World Bank-funded coffee project to be launched in Goroka

By MALUM NALU
The coffee segment of the Productive Partnership in Agriculture Project (PPAP) will be launched next Tuesday at the Mark Solon Auditorium of the University of Goroka.

A smallholder coffee growers’ field training in Wahgi Valley, Western Highlands province.Improving the livelihood of smallholder growers is one of the objectives of the PPAP.-Picture by MALUM NALU

PPAP is a joint World Bank and International Fund for Agriculture Development (IFAD) - financed project covering both the cocoa and coffee sub-sectors.
The project commenced in January.
Project mobilisation was expected to be completed in last month, with the launching next Tuesday.
The development objective of the PPAP is to improve the livelihoods of smallholder cocoa and coffee producers through the improvement of the performance and sustainability of value chains in the cocoa and coffee-growing areas.
This will be achieved through strengthening industry coordination and institutions, facilitating linkages between smallholder farmers and agri-business for the provision of technologies and services, and through the provision of critical market access infrastructure.
The project will be launched by Finance and Treasury Minister Peter O’ Neill and witnessed by provincial and district administration staff and political heads from Western Highlands, Chimbu and Western Highlands provinces.
There will also be representation from coffee exporters, processors, plantations and the all-important smallholder growers.
Guests will include Eastern Highlands Governor Malcolm Kela Smith, Department of Agriculture and Livestock deputy secretary and PPAP project preparation team leader Francis Daink, as well as CIC board chairman and Eastern Highlands small growers’ chairman James Korarome, Western Highlands small growers’ chairman Peter Kewa, PNG blockholders’ chairman Pugma Kopi and Jiwaka small growers’ chairman James Koimo.

Pyrethrum has lots of potential for Papua New Guinea

By MALUM NALU

Daisy-like pyrethrum flower at the experimental paddock at Tambul, Western Highlands.Pictures by MALUM NALU

Pyrethrum is not a high-profile cash crop such as coffee; however, it is a potential money-spinner for 880,000 people dwelling in high altitude areas where coffee cannot grow.
Potential pyrethrum-growing areas include Laiagam, Kandep, Wabag and Wapenamanda areas of Enga province; Tambul of Western Highlands; Ialibu and Upper Mendi areas of Southern Highlands; Kerowagi, Gumine and Gembogl areas of Chimbu; and Okapa, Henganofi and Lufa areas of Eastern Highlands.
Pyrethrum (Tanacetum cinerariaefolium) is a daisy-like plant which is cultivated for the production of pyrethrins and insecticides (insect poison).
It has six active chemicals which do not harm people or animals and rapidly degrades in the environment (no residue problems), and has low risk of insect resistance
Currently, according to pyrethrum scientists Kud Sitango and Enopa Lindsay of the National Agriculture Research Institute, 90% of the pyrethrum is grown in Enga Province, with production having ceased in other pyrethrum-growing areas

NARI’s ‘Team Pyrethrum’ (from left) team leader Kud Sitango, field assistant Danny Momo, scientist Enopa Lindsay and field assistant Kennufa Moui at the project signboard in Tambul, Western Highlands.

People, however, can make money by growing pyrethrum, with current production estimated at 50-60 tonnes per year and generating income valued at about K150, 000 annually.
Most of this is from Laigam in Enga.
Sitango and Lindsay say pyrethrum is suitable a farm crop because:

• In PNG it is non-seasonal, all year-around crop;

• There are always flowers to harvest and sell;

• It can be stored;

• It can always be sold even though the price is not high;

• It can be grown in small plots or around the base of the kaukau (sweet potato) mound;

• It can be worked by hand labor alone and requires little capital,

• It is easy to grow because planting materials are readily available and easily obtained; and

• It is currently regarded as the “women and children’s crop” in Enga Province.

A four-year Australian Centre for Integrated Agriculture Research (ACIAR) pyrethrum project started in January 2007 and ended in December 2010, however, according to Sitango and Lindsay, “most of the planned activities were implemented partially completed due to lack of appropriate knowledge and supervision”.
“Pyrethrum was introduced into PNG on trial basis in the late 1950s and it became a good attractive cash crop for the highlands (above2, 000 metres),” they said in their ACIAR report.

Dried pyrethrum flowers.

“From the 1960s to the late 1980s, the pyrethrum industry played a major role in sustaining the livelihood of some 65-85,000 people in the highland areas.
“Local women, children and old people were the key workers in this industry and these important social groupings were the key beneficiaries from this industry.
“In 1995, the pyrethrum extraction factory that purchased the crop from the growers closed down and this resulted in a lot of primarily subsistence farmers losing their major source of cash income.
“In 2000-2001, the Enga provincial government purchased this extraction factory and spent some $A1.2 million to re-commission this factory.
“Pre-1995, all of the pyrethrum crude extract, called oleoresin, produced in PNG was sold to an American company.
“This marketing arrangement ceased when the factory closed in 1995 and the PNG industry has not been able to re-establish a market for their pyrethrum extract products.

Pyrethrum seeds.

“There are two main reasons for this failure to gain a marketing position: Pyrethrum is an insecticide and producers are required to have access to the full toxicology, ecotoxicology and use pattern Data Package before their products can obtain access into the vast majority of world markets.
“Unfortunately, the PNG industry does not have access to this data and the costs of obtaining this Data Package are in the order of $A3-4 million.
“The pyrethrum oleoresin produced by the PNG industry requires an additional refining process before it can be used by the product formulators and there are only three major pyrethrum refineries in the world.
“Botanical Resources Australia–Agricultural Services Pty Ltd (BRA) developed a business arrangement with the Enga Government in late October 2005 to buy pyrethrum.
“BRA is one of the two largest pyrethrum producers in the world producing 40% of the world usage of pyrethrum products.
“BRA has a modern and technologically-advanced production and manufacturing facility in Tasmania and a strong production base in Tasmania.
“BRA is also a share owner of a comprehensive Data Package on pyrethrum, including detailed information on toxicology, enviro-toxicology, residue, efficacy and risk analysis for a wide range of situations.
“BRA has used this data to support the registration of pyrethrum in all of the major markets, including the USA, Europe, Japan, Korea as well as Australia.
“Without access to this data package or a similar data package, a pyrethrum producer will not be able to register their product in these major world markets.
“The PNG industry is still recovering from the joint shock of the factory closure and the subsequent withdrawal of the key US pyrethrum buyer.”

Team leader Kud Sitango, field assistant Danny Momo, scientist Enopa Lindsay and field assistant Kennufa Moui around a pyrethrum flower in Tambul

All is not lost, however, thanks to NARI and the Enga provincial government.
Enga provincial government’s objective on pyrethrum is to alleviate poverty and improve cash income in the province, promoting it as cash crop
NARI’s objective on pyrethrum is an emerging crop and potential cash crop for high altitude to improve cash income problem faced by 880, 000 people, (15% of total 5.5million PNG population).
NARI, and the unwavering support of the Enga provincial government – through its Enga Pyrethrum Company, which runs the Kagamuga pyrethrum extraction factory in Mt Hagen – and of course a small band of dedicated farmers has seen pyrethrum continue to thrive.

K110 million for roads okayed by cabinet

PROVINCIAL and rural roads in 10 provinces will be given US$43 million (K110 million) over the next five years for phase two of the roads maintenance and rehabilitation project (RMRP II), The National reports.
Cabinet approved the World Bank’s proposed credit financing yesterday and agreed to pump in US$10 million (K26 million) as counterpart funding.
Acting Prime Minister Sam Abal said this would be appropriated in the national budget over a five-year period beginning next year.
He said NEC recently endorsed an equivalent of special drawing rights (SDR) US$27.4 million from the World Bank’s international development association (IDA) to pay for the road project.
Provinces included under the RMRP were East and West New Britian, Manus, Northern, Morobe, Gulf, Central, Madang, Milne Bay and Western.
“The RMRP will focus on national and district roads and is set to start in the latter part of 2011 and will continue until 2016.
“The World Bank’s involvement in the roads sector is to continue its support of the national transport strategy,” Abal said.
He said this strategy would concentrate on limited resources and investment in the areas of greatest economic potential, thereby maximising the opportunities for development and growth, both nationally and regionally.
Abal, who is also works minister, said the government had recognised the importance of adequate transport infrastructure and had reflected this in its development blueprints – Vision 2050, PNG development strategic plan 2010-30 and the medium-term development plan 2011-15.

