Prime Minister Peter O'Neill
says his government will require all government-owned businesses to set
an example and help drive down cost of living pressures on families and cost
pressures on the business sector.
O'Neill said the
decision to block the proposed power price rise by PNG Power would be followed
up by a wider government policy that requires all state owned businesses to
look at ways to cut costs, be more efficient, and not just rely on increasing
charges.
"For too long
governments have rubber stamped price increases by a range of state enterprises
and the impact on families, and on small business have been huge. That has
almost encouraged the state's power and other entities to be lazy when it comes
to efficiency and driving down costs."
"I am putting all state-owned service providers on notice. My
government will not be automatically approving price and charge increases.
“The Minister for Public
Enterprise and State Investment will be directing all state owned entities to
focus first on efficiencies and cost saving measures before seeking price rises
- especially in what are known as basic service areas, such as power and
water," he said.
O'Neill said his
government would set an example when it came to making the economy more
efficient and competitive - and on keeping increases in service costs as low as
possible.
"We expect the private
sector to follow our example. We need to all work together to make our economy
more efficient, so we can maximise the opportunities our vast natural resources
offer us."
"I have listened to
our people and our businesses - power charges are already very high."
"For too long we have
put the whole question of the efficiency of government services, including
government owned business services, in the 'too hard basket' and the result has
been higher inflation, and even putting basic services, such as electricity
beyond the affordability of families and businesses alike."
"We have made an important start with regard to power price rises.
That approach will be the blueprint for the future."
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