THE Government’s new K1.4 billion loan for housing has created yet another
burden or the country’s economy, says deputy Opposition leader Sam Basil. He said the previous Exim Bank loan of K6 billion and the recent K3 billion UBS loan would not have any positive effect as yet to the economy because the Government did not even know the cost of repayment from the anticipated export receipts. “Treasurer Patrick Pruaitch last week during question time couldn’t explain how the LNG exports will positively add to PNG’s economy and of how it will improve the exchange rate which is now trading at an all-time low,” he said in a press statement. “This is only because the O’Neill government has not put in place an accounting strategy with conforming economic modelling practices to circumvent the direction of payments to the appropriate loans. “What this means is that the blind are leading the blind within the O’Neill government and there is no specific strategy to capture these export revenues into productive policies for PNG.” Basil said the so-called “2013 year of implementation” where billions had been spent, not a single project had been completed. The unprecedented and undisciplined spending sometimes unilaterally made by the Prime Minister and his key ministers clearly shows that the Government does not care for the future of the country or the hardship that the people would experience, he said. “The Opposition now calls for a reconciliation of all debts created by this government so far against the revenue base before embarking on new loans and the framing of the 2015 budget.” He said the “Asian loan shopping spree” would see more ministers wandering off to Asian countries, striking more loan deals under the disguise of improving lives of Papua New Guineans. Basil said any new government would always face many issues but none could expect to fix all the problems during its reign. He said caution must be taken because the country’s LNG resources were the same as any other LNG exporting country. “We are all vulnerable to the unpredictable market forces, global conflicts, natural disasters just to name a few,” he said, and advised that at least 40% of the LNG income could be saved while the other 60% be spent on Government’s commitments and priorities. PNG Facts / The National Comments are closed.
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