Gulf administrator on K131,000 misappropriation charge

By JUNIOR UKAHA
ACTING Gulf provincial administrator Simon Peter has been charged with misappropriating more than K131,000 from the provincial account, The National reports.
Peter, 42, from Passam village in Wewak, East Sepik, was arrested by NCD police yesterday in Port Moresby.
He is understood to have been detained at the Boroko police cells awaiting his court appearance this week.
According to police briefs, Peter was alleged to have authorised payments to Gulf Governor Havila Kavo the money for personal emoluments from resources memorandum of agreement (MoA) funds in the provincial accounts between January and February last year.
The purpose of the payments to Kavo was not disclosed by police but investigators asserted that it was illegal for the provincial administrator to draw money from the province’s account to pay the politician when he (governor) was already on a parliamentary payroll.
It was understood that the Gulf provincial administration was operating on an ad hoc basis out of Port Moresby since last year.
NCD metropolitan commander Supt Joseph Tondop confirmed the arrest and said that it was unfortunate that people vested with trust and authority should betray their position and do selfish acts.
“Police have been working on the case and the arrest is a result of their investigations,” Tondop said.
He said he was not certain whether the provincial administrator and his team were operating in Port Moresby or in Kerema but said the suspect was apprehended by police in NCD.
Attempts by The National to get comments from Kavo were unsuccessful.

Paoua New Guinea enjoys fifth year of economic stability

THIS year will be the fifth year that Papua New Guinea will enjoy economic stability, Bank of PNG Governor Loi Bakani said, The National reports. He said this on Tuesday when presenting a paper on PNG economic update at the PNG Indigenous Business Summit and Trade Expo at Kokopo, East New Britain.
He said the estimated gross domestic product (GDP) from 2007 to this year was 7.6%.
He said this was an increase of 31% – from K1,348 per person in 2007 to K1,760 per person this year – and was a major improvement on the economic conditions of economy and average per capita income in PNG.
“This trend is projected to continue for the next two years or so during the construction of the liquefied natural gas project.”
“When we come to the production and exportation of the LNG project, this is projected to go on further.”
He said to give a background of improvement in economy in the last few years, we had to depend on the external sector which was the global economy.
“PNG has the opportunity of having a stable government in the last few years and that was our problem in the past as unstable governments created a lot of uncertainty in terms of having inconsistent policies.”
“Stable government has been one of those prominent components in stability and is reflected in our economy.”
Bakani said while there was macroeconomic stability, businesses should take advantage of it to expand activities because when the tide changed (instability), volatility in exchange, high interest rates and volatile inflation would cause businesses to have doubts about doing more business.
“The improvements to rural infrastructures, marketing, down-stream processing, value-added activities and products and participation of local businesses and entrepreneurs in the agriculture sector should be the focus of government.”
Bakani said the summit would address how best local businesses, groupings like corporative societies, youths and women’s groups could participate meaningfully in some of these activities to empower them in deriving benefits from the LNG project and strong economic growth.
“We, at the central bank, will do our best to ensure the exchange rate appreciation is not pricing out our traditional export sector, making us uncompetitive in the international commodity markets.”
Meanwhile, Bakani said the government must focus on developing the traditional industries especially the agriculture sector which could alleviate the Dutch Disease.
Dutch Disease or the resource curse refers to an economic condition where a mineral boom leads to an appreciation of the exchange rate, which in turn depresses output in the tradable sector, in this case, agriculture.
He said the government must concentrate on improving the social indicators such as health, education, law and order and encourage local business as ways to lessen the Dutch Disease.

Shop shelves low on sugar

By BOSORINA ROBBY
PORT Moresby shops yesterday reported acute shortage of sugar on their shelves – whether it is Ramu Sugar or King Sugar from Seeto Kui, The National reports.
The major shops such as Stop N Shop and the TST and mini-supermarkets in the suburbs had limited stock or had run out since last week.
At the TST Tokarara Supermarket, the 1kg packet was selling for K6.90 while the 500g was selling for K3.90.
The management said these were the last in stock before they run dry.
There was a notice at the shop urging shoppers to limit their purchases to 2kg each.
At the JMart Supermarket at Erima, the management had restricted customers’ sales to only two packets of 500g Ramu Sugar at K3.90, adding that stock was very low.
However, they are also selling imported sugar from Australia and Thailand such as the Fabulous White Sugar selling for K8.45/kg and the K23.20/2kg.
Its unrefined brown sugar is selling for K10.30/kg.
The Black and Gold white sugar is selling for K11.50/kg and the unrefined brown sugar is K18.30/kg.
Lin Pure Refined Sugar from Thailand is selling for K5.50/kg while Number One Brothers Sugar is selling K1.80/200g and CSR brown sugar unrefined is selling for K11.50/500g.
According to the Ramu Agri Industries (RAI), Papua New Guinea’s only sugar producer and supplier, the shortage was due to many factors but mainly environmental.
RAI took out a paid newspaper advertisement last week explaining that the amount of sugar produced was dependent on the growing conditions in the Ramu Valley.
It said cane growth and sugar production had been affected by the wetter than normal weather in the past five years, resulting in pests and diseases in the fields and the sugar content.
The company had since asked the Government to lower import tariffs on sugar so as not to pass on the high costs to consumers.
RAI was also expected to import 4,000 metric tonnes of sugar this month to meet the demand for sugar until the start of the Ramu cane harvest next month.
According to the global markets, not all sugar-producing countries sell their processed sugar on international trade markets.
Currently, 70% the world’s sugar is consumed in the country where harvested and only 30% is traded outside country of origin.
Similarly, approximately 70% of the world’s sugar comes from the sugar cane while the rest comes from its alternate, the sugar beet.

Doctors can earn three times more in LNG project

By JAMES APA GUMUNO
DOCTORS engaged by the LNG project are paid three times more than their counterparts engaged in the public sector, The National reports.
A surgeon at the Mt Hagen General Hospital said yesterday a doctor engaged in the LNG project earned between K7,000 and K11,200 a fortnight while the Health Department was paying its doctors between K1,500 and K3,000.
This discrepancy is known by working doctors, who are currently agitating for increased perks and privileges with their employer, the state, and unless remedied, is likely to see an exodus of doctors from the public sector.
Although the claim could not be substantiated by the LNG project developers, the surgeon, who wished to remain anonymous, said many of his colleagues had been and “are being lured” by the LNG project and other resource companies.
Dr Thomas Vinit, the chairman of the review committee, confirmed last night that there was a grave danger of too many specialist doctors leaving the public sector unless the state could break away from the single line salary structure to compensate specialists properly in order to retain them.
“We actually did a job value study and established that there is too much discrepancy between what is on offer from private sector and what the go¬vernment is paying doctors.
“The government spends so much money on training doctors for up to 14 years.
“ If these doctors were suddenly to leave, it would leave a big vacuum in the public health sector.
“What we did (going on strike) was to prevent people from moving out. The government has got to see that.”
Vinit said if the national doctors were to be involved in a mass resignation and then return on individual contracts with the government, it would cost the go¬vernment a lot more because each specialist would be demanding the market rate.
“It takes the government up to K200,000 to train one doctor. To have that doctor leave with all the skills is a big loss,” he said.
The Mt Hagen surgeon said it was common knowledge that ExxonMobil and its sub-contractors were attracting specialist doctors.
The surgeon was considering his options too, he told The National.
He said: “Why should I keep on suffering on substandard pay when there are opportunities out there which I can explore and earn a decent living for me and my fa¬mily?”
He said the week-long NDA strike last week should send a clear message to the government that they must improve the pay and working conditions of national doctors – pay and conditions which he claimed had changed very little in the past 20 years.

