Thursday, April 07, 2011

Paoua New Guinea enjoys fifth year of economic stability

THIS year will be the fifth year that Papua New Guinea will enjoy economic stability, Bank of PNG Governor Loi Bakani said, The National reports. He said this on Tuesday when presenting a paper on PNG economic update at the PNG Indigenous Business Summit and Trade Expo at Kokopo, East New Britain.
He said the estimated gross domestic product (GDP) from 2007 to this year was 7.6%.
He said this was an increase of 31% – from K1,348 per person in 2007 to K1,760 per person this year – and was a major improvement on the economic conditions of economy and average per capita income in PNG.
“This trend is projected to continue for the next two years or so during the construction of the liquefied natural gas project.”
“When we come to the production and exportation of the LNG project, this is projected to go on further.”
He said to give a background of improvement in economy in the last few years, we had to depend on the external sector which was the global economy.
“PNG has the opportunity of having a stable government in the last few years and that was our problem in the past as unstable governments created a lot of uncertainty in terms of having inconsistent policies.”
“Stable government has been one of those prominent components in stability and is reflected in our economy.”
Bakani said while there was macroeconomic stability, businesses should take advantage of it to expand activities because when the tide changed (instability), volatility in exchange, high interest rates and volatile inflation would cause businesses to have doubts about doing more business.
“The improvements to rural infrastructures, marketing, down-stream processing, value-added activities and products and participation of local businesses and entrepreneurs in the agriculture sector should be the focus of government.”
Bakani said the summit would address how best local businesses, groupings like corporative societies, youths and women’s groups could participate meaningfully in some of these activities to empower them in deriving benefits from the LNG project and strong economic growth.
“We, at the central bank, will do our best to ensure the exchange rate appreciation is not pricing out our traditional export sector, making us uncompetitive in the international commodity markets.”
Meanwhile, Bakani said the government must focus on developing the traditional industries especially the agriculture sector which could alleviate the Dutch Disease.
Dutch Disease or the resource curse refers to an economic condition where a mineral boom leads to an appreciation of the exchange rate, which in turn depresses output in the tradable sector, in this case, agriculture.
He said the government must concentrate on improving the social indicators such as health, education, law and order and encourage local business as ways to lessen the Dutch Disease.

Wednesday, April 06, 2011

Shop shelves low on sugar

By BOSORINA ROBBY
PORT Moresby shops yesterday reported acute shortage of sugar on their shelves – whether it is Ramu Sugar or King Sugar from Seeto Kui, The National reports.
The major shops such as Stop N Shop and the TST and mini-supermarkets in the suburbs had limited stock or had run out since last week.
At the TST Tokarara Supermarket, the 1kg packet was selling for K6.90 while the 500g was selling for K3.90.
The management said these were the last in stock before they run dry.
There was a notice at the shop urging shoppers to limit their purchases to 2kg each.
At the JMart Supermarket at Erima, the management had restricted customers’ sales to only two packets of 500g Ramu Sugar at K3.90, adding that stock was very low.
However, they are also selling imported sugar from Australia and Thailand such as the Fabulous White Sugar selling for K8.45/kg and the K23.20/2kg.
Its unrefined brown sugar is selling for K10.30/kg.
The Black and Gold white sugar is selling for K11.50/kg and the unrefined brown sugar is K18.30/kg.
Lin Pure Refined Sugar from Thailand is selling for K5.50/kg while Number One Brothers Sugar is selling K1.80/200g and CSR brown sugar unrefined is selling for K11.50/500g.
According to the Ramu Agri Industries (RAI), Papua New Guinea’s only sugar producer and supplier, the shortage was due to many factors but mainly environmental.
RAI took out a paid newspaper advertisement last week explaining that the amount of sugar produced was dependent on the growing conditions in the Ramu Valley.
It said cane growth and sugar production had been affected by the wetter than normal weather in the past five years, resulting in pests and diseases in the fields and the sugar content.
The company had since asked the Government to lower import tariffs on sugar so as not to pass on the high costs to consumers.
RAI was also expected to import 4,000 metric tonnes of sugar this month to meet the demand for sugar until the start of the Ramu cane harvest next month.
According to the global markets, not all sugar-producing countries sell their processed sugar on international trade markets.
Currently, 70% the world’s sugar is consumed in the country where harvested and only 30% is traded outside country of origin.
Similarly, approximately 70% of the world’s sugar comes from the sugar cane while the rest comes from its alternate, the sugar beet.

