Police Commissioner condemns policeman's shooting

Commissioner of Police Gari Baki has condemned the shooting of a policeman in Lae Morobe province and has vowed to review existing gun laws in an effort to combat crime in the country.

The Commissioner strongly expressed these views today following a shooting incident in which a police constable and a civilian were both shot and injured by a crime suspect at Eriku on Monday night.

First Constable Amos Kowar attached to the Lae Metropolitan station was shot in the face and back when he was about to arrest a crime suspect at Eriku yesterday.

The gunman also shot a man in his right thigh before decamping.

Kowar is in a critical condition at the Angau hospital and police in Morobe have launched a massive man hunt for the suspect identified as Gideon Pokatou in his early twenties from Busuma village Lae in Morobe province.

The injured policeman and his comrades went to Eriku to apprehend Pokatou, a suspect in various crimes including armed robbery and motor vehicle thefts when they were attacked. 

Pokatou was previously arrested and charged for armed robbery and being in possession of a home made gun and live ammunition in 2005.

The suspect allegedly breached a K500 bail condition and was linked to various other crimes.

While condemning the shooting, Mr Baki said mandatory sentences, hefty fines and lengthy jail terms should be introduced and imposed on people who violate gun laws in the country.

He said criminals who use firearms against the people and the state should be thrown into jail and locked away for very long periods.

He said the latest shooting resembles the grim realities faced by policemen and policewomen in their line of duty.

He said he would vigorously pursue the certain recommendations contained in the information paper compiled by the Guns Control Committee in 2005.

As part of efforts undertaken by the Constabulary to control the use of guns in the country a moratorium banning the issuance of new firearm licenses was imposed in 2001.

The moratorium is still effective but we need to amend certain laws to severely punish offenders in our effort to deter gun violence in the country, Commissioner Baki said today.

Commissioner Baki said tougher gun laws will help deter crime and reduce the greater risks faced by police. 

Police investigations into the shootings are continuing.

 

Mr Gari L. Baki, OBE, DPS, C.St.J, QPM

Commissioner of Police

 

Balsa is the wood of the future

Caption: Gunter Isensee of Gunter Balsa Ltd at work with his men at the University of Vudal balsa mill.

By VERONICA MANUK

Communitiesin Papua New Guinea, particularly those in East New Britain, now have the opportunity to receive training on balsa planting and management, processing and mill management.
This follows the establishment of a balsa sawmill at the University of Vudal for training and also to expose farmers to an alternate crop that can support cocoa production.
This sawmill was developed jointly between the University and Gunter Balsa Ltd,  a balsa company from Germany.
This project is geared to promote the  balsa industry in PNG.
The company, Gunter Balsa Ltd, arrived in the campus four months ago to begins its sawmill operation.
Gunter Isensee, the principal of Gunter Balsa Ltd, comes from a family that owns a balsa company in Germany, the Insensee Modellbau.
The Insensee Modelbau Company processes and supplies balsa wood to European markets for furniture making and other industrial products.
With extensive knowledge and skills he has from working with his mother company, he is preparing to train and assist students and local farmers to establish good balsa plantations, harvesting, processing and marketing knowledge and skills to supply overseas and local markets
“We are not only here to mill and produce balsa wood for our mother company,  but the most important aspect in this project is to educate and train students and farmers to plant balsa, process and manage balsa mills in their own communities,” Mr Insensee said.
He believes in future that there will be a big market for balsa wood products and PNG balsa wood will be in high demand.
 “We must be prepared to have a large number of balsa sawmills in PNG to supply the market.
To achieve this, the university and the company aim to produce very skilled and experienced PNG mill managers and technical support who will need to be well trained, not only in mill management, but in technical skills and safety management within the industry.
The company will not be planting its own balsa plantation but will buy from the University and local growers.
“We want to build a long term business relationship with the community,” Mr Insensee said.
Unlike other companies operating the balsa trade, the company will be purchasing and milling the entire tree into blocks, packed and exported to Germany for further processing for the market.
 Recovery from this mill operation is targeted at 80-90%, as branches will also be processed. 
The first balsa house in the Pacific region and the world built from balsa wood will be erected near the mill in few months time.
Vudal University’s head of Forestry Department in the School of Natural Resources, Neville Howcroft, said that although the balsa industry was small, since 1995 the industry had grown significantly and it had diversified from hobby balsa production to industrial balsa, with most of the PNG balsa wood exported to overseas markets
Mr Howcroft said the establishment of the University of Vudal’s balsa mill would provide a good income both for the local balsa growers and the university, and excellent opportunities to train farmers in the establishment and management of balsa and how to mill and market this product.
“Training to support the rural community and industry will also assist keeping us to be competitive on the world markets, because balsa wood products is now fast replacing products developed with asbestos as an complimentary substance for cooling or heat protection” he said .
This provides an alternative as balsa wood products will one day replace plywood and other plastic products.
Asbestos associated products have been banned in many developed countries around the world as it is toxic to humans.

