Tuesday, January 15, 2013

Background to the O’Neill-Garnaut stand-off


By MALUM NALU

The stand-off between Australian climate change advisor and chairman of Ok Tedi Mining Ltd, Professor Ross Garnaut, and Papua New Guinea Prime Minister Peter O’Neill began on Friday, Nov 2, 2012.
O’Neill  accused Garnaut in parliament  of insulting the nation's leaders and said Garnaut, who until recently was also chairman of the PNG Sustainable Development Program (PNGSDP) trust, would not be allowed back until control of the mine was given back to the PNG people.
The trust was given ownership of the OK Tedi mine, located in PNG's Western province, by mining giant BHP.
"I will put (Prof Garnaut) on notice that he is no longer welcome to this country," O'Neill told parliament that day.
"He can stay out of PNG and conduct himself.
“ I want it out on record in this parliament that we will not tolerate people of such standing coming in and disrespecting leaders of this country."
O'Neill was infuriated by a report in The Australian by longtime PNG-based journalist Rowan Callick, which quoted Prof Garnaut as saying that with such an accumulation of wealth in PNG, it was "tempting for political figures to think of better ways of using it right now rather than putting it into long-term development".
He accused BHP of running the PNGSDP by remote control from Melbourne and questioned whether PNG had benefited from the project.
"Has it delivered to the expectations of our people, particularly the people of western province?" O’Neill said.
"What have they delivered?
“We have given them a blanket cover, blanket insurance, protection from this parliament that we will never sue them for the damage they have caused to our people.
"We have seen many big announcements about major projects that will change the course of this country over the past 10 years, and yet we have yet to see one of those projects being delivered."
PNG foreign minister Rimbink Pato told a press conference on Nov 7 his department had been directed to ban Prof Garnaut from entering the country.
Pato made the comments after O'Neill said Prof Garnaut was no longer welcome in PNG because of insults to the nation's leaders.
Callick wrote in a follow-up article: “The issue at stake would appear to be control of the Ok Tedi revenues.
“Where should this reside?
“What structure offers the best hopes for effective distribution?
“A recent review of PNGSDP by Australian and PNG academics said its ‘governance arrangements have served it well, and its independence from government, though sometimes a source of tension, is widely recognised as a strength’.
“The O'Neill government has itself supported the creation of a sovereign wealth fund to hold some of the windfall revenues from the gas project -- whose aim is also to keep politicians' hands off.
“Garnaut told The Australian that politicians in PNG may be tempted ‘to think of better ways of using (the Ok Tedi dividends) right now rather than putting it into long-term development’.
“It is very strange that such an uncontroversial comment should place the government at odds with its biggest source of revenue, and potentially with the wider sector on which its future depends.”
O’Neill rubbed salt onto the wound when addressing the Australian National Press Club in Canberra on Nov 27: "As a leader of the country I cannot stand by and allow comments like those to continue.
"It was irresponsible.
“He has to take ownership of that statement."
O'Neill said his government had sought an explanation.
"Some of the explanations he's given to us are not acceptable to us.”

Coffee cooperatives benefit from international connections


Three highlands-based coffee cooperatives are seeing more benefits through their recent connection with an international coffee association.
Over 1, 000 farmers under the Apo, Angra and Kange(AAK) Coffee Cooperative Societies based in the Eastern Highlands, Chimbu, Jiwaka and Western Highlands provinces are getting premium for school fees and are soon to access a housing scheme with the recent purchase of two Lucas sawmills for milling their timbers.
Chairman of Apo Cooperative Society Nicholas Ello (yellow shirt) supervising the unloading of coffee from a Waghi Valley Transport truck coming into Goroka with coffee from the Western Highlands, Jiwaka and Chimbu provinces.-Picture courtesy CIC

These was possible through their recent alliance with the Switzerland- based 4C Association with assistance from Nestle and VolCafé, parent company of PNG’s top coffee exporter, PNG Coffee Exports.
The 4C Association is the platform that brings together stakeholders in the coffee sector to address sustainability issues in a pre-competitive manner.
To date, 250 members worldwide have joined the 4C platform.
Cooperatives coordinator, Brian Kuglame,  said overseas partners were also aiming to introduce more social and economic schemes like central wet coffee mills and assist farmers in marketing and transport.
“We see that the social and economic plans of our international partners are viable to assist our farmers’ local needs and it is a good opportunity that the farmers will not let go,” he said.
Kuglame said the cooperatives were a role model for other farmer-based coffee cooperatives to link up with the Coffee Industry Corporation(CIC) Ltd and other coffee companies and organisations to access available services and opportunities.
He said all credit for the success of the AAK Cooperatives should go to CIC for successfully implementing the CIC Eight Point Plan introduced in 2002 on grower-owned marketing.
“CIC grower-owned marketing policy is a practical programme to empower and benefit disadvantaged farmers and AAK Cooperatives has made it a reality to showcase that grower mobilisation is the way forward,” Kuglame said.
Through the Eight Point Plan, the CIC is promoting such grower-owned group marketing to achieve higher coffee quality, volume, income and other related incentives including addressing labor issues.

