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.”
Friday, April 01, 2011
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.
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