Land secretary tells lies about land leases

By MALUM NALU
Secretary for Lands and Physical Planning Pepi Kimas may have told lies about his department’s involvement in giving away land to foreign businesses under special purpose business agriculture leases (SPABLs).
Kimas claims his department has not been selling land to foreigners, instead shifting the blame to landowner companies, however, government gazettal notices provided to media yesterday (Tuesday) show that he has been granting SPABLs amounting to 5.2 million hectares since March 2003.
National Land Development Advisory Group (NLDAG) chairman Thomas Webster, also director of the National Research Institute (NRI), made the revelation yesterday as affected landowners gathered at the Holiday Inn in Port Moresby last night to talked about “structural theft” of their land at a meeting organised by the Centre for Environmental Law and Community Rights (CELCOR).
A detailed listing of gazettal notices including dates, gazette number, grantee’s name, term of lease, land area, land portion, milinch, fourmil, and provinces was also provided by Webster.
“According to records available from government gazettal notices, the granting of SPABLs, culminating in the current total of 5.2 million ha, has been executed by the secretary for lands and physical planningas a delegate of the minister for land and physical Planning since March 2003,” he said.
“The concerns raised by non-government organisations and academics have been ongoing, and because there has never been any response by the government despite this being brought to the attention of the National Land Development Programme Management Committee, the NGOs had taken the matter up with the United Nations, claiming that the process is flawed.
“NGOs alleged that the ultimate result is disempowerment rather than empowering customary landowners.
“Granting 99-year SPABL leases effectively removes all customary land user rights over the land for three generations whereas the normal lease-lease-back (LLB) arrangements are usually 25 to 40 years.
“NGOs are therefore calling for the immediate suspension of the granting of SPABL.”
Webster said the NRI had also been concerned that some SPABLs were being issued to individuals and business entities when the National Land Development Programme (NLDP) had advocated for customary Land to be registered into incorporated land groups (ILGs), recognising communal land ownership and user right systems, practised by PNG societies.
The ILGs can then lease the land to a developer.
“Two new laws, the Land Registration (Customary) (Amendment) Act and the Land
Group Incorporation (Amendment) Act was passed by Parliament in 2009, but the latter is yet to be gazetted and come into operation,” Webster said.
“The amended Land Group Incorporation Act is better, bringing more accountability to the management of the ILG and the revenues generated from land leases.
“It also prevents the sale of land registered to an ILG – only the land lease can be sold or traded for a specified period of time.
“The continuous granting of SPABL is regrettable in that it contradicts the goals and objectives of the NLDP.
“In other words the government is sending out mixed signals; whereas NLDP places considerable emphasis on developing and empowering customary landowners, the continuous granting of SPABL by DLPP on the other hand is facilitating for their disempowerment.
“Understandably to the common villagers, this is very confusing indeed.
“The Department of Lands and Physical Planning argues that it is freeing up land for development; it maintains that it is the leaders of customary landowning groups themselves who are directly deceiving their own clansmen by signing off their user rights through SPABL.
“This line of argument needs to be placed in the perspective of growing dissent.”
Webster said in June 2009, the court upheld an appeal by Musa Valley Management Company Ltd and revoked Kimas’ decision to issue LLB title to Musida Holdings Limited for a large area of land in Northern province.
“Furthermore, unless the secretary for DLPP can prove in no uncertain terms that more than 95% of SPBAL granted to date are genuine and/or there are no existing dissent/flaws among parties/landowners, it would make more sense to revoke all land leases issued so far, consistent and similar to that done for Musa Valley Management Company Ltd in Northern province.
“It has come to our notice that due process has not been followed and the Lands Department had not insisted as required before issuance of most of the SABLs now being questioned.
“These processes allow and require consultations among all landowners as well as consent by all of them before their land is registered to one person, persons or entity.
“Since these leases are being granted by delegated authority, it would be in order for the Minister to withdraw leases issued by delegation until such time as when the new laws approved by Parliament come into effect.”

Landowners decry ‘theft’ of customary land

By MALUM NALU

Emotional landowners tonight described the controversial special purpose agriculture and business leases (SPABL) as “structural theft of our land”.
The landowners gathered at the Holiday Inn at a special gathering organised by the Centre for Environmental Law and Community Rights (CELCOR) to spell out their grievances.
“We fear that our children are being dished out the same fate as those in Rwanda, Somalia, Sudan, Congo Delta and many other countries in Africa, whose governments have induced poverty rather than protect its people against foreign interventions who came into those countries just to rip the riches and leave,” they said.
“This is a war declared on us by foreigners with the full support of our politicians, bureaucrats and local front men, and while we fight to protect our women and children, Papua New Guineans bestowed with power to look after us have abandoned us to count the gains for themselves brought on by these interventions.”
They demanded:

• That relevant government ministers cause the immediate cancellation of the titles to all customary land that was recently converted into SABLs and all permits and approvals revoked;

• That the agriculture minister direct the national agriculture council to review its approach towards the implementation of the National Agriculture Development Plan (NADP) and focus on ways in which landowners the,selves can be involved in scales within their own capacity without jeopardising their future;

• Those officers responsible for the conversion of customary land into state leases at the department of lands and physical planning are dealt with accordingly; and

• Police commissioner withdraws all police uniforms from security personnel who use police uniforms at logging camps to intimidate and abuse the rights of legitimate landowners

“We object in the strongest possible terms this act by the government, and regardless of our financial capability, we will fight it till these titles are cancelled as we believe that our land has been acquired by the government through fraudulent means,” they said.
“It is becoming a serious concern that the government, through its agencies, is granting licenses and leases without properly consulting us before converting titles to our customary land into state leases.
“To date, the government has gazetted more than 5.7 million hectares of our customary land that was converted into state leases over 99 years.
“Our message is simple: we want trespassers out of our land with immediate effect!”

Security issues bug Japan gas investors

By PATRICK TALU

SECURITY concerns in Papua New Guinea are undermining potential Japanese investment in liquefied natural gas, The National reports.
This was revealed by an investor who is in the country to get an update on his company’s investment here and to gather more information on the ongoing LNG project.
Requesting not to be named, the investor said Japan had an immediate need for liquefied natural gas (LNG) and PNG was being considered a major supplier of clean energy.
He said his country would have enough supply of LNG in light of the two huge multi-billion clean energy projects to be operated by ExxonMObil and InterOil Corp.
The source said Japan imported clean energy from the Middle East and African countries but due to current crisis in those countries, PNG appears to be a potential supplier that could play a dominant role in the energy market.
He said PNG had “world class LNG projects” underway which could compete with those in Australia.
However, he said: “PNG’s potential as supplier has been undermined by the ongoing security issues and non-conducive climate for investment.
“Japanese investors want to invest in the energy sector but the country’s security issues made us hesitant to do so.
“We have already existing investments in various sectors here as well as in the current PNG LNG project through joint venture partnerships and other direct investments.
“We would like to invest more in other sectors like mining but we would very much need security guarantee for our money,” he said.
He also pointed out that PNG is rich in natural resources but managing and distributing the wealth to Papua New Guineans was another thing.
The Japanese investor stressed that the current activities pertaining to Hides 4 PDL7 LNG plant site, the Juni Technical Collage, Kombolu Camp dispute, Kaiam incident and unending landowners’ demands for fulfillment of government commitments to landowners were being closely watched by international investors.
He said it was of paramount importance that necessary measures were taken seriously to safeguard major projects that would help transform PNG into a robust economy.

Ulli Beier, great Papua New Guinea art mentor dies

By MALUM NALU
The great Papua New Guinea art mentor, Ulli Beier, died in Sydney on Sunday aged 88.

The great Ulli Beier

He will be remembered fondly by many PNG artists, writers, scholars and students.
The arts complex at the main campus of the University of PNG is named in his honour.
Many great Papua New Guineans came under his tutelage including Leo Hannett, Meg Taylor, Kathy Abel, Ekeroma Age, Leontine Ovia, Jerry Tamate, Rabbie Namaliu, Kumulau Tawali, Kakah Kais, Pia Leitao, Russell Soaba, John Waiko, Tony Siaguru, John Saunana, Peter Malala, John Kadiba, Elijah Titus, Janet Regione, Apisai Enos and Arthur Jawodimbari.
The 1960s and 1970s are remembered as a creative epoch in PNG’s history when some of the country’s best-ever poetry, prose, performances and publications were produced.
In 1967, Vincent Eri, then a student, brought Beier a story about Moveave in the Papua Gulf, and was encouraged to expand the story into a novel.
Thus Vincent Eri became the author of the first Papua novel The Crocodile.
Another literary achievement during those crucial years was the autobiography Kiki: Ten Thousand Years in a Lifetime by Albert Maori Kiki.
The first PNG literary magazine was launched in this period.
Elegantly produced and designed by Georgina Beier, Kovave was published 1969-1971.
The influence of the inimitable Beier and his equally-unflappable wife Georgina on the development of PNG literature during that era is still remembered by many people.
Beier produced 25 volumes of poetry, and the series was continued (after his return to Nigeria) by Prithvindra Chakravarthi, with a further 11 volumes, making 36 in all, and have become collectors’ items worthy of republication.
On the Beier’s return in 1974, Ulli became director of the institute of PNG Studies, and a new journal was established called Gigibori (1974-1978) with an emphasis on PNG culture.
The institute published 72 general publications on folklore, architecture, art, religion and music; 36 discussion papers on topical cultural, social and political issues; Wanpis, a novel by Russel Soaba; many works by John Kolia and the journal Gigibori.
The areas of theatre, radio production and performance promotion also developed under Beier.
He was to have travelled to PNG last August to make a presentation at a book conference at UPNG, however, was not strong enough to travel at age 88, and asked his good friend Peter Trist to travel to PNG from Australia and make the presentation on their behalf.

