Press Release Detail

The 2021-2022 revised budget builds on the momentum of increased economic activity following the re-opening of Fiji’s borders in December 2021.

For the Ministry of Forestry, the revised budget means an increase of more than half a million dollars which will boost operational infrastructure and processes.

The Ministry will also continue to support the two major forest industries - the Fiji Hardwood Corporation Ltd (FHCL) and Fiji Pine Ltd (FPL) in their efforts towards growing the economy while ensuring sustainable environmental management and restoration. 

Digitisation of Forestry’s Registration Platforms

In supporting Government’s on-going efforts to improve the ease of doing business, the Ministry of Forestry is digitizing all its registration platforms. The transition from manual to online applications will ensure greater efficiency, transparency, accountability and effectiveness in service delivery. This technological innovation is not only convenient for forest industry stakeholders but it also ensures that the wheels of commerce keep turning in the sector.

The chaos of COVID-19, disrupted not only lives but businesses as well. Part of the Ministry’s strategy to operate within the new normal of the global pandemic meant amending operational processes to facilitate business. The digitisation of the Ministry of Forestry’s registration platforms is a major component of this strategy.

The Ministry’s online export and import licensing systems was rolled out in June 2020, thus ensuring that licenses can be issued within 48 hours. Since the introduction of the online licensing system, over 800 export licenses with a value of over F$146 Million have been issued and nearly 600 import permits have been approved.  

These are good indicators of the success of the system not only for the Ministry and forestry stakeholders but also for the economy as 74% of the 2020 export revenue amounting to F$76 million was generated within five months since the online system was launched. The online system is not only convenient but it is increasingly facilitating a more effective monitoring of harvesting operations, which will in turn also help curb illegal logging.

Building on the success of the online export and import licensing systems, the Ministry has added to this portfolio with the launch of an online forest harvesting license system by the Prime Minister and Minister for Forestry Honourable JV Bainimarama at the 2022 International Day of Forests celebrations on March 21.   

During the launch, the Prime Minister also commended the timber industry, which he said has been a significant contributor to the national economy, especially at the height of the economic downturn caused by the COVID-19 pandemic.

The next step in digitisation will be rolled out by 31 July 2022 and this will include a revamped Timber Revenue System (TRS) that will assist the Ministry with revenue collection and auditing, thus facilitating greater accountability and financial compliance.

Forest Subsidy on Value Adding Machines

The revised budget has re-introduced the forest subsidy scheme to support cottage industries. A $30,000 allocation will help establish small scale forestry value adding businesses such as wood carving and furniture making using various parts of high value trees such as mahogany and lesser known species. Specifically, the budget will help purchase tools including machinery.

The cottage industries empower forest-based communities to generate revenue and contribute to economic recovery while reducing the waste of forest resources. Government introduced the scheme in 2015 and had to suspend it in 2020 when funds had to be re-deployed to assist with COVID-19 operations. About 19 individuals have been assisted through this scheme thus far. Interested parties can apply for this subsidy through an Expression of Interest (EOI) that will be advertised this month.

Support for the Industries and Outer Islands

The Ministry was allocated $13.2m in the 2021-2022 Budget and received an increase of $595,439 in the revised budget. The increase will support the ease of doing business within an improved digitized platform allowing the Ministry to better facilitate the needs of the forest industries and the entire sector. This aspiration is further supported with the conclusion of FPL’s  mix certification of its processing facility under the Forest Stewardship Council. The mix certification will enable FPL to process logs from non-certified private plantations including the islands in the maritime zone such as Kadavu.

The Ministry will continue to strengthen efforts on resource development, sustainable, production, restoration and environmental management with continuous research and development to improve the sectoral performance, lives and livelihoods of our communities and overall growth nationally, and towards the United Nations sustainable development goals.

3-Year Economic Recovery Plan

At the height of the COVID-19, which significantly affected the tourism industry - Fiji’s largest

revenue-generating sector - the Ministry collaborated with the stakeholders in the forestry sector to

develop a 3-year economic recovery plan targeting a contribution into the national economy of not

less than $400M. The plan aimed to progressively increase the sector’s contribution to Fiji’s gross

domestic product with the first year (2021-2022) target set at $123.9 Million. As of March 2022, the

sector has generated $113.6m or 92% through both domestic and export production and sales. The

revised budget will enhance the sector’s overall performance.