Aug 16 2004 - The British Government stands accused of damaging theenvironment and polluting watercourses in Papua New Guinea, as well as theabuse of workers' rights, in a letter sent by landowners on the island tothe International Development Secretary Hilary Benn. Working with Friendsof the Earth, the local land owners are calling for compensation for thedamage done by Government-funded palm oil plantations on the island.

The traditional landowners from Oro Province are demanding 310 millionkina (about £50 million) for the loss and pollution of their landsresulting from the activities of Higaturu oil palms, which is partiallyowned by CDC (formerly known as the Commonwealth Development Corporation),a company owned by the UK Government.

Palm oil is a vegetable oil largely produced for export on estateplantations in South East Asia. Its spread is currently driving massivedeforestation in Indonesia and it is feared that the same pattern will berepeated in Papua New Guinea, which supports some of the world's lastrainforests. The UK Government invests in palm oil through CDC.

Lawyers acting for the landowners detail the health impacts ofwatercourses polluted by chemicals and sewage runoff from the plantationsin the letters sent to Hilary Benn. The watercourses are used by about10,000 people for their daily needs.

Workers on the plantations are paid about £2.40 a day, without protection,sick pay or benefits. In contrast, CDC's chief executive earns an annual £200,000.

CDC, which has been active in PNG for 26 years, has a remit to "createwealth in emerging markets" through "responsible investment." Damien Ase,lawyer for the Centre for Environmental Law and Community Rights in PNG,calls CDC's activities "a clear case of disregard of national laws by amultinational corporation."

Friends of the Earth Corporates Campaigner Robin Webster said:

"It's shocking that any UK company is involved in environmentaldestruction and human rights abuses abroad, let alone one that funds itsoperations with British tax-payers' money. The British Government mustface up to the responsibilities of such investments and ensure that all UKcompanies, and especially those operating in the Government's name, arenot destroying the environment or damaging local communities."

Friends of the Earth and the communities are calling on the UK Governmentto fund an independent environmental and social review of the impacts ofHigaturu oil palms in Papua New Guinea.