Archived press release

UK Govt Funding Forest Destruction

30 July 2001

Friends of the Earth today joined forces with community groups in Papua New Guinea in calling on the UK Government to act on reports that its own development fund is destroying forests with serious social and environmental consequences.

FOE is writing to CDC Group (the Government's development bank) and Development Secretary Clare Short, presenting the concerns of communities in Papua New Guinea who have collected information and photographic evidence of the forest's destruction.

CDC Group, a wholly-owned Government investment fund, is the majority shareholder in Pacific Rim Plantations, which has planted over 20,000 hectares of oil palm in three areas in northern Papua New Guinea. One of the areas, Oro Province, is the only known home of the Queen Alexandra's Birdwing butterfly. Recent photographs obtained by Friends of the Earth show destruction of the butterfly's habitat, which local campaigners blame on the oil palm planting activities of CDC.

Villagers in the region are concerned that the conversion of their forests to oil palm plantations has not provided the benefits promised by CDC. Local campaign groups point to the absence of oil palm labour unions, low oil palm wages, questionable informed consent procedures for planting and pollution. Villagers in Oro Province have made complaints that CDC's oil palm activities are polluting their local river.

The Queen Alexandra's Birdwing is the flagship species of the Oro Province and is listed as rare and endangered by the World Conservation Union (IUCN). It is the world's biggest butterfly with some females having a wing span of over one foot. Conservationists in Papua New Guinea are concerned that the butterfly may become extinct as a result of oil palm activities which directly compete for use of its habitat. CDC is also accused by local campaigners of bulldozing three-quarters of a Wildlife Management Area specifically set up to help protect the butterfly.

Friends of the Earth is calling on CDC Group to fully investigate the evidence provided by the local campaigners in Papua New Guinea.

Ed Matthew, Forests Campaigner at Friends of the Earth said:

“We first raised the alarm about the destructive impacts of CDC's oil palm operations in Papua New Guinea in 1994 and CDC & the UK Government promised to change their ways. It appears now the Government has broken those promises and the rainforest destruction is back. CDC and the Government must make a clear commitment not to undertake any further oil palm activities that lead to forest loss and community conflict - the last thing the world needs is another rapacious corporation.”

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Published by Friends of the Earth Trust