Ross Garnaut episode a ‘sad commentary’ on Australia-PNG relations


Australian Development Policy Centre director Stephen Howes has described the Ross Garnaut episode as “ a sad commentary” on the part of both Australia and Papua New Guinea governments.
Stephen Howes

“First, it is remarkable just how little attention this issue has received given the stakes involved,” he said.
“ Not only is Ok Tedi by far PNG’s largest contributor  to government revenue, and an environmental challenge which needs to be managed with care, but it is an operation in relation to which decisions have to be made about mine-life-extension in the next couple of years.
“Second, and more importantly, there is an issue of freedom of speech here.
“People should be able to criticise freely whichever country they want.
“ Individuals should be no more banned for critical comments from countries they don’t belong to than locked up for criticising their country of citizenship.
“Third, where is Australia in all this?
“The only public response of the Australian government has been from parliamentary secretary for Pacific Island affairs, Richard Marles, quoted as saying that ‘Papua New Guinea was within its rights to block entry to Professor Garnaut’ and that ‘who PNG says is welcome or not in its own country is obviously a matter for PNG’.
“ Really?
“Observance of human rights is now entirely a domestic issue for PNG?
“ We insist on democracy in Fiji but not free speech in PNG?
“Australia has no obligation to support its citizens to undertake lawful business opportunities internationally?
“It is hard not to see Manus behind Australia’s lack of protest.”

Ross Garnaut worried about PNG ban precedent


ABC

Australian economist, Ross Garnaut, says the ban imposed on him by the Papua New Guinea Government, is a low point in Australian diplomacy and PNG democracy.
Prof Garnaut resigned as chairman of Ok Tedi Mining Ltd (OTML) after he was banned from entering the country.
PNG Prime Minister, Peter O'Neill, imposed the ban on Prof Garnaut last November after he weighed into a spat between O'Neill and mining giant BHP Billiton over control of the PNG Sustainable Development Program - a US$1.4 billion charitable trust that is the biggest shareholder in Ok Tedi Mining.
Prof Garnaut resigned last Friday, saying was not possible for him to fulfil his responsibilities to this large and complex company while the PNG government maintained its ban on him.
In happier days…Garnaut signs an agreement for OTML to work together with Western province with Governor Ati Wobiro in Tabubil last September.-Picture by MALUM NALU

He is concerned the PNG government action may have set a precedent.
Prof Garnaut is calling on the Australian government to negotiate an agreement with PNG to prevent this sort of incident occurring again.
"The important thing now is that things like this never happen again, that a government never again seeks to exercise leverage over legitimate international corporate interests through the misuse of immigration powers.
"If it became an accepted precedent it would introduce a major new element of sovereign risk, a barrier to PNG development and a recurring volcano in bi-lateral relations." he said.
Long-time PNG observer Stephen Howes from the Australian National University says the Australian government should have criticised the ban.
"Australia should be supporting free speech in PNG and Australia should certainly be supporting the rights of its citizens to engage in lawful business activities in other countries." he said.
He says the Australian government may have stayed silent because it needs PNG's support for the asylum seeker processing centre on Manus Island.

Monday, January 14, 2013

In Port Moresby today

By MALUM NALU

Pictures of my wanderings around Port Moresby today.
It rained heavily last night and there was rubbish strewn all over the roads and overflowing drains.
We have to stop littering and keep our city clean.
The buai sellers have been chased off the streets by City Rangers engaged by National Capital District Commission (NCDC) and that is helping a lot to keep our city clean.
We may accused the rangers of brutality, however, how else can we get buai sellers to listen to authority?

As expected, the drains around Port Moresby are chock-a-block with all manner of flotsam and jetsam after last night's deluge.



A free car wash in the overflowing drain along Wards Road, Hohola, this morning.



Overflowing drain along Wards Road, Hohola, this morning.




Nice, shady corner next to Bishop Brothers, Wards Road, Hohola.




Filthy sight along Wards Road, Hohola, this morning.

You may accuse the City Rangers of brutality against buai sellers, however, for one thing, the place looks so much better without buai sellers. This area outside BSP Waigani, where the paper seller is sitting, is usually knee-deep with buai sellers and buai pekpek.


Today is the first day I've seen the bemobile bus stop along Waigani Drive so clean. Why? The buai sellers have been chased away by the City Rangers!




This is the area outside The National office, Waigani Drive, which is maintained by our gardeners.