Chief Secretary to Government, Sir Manasupe Zurenuoc (pictured), has applauded the Special Agriculture & Business Leases (SABL) Implementation Taskforce, for the outstanding report to implement the recommendations found during the Commission of Inquiry into SABLs.
This special taskforce is comprised of Dr Laurence Sause (Chair & Policy and Government Advisor) and two retired public servants Kutt Paonga (Legal advisor) and Daniel Katakumb (Land Advisor).
Sir Manasupe said in 2011 the government set up a Commission of Inquiry into SABLs, which found that many leases needed to be revoked.
He said the government then referred the matter to a ministerial committee to implement the findings of that particular inquiry.
"However, the ministerial committee could not progress much for various reasons," Sir Manasupe said.
He said towards the end of 2014, Cabinet set up a special taskforce – SABL Implementation Taskforce - under the Chief Secretary, to look at means and ways on how to effectively implement the COI findings.
"Currently the laws are complicated and ineffective to revoke these leases therefore amendments to the legislation will be considered.
"From the report provided by this special taskforce, the government now has a clear way to implement the revocation of non-genuine leases.
"I commend the taskforce for a job well done in making it easier for the government to move forward," Sir Manasupe said.
He said the taskforce had advised the government on how best to implement the findings of the COI.
"Out of the 75 SABLs throughout the country, only 42 SABL reports were provided by only two members of the commission – Nicholas Mirou and John Numapo - who provided finding recommendations that 30 were to be cancelled, 11 to be suspended and that only one SABL was in order.
"The other 30 SABL reports, however, have not been received by the government hence the government is now pursuing other actions to obtain them," Sir Manasupe said.
He also announced that the report was now ready to go before Cabinet for approval.
"In the not too distant future, the government hopes that some of the land will be returned to landowners," Sir Manasupe said.
Saturday, October 03, 2015
Chief Secretary to Government, Sir Manasupe Zurenuoc (pictured), has applauded the Special Agriculture & Business Leases (SABL) Implementation Taskforce, for the outstanding report to implement the recommendations found during the Commission of Inquiry into SABLs.
Friday, October 02, 2015
Communications and Information Technology Minister, Jimmy Miringtoro, has foreshadowed important reforms to cross media-ownership laws in Papua New Guinea in the upcoming session of Parliament.
Miringtoro said he was concerned at the way NRL broadcast rights were suddenly taken away from a free-to-air television station, which he said was a move that left a lot of unanswered questions.
The minister said there was growing concern that competition in the communications sector would be crushed if large foreign conglomerates could begin to monopolise the market.
"We will not allow one dominant player in the Papua New Guinea communications market as this is not fair on the people of our nation," said Miringtoro.
"Given enough power these large companies can force out the smaller phone, television, radio and newspaper platforms, and then expand to other areas such as advertising.
"When one company has a monopoly over multiple media platforms they could potentially take the market for granted and charge much higher prices to our people.
"Cross-media ownership structures need to be clearly defined so that competition is ensured in our country and this will deliver better media services to our people.
"We already pay high prices that are imposed for Internet and mobile telephone calls.
"If a large phone company was able to expand into television, the savings afforded by vertical integration backed up by the deep pockets of the foreign conglomerate, would probably mean the end of any completion in Papua New Guinea media and communications.
"It would also mean one foreign company had control over the entertainment, news and sport seen by our people, and would probably see Papua New Guineans forced to pay to watch each NRL game.
"The O'Neill/Dion Government will not approve the takeover of our communications sector by a single company, and we will legislate to ensure clarity and competition in the sector."
Miringtoro said he was particularly concerned at the way the rights to broadcast NRL had been taken away from a free-to-air television station and given to a pay television broadcaster.
"For decades Papua New Guineans have been able to watch rugby league on free-to-air television," he said.
"This works in a developing country like ours as the television station gets advertising revenue from companies and our grassroots people do not have to pay to watch.
