Bkk Post-Log haulage ban slashes FI

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Subject: Bkk Post-Log haulage ban slashes FIO revenue

Bangkok Post, July 2, 1999.
SALWEEN FOREST

Log haulage ban slashes FIO revenue
State firm may be forced to shut down

Uamdao Noikorn

The Forest Industry Organisation might be forced to close down for good
because of the ban on the hauling of all logs from the Salween forest,
managing director Aduladej Chakrabandhu said yesterday.

Supplies of its top-selling product, teak, would be cut drastically and
suddenly as a result.

Already hard-hit by the closure of forests to logging 10 years ago, which
cut its income by 70% , the FIO might have to shut its doors unless there
was government intervention.

"All of our money-making channels seem to be closed. I see no reason why the
FIO should stay," Col M.R. Aduladej said.

The organisation was set up to oversee supplies of concessioned logs, but
moved to seized logs when the forests were declared closed.

M.R. Adulaadej said the FIO's annual income would probably fall by three or
four million baht as a result of the ban.

The FIO makes about seven million baht a year, but has been in the red for
five years.

"The organisation shifted its focus from managing natural wood to
commercially-grown wood quite some time ago offset the loss," M.R. Aduladej
said. "I just hope it helps us get through."He understood the army's
decision to ban removal of all logs from the Salween was made in good faith
after earlier attempts to crack down on illegal logging failed following the
exposure of a major scandal last year.

Forestry chief Plodprasop Suraswadi yesterday confirmed the closure of the
Salween forest but said it would not play a part in any decision whether to
allow log imports from Burma.

Four logging companies last year applied to import "leftover" logs from
Burma.

A decision has been put on hold pending confirmation from Burma that the
logs were left over.

Mr Plodprasop agreed that such an abrupt ban would hurt the FIO badly. Asked
if it would be better to adopt stricter controls over log transportation,
the director-general said he would rather "let the logs rot there".

"Frankly I don't know which log is Burmese and which is Thai," Mr Plodprasop
said.