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Logging companies use sub-contracts to get away from costs

LOGGING companies are very smart to avoid business licences by subcontracting them, said Hon George Solingi Lilo.

The Western Province MPA for Ward 18 warns the Minister of Finance and Treasury Hon Lester Saomasi that if they make the sub-contracting fee low in the province then logging companies will go for the lowest price meaning they will get away from costs.

“Nowadays logging companies are trying to encourage landowners to get the subcontract license because the national government has increased fees in the provinces.

“They are trying to throw this to landowners without realising that all the costs will go to landowners,” he said.

It is now passed in the Western Province Business License Amendments for 2017-2018 that round log exports licence fee for Western Province will be between the ranges of 125,000 to 175,000 SBD dollars.