"Suddenly we find that has changed and now everyone will have to pay to buy a box to watch NRL.
"This is a major disappointment for people around the nation and we will consider legislation to ensure free-to-air channels have first right to broadcast significant national sports.
"NRL and State of Origin would certainly be considered in such a list of sports.
"We will find our what was behind the sudden loss of NRL broadcast rights on free-to-air television."
|Chief Secretary to Government Sir Manasupe Zurenuoc (centre) receives the K50 million from NFA Managing Director John Kasu (left) and Chairman Job Pomat|
This is on top of the first component of K25 million presented earlier to the government in August this year.
The K50 million cheque was presented to the Chief Secretary to Government, Sir Manasupe Zurenuoc, by the NFA Chairman Job Pomat and Managing Director John Kasu, in Port Moresby.
Sir Manasupe thanked NFA for its ongoing support to the government, saying the NFA board's commitment of providing increasing dividends to the government over the years contributed largely to the country's revenue cycle.
He said the NFA was one of the few State-owned enterprises that continued to bring in increasing dividends every year.
"The dividends like all other dividends will be put in to the government purse for the budget.
"I would also like to applaud the National Fisheries Authority for its efforts in successfully meeting the European Union's requirements, which has resulted in the uplifting of the yellow flag restrictions on our fishing regulations," Sir Manasupe said.
He said Prime Minister Peter O'Neill would make an official announcement on the uplifting of the yellow flag ban by EU, in the next few days
Pomat also revealed that NFA had just received a letter from the European Union that the yellow flag ban on fishing processes in PNG waters had been lifted.
He said this was a proper opportunity to raise PNG's standards to be the first-class tuna provider in the world.
Last year, NFA furnished a total of K50 million in dividends to the State compared to this year's K75 million.
Prime Minister Peter O'Neill has raised serious concerns at the motive and intent of the complaint submitted by Sir Michael Somare to the Ombudsman Commission of Papua New Guinea.
"The actions by Sir Michael Somare in submitting his recent complaint are self-serving and not in the best interests of the country," O'Neill said.
"The events that took place in 2011 were because of Somare not being honest with the people of Papua New Guinea, and with the Parliament, about the seriousness of his illness and his lengthy absence as the Prime Minister of the country.
"The position of Prime Minister of Papua New Guinea is not a birthright, it is a position that is mandated by the people though their Parliament.
"It was in Parliament's considered view that Somare's lengthy absence of over eight months, without proper explanation or reason given to the Parliament, gave rise to a vacancy in the position.
"This led to the events of 2011 when the Parliament elected a new Prime Minister."
O'Neill said decisions of the court were noted by Parliament that acted within the law.
"The Parliament, at all times took note of the court's decisions, and has dealt with these decisions appropriately.
"Through Parliamentary process it was deemed that there was a vacancy, thereby allowing Parliament to conduct an election for the Prime Minister on each occasion.
"Parliament has dealt with this within its mandate and the decisions of Parliament are not subject to the Leadership Code.
"The people of this nation then went to the polls in 2012 where they elected our Government, and Somare must accept that the people made this decision through the ballot as part of our national democratic process.
"He needs to respect the decision of the people and stop being a spoiler for the country.
"If he thinks he has a case to present to the people, his opportunity will come again in 2017 within 20 months.
"We will see him at the polls and this is where the people will decide again who should lead the country for the next five years."
The Prime Minister said the State had been very generous towards Sir Michael Somare and it was time that he recognised the support that had been afforded to him.
"All entitlements have been fully paid including additional funds he received from the State.
"The people of Papua New Guinea do not owe him anything further than what he has already received."
Thursday, October 01, 2015
|Deputy Prime Minister Leo Dion (left) and Foreign Affairs Minister Leo Dion at the United Nations|
The PNG delegation comprised of the Minister for Foreign Affairs and Immigration and senior government officials from the Department of Prime Minister and NEC, Foreign Affairs, National Planning and Monitoring and officers from PNG's Permanent Mission to the United Nations in New York and the Embassy in Washington DC.