Agriculture plan slammed

By MALUM NALU
THE controversial National Agriculture Development Plan (NADP), which caused a scandal two years ago when millions of kina, earmarked for farmers, was allegedly stolen by “paper farmers” in Waigani, has backfired again on the Department of Agriculture and Livestock, The National reports.
In 2009, an allocation of K100 million was used up in a matter of months, with no proper accountability amid claims that much of it had gone into financing dubious projects and individuals.
This time, major agricultural commodities had rubbished unrealistic projections contained in the “realigned” NADP, which were contained in the Department of National Planning and Monitoring national development strategic plan 2030 (DSP 2030).
The development plan expected agricultural commodities to achieve the projections by 2030.
It expected cocoa to reach 310,000 metric tonnes by 2030 from 28,433 this year; copra 440,000mt from 36,383mt; palm oil 1,600,000mt from 491,715mt; and coffee 500,000mt from 73,868mt.
At least three commodities – cocoa, copra and palm oil – have scoffed these end-of-the-rainbow projections.
They said they were not consulted by DAL or DNPM before making these projections, which would also be part of the much-vaunted Vision 2050.
PNGCCI chief executive officer Dr Eric Omuru described the projections – 554% for cocoa and 400% for copra – as a joke.
Palm oil representative Ian Orrell said, maybe, that was why so much land had been given away as special agriculture and business lease (SABL) for “con” palm oil projects.
These criticisms against National Planning and DAL were made at a workshop last Friday, focusing on the liquefied natural gas project and its effect on the agriculture sector.
“The projections for various agricultural commodities, contained in DSP 2030, have been adopted as key result areas for the realigned NADP,” Omuru said.
“When I first saw these projections, I thought they were a joke!
“For the cocoa and coconut industries , which I represent in my current job, increase in cocoa production by 554% from the current average of 50,000mt to 310,00mt and for copra, an increase of 400% from the current average of 100,000mt to 440,000mt by 2030, are hard to imagine,” he said.
“Without consultation, it is hard to imagine where National Planning got the background intelligence to set these targets.”
Orrell said there had been no government support for the “real” palm oil sub-sector, with more than 15 years of government facilitation of “new” palm oil developments.
He questioned the DSP 2030 and NADP’s aim to triple palm oil exports by 2030, and expressed a strong desire for new investors.
“It appears PNG is being advertised overseas as a large available land bank,” Orrell said.
“Departments and politicians are courting any entrepreneurial proposal, no matter how little expertise, credentials or lack of financial capacity is exhibited.”
He said all these were done with no consultation with the country’s palm oil sector; and no understanding of palm oil development and requirements.
Former DAL secretary Mathew Wela Kanua warned in 2009 that the NADP was doomed to failure because its initial recommendations were not being adhered to and would also have a drastic effect on the agriculture sector in PNG.

USA ejected from Papua New Guinea waters

PNG tells superpower not to fish in ‘our’ waters
PAPUA New Guinea has given notice to the United States that it is not welcome to fish in Pacific waters, The National reports.
Frustrated over the Americans’ stubbornness following two years of negotiations, PNG had opted out of the multilateral treaty on fisheries with the superpower.
The PNG position would be taken up by Pacific Island nations who are members to the treaty.
The treaty allowed US fishing vessels to fish without limit, catching in excess of 500,000 metric tonnes of fish which worked out to about US$2 billion of finished fish products each year.
In return, Pacific Island nation members of the treaty received an average of US$2 million each year in access fees and development components.
Cabinet last Thursday considered and approved a submission by Fisheries and Marine Resources Minister Ben Semri to adopt this course of action.
Acting Prime Minister Sam Abal said the treaty was outdated and could not accommodate recent economic partnership arrangements with other countries such as the European Union where it recently ratified an interim economic partnership agreement.
The EU agreement allowed duty free access for unlimited fish products into the vast European market.
This hardline stance by PNG, on behalf of smaller Pacific Island nations, would sent direct signals to Washington that the multilateral fish treaty was unsustainable.
Abal said in a statement released in Port Moresby: “This is your time, US, to recognise island countries and increase licence fees for fishing.
“The PNG government’s decision is the right thing for the nations in the region. It is about time our friends state clearly and fairly their interest with us. They must give credit where it is due,” Abal said.
“Pacific Island countries want the fishing licence fees to be increased.
“The US would have recognised that the Pacific Ocean, and the fish and fishery products, is the main livelihood of our nations.
“Obviously, we want more for our fish and related products than what has been determined by the treaty so far.”
This meant the fishing effort afforded to the US treaty could now be redirected for domestic production to utilise the opportunities presented in the European market, the world’s largest fisheries consumer market.
The treaty required a 12-month period for notification by state parties.

NBPOL inks US$240 million debt facility

NEW Britain Palm Oil Ltd (NBPOL), one of the largest fully integrated industrial producers of sustainable palm oil, last Friday announced the signing of a new five-year US$240 million debt facility, The National reports. The facility will replace the previous 12 month US$200 million facility entered into in April last year to partially fund the acquisition of CTP (PNG) Ltd (now renamed Kula Palm Oil Ltd).
In a statement through the Port Moresby Stock Exchange, the company said the facility was being provided by Overseas-Chinese Banking Corp Ltd, Labuan Branch of Malaysia, Maybank International Ltd, and ANZ (PNG) Ltd.
The facility comprised two equally-sized amortising and non-amortising tranches, and represented terms which the directors believed were very competitive.
The directors were particularly pleased with the level of competition demonstrated by interested lenders during the financing process.
Furthermore, the directors noted the continuing relatively low level of leverage that this facility represented for a company of NBPOL’s size and cash generative ability.
NBPOL chief executive Nick Thompson said: “The high level of competition, the very favourable terms and the extension of NBPOL’s facilities achieved during this refinancing demonstrated the increased strength and standing of the company in the eyes of the lending community.
“As part of the process, it also became clear that risk-appetite for lending to PNG had increased substantially.
“The company now had a very stable and conservative capital structure,” he added.
NBPOL is a large-scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in PNG.
It now has more than 75,000ha of planted oil palm plantations, a further 5,000ha under preparation for oil palm among others.

7.5% pay rise a year for public servants

Progressive increase over three years, says Maladina
THERE will be progressive annual pay increases for public servants averaging 7.5% each year for the next three years.
Minister for Public Service Moses Maladina said in a statement that “the government is aware of the plight of the lowest paid staff and the need to award greater percentage/higher cash increases in lower pay grades” but keeping within the overall budgetary constraint.
The minister also announced that, in a separate cabinet decision, fringe benefits for senior officers on senior management contracts in the public service had been significantly increased.
He said the increases were to reduce the pay differences between senior officers and their departmental heads and to attract and retain experienced and competent senior officers in the public service.
One of the most highly-sought and bitterly-fought issues, housing, had been refused by government.
Housing, it would seem, was not a condition of employment in the public service.
Maladina offered, instead, to increase and enhance opportunities to enter into public service home ownership allowances.
Maladina said: “The government will not accept responsibility for the payment of across-the-board housing allowances, as housing is not a condition of employment in the public service.
“Furthermore, not all public servants pay rent or provide accommodation for their families.
“The government is prepared to enhance the payment of public service home ownership allowances for those staff at all levels who are eligible to enter government-sponsored home ownership schemes.”
Maladina’s statement followed acting Prime Minister Sam Abal’s announcement last Thursday that the public service pay bill would get a huge pay increase across the board of an additional K100 million.
The government approved pay awards covering all public servants including teachers and uniformed disciplined services.
There would be flow-on increases awarded to other state services and government agencies so that the whole public sector could be catered for in this year’s personnel emoluments budget.
Maladina said the government’s move was aimed at enhancing productivity, performance and pay in government-funded organisations.
The overarching strategy would:

*Achieve a more rigourous system for management of performance and discipline utilising performance-based contracts for agency heads and their senior staff, with accountability from the top down;

*Ensure there was careful prioritised management of organisational establishments, manpower and personnel emoluments against budget ceilings to stabilise/reduce unit costs and report non-conforming agencies to NEC;

*Upgrade staff competencies and management abilities through locally-based staff development programmes and graduate development programmes promoting public sector workforce development programes through the PNG Institute of Public Administration and other accredited training institutions; and

*Award fair, equitable and affordable pay increases related to staff expectations, based on job size and work performance, to meet rising living costs against a backdrop of rising levels of economic growth and budgetary affordability.