From Balimo to Port Moresby

Captions: 1. The 1979 PNG Pukpuks rugby union team in Suva, Fiji, with Badi Seyawa (second from left, front row). 2. Badi Seyawa (white beard) surrounded by his seven children and nine grandchildren. Picture by AURI EVA. 3. Waliya’s Badi Seyawa does his famous ‘flying tackle’ on University’s Arnold Amet.

 

The opening lyrics of that great song by Bruce Springsteen, Glory Days, came immediately to my mind as I sat down and enjoyed a beer with long-serving Telikom employee and former PNG Pukpuks rugby union legend Badi Seyawa at the Paddys Bar.

I had a friend was a big baseball player

back in high school

He could throw that speedball by you

Make you look like a fool boy

Saw him the other night at this roadside bar

I was walking in, he was walking out

We went back inside sat down had a few drinks

but all he kept talking about was

Glory days,  well they'll pass you by

Glory days, in the wink of a young girl's eye

Glory days, glory days

Seyawa, 59, from Saweda village in Balimo, Western province, leaves Telikom next month after a distinguished 42 years of service to the organisation – from an age of telegraphs to the internet, from the glorious colonial era to what is now a ramshackle Papua New Guinea.

But for all that he has done for the organistion, Seyawa has not been duly recognised,

something that he is somewhat bitter about.

And apart from his career, he also excelled on the rugby union paddock in the halcyon days of the 1970’s and 80’s, as a feared centre for the much-vaunted Waliya team from the Western province, against men like Mekere Morauta, Anthony Siaguru and Arnold Amet,

Those memories of another day, including the loss of his beloved wife Renagi last August, came back as we downed our beers.

“Waliya was ‘the’ team then,” Seyawa reminisces.

“Waliya was the team to beat.

“I was captain/coach and I did some magic things for Waliya.

“We were premiers in 1973, 1974 and 1975.

“In 1977, 1978, we tried and we failed.”

Seyawa, in fact, represented Papua New Guinea at the 1979 South Pacific Games with other great names like Kainantu’s Barevo Amevo, Milne Bay’s Sab Doiwa, Western Highlands’ Philip Num, and fellow Western province ‘barramundis’ Kolesi Mili, Tagala Nago, Wagubi Pilisa and Toby Warapa.

In his photo album is a newspaper cutting of him making a flying tackle on University’s Arnold Amet, team manager of the 1979 SP Games, and who was fated to one day become Chief Justice of PNG and Governor of Madang.

“University beaten in rugby union” screamed the Post-Courier headline of that story by renowned sportswriter Graeme Boyd.

“Last year’s unbeatables University had their colours lowered for the first time in 14 months when they met Waliya in the Port Moresby pre-season rugby union competition on Saturday,” wrote Boyd.

“Waliya ran out winners 16-10.

“The men who made the game for Waliya were Badi Seyawa and Kapiya Mase.”

The Balimo warrior has come a long way since he started school at the Evangelical Field Mission in 1955.

“I completed grade 4 there and then I was selected to government school at Balimo Primary School,” he recalls.

“From Grade 5, I was selected for Grade 6 with my brother.

“Four of us were selected to go to Daru Post-Primary School in 1962.

“Out of the four of us, I was selected to go to Kerema Junior High School.

“I spent three years there and graduated in 1965, with Sir Mekere Morauta being my senior at that time.

“I was selected to come to Sogeri Senior High in 1966.

“As soon as I completed Form 4 in 1966, Post & Telegraphs got me.

“I was on holidays when they sent me a letter, and I joined them on March 22, 1967.

“I grew up with a Christian family and I wouldn’t have achieved all this without a Christian upbringing.

“I must thank them (family) and thank God for bringing me up to what I am today.”

Seyawa started off very humbly in those far-off days.

“I started off as a clerical assistant,” he tells me.

“I started off at the post office in downtown Port Moresby.

“That’s where the P & T head office was.

“My job was to bill the customers who were using our system.

“P& T was under the Australian government.

“In 1970 and ’71, I was selected to go down to Sydney for the Commonwealth practical scheme.

“There were two of us from P & T selected to do this training for six months in Sydney.

“I was attached to the Post Master General’s billing office in Sydney.

