Page 33 - IB July 2018

Business Intelligence - PNG

O’Neill encourages free and open trade in Pacific

Commonwealth, said PM O’Neill while addressing the Fiji-
PNG Business Council lunch when visiting Fiji’s capital Suva
in early July.
He said Pacific countries have strength in numbers and they
need to use this to their advantage.
“At a regional and sub-regional level, Papua New Guinea and
Fiji are working well to expand trade and investment. Perhaps
the best way to illustrate the success of working together is to
refer to the level of PNG business investment in Fiji in recent
years – and Fiji investment in Papua New Guinea.
“The level of investment is increasing. I am proud of the sub-
stantial investment the business sectors are making into each
of our economies. Whether it is in banking, finance, insurance,
Prime Minister of PNG, Peter O’Neill. Photo: USP Media tourism and hospitality, agriculture, SME businesses or com-
munications – our investment is substantial, and it is growing.
By Pacnews “In return, we welcome increased Fiji business interest in-
vesting in Papua New Guinea – in agriculture, processing, our
Papua New Guinea Prime Minister, Peter O Neill is optimistic tourism sector, and communications in particular. The level of
that despite challenges facing the global economic environment, two-way trade between our countries has not peaked. It is far
Pacific countries can work together to create a free and more from reaching its full potential, said O’Neill.
open trading environment within the region. To take advantage of this increased business interest, the
The onus, he said, lies with Fiji and Papua New Guinea to PNG leader extended an invitation to more Fijian businesses
take the lead. to invest in his country and take advantage of the positive
“While larger global powers engage in hostilities, impose changes taking place.
tariffs and abandon established rules – we must work closer “Oil and gas prices have bounced back, we are recovering
together and build on our collective strengths. We are all mem- from the drought – and the fundamentals of our economy
bers of important global trade forums such as the World Trade remain strong. Even when faced with very harsh global head-
Organisation, and we have collective strength in other forums. winds – the economy of Papua New Guinea has continued to
This includes MSG, the Pacific Islands Forum, the ACP and the maintain positive economic growth,” said PM O’Neill.

Minimum wage rate raise mooted (about K30 million), drawn down for the Chinese contractor as
PAPUA New Guinea Labour and Industrial Relations Minister per conditions of loans from China for ground works before the
Mehrra Kipefa is concerned that the Papua New Guinea’s mini- rest of the loan was cancelled. “That is for them, but actually it is
mum wage is not enough to sustain the majority of the workforce. not for the project, it is for the Chinese contractors like any other
He said another issue involved was that some employers were still Chinese loan for their own contractors.”
paying below the current minimum wage and looking for excuses
not to pay the K3.50 (US$1) per hour threshold. Kipefa told a me- Fisheries seeking to manage own funds
dia conference in Port Moresby that his ministry was in dialogue TALKS are ongoing between Papua New Guinea National Fisher-
with bodies such as the Investment Promotion Authority (IPA) ies Authority (NFA) and Finance Department to give the authority
and Internal Revenue Commission (IRC) to increase the minimum flexibility in rolling out its projects. Fisheries Minister Patrick
wage from K3.50 (US$1) an hour to at least K5 (US$1.50). The Basa made the announcement when he was asked to provide
minister’s suggestion comes at a time when the cash-strapped an update on the Public Money Management Regularisation Act
government is facing a downturn in the economy as well. (PMMRA) and its impacts on the authority. Speaking in Kokopo,
Basa said the implementation of the Act had hurt NFA’s opera-
Revised PMIZ loan of US$156m tions nationwide. He said the NFA office in Lae was shut down
THE revised loan amount for the re-scoped Pacific Maritime In- and many of their workers around the country were affected.
dustrial Zone in Madang will be K484 million (US$156m). PNG Basa said some projects budgeted for by the NFA board could
Secretary for the Department of Commerce and Industry Andrew not be implemented.
Liliura confirmed this when giving an update on the impact project
that continues to linger on for three years since being launched China gifts PNG new six-lane road for APEC
by Prime Minister Peter O’Neill. “We have already worked on it THE National Capital District Governor of Papua New Guinea
and we are going for a new loan of US$156 million. That will (PNG) Powes Parkop has told local media that the Chinese-
be for the rescoping of the work and the operation of the first constructed Independence Boulevard Precinct will showcase the
phase of the PMIZ project.” In terms of the funding arrangements, “status” of Port Moresby and highlight the potential of the nation.
Secretary Liliura admitted that there has been misconceptions Developed as a part of the Chinese government’s international aid
about the project’s financing arrangements, which have been programme, the 300-metres corridor is valued at around US$12
revised specifically to incorporate changes needed to expand the million and will feature a six-lane road, two five-metre wide
previous wharf design. He said the initial US$95 million loan for footpaths, street lights, path lights, three traffic lights and five
phase one only saw 10 per cent of the amount, US$9.5 million nature parks all running from Waigani to Parliament House.

Islands Business, July 2018 33