Doctors can earn three times more in LNG project

By JAMES APA GUMUNO
DOCTORS engaged by the LNG project are paid three times more than their counterparts engaged in the public sector, The National reports.
A surgeon at the Mt Hagen General Hospital said yesterday a doctor engaged in the LNG project earned between K7,000 and K11,200 a fortnight while the Health Department was paying its doctors between K1,500 and K3,000.
This discrepancy is known by working doctors, who are currently agitating for increased perks and privileges with their employer, the state, and unless remedied, is likely to see an exodus of doctors from the public sector.
Although the claim could not be substantiated by the LNG project developers, the surgeon, who wished to remain anonymous, said many of his colleagues had been and “are being lured” by the LNG project and other resource companies.
Dr Thomas Vinit, the chairman of the review committee, confirmed last night that there was a grave danger of too many specialist doctors leaving the public sector unless the state could break away from the single line salary structure to compensate specialists properly in order to retain them.
“We actually did a job value study and established that there is too much discrepancy between what is on offer from private sector and what the go¬vernment is paying doctors.
“The government spends so much money on training doctors for up to 14 years.
“ If these doctors were suddenly to leave, it would leave a big vacuum in the public health sector.
“What we did (going on strike) was to prevent people from moving out. The government has got to see that.”
Vinit said if the national doctors were to be involved in a mass resignation and then return on individual contracts with the government, it would cost the go¬vernment a lot more because each specialist would be demanding the market rate.
“It takes the government up to K200,000 to train one doctor. To have that doctor leave with all the skills is a big loss,” he said.
The Mt Hagen surgeon said it was common knowledge that ExxonMobil and its sub-contractors were attracting specialist doctors.
The surgeon was considering his options too, he told The National.
He said: “Why should I keep on suffering on substandard pay when there are opportunities out there which I can explore and earn a decent living for me and my fa¬mily?”
He said the week-long NDA strike last week should send a clear message to the government that they must improve the pay and working conditions of national doctors – pay and conditions which he claimed had changed very little in the past 20 years.