Dion at the post-2015 summit addressed the United Nations General Assembly on the September 26, 2015, where world leaders adopted the Sustainable Development Goals (SDGs) to succeed the UN's Millennium Development Goals (MDGs) by January 2018.
The gist of the Deputy Prime Minister's statement was on the National Government's initiatives to promote sustainable development in Papua New Guinea and issues on climate change, water, Health and Sanitation, Vision 2050, Long Term Development Plan and the National Strategy for Responsible Sustainable Development.
Dion said the drive by PNG to get international support on climate change also gained prominence when Pope Francis gave his speech on September 25, 2015.
"The Pope talked about the same thing that the Prime Minister Peter O'Neill, has been emphasizing about on, climate change," he said.
Dion said climate change was a real issue that was affecting thousands of lives in PNF and in the Pacific region.
"PNG's contribution at the international level as Chair of the Pacific Islands Forum was our leadership in securing consensus among PIF countries in proposing SDG 14, which is to conserve and use the oceans, seas and marine resources in a sustainable manner.
"Our leadership in proposing goal 14 underscores our commitment to ensure the international community recognizes the importance of protecting our pristine marine environment."
He said this also underscored the 46th Pacific Islands Forum's commitment to work together.
Dion went on to pledge PNG' support of the 17 Sustainable Development Goals and the country's commitment to achieving better results.
Friday, September 25, 2015
|Long-beaked echidnas are threatened by habitat loss and hunters in New Guinea and Indonesia. (Photo : Wikimedia Commons )|
|Photo : University of Queensland )|
An echidna puggle breed in captivity at the Currumbin Wildlife Sanctuary in Australia.
This is further to the announcement on April 1of the commencement of continuous 24-hour power generation and supply to Tari, Hela.
The RPP is aimed at connecting up to one million people to a larger and improved electricity grid by 2030, through the provision of modular, low cost power supply.
Implementation agreements are planned to be developed with the PNG Government over the next few months to support the following projects:
*Biomass Independent Power Producer (IPP). A 30 MW Biomass project in the Markham Valley, Morobe Province. This project is aimed at providing baseload power for the Lae region and will have
significant environmental, social and employment benefits. The development will be phased in two x 15 MW units, to match supply with demand.
and provide lower cost baseload and intermittent power primarily for households and social Infrastructure in the Hela and Southern Highlands Provinces.
"With one of the world's lowest electricity connection rates, delivery of reliable, competitively-priced power is one of PNG's highest priorities and we are delighted that we can play our part in providing clean and sustainable biomass-fired and gas-fired power to the country.
"We have been exploring the potential for the Markham Valley Biomass project and cost-effective gas fired generation in the Highlands for a number of years and hope to sign Power Purchase Agreements for these projects, which have the potential to make a real difference to people's lives, by the end of the year."
Thursday, September 24, 2015
In our coffee industry here in Papua New Guinea, few except those engaged in the export of coffee have any real understanding of how the coffee market works.
Because of this, a decade ago, Coffee Industry Corporation published and circulated widely (40,000 copies mailed out in 2003) a booklet which explains how both the local and the overseas sectors of the coffee market work , how coffee is valued and priced, and how the trade is financed.
The booklet, which was published with the assistance of the European Union, was called STORI BILONG KOPI and was available, free, in English and Tok Pisin versions ( It is interesting to note in passing that NOT ONE acknowledgement or note of thanks, from the Members of the National Parliament, who all received a copy, or from the nations High Schools and Universities, which all received packages containing 20 copies, was received by CIC).
Among a number of things, the booklet shows an interested grower how to calculate the value of his coffee at the factory door, using current factors available daily in both the national dailies and on the EMTV six-o'clock news.
