Huge benefits are expected with the new Fiji mahogany licence fee and payment structure in place which is also expected to assist Fiji Hardwood Corporation.
Prime Minister, Commodore Voreqe Bainimarama revealed that despite the multimillion dollar grants given by the government to Fiji Hardwood Corporation plus the loans guaranteed by the government over the past years, the results were unsatisfactory.
A clear direction on value-adding, replanting, branding and selling Fiji mahogany has now been taken with the first license issued to Sustainable Mahogany Industries Limited or SMI today.
The Prime Minister signed off the license earlier this afternoon after the company based in Deuba handed over a one million dollars cheque which is the company's license fee to purchase mahogany logs and timber from Fiji Hardwood Corporation.
Under the reformed Fiji Hardwood Corporation, the government has decided that clear steps need to be taken to get the best returns for the government, landowners, interested companies and the nation as a whole through increased exports.
Commodore Bainimarama said the license to the company, SMI is the first in a series of licenses that would be issued in due course to other successful bidders with a specific fee structure in place.
Commodore Bainimarama said SMI is planning to bring sophisticated value adding to Fiji which is currently being done in the US.
This will entail the shaping of guitar necks and bodies and specialized components for yachts.
The Prime Minister said this means new jobs and more foreign exchange for Fiji.
Meanwhile the government is also in the process of branding Fiji mahogany.
Commodore Bainimarama said the registration of a sovereign trademark called Fiji Pure Mahogany which will be owned by the Fiji government and the Fijian people will be instrumental in setting a new benchmark in the certification of Fijian mahogany which will be sold as a unique world class brand.
Story by: Vijay Narayan