Tuesday, April 05, 2011

Land secretary tells lies about land leases

By MALUM NALU
Secretary for Lands and Physical Planning Pepi Kimas may have told lies about his department’s involvement in giving away land to foreign businesses under special purpose business agriculture leases (SPABLs).
Kimas claims his department has not been selling land to foreigners, instead shifting the blame to landowner companies, however, government gazettal notices provided to media yesterday (Tuesday) show that he has been granting SPABLs amounting to 5.2 million hectares since March 2003.
National Land Development Advisory Group (NLDAG) chairman Thomas Webster, also director of the National Research Institute (NRI), made the revelation yesterday as affected landowners gathered at the Holiday Inn in Port Moresby last night to talked about “structural theft” of their land at a meeting organised by the Centre for Environmental Law and Community Rights (CELCOR).
A detailed listing of gazettal notices including dates, gazette number, grantee’s name, term of lease, land area, land portion, milinch, fourmil, and provinces was also provided by Webster.
“According to records available from government gazettal notices, the granting of SPABLs, culminating in the current total of 5.2 million ha, has been executed by the secretary for lands and physical planningas a delegate of the minister for land and physical Planning since March 2003,” he said.
“The concerns raised by non-government organisations and academics have been ongoing, and because there has never been any response by the government despite this being brought to the attention of the National Land Development Programme Management Committee, the NGOs had taken the matter up with the United Nations, claiming that the process is flawed.
“NGOs alleged that the ultimate result is disempowerment rather than empowering customary landowners.
“Granting 99-year SPABL leases effectively removes all customary land user rights over the land for three generations whereas the normal lease-lease-back (LLB) arrangements are usually 25 to 40 years.
“NGOs are therefore calling for the immediate suspension of the granting of SPABL.”
Webster said the NRI had also been concerned that some SPABLs were being issued to individuals and business entities when the National Land Development Programme (NLDP) had advocated for customary Land to be registered into incorporated land groups (ILGs), recognising communal land ownership and user right systems, practised by PNG societies.
The ILGs can then lease the land to a developer.
“Two new laws, the Land Registration (Customary) (Amendment) Act and the Land
Group Incorporation (Amendment) Act was passed by Parliament in 2009, but the latter is yet to be gazetted and come into operation,” Webster said.
“The amended Land Group Incorporation Act is better, bringing more accountability to the management of the ILG and the revenues generated from land leases.
“It also prevents the sale of land registered to an ILG – only the land lease can be sold or traded for a specified period of time.
“The continuous granting of SPABL is regrettable in that it contradicts the goals and objectives of the NLDP.
“In other words the government is sending out mixed signals; whereas NLDP places considerable emphasis on developing and empowering customary landowners, the continuous granting of SPABL by DLPP on the other hand is facilitating for their disempowerment.
“Understandably to the common villagers, this is very confusing indeed.
“The Department of Lands and Physical Planning argues that it is freeing up land for development; it maintains that it is the leaders of customary landowning groups themselves who are directly deceiving their own clansmen by signing off their user rights through SPABL.
“This line of argument needs to be placed in the perspective of growing dissent.”
Webster said in June 2009, the court upheld an appeal by Musa Valley Management Company Ltd and revoked Kimas’ decision to issue LLB title to Musida Holdings Limited for a large area of land in Northern province.
“Furthermore, unless the secretary for DLPP can prove in no uncertain terms that more than 95% of SPBAL granted to date are genuine and/or there are no existing dissent/flaws among parties/landowners, it would make more sense to revoke all land leases issued so far, consistent and similar to that done for Musa Valley Management Company Ltd in Northern province.
“It has come to our notice that due process has not been followed and the Lands Department had not insisted as required before issuance of most of the SABLs now being questioned.
“These processes allow and require consultations among all landowners as well as consent by all of them before their land is registered to one person, persons or entity.
“Since these leases are being granted by delegated authority, it would be in order for the Minister to withdraw leases issued by delegation until such time as when the new laws approved by Parliament come into effect.”

Landowners decry ‘theft’ of customary land

By MALUM NALU

Emotional landowners tonight described the controversial special purpose agriculture and business leases (SPABL) as “structural theft of our land”.
The landowners gathered at the Holiday Inn at a special gathering organised by the Centre for Environmental Law and Community Rights (CELCOR) to spell out their grievances.
“We fear that our children are being dished out the same fate as those in Rwanda, Somalia, Sudan, Congo Delta and many other countries in Africa, whose governments have induced poverty rather than protect its people against foreign interventions who came into those countries just to rip the riches and leave,” they said.
“This is a war declared on us by foreigners with the full support of our politicians, bureaucrats and local front men, and while we fight to protect our women and children, Papua New Guineans bestowed with power to look after us have abandoned us to count the gains for themselves brought on by these interventions.”
They demanded:

• That relevant government ministers cause the immediate cancellation of the titles to all customary land that was recently converted into SABLs and all permits and approvals revoked;

• That the agriculture minister direct the national agriculture council to review its approach towards the implementation of the National Agriculture Development Plan (NADP) and focus on ways in which landowners the,selves can be involved in scales within their own capacity without jeopardising their future;

• Those officers responsible for the conversion of customary land into state leases at the department of lands and physical planning are dealt with accordingly; and

• Police commissioner withdraws all police uniforms from security personnel who use police uniforms at logging camps to intimidate and abuse the rights of legitimate landowners

“We object in the strongest possible terms this act by the government, and regardless of our financial capability, we will fight it till these titles are cancelled as we believe that our land has been acquired by the government through fraudulent means,” they said.
“It is becoming a serious concern that the government, through its agencies, is granting licenses and leases without properly consulting us before converting titles to our customary land into state leases.
“To date, the government has gazetted more than 5.7 million hectares of our customary land that was converted into state leases over 99 years.
“Our message is simple: we want trespassers out of our land with immediate effect!”

