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.

French firm poaches and patents PNG's 'Bilum'

A French firm has poached and patented the Papua New Guinea bilum, causing a stir on the internet among Papua New Guineans.

The issue was first highlighted by Papua New Guinea blogger Tumbuans & Dukduks on his site http://garamut.wordpress.com/, provoking an outrage among Papua New Guineans about the iconic bilum, which has been developed through centuries of trial and error.

One outraged reader went as far as calling on the National Cultural Commission to begin intellectual property registration of PNG names.

 “Yes, it’s true,” Tumbuans and Dukduks wrote.

“And the name of this particular French firm - well, have a guess!

“The firm has decided to call itself Bilum and you can find their website here, http://www.bilum.fr/. 

“Bilum - the French firm - makes bags and accessories using recycled advertising banners.

“Every one is unique, because the material comes from the giant advertising hoardings that you are found on buildings undergoing work, department stores, and on the outskirts of large cities.

“The French brand – yes, it is now a ‘French brand’ - uses recycled car seatbelts as handles and straps for its designs.

“The most ironic thing about this French firm is that it labels its’ creations as ‘eco-ethical fashion’ and it even entered the 2008 Ethical Fashion Show.

“I can accept the ‘eco. and the ‘fashion’ - but how in the world can it be termed ‘ethical’ when its commercial brand is a poached national cultural-identity unique to Papua New Guinea?”

The Treehugger website wrote an article on this URL http://www.treehugger.com/files/2006/05/paris_shopping.php  highlighting Bilum’s bags on the Paris shopping scene and a couple of Papua New Guinean friends and expatriates have already voiced their concerns.

The following is a comment from Rick Brittain, a Cairns’ expatriate who works in PNG:

“My original concern was that the name ‘bilum’ has basically been monopolised now, internationally, and has been removed from its PNG roots.

“I actually met with Helene (owner of Bilum) earlier this year, and found out that the company she operates is a predominently non-profit, recycling centre, using people with special needs to manufacture her bilums.

“Good luck to her, and I have no problem with that, and she is a genuine lady with genuine concerns for our planet.

“I donated a couple of PNG bilums for her use, and she reciprocated with her bilums, which are certainly unique…but not genuine bilums as anyone who has spent time in PNG will tell you.

“You cannot mimic culture…it’s developed through centuries of trial and error”.

The author of Tubuans & Dukduks said he had somehow managed to keep his emotions under control for the duration of the penning of this post.

“But I will say say this: Paia bilong mi em i dai nating (my flame has gone dead),” he added.

“I will be sending Bilum - the French firm -  an email detailing my deep concern about the blatant poaching and patenting of PNG’s name and product - bilum.

“So too can you.

“Here is their email address: contact@bilum.fr.”

 

WACC annual photographic competition launched

 The WACC Photographic Competition 2009 has been launched. The competition is being run on Flickr.

 

This year’s theme of the competition is “portraying gender”.  Photographers are invited to submit photos that portray women or men in ways that offer new perceptions about their roles and responsibilities. Such photos challenge conventional understandings of ‘femininity’ and ‘masculinity’ and help break the mould of the male-female ‘divide’.

 

Photos must be must be loaded on flickr.

 

Winners of the competition will be awarded cash prizes. There will be one first prize and five commendations. The first prize is $500 and each commendation will be awarded $200.

 

The closing date is 1 May 2009. The competition winners will be announced later in May. Read more about the competition.

 

This popular event brings together hundreds of photographers from around the world with each photo on the subject of communication. Last year’s theme was Women’s communication rights. The winning photo was submitted by Leslie Knott. It presents a journalist in Maimana, Afghanistan conducting an interview for her program on agriculture on Radio Quyaash, an independent women-managed radio station.

 

http://www.waccglobal.org/lang-fr/component/content/article/1552-wacc-annual-photographic-competition-launched.html

 

 

Bee mite continues to rule hives

The Highlands Farmers and Settlers Association has refuted claims by James Watson of Goroka-based New Guinea Fruit Company on the absence of the bee mite disease in Papua New Guinea.

Secretary Wilson Thompson and Eastern Highlands Beekeepers Association president Jonah Buka said the Asian bee was the natural host of the mite, was now in the country, and the colonised European bee was now becoming the alternate host.

“We have seeen that the bee mite has affected actual colonies in Goroka and Daulo districts in Eastern Highlands province,” they said.

