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Wood firms threatened by hiked rates
2007-08-13 08:58:09
By Peter Tindwa
Timber, paper and power poles firms in Mufindi face possible closure due to hiked forest block charges at state-owned forests.
Speaking to The Guardian by telephone from Mufindi yesterday, some producers said the newly imposed registration prices might force them to close shop.
`The rates will bring about a shaky market for our products. There is a need to review the charges,` said the coordinator of the Association of Timber Producers (SAFIA), Julius Mwakalinga.
Stakeholders have asked President Jakaya Mrisho Kikwete to intervene so as to rescue the timber industries and their workers.
Mwakalinga said the Ministry had increased registration fee of a timber firm from the previous 200,000/- to 600,000/- regardless of its size.
He said the 250 small-scale timber firms in Mufindi provided employment to over 80,000.
He said some of the firms were closing shop for similar reasons.
According to Mwakalinga, a single forest block was previously charged at either 2.5m/- or 3.4m/-.
`Under the newly imposed prices, a similar block is sold at 18m/- to 25m/-. We don't like to battle with the government. Our concern lies in the unrealistic retail prices for timber and other forestry products,` he said.
Another stakeholder Hassan Kitindo complained that the new charges would affect local firms as these would fail to meet export orders.
`Our companies are at risk of being taken over by foreign firms,` Kitindo said.
Mwakalinga named Mufindi Paper Mills Limited, Sao Hill Industries Limited, Mufindi Wood Poles Plant and Timber Limited as some of the firms that felt threatened by the move.
Meanwhile, the Iringa Regional Commissioner, Hajjat Amina Said, is holding discussions with timber producers.
Executive Director of Sao Hill Industries Mwaniki Ngibuini said yesterday that their association had sent an official letter expressing their concerns to Minister Maghembe.
The chairman of a non-governmental organization dealing with environmental conservation, Godfrey Mosha said, they had not reached consensus with the government on the new rates.
Mosha said a single piece of timber previously sold at 1,500/- and 2,900/- would now sell at 9,000/- and 12,500/- respectively.
Efforts to get comments from Minister Maghembe yesterday proved futile as his mobile phone number was unreachable.
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