Panguna landowners claim maltreatment

LANDOWNERS of the Panguna copper mine, who went to war in 1988 over what they claimed then was utter disrespect and disregard for their existence and welfare, are claiming the same maltreatment as the National Government,  the Autonomous Bougainville Government and the Bougainville Copper Ltd prepare for negotiations on the possible reopening of the mine, The National reports.

They are claiming that the interim Panguna Landowners Association (PLA) has not been recognised and its reconciliation process not supported.

In a letter dated Oct 5, to chairman of BCL Paul Coleman, PLA interim secretary Lawrence Daveona said: “The people of Panguna mine leases believe that ABG, BCL and the Government have the legal obligation to assist Panguna mine landowners.

“For far too long, even before the crisis, we have been used for your own benefits. Through the crises and up till now our people are still suffering.”

He said while the name Panguna landowners was “too often prostituted in the news media by the chairman of BCL in his chairman’s statement at the AGM”, the same chairman had said variously that the landowners were disorganised.

 “Our simple question now especially with the arrangements to prepare for Bougainville copper agreement review is: How long do we have to wait for you our partners (with the resources) to assist us with funding to enable us to be prepared and be ready to take part in the BCA review?” Daveona said in his letter.

It ought to be noted that both BCL and the ABG had assisted the Panguna landowners with their reconciliation ceremony last October.

The company donated K5, 000 and ABG threw in K300, 000.

Daveona said the work of reconciliation and disarmament was not yet completed and it would take at least two to three million more to cover the entire island.

He said presently their pleas were falling on deaf ears and it seems the reconciliation process might be short-lived and the review of the BCA proceeds without the landowners participating.

“Most of the interim PLA executive members have worked tirelessly year after year over the past 21 years keeping the Panguna landowner’s fire burning because of the concern for the welfare of their people without receiving any payment. Our concern for our people is deep rooted and we will not rest until such time we have achieved our goal,” Daveona said.

“All we need from you as partners in this process are for you to assist us with:

• Make funding available to ABG electoral commission to conduct PLA elections; and
• Make funding available for United Panguna Landowners Association (UPLA) BCA review task force.”

Daveona said he was very disappointed to hear comments repeated about the Panguna landowners not being organised and do not constitute a legal body that BCL can organise.

He said the landowners had formed the interim organisation out of their resources and it was up to the company to assist with an election to make the body be properly elected and incorporated.

Daveona was particularly critical of the Government and its Office of Bougainville Affairs which had not accommodated a single request to date.

He said such neglect had led to the crisis.

 

Time for GST reform

From AARON HAYES

 

As a small business operator in PNG I would like to make some observations about the unpopular 10% Goods and Services Tax (GST) which some businesses still incorrectly refer to as VAT (old name).

Both businesses and consumers hate the GST because  

(a) The 10% rate is too high and  

(b) The tax is not being collected fairly.

The flat 10% rate makes purchases significantly more expensive and discourages spending.

These often makes people “go without” or buy cheaper quality food and consumer goods which reduces quality of life and can even affect nutrition and health.

Consumers think twice about buying big-ticket items like TVs and fridges and often end up buying cheaper brands that don't last long, and then they are back to square one with nothing but unrepairable goods littering their back yards.

In terms of collecting the tax, it's my understanding that some businesses that are not registered to collect GST are still adding 10% to their invoices.

Customers who are none the wiser just pay up.

This is fraud.

Some other businesses that are registered to collect the tax always add 10% GST to their sales invoices but do not remit all GST takings to the Internal Revenue Commission which is the government's tax collector.

They under-state their income to the IRC and surrender less GST than they have actually collected.

Some businesses are up to five years behind in remitting their GST revenue to the IRC.

This is also fraud but the IRC does not seem to have enough resources to audit all businesses registered for GST and prosecute those who are not playing fairly.

So the culprits just get away with it.

Another problem the IRC should be concerned about is those businesses turning over more than K100, 000 per year that have not registered to collect GST.

The government is missing out on huge amounts of GST revenue from these businesses.

Some privately owned hotels and hire car companies in Port Moresby are notable culprits.

They are deliberately avoiding collecting GST because it gives them a price advantage over their competitors.

The best way to make this unpopular and unfair tax work for the future is to reduce the rate to 5% and then put more IRC resources into auditing and compliance and make everybody cooperate.

If all businesses are collecting and remitting the tax properly at 5% the government will still be financially better off than under the current unaffordable and unpopular 10% rate which many businesses are failing to collect and remit.

Businesses that are not registered for collecting GST will be happier to sign up with IRC if the tax is only 5%.

Businesses not remitting the full amount of GST collected will remit more reliably if the rate is lower.

Crooked busiensses that are not registered but still collecting the tax will get away with less loot.

And consumers will find 5% much less painful and this will stimulate spending which will be good for the economy.

Let's start a campaign for reforming an unpopular 10% GST into a workable 5% GST that everybody will support.

 

 

Aaron Hayes
Sec 55 Lot 25 Lokua Avenue, Boroko
(PO Box 531 Gordons)
Port Moresby, Papua New Guinea

Vision 2050 is dead

By JAMES WANJIK

 

THE STORY "Govt unveils plan" (The National, Tuesday, October 12, pp. 1-2) is very clear.

Vision 2050 is a cover for a particular leader's popularity.

It is now dead.

Legislation to lock in the Medium Term Development Plan puts beyond doubt that Vision 2050 is dead.