“This was reported to the National Agriculture Quarantine Inspection Authority to independently verify a Department of Agriculture and Livestock report.

“NAQIA confirmed the impact and destruction of bee colonies in other districts of Eastern Highlands.

“A training workshop was organised in Goroka and more recently, last December, another was held at Aiyura, comprising DAL, NAQIA, National Agriculture Research Institute, Highlands Farmers and Settlers Association, Eastern Highlands Beekeepers Association and Australian Centre for International Agricultural Research on how to address this issue.

“We have, through the leadership of the Highlands director of DAL Mawe Gonapa, established a regional task force on the disease and its impact.

“Mr Watson, being a major bee farmer and buyer of honey, should just these groups and talk about how to address the problem rather than claiming that it does not exist.

“If the mite does not exist on his bees, as he claims, then he must come out and show us how he is doing this, so that other farmers can apply his techniques.

“It has been confirmed that the disease has taken its toll on honey production, hence, the price per kg has risen from K7 to K10.”

Mr Thompson and Mr Buka commended DAL, NAQIA, and NARI, who have allocated resources, together with partner organisations, to conduct awareness, training, surveillance and research into this problem.

This is particularly in regards to the impact of the bee on introduced crops such as coffee, cocoa, copra, palm oil and pyrethrum.

 

Sorcery accused father 'still alive'

By ANDREW ALPHONSE

A LOCAL councillor yesterday said one of the men who was reportedly burnt to death over accusations of practising sorcery at Ban village outside Mt Hagen, Western Highlands province, on Sunday afternoon is still alive, The National reports.

Cr John Rok of the Moge Kimininga tribe, Ban village, who claimed he witnessed the incident, said only the son was chopped to death and his house set alight while the father survived despite being chopped in the back and on his hip.

The National yesterday reported that both victims were killed and burnt.

Cr Rok told The National yesterday that the old man was fighting for his life at the Mt Hagen General Hospital while the body of the son was at the morgue.

He said the villagers brought the wounded father and his son’s corpse to the hospital late at night after police, fearing repercussions, did not attend to the crime.

Cr Rok claimed that about 400 villagers were involved in the incident following the death of a community leader last month.

He said bush knives and axes were used in the attack, and not guns as claimed by police.

According to Cr Rok, the father and son had continuously postponed a community “hearing” to resolve the death of another man.

Angered, the villagers decided to act against the pair, leading to the attack, he said.

Cr Rok said he tried to intervene but was “outnumbered and overpowered” and could not save the two men.

He said he would assist police with their investigations.

Meanwhile, Archbishop Douglas Young of the Catholic archdiocese of Mt Hagen yesterday described the killing and attack on the two men as “senseless and ridiculous”.

Archbishop Young said such barbaric killing was not the right way to seek justice, especially in a civilised society where rule of law and respect for human life should prevail.

He said even if someone was guilty, they must be proven guilty or innocent in a court of law and not through tribal justice.

Archbishop Young also said that police, due to lack of logistics and manpower, also contributed to such incidents because people were no longer looking to them as agents of Government to protect lives and properties.

 

Governmentt will know LNG project status by September

By MADELEINE AREK

THE Government should know by September whether or not it has secured the US$12 billion (K34 billion) liquefied natural gas project, according to Deputy Prime Minister and Minister for Lands and Mining Dr Puka Temu.

In-country, relevant Government agencies were finalising the benefits sharing arrangements with the project’s stakeholders to ensure everyone knows and is aware of the arrangements before the project is finalised while, externally, project operator Esso Highlands Limited is negotiating market arrangements.

PNG is targeting the Asian market particularly the Japanese, Korean, Chinese and Indian markets, where the development requirement for energy is very high and expects to sell it at a premium price.

“What we are doing right now is sitting down with the landowners to arrange benefit sharing arrangements so that landowners are part and parcel of this big project in the country,” Dr Temu told a large crowd of people in Buka last Friday.

“We are also, through our joint venture partners around the world led by ExxonMobil, negotiating markets and are going to lock them in for 30 years,” he said.

“Once we secure the project in September, the first shipment will leave our shores in 2014 for Japan.

“That means by 2025, our 50th Independence anniversary, PNG will be close to doubling or even tripling its GDP.

“That means that we will have more money in our system to move the nation forward and become one of the best developed nations in the world,” he said.

