Posted By Staff Reporter
My beloved people of Yangoru Saussia and Papua New Guinea, today I raised a couple of critical national economic issues during question time in Parliament. Due to time, I was not able to present some background facts. Since Marape took office, he announced his Government’s overarching policy direction slogan as #TakeBackPNG and making PNG the #RichestBlackChristianNation on earth. Under this pillar, it renegotiated the Papua LNG Project, which resulted in investors pulling out of the country. Porgera Mine ceased operations, resulting in the loss of over K2 Billion economic production by Porgera mine itself plus all contractors, SMEs and the big informal sector that thrives around Porgera. We lost our global reputation as a Government and country that honors its project agreements. Porgera has resulted in 3500 direct job losses, 1500 contractors losing business, thousands of SMEs affected and the biggest indirect jobs affected are those in the informal sector that aren’t quantified to date. Now, I understand the national sentiments. But the TIMING isn’t right. We had a Covid19 health and economic shock that affected all other spheres of society. The Marape Government to date does not have an “appropriate policy” for the Covid19 shock. This is a matter of having smart strategies and tactics in times of crisis that the Marape Government desperately lacks. In addition to Covid19-induced K2 Billion economic losses, the Marape Government’s lack of foresight, strategy and tactics to safely “steer” the economy through the turbulent times will cost us a further K2 Billion – which is the potential loss directly relating to Marape Government’s poor and reckless decision-making. Apart from the extractive sector, there are no new investments by PNG companies in the economy due to uncertainties and fear caused by the Government’s nationalistic and anti-investments pronouncements and actions. In any country you go, the economy is driven by the private sector. Marape Government is continuing the mistake of relying heavily on the extractive industry and prioritizing revenues from extractive industry. Truly, we haven’t learnt in 45 years! Extractive industry is volatile! Also, projects like PNG LNG has been a conduit for inequality of income and opportunities in PNG. Marape Government isn’t continuing the work the previous Government has started to diversifying the economy into other sustainable and equitable sectors like Agriculture, Tourism and SMEs. We talk about Agriculture but haven’t put money where our mouth is. In the 16 months that Marape has been in Office, his “Talking, Actions & In-Action Policies” has chocked and is killing the economy. Conveniently, the blame will be shifted to Covid19. Let me point out some of the obvious: Loss of over 5000 direct jobs. And hundreds and thousands of loss of business for our SMEs, local companies and the informal sector. Marape Government opened the floodgates to bio-security risks by allowing the importation of over K120 Million worth of uncooked chicken products from high-risk countries such as Australia, China and Malaysia, who are known to have poultry diseases. PNG currently does not have poultry diseases. This has affected the Poultry Industry – the biggest livestock industry valued at K1.2 Billion, that produces 4000 direct jobs, thousands of poultry SMEs and informal sector economy that relies of poultry farming. As if we have successfully stopped nor eradicated diseases like African Swine Flu, Cocoa Pod Borer Disease, Coffee Cherry Borer and Coconut diseases that is already affecting millions of our farmers. The Agriculture Minister has recently announced that the Government will be importing live cattle from Australia to be fattened and slaughtered here in PNG. Instead of growing the local cattle industry to replace all beef imports, and develop our national herd, and look at exporting to Indonesia. The Marape Government in the last 16 months has not taken any initiative to grow the dairy industry, from the efforts of the last Government in establishing the Ilimo Farm through Public Private Partnership which has now replaced K120 Million from a K400 Million dairy import industry. The O-Neill Government was responsible for the Pangia Potato Factory that is now slowly replacing the 40 containers of potato that PNG imports from Australia every week. The total import value of K200 Million. Pangia factory, owned by SHP Government and private partners, is adding value to our local farmers in the Highlands. The biggest challenge is lack of seedling for farmers. The Marape Government has done nothing in the last 12 months to support this industry to build a potato seed bank to support thousands of farmers in the seven (7) Highlands Provinces, so production can be increased and K200 Million wealth transferred to PNG farmers (not Australian farmers). This Government has been preaching about #Talking Back PNG and investing in Agriculture but has not taken any Action to continue the initiatives started by the last Government. We need to diversity our economy and build our Agriculture sector – not relying Mining, Oil & Gas. In terms of Infrastructure, when I was Planning Minister, National Planning & Transport has completed the technical design and financial evaluation of the viability of the Wewak and Vanimo International Wharves. In the last 16 months, nothing has been done for these two wharves. The Greater Sepik Region is the upcoming agriculture economy powerhouse of PNG. The Government must think strategically and tactically. PNG also needs to develop its trade with Indonesia, which is potentially our biggest export market. The Wewak and Vanimo wharves are very strategic. They set up our country to trade with Indonesia. Indonesia has the potential to be our largest trading partner – they have a population of 270 Million, the fourth highest in the world and they are the 7th largest economy in the world. Agriculture and replacing imports should be the talk of the day! People don’t eat oil, gas, copper and gold. People eat food! PNG needs to address food & nutrition issues like malnutrition, undernutrition and stunting in children which costs the PNG economy K5 Billion every year. The questions I had in mind to ask PM Marape were: 1. Whether the PM is aware that his Government is the most anti-business and business-unfriendly Government since Independence as clearly shown by his actions and inactions under his #TakeBackPNG and #Making PNG the richest black Christian nation rhetoric. 2. Whether his Government will continue to import uncooked chicken meat from the high risk countries and expose PNG poultry industry to all manner of diseases, and continue to destroy the Poultry Industry, our SMEs and people who depend on the industry. 3. Whether his Government import live cattle or put money into growing local cattle industry? 4. Whether his Government will put money into building the potato seedlings seed bank to support our local farmers in the Highlands, thereby replace a K200 Million potato import industry? 5. Whether his Government is going to be resting comfortably in its slumber or wake up to secure funding and immediately build the Wewak and Vanimo International Wharves, and negotiate a Free Trade Agreement with Indonesia. 6. Whether his Government will work on growing the economy by increasing exports and replacing imports in the non-resource sector. Or his Government will focus on more and more borrowings. 7. In fact, in the name of Covid19, the Government is hellbent on borrowing, without any “appropriate” policy. The last O’Neill Government borrowed an average K2.5 Billion per year for 8 years under a 35% Debt to GDP ratio. This Government has increased that to 45% so that will now enable it to borrow up to K 5 Billion in 2020. Next : PNG's Trade Value Drops By 36 Percent Comments are closed.
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