Ministry provide an explanation on who approves the logging plans?
The issuance of a timber licence is subject to the approval by the licensing officer of a logging plan prepared by the applicant in accordance with the Logging Plan section of the Forest Act 1992, which states: “(2 The logging plan shall: (a) specify the annual cut and any periodic limits within which the rate of timber harvesting shall be maintained; (b) specify any trees to be left in place; (c) specify any minimum utilizable sizes of timber to be felled; (d) indicate the layout of roads and skidding trails which the licensee undertakes to construct; (e) specify any reforestation or other post-harvest operations.
(3) The licensing officer may require revision of the logging plan relating to that licence at intervals of not less than one year.

(4) Compliance with the contents of the logging plan shall be a condition of any timber licence”.

plans c) Does the Ministry have any to future replace imported products with our locally available products and what your would be E.g.

strategy?

The Ministry fully concurs with the Government’s aim of reducing imports by import substitution.
Our strategy now is for all importers applying for timber products that are also produced and available locally to submit a letter of confirmation from the local producer that they cannot produce before a timber import permit is considered for approval by the Conservator of Forests.

Products that we are currently targeting now which are readily available locally are; 1.

Pine sawn timber and profile products 2.

Pine post and poles 4 No.


Question Ministry of Forestry’s Response Increase value added products and sawn reduce timber/exports and at time reduce sawn timber imports by import substitution?

the same 7.

Page 18 a) Can the Ministry elaborate on the MOUs and its progress?

8.

Page 25 Can the Ministry provide the result or progress of the Forestry training school in Nasinu since its inception?

9.

Page 32 What has been the result of Sentinel plants trial at Kings Wharf?
Can the Ministry please provide a the Committee?

brief to 3.

Mahogany sawn timber and profile products 4.

Veneer 5.

Plywood and 6.

Blockboard There are other panel products such as hardboard, Masonite board, Chip board, etc.

that are also imported but are not produced locally.

This will require huge investment and availability of raw materials to consistently produce and supply the markets.
Feasibility studies needs to be conducted and the sustainable management of our forest resources will always be priority for the Ministry.

The MOUs in question are MOUs with the Ministry of Employment, Productivity and Industrial Relations (MEPIR) and Land Transport Authority (LTA).

The MOU with MEPIR was signed in 13 December 2018 to strengthen compliance in forest based operations and ensure the health and safety of all workers in the forestry sector.
This MOU also requires joint monitoring of harvesting operations and this is done biannually with the Monitoring, Control, Surveillance (MCS) project officers of the Ministry.

The MOU with LTA is under review and yet to be finalised with LTA.
The training had assisted the resource owners and those that requested for government assistance with a programme, Cottage Industry, whereby it provides machines and materials for up to a year for candidates to train themselves and at the same time earn income to buy their own machines until they are well established.

Woodcraft Technology also trained candidates that are interested in Furniture and Joinery work.

Most of them have been employed in the private and public sector.
Also, the Forest Subsidy is utilised for Processing and Woodcraft.

For Processing, applicants have been given exemption to buy machineries and start their businesses and Woodcraft applicants have been given small portable machines to start or extend their businesses.

Sentinel plants are defined as plants/potted plants present in the vicinity of high-risk sites such as Ports of Entry.
These are inspected at regular intervals for signs and symptoms of pest/disease attack The Forest Health team had set up 5 sentinel plants comprising of the following species along the peripheries of the Kings Wharf: 1.

Mahogany 2.

Pine 3.

Guava 4.

Teak 5.

Sandalwood.


The choice of these species is part of the early detection approach that the Ministry is undertaking to curb the establishment and spread of exotic forest pests and diseases whereby the selected tree species would attract insects and pests that may have gone undetected on cargo vessels and shipping containers.

5 No.

Question Ministry of Forestry’s Response 10.

Can the Ministry please explain more on the minimum felling girth of forest trees?
The species chosen are of high economic value to Fiji and which needs to be protected from potential pests and diseases which could wipe out these industries.

The type and degree of infestation on the sentinel plants will be indicative of the presence of the exotic species which will warrant a swift eradication response from the Biosecurity Authority of Fiji and the Ministry.
The incursion will only be technically feasible if incursion is detected while still contained within a very small area and any delays may be critical in allowing further spread.

The presence and spread of the exotic species will have detrimental impacts on the native biodiversity, commercial operations on plantation forests (which make up 12% of our Fiji’s Forested area but 90% of revenue from exports), Trade and associated operations i.e.
nursery operations, domestic transfer of seedlings as well as adversely impacting on urban streetscapes and gardens.

For the 2017-2018 fiscal year, there were no detection records from the sentinel plants as all were showing healthy growth.

Assessment on the species includes observations on the parts of the seedling and physically detecting symptoms or actual insect/pathogen incursions.
Forest trees naturally grow to different sizes and the minimum felling girth listed for each species in the Diameter Limit Table (DLT) specifies the minimum sizes that should be extracted.

This removes the biggest trees of each species while maintaining the natural biodiversity composition and structure of the native forest.
The forest ecosystem services such as water and air purification is also well maintained and there are also more resources such as light, water, and space left for the remaining trees to grow up.

These are the next generation trees that can be felled in 20 years’ time, so that there is significant wood materials supplied from the native forest in a sustainable manner.
DLT 2019 95 Ai Masi Dakua makadre 1 Dakua salusalu 1 Vuga DBH (cm) >= 65 Aumunu 1 55 Bau 45 African Tulip 40 Dabi 2 Anita 2 Bauvudi 2 Bati Tabua Dilo 2 Bako (all spec) Bo nakavu Bausomi Bauloa Baumika Bausa Bausawa Bo/Boloa Bosawa Corikula Dawa Drala Duvula Ivi Kabi Buabua 1 Cibicibi Dalovoci Damabi Damanu ( all species) 1 Dava Degedege Diriniu (K) Didi Kaunicina 2 Kaunisiga Kautoa Bulu (all spec) Cevua 4 Doi 3 Doidamu Doko ni sau Drausasa Drautolu Dulewa Gadoa Kadi Kauceuti 2 Kaudamu (all spec)1 Dogo 3 Nawanaw a 2 Sagali * ALL Others 6 No.
Question Ministry of Forestry’s Response Kuasi 1 Lolo Mako (all species) 4 Mala (all spec) Masiratu 4 Mavida Kaukaro Kaumakita Kaunigai 2 Kavika Laubu 3 Lauci Mavota 2 Midra Moivi (all spec) 4 Nokonoko Nuqa Qumu 3 Roro Rosarosa 2 Rosawa 1 Sa 4 Sarosaro 4 Sasawira 3 Sikeci Tavola (all spec) 3 Tomanu Vau ceva Velau 4 Vesiwai Vure Yaro Yasiyasi 3 Lidi/Kasiga 4 Macou Makosoi (all spec) Maqo Mariko Molaca Masimasi Molaca Nunu Sama loa Selavo Sole (all spec) Sorua (all spec) Soso ni ura Tadalo Tiri vanua Tokatolu Vasa/Rewa (all spec) Vota Vutu (all spec) 4 Vutu kana 4 Kauvula 1 Koka 4 Manawi Manui Maqo ni veikau Marasa Mocemoce (Raintree) 2 Okeoke Sacau 2 Salato Sasaqilu Sevua Sivia Tabadamu Tabulina Tarawau Tivi 3 Tivi vula 3 Totowiwi Ucaca Vacea Vaivai (all species) 3 Vesi 1 Vesida Waciwaci 2 Wi Wiriwiri Yaka 1 Yatuvu Yawe Royalty classes 1 to 4 The Ministry is currently implementing the provisions under the Native Land (Forest) Regulation 1985.
The regulations specifically prescribed species specific diameter limit.

A standardized tree selection according to the legally required DLT is officially part of the regular forest harvesting licensing preparations.

11.

On the logging of forests - Can the Ministry please identify the reforestation on logged areas done by licensees and contractors?

Any activity carried out after logging operations is normally determined by the landowners.
While some opted for agriculture use, those that opted for reforestation confirmed their intention while applying for the license to harvest.

The Ministry through the respective Beat officers supervises the harvesting and reforestation activities during the term of the license.

Contractors assist the licensee through the purchase of seedlings as well as paying labourers for the tree planting.

7 No.

Question 12.
7 No.

Question 12.

Landowner Participation – How can the Ministry landowner improve participation in forest business activities?

13.

Page 54 - Forest Parks, and Recreation Reserves Ministry of Forestry’s Response Through the provision of skills training and capacity building through the Forestry Training Centre and community based trainings on-site.
Having resource owners undertake Certificate in Forest management to better understand and contribute to the development of forest resources in their respective communities.

No, they are not, but both are managed by communities.

Can the Ministry please confirm whether Drawa and Abaca are also included as Natural and Forest Reserves?

14.
14.

Has the Ministry held a its symposium the stakeholders to timber improve its performance – value added and export, and is the Ministry intending holding a symposium in future?

for in industry production, such The Ministry through the Timber Utilisation Research and Training Division monitors the operations of sawmills and treatment plants in the West, North and Central/Eastern Divisions on a quarterly basis.
A day is allocated at the end of the monitoring exercise in each division to meet and discuss issues, and how we can improve performance.

This is our commitment to improving the efficiency and effectiveness of timber processing and timber use in Fiji, contributing to the sustainable management of the country’s forest resources.
Additionally, the Ministry provides training to industries in areas such as preservative treatment and timber scaling for quality control, sawmilling for improved recovery and use of waste wood for saleable products.

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2018 15.

Can the Ministry elaborate on the progress and improvements on the issues raised under the Audited financial statements referring to the Emphasis of Matter?
1) The Trade and Manufacturing Account (TMA) operation has continuously operated at a loss as the aging sawmill equipment requires constant repair leading to a low production and escalating maintenance cost over the past 10 years.

In line with this it has been recommended to the Ministry of Economy for the closure of the TMA in Financial year 2021-2022.
It is also proposed that all the assets and inventory are to be transferred to the operating fund to cater for the division’s core functions of assisting resource owners with log sawing service, wood product manufacturing and wood product research and analysis.

Revenue generated from these services will then be deposited to the Consolidated Fund Account (CFA).
2) The excess of liability in the balance sheet is due to the deferred income of $2,198,548.This will be cleared during the closure of accounts, when the bank balance of $1,428,961 will be transferred to the CFA.

3) The Ministry Drawing account has now been separated.

16.
16.

Referring to the Basis for Qualified Opinion Audit under the as Report/Opinion in stipulated the financial Ministry’s 1) The Ministry has rectified the balances in the revolving fund account and approval has been sought from the Ministry of Economy for posting of these balances in this financial year 2021 -2022.

2) The Ministry is reconciling the variance between payroll and FMIS on a weekly and fortnightly basis and any variance noted is cleared accordingly.
A copy of the reconciliation is submitted to MOE for checking and recording purposes.

8 No.

Question Ministry of Forestry’s Response statement, please provide explanations on the steps the entity has taken the issues?

17.

During resolve to the works year reviewed were there any capital in progress?

How much was used?

Is the physical progress in accordance with the targets in the project schedule?

Did the ministry require additional funding?


3) The unreconciled variance of $105,769 has been rectified and posted.

4) This will be cleared during the closure of accounts, when the bank balance of $1,428,961 will be transferred to CFA account and the difference of $301,452 will be recognised as operating expenditure for 2018.

1) Ongoing Capital Projects were in progress and most of the projects exceeded 60% in actual expenditure at the end of the financial year 2017 – 2018.
2) For the Capital Constructions – Purchasing of Harvesting Machine Project under SEG 9 amounting to $722,000.00 was not utilised as the company awarded the tender was not able to supply both the machines and the procurement was terminated.

3) Yes Capital Purchases were done in accordance with the procurement regulation and the targets in the project schedule.

4) No additional funding was sought.


9 Ministry of Forestry Responses to the Standing Committee on Natural Resources Questions on the Ministry of Forestry’s 2018 - 2019 Annual Report No.

Question Ministry of Forestry’s Response 1.

Can the Ministry clarify the Ministry’s role on forest within the buffer zones of the catchment areas?

Under the Fiji Forest Harvesting Code of Practice (FFHCOP), the issue on Buffer zones has been covered.
The role of the Ministry is to ensure that all provisions in the FFHCOP are adhered to by logging contractors licensed to carry out forest harvesting operations.

The FFHCOP outlines the following:  It states that Buffer strips are required for the protection of designated streams and may also be applied to protect special management zones such as protection forests, catchment areas, reserves, historic and archaeological and for water, and sites telecommunications.
infrastructure electricity, sewage,  Buffer strips should be marked in the field and on the Harvesting Plan.

Buffer strips must remain undisturbed except at approved crossing points where clearing widths should be minimised.

The minimum widths of buffers are prescribed in the FFHCOP.

The widths specified are horizontal distances and must be applied to both sides of the streams.
A Forest Practices Officer may prescribe wider buffer widths in a Harvesting Plan where necessary to protect sensitive streams or catchments.

 The following protection applies to buffers- o Trees must not be felled in buffers (except in plantations where planted trees may be harvested providing that debris does not enter streams and disturbance to indigenous trees and understorey is minimised).
o Trees in forest adjacent to buffers must be directionally felled or retained where necessary to avoid damage to buffers.

o Machines must not enter any buffer or stream (except at approved crossing points).

Skid tracks should be kept at least 40 m away from streams except at approved crossing points.

o Tree crowns are not to be felled into streams.

Debris increases water turbulence resulting in erosion and increased turbidity, which adversely affects water quality and stream biodiversity.
Any debris in streams is therefore to be removed immediately, whilst ensuring that machines do not enter the buffer.

o Floating of logs along rivers/large streams can be carried out only with the written consent of a Forest Practices Officer.

No.

Question Ministry of Forestry’s Response 2.

How does the LOU Some of the benefits of having buffer zones maintained are as follows: benefit?

  the tree canopies provide shade to keep the river cool during hot summers.
trees act as a barrier to prevent wind-blown agricultural pesticide and herbicide sprays from reaching the river.

 woody material that falls in the river has multiple benefits: scour pools, trapping sediment, food and habitat for invertebrates, increased channel roughness to slow the flow.
 buffers improve water quality by creating a physical barrier of rough vegetation that slows the flow of overland runoff and increases infiltration into the soil, helping to trap and retain pollutants before they reach the watercourse.

increased infiltration of water through the diverse root systems within the buffer zone reduces the amount and rate at which heavy rain reaches the river.
  Prevents soil erosion and sedimentation of rivers and streams which can affect fish and prawn sources for LoUs  Buffers prevent flooding in villages, ensures clean water supply in streams Streamside buffers also protect water quality by stabilising the banks of the stream, which helps secure sediments and decrease turbidity.

When natural vegetation buffers around streams are removed, erosion occurs.
Stream erosion is problematic for many reasons, erosion causes sedimentation and siltation downstream, erosion degrades wildlife habitat, and eroded banks are unable to control flooding.

The Ministry workforce strength was 242 employees which included established, wage earning and project employees.

Of this 28.10% were women and 71.9% were male.


MOF Workforce 28% 72% Males Females Women in Leadership There were a total of 11 women in leadership roles which was taken from Band G (Forestry Officer) level and above.

As a percentage of all employees from Band G and above women made up 31% of the 35 employees in this group.

From Principal Officer/Manager level (Band H and above) there were 7 women out of 19 employees in this group which is 37%.

3.
3.

Gender Composition of the Ministry staff Can the Ministry provide an update on Gender the Composition of Ministry staff for the year under review, providing by percentage of women in leadership and women in forest technical fields?

No.

Question Ministry of Forestry’s Response From Director level (Band J) and above there were 4 women out of the 12 employees in this group which is 33%.
Women in Forestry Technical fields Out of the 242 employees in the Ministry there were 161 employees in forestry technical work.

Of this 15.70% were women, or 38 out of 161 employees.

The contributing factor to the reduction in contribution to GDP is from the forestry and logging industry which fell from $43.4 million in 2015 to $26.1 million in 2018.

This is due to the reduction in log production of native and mahogany tree species.
Though mahogany has begun to recover and increase its production again from 2018-2019 financial year, native log production continue to decline due to many factors such as access to native forests and the high cost of harvesting operation.

Production from native forests is expected to continue to decline or will be lower than production from plantation forests as plantation forests have lower operation costs.
Also the opportunities that come with conserving the natural forests for better ecosystem services, and for carbon sequestration and incentives through future carbon trading, will impact the production volume from native forests.

The exports figures provided are extracts from the data supplied by Fiji Bureau of Statistics.
Using the same Harmonised System (HS) classification, the imports for wood products are as follows: Products Imports of Wood Products 2015-2018 2015 2016 2017 2018 Wood & articles of wood 22.84 53.29 30.15 28.76 Value FJ$ Million Source: FBOS The major outcome of the feasibility study was to adopt the Australian Plywood Standard which is currently used by our plywood local manufacturers as a guideline.
Ministry of Commerce Industry Trade and Tourism is currently overseeing the process of adopting the Australian standards.

Copy of the feasibility study report is attached as Annex 1.

4.

Page 5 the Ministry Can an provide the explanation continuous reduction of the GDP from 1.9% to 1.4% under the Forestry Sector Contribution?

to report 5.

Page 6 only The export highlights the details.

Can please Ministry provide details on the imports as well for the under review?

year 6.
year 6.

Page 15 a) National Plywood Standard – Can the Ministry provide the Committee with a copy of the feasibility study for processing local plywood and its outcome?

No.

Question Ministry of Forestry’s Response b) Can the Ministry provide the committee with a copy of the Timber Export and Import Guideline?

c) Can the Ministry explain on how successful is the implementation of the Fiji Forest Policy 2007?

7.

Page 32 The Ministry please clarify outcome of benefit mechanisms REDD workshops.
to the the sharing of PLUS The Ministry currently uses the Timber Export Procedures and the Timber Import Guideline when undertaking inspection of timber export and import respectively.

Copy of guideline is attached as Annex 2.

The information from the guideline are also incorporated in the Ministry’s “Forestry Business Guide” which are updated and printed on an annual basis.
The Ministry continues to implement the components of the Fiji Forest Policy 2007 through the implementation of its 13 year Strategic Development Plan and Annual Operational Plans.

The review of the Forest Act 1992 and relevant regulations will also enable the full implementation of the Policy which are currently limited.

The Policy promotes the shift to a sustainable forest management regime which is what the Ministry aspires to on a daily basis with its vision and mission statements.
(Vision: Sustainable Forests, Our Future; Mission: To be a leader in sustainable forestry).

The last audit of the 2007 Forest Policy was carried out in 2019.

77% of the recommendations have been implemented/partially implemented and the Ministry continues to work towards addressing the recommendations provided as the result of the Audit.
The development a Benefit Sharing Mechanism (BSM) is a mandatory requirement of all REDD+ country participants that are engaged in REDD+ and wish to enter into carbon trade with the Carbon Fund of the Forest Carbon Partnership Facility (FCPF).

The BSM study recognizes the need for a robust and legally based mechanism to guide the fair share and equitable distribution of carbon (result-based) payments to all beneficiaries, based on Fiji’s existing tenure system and customary owned land.
The BSM is an Annex to the Emission Reduction Program Document that was accepted by the FCPF in July 2019 and allowed Fiji (Government) to enter into a carbon trade agreement with the FCPF-Carbon Fund.

The Emission Reduction Payment Agreement (ERPA) or carbon trade agreement document has made the development of a Benefit Sharing Plan as one of two conditions of effectiveness under Schedule 1 of the agreement.

In 2020, a Benefit Sharing Plan (BSP) was developed and has been cleared by the FCPF-Carbon Fund.
The BSP is now being presented to Cabinet for endorsement and adoption.

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2019 8.

Page 42-43 The Ministry has rectified and cleared the following basis of Qualified opinion: Referring to the Basis for Qualified No.

Question Ministry of Forestry’s Response 1.

The Ministry has rectified the balances in the revolving fund account, and approval was sought from the Ministry of Economy for posting of these balances within this financial year.

2.
2.

The variance in payroll has been rectified and the Ministry is submitting its variance report on a monthly basis to the Ministry of Economy with adjustments.

3.

The Ministry has implemented the Timber Revenue System (TRS) database to reconcile the General ledger with timber revenue statements and any variance is noted and investigated with the division responsible.

4.

The Accounts receivables of $677,339 for Operations is now resolved.

5.
5.

The unreconciled variance in TMA cash at bank has been resolved 6.

The excess of liability in the balance sheet is due to the deferred Income of $2,198,548.

This will be cleared during the closure of accounts, when the bank balance of $1,428,961 will be transferred to CFA account.

7.

The TMA operation has continuously operated as a loss as the aging sawmill equipment requires constant repair leading to a low production and escalating maintenance cost over the past 10 years.
In line with this it is recommended to Ministry of Economy for the closure of TMA in Financial year 2021-2022.

It is also proposed that all the assets and inventory are to be transferred to operating fund 1 to cater for the division’s core functions of providing services and assistance to resource owners for log sawing, wood product manufacturing and wood product research and analysis.

Revenue generated from these services will be deposited to the consolidated fund account.

8.
8.

The accounts receivable of $73,857 for TMA account has been resolved.

The TMA operation has continuously operated at a loss as the aging sawmill equipment requires constant repair leading to low production and escalating maintenance costs over the past 10 years.

In line with this it has been recommended to the Ministry of Economy for the closure of TMA in Financial year 2021-2022.
Opinion under the Audit Report/Opinion as stipulated in the Ministry’s financial statement, please provide explanations on the steps the entity has taken to resolve the eight (8) qualified issues raised?

9.

Can the Ministry elaborate on the progress and improvements on the issues raised under the Audited financial statements referring to the Emphasis of Matter?

10.
10.

On the Other Matter  The Ministry has improved its compliance with the requirements stipulated in as stipulated in the Auditor General’s opinion there were non-compliance with the requirements of the Finance Manual, how has the Ministry resolved and improved this issue?

the Ministry’s Finance Manual.

 The Ministry has been providing training to officers on the importance of compliance to the Finance Manual and procurement guidelines.
Awareness is conducted for FMIS users and Payroll users for accurate posting in General ledgers, proper recording of revenue in the TRS database and proper record keeping so that complete and accurate information is available for management decision making.

No.

Question Ministry of Forestry’s Response  The Ministry has also developed standard operating procedures that outline the step-by-step processes that must be taken to properly perform an activity.
  Internal control is implemented by the Ministry to ensure the integrity of financial and accounting information and reports are submitted monthly.

Internal audit of the Ministry’s divisional work units is conducted on a quarterly basis to ensure compliance with the Finance Manual and accurate and timely financial reporting.