With regard to income tax, he said he would respond to the demands of public sector unions and agencies by making representation to the minister for finance and treasury to bring to his attention the plight of the lowest paid and the need for the government to review the level of income tax threshold, noting that such a move would benefit all taxpayers proportionately.
According to the statement, Maladina said the Department of Personnel Management had advanced its review of the Public Services (Management) Act, general orders and the code of conduct to enhance performance and productivity, improve and instill discipline and strengthen ethical conduct in the public service.
He said the significant pay rise over the next three years must be returned to the public in greater productivity and efficiency.
Maladina also announced that revised senior management contracts would be executed between the personnel management secretary, other departmental heads and senior officers employed in government departments and agencies.

I'm still waiting for an apology and compensation from Timothy Bonga

Four years on and I’m still waiting…”hello, is Timothy Bonga out there?”

Now that Timothy Bonga has been recycled as MP for Nawaeb, and made Forests Minister, perhaps he can apologise to me and compensate me for the beating that I received at his hands in 2007 before the elections.
The Taiwanese government and media have also implicated Timothy Bonga and Dr Florian Gubon in the US $30 million deal from money that was supposed to come to Papua New Guinea.
Apart from that scam, the good people of Nawaeb and the rest of Papua New Guinea should know that for no apparent reason, outgoing Eda Ranu executive chairman Mr Bonga harassed, insulted, and then assaulted me at the Lamana Gold Club on Friday evening, May 4, 2007.
The incident happened as I was about to leave Lamana after a few “Happy Hour” drinks with workmates.
Mr Bonga confronted me as I was leaving – out of the blues - and accused me of working together with Lae MP and New Generation Party leader Bart Philemon to bring him down.
He made reference to the recent newspaper reports about his payout from Eda Ranu.
I denied this, saying that I was no longer working as a fulltime journalist (I was working with Small Business Development Corporation at that time), and walked out to catch a taxi, but Mr Bonga followed me outside where he punched me, pushed me to the ground, and then proceeded to kick me in full view of security guards.
I suffered a black eye, a sore face and a painful back.
This was a criminal matter, which I wanted to pursue further with police, but decided not to, lest his election chances be jeopardised.
In true Papua New Guinea style, it is only fitting that Mr Bonga compensate me, my family, and my friends, given that he has already received his big pay cheque from Eda Ranu , is now Nawaeb MP and Forests Minister, and has publicly confirmed benefiting from Taiwanese money.

Agriculture plans a ‘joke’

By MALUM NALU
The PNG Cocoa Coconut Institute has rubbished projections for cocoa and coconut as contained in the national development strategic plan 2030 (DSP2030) and realigned national agriculture development plan (NADP).
PNGCCI chief executve officer, Dr Eric Omuru described the projections – 554% for cocoa and 400% for copra – as a “joke”.
He made the harsh criticism of the Department of National Planning and Monitoring (DNPM) and Department of Agriculture and Livestock (DAL) at a workshop last Friday focusing on the liquefied natural gas project and its affect on the agriculture sector.
“The projections for various agricultural commodities as contained in DSP 2030 by the DNPM have been adopted as key results areas for the realigned NADP,” Dr Omuru said.
“When I first saw these projections, I thought they were a joke!
“For the cocoa and coconut industries , which I represent in my current job, increase in cocoa production by 554% from the current average of 50,000mt to 310,00mt and for copra, an increase of 400% from the current average of 100,000mt to 440,000mt by 2030 are hard imagine.
“Without consultation with the two industries to project these targets it’s hard to imagine where the DNPM got the background intelligence to set these targets.
“Models that are used to provide projects are only as good as the information or data that it is fed with.
“The allocation of public resources or funds to the two industries is limited as is the case for most of the PNG National Agriculture Research System (NARS) organisations.
“Agencies of government that are vested with powers to allocate resources to agriculture sector agencies or industries must do justice to allocate resources to facilitate the necessary activities that are needed to generate incremental changes over time to meet the targets.
“Sadly this is not the case or reflected in the 2011 development budget appropriations.”
Dr Omuru said against a backdrop of an NADP that attracted negative connotations of the “old” NADP, the DAL must move on the lower level planning process of the realignment with a sense of urgency to convince relevant government agencies that the sector was ready deliver results.
“Reorganising to deliver results is a challenge as we have found in the PNG NARS organisations,” he said.
“Without this critical restructuring or reorganising process and resourcing, it would be counterproductive to talk of delivering results.
“The NARS have their plans and are now implementing them.
“Having commodity plans as noted by Dr Chris Dekuku (of DAL) are good but if they are not resourced, they are just that – ‘plans’.”

NGIP Agmark supports wealth fund

By MALUM NALU
Major agricultural company NGIP Agmark believes the creation of a sovereign wealth fund (SWF) will help to offset the effects of “Dutch Disease” brought about by the liquefied natural gas project.
Company representative Graham McNally said this at a workshop last Friday focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
“We believe that this approach to containing the effect of rapid economic growth is correct” he said.
“There must be industry recognition and support for this initiative.
“However, demand-driven domestic inflation will remain an issue.”
McNally said the exchange rate was a primary concern for agricultural commodity exporters like NGIP Agmark.
“It diminishes any benefit that has been achieved through structural adjustment policy during past two decades,” he said.
“We should look at a two- tier exchange rate, or more practically, a supported exchange rate for agricultural commodity exports.”
McNally said impending ‘Dutch Disease’ further supported calls for agricultural industry support and investment, in areas such as:
• Investment in tropical tree stock upgrade;

• Tropical tree crop stocks must be seen as a national good;

• Long-overdue replacement of current tree stocks such as coconut and copra;

• Underinvestment in agriculture for several decades; and

• Development or implementation of sectoral strategic plans.

He said there should be public sector investment in agriculture with the aim of reducing costs of production across the value, through building and maintaining roads and bridges, wharves and jetties, and subsiding water transport.
McNally said because of the labour and skilled worker shortage brought about by the LNG project, there should be increased emphasis on smallholder development and a move away from plantations.

Palm oil industry hit hard by LNG

By MALUM NALU
Leading Papua New Guinea export crop palm oil has called for unprecedented public investment in infrastructure to offset the effects of the dreaded “Dutch Disease”.
Industry representative Ian Orell made the call last Friday at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
“Priority must be unprecedented public investment, through public-private partnership, in reconstruction and maintenance of roads, roads, roads, bridges, ports and social infrastructure – starting now,” he said.
Orell said there must also be assistance with transport subsidies, fuel subsidies, enhanced tax credit schemes and others.
“Lower PNG kina value of exports and greatly elevated production costs will mean severe bottom line impacts,” he said.
“The existing crippling operating costs associated with the country’s failing transport infrastructure will become critical.”
He said palm oil was already suffering because of the LNG with “damaging HR losses to the boom sector”.
“Many mechanics, engineers, welders, HGV drivers, etc, are leaving (for LNG),” Orell said.
“New recruits are not available.
“HR costs are being driven up.”
He said the palm oil industry was also hard hit with Education Department’s technical vocational education training (TVET) suspending apprenticeship courses.
“Palm oil industry currently has more than 300 apprentices,” Orell said.
“We are being asked to establish our own equivalent facilities.”

Coffee industry to be affected by LNG project

By MALUM NALU
The liquefied natural gas project could have disastrous implications for Papua New Guinea’s coffee industry, according to Coffee Industry Corporation economist Kessy Kufinale.
He said this at a workshop last Friday focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
In an apparent reference to the dreaded “Dutch Disease”, where a mineral boom leads to an appreciation of the exchange rate, Kufinale said this appreciation would negatively impact on kina export revenue for coffee.
He painted the scenario of a 10% appreciation in kina against the US dollar from 0.339 - 0.3729.
“Given price 100 US cents per pound, results in a loss of K35 million, 10% of total coffee revenue,” Kufinale said.
“Any change in the export price always affects the producers, not middle men.
“A combination of lower export prices and appreciated exchange rate could spell disaster for our agricultural export industries.
“Our export products will become dearer, hence, less competitive on the world markets.
“Agricultural export producers are currently enjoying high prices and a fall in price will result in more plantations, especially, going out of business.”
Apart from ‘Dutch Disease’, Kufinale said the coffee industry was already losing a significant portion of its skilled labour force to LNG.
“Coffee exporters and plantations have reported that they have lost workers to LNG,” he said.
“This creates skills gap within these organisations.
“To retain skilled workers would add to their already high labour costs.”
Kufinale said major freighting companies operating along the Highlands Highway were shifting to service the LNG and neglecting the long-established coffee industry.
“Smaller coffee exporters, especially nationals, are resorting to small private truck operators, despite the higher risks this entails,” he said.
Kufinale said the port facility in Lae was unable to handle increased traffic.
“Delayed shipments due to congestion is potentially damaging to PNG’s reputation as a reliable supplier of coffee,” he said.
Kufinale said appropriate fiscal, monetary and exchange rate policies needed to in place to mitigate these negative impacts on the competitiveness and sustainability of PNG’s agricultural export commodities
“LNG windfall revenues must be invested in agriculture, particularly in areas like infrastructure development; rehabilitation and expansion; quality improvement; freight subsidy; and research and extension.
“Investments in the agriculture sector that have had significant impact on the lives of our rural citizens abound.
“Use these as guides to invest windfall LNG revenues if our economy and its people are to be continued to be sustained long after LNG is gone.”

