NA concerned over loss of natural resources


Upland rice cultivation on the mountain in slash and burn (swidden) method, Vang Vieng, Laos.

The National Assembly has urged the government to curb its use of natural resources as a way of ensuring sustainable income in the long-term.

The Vice President of the National Assembly, Dr Xaysomphone Phomvihane, said on Monday that although the government had generated national income beyond its target for the first time since 1999, most of the revenue had been collected from the sale of the country's natural resources.

“This type of revenue is not sustainable, and what we are getting in return is the steady disappearance of the country's natural resources,” Dr Xaysomphone said on behalf of assembly members, after hearing the government's 2006-2007 fiscal year report.

The government reported that national gross domestic product (GDP) growth had increased to 7.6 percent, from its original plan of 7.5 percent, which has resulted in an increase of reserve money, and a low and stable inflation rate.

The assembly urged the government to find ways to stop granting permission to businesses to cut down forests, in accordance with the resolution of the first session of the 6 th legislature of the assembly, and to instead encourage investors to focus on other areas which don't involve the use of natural resources.

Dr Xaysomphone said the government should lay down policies and regulations to improve the standards of the wood-processing industry, and encourage more efficient use of natural resources. He also urged the government to punish officials and entrepreneurs who contravene these regulations.
 

The assembly also expressed concern over the granting of land concessions, and urged the government to review its land concession policy, as well as empower the National Land Management Authority to undertake feasibility studies on land use before concessions can be granted.

Dr Xaysomphone explained that until now, land concessions have not been granted in accordance with the land's potential; the government has in fact been allowing investors to negotiate with local people to relocate, resulting in disparities in the rates of compensation for such villagers.
 

He pointed out that land concession fees for industrial tree plantations were particularly low, at only US$6 per hectare per year, for a 30-year concession.

“We can earn US$180 per hectare throughout the period of land concession, so this fee is not reasonable for a developing market-oriented economy. It also leads to the wasteful use of our limited natural resources and a loss of revenue in the long-term,” he said.
 

During yesterday's debate, members of the assembly also expressed concern that loans being released by the state-run Nayoby Bank to residents of the country's 47 poorest districts were being misused, and urged the government to look into this issue immediately.

A member of the assembly from Attapeu, Mrs Vatsaly Khotyotha, said poor people in her province did not receive loans, while wealthier residents did.

Another NA member from Vientiane , Mrs Souvanpheng Bouphanouvong, agreed that this was becoming a significant problem, as many poor people didn't know how to write a proposal to gain access to these development funds. Wealthier people who had been educated therefore had even more of advantage, she said.

She urged the bank to start running workshops and training for poor people on how to access the banks services and use funds effectively.

By Ekaphone Phouthonesy