Dr Temu also told the people of Bougainville that the Government had secured its K1.2 billion equity in the project and was waiting for the rest of the project partners – Esso (32.9%), Oil Search Limited (28.7%), Santos Limited (13.7%), AGL Energy Limited (3.6%) and Nippon Oil Exploration Limited (1.7%) – to secure theirs.

Two weeks ago, representatives of some of the world’s export credit agencies came to the country on a due diligence visit, to see whether they would support the LNG project, whether politics in Papua New Guinea was stable, whether landowners would support the project and whether there was anything they could learn.

He said the Government was confident that these visitors had left satisfied.

 

Father and son burnt alive on suspecion of sorcery

By ANDREW ALPHONSE

A father and son suspected of sorcery were burnt to death at Ban village, just a few kilometres outside Mt Hagen city yesterday afternoon, The National reports.

Police said the suspects were believed to be men from the local community.

Mt Hagen duty policemen visited the crime scene after being alerted via mobile phone by other locals and confirmed seeing the corpses of the two victims.

The policemen tried to bring in reinforcements from other police units in the city in an effort to take the corpses to hospital for autopsy, but were denied access to the crime scene by heavily armed locals.

A policeman, who managed to visit the scene earlier, said the incident happened about 4pm when the villagers from the local tribe (named) suspected the father and the son of being behind the alleged sorcery death of a prominent person in the community earlier.

The policeman said the locals believed that the only way to remove the “evil spirit” in the two was to burn them alive.

He said the old man was shot and then thrown into the fire.

The policeman said the son, who was in the house with his wife, was also dragged out after the house was set on fire and burnt alive.

He said the son’s wife, who is believed to be from Nebilyer and had no part in the alleged sorcery, managed to escape.

Locals identified the father as 60-year-old Plak Mel Doa, while the son was identified as Anis Dua, both of Ban village and belonging to the Moge Kimininga tribe in Mt Hagen.

Police said they would return today with the police criminal investigations (CID) detectives and an ambulance to collect the corpses for autopsy.

Local police authorities could not be reached for comments last night.

Sorcery-related killings had become common in the Highlands and calls have been made for tougher penalties.

New Zealand envoy robbed on golf course

New Zealand’s High Commissioner to Papua New Guinea Niels Holm was robbed while playing golf with friends in Port Moresby last Friday, Waitangi Day, The National reports.  

“Eight of these guys suddenly ran out from behind the utilities shed – a couple with handguns and one with a home-made shotgun, and the rest with machetes,” Mr Holm told New Zealand’s TV One News.

“We were all fairly expertly frisked, with golf bags rummaged and one even came back to get my sunglasses, and off they all went,” he said.

Mr Holm is the second New Zealand High Commissioner to PNG to be held up on the golf course in recent years.

The National attempted to get comments from senior police officers in Port Moresby but was unsuccessful.

Morobe Show on again !

The 2009 Morobe Show will be held at the Lae Showground on Saturday, October 31st and Sunday, November 1^st, 2009.

The Morobe Agricultural Show is a major tourist attraction and showcases the agricultural, industrial, commercial and cultural aspects of Lae and the Morobe Province.

It plays a major role in the dissemination of information on cultivation, crops, diseases and breeding, as well as being the largest entertainment event in the province.

This is the 49th show since 1959 and, like its predecessors, will pull in people from all over Papua New Guinea as well as tourists from overseas.

If you’re from overseas, mark these dates on your calendar and make your bookings early!

 

Support 'Papua New Guinea' Made products

Few countries are as blessed with natural resources as Papua New Guinea.

Its largely mountainous terrain is swathed in dense tropical rainforest, the soil is rich for cultivation and the South Pacific waters off its coasts teem with fish.

Beneath the ground lies a wealth of minerals, including gold, silver and copper, and there is oil and natural gas awaiting exploitation.

It is a beautiful country too, one of the most biodiverse in the world with a dazzling variety of flora and fauna, insect and birdlife.

Yet while PNG is resource rich, it is cash poor, and 33 years after achieving independence from Australia – not very long in the life of a country – it still faces significant challenges of nationhood.

Poor transport infrastructure, unreliable electricity supply, a low standard of education, a chronic health disorder,  law and order problems and a shortage of new investment are among the factors that have held back economic development.

New incentives must be aimed at triggering investment and growth including producing and marketing more ‘PNG Made’ products.

There are many opportunities, but we need to create an awareness of the potential we have.