This helps to maintain operational efficiency by identifying problems and correcting lapses.
FEASIBILITY STUDY on DEVELOPMENT OF NATIONAL PLYWOOD STANDARD in FIJI Prepared by: Maika Tabukovu, 2019 1 Executive Summary  This report was facilitated by the Nasinu Utilization Division under the Ministry of Forests to carry-out a study on the current performance of EWPAA plywood standard and the need for Fiji to develop its’ own “National Plywood Standard”;  The Engineered Wood Products Association of Australia” (EWPAA) plywood standard has been voluntary used in Fiji for the past three decades by the local plywood manufacturers resulting in Fijian plywood and other wood products (Fijian hardwoods) being well received in the international market.
Therefore, urgent action needed in regulating the standard as more imported plywood entering the country and the quality is questionable;  Increased in housing demand locally in the past three years has resulted in the sharp increase in plywood demand.

Local plywood manufacturers cannot cope with the demand, forcing retailers and individuals to import plywood.
There were only 10 importers in 2010 and by 2018, it reaches 102 importers (retailers and individuals) with China and New Zealand were the main importing countries.

The volume imported in 2010 was 139 m3 and in 2018 was 10 343 m3;  Manufacturers are now tree-oriented than product-oriented due to the depleting forest resource needed to manufacture plywood.

They are now heavily investing on value- adding machineries to maximize the use of veneer sheets.
In doing so; their plywood products are not qualified for EWPAA standard.

They are very much interested in a “National Plywood Standard” and the EWPAA staffs in Australia are willing to assist in establishing a local standard;  Fiji is losing lucrative plywood markets in Australia and New Zealand and the government and local manufacturers’ needs to work together in trying to strengthen the export of the commodity, contributing to foreign earnings.
Exported plywood value in the past 8 years was FJD8.7 million compared to import value of FJD28 million.

Fiji is losing its’ revenue and receiving poor quality plywood in return;  Plywood is an engineered wood product with stability, high impact resistance and high strength and cost effective when used in structural application.

Allowing low grade plywood into the country can jeopardize both the plywood industry and the housing industry.

 Currently, there are gaps in the local plywood industry.
The government (Ministry of Forests) should provide capacity building to staffs to be specialized in plywood manufacturing processes including testing, monitoring and recording of local species suitable for the product.

Also, plywood testing facilities to be available in the ministry to test both local and imported plywood whether they are meeting the required standard recommended by the ministry.

EWPAA staffs could assists in the establishment of the facilities and learn staffs.
2 Acronym AS/NZS 2270 Australian/New Zealand Standards 2270 AS/NZS 2271 Australian/New Zealand Standards 2271 EWPAA Engineered Wood Products Associations of Australia FFI MITT VTBL Fiji Forest Industry Limited Ministry of Industry, Trade and Tourism Valebasoga Tropikboard Limited 3 Table of Content Executive Summary ....................................................................................................................................... 2 Acronym ........................................................................................................................................................ 3 Table of Content ........................................................................................................................................... 4 1.0 2.0 Introduction ...................................................................................................................................... 6 Fiji Forest Industry ............................................................................................................................ 7 2.1 Resource Availability .................................................................................................................. 8 3.0 4.0 Stakeholder Consultation .................................................................................................................. 9 Plywood Market .............................................................................................................................. 12 4.1 Technical Feasibility .................................................................................................................. 13 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 Benefits ............................................................................................................................... 13 Resource Requirements .................................................................................................... 13 Regulatory requirements .................................................................................................. 15 Expertise ............................................................................................................................ 16 Outcomes ........................................................................................................................... 16 4.2 Market Feasibility ..................................................................................................................... 17 4.2.1 Market ................................................................................................................................ 17 4.2.2 Customers .......................................................................................................................... 19 4.2.3 Competitors ........................................................................................................................ 20 4.2.4 Outcomes ........................................................................................................................... 20 4.3 Commercial Feasibility ............................................................................................................. 21 4.3.1 4.3.2 Key Success Factors .......................................................................................................... 21 SWOT Analysis ................................................................................................................. 21 4.3.3 Pricing ................................................................................................................................. 24 4.3.4 Capital investment ............................................................................................................ 24 5.
Gaps .................................................................................................................................................... 25 Conclusion ................................................................................................................................................... 26 References ................................................................................................................................................... 28 4 List of Figures Figure 1: GDP Contribution 2009-2016 ......................................................................................................... 7 Figure 2: Total Export Earnings on Product Types (2009-2014).................................................................. 7 Figure 3: Total log production in m3 (1999-2016) ....................................................................................... 8 Figure 4: Total Percentage Log Production at Divisional Level in m3 (2007-2019) ................................... 8 Figure 5: Key Stakeholders ........................................................................................................................... 9 Figure 6: Plywood export destination in m3 (period 2010-2018) ............................................................... 17 Figure 7: Forecasted Trend of Export Plywood in m3 (period (2019-2024) ............................................... 18 Figure 8: Poor quality plywood entering the local market ......................................................................... 23 Figure 9: Forecasted trend of imported plywood ....................................................................................... 23 Figure 10: Average Import and Export Plywood Price per m3 ................................................................... 24 List of Tables Table 1: Monetary value on registered complaints ..................................................................................... 10 Table 2: Veneer/Plywood Log Production in m3 (period 2014-2018) ........................................................ 15 Table 3: Plywood Destination in m3 (period 2010-2018) ............................................................................ 17 Table 4: List of customers using plywood products ................................................................................... 19 Table 5: Average traded plywood price in m3 ............................................................................................ 24 Table 6: Capacity gaps ................................................................................................................................ 25 List of Appendices Appendix 1: Total log production in m3 (2007-2016) ................................................................................. 29 Appendix 2: Species extracted from (1999-2015) ...................................................................................... 29 Appendix 3: List of key stakeholders ......................................................................................................... 30 Appendix 4: Export Destination of Fijian Plywood in m3 (2010-2018) ..................................................... 32 Appendix 5: New Zealand markets ........................................................................................................... 33 Appendix 6: Plywood Import Destinations in m3 (period 2010-2018) ..................................................... 33 Appendix 7: List of Plywood Importers (2010-2018)................................................................................. 34 Appendix 8: Average Plywood Price in the Local Market ......................................................................... 36 5 Introduction 1.0 The Fiji Forest Policy 2007 (Goal 4.3) stated that, the Government (Ministry of Forests) will review the current export and import procedures to strengthen biosecurity control in compliance to domestic and international standards1.
The policy also stated that, the government will work with forest industries to improve coordination of planning, development, and optimization of the wood flow from the forest to the export markets, and on expansion, upgrading of harvesting and production facilities and marketing2.

The housing boom in Fiji in the past four years has forced a huge decline in plywood export from and sharp increase in imported plywood.
The Ministry of Forests is concerned with the quality of imported plywood entering the markets has resulted in an urgent need to review the plywood standard for the country.

Currently, local plywood manufacturers are processing plywood using the Australian/New Zealand Standards (AS/NZS 2270 and AS/NZS 2271) and the regulator is the EWPAA.

This standard has produced positive impact to both export and local markets with satisfactory quality plywood products.
The plywood industry has been exporting in the past three decades and contributed a lot in the economic development maximizing the utilization of native logs especially in Vanua Levu where three plywood mills are located and one in Viti Levu.

These mills are producing interior, exterior and marine plywood both to local and international markets.
In the past three years the demand for plywood has increased dramatically in the local market with imported plywood reaching Ministry of Forests is concerned with the quality of the plywood being supplied in the local market from local manufacturers and imported plywood.

Currently, there is no plywood standard being legally adopted in the country; and was hired (as a consultant) to carry out a feasibility study to develop a National Plywood Standard.
The assignment is intended to focus on key areas:3  Assess and analyse the need to develop a local standard for the manufacturing of plywood;  Evaluate stakeholder views and needs in regards to certification of plywood;  On the basis of the above findings, determine future trends, identify gaps and suggest how these could be effectively dealt with;  Develop, compile and submit a report to the Ministry of Forests.
1 Fiji Forest Policy 2007 Summary …page 22 2 Fiji Forest Policy Summary Goal 4.1 (Action)…page 22 3 Term of Reference …page 2 6 Fiji Forest Industry 2.0 The strategic goal of the forest sector is sustainable management and development of forest resources.

It will support export earnings, investment for jobs and growth.

The involvement of rural indigenous community in the sector will reduce poverty and urban migration.

The economic future of Fiji's forest sector is bright.
Fiji is blessed with a large indigenous or natural forest cover totaling approximately 956 860 hectares. )

% ( n o i t u b i r t n o C P D G Figure 1: GDP Contribution 2009-2016 10 9 8 7 6 5 4 3 2 1 0 Export earnings from forest products have been moderately pegged around one percent of GDP in the last seven years (See Figure 1).

However, this contribution can change should the focus shifts to maximize harvested logs targeting veneer and value addition products.
There is tremendous growth in the Fiji forest product industry for the past decade due to the pine and mahogany industry.

Fijian native species contributed a lot to the 2009 2010 2011 2012 2013 2014 2015 2016 (f) Agriculture Fisheries Forestry 2.1 2.3 2.3 8.2 0.8 0.9 8.8 8.7 0.8 0.7 2.3 2.1 0.7 0.7 0.7 0.7 2 2 2 9 9 9 9 9 growth due to their recognition in the international market in the form of lumber; veneer and plywood (See Figure 2).
Softwood plantations, mainly of pine (Pinus caribaea), representing 2.5 percent (46 379 hectares) of the land area, have been established on the leeward and grasslands areas and there is Figure 2: Total Export Earnings on Product Types (2009-2014) 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 great potential for further plantation expansion.
Hardwood plantations of mainly mahogany (Swietania macrophylla), representing 2.9 percent of the land area, have been established on logged over rainforests, mainly on the eastern and central parts of the larger islands.

The estimate is based on the anticipated increase in production of indigenous and pine logs as well as harvesting of mahogany 3997.32 5391.092 679466.5 1513746 Other Product s Product Types 192632 Mouldin gs Plywoo d Sawn Timber Pine Chips Veneer 20382 ) 0 0 0 ( D J F 7 plantations.
At present, wood products ranks as Fiji’s fifth most important domestic export community after sugar, fish, mineral water and garments.

3 Figure 3: Total log production in m3 (1999-2016) Earnings from forestry products are greatly influenced by the price of exports and weather patterns.

Fiji has been self-sufficient in most timber products through utilization of its natural forests and plantation resources for more than ten years.
The outlook, however, continues to be heavily reliant on the commencement of large-scale utilization of Fiji's mahogany plantation resource (See Figure 3).
Fiji has extensive coconut palm plantations and more than 30 years of experience in processing and utilizing coconut palm 800000 700000 600000 500000 400000 300000 200000 100000 0 m / e m u o V Indigenous Mahogany Fiji Pine Years wood from over- aged palms as other forestry resources.
Resource Availability Figure 4: Total Percentage Log Production at Divisional Level in m3 (2007-2019) 2.1 The national annual natural forest log production is strongly moving away from the natural forest towards pine and mahogany plantations.
The production log average from 2007-2016 stands for 48 782m3 (native forests), 318 706 m3 (Caribbean pine) and 60 762 m3 (mahogany) (See Appendix 1) There are four (excluding FFI) veneer mills operating in Fiji where three located in Vanua Levu (Northern Division) and one in Viti Levu.
Sixty Five percent (65%) of the annual native log production comes from Northern Division, (a reflection of demand of the number of veneer and plywood mills), followed by Central/Eastern division (27%) and Western Division (8%) (See Figure 4).
Ten major native species were extracted namely; Kaudamu (Myristica castaneifolia) (26%), Damanu (Calophyllum vitiense) (12%), DakuaMakadre (Agathis macrophylla) (11%), Kauvula (Endospermum macrophyllum) (10%), Central/Eastern Western Northern Source: Department of Forestry, Statistic division, 27% 65% 8% DakuaSalusalu (Retrophyllum vitiense) (5%), Kaunicina (Canariumharveyi) (5%), Vesi (Intsiabijuga) (3%), Yasiyasi ( (3%), Waciwaci/Anita (2%) and other Mixed Light Hardwoods (8%) (See Appendix 2) 8 3.0 Stakeholder Consultation The main condition of this assignment is to undertake consultation with key stakeholders in the Figure 5: Key Stakeholders l s r e d o h e k a t S Accredited… Retailers Manufacturers Statutory body Government… 0 5 Number of Stakeholders 10 Government industry, government ministries and other relevant partners4 (See Figure 5), and the list of participants (See Appendix 3).
These key stakeholders play vital role in the success of the plywood industry in Fiji serving both local and international markets.

FFI has closed, which started manufacturing plywood in the early 70s, paving the way for new players to contribute in the industry today.
Ministry of Forests: Timber Utilization Division in Nasinu under the Ministry of Forests staffs is undertaking the following:  Monitoring and inspecting the plywood standard both export and import following the EWPAA standard5, which is voluntary and NOT regulated in Fiji for the past three decades;  Ministry forestry staffs are facing difficulties in justifying their decisions with regards to the quality of imported plywood due to no proper standard being enforced;  Liaising closely with EWPAA staffs in Australian regarding the plywood activities and developments with regards to the standards;  The Division inspects imported plywood whether meeting the Fiji Building Code and  attend plywood complaints when needed; The Division will need facilities locally to test and monitor the quality of plywood —if there is a need to “develop a national plywood standard”;  Further training needed for local staffs in testing and monitoring plywood in developing local plywood standard.
Ministry of Industry, Trade and Tourism: The Ministry of Industrial Trade’s interest regarding the Adaption of Standard for Marine Plywood in Fiji6 .

Fiji needs to gazette the “Australian Standard/EWPAA) which is voluntary used in the past three decades.

According to Ajeshni7, the process is, a request letter from Permanent Secretary Forestry to the Permanent Secretary of Ministry of Industry, Trade and Tourism for the adoption of EWPAA standard in 4 Terms of Reference,… page 2.
5 The Timber Utilization Division, Department of Forestry and Sawmillers’ Association (1989).

A Guide to the Specification of Local Timbers for Building Applications…page 24 6 Memorandum dated… 7 MITT Standard Officer, 2019 9 Figure 1: Key Stakeholders Fiji.

The Ministry of Forests will be the REGULATOR as required of the “standard” to be implemented.
Statutory Body Consumer Council: According to Seema8, most of the complaints from customers; is whether the plywood is meeting the local plywood standard and if there is a standard?.

If there is no standard, then Fiji needs to establish a plywood standard.
The natures of the complaints are listed Box 1: Natures of complaints  Ply board has become wary;  Fungus visible on ply board purchased from respondent even after it was painted;  Bubble formation noted on board when it was delivered;  Complaint of defective ply board supplied by respondent;  Mold developing on ply board, the Ministry has inspected and refund has been agreed but not issued yet;  Complaint that respondent supplied exterior ply instead of interior ply  Complaint that white ants appearing on the ply board every morning  Poor quality ply board supplied to complainant, different from what was shown to him at the shop;  Ply board has become infested with worms;  Complaint that marine ply wood was not supplied as requested;  Complaint that ply wood supplied started to rot after 6 months.
in (Box 1).

The Council suggested that to reduce complaints on plywood then; the plywood industry should have standard at all levels; manufacturers, transport, retailers and final consumers.

There is a need of thorough inspection of imported plywood into the country to reduce complaints and compensation (See Table 1).

Table 1: Monetary value on registered complaints Year 2015 2016 2017 2018 2019 TOTAL No.
of registered complaints ADR (all modes) 0 1 4 6 1 12 ADR (NCH) n/a 0 2 3 2 7 Source: Consumer Council data, 2019.
TOTAL 0 1 6 9 3 19 Monetary Value $ - $ 800.00 $ 8,621.79 $ 8,953.45 $ 932.50 $ 19,307.74 Accredited Institution EWPAA/Australian and New Zealand Standard EWPAA CEO: Dave Gover of EWPAA Standard Australian Office stated that;  Fiji needs to urgently adopt the Australian standard and already there was an agreement between Australian government and Fiji government to adopt the standard; 8 CEO Consumer council, 2019 10  The way the products are used in Fiji is different in Australia and New Zealand.
For example, interior plywood is used in the furniture markets in Fiji.

In Australia, the product is used as interior wall which is then coated with decorative wall papers therefore; the beautiful natural colour of the plywood is not seen;  The Australian plywood standard does not fit well in the Fijian market.
For example, the structural plywood grade has a different application in Australian and no structural grade in Fiji;  Fiji needs to put together a “Local Plywood Standard” based on common uses of plywood in the country which also suit Fijian manufacturers and forest resources.
 EWPPA can support the Manufacturers, Government (Ministry of Forests) and Consumer Council in determining whether plywood conforms to a standard that works for Fiji;  Visual grading rule is unreasonably restricted and needed some flexibility.

Fiji should adopt a local grade like: - Painted grade (low durability glue line) - Clear grade - Utility grade (low grades) - Marine grade (Fiji could come up with a name).
 Fiji needs to setup facilities for plywood testing and monitoring the quality of plywood used in the local market.

EWPAA staffs could assists in setting up the facilities and train local staffs.

 Plywood Manufacturers There are three plywood mills operating in Vanua Levu, which include VTBL, Long Investment, Taiwan Timber and one in Viti Levu (Plywood Fiji).
They suggest the following:  They will still use the EWPAA standard but, the fall-down veneer grades to be utilized using a “Local Plywood Standard Grade”.
This will maximized the use of raw materials as most logs entering the mills are from 2nd and 3rd rotation forests having small diameters;  Training on plywood standard processes to be strengthen by the Ministry of Forests;  VTBL commented that, it is very expensive to be a member of EWPAA with a total fee of FJD15 000 annually and no longer using the standard.
They are using their own standard and supplying the local market;  High plywood demand in the local market and they are concerned regarding illegal and cheaper plywood entering the country;  They support the idea of forming the “Fiji Plywood Association”, to bring together all the partners in the plywood industry and discuss issues and the future of the industry.
Retailers The retailers in all the three Divisions (Norther, Western and Central) almost having similar issues regarding plywood sales in the country which include the following: 11  They are all importing plywood because the local plywood demand is very high and local manufacturers unable to supply;  Training/awareness needed for final consumers where to use different plywood grades.
For example, some customers are using interior plywood grade in areas where exterior plywood to be used; and after a year or two, the plywood is damaged;  Recently, increased number of complaints are coming from customers, and they believe that one of the reasons is the processing time for plywood being manufactured is not followed;  Support for a “National Plywood Standard” but proper consultation and processes needed to be carried out in adopting a local standard.
Volume/m3 2010 2011 2012 2013 2014 2015 2016 2017 2018 Figure 5: Plywood Export Quantity in m3 (period 2010-2018) 1000 900 800 700 600 500 400 300 200 100 0 4.0 Plywood Market The Plywood market in Fiji is witnessing a substantial growth in the past 10 years.

This is due to growing demand from housing market and retail sector forcing the export volume to fall dramatically resulting to reduced foreign earnings (see figure 5).
Already, the local manufacturers are unable to meet the local demand and retailers have to import plywood products from abroad (See figure 6).

The current boom in the housing market will drive the demand of plywood and increasing benefits of plywood over traditional materials such as metal and plastic are expected to fuel the growth of plywood market in upcoming years.
The closure of Fiji Forest Industry9 complex in Vanua Levu will force the price of plywood to increase due to high demand and shortage of supply.

This will no doubt hampered the market growth of plywood as consumers’ looks for substituted product like masonite, chipboard, particleboard, etc..

Application of plywood includes building & construction industry, housing market, marine industry, interior design industry, and furniture industry.
These wide range applications of plywood and its byproducts are expected to amplify growth of plywood industry in upcoming years.
This should provide some insights and challenges to both the government and private sector in reviewing the manufacturing of plywood Figure 6: Plywood import in m3 (period 2010-2018) Plywood Import in m3 (period 2010-2018) 2010 2011 2012 2013 2014 2015 2016 2017 2018 3 m / e m u o V Years 12000 10000 Year 2000 4000 6000 8000 0 l 9 Fiji Forest Industry Limited was a major producer of plywood in the country and the Pacific Region.

12 in the country in trying to fulfill both local and international demand.
The current manufacturing standard in Fiji is following the Australian and New Zealand Standard (EWPAA).

The standard allows Fiji to export plywood internationally, and the product is well received by international consumers.
4.1 Technical Feasibility 4.1.1 Benefits Plywood is an engineered sheet timber product that is widely used for construction purpose in Fiji due to its’ properties like:10  Increased Stability: plywood offers all the advantages of the parent wood plus has additional strength and stability because of its laminated structure;  High Impact Resistance: has high tensile strength, derived from the cross lamination of panels.

This distributes force over a larger area and reduces tensile stress.
Therefore able to withstand overloading by up to twice its designated load;  High Strength: combines the structural strength of the timber from which it is manufactured.

This is in addition to the plywood properties obtained from its laminated design.

Cross-graining allows the plywood sheets to resist splitting and provides uniform plywood strength for increased stability.
It is cost effective when used in structural applications such as flooring, formwork, shear walls, etc.. 4.1.2 Resource Requirements Currently, the forest resources in Vanua Levu is depleting mainly due to the two plywood mills operating in the past few decades resulting, to small diameter logs entering the mill.

Years have passed and so has the giant trees, and the forest resource is changing.
There are certain inherent advantages in utilizing small logs which include; uniform in form and have other homogenous physical characteristics and readily available.

The disadvantage is the mill becomes increasingly volume sensitive as the diameter shrinks.

Therefore, effective utilization and accurate measurement of the log—and a carefully negotiated price based on these two considerations—are essential for survival.
Logs entering the mill will be manufactured into variety of products, and products chosen are those that yield most profitable return.

Plywood manufacturers must no longer think as a singular-product converter but will manufacture any product that will provide the highest net return from the log.

The manufacturers are becoming tree-oriented rather than product-oriented.

This is evidently, witnessed in Valebasoga plywood mill operations.
The company is investing in veneer mill machineries to increase recovery like a modern lathe that produce very small diameter core material.

Fall-down veneer materials in photo 1, are stitched together using machines in photo 2, and photo 3 shows the stitched veneer sheets ready to be used.

Photo 4 shows laminated blockboard using wood residues in the mill.
10 EWPAA-Facts about Plywood & LVL 13 Photo 4 Photo 1 Photo 3 Source: photo taken during the consultation Photo 2 This proven, that materials that are not qualified for EWPAA standard manufactured at local level will need to adopt a local “National Plywood Standard”.

Table 2, shows the quantity (volume in m3) of different species consumed in the veneer/plywood mills in the past five years (2014-2018), pine (25%), Kaudamu (17%), Mixed Light Hardwoods (9%), others (2% or less) and native species (32 %) .
It is important that the ministry identifies all the individual native species that makes up 32% of native species as shown from 2014-2015.

This will assists in the Ministry’s decision-making on the types of native species to be recommended for afforestation and reforestation.

