Polye is NA leader in govt

 THE National Alliance party in the new government has agreed to have Kandep MP Don Polye as their new leader, The National reports.
The NA southern region, islands and highlands faction had agreed to have Polye lead the new-look NA party in the government of Peter O'Neill and Belden Namah.
Polye made the announcement after the swearing-in of the deputy prime minister and caretaker ministers at Government House yesterday.
"I am the National Alliance leader now," Polye declared.
The NA team in government included Polye, Speaker Jeffrey Nape, Ano Pala, Mark Mai­pa­kai, David Arore, Andrew Mald, Charles Abel, Luke Critin, Jack Cameron, David Arore, Alphonse Moroi, Peter Humphrey and Leo Dion.
Polye said NA was a good party but the conduct, actions and inactions of some members had brought the party to disrepute and facilitated corruption in the former government.
"I think I have a very good team with me now."
Polye said this was the new National Alliance under his leadership and those who did not toe the line would be removed.
"We will get rid of people who perpetuate corruption."
"I am proud to lead the NA team here (in government)," Polye said.

Abal files bid to restrain O’Neill

By JULIA DAIA BORE

MEMBER for Wabag Sam Abal has set the court process into motion, attempting to restrain Peter O'Neill from executing his powers as the country's new prime minister, The National reports.
Abal's lawyers on Tuesday, soon after O'Neill's 70-24 victory,  filed in the National Court in Waigani documents seeking a judicial re­view to invalidate Tuesday's over­whel­ming vote in parliament that ousted Abal as acting prime minister. 
However, with the immediate swearing-in into office of O'Neill as the new prime minister of PNG by Governor-General Sir Michael Ogio, Abal's lawyers later amended the court documents. 
The new court documents filed by way of an originating summons is seeking restraining orders to stop the prime minister from executing his duties and powers of office. 
The matter was yesterday set for hearing tomorrow when parties are expected to make their submissions.
Abal had named O'Neill and parliament Speaker Jeffrey Nape as defendants.
Madang Governor Sir Arnold Amet is also expected to seek a special Supreme Court reference.
The reference was filed after midday yesterday and would be heard today.
Sir Arnold is seeking to have the Supreme Court interpret and determine the validity of Tuesday's  removal of the Somare-Abal government

O’Neill names caretaker team

By ISAAC NICHOLAS

PRIME Minister Peter O'Neill yesterday announced a 14-member caretaker cabinet while calling on the outgoing government to respect parliamentary democracy in his election to the top post, The National reports.
But ousted acting prime minister Sam Abal hit back, saying he had been unseated by default and stealth.
The caretaker ministers included Deputy Prime Minister Belden Namah, Don Polye, William Duma, Francis Awesa, Sam Basil, Sir Puka Temu, Sir Mekere Morauta, Bart Philemon, Dr Allan Marat, John Boito and Theo Zurenuoc.
The old faces in the new line-up are Job Pomat, Moses Maladina and Ano Pala while O'Neill had advised the governor-general to decommission the rest of the Somare cabinet.
He said his full cabinet would be announced before parliament resumed next Tuesday.
O'Neill said that the interim cabinet was made up of experienced, talented and vibrant young leaders. 
"The immediate task of the new go­vernment is to prepare the country for a decent and fair general election next year," he said.
O'Neill was due to call his first cabinet meeting yesterday afternoon to set the course for the new government in the next 10 months.
He also received a call in the afternoon from his Australian counterpart Julia Gillard to congratulate him on his election as prime minister.
"There are many challenges facing the country in health, education, transport infrastructure, land and justice and massive corruption in government and we are serious in addressing them.
"We will not be vindictive but to be accountable to our people," O'Neill said.
 "We will be working for the majority of the people, not for a few individuals but for accountability and transparency.
"There are some decent policies of the former government that we will maintain like the Vision 2050, district services improvement programme and the district treasury roll-out programme. Programmes that we have lost we will review and move them forward."
O'Neill also called on the former government to respect parliamentary democracy. 
"It is an indication of our people's desire to have change.
"The number 70-24 is not a one-vote majority. I appeal to them to be responsible and respect the wishes of our people through the parliamentary process."
He said any legal challenges would be defended fully.
Vanimo-Green MP and former opposition leader Namah thanked O'Neill for appointing him as deputy prime minister.
"There are many challenges ahead of us but we have a good team of experienced and talented leaders to address them.
"The people of Papua New Guinea, you have been calling for change and this government is for change," Namah said.

