A thought for Valentine's Day

By IAN TAUKURO

Morning All,

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

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

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

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man does something that causes the woman to believe that he is, yes, really, really, cheating, when he suddenly becomes withdrawn and distant, all because that particular day he privately mourned the loss of his favourite NRL team!

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

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

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

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

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

Ian

 

Five shot dead in fresh tribal clash

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

Police probing New Zealand envoy's hold-up

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

 

Manufacturing sector stands to lose on tariff reforms

By CHEY SCOVELL

CEO

PNG Manufacturers Council

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

Issue – Electricity Supply & Generation

Background

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

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

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

Issues

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

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

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

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

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

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

Position

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

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

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

Issue – Highlands Highway Network

Background

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

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

Issues

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

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

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

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

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

Position

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

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

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

Issue – Minimum Wage Board Determination (Jan09)

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

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

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

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

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

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

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

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

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

Issue – Telecommunications

Background

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

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

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

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

Issues

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

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

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

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

Position

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

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

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

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

 

Manufacturing sector in Papua New Guinea moves forward

By CHEY SCOVELL
CEO
Papua New Guinea Manufacturers Council

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

French firm poaches and patents PNG's 'Bilum'

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“So too can you.

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