Also, mahogany should be playing a vital role in the production of both veneer and plywood materials as mahogany plantations now ready for harvesting especially in Vanua Levu.
14 Table 2: Veneer/Plywood Log Production in m3 (period 2014-2018) Species Anita Bauvudi Dakua Makadre Damanu Kaudamu Kaunicina Kauvula Mahogany Makosoi Malawaci Mixed Light Hardwoods Pine Tarawau Tivi Uko Vaivai ni Veikau Vusavusa Waciwaci Yaka Raintree Native Total Total 1397 803 1038 10914 1255 605 208 84 10541 5603 58 18 41 475 1781 34 5502 710 3823 2530 3357 % Source: Ministry of Forests/Utilization Division, 2018 4.1.3 Regulatory requirements Tariffs and Licenses There are licenses requirements for imported plywood into the country but no standard adopted for imported plywood to meet.
 Import tariff for plywood is around 32 percent depends on the sizes and whether the product is manufactured in Fiji.

(see: https://www.frcs.org.fj/wp- content/uploads/2012/11/HS-2012-Tariff.pdf, chapter 44) Ministry of Forests Requirements All imported/exported plywood is inspected by the Ministry of Forests officials to ensure it is free of insects and terminates with the assistance of Biosecurity Fiji Officers.
Fiji Building Code 15 The plywood industry should work in line with the Fiji Building Code in identifying where the material is used meeting the required standards of the code.

4.1.4 Expertise  Local plywood experts needed as Fiji relay heavily on EWPAA personal for sample testing and monitoring of plywood quality.

The Ministry of Forests will also need facilities to test the quality of plywood entering our shores whether meeting a recommended standard like EWPAA standard.
 Currently, less qualified personal to enforce the plywood standards and an urgent need for local forestry staffs to undertake further training in the plywood field overseas to assist the industry in a long term.

Also, the industry is growing rapidly and more emphasis on the quality of plywood used in the building industry.

4.1.5 Outcomes  An urgent need to gazette the EWPAA standard so that it is legally adopted by Fiji.
This allows the Ministry of Forests to have legal power in enforcing the plywood standard to any plywood trader exporting and importing plywood.

Any plywood trader not meeting the standard should not be allowed to trade plywood to and from Fiji.

There is already an agreement between the Australian Government and Fiji Government to use the EWPAA standard.
The Ministry of Industry, Trade and Tourism is willing to facilitate the formulation of the standard with the Ministry of Forests to be the REGULATOR;  Formulation of a local “National Plywood Standard” as the forest resource in Fiji is changing.

This will depend entirely between the Ministry of Forests, Plywood Industry in Fiji (Manufacturers) and the Fiji Building Code authorities by: 1.

Studying at how products are used and what performance is needed from them.
For example, external cladding need to have adequate glue bond durability, durability of the wood, structural performance, and visual quality; 2.

In writing the standard; should include how performance is able to be assessed (allowable glue types, bond test, preservative treatment.

etc.

); 3.

Include reference from the Fijian Building Standard to the Local Plywood Standard; 4.

Setup a process for independent verification of performance (EWPAA could be part of this activity); 5.
Promote to the building products supply chain and community generally.
 Capacity Building - Human Resource capacity: a need to training local Forestry Staffs on plywood - standard processes; Institutional capacity: plywood testing facilities should be available in Nasinu Utilization Division as more and more plywood now imported into the country - Technical capacity: software to be available in monitoring the plywood standard during adoption - Financial capacity: the plywood industry and the government should financially support the adoption of both the EWPAA and Local Plywood Standard; 16  Formation of the Fiji Plywood Association as an avenue where all plywood stakeholders meet and discuss issues in relation to plywood in the country.
4.2 Market Feasibility 4.2.1 Market Export markets.

Australian (52%) and New Zealand (27%) markets are the main importer of Fiji plywood in the past 10 years (See Figure 6).

Other countries include Kiribati (19%), Cook Islands (1%) and Others (Dominican Republic and Christmas Island) (1%).
Since, Australia and New Zealand our major business partners; the export volume of plywood has dramatically reduced in the past 8 years from 581 m3 (2010) to 13 m3 (2018) and reduction in value from FJD1.7 million to FJD38 thousand respectively (see table 3).

Total export for the past 8 years amounted to FJD8.7 million compared to FJD28 million worth of imported plywood products.
Figure 6: Plywood export destination in m3 (period 2010-2018) New Zealand Australia 19% 1%1% Kiribati 52% Cook Islands 27% Others Australian market11 is the best market for Fiji plywood with a population of around 25 million (2017) and GDP per capita is USD 53,799.94 (2017) with a population growth of 1.23 percent.

Fiji plywood could serve only the five major cities; Sydney, Melbourne, Brisbane, Perth and Adelaide.
Main plywood grade exported to Australia are exterior plywood (51%), marine plywood (27%) and interior plywood (22%).

Major plywood exporters to Australia (period 2010-2018) were Valebasoga Tropikboard Limited (70%), Fiji Forest Industries (20%), Long Investment (9%) and Stud is (2%) (See Appendix 4).

Today, Valebasoga is no longer exporting plywood to Australia and Fiji Forest Industries had been closed from operating.

This leaves the small plywood manufacturers to meet the demand from overseas markets.
Table 3: Plywood Destination in m3 (period 2010-2018) Countries 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Australia 581.157 494.038 265.163 275.784 163.561 150.287 151.192 86.747 12.521 2180.45 New Zealand 164.337 221.319 185.599 120 134.01 191.835 81.187 58.702 0 1156.523 Kiribati 82.024 195.817 213.696 59.156 41.720 81.463 68.924 43.035 5.184 791.019 Cook Islands Others Total Volume/m3 24.647 28.088 16.516 0.357 3.14 1.728 42.891 31.585 880.253 927.69 664.815 457.614 341.019 423.585 301.303 188.484 17.705 4202.468 11 https://www.google.com/search?rlz=1C1GCEU_enFJ851FJ851&ei=mFkQXYOiPM- 2rQGpi78o&q=australian+economy 17 Total Value (FJD) 1,619,581 2,038,576 1,446,212 779,546 805,447 917,687 659,145 372,300 37,760 8,676,253 New Zealand market12, is familiar with the Fijian hardwoods, GDP per capita is USD42, 940.58 with population growth of 2.1 percent.
Fijian plywood exporters could concentrate on the six main cities of Auckland, Wellington, Christchurch, Dunedin, Hamilton and Tauranga.

The plywood export volume was 164 m3 (2010) and reduced to nil in 2018.

There is a need to increase the volume to these lucrative plywood markets.
Exporters to the New Zealand markets include: Valebasoga (64%), Fiji Forest Industries (29%) and Long Investment (7%) and the plywood grades are interior plywood (66%), marine plywood 22% and exterior plywood 12% (See Appendix 5).

800 600 1000 Figure 7: Forecasted Trend of Export Plywood in m3 (period (2019-2024) Other markets, include the Pacific Islands member countries of Kiribati (791 m3), Cook Islands (43 m3) Dominican Republic (28 m3) and Christmas Island (3.5 m3).
Fijis’ geographical location serves as an advantage in serving the region with plywood and other products.

Exporters to these small island nations mainly the main retailers in the country which include; Vinod Patel and Company, R.C.
Manubai, Kasabia, Carpenters Hardware Limited, etc.. y = -107.14x + 216252 R² = 0.9223 0 2005 m / e m u o V 2010 2020 2015 2025 Year -600 -200 -400 400 200 l 3 The forecasted trend of export plywood indicated that there will be no more plywood export at the end of 2019 (See Figure 7).

R2 is 92% which shows, there is a relationship between the coming years and the volume of plywood exported.

This gives a challenge to government and manufacturers to work together and change the current trend.
Promoting more export plywood for foreign earnings contribution to the nation.

Local Market Plywood is an extremely versatile product and used for a wide range of structural, interior and exterior applications in Fiji.

The booming housing market has resulted in increased plywood demand locally.

Local plywood manufactures are unable to meet the local demand forcing 12 https://www.google.com/search?q=new+zealand+demographics+2019&oq=new+zealand+demographic &aqs=chrome.
18 retailers and individuals to buy from overseas suppliers.

The advantages of plywood in the local market are:  High uniform strengthen of the board due to cross grains of wood laminated together;  Free from shrinking, swelling and warping compared to solid woods;  Non-split qualities as solid wood splits fairly readily along the grain;  Economical and effective utilization of wood where 1 m3 of wood can produce 50-100 sheets of veneer;  Maximum utilization of wood.
4.2.2 Customers Table 4, are list of customers commonly use plywood in the country.

Table 4: List of customers using plywood products Customers Furniture makers 1 2 : Exterior Description13 Comments Interior Plywood  Manufactured to AS 2270- 1979 and intended for use in non-structural interior application where a high quality aesthetic finish is required.

 The plywood could be used in internal wall paneling furniture and fitments, interior door skins and ceiling linings.
 Interior plywood must not be used in exposed, wet or damp conditions.

 Bond is type C and not durable under full exposure to weather or wet or damp environment  bond is fully protected interior non-structural environments Exterior Plywood  Manufactured to AS  Bond is Type A (phenol 2271—1979 and intended for use in non-structural, exterior application where a high quality aesthetic finish is required.
  The plywood can be used in exterior door skins, hoarding, signs and non- structural claddings formaldehyde) and specified for applications involving long-term full exposure.

all permanently exposed type A bonded exterior plywood should be treated against fungi attack and the surface should be finished with paint or water repellents to minimize mechanical surface checking.
Boat Makers Marine Plywood  Permanent Type A Phenolic bond and is manufactured 13 A Guide to the Specification of Local Timbers for Building Applications, page 25 and 26 19 3  Manufactured to AS/NZS 2272 Plywood-Marine  Plywood can be used in hull of boats and other marine application and also in aircraft construction .
from selected species based on density, bending strength, impact resistance and surface finishing characteristics (Boat makers are promoting marine plywood compared to fiber aluminum boats for environmental reasons) Canoe-boat makers like Uto ni Yalo Trust are facing difficulties in getting marine plywood to meet their demand.

They are planning to build more canoes for the outer islands.
4.2.3 Competitors Currently, the local plywood manufacturers in Fiji are competing with imported plywood from other companies like China (50%) and New Zealand (41%).

The number of importing countries increase from 4 (four) in 2010 to 9 (nine) in 2018 (See appendix 6).
The strength of these competitors are:  The availability of plywood in their respective countries;  Easy access of imported plywood to Fiji due to unregulated policy currently in-place;  They are offering a very competitive price in the local market compared to local  plywood manufacturer price; Importing countries like Papua New Guinea and New Zealand are member of EWPAA Standard therefore, they are importing high quality plywood;  Substituted products: Customers are also buying substituted products masonite, particle board and chipboard to replace plywood.
Since, there is no regulation for plywood standard in Fiji—more people are now taking advantage of the housing boom by importing plywood from overseas and selling them locally.

The number of importers in 2010 was 10 (ten) which increases to 102 (one hundred and two) in 2018 (See Appendix 7).

There is a need to control the importers of plywood there Fiji could be used as a dumping place for low grade plywood as currently faced by some retailers.
4.2.4 Outcomes  Plywood market offers a huge business opportunity for Fijian plywood manufacturers both locally and internationally with a healthy margin if properly managed and coordinated especially having a regulated plywood standard; 20  It is certain that plywood manufacturing maximizes log recovery compared to sawn timber and all stakeholders should work together in supporting the industry to increase productivity creating employment opportunity;  Plywood export has dropped dramatically in the past ten years where Fiji is losing a huge financial opportunity.
Plywood manufacturers should be engaged in to export plywood contributing to foreign earning;  Urgently needed to adopt a local plywood standard to safeguard the customers from buying imported low grade plywood.

Fiji lost FJD 28 million in the past nine years for imported plywood.
4.3 Commercial Feasibility 4.3.1 Key Success Factors  The plywood industry in Fiji has been operating for the past 30 years promoting decorative Fijian hardwoods in the international markets like; Australia, New Zealand, United States of America and the South Pacific region;  The industry is contributing economical to foreign earnings with healthy economic returns to manufacturers and retailers;  This assignment indicated the support from government, private sectors and international accredited institutions like EWPAA in strengthening its’ contribution nationally provide quality products to consumers.
4.3.2 SWOT Analysis Strength: 1) Location.

Fiji is located in the center of the Pacific Region (especially the Western Pacific Islands) and can supply plywood to all these countries as she used to do in the past; 2) Labour Force.

The availability of labour force in the plywood industry in Fiji with years of experience will boast the production meeting both international and local demand.
3) EWPAA Standard  EWPAA Standard is voluntarily used in Fiji and Fiji plywood products are well received in Australia and New Zealand markets also promoting other forest products like native Fijian Hardwoods;  Availability of professional advice from qualified EWPAA technical staffs;  Deemed to satisfy product certification requirements of the Building Code of Fiji and Australia.

4) Forest Resources  Availability of matured pine and mahogany resources in the market provides raw materials for plywood.
They are fast growing species and can be used as core 21 materials and native species to be used in face and backs in plywood manufacturing.

This will reduce lots of pressure on our native species and pressure from environment will surely one day ban the harvesting of native forests.

Weaknesses 1) EWPAA Standard Adoption  Not adopting the EWPAA standard has resulted in poor quality plywood entering our shores which can affects the building industry.
Currently, more complaints from consumers about the quality of plywood they are using due to imported plywood products.
2) Capacity building  Human Resource capacity - Not enough local staffs having plywood knowledge to test and monitor the quality of plywood produced locally and those imported; Institutional capacity  - The Ministry of Forests don’t have facilities to test plywood locally and had to send all the plywood samples to Australia;  Financial capacity - Needs financial support from government and private institutions to build testing facilities for plywood locally; Opportunities 1) EWPAA standard promote plywood products international which can be an advantage to other timber products; 2) Forest Certification - Sourcing plywood from certified forests will increase the value of the plywood sold overseas; - Positive image on all forest products sold internationally; - More international buyers be attracted not only to plywood but other Fiji products as well.
3) Local staffs could have further training in plywood technology overseas whom will serve the industry well; 4) Importation of veneer materials from neighboring countries could reduce pressure on native species; Threats 1) Imported plywood - Currently, the major threat is the quality of imported plywood entering the country without proper control on the quality (see figure 8).
22 Figure 8: Poor quality plywood entering the local market Split and dust in the plywood Warping found in some of the plywood boards The forecasted trend of imported plywood indicated that more plywood will be entering our Figure 9: Forecasted trend of imported plywood y = 704.54x - 1E+06 R² = 0.4237 12000 10000 8000 6000 4000 2000 3 m / e m u o V l 0 2008 2010 2012 2014 2018 2020 2022 2024 2016 Year shores in the next five years (See Figure 9).
The R2 is 42%, which indicates that there is no relationship between the coming years and volume of imported plywood.

There could a sharp increase in the import of plywood in a year and verse versa.

- Image of the housing industry could be badly affected if poor quality plywood used in the construction industry.
Consumers could loss all the lifesavings if their homes are attacked by terminates (for example, the Natabua Housing Scheme in Lautoka where terminates attacked the timber and plywood used to build the houses and still unoccupied till today); - Some retailers are facing complaints from consumers regarding terminate attack on imported plywood and now they are buying from local manufacturers.
2) Compensation Customers will demand huge compression if plywood product does not perform well when installed in their homes due to terminate attacks or splits.

Plywood retailers will 23 purchase substituted products (like masonite) and the sale of plywood will be badly affected.

4.3.3 Pricing The price of plywood in Fiji is determined by the market.
Figure 10, shows the average price of l 3 m / e m u o V Figure 10: Average Import and Export Plywood Price per m3 3500.00 3000.00 2500.00 2000.00 1500.00 1000.00 500.00 0.00 export and imported plywood.

The average export price is around FJD2 260 per m3 compared to the average local price of FJD 2 031 per m3 (see appendix 8).

Local manufacturers are willing to sell to the local market at a larger margin with the exclusion of all export relates costs and also costs in trying to meet the EWPAA standard.
The imported plywood price is averaging at FJD 944 m3, which is competitive to local price.

Most retailers are currently importing plywood and adding a markup price of 15%, which is still lower than the local price (See Table 5).

Retailers were not willing to give re-export price of plywood during the interview at their hardwares.
Average import price Average export price 2015 2016 2013 2018 2012 2011 2014 2017 2010 Year Table 5: Average traded plywood price in m3 2010 2011 2012 2013 2014 2015 2016 2017 2018 Average Average price of Imported plywood (FJD/m3) Average price of Exported plywood (FJD/m3) Average Local Price (FJD/m3)14 745.12 653.43 865.53 1022.78 961.33 1090.84 966.14 1726.58 840.99 1433.59 1349.99 1317.02 1332.58 1504.46 993.55 1076.93 955.01 697.61 944 2260 2031 4.3.4 Capital investment The success in adopting the EWPAA standard and also the National Plywood Standard rely main to the availability of funds.
The first funding initiative is to legally adopt the EWPAA standard, and the second part is to establish a National Plywood Standard which will need overseas experts to put together the processes.

There may be some interested companies or donors apart from government to fund the project.

14 Price given by a Retail Sales Representative during the interview for this assignment on 4th July, 2019 24 5.
Gaps There are gaps in the exciting plywood operations that needed to be addressed especially in capacity (See Table 6).
Table 6: Capacity gaps Components Capacity Required Human Resource Capacity Knowledge in testing plywood samples for quality Knowledge of species required in plywood manufacturing Knowledge in Plywood standard processes Testing plywood facilities No facilities Institutional capacity Adoption of EWPAA Standard Enough knowledge Not enough knowledge Consumer awareness on how and where different plywood grades be used Technical knowledge in plywood Capacity Exciting Little knowledge Little knowledge Capacity Gap/Capacity Development Needed  Need overseas training where plywood testing facilities are available  Training conducted by EWPAA staffs at Nasinu Utilization Division  Need overseas training in identifying Fijian hardwood species suitable for plywood manufacturing  Need to fully utilized Fijian hardwood species and increased recovery  Need local training on species identification Little knowledge  Need overseas training  Training conducted by EWPAA staffs  Ministry of Forests to build testing plywood facilities for testing the quality of local and imported plywood  Needs support from EWPAA regarding the required equipments  Need the Ministry of MITT to carry out the adoption process  Need the Ministry of Forests to support the standard as the REGULATOR  Needs the Ministry of Forests to provide workshops/training and information (through brochures) to final consumers  Needs retailers to have to provide similar brochures to final consumers  Need overseas training  Training conducted by EWPAA staffs Little knowledge 25 Technical capacity manufacturing with bonding and species used Technical resources (Hard/Software  Need to identify software suitable to store data Little knowledge on plywood operations  Need training for softwood Financial capacity Financial resources Not enough  Need financial support from government, private sector and international donors Conclusion To conclude:  There is an urgent need to adopt the EWPAA standard in Fiji to safeguard the plywood industry as more and more imported plywood entering our shores and the quality is questionable;  The EWPAA standard is suitable to Australia and New Zealand markets therefore; a need to establish a National Plywood Standard as logs entering the plywood mills is getting smaller and smaller in diameter;  Ministry of Forests staffs currently facing a challenge in trying to inspect and verify all the imported plywood entering the country without proper legal guidelines to justify the quality of plywood; Forest Resource  There are 20 species used in processing veneer and plywood with; Pine (25%), Kaudamu (17%), mixed light hardwoods (9%), others (2% and less) and native species (32%).
It is important to identify individual species that make up the 32% of native species.

This will assists the Ministry of Forests to prioritized species to be raised in the nursery for afforestation and reforestation projects;  Mahogany and Pine plantations are now matured and they should be the main species in the production of plywood to reduce pressure on the native species.
These two species could be used as cores and backs while native species be used as face due to their beautiful decorative colors; Technical Feasibility  Plywood is an engineered sheet timber product that is widely used for construction purpose in Fiji with increased stability, high impact resistance and high strength suitable to interior, exterior and marine environment; 26  Capacity building is important to successfully implement the ‘National Plywood Standard” in the country from human resource, institutional, technical and financial capacity.
The Ministry of Forests is currently facing difficulties in testing the quality of plywood entering our shores due to no plywood testing machines.

 Plywood manufacturers are now tree-oriented rather than product oriented Therefore, effective utilization and accurate measurement of the log—and a carefully negotiated price based on these two considerations—are essential for survival.
Manufacturers are now investing on new machineries to utilized veneer residues and increase recovery; Market Feasibility  Plywood demand locally has dramatically increased in recent years and still increasing due to high housing demand.

This has forced the decrease in the plywood export from 880 m3 (2010) to 18m3 (2018).

It is forecasted, that the demand will be negative in the next five years.
It is important that the Ministry of Forests to work closely with the plywood manufacturers encouraging plywood export for foreign earnings contribution to the nation;  The value of export plywood in the past nine(9) years was FJD8.7 million and imported plywood valued at FJD 28 million respectively.
This clearly indicate that more effort is needed in trying to produce more plywood locally and also strict guideline regarding imported plywood;  Local plywood manufacturers should continue to supply the lucrative plywood markets in Australia and New Zealand to reduce their business risk and no one predicts when will the local housing boom ends; Commercial Feasibility  Fiji’s geographical location has been providing an excellent plywood business opportunity in the past years supplying to neighboring Pacific Islands and contributing to employment for local citizen;  The poor quality of some of the imported plywood could affect the plywood industry and the consumers will prefer substituted products like masonite, and chipboard.
Also, the price of imported plywood is very competitive in the local market;  Currently, the average price of export plywood is FJD2 260 per m3 and the average local price is FJD2031 per m3 in the past 9 years.

The imported plywood price is FJD944 per m3.

 Plywood industry needs financial support from government (Ministry of Forests), private sector and international donors for capacity building; driving the industry to a positive economic contribution.
27 References  https://www.frcs.org.fj/wp-content/uploads/2012/11/HS-2012-Tariff.pdf, chapter 44).

 The Timber Utilization Division, Department of Forestry.

(1989).

A guide to the Specification of Local Timbers for Building Applications.

 Ministry of Fisheries and Forests for the Republic of the Fiji Islands.

(2007).