New Prime Minister for Papua New Guinea: Breaking news!

Peter O'Neill is the new Prime Minister of Papua New Guinea, being elected by an overwhelming majority of 74-24, just minutes ago.

He is now being transported to Government House to be sworn in by Governor General, Sir Michael Ogio.

O'Neill was nominated by Opposition Leader, Belden Namah, when Parliament resumed at 2pm today, and seconded by sacked Petroleum Minister, William Duma.

Bulolo MP Sam Basil closed nominations.

Forests Minister Timothy Bonga walked out in protest.

Several Government Ministers and MPs moved over to Opposition ranks today.

Ministers included O'Neill, Internal Security Minister Mark Maipakai and Minister Assisting Prime Minister Charles Abel.

APEC region exhibits strong recovery in investment levels

Issued by APEC Policy Support Unit

 

Singapore, August 2, 2011 – – Foreign direct investment (FDI) levels in APEC rebounded significantly in 2010 with  the region's  share of global FDI inflows more than doubling in the last five years, according to an analysis by the APEC Policy Support Unit (PSU).

 APEC Policy Support Unit Director, Dr. Denis Hew, provided an Asia-Pacific perspective on current foreign direct investment (FDI) trends in the region.

His analysis is based on data found in the United Nations Conference on Trade and Investment (UNCTAD) World Investment Report (WIR) 2011, which was launched last week.

 Weighing in on the economic outlook, Hew explained that UNCTAD forecasts that world output growth will fall to 3.2 percent in 2011 from 3.9 percent in 2010 and that Japan's output growth will drop to 0.7 percent in 2011 from 3.9 percent in 2010.

He went on to say that the World Bank estimates that the damage caused by the earthquake and tsunami in Japan could be as much as US$ 235 billion."

 Looking at 2010, FDI levels in APEC rebounded significantly from 2009. Inflows to the APEC region grew 32 percent, reaching US$ 627 billion, while outflows from the region grew 14 percent, reaching US$ 742 billion.  

 "Although the APEC region is still falling a bit short of 2008 pre-crisis levels, it is out-performing other regions," Hew said.

APEC's share of global FDI inflows rose from 32 percent in 2005 to 50 percent in 2010, and its share of global FDI outflows increased from 17 percent to 56 percent over this same period.

 FDI inflows to the APEC region grew by 15 percent per year on average between 2005 and 2010, while inflows to the rest of the world declined by 2 percent per year on average over this same period. 

Similarly, FDI outflows from the APEC region grew by 38 percent per year on average between 2005 and 2010, while outflows from the rest of the world declined by 5 percent per year on average over this same period.

 The increase in FDI is more pronounced in developing APEC economies.

[1] FDI inflows to the developing APEC economies have recently been even larger than the developed APEC economies and were valued at USD 344 billion in 2010, growing by 11 percent per year on average between 2005 and 2010.

FDI outflows from the developing APEC economies have grown by 26 percent per year on average between 2005 and 2010 to reach US$ 292 billion.

 Hew said that increased FDI activity has been advanced by the efforts made by several APEC economies towards increased investment liberalization and facilitation.

These measures include the streamlining of admission procedures and the opening of new, or expansion of existing, special economic zones.

 "However, we cannot ignore that one of reasons for APEC's growing share of global FDI is the EU's declining share," said Hew

The EU's share of global FDI flows has decreased significantly – from 50 percent in 2005 to 24 percent in 2010 for inflows and from 69 percent in 2005 to 31 percent in 2010 for outflows.

 Hew observed that mergers and acquisitions (M&A) is the preferred mode over greenfield projects by investors in the APEC region, and is likely to continue.

 "The value of M&A sales in the APEC region rose sharply in 2010 to US$ 176 billion, with strong growth experienced by both developed (88 percent increase) and developing (40 percent increase) APEC economies compared with an 11 percent increase in the value of M&A sales in the rest of the world," Hew added.

 The value of greenfield FDI to the APEC region continued to decline in 2010, falling another 9 percent to US$ 395 billion, compared with a 21 percent drop in the value of greenfield FDI to the rest of the world from 2009 to 2010.

Only seven APEC economies experienced increases in the value of greenfield FDI into their economies from 2009 to 2010.[2] 

 A more detailed PSU briefing can be found here.