‘Con’ palm oil projects on the rise

By MALUM NALU
The palm oil industry has warned the people of Papua New Guinea to be wary of “con” oil palm projects appearing all over the country.
Palm oil representative Ian Orrell, in a no-holds barred presentation, told a workshop focusing on LNG and agriculture last Friday that this was all done with the purpose of logging, and was already giving a bad name to the established industry.
Agriculture Minister Ano Pala and his department acting secretary, Anton Benjamin – who have been supporting such special agriculture and business lease (SABL) projects all over the country – were not present to hear Orrell’s words as well as other important agricultural matters, as they had left for China the previous day.
Orrell said this “virtual” palm oil industry had seen the emergence of many “oil palm” agro-forestry projects, all with a focus on securing forest conservation areas (FCAs).
He said there was a land grab using SABLs, with over 5.3 million hectares lease-lease back (LLB) to third parties, which is land alienation, usually for 99 years.
“Most profess to be for ‘palm oil’ development,” Orrell said.
“This poses a massive reputational risk for the country and its palm oil exports.
“This will directly affect our market access and is blocking real development opportunities from real investors.
“The ‘real’ palm oil industry must take, and is taking, an active role in supporting awareness, opposition and mitigation activities to prevent these abuses of customary land and resource rights.”
Orrell said there had been no government support for the “real” palm oil sub-sector, with over 15 years of government facilitation of new palm oil developments - “which has led to?”
He questioned the national development strategic plan 2030 (DSP2030) and national agriculture development plan (NADP) aims to triple palm oil exports by 2030, as well as an expressed strong desire for new investors.
“It appears PNG is being advertised overseas as a large available ‘land bank’,” Orrell said.
“Departments and politicians are courting any entrepreneurial proposal, no matter how little expertise, credentials or lack of financial capacity is exhibited.”

Wafi-Golpu gold deposits threefold

HARMONY Gold mining company, Africa’s third largest producer of the precious metal, has revealed that the company’s Wafi-Golpu joint venture with Newcrest Mining Ltd in Papua New Guinea may be three times the size of its next biggest mine, The National reports.
According to a presentation posted on the Harmony website, Wafi may yield as much as an annual 700,000 ounces of gold and 320,000 tonnes of copper.
The company was still working on sizing up the resource.
Harmony, which produced 1.43 million ounces of gold last fiscal year, was digging mines abroad as depleted South African reserves became more difficult and dangerous to excavate, coupled with rising cost of labour and electricity.
In the financial year ended June 30 last year, Harmony’s Tshepong mine yielded about 217,000oz of gold.
The company climbed 3.66 rand, or 2.7% to 99.61 rand - the highest level since April 2009 close of the Johannesburg trading, giving Harmony a market value of US$6 billion.
Wafi may add US$1.5 billion to US$2 billion, or about 40%, to the value and make the company a takeover target, RBC Capital Markets said last week.
Wafi’s content was estimated at 16moz of gold, 4.85mt of copper and 55,000t of molybdenum, or a total gold equivalent of 38.5moz, according to the presentation.
It added that only Freeport-McMoran Copper & Gold Incorporated’s Grasberg mine in Indonesia and Ivanhoe Mines Ltd’s Oyu Tolgoi deposit in Mongolia have higher gold equivalent grades.
Harmony’s management last year estimated the cost of building a mine at Wafi at US$2.5 billion to US$3 billion.

Bench warrant sought for arrest of doctors

By JACOB POK
AN application for a bench warrant to arrest the doctors on strike is expected to be made at the Waigani National Court this morning, The National reports.
The National Doctors Association and its members have been cited for continuously failing to comply with last Friday’s court orders restraining them from going on strike.
The court will, today, also hear submissions on contempt proceedings against the doctors for defying the court order.
Justice Catherine Davani yesterday upheld last Friday’s restraining orders pending the hearing of the substantive matter.
She issued the orders while dismissing the doctors’ motion to set aside the restraining order.
Davani also noted that the doctors’ claims where not related to the previous agreements but were new, ambiguous and unregistered.
She said the NDA, being professional men and women, had circumvented the law and established processes to achieve their goals.
“That is a dangerous trend and one that can lead this nation to anarchy as other unions and citizens of this country are observing with interest.
“This court will not condone the NDA’s claims and condemn it in the strongest possible terms,” Davani said.
“The processes in relation to the resolving of industrial claims are available to the citizens of this country and must be utilised.
“There are no short cuts.
“Parties should not resort to strike action at their whim. Rules and processes must be followed.
“In this case, we have professionals, being doctors, who are uncompromising and will not allow due processto take its course. That, again, should not be allowed to happen,” Davani said yesterday.
She earlier warned NDA executives to refrain from “flaunting” their issues in the media, while they continued to go on strike and described their actions as “fervently breached of the court order”.

Clouds, crew factors in air crash

BAD weather and inadequate pilot experience contributed to the 2009 Kokoda plane crash which killed all 13 people on board, including nine Australians, transport investigators said in their final report released yesterday, The National reports. The Airlines PNG flight, captained by Jannie Moala, slammed into the side of a hill as it made its way to Kokoda from Port Moresby on Aug 11, 2009.
According to Civil Aviation’s aviation investigation commission, the plane crashed while in controlled flight, meaning there had been nothing wrong with the plane itself.
Although the day had been very cloudy, the crew had attempted a descent using visuals only and it did enter a stage where instruments needed to be used.
The co-pilot had not been qualified to fly using instruments.
Senior AIC investigator Sid O’Toole said that the aircraft was well-equipped in terms of its multifunctional unit including navigational, weather, terrain avoidance and warning systems.
“When the crew commenced the descent through the Kokoda Gap in the reported rapidly changing weather conditions, they committed themselves to a course of action that they could not be assured of completing safely,” the report said.
The difficult conditions of the flight would have tested the crew, it added.
“It was probable that during the descent, the crew were required to manoeuvre the aircraft to remain clear of cloud, or regain that status, and in so doing, impacted terrain,” the report concluded.
The crash happened around 11.14am, about 20 minutes after it took off from Jackson International Airport.
The AIC attributed some responsibility to Airlines PNG, saying it had no emergency procedures in place should pilots needed to rely primarily on flight instruments.
But it also did not rule out the possibility that the co-pilot had become incapacitated before the crash, although it noted he had appeared to be in good health.
In response to the accident, the civil aviation safety authority is in the process of legislating for cockpit voice recorders to be installed in all aircraft that carry nine or more people.
CASA PNG has also set up a new chief medical officer position and shifted responsibility for incident reporting to the accident investigation commission.
Despite PNG being a signatory to the Chicago Convention on International Civil Aviation, it previously had neither a compulsory or voluntary reporting system.
Airlines PNG has also since employed new visual flight procedures.

K100m windfall for public servants

Public servants to get hefty pay rise
THE government is putting an additional K100 million in the pay packets of all public servants, The National reports.
Cabinet approved the pay increase yesterday.
The increase “is better than they have been asking for” and would cover striking doctors as well, acting Prime Minister Sam Abal said last night.
Details of the deal will be presented by Public Services Minister Moses Maladina as soon as the details have been finalised.
Abal said: “The Somare government is conscious of the rise in cost of living in recent days. We have to keep up with the speed of things happening.
“We have decided to increase the pay packets of public servants across the board. I want public servants to respond positively to this by improving on their productivity, efficiency and effectiveness.”
Abal said: “Public servants should be happy but at the same time we are putting a challenge before them.
“This is the carrot but the stick will come later.”
While the exact terms are still being negotiated, Abal said the wages bill of the state would increase by more than K100 million.
The bill for salaries and emoluments for this year was projected in the National Budget at K2.494 billion, an increase of K541.3 million compared with last year.
The largest increase in personnel emoluments for national departments this year was attributed to hospital management services (K16.8 million), Correctional Services (K17.4 million) as well as full superannuation funding of K220 million.
The K100 million announced yesterday was additional to the projected increase.
Abal said the government was overhauling and streamlining the entire public service general orders, including the pay structure.
Where legislative changes are required, the necessary bills will be drafted and go before the next sitting of parliament in May, Abal said.
Public servants are still owed a 6% across-the-board salary increase by their employer but Abal indicated the deal approved by the government was superior.
At the same time, he called on striking doctors to return to work and let the industrial machinery to sort out their grievances.
He said the government was responding positively and doctors should respect this.
He said: “Something has gone wrong but we are reasonable. We will increase their pay rates.
“In return, they must come honest and serve the people.
“We should not be irresponsible and try to coerce or force by intimidation and threats.
“That is for people with less intelligence, not professionals like doctors.”