Fiji Forest Policy Statement.
28 Appendix 1: Total log production in m3 (2007-2016) Year Indigenous Fiji Pine Mahogany Average Average (past 10 years (2007-2016) (Source: Ministry of Forests/Statistic Unit) 48,782 72,963 350,408 318,706 60,762 Appendix 2: Species extracted from (1999-2015) Species Code 101 102 103 104 105 106 107 108 201 202 203 204 205 206 207 208 209 Species Name Species ID Amunu DakuaMakadre DakuaSalusalu Kuasi Yaka Buabua Rosawa Vesi Damanu Dabi Dilo Nawanawa Raintree Bauvudi Kaudamu Kauvula Mavota AMN DKM DKS KUA YAK BUA ROS VES DMN DAB DIL NAW RAN BVD KDM KVL MVT Scientific Name Dacrycarpusimbricatus Agathis macrophylla Retrophyllumvitinesis Podocarpus neriifolius Dacrydiumnidulum Fagraeagracilipes Gmeliavitinesis Intsia bijuga Calophyllumvitinense Xylocarpus Calophylluminophyllum Cordiasubcordata Samaneasaman Palaquiumvitilevuense Myristicacastaneifolia Endospermummacrophyllum Gonystyluspunctatus Species Class Total vol.
(m3) % KCN Kaunicina KCT Kauceuti SAG Sagali DOG Dogo LBU Laubu RRS Rosarosa SAC Sacau SSR Sausauira TIV Tivi VNV Vaivai-ni-veikau YSS Yasiyasi QUM Qumu DOI Doi VUG Vuga KOK Koka MAK Mako MRT Masiratu MOI Moivi SSA Sa SRO Sarosaro VEL Velau VUT Vutu WAC Waciwaci/Anita OTH Others YAM Yasimoli LAT Lato/Kaukauloa KAS Kasiga/Lilidi TOT Totowiwi Vesida VSD Uko/Damanuniyagaga UKO Canarium harveyi Turrillia vitiensis Lumnitzeralittorea Bruguieragymnorrhiza Garcinia myrtifolia Heritiera ornithocephala Palaquium hornei Dysoxylumrichii Terminalia capitanea Amaroriasoulameoides Syzygium decussatum Acacia richii Alphitoniazizyphoides Metrosideroscollina Bischofiajavanica Trichospermumspp Degeneria vitiensis Kingiodendronplatycarpum Parinariinsularum Pouteria vitiensis Gymnostomavitiensis Barringtoniaedulis Sterculiavitiensis mixed light hardwoods Syzygium decussatum Diospyros gillespiei Litseamellifera Pleiogyniumspp Ellattostachysfalcata Buchanania vitiense Appendix 3: List of key stakeholders 1 Ministry of Forests; 9 am (Tuesday 5th of June) at Nasinu Utilization Division Participants Mr Tevita Bulai Tevita Kunadei Job Title Director Forest Officer Research Taniela Whippy Timber Inspector Trade Ropate Green Phone contact 9966816 9714170 9308356 9294489 Email address 2 Ministry of Industry and Trade: 2 pm (Tuesday 4th of June at the Ministry’s HQ/Suva) Ajeshni Lata Asenaca Kevu Standard Officer Senior Technical Assistants Ropate Green FO Timber Inspector 9294489 3 Consumer Counsel 10 am (5th Wednesday of June) at Consumer council office-Vanua House) Seema N. Shadil
 Jessica Lal Chief Executive Officer 3305864 3300792 ceo@consumersfiji.org mudr@consumersfiji.org Lusia Rabala Tevita Vuibau Senior Research Officer Information Manager 3300792 3300792 SRO@consumersfiji.org CIM@consumersfiji.org 4 CEO AWPPA 6th June Telephone Interview Dave 5 Plywood Manufacturers and Traders: 9 am (Friday 7th June at Labasa Forestry Office 1 2 2 3 Singh Nilend Salend Krishna Imraan Sheir Chand Prasad Pranil Chandra Ravind Ali Mukhtar Singh Chanan Chand Dinesh Nath Anned Long Investment Waimo Holding A Hussain & Co R,C, Manubai VTBL VTBL VTBL Vinod Patel Vinod Patel 9335825 8916924 9313986 8496340 9908785 9908780 9908787 9914474 9455008 ply@threemax.com.fj Skchetty 1992@gmail.com labasa@ahussain,com,fj managersales@vtbl.co 6 Plywood Retailers Consultation: 9 am (Tuesday 11th June at Western Forestry Conference room) 4 Parvin Chand Salim Hassan Jone Vuata Rajnesh Shadil Daya NAnd Rahal Prasad Ilisapeci Sokidi Ahneel Maniu Uwate Metro civil Vinod Patel RC Manubai Kasabia Sahay Brothers Sahay brothers FNU attachee Lonta Hardware Timber Inspector Plywood Retailers Consultation:10 am (Friday 14th June at Nasinu Forestry Conference room) Praveen Surendra RC Manubhai 9999380 Surend Chand RC Manubhai 9996051 Ravind Lal Rakshna Chand Krishneel Kumar Atish Narayan GMR Chand’s plywood supplies Kasabias Ltd Carpenters Hardware 9992102 8086654 9991058 9996467 Praveen- surendren@rcmanubhai.co m.fj exportmanager@rcmanubh ai.com.fj ravind@gmr.com.fj crakshna@gmail,com krishneel@kasabia.com.fj Timber.hw@carpenters.co m.fj 31 5 6 7 7 8 9 Appendix 4: Export Destination of Fijian Plywood in m3 (2010-2018) Countries Australia New Zealand Kiribati Cook Islands 2013 2012 2011 2010 2015 581.157 494.038 265.163 275.784 163.561 150.287 134.01 191.835 164.337 221.319 185.599 41.720 82.024 195.817 213.696 81.463 1.728 16.516 24.647 120 59.156 2014 Others 28.008 0.357 3.14 2016 151.192
 81.187 68.924 2017 86.747 58.702 43.035 2018 12.521 0 5.184 Total % 2180 1156 791 43 32 52% 28% 19% 1% .8% Total 880.173 927.69 664.815 457.614 341.019 423.585 301.303 188.484 17.705 4202.5 Australian markets Fiji Forest Industries Valebasoga Tropikboard Long Investment Fiji Ltd Scud 400.416 1461.1 184.591 36.925 Interior Exterior Marine 22% 51% 27% 462.727 1065.787 554.065 2082.579 Exported plywood grades to Australia (%) 27% 22% Interior Exterior Marine 51% 32 Appendix 5: New Zealand markets Volume/m3 164.337 Value Average unit price 2010 2012 2011 185.599 221.319 316993.4 467243.8 396453 2018 Total 2013 0 120 263566.8 358076.8 472852.7 193574.1 130761.8 0 2015 191.835 2017 58.702 2016 81.187 2014 134.01 1156.523 2599522 % 1928.923 2111.178 2136.073 2204.953 2672.016 2464.893 2384.299 2227.553 0 2247.705 Exporters Fiji Forest Industries Valebasoga Tropikboard Long Investment Fiji Ltd Grades Interior Exterior Marine Source: Ministry of Forests/Utilization Division, 2019 768.788 164 36.516 265.895 2247.671 2012 402 119 136 63 2011 131.22 2010 59.036 2.08 41.864 1388.89 133.88 50 9 Appendix 6: Plywood Import Destinations in m3 (period 2010-2018) Countries Australia Canada China New Zealand India Singapore USA Taiwan Individual Hong Kong Papua New Guinea Vietnam Chile Vanuatu Kiribati Korea Malaysia Total volume/m3 Value ($) Average($) 3961.361 139.496 103941.9
Value ($) Average($) Total 862.9824 5.054 14455.95 11941.62 301.214 738.706 24.411 19.05 0.7 263.359 335.188 49.54 22.5 1 5.754 71.521 39.293 0 % 3.0% 0.0% 49.6% 41.0% 1.0% 2.5% 0.1% 0.1% 0.0% 0.9% 1.2% 0.2% 0.1% 0.0% 0.0% 0.2% 0.1% Appendix 7: List of Plywood Importers (2010-2018) Companies Carpenters Hardware Fiji Electricity Authority GMR Muhammad Mahogany Industries Fiji Ltd Manohan Aluminium & Glass (Fiji)Ltd P.A Lal Coachwork RC Manubhai Vinod Patel A.Hussain & Co Ltd 10 AMR Company Ltd 11 Andrew Tuke 12 Ashok Prasad 13 Autocare Fiji Ltd 14 Bhan Autoparts 15 BP Prasad & Sons Ltd 16 CBS Powel Solutions Fiji Ltd 17 China Railway No 5 Engineering 18 Chinese Technical Team 19 Clyde Equipment 20 Cope Contruction Ltd 21 Dip Chand 22 Domes of Life 23 Dong-A-Holding(Fiji)Ltd 24 Encompass Pacific(Fiji)Ltd 25 Engineering Works Ltd 26 Faster Development(Fiji)Ltd 27 Fiji LDS Temple 28 Fletcher Construction(Fiji) 29 Fortech Construction PTE Ltd 30 Go Advertising Ltd 31 Golden Manufacturers 32 Goundar Shipping Limited 33 Green 0ak Holdings 34 Guangdong Namyue Group Company(Fiji)PTE Ltd 35 Hamishm Mclellan 36 Hans Halal Foods Ltd 37 Hunan Construction Enginering Group 38 Ideal Trading Ltd Volume (m3) % Imagination Televion Fiji Ltd Interiors (Fiji) Limited J.S Hill & Associates
 Ltd Jacks Manufacturing PTE Ltd Jehovah's Witnesses Of Fiji Jojis Holdings Ltd JS Hill & Associates 39 40 41 42 43 44 45 46 Kapil Nandan 47 Kasabia Limited 48 Kavanit Kaushal Chand 49 Kesh Investment Ltd 50 Khans Halal Foods Ltd 51 Kim Haorn Construction 52 Kinis Allied Industries 53 KK Hardware 54 Kokomo Resorts Ltd 55 Koorda Ltd 56 Laucala Island 57 Leanne Mitchell 58 Long Xin International Trade 59 Lonta Manufacturers Ltd 60 Mahijibhai & Co Ltd 61 Manohan Aluminium & Glass(Fiji)Ltd 62 Maptco Fasteners Ltd 63 Mapu Bilyato 64 Marine Solution Ltd 65 Mars Marketing (Fiji)Ltd 66 Masi Naicker 67 Mega Store Hardware Ltd 68 Modern Holdings Ltd 69 Multi Electronic Technologies 70 Nabou Green Energy 71 Nirmal Build Mart 72 Others 73 P.A Lal Coachwork 74 Pacific Building Solution 75 Plantation Island Resort 76 Popular Furniture Ltd 77 Quality Construction 78 Rainbow Trade Investment 79 Red Coat Furniture Joinery Ltd 80 Roopesh Gift Shop Limited 81 Rotary Club of Taveuni Rups Investment Ltd 83 Rusila Vere 84 Sally Driu 85 Shangri -las Fijian Resort 86 Singh Invetment Ltd 87 Soham Investment PTE Ltd 88 Solander (Pacific)Limited 89 Subril Furniture 90 Superior Roofing Ltd 91 Sustainable Mahogany Ltd 92 Tacirua Transport Company Ltd 93 Technicool Refrigeration & Air Conditioning 94 The Vuda Marina Point 95 Tonghe Trading Company Pte Ltd 96 Turttle Island Resort 97 United Containers (Fiji) Ltd 98 Vatuvara Ltd 99 Vomo Fiji Ltd 100 Western Home Ltd 101 Yalodina Tropical Farms 102 Yanjian Group
 (Fiji)Company Ltd 165.504 0.768 1 9.13 5.53 14 5.4 5.34 65 542 1.294 301.824 3 122.304 9.504 5.014 11.98 47.489 46 19.68 87.288 Total 29617.461 0.56% 0.00% 0.00% 0.03% 0.02% 0.05% 0.02% 0.02% 0.22% 1.83% 0.00% 1.02% 0.01% 0.41% 0.03% 0.02% 0.04% 0.16% 0.16% 0.07% 0.29% Appendix 8: Average Plywood Price in the Local Market Form Size 1 Exterior Plywood 2 Exterior Plywood 3 Exterior Plywood 4 Exterior Plywood 5 Exterior Plywood 6 Exterior Plywood 7 Exterior Plywood 8 Exterior Plywood 9 Exterior Plywood Interior Plywood Interior Plywood 2.4 1.2 0.003 2400 x 1200 x 3mm 2.4 1.22 0.004 2400 x 1220 x 4mm 1.2 0.004 2400 x 1200 x 4 mm 2.4 2.4 1.22 0.006 2400 x 1220 x 6mm 2.4 1.22 0.009 2400 x 1220 x 9 mm 1.2 0.009 2400 x 1200 x 9mm 2.4 2.4 1.22 0.012 2400 x 1220 x 12mm 1.2 0.012 2400 x 1200 x 12mm 2.4 0.9 0.003 2100 x 900 x 3mm 2.4 2.4 1.22 0.004 2440 x 1220 x 4mm Interior Plywood Interior Plywood Interior Plywood 2.4 2.4 2.4 1.2 0.003 2400 x 1200 x 3mm 1.2 0.006 2400 x 1200 x 6mm 1.2 0.004 2400 x 1200 x 4mm Interior Plywood 2.4 1.22 0.009 2400 x 1220 x 9mm Unit QTY per sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 1 sheet 2.4 1.2 0.006 2400 x 1200 x 6 mm 1 sheet Retail Price 20.88 30.9 26.15 38.16 37.39 38.97 58 46.05 71.12 16.58 29.75 16.58 34.42 21.86 36.45 per m3 price/m3 2422.08 2657.4 2275.05 2175.12 2168.62 1480.86 2262 1335.45 2062.48 2569.9 2558.5 1.002 116 1923.28 1996.36 1901.82 1385.1 1.002 1.002 1.001 58 87 38 36 16 17 Interior Plywood Interior Plywood 2.4 2.4 1.2 0.006 2400 x 1200 x 6mm 1 sheet 1.2 0.012 2440 x 1200 x 12mm 1 sheet 35.68 44.46 0.017 0.035 1.002 1.002 58 29 Total Average price 2069.44 1289.34 34532.8 2031.341 37 EXPORT AND IMPORT GUIDELINE A. SAWN TIMBER EXPORT PROCEDURES
 INTRODUCTION These procedures apply to the export of sawn timber destined for any market where the exporter requires the Department of Forestry to provide export license.
These export licenses indicate that timber has been inspected to particular phytosanitary requirements and quality / grade meet customers’ specification.

Exporters are reminded that the general ban on Indigenous Log exports and sawn timber over 300mm x 150mm (12’ x 6’) or equivalent areas section.

Application to export such items would be considered only under very exceptional circumstances.
Although Grade checks are limited to sawn timber exports, an export license remains a requirement for veneer, plywood and other wood products.

Companies intending to export should have a business registered certificate issued by Register of Companies office under the Ministry of Justice.

APPLICATION FOR EXPORT LICENCE Exporters are required to submit in triplicate an application for export license.
The application forms are available at Divisional Forestry Office (Lautoka, Labasa and Suva) and application- forms distributed by the exporters as follows:  Original Copy - Conservator of Forestry  Duplicate – Principal Utilization Officer  Triplicate – Divisional Forestry Office Timber Inspector (Lautoka, Labasa & Suva) as appropriate An application should record fully details of the consignment as shown in the contract specification with FOB unit values being quoted if more than one species of grade is involved.
On receipt of the Application for Export License, assuming there is no reason for application to be immediately rejected; arrangements will be made for timber inspectors to undertake 100% check on the grade.
GRADING Export grading of Indigenous Timbers will be based on the National Grading Rules for Fijian Timbers metric version 1986 and grades being designated as follows:  Finishing or Appearance Grade 1 | P a g e o Fiji Prime o Fiji Finishing Select o Fiji Finishing Standard  Construction or Framing o Fiji Construction Select o Fiji Construction Standard Export grading of Mahogany is now based on the National Hardwood Lumber Association Grading (American grading rules) and Fiji Pine exported on the basis of the Australian Standard AS 2858 (Visual stress grade) and AS 3519 (Machine stress grade).
Department of Forestry involvement relates only to the checking of graded materials.

Initial grading remains firmly the responsibility of the exporter.

Prior to undertaking the check, the timber inspector will require sighting the contract document to confirm the specification at first hand.

This should clearly detail the species, the grade, seasoning and preservative requirements, if any, dimensions and volume.
With regards to “Grade” the full nomenclature should be quoted for example “Fiji Finishing Select and Better “ is adequate, indicating it is a finishing grade.

Any variations from the rules agreed between the buyer and the seller should also be clearly indicated in the contract documents, e.g.

sawing tolerances.

Procedures for physical undertaking the check will depend on the nature of individual exporter’s operations.
It will usually be undertaken when the consignment is being put together at mill or yard site.

Occasions may arise when it is necessary for timber already bundled to be inspected, necessitating packets being opened.

The provision of whatever is necessary remains the exporter’s responsibility.

No grading operations whatsoever will be undertaken on any wharf.

Material failing to meet requirements will be rejected.
Substandard material will not be permitted to be exported simply to make up a minimum required shipping volume.

The checks undertaken refer to grade only.

Certificates to the effects that the consignment conforms to particular seasoning or preservative treatment levels should be provided by the exporter.

Material satisfying grade requirements will be hammer mark, branded on the end grains, individual lengths of timber being stamped.
TIMBER GRADING REPORT For each proposed export consignment, grading report is submitted by the timber inspector in charge of the Division’s activities, distributed directly as follows;  Original copy – Conservator of Forest  Duplicate copy – Exporter  Triplicate – Principal Utilization Officer  Quadruplicate – Timber Inspectors File 2 | P a g e The grading check is no way absolves the exporter from complete responsibility for the consignment in every respect at all times.
PHYTOSANITARY INSPECTION Phytosanitary inspection, aiming at 100% check, is undertaken by timber inspector only at sawmills, veneer & plywood mills, timber yards or processing centers when the consignment is being bundled.

No Department of Forestry inspection is carried out on any wharf.
If clean, an inspection certificate of the Forest Produce for export will be issued by the timber inspector and distributed as follows:  Original copy  Duplicate  Triplicate  Quadruplicate - Exporter - Agriculture Quarantine Office (Lautoka or Suva) - Principal Utilization Officer - Timber Inspector (Suva or Lautoka) Agriculture quarantine issues the formal phytosanitary certificate and a valid Forestry Inspection certificate is a prerequisite.
It should be noted that the inspection certificate is an international document.

The “Phytosanitary Certificate” is the country’s only formal phytosanitary clearance.

It is stressed here that neither the “Inspection Certificate” nor the “Phytosanitary Certificate” is a guarantee that any consignment is free from active infestation and that meets the requirement of the importing country.
EXPORT LICENCE On the basis of the recommendation indicated in the Timber Grading Report and the inspection certificate and export license will be issued by the Conservator of Forest distributed as follows:  Original  Duplicate  Triplicate  Quadruplicate - Exporter - Controller of Customs - Forestry HQ - Principal Utilization Officer The license cover only that particular shipment, each subsequent shipment require separate license.
An export license will be withheld if the consignment is not up to the grade (quality) required or fails to meet phytosanitary requirements.

INVOICE FOR CUSTOMS PURPOSE When shipping documents is finalized, a true copy of the “Invoice for Customs Purposes” requires to be forwarded by the exporter to the Conservator of Forest for statistical purposes.

The information contained in this form remains confidential.

3 | P a g e B.
3 | P a g e B.

TIMBER IMPORT PROCEDURES IMPORT REQUIREMENTS Any interested individual or parties intending to import timber or any timber products must;  Be registered locally under the Register of Companies from the Ministry of Industry Trade and Tourism.

In addition to this the exporter must obtain a Tax Identification Letter from the Fiji Islands Revenue & Customs Authority (FIRCA).

 Ensure local producers do not have stock or product is not manufactured locally.
This can be confirmed through writing to the Conservator of Forests of their inability to do so or in the absence of supply.

 Carry out due diligence as outlined in the Importer’s responsibility and assessing legality of timber source, origin and product.

 Clearly specify the product type, volume, cross section, length, species, grade, preservative treatment and seasoning (moisture content) requirements.
IMPORT DOCUMENTS The complete import documents include the following;  Covering letter justifying reasons for import  Completely filled timber import application form for an import permit  Packing List  Confirmation of contract of supply ( Orders above 100m³)  Bill of lading  Phytosanitary Certificate from country of origin  Company registration and Tin Letter for first time importers PROCESSING The Conservator of Forests will verify all applications for imports before issuing an import permit within 24 hours if all documents are in order and requirements fulfilled.
INSPECTION Ministry of Forestry’s Timber Inspectors will inspect upon arrival of shipment before a release form is issued to BAF for the release of consignment.

4 | P a g e Appendix 2 Ministry of Forestry Supplementary Response for 2016-2017, 2017-2018 and 2018-2019 Ministry of Forestry Responses to Supplementary Questions 2016-2017 Annual Report No.

Questions Ministry’s Response 1.

Can the Ministry please provide the Status Report as alluded to in your response to question 4?

(Research Trial Plots) 2.


Can the Ministry please advise the Committee of its Mahogany Replanting Program?

Is it on target?

Research Trial plots The objective of setting up Private woodlots for mixed exotic tree species namely Queensland maple, Rosewood, Mahogany and Teak is to conduct a threefold study on : Its growth performance and ability to grow in sites with limited edaphological conditions (as pH, nutrient availability, moist content, texture, etc.

); 1.

2.
); 1.

2.

The potential of replicating it as large scale plantations to ease the demand and reliance on Mahogany and Pine; and 3.

Creation of new forest products range and export markets in the areas of airplane propellers, coachwork, carriages, boat building, exterior construction, veneer, furniture, carving and turnings.

4.

Moving away from monoculture plantations like pine, which can be risky if targeted tree pests occur in these plantations.
With mixed species, targeted pests will only infect selected few so we don’t lose a whole plantation The support that the Ministry received from the Land Owning Unit since 2015 to date has been very positive as they not only allocated 0.23 hectares of land for the establishment of 2 mixed trial plots consisting of 125 trees, they have also taken ownership of the programme by conducting monthly maintenance and weeding.
The Silviculture Research Officers only come in for periodic assessment of height and girth of the species on a yearly basis.

Results : Looking at the results of research studies between 2015 and 2020 and with more than 85% survival rate, the average growth rate per annum for the 4 species were 0.7 meters, which is in alignment to the normal increment rate for these species.

The replanting of Mahogany is part of the national tree planting initiative, 30 million trees in 15 years (30MT15Y).
Since the inception of the Reforestation of Degraded Forests (RDF) project in 2015, Mahogany was included in this replanting programme along with pine, indigenous and other exotic species.

To date a total of 907,291 mahogany trees (1,886.26 hectares) have been planted by the Ministry.
1 | P a g e The Ministry also provides support to the replanting efforts of Fiji Hardwood Corporation Limited (FHCL) through assistance in seed processing, quality checks (moisture content check & germination test) and seed technology training to FHCL staff.

Since 2017, FHCL has planted a total of 1,543 hectares in Nukurua and Galoa mahogany forests.

This 2021-2022 financial year and as part of the 30MT15Y initiative, the national target is to plant a total of 400,000 mahogany trees.

3.
3.

As a forest commodity, the Committee wishes to know the current value of standing mahogany and how much of this is ready to be harvested?