Hiring consultants and advisers was Waigani's way of propping up popularity of a particular leader.

Thank God, Paul Tiensten is a political novice no more.

Papua New Guinea will know why Vision 2050 would have been a bad mistake in due time.

NGE looking at six new wells despite shares fall

By PATRICK TALU

 

NEW Guinea Energy (NGE) says its shares price fell after the high impact Panakawa well failed to find oil, The National reports.

However, a revised deal with joint venture partner Talisman Energy means three to six exploration wells could be drilled next year.

In a statement, RBS Morgans Ltd analyst Nik Burns said at the current share price, NGE would make an inexpensive acquisition for someone looking to expand its position in PNG.

“We view the NGE shares price as over-sold and rate it as a speculative buy, target price to A$0.21,” Burns said.

The high impact well was drilled in third quarter this year, but failed to intersect oil.

On a positive note, the well did intersect a structure with a viable reservoir, and the well was drilled for under US$11 million.

But this did not protect the shares , which fell to as low as US$0.10.

NGE has renegotiated the terms of the Talisman deal to PPL 268 and 269.

At least three wells are now expected to be spudded by June 30 next year.

In addition to this, NGE is progressing plans to drill up to three additional wells in its other foreland blocks.

 “PNG is relatively under-explored and is highly prospective for oil and gas with attractive fiscal terms on offer,” Burns said.

There should be plenty of news flow on drilling activity and results, beginning next January, he said.

 

 

Government unveils plan

MTDP to cost K65 million in five years

 

PAPUA New Guinea’s development plans and programmes for the next five years will be driven by the medium-term development plan (MTDP), The National reports.

Cabinet yesterday approved the MTDP, which is part of the government’s 20-year strategic development plan.

It was estimated that the total cost for the first five years of MTDP (2011-15) would be K65 billion, which was essentially the annual budgets for the country for the next five years, starting with K8 billion next year.

Legislation to lock in the plan will be brought to parliament next month.

The decision by cabinet yesterday raised questions about the future of the government’s Vision 2050.

It is believed that the Vision Centre, which promotes the Vision 2050, will be abolished, but this could not be confirmed.

National Planning Minister Paul Tiensten yesterday confirmed cabinet’s approval of the MTDP.

 “This plan is more detailed. Budgets, starting with 2011, will reflect this plan.

“We have been having budgets that are open-ended. Not any more.

“There will be targets to be achieved and contracts will be performance-based. This way,

we will achieve our goals,” he added.

Tiensten said his department would monitor and implement Vision 2050, MTDP and SDP starting next year.

“The National Planning Department’s role will be purely monitoring and implementing, and nothing else.”

The minister said the MTDP would make the government, development partners, donors, departments and provinces accountable. It would also eliminate misapplication of policies.

The minister said he expected development partners like AusAID to “fit into the plan”.

With cabinet approval already given, Tiensten is expected to meet with PNG’s development partners in Port Moresby tomorrow to outline the plan, and what is expected of them.

“I expect them to streamline their programmes and support the government’s plan.

“Their funding of programmes, such as HIV/AIDS, will have to be realigned with our national health plan and the MTDP.”

He said the targets of the millennium development goals could be achieved at the 2015 target date, when the first MTDP cycle was completed, if the government and its partners pool their resources under this plan and work together.

 

 

Potape reinstated

PRIME Minister Sir Michael Somare has gone a full circle by appointing Komo-Margarima MP Francis Potape as the minister assisting the prime minister on climate change and LNG matters only weeks after stripping him of these functions, The National reports.

Documents furnished to The National seemed to suggest the prime minister had a change of heart last Friday to reinstate Potape the powers.

Two weeks ago, Sir Michael removed Potape’s ministerial powers days before leaving for the United Nations meeting in New York.

Potape had claimed that the documents for his removal were forged but the government printing office, which produced the gazettal documents, said the signature of the prime minister were authentic.

It seemed the prime minister did strip Potape of those powers, because he (Somare) had signed new instruments to reinstate him.

Copies of the instruments No: S1 245/2010 and National Gazette No: G239, dated Oct 11, 2010, obtained by The National, revealed that Potape’s responsibilities included the powers and matters related to:

* Liquefied natural gas and independent issues arising;

* Office and functions of climate change;

* Medium-term development goals;

* State protocols and ceremonies;

* Parliamentary services;

* Extractive industries including landowner development issues; and

* Other duties and powers as delegated from time to time by the prime minister.

The prime minister’s office and the media unit could not be reached for comments.

 

 

MP tells police to buy vehicles

By JEFFREY ELAPA

 

THE Police Department has been called to put a stop to using hire cars and unmarked vehicles to do police work, The National reports.

Member for Moresby Northeast Andrew Mald said this after several incidents involving armed criminals pretending to be policemen in police issue uniforms and firearm committed crimes in the city.

Mald said in several instances, organised crimes were committed using state-issued items while using unmarked vehicles and this was becoming a major concern to the public.

He said the state could not continue to waste taxpayers’ money for the police to continue to hire vehicles when they could simply buy new police vehicles which were also a pride for the force.

“If the department does not know how to buy vehicles and have all the necessary features of the constabulary, then give me the money and I will buy it for them like what I did for my electorate when I bought seven new police registered vehicles,” he said.

Mald said many policemen were also being implicated in organised crimes in the pretext of doing police work in unmarked vehicles as they are not distinguishable.