Beneath the shadow of Mt Giluwe

By MALUM NALU

National Agriculture Research Institute’s high altitude research station is situated in picturesque Tambul, Western Highlands, on the foothills of the majestic Mt Giluwe.

Mt Giluwe towers over the station

Mt Giluwe is the second highest mountain in Papua New Guinea at 4,368 metres (14,331 feet), after Chimbu’s Mt Wilhelm (4, 509m or 14, 793ft), and is in neighbouring Southern Highlands.
Tambul, situated to the west of Mt Hagen and bordering Enga and Southern Highlands provinces, is famous for its fresh vegetables.

Field supervisor Joana Galua in a kaukau (sweet potato) plot

In fact, it is the single biggest producer of fresh vegetables in the country such as potatoes, broccoli, cabbages and cauliflower.
Its people are some of the hardest working who still value their subsistent way of living.
Unlike other parts of the highlands, where tribal fighting, rapes and murders are commonplace, Tambul is one place that begs to differ.
The people are putting down their guns and knives, and picking up their spades and shovels, to work the rich volcanic soils of Giluwe that God has provided.
They are keen to supply the gas project in just a stone’s throw away in neighbouring Southern Highlands.
Tambul station is about 2,224m (7, 296ft) above sea level at the foot of Mt Giluwe, and was established as a government patrol post in the 1950s, with the first highlands highway passing through it in the 1960s to Mendi in Southern Highlands.
Believe it or not, ice and snow are regular occurrences here, and the place is freezing cold, too cold, in fact, to grow coffee
Tambul is already contributing in a big way towards development of agriculture in this country, with the research station.

Wheat grows in proliferation

Around the station, there are cattle, sheep and goats grazing, amidst kaukau, potato, wheat and rice fields in scenes of pastoral poetry.
It’s a joy for visitors like me to wander through the scenic fields, garnished by sentinel-like trees, to the magnificent backdrop of Mt Giluwe.

Taro besides potato screen houses

Tambul, in the Kaguel Valley, is also one of the more lush, fertile and verdant areas of the Highlands.
Vegetables and fruit grown in abundance, supplemented by readily-available chicken, pork, sheep, goat, cattle and fish from aquaculture projects.

 Potato screen houses

Hence, in this land of milk and honey – on the border of Western Highlands, Southern Highlands and Enga provinces - you have a very healthy-looking population.
During my visit, I spent an enjoyable Friday afternoon with NARI staff including programme manager Johannes Pakatul, as well as my former Aiyura National High School mate, scientist Kud Sitango, who showed me around beneath the towering presence of Mt Giluwe.

Station manager Johannes Pakatul at the station signboard

“We have a dedicated team of scientists and staff from all over PNG working here,” Pakatul tells me.
“What we are doing here will benefit the whole country.”
I couldn’t agree more.

Freight subsidy the way to go: Dutton

By MALUM NALU

Former MP Warren Dutton believes the success of Ok Tedi Mining Ltd’s freight subsidy scheme for rubber growers in Western province can be duplicated throughout PNG for every crop produced by rural villagers.
He said this today at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
Dutton, who is chairman of the Consultative Implementation and Monitoring Council (CIMC) agriculture sectoral committee, said successive governments over the years were of the view that PNG should not have a freight subsidy policy.
“I would confidently suggest that if our members of parliament were to set aside half of their annual K10 million into a freight subsidy fund, that that K500 million or so would be sufficient to provide a marked improvement in the prices that would be paid for cash crops right throughout all their electorates,” he said.
“I would suggest that it would be an even greater vote winner than the free education policy was some years ago.
“More importantly than that, it would change the mood of the nation.
“It would change that mood, because our rural people would be able to believe that they were at last being recognised as productive citizens of their country, whose labour and sweat deserved an appropriate financial reward.
“Rather than beggars, who are only worthy of recognition at election time!”
Regarding the LNG project, Dutton said successive governments over the years had lacked experience and wisdom to manage and share the wealth from various resource projects to rural people.
He said inflation brought about by the LNG project would squeeze most village cash crop producers out of business.
“If we allow this to happen, we will be responsible for their inevitable reaction,” Dutton said.
“The LNG project will inevitably cause this to happen.
“It may, hopefully, sometime after 2016 supply the revenue needed to continue the alleviation of the problem.”

Sovereign wealth fund to offset ‘Dutch Disease’

By MALUM NALU

The creation of a sovereign wealth fund (SWF) can offset the negative impacts of ‘Dutch Disease’, according to deputy treasury secretary Anthony Yauieb.
He said this today at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
“Can ‘Dutch Disease’ be avoided?” Yauieb said in his presentation.
“Cause of ‘Dutch Disease’ is an inflow of foreign currency into PNG
“It can be reduced by not bringing all of the foreign currency into PNG
“Policy option to minimise the effects of ‘Dutch’ Disease is through creation of an offshore SWF.”
Yauieb said the size of LNG revenues have substantial macroeconomic implications that need to be carefully managed, including:

• Exchange rate appreciation / Dutch Disease;

• Cost and operation of monetary policy;

• Risk of overheating the domestic economy; and

• Adverse effects in non-mineral sectors of the economy.

He said offshore arrangements for the SWF included: state retaining full ownership and control; promoting macroeconomic stability; underpinning long- term development and socio-economic objectives; helping protect non-mineral sector industries; and were robust, transparent and effective.
Yauieb said the plan was to establish a consolidated pool of offshore funds with three coordinated and integrated funds for infrastructure; stabilisation; and future (savings) fund
He said other plans for the PNG SWF were:

• Fully integrating SWF with the budget and fiscal framework;

• Governance, transparency, disclosure, accountability and asset management rules would be based on international best practice;

• Drawdown rules would be developed to ensure prudent macroeconomic management while supporting development objectives;

• SWF would be overseen by an independent board; and

• Investment would be undertaken by offshore investment manager.

‘Dutch Disease’ a real threat to Papua New Guinea with gas project

By MALUM NALU
Bank of Papua New Guinea governor Loi Bakani today warned of the effects of the dreaded ‘Dutch Disease’ on the PNG economy, particularly agriculture, in light of the liquefied natural gas project.
Bakani made the warning at a workshop focusing on the impact of LNG on the PNG economy, with particular reference to agriculture.
World Bank country manager, Laura Bailey, also warned of the dangers of ‘Dutch Disease’ as she gave an international perspective on this.
‘Dutch Disease’, or the ‘resource curse’, refers to an economic condition where a mineral boom leads to an appreciation of the real exchange rate, which in turn depresses output in the tradeable sector, in this case, agriculture.
“The export agriculture sector – such as coffee, cocoa, palm oil, copra and forestry – will be harmed by the real appreciation or ‘Dutch Disease’,” Bakani warned.
“Our exports will be less competitive and so there will be a decline in the export of these commodities.
“This adverse effect can be more pronounced under the aggressive government spending scenario, because excessive government spending will add to the real exchange rate appreciation through increased liquidity and high inflation.”
Bakani said this adverse effect could be mitigated or minimised through the conservative government expenditure approach.
“Apart from strategic careful and prioritised spending, the government can also mitigate the ‘Dutch Disease’ effect on the tradeable agriculture sector by maintaining and reconstructing the existing road network of feeder roads, as well as all the social sector infrastructure of health, education and law and order,’ he said.
“This will aid the producers get their produce to buying points and sustain production and export.
“In other words, the resource sector scenario can be addressed through better and improved infrastructure network.”
Bakani said BPNG, on its part, could mitigate or minimise the ‘Dutch Disease’ effect through its management of the kina exchange rate, as well as encouraging macroeconomic stability as an important foundation for microeconomic development and improvement.
World Bank’s Bailey said the ‘Dutch Disease’ threat was for real.
“The risk of so-called ‘Dutch Disease’, inflation, shifting of all resources into the mineral sector and disadvantaging other sectors including agriculture, are real risks,” she saidafter her presentation.
“But there are three things we can do.
“We can make sensible choices about managing mineral resources.
“The next thing we can do is when we spend the money, we can make strategic expenditure policies, for example, infrastructure that supports agriculture.
 “Thirdly, we need to be very transparent.”