Majority of Fiji’s matured mahogany is located in FHCL’s lease boundary which is around 75,277.51 hectares.

According to records with FHCL, a total of 41,426.31 hectares is stocked with mahogany with the rest of the area stocked with mixed species.

50% of the stocked mahogany area has reached maturity age of which 15% had already been harvested.
From the last assessment conducted in 2008, the value of mahogany plantation was estimated to be over $200million.

Another valuation is scheduled to be conducted soon to provide an up to date value of the standing mahogany plantation.

NOTE: These assessments of value are approximations based on expected volumes from standing trees and does not factor losses from pests and disease which are inside the tree trunks and can only be estimated when trees are cut down and sawn into timber.
These values cannot be used for claims in any litigation.
2 | P a g e Volume of native species harvested (2000-2021) S R E T E M C B U C I 140,000.0 120,000.0 100,000.0 80,000.0 60,000.0 40,000.0 20,000.0 - YEARS Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Volume of native species harvested 106,672.1 102,137.0 101,971.4 132,293.0 101,859.0 104,484.0 79,480.0 62,239.0 81,706.0 59,614.0 49,814.0 34,349.0 30,516.0 38,052.0 46,775.0 54,350.0 52,939.6 39,116.8 32,294.7 23,411.9 20,698.7 36,540.1 Appendix 3 Annual Report Summary Ministry of Forestry 2016-2017, 2017- 2018 and 2018-2019 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Annual Report Summary – Ministry of Forestry August 2016 – July 2017 Annual Report Standing Committee on Natural Resources Vision-“The leader in forestry sustainability and innovation for small island economies” Mission-“To drive sustainable resource management, economic growth and improve livelihoods through SMART forest policies that are based on applied research and development” Background August 2016 – July 2017  The Ministry is a regulatory and service organisation responsible for the national forestry sector through the following functions: o Formulate and implement forest strategies and policies; o Provide and administer the regulatory function under the respective Ministry’s legislation and regulations; o Monitor and evaluate current strategies, policies and deliverables; o Develop and promote effective training, communication and awareness and extension advisory services; o Strengthen community and industry networks and support frameworks; o Maintain international bilateral and multilateral commitments and; o Undertake applied research for sustainable forest resource management practices and product development.
Organization Structure Acts in Place Major Highlights  The organization structure can be viewed after the cover page of the annual report.

 The Ministry has a total staff of 237, of which 127 are established and 68 are wage earners.

A total of 42 project staff were also employed to ensure the timely delivery of project outputs.

The 237 staff does not include the 17 corporate and executive staff that were shared between the Ministry of Fisheries and Ministry of Forestry.
 The legislative framework of the Ministry can be viewed on page 5 of the annual report.

 Details on the Ministry Programmes and Capital Projects can be viewed on page 6 of the annual report.

 The Ministry commenced work on a new Policy, the Planted Forests Policy, with assistance from the Food Agriculture Organisation (FAO).

The aim of the Policy is to increase forest areas under managed plantations to reduce pressures on Fiji’s natural forests.
Consultations were conducted with all relevant stakeholders and a draft Policy was developed with FAO consultants.

 During the 2016-2017 Financial Year, the Ministry continued to pursue the finalisation and endorsement of the Forest Bill 2016 [Bill No.

13 of 2016].
13 of 2016].

Page 1 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Fiji has a total of 1.2 million hectares of forest areas, of which natural (indigenous) forests comprises 81.3%, Pine comprises 7.2%, Mahogany comprises 5.7% and Mangrove comprises 5.0%.

The Northern Division has the most forest areas covering 40.6% of total forest areas, followed by the Central Eastern Division with 30.5% and the Western Division with 28.2%.
 National log production from August 2016 to July 2017 stood at 251,222.8 cubic meters, of which Pine was 192,385.8m3 (76.6%), native species was 43,190.7m3 (17.2%) and Mahogany was 15,646.2m3 (6.2%).

 A total of 66 sawmill licenses were issued during August 2016 to July 2017, of which 25 (38.5%) were for static sawmills while 40 (61.5%) were for portable sawmills.

 Under the Forest (Preservative Treatment) Regulations 1996, 26 treatment plants existed during this period.
Of these, 20 treatment plants were licensed, two were non-operational, one was newly established and three were under process before issuance of licenses.

 A total of 988 permits were issued this financial year, of which 284 (28.7%) were for exports while 704 (71.3%) were for imports.

 Total export value of forest products from August 2016 to July 2017 amounted to $33.0 million.
The two major export commodities were pine chips and sawn timber, which generated total export revenue of $26.4 million and comprises 80.0% of total exports.

 The major export destinations for forest products for the 2016-2017 FY were Japan, Dominican Republic, USA, New Zealand and Australia, with a total export value of $30.9 million.

 Total import value of forest products from August 2016 to July 2017 amounted to $29.2 million.
The major import commodity was sawn timber, which stood at $15.0 million and comprises 51.8% of total imports.

 The major import countries of origin for forest products for 2016-2017 FY were New Zealand, China and Australia, with a total import value of $27.5 million.
 Forest Logging Annual Licenses: o The total number of annual logging licenses (right licenses) issued during this period was 562, of which 184 (32.7%) was issued from Central/Eastern Division, 110 (19.6%) from Western Division and 268 (47.7%) from the Northern Division.

o New licenses issued were 276, of which 98 (35.5%) were issued from the Central/Eastern Division, 47 (17.0%) were issued from the Western Division and 131 (47.5%) were issued from the Division.
o A total of 286 licenses were renewed, of which 86 (30.1%) were from the Central/Eastern Division, 63 (22.0%) were from the Western Division and 137 (47.9%) were from the Northern Division.

 Timber Processing: o A total of 65 sawmills were licensed during the period of which 25 were static mills and 40 were portable mills.
o Out of the 26 treatment plants, only 20 treatment plants were licensed to operate during this period while two treatment plants were non-operational, one was newly established and three were under process.

Page 2 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary o A total of 20 kiln facilities existed during this period, however only five were operational as the rest were mostly conducting air drying.
Tropik Wood Industries records the highest number of kiln drying production figures due to the high demand of its treated products (more details can be seen on page 13 pf the annual report).

 Permanent Sample Plots – details can be seen on pages 14 & 15 of the annual report.

 GIS and Mapping: o A forestry officer was deployed to the Geoscience Division (SPC), Nabua, from August to November 2016, for the collection of points to stratify the land use category.
o The task was to collect 10,000 Plots all over Fiji, and to visually identify the Land Use Category, as to whether the Plots (In yellow) fall on Forest, Cropland, Grassland, Wetland, Settlement etc.

o After the completion of 10,000 Plots in November, a cleaning process of the 10,000 plots organised by FAO was conducted by Mr Haraguji (Japan) and Mr Gewa (PNG) and held at the Forestry Training Centre (FTC) in the month of December, in order to rectify the problems of this data collected.
The cleaning process was run by the data cleaning tool (Saiku Analysis).

o Results of the analysis can be seen on page 16 of the annual report.

 The Division received 40 applications for timber volume assessment.

Five applications were from the Northern Division, 28 applications were from the Central Eastern Division and seven were from the Western Division.

A total of 20 Logging /Harvesting Plans were produced during the period.
 Reducing Emissions from Deforestation and Forest Degradation (REDD Plus): o The REDD+ readiness is being followed in a phased approach to its current national REDD+ programme:  The first phase aims to put in place policy and institutional frameworks for the implementation of REDD+ and addressing capacity needs for the establishment of a national Measuring, Reporting and Verification (MRV) system.
 The second phase involves the development of a national REDD+ strategy, the establishment of pilot sites and strengthening MRV capacities (towards Tier 2 and 3 level reporting).

 The third phase will be the implementation of the strategy, participation in a REDD+ carbon financing mechanism, and the establishment of an operational MRV and IPCC reporting system.
o Fiji is currently in phase 2 of its national REDD+ programme, and Readiness Preparation Proposal (R-PP) development and implementation supports the achievement of the targets set out in this phase, working towards successfully achieving the third phase.
o The main focus of the programme in 2016 – 2017 is the Emalu lease payment, development of awareness material, Institutional Strengthening, continued development of the Emalu Pilot Site reforestation, agriculture demo plot, monitoring and alternative livelihood activities, development of Forest Reference Level (FRL) and National Forest Monitoring System (NFMS), Environmental and Social Monitoring Framework (ESMF), Analytical Studies of Drivers of Deforestation and Forest Page 3 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Degradation, REDD+ Strategy options, Land Tenure/Governance Analysis, Developing a Feedback and Grievance Redress Mechanism (FGRM) and Increased Awareness in Fiji on REDD+.
 Development of REDD+ Readiness and Emission Reduction Program: o Fiji had secured FCFP funding of US$3.8m to implement its R-PP from 2015 – 2019, with co-funding from the Fiji Government and the SPC/GIZ Regional Programme Coping with Climate Change in the Pacific Island Region.

o Fiji’s R-PP will mainly cover the analytical work and consultation process required to develop and validate the country’s REDD+ strategy.
 The status of achievement for REDD+ Project can be seen on pages 18 & 19 of the annual report.

 Education and Training: o The Forestry Training Centre (FTC) and the Timber Industry Training Centre (TITC) activities for the year continued to focus on communities that were affected by T.C.

Winston.

This is a continuous responsibility after T.C.


Winston, and requests continued to be received at both Centres for the training of communities on Chainsaw and Portable Milling operations in order to assist them in rebuilding their homes.
o The Training of Forest Technicians also continued throughout the year and was completed in December 2017. o The Biodiversity Conservation and Protected Area Management (BCPAM) training programme was developed by the staff of the FTC, with support from the Food and Agriculture Organisation (FAO) of the United Nations.

This was conceivably the greatest achievement by the Division this year, with the official launch of the programme by the Honourable Minister for Forestry, in Colo-i-Suva.
o FTC continued to maintain a total of 15 staff quarters.

11 are in Colo-i-Suva while four are in Lololo.

There is one dormitory in Lololo, as well as the kitchen, storeroom and garage.

One of the four staff quarters in Lololo was destroyed by uncontrolled fire during the year (full details can be seen on page 20 of the annual report).
 Sustainable Forest Management (SFM) Training and Awareness: o Sustainable Forest Management (SFM) and Awareness Training continue to be conducted, with the understanding that well managed forests with appropriate conservation measures can deliver society’s needs in a sustainable way.

The assistance provided through the collaborations with ITTO Project helped the Division in achieving its desired output.
o The objectives and learning outcomes of the Programme this year had focused on the following four areas:  Provide a broad appreciation of the extent and character of the global forest estate, as well as drivers of, and responses to, changes in forest cover.

 Explain how forests function and interact with wider ecosystem processes to provide environmental services.
 Illuminate the different ways in which people and societies relate to and utilise forest resources: livelihoods, lifestyles, and legal and policy frameworks.

 Examine the process of forest management planning, implementation and monitoring.
Page 4 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Forest Harvesting Training - The Fiji Forest Policy highlighted the need for comprehensive skills training for the forest industry to be able to improve knowledge on forest utilisation, the Fiji Forest Harvesting Code of Practice and environment protection practices, log conversion, timber preservation, quality assurance and marketing (full details can be seen on page 23 of the annual report).
 Forest Warden Training - The Forest Policy also mandated the Ministry to train resource owners on the environmental requirements of the Fiji Forest Harvesting Code of Practice and any other environmental protection requirements stipulated in the management and harvesting licenses and, where possible, engaged these trained resource owners to monitor environmental standards.
The Ministry, through the Forestry Training Centre, started the consultation and curriculum development in 2015, followed by recruitment and selection.

The formal Forest Warden training started in 2016 (full details can be seen on page 24 of the annual report).

 Seed Production: o The objective of this programme is to develop improved methods for harvesting, processing, testing, storing, retrieving and distributing seeds, to ensure improved viability.
o There was a great decline on the volume of seeds being collected compared to previous years.

The quantity of native seeds have been reduced to as low as 50% deficit due to many factors, including natural disaster, change in weather pattern, change in fruiting and maturity season, temperature increase, logging, stress and so forth.

o One of the greatest challenges in this work is to have the required volume of seeds to cater for all the demand on any forest activities.
These include private sectors, business, institutions, non-government organisations, faith based organisations, government and interested individuals.

 Seed Collection - A total of 3061.1kg of seeds were collected during the year.

Sandalwood species 3.72kg, Indigenous species 551.4kg and 2506.kg Exotic species.

 Seed Processing - Seeds received were processed according to seed type and equipment available in the lab.
During the year a total of 278.56 kg of seeds was processed Sandalwood species 3.04 kg, Indigenous species 122.62 kg, and Exotic species 152.9 kg.

 Seed Sowing - A total of 86,842 seeds were sowed for germinant production during the year.

Sandalwood species, 21,608 seeds; Indigenous species, 41,631 seeds and Exotic species, 23,603 seeds.

 Seed Sales and Distribution - A total of 18.5kg of Mahogany seeds were distributed during the year.
2.5kg of Mahogany seeds were sold and 16.0kg were distributed to the three Divisions; Central, West and North, for reforestation programmes.

 Transplant - A total of 3,130 Sandalwood seedlings were transplanted, which is basically the same as the quantity of seeds, and being one of the lowest number recorded.

This is due to many reasons, including the limited number of seeds available and also the viability of seeds.
Page 5 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Distribution - A total of 1,977 Sandalwood seedlings were distributed in this financial year, equivalent to 63% of the germinants.
This figure should not be interpreted as high mortality, as there is a need to also consider other areas of stock take and recording, which would itemise the remaining 37% Looking at the high distribution of Indigenous species in February and March depicts that most of the planting programmes are carried out concurrently.
 Mixed species woodlot: o Four high value timber species were selected and planted to create small forest stands on farm-land to maximise economic returns for farmers as a long term crop.

The four species are Mahogany, Queensland Maple, Rosewood and Teak.

o Two sites have been selected; Colo-i-Suva and Vaqia in Ba, for replication of methods to test the growth and survival.

o It was interesting to note that all four species adapted well on both sites, producing an average survival rate of 85 -100%.
For the Colo-i-Suva trial, the average height increase after a year of planting is 1m, whereas the Vaqia trial showed an increase by only 0.1m.

 Sandalwood spacing: o This is a key to improved growth and quality products.

Over the years, spacing is one of the greatest points of discussion due to high mortality, slow growth, pest and disease infestation and management control.

o A lot of information on the growing of Yasi has been documented by individuals, but with very little emphasis on the spacing.
This trial would be able to validate theories and practices and to ascertain appropriate sandalwood spacing.

Kumi, Colo-i- Suva and Wainiyabia have been selected to conduct this spacing trial.

o The three spacing trials are; 3m x 3m, 4m x 4m and 6m x 3m.

At this stage, it would be difficult to determine the appropriate spacing, however, the information on growth and survival could be a basis of assumption.
The average growth increments for all spacing within and between trials range from 1.806 – 5.9cm per annum.

 Studies on Growth Dynamics of Calophyllum inophyllum: o The major objective of this research is to improve the growth of Calophyllum inophyllum (Dilo), especially with tolerance to cyclone strength winds and to survey oil production and market potential of Dilo in selected countries of the Pacific Region.
o Throughout the 2016-2017 fiscal year, the Species planted in Vunimaqo Fisheries Station performed much better with an average growth rate of 84.27cm, compared to those established in Sigatoka Sand Dunes with the average growth rate of 43cm.

 Forest Health – The scope of research throughout the year covered the following activities from August 2016 to July 2017: o Forest Health Assessment at Plantation areas; Pest and Disease Surveys at Nurseries; Surveillance and Monitoring, and Laboratory Work.
 Forest Health Assessment at Plantation Areas: o Throughout the year, the Forest Health team concentrated on two sites, the Spacing Trial in Colo-i-Suva and the Yavuna Restoration Plot in the Nausori Highlands.

Page 6 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary o Mode of assessments is 100% where all the plants are assessed for pest and disease infestation.

Almost all Agarwood plants survived and the mortality rate are very low at 5%.
There is no major symptoms of tree disorders, except for a few and minor chewing of some of the foliage of these Agar wood plants (full details can be seen on page 31 of the annual report).

 Pest and Disease Surveys - Assessments were undertaken at the Private Nursery in Nasoso, Nadi, SRD Nursery, Extension Nursery and DFO/West Nursery.

Most of the seedlings raised in these nurseries are thriving well with overall mortality about 5%, which is very low, indicating a high survival rate.
However, seedlings have signs of pest and diseases and some of the major pests are mealy bugs, scales and white flies, with minor chewing (full details can be seen on page 31 of the annual report).

 Surveillance and Monitoring - Trapping methods are used as a surveillance and monitoring tool to monitor pest incursion throughout the year.
During the day, static traps are set at plantation areas, native forest areas and nurseries and ports of entry (full details can be seen on page 32 of the annual report).

 Way Forward for the Silviculture Research Division - The resources allocated to the Division are sufficient to produce research outcomes and deliverables set out in the business plan.

However, there are areas that need improvement including capacity building, research publication and in-depth analysis.
The objectives of research needed to be reviewed so that current issues are embedded into research activities and programmes.

There is also a need for the refocus and realignment of the research structure, including human resources and programmes, to explore the finer details of plantation forestry, sustainable forest management and Mangrove ecosystems.
 Graveyard assessment trials are normally conducted to assess the natural durability of species in ground contact and treated species when exposed to outside environment conditions, seawater contact, in and out of ground contact.

Results of assessments can be seen on pages 34-36 of the annual report.
 Quality Control – Laboratory Preservative Loading Tests (August 2016-July 2017): o The laboratory facility at Nasinu was utilised throughout the year on a “user-pay” basis for treated timber analysis and spot testing under the Division’s quality control monitoring scheme.

o Total number of samples received were 966 with revenue collection of $21,349.25.
 The sawmill section provides advice and technical assistance to the sawmill industry with the view of improving quality and quantity of sawn out-turn, wood working industries, in support of value added products and also to operate the Division’s sawmilling and wood working facility on a semi-commercial basis.

Sawmill monitoring was carried on a quarterly basis for all 66 sawmills that were licensed during this period.
Non-compliant companies were issued with an Improvement notice on the spot and Monitoring reports were submitted to management for their information.

 Research on Maesopsis Species – details can be seen on page 38 of the annual report.

Page 7 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Research on the Effects of Resin Tapping on Timber Quality: o This research aims to research and compare the timber qualities between untapped and tapped Pine.
The results from the study done will assist industries, resources owners and also the general public that have a special interest in Pine Resin Extraction and Pine timber as commercial products.

o After numerous discussions with Fiji Pine Limited, the field visit for sample collection was finally implemented in March 2017.

Samples were collected from PU 9 at their Nabou Pine Woodlot where 20 trees were selected (10 tapped and 10 untapped).
 Results on physical condition of trees can be seen on page 39 of the annual report.

 Administration of SCARF: o Applicants were assisted with technical advice and were also guided in the filling of the forms with other related requirements that were needed by FDB before approving the loan request.

Six applications were received and vetted.

o The rise in number was mainly due to the impacts of T.C.
Winston and applicants were applying to the SCARF assistance loan programme, for assistance in the procurement of forestry specialised machines with a maximum amount of $250,000.

This included the Ministry’s SCARF contributions, which is 35% of the total loan, and 65 % is the FDB contributions.

 Forest Subsidy Programme - Under this programme with a budget allocation of $50,000, the Ministry was able to assist six people with the procurement of their specialised value adding tools and machines.
This creates opportunity for those with skills and potential for wood carving, in order to boost their production while also enhancing the quality of their products.

 Reforestation of Degraded Forests Project - The project was tasked to plant 500ha of degraded areas this financial year.

With a budget allocation of $500,000.00, the team managed to afforest/reforest 506ha of degraded land.
28.71% of the achievement was from the Northern Division, 17.38% was from the Central/Eastern Division and 55.1% was from the Western Division.

 Reforestation of Degraded Forests (RDF Awareness) - The Project also participated in the dissemination of Sustainable Forest Management and Reforestation information to the communities (details can be seen on page 42 of the annual report).

 Other highlights of the RDF Project during the 2016- 2017 Financial Year can be seen on page 43 of the annual report.
 ITTO Project – Community based restoration & sustainable management of vulnerable forests of the Rewa Delta, Viti Levu: o This project, which started in 2015, is one of the Ministry’s internationally funded projects with the aim of sustainably managing coastal and Mangrove forest areas.

The project is also supported by the University of the South Pacific, the Conservation International and the Secretariat of the Pacific Communities.
ITTO Project has two components for implementation and they are: Component 1: Community Awareness and o o Alternative Livelihood Options and Component 2: Restoration and Rehabilitation of Degraded Coastal and Mangrove o Wetland.
In 2017, the Project had completed its first component, which was the ‘Community Awareness and Alternate Livelihood Options’ for all its six Project sites around the Rewa Delta, and is currently undertaking its second component (details can be seen on pages 43 & 44 of the annual report).
Page 8 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services  Colo-i-Suva Forest Park: Annual Report Summary o The Division continued to promote and educate the importance of protecting the natural resources to the public, such as the Colo-i-Suva Forest Park.

Maintenance of the park and its facilities including tracks and trails, continued to ensure the safety of all park users.
o Colo-i-Suva Park, as a popular local picnic spot, was visited by 41,893 visitors (locals and tourists) and earned a total of $118,486 in revenue (entry fees) from August 2016 to July 2017.

 Queens Commonwealth Canopy Award - Fiji, through the Ministry of Forestry, received Her Majesty’s Commonwealth Canopy Award during this financial year for the dedication of the Colo-i-Suva Forest Park.

This Award was received by His Excellency, the President of the Republic of the Fiji Islands.
The Queens Commonwealth Canopy Award is a promotion of Forest Conservation in Commonwealth countries.

 Nature and Reserves: o The Ministry manages a total number of seventeen (17) Forest Reserves and seven (7) Nature Reserves covering a total forest area of 34,890.43 hectares.

o Other parks and reserves managed by other Environmental organisations cover a forest area of 17,004.5 hectares.
o The maintenance of Forest Reserves for 2015 was conducted on four Forest Reserves which included the reserves of Colo-i- Suva, Savura, Lololo and Saru Creek.

Activities mainly included boundary maintenance and demarcation.

