Fiji Pine Strengths Consultations & Benefits to Landowners
“The
journey of a thousand miles begins with a single step”. This is the motto
that drives the Fiji Pine Limited as the company engages with landowners for
its community awareness and consultation programmes. Through these community engagements,
the company has been able to restore the relationship that had been marred over
the years through misrepresentation and abuse, and provide
correct information regarding the Industry and the financial returns for
landowners.
During these consultations, the company presents in details the journey it had taken from the inception of the Industry, to the new reforms undertaken to ensure the viability of the business and it’s Vision which is centred towards the long term sustainability and sustained returns to the landowners.
According to Fiji Pine CEO Vimlesh Kumar, “there were many structures that were initially formed between Fiji Pine Limited and our landowners with the purpose to serve them effectively, instead it only benefited people who held positions in these institutions. Appointments were not made based on merits but on personnel preference. This affected how these landowning institutions operated and the biggest victims were our ordinary landowners who were not receiving the correct share of returns. Through the intervention of Fiji Pine Limited, all forms of abuse have been removed and the institutions have been re-aligned to the Fiji Pine Groups Vision”.
The consultation and awareness work is carried out on a weekly basis for all the landowning units spread throughout Fiji Pine’s Forest areas in North West Forest (Nabou/Nadi), South West Forest (Lololo/Ra) & Northen Regions (Bua/Macuata). The recent number of attendees is an indication of the support and impact that the Industry is now making on the community’s lives.
Part of the returns to the Fiji Pine landowning
institutions include:
- Land Rental- the Company pays an annual rate of $13/ha since 2015 and this will be increasing to $14/ha in January 2022
- - Stumpage payment - the Company pays 12% of net revenue (revenue less
direct cost of logging, cartage and roading).
This is a direct payment made to Landowning Owning Units through
TLTB. TLTB does not deduct poundage from
stumpage after negotiations were made 6 years ago.
- - Landowner Community Development Fund (LCDF)- This fund is set aside by
the Company to assist in the Community based projects in villages. Its main focus is on education assistance as
it believes that education will make a real impact on the livelihood of its
landowners. The Company reserves 5% of
Gross revenue from the harvesting carried out in each Forest to assist in this
form of development. All landowners
qualify for these funds irrespective of the acreage of area that is leased to
the Company.
- - Lease Security Bonus Payment- This is a bonus
payment made based on the Company’s performance.
1.
Landowner consultations are an integral part of
Fiji Pine’s operations and it will continue to engage in this aspect of our
business to ensure that we are connected to the landowners.
Landowner Community Development Fund
The company has invested $1.4 million in community
projects for the Landowner Community Development Fund for the year 2021.
These projects carried out for the villages include the rebuilding of houses that were damaged through cyclones, building of community halls, rural electrification projects (solar systems, generators, electrical wiring of community halls), upgrade of schools and study equipment for rural based schools water and sanitation.
The community projects are really making an impact in the remote areas leased by Fiji Pine Limited where they are now having access to proper sanitation, light and drinking water. A recent solar project carried out for the Village of Natokolau in the Province of Kubulau, enabled 15 families to have access to electricity and making a positive impact on the school children who will now be studying under the proper light.
The summary of assistance provided for the landowner’s are provided below;
Forest Based and Forest Trust Levies have been reformed and is now consolidated into the Landowner Community Development Fund. This is purely for landowner community Development with education as the key priority. Fiji Pine
Limited is a key stakeholder for the forestry sector and the Ministry of
Forestry commends them for the work that they do with the communities,
landowning units and the positive impact that this has on economic growth.