Air Niugini gets 3rd Dash8

By BOSORINA ROBBY

AIR Niugini has increased its fleet to 21 aircraft with the arrival of the third Dash8-Q400 Next Generation aircraft yesterday, The National reports.
The national flag carrier was expecting a Boeing 767 next month, which will replace the current Boeing 757 on its international routes.
ANG chief executive officer Wasantha Kumarasiri said they were confident that this additional aircraft would provide operational flexibility for both passenger and cargo movements.
He said this would also assist in providing more frequencies and capacities in the implementation of the new flight schedule which began this week.
Congratulating the ANG staff, management, board and the Q400 project team, State Enterprises Minister Arthur Somare said the arrival of the new aircraft was well-timed to assist ANG carry out its new flight schedule.
He explained that this schedule would now see a fourth weekly service to Singapore and a third weekly service to Honiara, Solomon Islands, Manila and Nadi, Fiji.
The fourth weekly service to Honiara and Nadi still to be approved, Somare said.
The international sector now sees double daily services to Cairns on Wednesdays and to Brisbane on Thursdays, Fridays and Sundays on the Boeing 767, and on the Fokker 100 on the other days.

Doctors ordered to end all strikes

By JACOB POK

NATIONAL Court judge Justice Catherine Davani yesterday ordered the executives of the National Doctors Association (NDA) to follow last Friday’s court orders and cease all strike actions until the issues are dealt with in court, The National reports.
“The court order is very specific and very clear for the defendants to be restrained from carrying out further strike actions,” Davani said.
The court was told that the executives of the NDA had failed to comply with interim restraining orders that were obtained by state lawyers last Friday and served on the NDA executives at around 6.30pm the same day.
A contempt proceeding on the doctors’ failure to comply with the court order was filed by the state and would be heard today following a ruling on whether or not the restraining order remained.
State lawyer Sam Koim yesterday submitted that a memorandum of agreement (MoA) was signed by the NDA and the departments of Health and Personnel Management (DPM) on Jan 12, 2007, over benefits for doctors throughout the country.
He said the matters relating to the MoA were addressed through a subsequent agreement signed between the parties under a memorandum of understanding (MoU) on Jan 11 last year.
Following that, all outstanding matters were implemented except for a new log of claims which were yet to be lodged with DPM which, effectively, was preventing formal negotiations from taking place.
In his submissions, Koim also highlighted the failure by the doctors’ executives to meet with the heads of DPM and Health when requested to prior to last Friday’s strike action.
He also pointed to the refusal by the industrial registrar early this month for a secret ballot on a proposed strike to be conducted by the NDA, simply because there was no dispute and no evidence of a fresh log of claims.
In addition, the state argued that a similar view was expressed by the Public Services Industrial Conciliation and Arbitration tribunal.
The doctors were now into their sixth day of strike.
Based on these arguments, Koim submitted that the restraining order should continue.
He also revealed to the court the verbal abuses and threats he allegedly encountered when serving the court order.
Defending counsel Tai Yai of Kange Lawyers argued in a brief submission for the restraining orders to be set aside.
Yai argued that the doctors had resorted to the strike action over frustrations and dissatisfaction aimed at their employer, who had failed to honour the January 2007 MoA.
He also pointed to a court order of Jan 4, 2007, which the DPM and Health had failed to satisfy.

Breakthrough in doctors' strike

Zibe intervenes to end doctors’ strike
By JEFFREY ELAPA

HEALTH Minister Sasa Zibe has ironed out differences with the striking doctors, paving way for them to return to work today, The National reports.
Zibe personally took charge of the situation as National Court judge Justice Catherine Davani reminded the doctors of her court order last Friday not to strike while she heard substantive matters on their revised log of claims yesterday.
She is due to make a ruling today.
In an unprecedented move, the health minister, who had blamed the bureaucracy for dragging its feet in the doctors’ claim, met with the NDA executives at the PNG Trade Union Congress headquarters to agree on a compromise.
Zibe announced after the meeting that a memorandum of understanding would be signed today by the relevant parties although he did not disclose the content of the MoU.
In a complementary move, Public Service Minister Moses Maladina also met with NDA executives but the outcome of that meeting was not immediately known.
NDA president Dr Kauve Pomat was jubilant last night, saying he welcomed Zibe’s decision to sign an MoU.
Since last Friday, the NDA executive had refused to meet with Health secretary Dr Clement Malau and his Personnel Management counterpart John Kali for further dialogue on their revised log of claims which, they claimed, should have been concluded last September.
Malau and Kali maintained that the 2007-09 MoA had been fully implemented and the doctors were paid more than K10 million in backdated claims.
The NDA wanted a new agreement to revise the 2007-10 awards relating to, among others, medical officers’ salary classifications and progression, medical/dental officer classification, domestic market allowance, consolidated clinical overtime and on-call allowances.
In a separate statement, Malau said he had done all he could to address the doctors’ concerns, adding that a transitional arrangement was made which led to the MoU signed between the state and NDA.
He said this was done to fully implement the 2007-09 MoA while waiting for a new agreement to be signed by the two parties for a new log of claims.
Malau said under the MoU, the Heath Department was to implement a number of key commitments, which included the appointment of a chief medical officer under the new structure, work value study and appropriate remuneration for doctors.
They were fully implemented by the department, he said, adding that Health then worked on its own restructure and alignment of the work value study to restructure doctors’ remuneration packages.
Malau said this package was provided to the NDA to use as part of the new log of claims to be submitted to Personnel Management Department for negotiations to take place.

Danaya: Coward’s way out of problem

FORMER doctor and Western Governor Dr Bob Danaya said yesterday that taking a court injunction to stop doctors from striking “was a coward’s way out and will only add fuel to the fire”, The National reports.
Danaya, who led another doctors strike in 1999-2000, said: “The national doctors current industrial strike could have been averted had the Department of Personnel Management and the Health Department addressed the outstanding log of claims amicably and in a sensible manner.
“The last thing that any doctor would do is to walk away from their patients in the hospital because of the hypocratic oath they all have taken as doctors to serve their patients with dedication and commitment.
“All responsible governments in the world would know this and the important role that doctors play in patient care in the health system,” he said.
In the 1999-2000 doctors strike, the undertaking that all parties took legally was that the state must do all things possible to address national doctors grievances in the industrial dispute to avert any strike action as the role played by doctors was an essential function as they dealt with human lives.
The state, through its institutions, had failed to adhere to this undertaking and must now face the consequences, he added.
“The time for negotiations is before any industrial action takes place. This is what we did in 1999 and all parties were satisfied.
“It is very sad that proper negotiations have not taken place.
“To take out a court injunction is a coward’s way out and will only add fuel to the fire.
“Those who have failed to do their job should not take part in the negotiations,” Danaya said.

Court to rule

More talks ahead for striking doctors
NATIONAL Court judge Justice Catherine Davani will decide today what course the nationwide doctors’ five-day strike should take, The National reports.
She will hear the ex parte (one party) application from the state on the status of the failed negotiations between the Health and Personnel Management departments and the National Doctors Association prior to last Friday’s walkout.
Secondly, Davani will hear an application by state lawyers that the NDA executives should be held in contempt for defying her orders last Friday not to order their members to strike.
In related developments yesterday, as most of the 500 doctors throughout the country stayed away from work indefinitely:

*Deputy Prime Minister Sam Abal met with Health Minister Sasa Zibe and Public Service Minister Moses Madalina to discuss the urgency of resolving the dispute;

*Health secretary Dr Clement Malau and Personnel Management secretary John Kali announced that they were ready to meet with the NDA executives to discuss their claims for pay rise and improved working conditions;

*The disputing parties snubbed a compulsory roundtable conference called by the Public Service Conciliation and Arbitration Tribunal at 10am;

*Provincial doctors claimed they were not being updated regularly on the developments by their NDA executives in Port Moresby;

*Heath secretary refuted claims of double dipping and embezzlement of public funds by six senior executive managers of the Health Department;

*Several private clinics recorded higher than normal daily patients being treated since the weekend; and

*More than six trade unions, affiliated to the umbrella PNG Trade Union Congress, maintained their support for the NDA.

Davani’s rulings at 9.30am today would set the stage on where the dispute would be heading.