“After I came back, I was given the responsibility of looking after telephone accounts.

“I was in that job for about two years.

“After the two years, I was given another position as administrative officer, which was basically recruitment, training, and everything human resource.

“Organisational changes saw me promoted to divisional administrative officer of finance, the position which I’ve been holding for 37 years now.”

The technological changes which have taken place over the last 42 years, including the growth of Port Moresby and PNG, have been phenomenal for Seyawa.

“Technologically, there have been very big changes over the years,” he says.

“Whatever has taken place from when I started up to now is hard to describe.

“My life within the Telikom organisation has been like a family, which I grew up in.

“The changes have been remarkable.

“My simple advice to our young people is to be committed, dedicated, honest and respect your superiors.

“That’s what I did and all my friends have all the respect for me.

“These four things made me what I am today.”

Badi Seyawa officially finishes from Telikom on March 14, 2009, exactly 42 years after he started with the then P & T.

The loss of Renagi, from Gagagaba village outside Port Moresby, his beloved partner of many years last August, brings tears to his eyes as he brushes his white beard.

“I’ve got a lot of plans for my kids,” Seyawa says.

“I’ve got seven kids and nine bubus (grandchildren).

“Coming from Balimo to Port Moresby is a long way.”

 

Port Moresby morgue bodies finally laid to rest

Those of you who have been following the Port Moresby morgue saga would be pleased to hear that the rotting corpses - which caused a big stink recently - were finally laid to rest at Nine-Mile Cemetery last Friday.

A total 75 corpses, including 26 babies, and various body parts (limbs) were mass buried.

I spent the day at the morgue and later at Nine-Mile with two Australian photographers and it was a very 'smelly' affair.

In traditional Papua New Guinea society, bodies of the dead are treated with respect, however, this seems not to have been the case.

My apologies

My apologies to the many readers of this blog from all over the world for what seems to have been a deliberate attempt by outside forces to hack this blog and post junk.
Those of you who read this blog over the weekend may have noticed the two junk postings from Nigerian scammers.
This was not my doing and I sincerely apologise if you thought it was my doing.

Malum

A thought for Valentine's Day

Hula, my Darling,

Today, I will see all the lovers having a good time, but you are not here to share with me.

Why, why, why?

The times we spent together, in Lae, Goroka, Port Moresby, will be cherised forever.

You left me all alone on March 23, 2008, with our four lovely young children.

This picture is one of the happy times we had in Goroka in 1999.

Hula, I WILL ALWAYS LOVE YOU!

Malum

Happy 7th Birthday Gedi 'Boy' Nalu

Happy 7th Birthday to my second son, Gedi 'Boy' Nalu Jr, who turns seven years old today, Friday, February 13, 2009.

I love you son, and God Bless You as Your prepare to take your place in this wide, wide world.

Love from Dad, as well as big brother Malum Nalu Jr, sister Moasing, and baby Keith, plus family and friends in Daru, Lae, Goroka, Papua New Guinea, Australia and the world.

Papua New Guineans join BBC Expedition

Over 20 Papua New Guineans are part of a group of 50 scientists, explorers and TV presenters on a BBC expedition to one of Papua New Guinea’s last frontiers, Southern Highlands Province’s Mt Bosavi.

The team, who are part of the world-renown BBC Natural History Unit, are filming a major TV documentary series entitled ‘Expedition New Guinea’ which will be aired in the UK and around the world towards the end of the year.

Daniel Huertas, a British researcher with the group, highlighted the international composition of the expedition team and in particular the pivotal role played by the PNG participants.

“We have a number of PNG scientists and local community members assisting and advising the international team in species recognition and location finding. The project would not be possible without the support and amazing knowledge of our colleagues from Port Moresby, Kiunga, Fogomaiyu, Talisu and Siena Falls,” he said.

British High Commissioner to PNG, David Dunn, welcomed the team to PNG and highlighted that the shooting of such a major documentary series reinforced the special relationship between the BBC Natural History Unit and PNG, which started more than 50 years ago by British broadcaster and naturalist Sir David Attenborough.

“Sir David's ‘Zoo Guest’ series, which heralded his entry into wildlife television documentaries and 50 years of broadcasting, brought him to PNG in 1957. That much remembered pioneering series changed the way broadcasters filmed natural history forever and opened the wonders and beauty of the planet and in particular PNG to the world. Although the technology has changed dramatically since those early days the warmth of the welcome and generous support given to the numerous and regular visiting BBC teams by the people of PNG has not. I would like to thank the Government of PNG and all those associated for their continued help, support and collaboration and I look forward to PNG showcasing to the world its amazing beauty and bio-diversity through the Expedition New Guinea programmes,” he added. 