The advent of cheap and widely-taken-up mobile phone services in more recent times has added another effective tool aiding the interested coffee-grower in his pricing and marketing activities.
Using this information and a pocket calculator an interested grower may work out values with which to compare offers he is made for his coffee.
This is quite a revolutionary turn of events for those who may take advantage of the information, for never before has a PNG-based grower or small businessman been equipped to gain such insights into the workings of the market.
In fact, the highly-competitive nature of PNGs internal market sees to it that the grower who is alive to tricks played by itinerant buyers and who brings his coffee to a place where competition between a number of buyers is the rule may be assured of somewhere between 65-70% of ruling FOB at the time of sale.
At certain times and for short periods only, generally due to seasonal variances in supply and consequent shortages, up to 85% of FOB value has been achieved.
This means that on average between 15% to maximum 30% of FOB value is shared by coffee-buyers, factories, transport companies and exporters in the process of drying, hulling, insuring, transporting, preparing for export and actually loading coffee aboard ships.
CIC's industry levy of 8 toea comes out of this also.
The balance, being between 70% and 85% of FOB ( export) price goes to the careful grower who picks the place where competition exists, and the buyer who offers the best price, to whom he sells.
These figures compare well with others from around the world where open, competitive coffee industries exist, and where Government involvement or centralised marketing is non-existent. Where the latter conditions do exist growers typically realise less for their coffee because of the cost of large and often inefficient and partisan bureaucracy which is the middle-man in these markets.
A case close to home was the late now reconstructed and renamed PNG Copra Marketing Board - which was a byword in PNG for its deplorable record in dealings with small growers..
In answer to the question at the head of this section - yes a PNG-based coffee grower not only has the opportunity to obtain a fair price for his coffee in the internal market, but also the means, if he wishes to employ it, to check that this is so, and to make his discontent known if it is not through his statutory entitlement to a voice via his local Small Growers Association - prior to the antidemocratic reduction of the growers power over his industry by the current cohort of Department of Agriculture and Livestock Minister and his friends and appointees.
As for the rest of the chain of transactions leading towards the consumer situated in a far-off land, does PNG's share within the totality of the market including the consumer side stack up as being fair?
The answer is a resounding No! It does not!
The reasons for this are very complex. There are many influences at play.
Meaningful reform by any agency other than the passage of time and changing attitudes is unlikely, although a return of the USA to membership of the International Coffee Organisation has prompted a trend towards a more even balance in the market. Sudden rises resulting from unpredicted events and shortages, whilst rewarding in themselves do not alter retention as percentages by sector.
A more equitable share of total value of the trade for origins will be slow to come, incremental in nature, and will be propelled by efforts by the growing countries, or origins, themselves.
Salesmanship and value-based promotion as well as adherence to desired levels of intrinsic quality and blending –types made for individual buyers will help, but increments achieved will be slow even though ongoing once established.
Even so, the three giants achieve little and are subject to the same pressures, generally speaking, as the mass of small origins, of which PNG is one.
As a group, the origins are price-takers, whereas the other side of the market is dominated in great degree by six immensely powerful commercial entities.
These entities have achieved a degree of control over the price of raw coffee which seems unshakeable.
With the massive growth in buying-power of post-war societies in the developed world, systems of supply and delivery to the consumer have become increasingly integrated.
This has allowed consolidation within markets as well as cross-border or multinational integration.
The driving objective is the creation of economies of scale leading to market domination.
The result has been the corporatization - as opposed to the globalisation - of trade across the world.
The two terms corporatisation and globalisation are portrayed by some as being essentially the same thing.
They are not the same.
The basis for globalisation is that the benefits of international trade may be shared more evenly, whilst multinational corporatisation works to accrue benefits for tiny, very wealthy minorities at the cost of poorer, less-integrated and thus less powerful entities.
In the coffee industry, worldwide, we have a perfect example of the meaning of corporatisation.