Annual lease payments for all reserves totaled to $66,426.14.

o Full details on the forest reserves, nature reserves and other parks & reserves location and area (HA) can be seen on pages 46 & 47 of the annual report.
Financial Position Total Revenue Total Operating Expenditure Total Capital Expenditure Total Expenditure TMA – Profit and Loss Statement – Timber Utilization Division (Total Income) TMA – Profit and Loss Statement – Timber Utilization Division (Total Expenses) Net Loss 12 months 31 July 2017 ($) 2,718,654 16,277,590 7 months 31 July 2016 ($) 1,388,702 10,709,462 5,756,060 23,012,137 1,141,783 1,288,574 (146,791) 5,363,863 16,914,837 10,153 43,263 (33,110) Page 9 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary 112 47,677 49,504 190,095 Trust Account – 1/3 Subsidy Scheme (Total Receipts) Trust Account – 1/3 Subsidy Scheme (Total Payments) (Deficit)/Surplus TMA – Balance Sheet – Timber Utilization Division (Total Assets) TMA – Balance Sheet – Timber Utilization Division Total Liabilities Net Assets Total Equity Audit Opinion The Auditor has audited the financial statements of the Ministry of Fisheries and Forests, which comprise the Statement of Receipts and Expenditure, Appropriation Statement, Statement of Losses, TMA Manufacturing Account, TMA Trading Account, TMA Profit and Loss Statement, TMA Balance Sheet, Trust Account Statement of Receipts and Payments for the year ended 31 July 2017, and notes to and forming part of the financial statements, including a summary of significant accounting policies.
2,208,074 (111,344) (111,344) 2,536,520 (35,447) (35,447) 2,096,730 2,571,967 191,922 1,824 Auditor’s Opinion In Auditor’s opinion, except for the effects on the matters described in the Basis for Qualified Opinion paragraph, the accompanying financial statements are prepared, in all material respects, in accordance with the Financial Management Act 2004 and Finance Instructions 2010 and Finance (Amendment) Instructions 2016.

Basis for Qualified Opinion Operating Fund Account 1.
Expenditures amounting to $276,181 were not recorded in the Statement of Receipts and Expenditures for the year ended 31 July 2017.

This amount relates to unrecorded expenditures of $191,147 paid from Standard Liability Account 84 and retired Accountable Advances of $85,034 for the current year which were not cleared from the Revolving Fund Account.

As a result, the expenditure balance of $23,012,137 for the year ended 31 July 2017 is understated by $276,181.
Page 10 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Trading and Manufacturing Account Annual Report Summary 2.

There is an unreconciled variance of $104,597 between the bank reconciliation and the Cash at Bank general ledger balance.

Consequently, Auditor was not able to confirm the accuracy and completeness of the Cash at Bank balance of $1,896,419 recorded in the TMA Balance Sheet as at 31 July 2017.

3.
3.

The Ministry paid a sum of $2.5 million to the Trading and Manufacturing Activity (TMA) account from its operating budget for the purpose of salvaging logs after Tropical Cyclone Winston.

Of the amount, a sum of $301,451 was utilized for this purpose in 2017 leaving a balance of $2,198,459 as at 31 July 2017.

The cash at bank balance of $1,896,419 recorded in the TMA Balance Sheet is not sufficient to support the remaining balance of $2,198,459.

4.
4.

The Ministry recorded total expenses of $1,288,574 in the TMA – Profit and Loss Statement for the year ended 31 July 2017.

The Ministry was not able to provide documentations to support expenditures totaling $515,515.

As a result, Auditor was not able to verify the accuracy and completeness of the total expenses recorded in the Profit and Loss Statement.

5.

The Ministry recorded sales of $1,161,623 in the TMA – Trading Account for the year ended 31 July 2017.
The Ministry was not able to provide documentations to support transactions totalling $306,623.

As a result, Auditor was not able to verify the accuracy of the Sales amount recorded in the Trading Account.

Trust Fund Account 6.

The Ministry did not maintain a detailed listing of the beneficiaries of the Trust Accounts.

Consequently, Auditor was not able to substantiate the completeness of the closing balances of $190,095 reflected in the Statement of Receipts and Payments for the Trust Fund Account.
Gender Analysis  According to page 25 of the annual report, a total of 22 students were enrolled in the 2016-2017 forest technician programmes.

The recruitment process was very fair, with recruitment of 50% males and 50% females, promoting gender balance as stipulated in the 2013 Constitution.

Page 11 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Guiding Questions Annual Report Summary 1.
Can you inform the Committee on the status of the “Planted Forests Policy”, what does this policy cover and who are the beneficiaries of this policy?

2.

The annual report states that “Fiji had secured FCFP funding of US$3.8m to implement its R-PP from 2015 – 2019, with co-funding from the Fiji Government and the SPC/GIZ Regional Programme Coping with Climate Change in the Pacific Island Region”.

Can you update the Committee on this?

3.


Page 26 of the annual report states “There was a great decline on the volume of seeds being collected compared to previous years.

The quantity of native seeds have been reduced to as low as 50% deficit due to many factors…” Please advise what strategies has the Ministry taken to deal with this?

4.

Page 26, also states that “One of the greatest challenges in this work is to have the required volume of seeds to cater for all the demand on any forest activities”.
Has the Ministry been able to overcome this challenge, if yes, then what has been done?

5.

Page 33 of the annual report states the Way Forward for the Silviculture Research Division, that there are areas that need improvement including capacity building, research publication and in-depth analysis.

Have resources been provided to the Ministry to make improvements to these areas?

6.

There were 6 Qualified Opinions by the OAG stated on pages 51 & 52 of the annual report.
Please advise on the status of these Qualified Opinions?

7.

What were some of the challenges faced by the Ministry especially when transiting into a single portfolio (from Department to Ministry) and how have these been overcome?

01 September 2021 Disclaimer This Annual Report Summary was prepared to assist the Standing Committee on Natural Resources in its review of the Ministry of Forestry August 2016 – July 2017 Annual Report.

This summary should not be relied on as a substitute for specific advice.
Other sources and information should be consulted.

Whilst every effort has been made to ensure that the information is accurate, the Parliament of the Republic of Fiji will not accept any liability for any loss or damage which may be incurred by any person acting in reliance upon the information.

The Parliament of the Republic of Fiji accepts no responsibility for any references or links to, or the content of, information maintained by third parties.
For further information please email: Shobhna Rani on shobna.rani@govnet.gov.fj Page 12 of 12 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Annual Report Summary – Ministry of Forestry 2017-2018 Annual Report Standing Committee on Natural Resources ____________________________________________________________________________________________________________________________________ Vision-“The leader in forestry sustainability and innovation for small island economies” Mission-“To drive sustainable resource management, economic growth and improve livelihoods through SMART forest policies that are based on applied research and development” Background Organization Structure Act in place Major Highlights 2017-2018 The Ministry is a regulatory and service organisation responsible for the national forestry sector through the following functions:  Formulate and implement forest strategies and policies;  Provide and administer the regulatory function under the respective Ministry’s legislation and regulations;  Monitor and evaluate current strategies, policies and deliverables;  Develop and promote effective training, communication and awareness and extension advisory services;  Strengthen community and industry networks and support frameworks;  Maintain international bilateral and multilateral commitments; and  Undertake applied research for sustainable forest resource management practices and product development.
The organization structure is provided on page 9 of the annual report.

The legislative framework of the Ministry can be viewed on page 8 of the annual report.

 Details on the Ministry Programme and Projects can be viewed on page 10 of the annual report.

 A total of $16.0 million was allocated to the Ministry, of which $13.3 million (83.1%) was utilized for the implementation of the Ministry’s programmes and projects, leaving a balance of $2.7 million at the end of July 2018.
 The separation of Forestry and Fisheries led to development of the Ministry’s its first Strategic Development Plan (SDP) to guide the work of the Ministry till 2030.

The draft framework for the SDP was developed in consultation with its stakeholders and was guided by the objectives and targeted Outcomes of the National Development Plan, and international obligations.
 Review of and development of Forest Legislations & Regulations - During the financial year 2017-2018, continued the Ministry to purse the finalization and endorsement of the Forest Bill [Bill No.

13 of 2018], which is a review of the Forest Act 1992.

However, the stakeholder consultations with a view of revising the 1992 Forest Act to include recent developments within the Forest Sector in addition to supporting the full implementation of the Fiji Forest Policy 2007.
Page 1 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Cabinet Submission - Three Cabinet submissions were made during this period and are as follows: i.

The Memorandum of Understanding (MOU) between Indonesia’s Ministry of Environment and Forestry and Fiji’s Ministry of Forestry; ii.

The Third Asia- Pacific Rainforest Summit; and iii.

The United Nations Forum on Forests 12th Session Meeting Report.
 Partnership | Memorandum of Understanding - The Ministry developed a Memorandum of Understanding (MOU) with the Ministry of Environment and Forestry of the Republic of Indonesia.

This MOU was signed on 24 April 2018 at the 3rd Asia-Pacific Rainforest Summit (APRS) in Yogyakarta, Indonesia by the Fijian Minister for Forestry, Honourable Osea Naiqamu, and Honourable Siti Nurbaya, Indonesia’s Minister of Environment and Forestry.
The areas of cooperation include forest and land rehabilitation, wildlife and plant protection, wood and non-wood products utilization, and promotion of trade in forest products.

 Human Resource - The financial year 2017 – 2018 saw the separation of the Ministry of Forestry and the Ministry of Fisheries corporate staff that were once shared.

The HR Division continued with its normal function despite the challenges of performing extra responsibilities for better services.
The implementation of the Job Evaluation Exercise (JEE) 2017 was also carried out in this financial year where a total of 226 transition contracts were signed.

Following this the Performance Management Guideline, Discipline Guideline and the Learning and Development Guideline were implemented.

The staffing strength at the end of this financial year stood at 85.8%.

The staff establishment structure is given on page 12 of the annual report.
 Upgrade of Quarters - The upgrading project was delayed during the year due to delay in drawings and trade cost summary from Ministry of Infrastructure & Transport.

As a result the Tender was re-advertised due to variation in costs.

However, the team managed to hasten the process and subsequently awarded the tender towards the end of the financial year.

Maintenance work of the 8 selected quarters continued in the next financial year.
 Fiji has a total of 1.1 million hectares of forest areas, of which natural (indigenous) forests comprises 86.56%, Softwood comprises 6.83% and Hardwood comprises 6.6%.

 Forest Production - National log production from Aug 2017 – Jul 2018 stood at 445,803 cubic meters, of which pine was 395,276.20m3 (88.67%), indigenous species was 39,242.11m3 (8.80%) and mahogany was 11,285.46m3 (2.53%).
 Downstream Processing  Sawmills in Fiji- A total of 54 sawmill licenses were issued during Aug 2017 – Jul 2018, of which 23 (42.6%) were for static sawmills, while 31 (57.4%) were for portable sawmills.

 Sawmill Production - The total log volume input for Aug 2017 – Jul 2018 was 45,874.67m3 and the total sawn timber production was 21,698.42m3.

Thus, the average sawmills recovery rate was 47.0% as detailed in the table.
 Timber Treatment Plants - Under the Forest (Preservative Treatment) Regulation 1992, 27 treatment plants existed during this period.

19 treatment plants were licensed, 4 were non-operational, and 4 were under process before issuance of licenses.

 Exports - Total value of export for forest products from Aug 2017-Jul 2018 amounted to $48.4, an increase of $15.5 million (46.9%) compared to the $32.98 million of the previous financial year.
The 2 major export commodities were pine chips and sawn timber with Page 2 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary a total export revenue of $45.3 million contributing to 93.6% of total exports.

The major export destinations for forest products for 2017-2018FY were Japan, China, Dominican Republic, USA and New Zealand with total export value of $46.0 million.
 Imports - Total value of import of forest products from Aug 2017 - Jul 2018 amounted to $28.5 million, a decline of $0.66 million (2.26%) compared to the previous financial year.

The major import commodities were sawn timber, plywood, hardboard and cross arms which accounted for $22.98 million (80.5%) of imports.

The major countries of origin for imports of forest products for 2017- 2018FY were New Zealand, China and Australia with a total import value of $24.5 million.
 Forest Law Enforcement: Licensing, Compliance & Monitoring  Forest Harvesting - Total annual logging licenses (right licenses) issued during this period was 314 of which 75 (23.9%) was issued from Central/Eastern Division, 194 (61.8%) from Western Division and 45 (14.3%) from the Northern Division.
These licenses included both new and renewed licenses.A total of 23 licenses were issued for Mahogany, 158 licenses issued for Pine, 36 licenses issued for Indigenous species, 81 licenses issued for Minor Forest Produce (MFP) and 16 licenses issued for clear felling.
 Monitoring, Compliance and Surveillance - Monitoring, compliance and surveillance were carried out by forestry officers stationed in the three Operation Divisions in the Western, Northern and Central/Eastern Division.All logging licenses issued and harvesting operations are constantly inspected and supervised to ensure compliance against the Fiji Forest Harvesting Code of Practice 2013, the Forest Act 1992, Harvest Plans and the Health & Safety at Work (OHS) Act 1998.
The compliance level was above 80% for field operations and field machines, including chainsaws and safety equipment.

The Monitoring, Compliance and Surveillance Project was allocated a budget of $100,000.00 which was used to monitor compliance level in all Divisions by the MCS Project Officer and selected team members.

Two national monitoring were successfully conducted in this financial year.
The MCS budget was also used to carry out refresher trainings and awareness to officers; and this includes training for supervisors in logging companies.

The objective is to ensure that operations in the forests are carried out according to relevant laws and approved operating procedures.
The project continued work on the 2 Memorandum of Understandings (MOUs) between the Ministry of Forestry and the Ministry of Employment, Productivity and Industrial Relations (MEPIR); and the Land Transport Authority (LTA).

The two MOUs were submitted to the Solicitor General’s Office for vetting and clearance.

 Timber Processing - A total of 54 sawmill licenses were issued during Aug 2017 – Jul 2018 with the total sawn timber production at 21,698.42m3.
A total of nineteen (19) licensed timber treatment plants were operating during the year.

These plants treated a total sawn timber volume of 31,606.51m3.

Monitoring of these sawmills and treatment plants were conducted throughout the year to ensure compliance against the1968 Forest (sawmill) regulation and the 1992 Forest (preservative treatment) regulation.
 Forest Management- Forest Resource Information-  The Management Division is responsible for the management of Forest Information System (FIS) and data; growth assessment of natural forests through permanent sample plots, administration of mapping and surveys of forest boundaries and forest functions and services; and co-ordination and facilitation of forest international and regional conventions and agreements.
Page 3 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  National Forest Inventory (NFI) 2007 - The NFI Statistics Report was finalised this financial year, however the full report was still work in progress.

 Permanent Sample Plots: details can be seen on pages 18 and 19 of the annual report.

 GIS and Mapping - 2 Officers were involved in this GIS and Mapping activity at the Pacific Islands Applied Geoscience Commission (SOPAC).
They also worked on Forest Change Detection from the year 2006 – 2012 & from 2012-2016 (Period of 10 years) for the following islands: Vitilevu; Vanualevu; and Taveuni.

The Map depicts forest/ vegetation cover change.

 Timber Volume Estimates & Harvesting Plans - During this period, the Division received 31 applications for timber volume assessment.

Eight applications were from the Northern division, 20 applications were from the Central Eastern division and 3 from the Western division.
A total of 23 Logging /Harvesting Plans were produced during the period.

 Reducing Emissions from Deforestation and Forest Degradation (REDD Plus) - The REDD+ readiness is being followed in a phased approach to its current national REDD+ programme: o The first phase aims to put in place policy and institutional frameworks for the implementation of REDD+ and addressing capacity needs for the establishment of a national Measuring, Reporting and Verification (MRV) system.
o The second phase involves the development of a national REDD+ strategy, the establishment of pilot sites and strengthening MRV capacities (towards Tier 2 and 3 level reporting).

o The third phase will be the implementation of the strategy, participation in a REDD+ carbon financing mechanism, and the establishment of an operational MRV and IPCC reporting system.
Fiji is currently in phase 2 of its national REDD+ programme and R-PP development and implementation supports the achievement of the targets set out in this phase while working towards successfully achieving the 3rd phase.
 Development of REDD+ Readiness and Emission Reduction Programme - Fiji had secured FCFP funding of $US3.8m to implement its R-PP (Readiness Preparation Proposal) from 2015 – 2019 with co-funding from the Fiji government and SPC/ GIZ Regional Programme Coping with Climate Change in the Pacific Island Region.

The status of achievement for REDD+ Project can be seen on page 21 of the annual report.
 Education and Training - The Training and Education Division 2017 - 2018 Operation Plan continued to be guided by the Fiji Forest Policy 2007 and similar to the previous years, it sets the directions for all the training and awareness activities.
Under Section 5.5.7 of the Forest Policy, Forestry Training and Education outline the following: “The Forestry Department will have training courses conducted for forestry personnel and resource owners in all aspects of sustainable forest management, timber utilization principles and practices, log scaling, and protection of environmental values”.
The Training Centre also worked on submitting documents to the Fiji Higher Education Commission to allow schools to be fully registered by the Fiji Higher Education Commission and this is expected to be completed before the end of 2018.

 Technical Skills Training - In comparison to the last financial year training, this year’s training has seen an increase in the number of participants attending the technical skills training.
A total of 760 participants from 26 different stakeholders Page 4 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary participated in this financial year compared to 381 participants from 15 stakeholders in the same period last year.

This has mainly contributed to the development that has taken place in the provinces particularly in the reconstruction of homes.
 Sustainable Forest Management (SFM) Training and Awareness - these continue to be conducted with the understanding that a well-managed forests with applicable conservation measures can deliver society’s needs in a sustainable way.

The Academic Section had planned for 4 trainings to be conducted for this financial year but due to limited staff capacity, only one training was conducted during quarter 1 of the financial year at Kilaka, Kubulau in Bua.
However, a three days awareness training was conducted in Waciwaci, Lakeba, and Lau fully funded by the Action Against Desertification (AAD) Project, under the Food and Agriculture Organization (FAO) of the United Nation.

 Forest Harvesting Training - One of the main outputs of the division under the Ministry Operation Plan aim is to promote quality training programmes for capacity building to communities and industry operators.
In trying to achieve this, the Ministry through the Training and Education Division conducted relevant Training Courses to Harvesting contractors throughout the Country.

A total of 15 training activities were completed by the section, an increase of 1 training compared to the same period last year.

Details on the training activities are provided on page 24 of the annual report.
 Forest Warden Training - The programme, which was mandated by the 2007 Forest Policy, enabled Forest Wardens to assist in the policing of Forest Laws.

A total of 28 Forest Wardens graduated with Certificate I in Forest Management & Conservation, and are now actively implementing their roles & responsibilities in their area of operation within their various districts.
During the year, a round of consultation was also held within the 3 Field Divisions to establish the responsibilities of the Forest Wardens within their respective divisions.

The meeting was attended by representatives from the Provincial Offices as well, as they customarily work closely with Forest Wardens.

 Forest Technician Programme- A total of 22 students graduated with an Advance Certificate in Forest Management from the Forestry Training Centre.
 Biodiversity Conservation and Protected Area Management Course - a Tailor-made workshop was delivered to National Trust of Fiji Rangers and Resource Owners from the 4th to the 8th of December at Nadave.

The workshop was funded by FAO and the Training Centre.

There was a total of 25 participants from National Trust of Fiji’s Reserve sites and they also comprised of some resource owners from these sites.

This tailor-made workshop was widely conducted by Non-Government.
 Certificate in Applied Woodcraft Technology TITC- 14 students were recruited to undergo a one-year Certificate in Applied Woodcraft Technology.

 Portable Sawmill Training- A total of 10 portable sawmill training was conducted during the period.

 Other Trainings - There were other trainings conducted during the period which targeted the timber industry: Timber Grading Training – Labasa; Timber Grading Training – Lautoka; and Treatment plant Operations – Nasinu.
 Village Rehabilitation - The training team also participated in the village rehabilitation programme which were conducted in; Ono, Lau; Nukuvou village, Kadavu; Navutulevu village, Serua; and Vatubalavu village, Nadroga Navosa.

Page 5 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Silviculture Research and Development- The Silviculture Research Division undertakes applied and silviculture research.
The overall research programme has 2 key research areas; the plantation forestry and the sustainable management of native forests including mangrove forests/ecosystem.

These programmes consisted of 5 sub-programmes with multiple activities.

The 5 sub-programmes are; seed technology, nursery practice, tree improvement, forest health, natural forest management.
 Seed Technology- The objective of this programme is to develop improved methods for harvesting, processing, testing, storing, retrieving and distributing seeds to ensure improved viability.

There was a great decline in the volume of seeds collected compared to previous years and this was due to the trail of destruction that was left by TC Winston in 2016 affecting most of the seed collection areas and seed stands.
Furthermore, the continuous rain period experienced in the beginning of 2017 affected the flowering and fruiting of tree species.

 Seed Collection- The seed collection team conducted seed collection on a monthly basis targeting forest areas in the Western and Northern Divisions.

Due to the high yield and quality of seeds attributed to its climatic condition i.e., favorable dry and hot conditions which greatly enhances fruiting and maturity resulting in high seed viability.
The total volume of seeds collected this year is 934.1kg of seeds comprising 2.8 kg (0.3 %) of Sandalwood seeds and 931.3 kg (99.7 %) of Indigenous species.

There was no mahogany seeds collected due to the 200kg dried weight at stock.

 Seed Processing - Some trees can easily be grown from seed but some may take a much longer time to propagate.

Seeds propagation can be a tricky process for several local tree species.

It is important to understand the different seed processing techniques.
Treating the seed properly is necessary before germination occurs and a seedling can be assured.

During the year a total of 275.74 kg of seeds was processed.

These seeds were processed and sowed.

These were Sandalwood species 1.44kg [1%], Indigenous species 195.4kg [71%] and Exotic species 78.9kg [28%].

 Seed Sowing - There are number of important reasons a seed cannot germinate under various conditions.
Two major causes for unsuccessful tree seed germination are hard seed coats and dormant seed embryos.

A small seedling can be very tiny and delicate when first germinated and often require much more care to ensure that it can successfully become a seedling.

As a result, a total of 47,052 seeds were sowed for germinant production during the year.

Sandalwood species 11,633 seeds; Indigenous species 83,386 seeds and Exotic species 2,402 seeds.
 Nursery Practice- In this financial year, the nursery section was mainly involved in production of seedlings activity which is an extension of the work started by the Seed Technology section in the nurturing of seedlings and connects/ supports the extension for the operations divisions in the afforestation and reforestation programmes.
The nursery practice team worked with optimum care and attention on seedlings during their critical juvenile stage, resulting in the production of healthy, vigorous seedlings mainly focusing on research and not on mass production.

 Transplant- A total of 6,751 germinants were transplanted from the germination room which was twice the target of what was achieved in the last financial year.
However, despite this achievement, we still encountered mortality at various stage of seedling development and this is attributed to adverse weather conditions that are unfavorable to seedling growth.

Out of the total Page 6 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary transplanted, 54% were distributed to planting activities, 30% were in stock at the nursery and a 16% mortality.
The mortality is equivalent to 1,071 seedlings and the section strives to reduce this to the range from 5 – 10% through effective management practices.