Mt Bosavi, a dormant volcano endemically rich in flora and fauna, has been the subject of various studies by international research and conservation groups in recent years.

Mr Huertas said the mountain’s isolation and the enthusiasm of the local communities for their forest to be part of the documentary series made it the first choice for the BBC.

·        The expedition team’s adventures can be tracked through the BBC Science and Nature News website http://news.bbc.co.uk/2/hi/science/nature and a Blog by expedition member and the University of California’s curator and department chair for ornithology and mammalogy, Dr John Dumbacher http://www.calacademy.org/blogs/jdumbacher/

 

200

By IAN TAUKURO

 

I'm on a roll today, lads...

Today marks the 200th birthday of two great men of history.

The first devised a theory that still causes much debate and controversy

among scientists and is a constant irritation to the church, although,

atheist's rejoice in the theory's teachings.

Let us all stand and offer a round of applause for the late but great,

Charles Darwin, who was born on February 12, 1809.

His theory of Natural Selection, which promoted the idea of evolution,

when first put forward, represented a great challenge to the teachings

of the church which, based on the bible, said all living things on the

planet are the result of Intelligent Design.

The other great man whose birthday was on February 12, 1809 is Abraham

Lincoln, who was the 16th US president who served from 1860 to 1865.

A great monument in his honour stands there in Washington DC erected as

a token of appreciation by the American people for what he did to save

the United States.

If a lesser man had been president during those tumultuous years of the

American Civil War, the United States would surely have become two

separate nations, North and South. It would never have grown into the

powerful nation that it is today. Lincoln realized that blood must be

shed to protect the ideals of freedom and democracy and, on the fateful

day in 1860, made the decision to send in supplies to Fort Sumter in

North Carolina, which was considered an act of war by the Confederacy,

the rival government to the US government, whose troops had surrounded

the fort. So began the Civil War, which went on for 5 years, ending soon

after Lincoln's assassination in 1865. America emerged from the heat of

battle bloodied and weary but re-born nonetheless.

Aside from the Lincoln Memorial, there is even a powerful warship, the

USS Abraham Lincoln, an aircraft carrier that patrols the high seas,

protecting the interests of the US just like the great man did when he

was alive.

What's common to Lincoln and Darwin? Well, aside from being full of

character and virtue they both had that unshakable belief in themselves

and the decisions they made and they never gave up as a result.

That's a good lesson for us all to learn ... whatever you do, don't

quit!

 

Ian

 

A thought for Valentine's Day

By IAN TAUKURO

Morning All,

What is it with women's magazines that they always have to publish some article about how to keep track of the man?

For instance, In the Post Courier's New Age Woman today there is an article about how to 'See if your man is cheating you'. What the author of the article perhaps doesn't realise is that women who live in safe and secure relationships with a man who loves them dearly will read this story and, voila, the first seeds of doubt will be planted in their heads.

After reading the article, the woman, who suddenly feels very insecure because of what she has just read, will start to observe her partner, who oblivious to the 'cheaters' advice in the magazine, greets his wife with a kiss and a warm hug, then goes about his business of helping/playing with the children, helping with the dishes, etc, while the woman watches, like a hawk, with a calm but very suspicious eye.

Over the course of time, the poor man does something that causes the woman to believe that he is, yes, really, really, cheating, when he suddenly becomes withdrawn and distant, all because that particular day he privately mourned the loss of his favourite NRL team!

So the arguments start, the furniture gets broken as the war rages, the love nest, their home, becomes a battleground, the children are neglected, the neighbours gossip, etc, etc, etc ... and all because of a silly article in a magazine!

Is it any wonder that there is so much misery and heartache in relationships today because of SUSPICION of cheating when the aggrieved party (i.e. the woman) has really no need to feel threatened at all?

Where have trust, loyalty and faith gone these days? We seem so keen on looking for fault in each other rather than being thankful for what our partner contributes to the relationship.

An interesting article by NAW and great timing too, don't you think?

Right on the eve of Valentines Day, a day when couples should be relaxed and joyous as they celebrate the warmth and clarity of their love – not being suspicious of each other.

