PNG tells superpower not to fish in ‘our’ waters
PAPUA New Guinea has given notice to the United States that it is not welcome to fish in Pacific waters, The National reports.
Frustrated over the Americans’ stubbornness following two years of negotiations, PNG had opted out of the multilateral treaty on fisheries with the superpower.
The PNG position would be taken up by Pacific Island nations who are members to the treaty.
The treaty allowed US fishing vessels to fish without limit, catching in excess of 500,000 metric tonnes of fish which worked out to about US$2 billion of finished fish products each year.
In return, Pacific Island nation members of the treaty received an average of US$2 million each year in access fees and development components.
Cabinet last Thursday considered and approved a submission by Fisheries and Marine Resources Minister Ben Semri to adopt this course of action.
Acting Prime Minister Sam Abal said the treaty was outdated and could not accommodate recent economic partnership arrangements with other countries such as the European Union where it recently ratified an interim economic partnership agreement.
The EU agreement allowed duty free access for unlimited fish products into the vast European market.
This hardline stance by PNG, on behalf of smaller Pacific Island nations, would sent direct signals to Washington that the multilateral fish treaty was unsustainable.
Abal said in a statement released in Port Moresby: “This is your time, US, to recognise island countries and increase licence fees for fishing.
“The PNG government’s decision is the right thing for the nations in the region. It is about time our friends state clearly and fairly their interest with us. They must give credit where it is due,” Abal said.
“Pacific Island countries want the fishing licence fees to be increased.
“The US would have recognised that the Pacific Ocean, and the fish and fishery products, is the main livelihood of our nations.
“Obviously, we want more for our fish and related products than what has been determined by the treaty so far.”
This meant the fishing effort afforded to the US treaty could now be redirected for domestic production to utilise the opportunities presented in the European market, the world’s largest fisheries consumer market.
The treaty required a 12-month period for notification by state parties.
Tuesday, April 05, 2011
Monday, April 04, 2011
NBPOL inks US$240 million debt facility
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.
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.
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.”
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