The origins sell around 60% of production to six huge multinational roaster-marketer companies proprietors of the best-selling brand-names in the industry.
These brands are consumed by a majority of coffee-drinkers across the world.
Thus it is that coffee-growers, and to a lesser degree coffee drinkers, are linked inseparably to the owners of these brands as much as a dog is linked to his owner by his lead or chain.
The relationship between dog and man may also be seen as a parallel: a relationship where dependence and conditioning ensures obedience.
The observable effect in the case of the coffee industry is that the small people at each end of this multinational market support, to their cost, a highly-efficient accumulative process at its center.
Coffee-drinkers in developed countries rarely if ever see a reduction in the cost of the product they love, no matter what the state if the international coffee market.
And due to the domination of the industry by the multis, today's severely-impoverished coffee-grower has been slowly, incrementally, deprived of some 75% of what he was accustomed to receive in value 20 years ago - years in which the multi phenomenon has flourished, nurtured by the fashion for market forces theory among economists and political leaders. Fortunately, this state-of-mind is becoming less common in the face of the realisation that ever-increasing consumption is neither inevitable nor desirable, to say nothing of its sustainability.
Thirty years ago, the grower's share of the wholesale value of a carton of roast and ground coffee as sold in consuming countries stood at around 30%.
Today, the grower receives only 10%, whilst the consumer still pays what he has always been accustomed to pay for his packet of product, increased by the effects of inflation over the period.
Where has the 20% of retail ( packaged, roasted coffee) value which used to belong to the coffee-grower been moved to? Obviously the consumer has not benefited.
This portion of value has been moved into the sector dominated by the multi-national coffee marketing companies, whose lead is followed by all coffee processors, large and small, in consuming countries.
These entities are making what economists term as super-normal profits, and this situation, being intractable from the position of a single country of origin, or growing country, remains to be addressed.
As already stated above, salesmanship and value-based promotion as well as adherence to desired levels of intrinsic quality and blending types made for individual buyers will help, but increments achieved will be slow even though ongoing once established.
This is the truth for coffee-growers around the world, just as it is for wheat, rice, sugar,tea, and cocoa growers- all producers of raw materials transformed in large quantity by huge, multinational brand-owners into retail products for markets the brand-owners have themselves created.
A truth which is part of the experience of farmers of edible commodities the world around.
First written and published in February 2008 and now ( 2014) updated in response to widespread fears that PNG's established internal and export marketing system is about to be trashed in an uninformed and naive experiment initiated by the DAL Ministry.
The new, small co-operative coffee exporters being created will be, to coin a familiar phrase, the blind, led by the blind. There is no-one in the service of the National Government, it seems, who is knowledgeable enough, or possessed of enough basic commonsense, to understand just how foolish, even childish ( big boys with big toys in a very big sandpit) this move is.
To say nothing of the predictable and conflict-producing outcome.
It should be noted that I have not touched upon the subject of seasonal finance.
It is well-known that PNG's banks are not willing to finance coffee export or coffee processing ventures.
The whole great turnover of some 420,000 tonnes of hand-picked coffee berries ( cherry) into some 60,000 tonnes of ready-to-roast dry green coffee-beans loaded and ready to leave Lae on a ship bound for an overseas destination is born along on a vast cash-float that is in the form of many foreign-currency advances-on-stock-to-be-shipped obtained UNDER ESTABLISHED TRUST AND RELATIONSHIPS as effective unsecured loans.
Now, how about that, Mr Minister?
No matter what vast cash resources are due to pour into Government coffers, the coffee-grower of PNG is not going to believe that ol Gaman ol bai fainensim olgeta kopi em kamap lo han blo mipla ya, em bai gutpla wei na bai ron stret tasol, nogat wari, nogat hevi ya.
Tuesday, September 22, 2015
By JOHN FOWKE
Papua New Guinea's seasonal production of coffee has declined substantially since 2011.
The annual crop has dropped from an average established over 24 years from 1987 of one million 60kg bags per annum, down to 800,000 last year.