Ian

 

Five shot dead in fresh tribal clash

By ZACHERY PER
FIVE people were shot dead in a tribal conflict in Unggai-Bena district in Eastern Highlands province only days after MPs visited the area and called for an end to tribal fighting, The National reports.
In a dawn raid on Monday, Nagamie clansmen ransacked their arch-rival Bogerigu village at Katagu and killed five people and seriously injured another two.
Eastern Highlands police commander Supt Teddy Tei confirmed the killing yesterday.
Just last Tuesday, Unggai-Bena MP and Minister for Environment and Conservation Benny Allan, Works Minister Don Polye, Education Minister James Marape, Obura-Wonenara MP John Boito and Lufa MP Yawa Silupa were in the area to launch projects worth K48 million.
The district has in the past been ravaged by tribal fights involving the use of guns, with many lives lost.
During the launch of the projects, the MPs called for an end to tribal fights.
But the plea by the leaders appears to have fallen on deaf ears.
“The clan mobilised and went to Katagu and attacked their rival Bogerigu clan.
“Church leaders at Katagu retrieved bodies of the five killed and buried them while two others seriously injured were admitted at the Goroka Base Hospital,” Supt Tei said.
The two are in critical condition at the intensive care unit of the hospital.
Supt Tei said both warring clans originated from the Kafe area in neighbouring Henganofi district.
The tribal fight erupted some years ago and has been an ongoing battle ever since.
On Aug 29 last year, Supt Tei and Mr Allan brokered a peace agreement where leaders of both factions signed agreement to stop the fight.
This peace agreement has now been breached, and Supt Tei said the Nagamie clan was to blame for launching the attack.
“Despite the time, resources and efforts we wasted to negotiate peace, the Nagamie clansmen decide to attack their rival. “I strongly condemn their actions,” Supt Tei said

Police probing New Zealand envoy's hold-up

By SAMSON KENDEMAN
National Capital District police are working to arrest the suspects who robbed New Zealand High Commissioner to PNG Niels Holm last Friday, The National reports.
NCD superintendent of operations Chief Insp Andy Bawa last night said the suspects, two of whose identities were known to the police, were still at large.
Police personnel were deployed to the settlements near the Golf Club, including Morata, on Monday to meet with the community leaders and urge them to surrender the suspects promptly.
“I call on the community leaders living around the Golf Club area to fully cooperate with police to ensure all suspects are handed over to police.
“I will not tolerate such things done to diplomats working in the country,” Chief Insp Bawa said.
The community leaders assured police that the suspects would be handed over since their identities were known to them.
According to initial reports, eight men ran out from behind the utilities shed and robbed Mr Holm and three of his golfing partners.
Mr Holm is the second New Zealand High Commissioner to be held up on the golf course in recent years.
The NZ High Commission, when contacted yesterday, said it had not yet seen the police report.
In an email, the High Commission noted that it was grateful for the prompt response of the police immediately after the incident, and would now wait for the law to take its course.

 

Manufacturing sector stands to lose on tariff reforms

By CHEY SCOVELL

CEO

PNG Manufacturers Council

 

In early April last year the Treasury Department, made publically available the “Review of the Tariff Reduction Program July 2007”, a document that had only just been endorsed by the NEC.

 But what is this document and what exactly does the NEC’s endorsement of it mean?

This report, often referred to as the Scollay Report, is a review of the Tariff Reduction Program, prepared by Associate Professor Robert Scollay of the University of Auckland. 

The report was prepared for and presented to the Department of Treasury in July 2007. 

For reasons unknown the Government of PNG did not allow the public to assess the report until after the NEC endorsed it. 

In only what can be seen as a stark contradiction to the government’s intention to entice investment and private sector support as well as provide stability, the government did not allow for any private sector consultation on the proposed final report and in the months since the NEC endorsed the report there have been no calls for community consultations on the matter.

As a background, there were two papers on tariff reform in PNG: the Brogan Tariff Review in 1986; and the World Bank Tariff Review in 1995. 

Cabinet in 1995 (NEC Decision No 196/95) endorsed a tariff reform program that culminated in a White Paper on the Tariff Reform Program (TRP). 

The intention of the TRP was to encourage the development of a more-efficient and more -roductive private sector being more exposed to competition.

 The TRP removed many tariffs all together, saw the introduction of VAT (or GST) and proposed an eight-year tariff reduction program from 1999 to 2006.

With the TRP coming to an end in 2006, the government contracted the services of Scollay to review the TRP and provide some recommendations on the next steps and his report contains 14 such recommendations. 

Without discrediting Scollay, his 2007 report is somewhat of a back flip on a report he earlier prepared for the Manufacturers Council in October 2005 on Proposals for the Future of the Tariff Reform Program. 

His latest work seemingly encouraging changes to public policy that will effectively throw wounded PNG manufacturers amongst the wolves.