 Distribution- A total of 3,680 seedlings were distributed throughout the year.

Out of this, 1,922 (52%) were sandalwood seedlings, 1,112 (30%) indigenous seedlings and 646 (18%) exotic seedlings.

Graph of the Seedling Distribution is shown on page 28 of the annual report.
 Tree improvement- The objective of tree improvement is to identify, thin and develop superior stands for the purpose of supplying quality seeds for reforestation.

 Yavuna Trial Plot- Between 2017 and 2018, the Tree Improvement team conducted assessment at the Yavuna Research plot for three species of economic interests i.e., Rosewood, Teak and Acacia.

Of the 57 seedlings assessed at the Yavuna research trial plot, 18 Rosewood, 20 teak plants and 19 Acacia plants were assessed.
 Yaqia Trial Plot- A total of 116 plants were assessed at the research trial plot in Vaqia in Ba.

Of the 116 tree species under research, 34 were Rosewood plants, 39 Teak plants and 43 mahogany plants.

Graph 20 depicts the growth trend of Teak, Rosewood and Mahogany over the 2017-2018 timeframe.

 Alternative Species Trial at Vaqia, Ba- Details of the Species Trial at Vaqia, Ba is given on page 30 of the annual report.
 Forest Health - Forest Health is concerned with insects that affect the forest and forest products and its scope of research is to survey, collect and rear timber infesting insects, to liaise with timber inspectors and quarantine officers for imports of timber products and periodical trapping at ports of entry, plantations and nursery.

Some of the important insects affecting wood products are termites, powder post beetles, carpenter ants and the old house borer.
Diseases are also a major contributing factor to the health of the trees, forests and ecosystems.

Most common disease are Fungi, bacteria, misletodes or viruses that can also spread from tree to tree which causing deviation to the normal functioning of a plant.

The devastated effect of symptoms ranges from gradual decline of plant growth to defects in defected plant parts to outright mortality.

Yellowish colour foliage is an indicator of affected plants.
 Surveillance and Monitoring - this are an ongoing activity for forest health undertaken for assessing insect interceptions at various sites such as plantation forest, natural forest, trade borders and nurseries.
Modes of assessments varies; static traps are monitored every fortnight to note the insect assemblages at various site location, sentinel plants are placed at trade borders to monitor new pest and disease incursion for early detection before its widespread damage to plantation areas, light trapping is undertaken to monitor insect interception at night as not all insects are active during the day.
These will give us a clear illustration on insect assemblages and compare its occurrence, its density via night or day and at respective geographical locations.

o Static Trap - A critical component of our activity is meant to capture the occurrence of pests and disease in specific areas.

These include port of entries, plantations, natural stands and vegetation, seed production and gene conservation areas.

Details on pages 31 – 32.


Page 7 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary o Sentinel Plants - Sentinel plants placed at the Kings Suva Wharf serves as a control remedy for early detection of introduced pests and diseases to the country and to avoid its widespread damage to plantation areas.

Assessment undertaken together with the static traps assessment is done twice a month.
Plants with symptoms of tree disorders are replaced with newly potted and healthy plants.

Sentinel Plant species are Guava, Pine, Mahogany, Eucalyptus and Teak.

These plants are placed at ports of entry to determine early detection of pests and diseases outbreak and to avoid widespread damage to plantation areas.

o Pest and Diseases - Forest Health assessments are carried out to monitor pest and disease infestation to a 0–5-year-old plantations of both native and exotic.
For this period, 2 different sites were assessed; Sandalwood Gene Conservation Trial Plot at RKS and Wainiyabia Sandalwood Spacing.

The main objective of the activity is to survey and monitor insect pests and diseases occurrence on plantation areas and draw up a pest list analysis for insect pest and disease infestation on specific plantation areas.

The mode of assessment was a 100% assessment as all individual plants were assessed for pest and disease.
Infestation rate to all species is different taking into account the geographical location of the area including the weather patterns and the soil composition.

o Sandalwood GCA (RKS) - The objective of establishing the gene conservation site at RKS is to conserve the native yasi which is threatened by high compatibility for hybridization with the Santalum album and their hybrid.
Genetic diversity is essential for sustainable forest management as it permits tree species to adapt to new stresses such as disease and climate change, and allow tree breeders to continue achieving genetic improvement objectives.

o Wainiyabia Spacing Trial- The spacing trial was established in 2013 to determine the best possible spacing for Santalum species growth dynamic.

For the past 3 years forest health assessments shows that there was no severe threat to this trial as almost all plants are thriving.
Only in the case of plants growing under a thick canopy cover having increase humidity the plants were not vigorously growing.

 Research - The nursery nurtures both native and exotic timber tree species seedlings.

Most of the seedlings raised in the nursery are thriving well with overall mortality about 5% which is very low indicating high survival rate.

Majority of the seedlings are healthy with minor chewing, blight and decay or stains on their foliage.
A common disease on Santalum species are leaf spots and common pests are mealy bugs, white flies and scale insects.

Good nursery practice and management will minimize pest and disease in a nursery set up and will avoid the widespread damage to plantation areas.

Before seedlings are to be transferred for field cultivation it must be of the required standard in size and in health (free of pest and diseases) in order to withstand the outside temperatures.
o Seedling Transfer- All potted plant species are being inspected for pest and disease before transferring to outer islands.

This is a collaboration work with the Biosecurity Authority of Fiji (BAF) in trying to minimise pest and disease infestation from the main island being transferred to outer islands and vice versa.
Page 8 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary o Laboratory Work - Laboratory work is an ongoing activity including species identification and recording of insect pest collected from static traps, nursery and plantation assessments.

All insects’ specimen collections are stored at the entomology laboratory for future referencing and further authentication.
Specimen curation to preserve field collected specimens to catalogue what species exist in a certain area and to have reference specimens to compare to others in the future.

 Natural Forest Management - The Natural Forest management programme and research in Nakavu research trial plot seeks to conduct non-detriment findings, establish Diameter limit tables and sustainable logging practices for tree species in Appendix II of the CITES Listing.
The Diameter Limit Table (DLT) implementation guideline aims to train the Ministry of Forestry staff and other stakeholders (contractors and land owners) on the standard logging practice under the Ministry’s regulation for native tree species according to the species Diameter Limit.

Full details can be seen on pages 35-38 of the annual report.
 Sandalwood Development Project - There were a few new activities that were identified to be implemented at community level in order to continue promoting this development activity and most importantly, for the betterment of sandalwood activity in Fiji.

The total budget allocated for this capital project was $100,000.00.

The Sandalwood Development Project is a capital project funded and supported by the government for the past 8 years since its commencement in 2011.
The main idea of this development activity is to support the development at community level and at the same time, promote long term investments for our future generations.

 Method of Implementation - All the sites for project implementation and assistance were selected based from the lists of requests received at our office from various interested communities, individuals and stakeholders on sandalwood development activity.
A standard operating procedure was followed in the process of analysing the requested list before submitting to the Screening Committee for final approval of the request.

Sandalwood inventory and market consultation activity are two major new activities that commenced this year for this sandalwood development project.
The main objective of these two activities is to maintain and support this development activity at national level and ensure that the end point of the development is well structured by the market force and demand.

 Field Planting - This activity is mainly focused at community level for sandalwood establishment and planting assistance.
The sandalwood seedlings were all raised and nurtured in all our 3 divisional offices; North, Central & Eastern and Western Division before distributed to those targeted sites for planting.

The annual target for 2017 – 2018 is to establish 25 hectares of sandalwood at community level through community assistance and private partnerships with other interested stakeholders.

Details is given on page 39-40 of the annual report.
 Awareness - The main objective of this community awareness activity is basically to build up capacity and improve knowledge and skills on sandalwood technology at community level for the betterment of sandalwood development activity.

The main reason for doing this is to disseminate sandalwood information and technology to the general public and at the same time, promote the sandalwood commodity as part of the ministry’s development.
 Inventory - The sandalwood inventory activity was initiated by the Ministry of Forestry and it is one of the major activities of Sandalwood Development Project in 2017 – 2018 programmes.
The sites were randomly selected and visited by the Silviculture Page 9 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Research Division staffs with the assistance of Divisional Forestry Offices (DFOs); Northern, Western Central & Eastern, Provincial Offices, turaga ni koros’ and communities for data collection.
This inventory data is essential to fully support the idea of introducing sandalwood policy and regulation to improve sandalwood management and market stability in Fiji.

In the course of conducting sandalwood inventory activity, the number of sandalwood trees in all sites were recorded and marked with GPS for mapping purposes.
 Value adding and Market consultation- The main objective of this consultation activity was to engage all existing and known sandalwood buyers locally for the betterment of harvesting and marketing process.

Currently, there are no proper rules and regulations established to safeguard the sandalwood resource owners and the buyers.

This is one of the main reasons that led to the overexploitation of the sandalwood species in Fiji over the past decades.
Full details of the consultation is given on pages 41- 42 of the annual report.

 Discussion and Analysis - Since sandalwood field planting and capacity building activity is an ongoing activity from the past 5 years or so, it is found that the rate of implementation is much faster and easier as compared to the rest of the activities.

The main reason behind that is to get people and communities be aware of the activity and getting them interested to engage in this development activity for various purposes.
 Key findings: o The highest number of sandalwood populations planted and grown within the 3 divisions range from 1 - 5 years old.

This clearly shows that due to lack of knowledge and skills, people were not interested to engage in such development activity over the past decades.

o Most of the old sandalwood trees, 6 – 10 years old, are called mother trees and almost half of them were from existing population.

o Sandalwood species also have a fast regeneration rate.
From one mother tree, especially for wildings, an average of 3 young trees can be grown to the size of the mother tree if proper thinning and management are done in timely manner.

It is either from the fallen matured seeds or newly grown shoots from the roots.

o Sandalwood species grow very healthy and strong in most areas, but the basal diameter and height varies a lot.

o Low-cost implementation.


 Wood Property Section - With a budget allocation of $150,000 to carry out the “Research and Development for Wood and Non-Wood Species” project activities carried out included the research study on the effects of pine resin tapping on wood quality, the completion of service trial bure and the purchase of a mini Pellet Machine.
 Effects of pine tapping on wood quality- The study on the effects of pine resin tapping on wood quality continued during the financial year (August 2017- July 2018).

A main activity was the identification of an insect found on the research site.
The process of insect identification was initially carried out at the Silviculture Research Division, identifying the insect as a long Page 10 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary horn beetle (Cacodacnus herbridanus).

However, the Division could not confirm the species the insect belonged to and whether it fed on the plant or used it as a host only.
 Sawmilling and Grading- Upon observation, it was noted that it was easier to rip the tapped logs compared to the untapped ones.

The resin from the untapped logs made it difficult for the blades to work and they had to be cleaned regularly.

Whereas compared to the tapped log, the blades worked freely through the logs since there was less resin in them.

 Conclusion- Tapping has minimal effect on the pine timber itself as observed during the conversion process at the Nasinu Mill.
However, these are results of the trees that have only been tapped once.

While observing the research results, additional research is recommended to be conducted on trees that have been tapped more than once to obtain better and more firm results on the timber grades.

 Completion of Service Trial bure- The Service Trial Bure consists of various native species, including sa (Parinari insularum) which was used as the bure posts.
The intention was to test the natural durability (untreated and in ground contact) properties of sa.

In addition, the structural frames consisted of H3 treated dulewa species to test the species amenability and mechanical properties.

 Purchase of Mini Pellet Machine- GEMCO Energy Limited was the sole supplier of the mini–pellet machine.

The Mini pellet request was approved on March 12, 2018 and procurement processes followed with Ministry of Economy to obtain the machine.
With regards to the pellet research, the species that will be tested are dulewa, kuluva and sa.

Discussions with the University of the South Pacific had been initiated to assist the Ministry in obtaining the calorific value of these 3 species.

 Time Preservation Section- This Section carried out the inspection, licensing and monitoring of treatment plants.
(Full details are provided on pages 45-47 of the annual report)  Trade Assistance and Technical Advice- the 8 companies were given technical advice on how to get provisional sawmill licenses.

They all applied for portable sawmill licenses and were all given 6 months provisional approval.
The Sawmills were strongly reminded about the importance of submitting their monthly sawmill returns on time so that the Ministry can analyse and have a fair idea of the effectiveness of their operations, and also the local timber consumption and demand rate.

 Monitoring of Sawmill- The licensing procedures of sawmills involves the initial submission of an application, issuance of a Provisional License.

This allows the applicant six months in which to set up sawmill.
After the six months, an inspection is carried out to evaluate compliance with the requirements of and the Provisional License.

Once the inspection is satisfactorily completed, a full Sawmill License is issued, valid for one year.

This requires yearly renewal, pursuant to fulfillment of the conditions of the Forest (Sawmill) Regulation 1968.
 Support Income Generating Forestry Projects Through Subsidy & Other Financing Options  Administration of SCARF- a total of 17 scarf applications were facilitated by the division through HQ to the Fiji Development Bank.

The Ministry of Forestry fully supported the initiatives undertaken by the resource owners to venture into logging business to improve their livelihoods.
Page 11 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Forest Subsidy Programme- Under this programme with a budget allocation of $50,000, the Ministry was able to assist 6 people with the procurement of their specialised value adding tools and machines.

This creates opportunity for those with skills and potentials for wood carving in order to boost their production while also enhancing the quality of their products.
 Duty Exemption- The division continued to provide administrative support in facilitating the request from the industries through the provision of support letter for duty exemption.

This included purchasing of logging machineries from other countries.

Full details are provided on pages 48-49 of the annual report.

 Pine Woodlot Logging/ Maritime Assistance- the Ministry continued working in various pine schemes in Maritime zones and this included Cicia, Narocake (Gau), and Kadavu.
In this financial year, the Ministry focused on housing rehabilitations in the islands greatly affected by tropical cyclones.

Full details are provided on pages 49-50 of the annual report.

 Extension and Advisory Services- These services have been decentralised to the 3 Operation Divisions in the Northern, Western and Central/Eastern Divisions to ensure wider outreach all over Fiji.
The extension officers are responsible for the promotion of sustainable forests management through instituting afforestation and reforestation to stabilise degraded and logged over sites and expansion of forest cover.

 Reforestation of Degraded Forests Project - The project is an ongoing capital project under the Ministry of Forestry targeting the reforestation of degraded areas for the whole of Fiji.

With an annual budget of $500,000 and target of 500ha, 410.66ha were planted in this financial year.
The two major species planted are Mahogany and Mangroves and this is because we involved private land owners and also business houses for the Reforestation project and they are mostly for mangrove planting.

 Agro-forestry - A total of 9 agro-forestry models were established during this fiscal year.

This planting method was practiced as a source of livelihood for community, contour planting to prevent landslide together with Reforestation.
 Coastal Rehabilitation Work- Apart from planting inland the division also worked on protecting our shoreline by collaborating with NGO’s, communities, schools, government bodies, companies and church groups in planting mangroves.

A total of 40,000 mangrove seedlings were planted this year.

 Awareness & Nursery Establishment - A total of 16 awareness programmes were conducted and 4 community nurseries were established.

These nurseries were funded by the USP under the RESSCUE Project.
All participants in the 16-awareness carried out were certified with basic nursery management.

More than 450 people were certified during the awareness programme of which 15% were women.

Full details are provided on pages 51-52 of the annual report.

 Reforestation of Indigenous Species- This new project was allocated $250,000.00 this financial year with the objective to revive and restock forests with indigenous tree species.
The target for the year was to establish a nursery on the Queens highway in the Forestry Vunimaqo station and this was done successfully with the new nursery launched before end of the financial year.
 ITTO Project – Community based restoration & sustainable management of vulnerable forests of the Rewa Delta, Viti Levu - This project, which started in 2015, is one of the Ministry’s internationally funded projects with the aim of sustainably managing coastal Page 12 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary and mangrove forest areas.

The project is also supported by the USP, the Conservation International and the Secretariat of the Pacific Communities.
Full details are provided on pages 53 – 54of the annual report.

 Forest Parks Recreation Reserves - the Forest Parks & Forest Reserves section under the Forest Resource Assessment and Conservation division is mandated to look after the Colo-i-Suva Forest Park along with all the forest reserves in Fiji.

The section also administers over and manages seventeen (17) forest reserves and seven (7) nature reserves for a total of twenty-four reserves (24) under the Division.
 Colo-i-Suva Forest Park- The Colo-i-Suva Forest Park is a model for forest ecotourism which enhances the forestry sector through generating revenue for the Government from all the visitors to the park while also showcasing the natural beauty of forests with recreational values as well as its wildlife.

 Launching of the Nabalasere Ecotourism Forest Park - Park was launched by the Minister for Forestry, Honourable Osea Naiqama on Friday 29th September.

2017.
2017.

The completion of the park and improvement in forest trail was made possible through partnership between the Nabalasere village community and the Fijian government and was also supported under the Global Environment Fund under the Forest and Protected Area Management (GEF FPAM).
One of the objectives of the establishment of the Ecotourism Park was to support alternative income generating initiatives that would assist in the welfare and livelihood of the community members, while ensuring that the natural pristine forests and ecosystems are preserved.

 Forest Reserves and Nature Reserves- the Parks & Reserves section administers over and manages 17 Forest Reserves and 7 Nature Reserves under legal gazette.
These reserves have been identified as having a diverse range of wildlife and tree species, has areas susceptible to soil erosion and areas of public interest such as water catchment areas.

Details are provided on page 57-58 of the annual report.

 Encroachment- the Parks unit received some complaints from the public about encroachment into the forest reserves.

Some of the complaints received were regarding the Colo-i-Suva Forest Reserve, the Taveuni Forest Reserve and the Ravilevu Nature Reserves.
The staff conducted their monitoring and also awareness to the communities and villages living on the periphery of these reserves.
31st July 2018 ($) 506,735 9,980,390 2,714,004 13,300,906 351,660 31st July 2017 ($) 2,718,654 16,277,590 5,756,060 23,012,137 1,141,783 Total Revenue Total Operating Expenditure Total Capital Expenditure Total Expenditure TMA – Profit and Loss Statement – Timber Utilization Division (Total Income) TMA – Profit and Loss Statement – Timber Utilization Division (Total Expenses) Net Loss Financial Position 578,588 (226,928) 1,288,574 (146,791) Page 13 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary 1,857,002 TMA – Balance Sheet – Timber Utilization Division (Total Assets) TMA – Balance Sheet – Timber Utilization Division Total Liabilities Net Assets Total Equity Audit Opinion The Auditor has audited the financial statements of the Ministry of Forestry which comprise the Statement of Receipts and Expenditure, Appropriation Statement, Statement of Losses, TMA Manufacturing Account, TMA Trading Account, TMA Profit and Loss Statement and TMA Balance Sheet for the year ended 31 July 2018, and notes to and forming part of the financial statements, including a summary of significant accounting policies.
(338,272) (338,272) (111,344) (111,344) 2,195,274 2,096,730 2,208,074 Auditor’s Opinion (Office of the Auditor General) In Auditor’s opinion, except for the effects on the matters described in the Basis of Qualified Opinion paragraph, the accompanying financial statements are prepared, in all material respects, in accordance with the Financial Management Act 2004 and Finance Instructions 2010 and Finance (Amendment) Instructions 2016.

Basis for Qualified Opinion Operating Fund Account 1.
Expenditures amounting to $351,097 were not recorded in the Statement of Receipts and Expenditure for the year ended 31 July 2018.

This amount relates to unrecorded expenditures which were paid as accountable advance but were not cleared from the Revolving Fund Account as at 31 July 2018.

Consequently, the expenditure balance of $13,300,906 for the year ended 31 July 2018 is understated by $351,097.

2.
2.

There is an unreconciled variance of $850,831 between the Financial Management Information System (FMIS) general ledger and the Ministry's payroll report for both Established Staff and Government Wage Earners.

Consequently, I was unable to establish the accuracy of the Established Staff Government and Wage Earners balances recorded in the Statement of Receipts and Expenditure for the year ended 31 July 2018.

Trading and Manufacturing Account 3.


There is an unreconciled variance of $105,769 between the TMA bank reconciliation and the Cash at Bank general ledger balance.

Consequently, I am not able to confirm the accuracy and completeness of the Cash at Bank balance of $1,567,496 recorded in the TMA Balance Sheet as at 31 July 2018.

Page 14 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary 4.
The Ministry with the approval of the Ministry of Economy transferred a sum of $2.5 million in 2016 to the Trading and Manufacturing Activity (TMA) account from its operating budget for the purpose of salvaging logs after Tropical Cyclone Winston.

Although an amount of $569,014 was utilised for this purpose in 2018, deferred income account was not adjusted accordingly.

Deferred income balance for 2017 of $2,198,548 remained the same in 2018.
In addition, the cash at bank balance of $1,567,496 recorded in the TMA Balance Sheet was not sufficient to support the remaining Deferred Income balance of $2,198,548.

According to the page 13, the gender distribution for training provided to the staff is provided.

Gender Analysis 24 January 2022 Disclaimer This Annual Report Summary was prepared to assist the Standing Committee on Social Affairs in its review of the – Ministry of Forestry 2017 - 2018 Annual Report.
This summary should not be relied on as a substitute for specific advice.

Other sources and information should be consulted.

Whilst every effort has been made to ensure that the information is accurate, the Parliament of the Republic of Fiji will not accept any liability for any loss or damage which may be incurred by any person acting in reliance upon the information.
The Parliament of the Republic of Fiji accepts no responsibility for any references or links to, or the content of, information maintained by third parties.
For further information please email: Margaret Temo on Margaret.temo@parliament.com Page 15 of 15 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Annual Report Summary – Ministry of Forestry 2018 – 2019 Annual Report Standing Committee on Natural Resources Vision-“To be a Leader in Sustainable Forestry” Mission-“Sustainable Forests, Our Future” Background 2018 – 2019  The Ministry is a regulatory and service organisation responsible for the national forestry sector through the following functions: Organization Structure Acts in Place Major Highlights o Formulate and implement forest strategies and policies; o Provide and administer the regulatory function under the Ministry’s respective legislation and regulations; o Monitor and evaluate current strategies, policies and deliverables; o Develop and promote effective training, communication and awareness and extension advisory services; o Strengthen community and industry networks and support frameworks; o Maintain international bilateral and multilateral commitments and; o Undertake applied research for sustainable forest resource management practices and product development.
 The organization structure can be viewed on page 9 of the annual report.

 The legislative framework of the Ministry can be viewed on page 8 of the annual report.