Official probe into PM’s health status

  GOVERNOR-General Sir Michael Ogio is expected to instruct the PNG Medical Board today to appoint two physicians to inquire into the health status of Prime Minister Sir Michael Somare and report to cabinet within 28 days, The National reports.
This followed yesterday's handing-over of a report by the prime minister's physician, Dr Isi Kevau, to Acting Prime Minister Sam Abal.
Last night, Abal said it was up to the medical board to appoint two physicians, either within PNG or abroad, to inquire into Sir Michael's health and report independently to satisfy the constitutional requirements.
The report by Kevau stated in part that Sir Michael was being well looked after by a team of four specialists at Singapore's Raffles Hospital and that his recovery was "better than expected".
The two physicians' report would allow parliament to decide whether or not the prime minister is physically and mentally fit to remain the chief executive of Papua New Guinea.
This is the first time the constitutional provision on the disqualification of a prime minister had been evoked and, at its conclusion, the nation might see the position invalidated and a vacancy in the job occurring.
Were that to happen, parliament, if it is not sitting, would be recalled and the business of the election of the prime minister will be its main business.
Until that happens, all the powers and responsibilities of the prime minister are vested in the acting prime mi­nister.
While the prime minister's position is not on parliament's agenda, when it meets today, it is expected to create enormous debate during the sitting with possible moves to force an early election of the prime minister

Treasurer prepares K606 million additional budget

By ISAAC NICHOLAS

TREASURY and Finance Minister Patrick Pruaitch is expected to hand down a supplementary budget of K606.8 million against a backdrop of stronger  economic growth and high revenue for this year, The National reports.
He said PNG's economy was expected to grow by 9.3% this year, higher than the forecast 8%.
He said growth in the non-mining sector was expected to hit 10.2% –  well above world averages.
Pruaitch revealed the projected additional surplus budget when releasing the Mid-Year Economic and Fiscal Outlook report for 2011 yesterday.
He said the total revenue and grants for 2011 were estimated at K9,935 million while total expenditure and net lending should be about K9,328.2 million as appropriated in the 2011 Budget. 
He said this gave a projected surplus of K606.8 million.
"The projected K606.8 million surplus is entirely a result of increased revenue projections, driven largely by higher personal income tax collections than expected, higher commodity prices and higher mineral revenue."
Pruaitch said no over-spending or under-spending were projected saying a supplementary budget was expected later in 2011.
He said the projected additional revenue could be allocated to high- priority expenditures in the key areas of health, education, infrastructure and law and justice.
He said there were also obligations to consider such as the PNG LNG-related commitments and the 2012 national election preparations.
He said this was driven by higher levels of economic activity in the non-mining sector and the construction of the PNG LNG pro­ject.
"If this positive growth rate eventuates, the economic output in PNG will have ex­panded for more than a decade, representing the longest period of uninterrupted eco­nomic growth in PNG's history."
He said the strength of the economy was reflective of stronger investor and consumer confidence following sustained macro-economic and fiscal stability as well as critical microeconomic reforms.
Pruaitch  said although the global eco­nomic recovery was expected to continue in the remainder of 2011, significant down­ward risks remained.
He said the risks included the European sovereign debt concerns, fiscal and financial imbalances in other advanced economies, and the effect of the Japanese earthquake and tsunami on industrial production.
He said that emerging and developing economies were growing strongly although economic overheating was becoming a concern.
He said prices of PNG's major export commodities continued to climb, following strong demand from emerging and deve­loping economies and supply shocks.
"The prices of PNG's major mineral exports of gold, copper and oil have risen well above the 2011 Budget forecasts, and are expected to remain at elevated levels through the remainder of 2011.
"As a result, the price assumptions have been revised upwards for the MYEFO report, recording more than 20% for oil and 25% for gold and copper, compared to the price assumptions used in the 2011 budget.
"This has resulted in higher projected government revenue in 2011."
Pruaitch said rapid economic growth was now a major concern in PNG as it had a direct impact on inflation. 
He said annual inflation was now forecast to be 9% in 2011, an upward revision from 2011 Budget forecast of 8.2%.
"This is largely due to the high level of economic growth, a continuing shortage of skilled labor and land which underpinned wages and rental prices, and higher food and fuel prices from high global demand."
He said the appreciation of the kina since the start of the year had partially off-set the acceleration in these inflationary pressures. 
"However, there is also a concern that official inflation figures are under­esti­mating the true extent of inflationary pressures in the economy."