Perhaps unfortunately, in the climate of considerable increases to living costs especially over the past 12 months, local manufacturers stand to be big losers as politicians scramble to gain applause for reducing the cost of living under the guise of tariff reform.

 It must be noted that local manufacturers losing equates to the people losing.

In any of the tariff reform reviews, in so far as the manufacturing sector is concerned, the intention has been to enhance the sector either by protection or exposure.

 A commonality in each review was the high cost of doing business in PNG as a direct result of inadequate infrastructure and support services.

 It was indeed the expectation of PNG manufacturers, the public and the architects of the White Paper for the Government of PNG to make continuous and substantial improvements to infrastructure and support services.

The 2007 report by Scollay notes that impediments caused by these failures are adversely affecting private sector performance, in fact in Scollays third recommendation makes clear that there should be tangible results on improvements to infrastructure and support services before the 2009 Budget.

 Yet the report recommends the introduction of further tariff reductions in line with the handing down of the 2009 budget. 

A major concern of the Council and its members is the stark reality that very little to no improvements can be made to infrastructure and support services by the end of 2008.

One should ask who is asking for further tariff reductions and why PNG should be making moves to move closer to zero tariffs.

 Presently PNG rates in the top 10% worldwide for low tariffs, in fact we are an anomaly being ranked as such considering our state of development.

In an environment of high inflationary pressures it’s understood that consumers are searching for cheaper goods, and certainly in PNG retailers would prefer access to cheaply made foreign goods without tariffs.

There is no hiding behind PNG Manufacturers striving to be profitable, there is also no evidence that retailers would pass on the benefits of cheaper goods to consumers. 

The IRC confirms that duty avoidance is a problem in PNG, goods are being imported without duties paid and benefits are not being passed onto consumers.

Taxpayers and the wider community should not finance ineffective businesses, the private sector should target its efforts in areas in which PNG has a comparative advantage for production.

 If we accept the current level of infrastructure and support services (education, health, law and order) as adequate and not requiring improvement, academics could argue that those industries that fail if tariffs are reduced should fail. 

If however, existing infrastructure and support services are regarded as inadequate, why not offer temporary relief? 

In consultations with Scollay, the Manufacturers Council and its members proposed that further reforms should be linked to improvements in infrastructure and support services.

Perhaps the most important matter to consider when calling for further tariff reductions is its implications on PNG manufacturers. 

In the absence of any real improvements to infrastructure and support services, the high cost of doing business means that manufacturers will cease to trade and this will result in massive job losses in urban areas.

The question rolling around in my mind is what will be the real outcome from removing another 5 to 10% off the price of imported consumer goods for Papua New Guineans?

 

 

Manufacturers Council of PNG positions of Electricity, Highlands Highway, Minimum Wages, Telecommunications

The “Manufacturers Council of PNG - Position” reflects the official position of the Council for the noted subject.  The Council recognises the importance of a collective position on key issues relating to our manufacturing industry.  The Councils position shall endeavour to facilitate a collective voice and action to build and maintain an efficient and competitive PNG manufacturing sector.

Issue – Electricity Supply & Generation

Background

Power is an essential input for manufacturing.  The cost of power in PNG is substantially higher than in our neighbouring nations and even in comparison to our African, Caribbean, Pacific (ACP) partners.  The reliability of supply both in availability and quality is unsatisfactory.  PNG Power is the state owned entity that is responsible sole commercial supplier of electricity in PNG.

The state has a very poor record in both the provision and maintenance of power generation infrastructure and whilst PNG Power has an improvement program in place it has been noted that PNG will not have a sufficient and reliable solution in place for at least three to five years.

There are many impediments to doing business in PNG and each of these impediments increase the costs of doing business.  All of these impediments multiply the cost of conducting business in PNG as each member is affected by the sum of all the impediments. 

Issues

PNG Power is currently unable to provide sufficient power with redundancy (sufficient back up supply when there are outages).  To compensate for this Manufacturers are required to maintain alternative power supply arrangements (generators etc).  In addition to the capital outlay for back-up generators and maintenance the very high cost for fuel makes it very expensive.

The frequency of outages for members is high, over the past twelve months outages occur weekly if not daily.

There is a disparity of power availability between Port Moresby and Lae. It must be said that nationally the affordability and reliability of supply is inadequate, however Lae users are worse off with PNG Power having no redundancy and is only just able to meet the minimum load requirement.

The quality of the power supply is also of concern; the majority of members are required to outlay considerable amounts of money to install their own commercial power regulators to protect their plant from the frequent spikes.

The explanations for the majority of outages is understandable, however it does not alleviate the financial burden placed on members.