Security issues bug Japan gas investors

By PATRICK TALU

SECURITY concerns in Papua New Guinea are undermining potential Japanese investment in liquefied natural gas, The National reports.
This was revealed by an investor who is in the country to get an update on his company’s investment here and to gather more information on the ongoing LNG project.
Requesting not to be named, the investor said Japan had an immediate need for liquefied natural gas (LNG) and PNG was being considered a major supplier of clean energy.
He said his country would have enough supply of LNG in light of the two huge multi-billion clean energy projects to be operated by ExxonMObil and InterOil Corp.
The source said Japan imported clean energy from the Middle East and African countries but due to current crisis in those countries, PNG appears to be a potential supplier that could play a dominant role in the energy market.
He said PNG had “world class LNG projects” underway which could compete with those in Australia.
However, he said: “PNG’s potential as supplier has been undermined by the ongoing security issues and non-conducive climate for investment.
“Japanese investors want to invest in the energy sector but the country’s security issues made us hesitant to do so.
“We have already existing investments in various sectors here as well as in the current PNG LNG project through joint venture partnerships and other direct investments.
“We would like to invest more in other sectors like mining but we would very much need security guarantee for our money,” he said.
He also pointed out that PNG is rich in natural resources but managing and distributing the wealth to Papua New Guineans was another thing.
The Japanese investor stressed that the current activities pertaining to Hides 4 PDL7 LNG plant site, the Juni Technical Collage, Kombolu Camp dispute, Kaiam incident and unending landowners’ demands for fulfillment of government commitments to landowners were being closely watched by international investors.
He said it was of paramount importance that necessary measures were taken seriously to safeguard major projects that would help transform PNG into a robust economy.

Ulli Beier, great Papua New Guinea art mentor dies

By MALUM NALU
The great Papua New Guinea art mentor, Ulli Beier, died in Sydney on Sunday aged 88.

The great Ulli Beier
He will be remembered fondly by many PNG artists, writers, scholars and students.
The arts complex at the main campus of the University of PNG is named in his honour.
Many great Papua New Guineans came under his tutelage including Leo Hannett, Meg Taylor, Kathy Abel, Ekeroma Age, Leontine Ovia, Jerry Tamate, Rabbie Namaliu, Kumulau Tawali, Kakah Kais, Pia Leitao, Russell Soaba, John Waiko, Tony Siaguru, John Saunana, Peter Malala, John Kadiba, Elijah Titus, Janet Regione, Apisai Enos and Arthur Jawodimbari.
The 1960s and 1970s are remembered as a creative epoch in PNG’s history when some of the country’s best-ever poetry, prose, performances and publications were produced.
In 1967, Vincent Eri, then a student, brought Beier a story about Moveave in the Papua Gulf, and was encouraged to expand the story into a novel.
Thus Vincent Eri became the author of the first Papua novel The Crocodile.
Another literary achievement during those crucial years was the autobiography Kiki: Ten Thousand Years in a Lifetime by Albert Maori Kiki.
The first PNG literary magazine was launched in this period.
Elegantly produced and designed by Georgina Beier, Kovave was published 1969-1971.
The influence of the inimitable Beier and his equally-unflappable wife Georgina on the development of PNG literature during that era is still remembered by many people.
Beier produced 25 volumes of poetry, and the series was continued (after his return to Nigeria) by Prithvindra Chakravarthi, with a further 11 volumes, making 36 in all, and have become collectors’ items worthy of republication.
On the Beier’s return in 1974, Ulli became director of the institute of PNG Studies, and a new journal was established called Gigibori (1974-1978) with an emphasis on PNG culture.
The institute published 72 general publications on folklore, architecture, art, religion and music; 36 discussion papers on topical cultural, social and political issues; Wanpis, a novel by Russel Soaba; many works by John Kolia and the journal Gigibori.
The areas of theatre, radio production and performance promotion also developed under Beier.
He was to have travelled to PNG last August to make a presentation at a book conference at UPNG, however, was not strong enough to travel at age 88, and asked his good friend Peter Trist to travel to PNG from Australia and make the presentation on their behalf.