 The Ministry utilized $14.87m (87.1%) for the implementation of its programmes and projects.
Some of the major achievements include:  The endorsement, without conditions, of Fiji’s Forests Emission Reduction Programme (ERP) Document and the Readiness-Package by the World Bank’s Forest Carbon Partnership Facility (FCPF) Carbon Fund;  Hosting of the Duke of Sussex Prince Harry at the Colo-i-Suva Forest Park and the official opening of the upgraded Park as part of Her Majesty the Queen’s Commonwealth Canopy;  Launching of Fiji’s initial national tree-planting campaign of 4 million trees in 4 years (4MT4Y) by the President of Fiji, His Excellency Major-General (Ret’d) Jioji Konrote;  Finalisation of the Ministry’s 13-Year Strategic Plan which is aligned to the United Nations Sustainable Development Goals and Fiji’s 5-Year and 20-Year National Development Plan; Page 1 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Signing of a Memorandum of Understanding (MOU) with the Ministry of Employment, Productivity and Industrial Relation to ensure that all forest-based companies comply with Fiji’s employment laws; and among other things;  Signing of a MOU with the Fiji National Provident Fund (FNPF) to also ensure that all forest-based companies contribute the mandatory funds for their respective employees.
 Fiji has a forest cover of 1.1 million hectares (ha) which accounts for 60% of Fiji’s landmass.

Natural forests account for 86.6% of the 1.1million ha forest cover, followed by softwood plantations at 6.8% and hardwood plantations at 6.6%.

 The forestry and logging industry contributed $26.1 million (0.2%) to Fiji’s real GDP in 2018.

 The forestry sector contributed $158.7 million (1.4%) to national real GDP by the end of 2018.
The major contribution of $68.6 million was from the sawmilling and planning of wood activity, followed by the forestry and logging industry, which contributed $26.1 million.

 Employment in the Forestry Sector - Due to the nature of the work in the forestry sector, a significant amount of informal employment is created in which people, particularly resource owners, are employed as casuals in forest-based operations.
Through its Annual Employment Survey, FBOS captures only the formal employment statistics, highlighting that a total of 880 people were employed in the sector in 2018.

 Exports - In terms of exports, and using the Harmonised Commodity Description and Coding System (HS2) classification adopted by FBOS, wood and wood products contributed $94.6 million in export revenue for the year 2018.

The major export commodity was woodchips, which generated $78.5 million.
Domestic exports of wood products accounted for 8% of total domestic exports.

 Forestry Programmes And Projects – details can be seen on page 11 of the Annual Report.

 Budget Allocation And Expenditure - A total of $17.07 million was allocated to the Ministry, of which $14.87 million (87.1%) was utilised for the implementation of the Ministry’s programmes and projects, leaving a balance of $2.19 million at the end of July 2019.
 Report On Performance - The Ministry finalised its Strategic Development Plan (SDP) this financial year which highlights the four strategic goals and six strategic priorities details stated on page 13.

The SDP is aligned to the National Development Plan (NDP) requirements and global commitments.

This Plan will guide the work of the Ministry until 2030, and initiatives channeled for implementation within the Ministry’s annual operational plans.
Strategic Priority 1: Cohesive legislation, regulation, policy, guidelines and compliance  Cabinet Submission - three Cabinet Submissions were made on the following topics: (a) Reducing Emissions and Enhancing Livelihoods in Fiji: Amendments to the Letter of Intent; (b) Development of the Emissions Reductions Programme document (ERP-D) “Reducing Emissions and Enhancing Livelihoods in Fiji and (c) 4 Million Trees in 4 Years Initiative.
 Finalisation of Forest Bill and Relevant Regulations - in this financial year, the Ministry continued to pursue the finalisation and endorsement of the Forest Bill [Bill No.

13 of 2016], which was a review of the Forest Act 1992.
The Bill is the outcome of a Page 2 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary number of stakeholder consultations, with the view of revising the 1992 Forest Act to include recent developments within the Forest Sector in addition to supporting the full implementation of the Fiji Forest Policy 2007.

The Bill has been read twice in Parliament.

Once the Bill is endorsed, relevant regulations already drafted will also be finalised.
 Rural Forest Fire Strategy - a draft strategy was developed with the assistance of the Pacific Community (SPC) and the relevant stakeholders such as the Ministry of Agriculture.

 Timber Export and Import Guideline - the guideline was completed and disseminated.
 National Plywood Standard - With budget allocation of $20,000.00, a consultant was engaged during the financial year to undertake a feasibility study to determine the need to either develop a totally new standard or adopt the Australian Standard currently used as a guideline for processing local plywood.

A feasibility study report was developed and submitted to the Ministry by the consultant.
 Strategic Development Plan - the Ministry’s SDP, which was developed in consultation with relevant stakeholders, was finalised and published this financial year.

 Mangrove Management Guideline - a draft guideline was developed on the work and lessons learnt from the six communities/project sites of the International Tropic Timber Organisation (ITTO) project.

This Guideline was developed in collaboration with the Pacific Community (SPC).
Strategic Priority 2: Enhance sustainable forest management (SFM) frameworks and implementation of SFM practices  Forest Change Analysis - 4 officers travelled to CSIRO’s Data61 Facility in Perth, Australia, where they were trained in forest change analysis.

The training was conducted by a World Bank Consultant and a CSIRO Officer.

Officers were introduced to manual cloud masking and classification of forests using training vectors.
The software used in this training were ERMapper, RStudio and Python Scripts in Command Prompt.

The officers successfully classified and cloud masked Viti Levu images from 2005 to 2017 during this exercise.

 Harvest Plan Maps - five plan maps were produced with a total revenue of $1,098.90.

Harvest plan by area (hectares) is illustrated in Graph 4, on page 16.

 Mapping Requests - 21 mapping requests were attended to and successfully completed.

This included both internal and external requests.


 Volume Estimates - 44 volume estimate applications were received and attended to.

 Permanent Sample Plots (PSP) - The PSP team undertook the fourth round of measurement of the PSP plots in the two major islands and Taveuni.

28 plots were measured, of which 16 were in Vanualevu and 12 were in Vitilevu.
Page 3 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Inventory - Pine inventories were conducted for Kadavu and Lakeba to determine the standing volume of forest areas.

118 plots were measured in Lakeba and 11 pine schemes in Kadavu.

Two other inventories were conducted for Mataqali Vatuvula and Savura Dam.
 Forest parks and reserves - Upgrade of Colo-i-Suva Forest Park - Major renovations were conducted this financial year and includes the following: Upgrading of park entrance and construction of security booth; Renovation of “Bures”; Construction of toilets, bathrooms and changing rooms; Picnic area with tables and benches; Track repairs; Construction of steel railings; and Installation of rubbish bins.
 Colo-i-Suva Visitor Numbers and Revenue Generated - a total of 40,291 visitors visited the Colo-i-Suva Park by end of July 2019, generating a total revenue of $101,741.00.

 Maintenance, Management of Forest Parks and Reserves - Boundary maintenance was carried out in 5 forest reserves.

Boundary maintenance is a core output for the Division in ensuring clear demarcation of reserve boundaries under its lease conditions.

It also includes marking of all forest and nature reserves boundaries.
 Law Enforcement – licensing, monitoring and compliance  Harvesting Operations - 142 harvesting licenses (right licenses) were issued: 45 licenses for Northern Division; 63 licenses for Central Eastern Division; and 34 licenses for Western Division.

Total log volume produced in 2018-2019 financial year amounted to 439,780.0 m3.

 Sawmilling Operations - 47 sawmill licenses were issued (19 static, 28 portable).
 Sawmill Return by Division - A total of 156,849.24m3 of Log input, with 66,173.33m3 output, the average recovery rate stood at 42%.

 Treatment Plant Operations - Out of the 27 treatment plants in Fiji, 19 were licensed for operation this financial year.

1,267 timber samples were analysed by the Ministry which generated a total revenue of $23,312.80.

 Treated Timber Samples and Hazard Classes – details on page 21 of the annual report.
 Monitoring, Compliance, Surveillance - two rounds of national monitoring of harvesting operations were conducted under the MCS project to ensure compliance as measured against the FFHCOP 2013.

Divisional quarterly monitoring and inspections were conducted for all sawmills, treatment plants and harvesting operations.

Improvement notices were issued where necessary and non-renewal of licenses were relayed to companies that were non-compliant with relevant regulations.
 Support for Maritime Operations - Pine woodlot logging project – four portable sawmills were purchased, inclusive of fuel, oil and preservative chemicals.

Maritime pine project – two vehicles were procured (one 4 x 4 vehicle and one 7-ton logging truck) to assist in maritime operations.
Page 4 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services  Reforestation and afforestation Annual Report Summary  Mass Tree Planting Initiative - With a target of 800 hectares for the Reforestation of Degraded Forests (RDF) Project, a total of 684,417 seedlings (1,632.31ha) were planted by the end of July 2019.

This financial year, The 4 Million Trees in 4 Years (4MT4Y) initiative was launched in January 2019 by the President, His Excellency, Jioji Konrote.
 Agroforestry - Four agroforestry plots were established in the following locations: Vuma Village, Levuka; Dawasamu, Secondary School; Vunivaivai, Nakelo; and Yale Kadavu collaboration with USP.

 Action Against Desertification (AAD) Project - Under this project, the Ministry worked with FAO and project partners to achieve the project objectives.

Details on page 24 of the annual report.


 Research and development - silviculture research  Seed Collection, Processing and Sowing for Seedling Production - A total of 1,243.1 kg of seeds were collected and processed by the silviculture research division.

Out of these processed seeds, 97,200 seeds were sowed for seedling production.
 Forest Health - Biological Rapid Assessments (BIORAPS) were undertaken to report on the baseline assessment and current state of the Biological Diversity within the areas of natural forest reserves designated for the purpose of protection for biodiversity conservation, as consented to by the landowning communities.

This year BIORAPS were conducted by the forest health team in the following areas: o Nadarivatu - This assessment was done in collaboration with USP-IAS.
The result indicates insect diversity in the different trapping methods used.

It was noted that the insect order Coleoptera was mostly collected from leaf litter, rather than from the normal method of collection such as light trap.

o Upper Tuva Catchment - BIORAPS results from the upper Tuva catchment area shows the types and abundance of insects present that are known to be good forest health indicators.
 Tree Improvement – Assessment of Trial Plots - Assessments were conducted for the following trial plots and reports were compiled accordingly: a. Yavuna Nausori Highlands – Sandalwood and mixed species; b. Drasa Alternative Species Trial – Eucalyptus, Pine and Acacia; and c. Vaqia, Ba – Mixed species.

 A new Agarwood research trial plot was established with the Fiji Women’s Growers Association at Toga, Rewa, in November 2018.

A total of 54 Agarwood seedlings were planted in rows of two.
Treatments of NPK, Aglime or Organic manure were applied to each two-row planting.

The results of the assessments conducted in February 2019 are shown on page 26.

 Natural Forest Management – Nakavu Operation- This is the third year of operation at the Nakavu Pilot Project, based on the volume and species recovery after 22 years of logging.
The different logging intensities were still maintained, but the new diameter limit table to be adopted will be based on the log volume derived from the first logging rotation.
This year, the team worked on the following activities in the various compartments in Nakavu: Harvesting plan for compartment 10 Page 5 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary was finalized; Carbon inventory for compartments 1 and 3 was completed; 20 PSP recording and maintenance were completed for compartments 1, 2, 5, 6 and 10; DLT Monitoring field training for Central / Eastern division was conducted in November 2018 and Harvesting in compartments 11 and 12.
 Research Consultancy and Seed Bank - Two consultants were engaged by the Ministry to conduct a review of the work of the Silviculture Research Division and the need to develop a seed bank or tree seed centre.

The review was completed this financial year and the findings and report were presented to management.
 Sandalwood Project - With a $100,000 budget allocation, the following activities were conducted by the Sandalwood Project team: o Sandalwood market survey and consultation; o Sandalwood inventory programme and registration of farmers; o Sandalwood planting, and o Monitoring of project sites.
 Research and development – timber utilisation  Research on Lesser Known Species - Applied research, studying the properties and potential uses of lesser known species (LKS) continued during the financial year with a total of 31 species identified in Nakavu.

With a total budget of $150,000.00, a total of 8 species were extracted out of the 31 species identified.

Further details on page 27.


 Wood Pellet Production and Research on Calorific Content of Pellets - One Mini pellet machine was procured this year.

Pellets were tested for their calorific contents at the University of the South Pacific.

In addition to the calorific value analysis, the students also conducted research on the firewood properties of Kauvula.

The firewood research is still in progress as the research team in Nasinu is currently drying Kauvula to the required moisture content levels.
 Procurement of Metal Tape Embosser Machine - The Metal Tape Embosser machine was procured from Australia in November 2018.

The machine enables tagging to be done on metal strips and these strips are attached to timber samples which are placed in trial sites for testing and assessment.

A total of 160 stakes were tagged using this new machine.
 Upgrade of Research Exhibition Room- The exhibition room in Nasinu was renovated and improved, as it is a popular field visit site for many educational and vocational institutions, as the displays portray the various timber processes, from harvesting, sawmilling, treatment, to construction and various timber products.

Display boards with summaries of sectional roles were also included.
In addition to this, worn out displays were removed, and some of which have been repaired and re-polished by the workshop staff.

Upgrading of the exhibition room will continue in the next financial year.

Strategic Priority 3: Capacity Building (Ministry and Stakeholders)  Forestry technical trainings - Accreditation of Forestry Training School, Technical Forestry Training, Advanced Certificate in Applied Woodcraft Technology and Industrial Attachment for Students.
Details on page 29 of the annual report.

Page 6 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary  Corporate training - Local Training - 30 different local trainings were conducted and were attended by an average of 11-12 staff for each training.

These were trainings identified through the Civil Service Reform Unit of the Ministry of Civil Service, local institutions and mandatory training under the TPAF Grant and Levy Scheme.
Overseas Training - 46 officers attended overseas training this financial year.

Strategic Priority 4: Stewardship  Sustainable trade environment  Trade Facilitation - The following trade licenses/permits were issued by the Ministry: a.

196 export licenses were issued, with a total value of FJ$65.8 million.

Pine chips were the biggest contributor, with a value of $47.6 million; b.

176 import permits were issued, with a total value of FJ$7.8 million.
 Business and investment Guideline - The 2018-2019 Forestry business and investment guide was published and disseminated to all Divisional offices, stakeholders and the general public who visit the forestry offices, trade show booths and other interagency shows/consultations.

 Trade Assistance and Support for Duty Exemptions- Four companies were assisted with the provision of technical advice and assistance with their applications for a license.
12 companies were issued with support letters from the Ministry to assist their applications to Ministry of Economy and Customs Office for duty exemptions.

 Seed Capital Revolving Fund (SCARF) Programme - 20 applications were received by the Ministry for vetting.

12 applications were submitted to the Fiji Development Bank for further vetting and final decision.
 Climate change adaptation and mitigation  REDD+ Readiness Activities - The study on Carbon Rights, which evaluated the current status of carbon rights in the country and suggested options as to who owns the carbon, and Benefit Sharing Mechanism, which assessed the existing systems of benefit sharing and identified a possible mechanism for REDD+ benefit sharing, were both completed this financial year.
 Global, regional & national partnerships  Memorandum of Understanding - 3 MOUs were signed locally o MOU with the Ministry of Employment, Productivity & Industrial Relations (MEPIR) was finalised and signed on 13 December, 2018. o MOU with Fiji National Provident Fund (FNPF) was signed on 5 June, 2019.

These partnerships will ensure information sharing, enhance monitoring and strengthen compliance level of all forest operations.
o The third MOU was between MOF, Fiji Development Bank (FDB) and iTaukei Affairs Board (TAB) sealing their partnership for tree planting and adopting a community from each Division.

 Implementation of MOU with Indonesia - Wood carving training was sponsored by the Indonesian Government representatives who visited the country as part of the implementation of the MOU with Indonesia.
A total of twenty wood Page 7 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary carvers from the Western Division participated in the programme, with the guidance of two wood carving experts from Bali, Indonesia.

Participants were also provided with wood carving tools to assist them with their businesses.
 Livelihood assistance  Housing Rehabilitation - Due to the devastating impacts of a series of tropical cyclones experienced by Fiji, the Ministry worked with affected communities to utilise their forest resources to rebuild and repair their homes.
The following results were achieved in this financial year: Kadavu – 86 housing structures produced; Gau – 17 houses (9 complete houses and 8 extensions); Six other islands/villages were also assisted, including Koro Island, Lomaiviti, Onoi-Lau, Lau, Tubeinasolo, Ba, Navutulevu, Serua , Dogotuki, Macuata Namalata, Kadavu.

Strategic Priority 5: Forest Financing  There was no initiative/activity planned for this strategic priority for the financial year under review.
Strategic Priority 6: Organisation Effectiveness  The Ministry had a staffing strength of 242 (85.8%) out of the 282 approved posts.
Financial Position 21 January 2022 Total Revenue Total Operating Expenditure Total Capital Expenditure transferred Total Expenditure TMA – Manufacturing Account – Timber (Cost of Goods Utilization Division Manufactured to Trading Account) TMA – Trading Account – Timber Utilization Division (Gross Profit/(Loss) transferred to Profit and Loss Statement) TMA – Profit and Loss Statement – Timber Utilization Division (Net Loss) TMA – Balance Sheet – Timber Utilization Division (Total Assets) 2019 ($) 553,774 11,819,146 2,513,766 14,873,741 208,159 (39,536) (324,607) 1,532,481 2018 ($) 506,735 9,980,390 2,714,004 13,300,906 92,910 351,660 (226,928) 1,857,002 Page 8 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Auditor’s Opinion 2,195,360 TMA – Balance Sheet – Timber Utilization Division (Total Liabilities) TMA – Balance Sheet – Timber Utilization Division (Total Equity) Opinion The Auditor has audited the financial statements of the Ministry of Forestry (Ministry) which comprises the Statement of Receipts and Expenditure, Appropriation Statement, Statement of Losses, TMA Manufacturing Account, TMA Trading Account, TMA Profit and Loss Statement and TMA Balance Sheet for the financial year ended 31 July 2019, and notes to the financial statements, including a summary of significant accounting policies.
In the Auditor’s opinion, except for the effects of the matters discussed in the Basis for Qualified Opinion paragraphs, the accompanying financial statements of the Ministry are prepared, in all material respects, in accordance with the Financial Management Act and Finance Instructions 2010.

2,195,274 (662,879) (338,272) Basis for Qualified Opinion Operating Fund Account 1.

Expenditures totaling $302,301 were not recorded in the Statement of Receipts and Expenditure for the year ended 31 July 2019.
This amount relate to unrecorded expenditures for accountable advance but were not cleared from the Revolving Fund Account as at 31 July 2019.

Consequently, total expenditure of $14,873,741 for the year ended 31 July 2019 is understated by $302,301.

2.

There is an unreconciled variance of $1,025,547 between the FMIS general ledger and the Ministry’s payroll report for both Established Staff and Government Wage Earners.
Consequently, Auditor was unable to establish the accuracy of the Established Staff Government and Wage Earners balances recorded in the Statement of Receipts and Expenditure for the year ended 31 July 2019.

3.

There is an unreconciled variance of $167,998 between the FMIS general ledger for revenue received from Native Timber Measurement and the report extracted from the Timber Revenue System.
Consequently, Auditor was unable to establish the accuracy of the revenue recorded under Native Timber Measurement of $318,442 in the Statement of Receipts and Expenditure for the year ended 31 July 2019.

4.

Included in the FMIS general ledger are accounts receivable of $677,339, accrued expenses and deferred income of $1,739 and accounts payable of $5,767, which had been carried forward from previous years.

The Ministry was unable to provide appropriate documentations to support these balances.
As a result, Auditor was unable to verify the completeness and Page 9 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary accuracy of the balances and also unable to determine whether any adjustments might have been necessary and any corresponding adjustments to the elements making up the statement of income and expenditure.

Trading and Manufacturing Account 5.


There is an unreconciled variance of $112,699 between the TMA bank reconciliation and the general ledger balance for Cash at Bank.

Consequently, Auditor not able to confirm the accuracy and completeness of the Cash at Bank balance of $1,338,610 recorded in the TMA Balance Sheet as at 31 July 2019.

6.
6.

The Ministry, with the approval of the Ministry of Economy, transferred a sum of $2,000,000 in 2016 to the Trading and Manufacturing Activity (TMA) account from its operating budget for the purpose of salvaging logs after Tropical Cyclone Winston.

Although funds amounting to $228,886 was utilised in 2019, deferred income was not adjusted and the balance of $2, 198,548 remained the same since 2017.
The cash at bank balance of $1,338,610 recorded in the TMA Balance Sheet was not sufficient to support the remaining deferred income balance of $2, 198,548.

7.

The Ministry recorded maintenance and operation expenses of $285,071 in the TMA Profit and Loss Account, which included the cost of a logging truck of $218,349.

As a result, the maintenance and operations expenses recorded in the TMA Profit and Loss Account is overstated by $218,349 for the year ended 31 July 2019.

8.
8.

The Ministry recorded Accounts Receivable of $73,857 in the TMA Balance Sheet as at 31 July 2019.

The Ministry was unable to provide appropriate documentations such as debtors’ aging listing, subsidiary debtor’s ledgers and account reconciliation statements to support the accounts receivable balance.
As a result, Auditor was unable to verify the completeness and accuracy of the balance and unable to determine whether any adjustments might have been necessary to the elements making up the TMA Profit and Loss Account and TMA Balance Sheet.

Emphasis of Matter Auditor draws attention to the following: • Trading and Manufacturing account continues to operate at loss since 2010 which has resulted in excess of liabilities over assets of $662,879 in the TMA Balance Sheet as at 31 July 2019.
• Note 5 to the financial statements states that TMA sales of $144,086 included a reimbursement of TMA wages of $55, 718.

Auditor opinion is not modified in respect of these matters.
Page 10 of 11 PARLIAMENT OF THE REPUBLIC OF FIJI Research and Library Services Annual Report Summary Other Matter Non-compliance with the requirements of the Finance Manual in relation to procurement of goods and services, retirement of accountable advance, cash management, carried forward balances and unsubstantiated Accounts Receivables balances have recurred despite the recommendations to improve.
 On pages 29 & 30 of the annual report, Capacity Building provides the gender breakdown for the Forestry technical trainings, and the local and overseas trainings attended.

Gender Analysis Disclaimer This Annual Report Summary was prepared to assist the Standing Committee on Natural Resources in its review of the Ministry of Forestry 2018 – 2019 Annual Report.

This summary should not be relied on as a substitute for specific advice.

Other sources and information should be consulted.


Whilst every effort has been made to ensure that the information is accurate, the Parliament of the Republic of Fiji will not accept any liability for any loss or damage which may be incurred by any person acting in reliance upon the information.

The Parliament of the Republic of Fiji accepts no responsibility for any references or links to, or the content of, information maintained by third parties.
For further information please email: Shrutkeertee Devi on shrutkeertee.devi@govnet.gov.fj Page 11 of 11