Several high energy using Members have entered into arrangements with PNG Power to self-supply throughout peak periods to ensure less outages overall.

Position

It is the official position of the Council that power supply must be readily available, affordable and of a satisfactory quality.

The Council has called upon the Government to ensure sufficient funds are made available to provide and maintain an acceptable baseline of power supply.  Rural electrification is important however it is considered that the rectification of commercial centres power supply must be prioritised.

GoPNG and PNG Power must recognise the contribution that manufacturing makes to the economy, in particular employment and note that the high cost of power in PNG constrains productivity of our Members.  Any options that improve the affordability, reliability and efficiency of power for manufacturers should be investigated and supported by all parties.

Issue – Highlands Highway Network

Background

The Highlands Highway is the generic term of reference given to describe the network of roads that connect a number of highlands and coastal centres. These roads are the main transportation routes for commerce between the majority of PNG’s commercial and provincial centres.

There are many impediments to doing business in PNG and each of these impediments increase the costs of doing business.  All of these impediments multiply the cost of conducting business in PNG as each member is affected by the sum of all the impediments.

Issues

Currently the Highlands Highway network presents major problems to all users. The road network is in a very poor state and is plagued with chronic law and order problems.  The maintenance and accessibility of the roads is severely impeded by landowner issues and the complexities of the management of this infrastructure falling under many levels of government (state, provincial and local).

It is acknowledged that vast amounts of money have been allocated for the maintenance, improvement and extension of the Highlands Highway network.  The combination of poor service delivery from contractors and volume of compensation payouts to landowners ensures that value for money from any funding is seldom evident.

All members that use the Highlands Highway report significant increases in the cost of their operations from theft and delays from the poor conditions of the roads.  It is common for goods to be transferred from truck to truck due to cut-off roads, as well as using door-to-door security escorts.

Not linked directly to the assets, it should however be noted that ongoing increases for the cost of fuel has further increased haulage costs.  The compounding affects of all the additional costs of doing business means that Members have little choice but to pass on the costs.

These issues have been ongoing for a long time now.  The increased costs of doing business causes upward pressures on gate prices and adversely affect both general inflation and the consumers’ purchasing power.

Position

It is the official position of the Council that there is exists a major, genuine need to immediately address and improve the operating efficiency of the Highlands Highway network.

It is vital that the access to Highlands Highway network be unfettered and that the entire network be maintained in accordance with PNG standards for commercial freight roads.  Members of the Council are also strongly encouraged to ensure that their goods are not transported on vehicles that exceed the maximum weights.

The Council encourages any measures to simplify the processes for the improvement and management of the Highlands Highway network and maintains a view that landowner claims should be both legitimate and minimal when claiming against the provision of basic, required public utilities and infrastructure (such as roads, power, water and telecommunications).  Any and all contracts awarded must be done in accordance with GoPNG procedures and roads should be built fit for purpose with the highest of recognised standards.

Issue – Minimum Wage Board Determination (Jan09)

The Manufacturers Council of PNG (MCPNG) has noted with interest the determination of the Minimum Wages Board (MWB) handed down on Friday 30th January 2009.

Whilst the Council and its members concur that a review of the minimum wage rate is long overdue, it notes its concern at the level of the increase (equivalent to 250% on wage cost alone) and the burden this will place on industry in PNG.

Under the Mid Term and Long Term Development Strategies, the Government of PNG has stated its aims of increasing output in downstream processing and value add industries with a view to increasing GDP and employment in the country.

The Council feels that such a substantial increase in the operating costs of businesses will lead to negative economic benefits in the following ways:

1.      Businesses will be forced to rationalise their workforces to reduce the impact of the additional cost leading to higher unemployment especially in the urban areas

2.      Companies currently exporting from PNG will lose competitive advantage due to higher costs, the level of export from PNG is already in decline due to falling global demand for commodities and the impact of the Kina’s strength with its trading partners

3.      As businesses costs rise, it would be not be unreasonable to expect a rise in the costs of goods and services leading to inflationary pressure negating any benefit from the increase in the base rate

In short, it is likely that such a severe increase in the minimum wage rate will lead to lower output, higher unemployment and increased inflation.

As mentioned, the MCPNG agrees that a review of the minimum wage is necessary; however that it should be in line with the economic realities during the current global crisis, and allows all participants in the business sector to gain.

Issue – Telecommunications

Background

Telecommunications refers to the provision of both voice and data services.

Until recently there has been a sole State-owned supplier for telecommunications in PNG, in 2007 the government opened completion in the mobile voice services market.

