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.
Monday, April 04, 2011
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.
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.
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.
Sunday, April 03, 2011
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’.”
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.
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.”
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.”
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.”
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.”
Friday, April 01, 2011
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.
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”.
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.
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.”
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.”
Thursday, March 31, 2011
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 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.
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.
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.
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.
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.
“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.
National Agriculture Research Institute’s high altitude research station is situated in picturesque Tambul, Western Highlands, on the foothills of the majestic Mt Giluwe.
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| Mt Giluwe towers over the station |
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
|
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
|
Vegetables and fruit grown in abundance, supplemented by readily-available chicken, pork, sheep, goat, cattle and fish from aquaculture projects.
 |
Potato screen houses
|
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
|
“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.”
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.
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.”
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.
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.
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.
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.
Wednesday, March 30, 2011
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.
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.
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