A crop of no more than 700,000 bags is estimated for this year ending in December. The crop is expected to fall again by a significant factor in 2016.
This is due to the age of the vast majority of coffee trees which were planted some 55 years ago.
They are increasingly moribund, well past their most fruitful, productive years.
Over time attempts have been made to educate growers in tree-management, principally during the major AIDAB ( predecessor to AusAid )- funded programme of 1988-1993 when the grower-owned and controlled regulatory and advisory/training organisation, the Coffee Industry Corporation, was set up.
Under AIDAB and CIC work commenced in 1990 on industry-wide renovation pruning. Some 30% of coffee growers responded immediately, and others followed as time went on and as resulting better yields were achieved in subsequent years.
Nevertheless, this was a totally-new concept to PNG's subsistence farmers. Whilst experts in terms of the food-crops they have been accustomed to grow over many millennia, they were never known to cultivate fruit-trees in a big way.
Coffee is a fruit, and demands a specific fruit-tree management regime.
PNG small growers were never- right up until today- never- been advised by CIC or the Department of Agriculture that a staged re-planting programme is essential as soon as symptoms of old-age become noticeable.
A suitable inter-planting renewal programme is where some 20 % of existing trees are inter-planted with new seedlings each year.
This to take place in five stages over a five-year period.
In the fourth and subsequent years all the old trees from the first year's inter-planting are removed, yielding ambient light, space, and moisture to the vigorous, new four-year-old plants now coming into bearing.
Both CIC and the increasingly idiosyncratic leadership of the Department of Agriculture employ many highly-educated agricultural scientists and field advisers, but to practical purpose so far as coffee renovation is concerned.
Executive management in both organisations has sat back and talked about a range of policies focussing on marketing whilst the crop-yield falls annually; policies which are laughable in the circumstances and far from the real, urgent needs of the growers.
Far, too, from the needs of the nation, short as it is of foreign-currency derived from export earnings.
And when it is considered that coffee provides almost the only source of cash to most families in the populous but road-starved Highlands provinces, this is not simply an economic crisis.
It is the harbinger of serious social unrest as the years pass.
Sunday, September 20, 2015
Prime Minister Peter O'Neill has congratulated people around the nation for an outstanding week of celebration for 40 years of Independence.
O'Neill made the comment as a week of celebrations drew to a close.
"We have seen national pride on show over the past week, from the capital city to remote villages," the Prime Minister said.
"People have been proudly displaying our nation's flag and the flags of their provinces, with great attendance at national events.
"From Port Moresby the nation watched a world-class concert that celebrated national culture and entertainment, and we saw another large attendance at the flag raising ceremony.
"Papua New Guinea is a great nation and one that all Papua New Guineans can be proud of."
The Prime Minister reiterated his observation that Independence is not only about 40 years of Independence, but the celebration of thousands of years of rich history and culture that has made the country what it is today.
"We celebrate more than 800 languages and cultures that we have developed across our lands.
"We are a nation of diversity that is rich and amazing, and we are a united nation."
"As a country, we have brought together our diversity to create modern Papua New Guinea."
O'Neill said everyone can look back with pride on what the nation has achieved together and look forward with confidence to an even better future for our children.
He said the government will continue to ensure all families have free education, better health care and better community services they are entitles too as citizens of this country.
"The introduction of free school education has been a milestone for our nation. Today, two million of our children are in school at all levels of education."
"But we must build on this. The next steps include improving teacher training and teacher numbers," O'Neill said.
He said the government want more young people to go to universities and do other studies.
"We are increasing places at higher learning institutions each year.
"Our Government will continue to strengthen technical training in our community.
"And through our vocational schools, we will empower our people with skills to get more jobs in key areas of fisheries, tourism and agriculture."
O'Neill said Papua New Guinea may be blessed with many natural resources, but the country's greatest resource by far is the people.