The government has directed the Forestry Commission to grant Timber Utilisation Permits to distressed timber companies as an interim measure to ensure uninterrupted supplies.

Dr Kwaku Afriyie, Minister of Lands, Forestry and Mines, who announced this at a news conference in Accra on Friday, said Timber Utilisation Contracts (TUC) would be allocated to deserving companies when Parliament approved amendments to the Timber Resource Management Act of 1997 and LI 1649.

The amendments, which deal with granting timber rights, are to ensure transparency in awarding contracts, put limitation on the rights of contract holders and address other identified weaknesses.

He said 42 contracts have been frozen and praised his predecessor, Dr Christine Amoako-Nuamah, for refusing to sign contracts that were detrimental to the industry.

Dr Afriyie complained about the illegal activities of timber companies, inefficient utilisation of forest resources and the effect of bush fires and said these were fast dwindling the country's natural resource base.

"The annual allowable cut of timber is one million cubic metres but the current harvesting rate is at 3.7 million hectares," he said.

"As at the end of March this year, timber companies in the formal sector had harvested 900,000 cubic metres. This means that one out of every two transported log you see is illegally acquired."

The Minister said two companies were recently arrested at Akim Oda for not possessing documents on 209 logs and had to pay penalties in 10 folds.

He warned that if the rate of harvesting was not checked, forest resources outside reserve areas would be depleted in 10 years and the focus would shift to forest reserves.

The total forest cover has reduced from 8.2 million hectares to 1.6 million, indicating an annual average rate of 65,000 hectares.

Dr Afriyie announced several policy initiatives and programmes to ensure efficient management and utilisation of resources and also raise the annual revenue generated from less than 200 million dollars to one billion dollars.

Forest product exports account for almost six per cent of GDP, while export earnings account for 11 per cent of the total national earnings.

The Minister said discussions were going on to make the Ministry of Works and Housing use lesser known species of timber in its projects so that preferred species such as Mahogany and Odum would not be over exploited.

He said the ban on chainsaw activities in the forestry sector would be strictly enforced.

"Market dealers in chain-sawn lumber will be given time to sell their products after which sellers of the lumber will be arrested and prosecuted," he said.

To ensure that local markets were regularly supplied with reasonably priced lumber, the Minister said, district assemblies would be encouraged to set up mobile mills in strategic locations to produce lumber.

The mills will be granted timber utilisation permits to access raw materials.

In addition, contract holders would be required to sell 20 per cent of their produce to local millers.

Dr Afriyie said the campaign against bush fires would be stepped up with a 10-million dollar grant from the Netherlands government.

"The annual loss of revenue from timber to fire is currently estimated at 24 million dollars, which is equivalent to three per cent of GDP during the last 15 years," he said.

On the encroachment of forest reserves by mining companies, the Minister said guidelines and a memorandum have been prepared for Cabinet to consider to stem the practice.

Statistics indicate that two per cent of the nation's forest cover is degraded by mining activities.

Dr Afriyie announced that 25 billion cedis has been set aside to begin a massive forest plantation development between now and the planting season of next year.

He urged communities, non-governmental organisations, private companies and other bodies to take advantage of the facility.

The project aims at establishing 20,000 hectares integrated with cassava, plantain, cocoyam, maize and yam per annum.

Mr Jonathan Armah, President of the Ghana Timber Association, complained about the low prices of timber offered by the Ghana Timber Millers Organisation and urged the Minister to assist members of the association to resolve the problem.