Landowner issues and vandalism have significantly hindered the State ability to supply reliable and affordable telecommunication services.

There are many impediments to doing business in PNG and each of these impediments increase the costs of doing business.  All of these impediments multiply the cost of conducting business in PNG as each member is affected by the sum of all the impediments.

Issues

The cost of voice and data services in PNG is acknowledged as being as one of the most-expensive in the world.  The introduction of competition in the mobile voice segment has brought about large cost savings; this has however been of limited benefit to most businesses due to their being no interconnectivity between carriers.

The quality of the state owned voice and data services has been severely unsatisfactory; the network suffers frequently from congestion and outages.

In terms of data services GoPNG officials recently announced that PNG was in the top 5% of the world of most-expensive data services, and it should also be noted that transfer speeds well below international standards.

Businesses and individuals are currently severely impeded by the quality, reliability and affordability of telecommunications.

Position

It is the official position of the Council that telecommunications must be readily available, affordable and reliable.  The Government must quickly address interconnectivity problems, and ensure that government policy does not hamper any improvements to the access of affordable and reliable telecommunications.

The Council notes the tremendous problems with vandalism to the networks and supports the strengthening of law enforcement agencies and judicial system to manage this problem and maintains a view that landowner claims should be both legitimate and minimal when claiming against the provision of basic, required public utilities and infrastructure (such as roads, power, water and telecommunications).

The Council is disappointed that GoPNG did not adequately consult stakeholders before endorsing the ICT Bill.  It is the view of the Council that the Government should actively seek and consider the views of the private sector when formulating policy, in particular policy that is tied directly to the effectiveness and profitability of businesses.

The Council shall accept GoPNG positions that endeavour to provide reliable, affordable telecommunications, and asks that GoPNG recognises that expensive and unreliable voice and data services restrict businesses.

 

Manufacturing sector in Papua New Guinea moves forward

By CHEY SCOVELL
CEO
Papua New Guinea Manufacturers Council

The manufacturing sector in Papua New Guinea continues to strive forward making valuable contributions to the ongoing socio-economic development of Papua New Guinea and the private sector growth. 
Major reform initiatives such as SME policies, tariff reforms reviews and regional agreements have assisted in the expansion of the Manufacturing sector in PNG and continues to offer the opportunity to replace imports of consumer goods and services. 
The recent signing of the interim Agreement with the European Union paves the way for opportunities to export product to the EU states, quota and duty free.
The Manufacturers Council is a non-government organisation, which was formed in 1991, to promote the Manufacturing and downstream processing sector within PNG. 
The Council provides a wide range of services and assistance to existing and potential manufacturers in the country and sees its role towards its Members as threefold: Promotion, Assistance, and Information. 
The Council also provides an input conduit between the private and public sector.
The Council works closely across business sectors and government to promote and strengthen manufacturing industries in PNG. 
The Council influences change through its work in state economic committees such as the Impediments to Business and Investment Committee and National Institute of Standards and Industrial Technology, WTO and various ICCC sub-committees.
Whilst maintenance of public infrastructure (roads, power and telecommunications supply) law and order and the increased cost of input materials (generally as flow-on impacts from high oil prices to the ongoing drought in Australia, and regional exchange rate movements) continues to place additional constraints on PNG Manufacturers, they continue to supply markets and capture new ones.
PNG is a developing economy and is growing at a steady rate, supported by the resource sector (such as mining, oil and gas).
 Despite growth constraints PNG Manufacturers have continued to improve export opportunities and grow at an average rate of 6.5% per annum over the last 10 years. 
The manufacturing sector has continued to employ approximately 25% of the private sector formal workforce in.
PNG’s export strength lies in our ability to competitively convert home grown raw materials into finished products (competitively meaning, to be able to produce a like good or product for less than our competitors).
 The Council is committed to ensuring its members obtain the maximum tariff exemptions on goods and material imported into the country, for genuine manufacturing purposes. 
This is seen as being of enormous benefit, not only to the manufacturing industrial sector, and equally important, to all consumers of PNG-MADE products.
 In addition, the Council deals with other private sector organisations, in negotiating prices for the industry, in the supply of goods and services.
The Council works towards improving the standard of products made in Papua New Guinea.
The PNG-MADE logo was launched in the 1990’s, to promote PNG-MADE goods in the local and export markets.
The logo was established in order that these products are competitive and that there be instilled in all citizens, a sense of pride to see the words MADE IN PAPUA NEW GUINEA, on items for sale throughout this Nation.
For further information on becoming a member of the Manufacturers Council of Papua New Guinea, contact the Chief Executive Officer on (675) 321 7143.