We must aggressively promote ‘PNG Made’ products in such ways as holding international trade fairs and introduce ourselves first in the regional markets and then the bigger international markets.

This is in light of the once-popular ‘PNG Made Trade Fair’ becoming history!

And so, PNG continues to import almost all processed food, clothing and footwear and most of the inputs to industry and commerce are also imported.

However, there are potential investment opportunities in downstream activities, which we are not tapping into.

The government of PNG must put into place strong policies which will lead to the development of a strong domestic production base to replace reliance on the non-renewable resource industries such as mining and petroleum.

The government needs to generate greater domestic production of most basic consumer and industry needs.

As such, incentives and concessions are granted to businesses with a policy of import substitution.

A concerted effort is being applied to address problems the industry has experienced. Infrastructure improvements and lowering of input tariffs would greatly reduce production costs.

The manufacturing industry has been urged to adopt cost-reducing, efficient techniques on the factory floor and within management to prepare itself for foreign competition when protective tariffs are phased out.

The Manufacturers Council of PNG (a private sector organisation) promotes the manufacturing and downstream processing in PNG.

The manufacturing sector in PNG is small.

In the 15 years between 1977 and 1992, the manufacturing sector's contribution to GDP varied between 15-18 percent.

Food processing, beverage production, and tobacco processing are the main products manufactured in the country.

The PNG government uses tariffs and subsidies, as well as direct industry support, to keep this sector afloat.

While the industry has become dependent upon such measures, the government sees the manufacturing sector as providing employment for the increasing number of urban migrants.

Most manufacturing is for domestic consumption only, and does not generate any export earnings.

To ensure industrial development accelerates efficiently, the PNG government is revising its trade and tariff policies.

Substantial changes in those policies is alleviating the problems the industry has experienced, such as the high cost of inputs.

Coupled with the concerted effort being applied to improving the country's physical infrastructure, education and vocational training opportunities and health services, there are potential investment opportunities in downstream activities.

These infrastructure improvements and lowering of input tariffs greatly reduces production costs.

Industry has been urged to adopt cost-reducing, efficient techniques on the factory floor and within management, to prepare itself for foreign competition when protective tariffs are greatly phased down.

The sector has a close working relationship with the government.

A strong representative body exists in the Manufacturers Council of PNG.

 There is regular consultation between its members and key senior government departments and statutory bodies.

The chamber also deals with private sector organisations in negotiating better prices for the supply of goods and services.

A manufacturing database is being developed for both the government and manufacturers to facilitate collection, collation and cross-referencing of essential statistical data on manufacturing in PNG.

It will be used to highlight to the Government and industry, any systems defects, deficiencies, anomalies or requirements which are in need of attention.

Overall, it will help to improve industry through the provision of improved and timely information.

The database is also expected to boost domestic and export marketing and facilitate identification of alternative sources of manufacturing inputs.

The level of skills in the manufacturing sector is also being given special attention. Organisation and planning for a major, long-term vocational training programme is near completion.

 It is intended, initially to concentrate on the manufacturing and processing industries, but provisions will be made to extend its usefulness to other sectors.

It is vital to the sector to improve the quality of its products, increase its export opportunities and improve the nation's standard of living through employment opportunities, product quality and pricing.

In co-operation with the domestic manufacturing sector, the government of PNG must put into place strong policies which will lead to the development of a strong domestic production base to replace reliance on the non-renewable resources industries such as mining and petroleum.

We must all support ‘PNG Made’ Products.

 

EU gives shark protection teeth

Captions: 1. Top cuts on the quay. 2. About 50 million sharks a year are caught accidentally

 

By Richard Black

Environment correspondent, BBC News website  

 The European Commission has unveiled measures aimed at protecting sharks, many of which are in sharp decline.

The proposals would close loopholes in current shark finning regulations, cut catches of endangered species and set quotas according to scientific advice.

About half of ocean-going shark species are threatened with extinction.

Conservation groups have given a mixed reaction to the commission's proposals, which now go to the European Parliament and Council of Ministers for approval.

"The plan is a great step forwards for the conservation of sharks in European waters and beyond," said Sonja Fordham, policy director of the Shark Alliance, a coalition of organisations representing conservation, science and recreational interests.  

"The commitments to science-based fishing limits, endangered species protection, and a stronger finning ban are essential to securing a brighter future for some of Europe's most vulnerable and neglected animals."

The regulations will also apply to sharks' close relatives, skates and rays.

