Beirut 'missed out on $2.5 billion' by failing to tax quarries

Critics call for 'proper law' to regulate sector

 

 

The Lebanese state could have generated around $2.5 billion, had it collected fees and taxes from the quarries sector over the past 15 years, according to the Lebanese Environment Party on Wednesday. The party announced this figure, which was calculated based on earlier official studies and legal documents, at their first national conference on the need for organizing quarries, titled "when will wasting natural resources and public wealth be stopped?"

The aim of the conference, attended by representatives from various ministries, municipalities and environmental associations, was to discuss the problems of the quarries sector today and come up with recommendations to the government.

The highly politicized quarries sector had been and continues to be an important financial source for political parties and groups, said Habib Maalouf, a prominent member of the party founded by a group of environmentalists and officially registered a year ago.

Last year, a scandal erupted when it was disclosed that the Lebanese judiciary had ordered the payment of almost $250 million to members of MP Nicholas Fattoush's family, in compensation for a government decision to close down their quarries.

This example, showing that huge profits were made by quarry owners in the absence of substantial taxes collected from the sector, largely explained why numerous attempts to organize this sector were always hampered by politicians, he said.

"There is an urgent need for a proper law to organize the quarries sector because of its financial and environmental significance to Lebanon," he added.

A 1996 national plan to organize quarries specifying technical and environmental standards identified quarry locations and determined the country's needs for stone. The government remained, however, reluctant to implement this plan due to of political bickering over this file.

The party urged the government to organize quarries by adopting an exhaustive sustainable development plan, taking into consideration factors such as the protection of Lebanon's resources, the increase in population, tourism, and transport.

 The party also recommended importing sand instead of extracting it from national forests, and urged the state to stop exploiting publicly owned land as sites for quarries to minimize their effect on the environment.

Displaying photos illustrating the consequences of quarries on people and nature, Maalouf said: "Uncontrolled quarry operations in the past years caused irreparable damage."

 

Quarries had severe impacts, according to the Environment Party, on land, biological diversity, buildings, road networks, aquifers as well as water and air quality.

 

"More than 3,000 hectares of land are mutilated today because of the catastrophic management of quarries located in over a thousand sites," Maalouf said, adding most of these sites are not licensed.

 

Only recently, the Environment Ministry started a project to rehabilitate quarry sites.

 

But the project has yet to identify how quarries will be rehabilitated or who will pay for their rehabilitation, said the Environment Party.

 

The costs of damage caused by quarries yearly reach about LL25 billion, showed a study on the cost of environmental damage in Lebanon carried last year.

 

According to the party, the government should implement the "polluters pay" principle in order to rehabilitate quarries.

 

Two months ago, the Interior Ministry issued a decree that put an end to grace periods granted for years by the ministry to quarries, supposedly for removing stocks. Highly criticized by environmentalists, these grace periods were viewed as a veiled way for quarries to continue their work unchecked.

 

According to the decree, the Higher Council for Quarries, headed by the Environment Ministry, will be the only authority in charge of managing and giving licenses to quarries.

 

 

Source

Daily Star

By Raed El Rafei

Monday, May 01, 2006