4. Improvements of national forestry statistics process.

The system currently being employed for data collection and processing is probably the most accurate one tried so far although there is still room for improvement. For larger enterprises, all domestic trade is reflected in the annual financial statement submitted to the VAT office, while all foreign trade is registered with the local customs department. However, in relation to very small enterprises much more needs to be done in order to collect accurate information on local production and trade. Based on the existing data collection system, government is very clear on the types and quantities of materials entering the country, however, what is not totally clear is information relating to specific utilisation. For example, what quantities of wood are used for boat building and repairs or by local joiners and other tradesmen etc.

Introducing practical and cost effective measures would entail bringing together all relevant organisations, institutions and individuals so that a strategy for monitoring domestic activities can be developed. For example, the fisheries department who is responsible for granting fishing licenses should keep annual records on the number of new boats entering the system, the size of each vessel and the types of woods used for construction. This department should also document all information relating to repairs of existing boats and collectively these should provide an adequate account on the amount of wood being utilised by the fisheries sector.

The number of local joiners has declined significantly over the years and hence the quantity of wood currently being utilised by the few remaining tradesmen is almost negligible. However, the fact that these small trade shops are still utilising small quantities of wood, a mechanism should be put in place to monitor the extent of this utilisation. One suggestion would be to provide both financial and technical support to the existing small shops with the aim of revitalising these traditional activities, but simultaneously the keeping of records on production and domestic trade should be mandatory. Another area where information on domestic trade is not forthcoming is that of the handicraft sector. As the tourist industry continues to expand there is an increasing demand for local souvenirs made mostly from wood, but as mentioned before, most of the small craft shops are not required by law to produce a financial statement and unfortunately no records are available.

Addressing this problem would obviously be very complex since most small businesses more often than not are very reluctant to submit information on their production and financial status. One approach is through education, but again, this process is a gradual one with very uncertain results. Another approach is to alter the existing VAT structure so that some of these smaller enterprises are included and this of course would at least disclose some information on production levels. In addition, a similar programme to what was recommended for the joiners is also applicable here where the relevant technical and financial support can be provided in exchange for information on domestic trade.