But the Madrid-based conservation group Oceana said the proposals did not go far enough.

"We have got a vague document which does not contain measures to achieve the goal of conservation and sustainable management of sharks," said the group's director of investigations, Ricardo Aguilar.

"Key omissions include a commitment to the precautionary approach, and integration with existing EU and global environmental measures that aim to protect threatened sharks and their habitats."

Among other things, Oceana had been lobbying for a much tighter timescale on the introduction of these controls, some of which may not come into force for four years - and then only if the European Parliament and Council of Ministers agree.

Body of evidence

The most concrete of the commission's proposals concerns the regulations on finning.  

European vessels are not allowed to remove fins from sharks and dump the carcasses in the water - a practice that used to be rife as fishermen sought to supply fins to the lucrative East Asian market with the minimum bother.

Instead they have to land detached fins and carcasses in a ratio of weights that is supposed to ensure that everything makes it to port - one carcass for every fin.

Activists have long held that the use of relative weights is a loophole that fishermen can and do manipulate, allowing them to discard up to half of the carcasses.

They have urged the EU to mandate that all sharks must be landed with fins still attached, as the US does for many of its shark fisheries.

The commission has now accepted this argument, and is proposing that "fins attached" becomes standard across EU fleets, although there might be exceptions.

Other elements of the proposals include:

• for commercially targeted species, setting catch limits in line with scientific advice
• banning fishing in areas important for reproduction and rearing, and on threatened species
• placing observers on boats reporting large amounts of bycatch ("accidental" catches)
• collecting more data through the supply chain
• applying these restrictions to all EU-registered vessels, wherever they operate

Bycatch is a particularly thorny issue. Sharks regularly become impaled on hooks dragged by boats targeting high-value species such as tuna, or entangled in nets.

The commission envisages developing types of fishing gear that allow fishermen to target more specifically what they want to catch.

In recent years, it has become clear that sharks, rays and skates are inherently vulnerable to overfishing because they reproduce slowly and live long lives - a factor that EU Fisheries Commissioner Joe Borg recognised as he unveiled the new proposals.

"Sharks are very vulnerable to overexploitation, and the consequences of depleting their numbers may have very serious consequences not only for sharks but also for marine ecosystems and for fishermen themselves," he said.

"That is why we have set out a plan of action today which will both establish a more precautionary approach to managing fisheries where sharks are caught, and support the substantial research still needed to understand fully the role sharks play in the life of our oceans and the impact which fishing may have on them."

Richard.Black-INTERNET@bbc.co.uk  

 

 

Ramu Agri Industries proudly growing with Papua New Guinea

Since its acquisition in September 2008, Ramu Agri Industries, now a part of the NBPOL Group has almost completed its restructuring and systems to suit the existing structures and practices of NBPOL. Our brand of Ramu Sugar is etched in the history of Papua New Guinea.

The company was first incorporated in 1978, and achieved our first harvest of Ramu Sugar in 1982.

 Ramu Sugar has become a part of every household in Papua New Guinea, and when people hear the name Ramu, they automatically think of sugar.

Our brand delivers quality, affordability, and value.

Sugar consumption in Papua New Guinea is on the increase.

Figures show that in 2006, average consumption of sugar per capita was 5.4kg per annum.

In 2007, we saw this figure increase to 6.2kg, and expected finish at year-end for 2008 is 6.4kg.

 Our expectation for 2009 is for consumption per capita to be 6.8kg and further on from this, we see PNG consumption achieving 8kg per person a year.

PNG rates as one of the lowest consumers of sugar when compared to world figures.

Highest consumption per capita is Swaziland, averaging 95kgs per person per annum, followed by Switzerland at 70kgs per person per annum.

The company is growing with focus on its core businesses of sugar, beef and palm oil.

RAI’s objectives are to develop and operate these projects in accordance with the sustainable development principles of:

Ø      Best practice in agriculture and food processing

Ø      Environmental responsibility

Ø      Social accountability

Ø      Continuous improvement of performance.

New Britain Palm Oil Ltd (NBPOL), together with Ramu Agri Industries,  embrace the principles of sustainable development with a goal to ensure that future generations will continue to benefit from today's actions and we will continue to define sustainable development as encompassing responsible resource stewardship, effective pollution prevention and the capacity to produce PNG Made Products efficiently.

The goal of sustainable development will be achieved by balancing the considerations for people, planet and profit in all management decisions.