No store goods for Daru until next week

By MALUM NALU
Daru residents, who have not had any store goods for the last two weeks, may have to wait until next week when new supplies arrive, The National reports.
Steamships Shipping general manager Andy Cummings told The National yesterday that the next planned vessel to Daru, Steel Challenger, was scheduled to load in Port Moresby next Monday and expected to arrive in Daru next Wednesday,
He said the last liner service to Daru was on May 15.
“We also use vessel Agutoi Chief on service to Daru, but unfortunately, this vessel has been under repair for last two weeks,” Cummings said.
“Yesterday (Tuesday), we received a letter from the office of Western Province administrator, explaining that due to severe flooding in South Fly area, food supply to Daru had been disrupted and local supply was running very low due to the increased demand the flooding has caused.
“We were asked whether we could direct vessels for food shipment to Daru as soon as possible.
“As of this morning, we have completed repairs on Agutoi Chief and will endeavor to have her loaded and depart for Daru today.
“Steel Challenger will also load for Daru on about June 18 as planned.
“As a contingency, we are also checking with charters which vessels could be released from contracted services to assist with supply to Daru.”
Daru, meantime, will have a brand-new K10 million wharf trestle in August this year, following the launching of the project on June 1 by PNG Sustainable Development Program (PNGSDP), effectively giving the green lights to contractor Curtain Brothers to start work.

The existing Daru wharf trestle. Once rehabilitated, ships should have no problem loading and unloading at Daru.-Nationalpic by MALUM NALU

The existing Daru wharf was condemned two years ago as the trestle had deteriorated to an extent that it was unsafe to use.
This affected movement of cargoes in and out of Daru significantly, with the flow-on effect on businesses, costs and reliability of coastal shipping.

Fake goods trade booms

By MALUM NALU
Illicit trade worth millions of kina continues to flourish in PNG because of the lackadaisical attitude of law enforcement agencies, government, consumers and the general public, according to British American Tobacco, The National reports.
BAT, which is involved in tobacco business, said this was a problem that affected the whole country with the smuggling of illicit goods through the border post at Wutung, West Sepik.

Vanimo roadside stall selling illicit items smuggled over from Indonesia.

“There continues to be a lack of awareness about the impact of illicit trade on a country’s socio-economic health,” it said in a document highlighting the seriousness of the problem.
“The current situation is further inflaming the problem by providing a stable environment for illicit trade to thrive.”
BAT said in the event that a smuggler was caught in the act, the penalty was a K10, 000 fine or minimal years imprisonment.
“This is a slap on the wrist compared to millions being made from the sale of illicit products,” it said.
“Despite the risks of imprisonment, more people continue to delve into smuggling as a means to earn a living.
“The tendency is to pick products that are usually highly taxed.
“Such consumer goods tend to be more expensive as the cost is usually passed to the consumer.
“ So when a smuggled product that is sold without the tax being factored in, consumers are likely to be lured by the advantage of ‘saving’ money for a product that is similar or a copy of the same, sacrificing quality in the process.
“Sometimes, illegal goods brought are those that are not readily available locally, but a demand for them exists.
“This includes brand name consumer goods like sporting shoes or clothing.
“The smuggled human cargo is usually desperate people wanting to start a new life in a new land.
“Smuggling operations are usually run by criminal organisations with intricate networks that allow them to ply their trade without regard for the laws of the land.
“There is also the small time local operator wanting to make a quick buck and get out of paying revenue to the government.
“Tobacco is usually a lucrative venture targetted by smugglers.
“Because it is lightweight and highly mobile, it fetches a high rate on investment.”
BAT said possible deterrents included:

• Customs and enforcement agencies needed to get government backing;

• Smugglers to pay full tax for the product;

• Increased prison sentences;

• Immediate deportation of foreigners;

• Building national loyalty to PNG-made products; and

• Concentrated stakeholder effort. Affected stakeholders in business such as music producers, fast-moving consumer goods manufacturers (food items, drinks and music) should make a combined effort in education and a partnership approach to drive the message home.

Daru stores out of food

By MALUM NALU
People of Daru, Western province, continued to be without store goods yesterday (Monday) as the monthly Steamships Shipping vessel failed to arrive from Port Moresby with fresh supplies, The National reports.
All major shops in Daru have run out of rice, sugar and other basic necessities because the regular cargo ship has not arrived from Port Moresby.
The town has been experiencing food shortage since last week when the cargo boat failed to arrive as scheduled.
Steamships Shipping management was not available for comment yesterday, however, a shipping source in Daru told The National yesterday that a Steamships barge came in once a month.
“Steamships are saying that they will send a relief vessel on Wednesday (today) so we should have supplies by the weekend,” the source said.
“Barges, such as the Agutoi Chief, come in once a month and unload about 30 containers.
“The containers have to be unstuffed.
“Boats spend at least two days here and that costs them a lot.
“There’s also the problem of the wharf trestle.
“Once the wharf is upgraded, they’ll start sending bigger vessels, like the Kikori Chief.”
The source said such was the seriousness of the problem that people were travelling as far as Saibai Island on the Australian side of the border to buy food supplies.
Daru will have a brand-new K10 million wharf trestle in August this year, following the launching of the project on June 1 by PNG Sustainable Development Program (PNGSDP), effectively giving the green lights to contractor Curtain Brothers to start work.

The existing Daru wharf trestle. Once rehabilitated, ships should have no problem loading and unloading at Daru.-Nationalpic by MALUM NALU

“The existing Daru wharf was condemned two years ago as the trestle had deteriorated to an extent that it was unsafe to use,” said PNGSDP chief executive officer David Sode.
“This affected movement of cargoes in and out of Daru significantly, with the flow-on effect on businesses, costs and reliability of coastal shipping.”

Airlines PNG-Air Niugini row over Daru airfares

By MALUM NALU
Airlines PNG yesterday accused Air Niugini of “making headlines using misleading information” regarding reintroduction of flights between Daru and Port Moresby, The National reports.
APNG sales and distribution manager Paul Abbot particularly referred to Air Niugini comparing its K352.20 one-way fare with APNG’s K999 between Daru and Port Moresby.
Air Niugini, however, countered that it was “offering the people of Western province a choice with competitive airfares”.
“They (Air Niugini) have chosen to quote the highest APNG fare available which is a fully flexible fare and compared it to the PX (Air Niugini) promotional special fare with restrictive conditions,” he said.



Passengers outside Daru Airport terminal on June 1. They will be the ones who benefit from cheaper airfares between Daru and Port Moresby.-Nationalpic by MALUM NALU

 “This does not present your readers with an accurate picture of the situation.
“It will be interesting to see the availability of the fare they are quoting at K352.20.
“If based on the PX media people believe that they can all buy tickets between Port Moresby and Daru for K352.20 then I am afraid they will be badly disappointed.
“APNG have in the recent past offered promotional level fares and will continue to do so and in fact have promotional level fares in place at present starting from K339.”
Air Niugini acting general manager - commercial, Dominic Kaumu, countered: “Air Niugini has a range of fares between Port Moresby and Daru.
“Apart from our normal one way fare of K618.40, we offer discounted airfares which are also available throughout our network.
“Our lowest airfare of K352.20 represents a 60% discount off the base normal fare.
“We are offering the people of Western province a choice with competitive fares.”
Abbot said the APNG fare structure was also driven by the services operated beyond Daru and the smaller regional ports that were supported.
“To some degree there is some subsidisation which supports the operation of these other services and guarantees that other ports with the region and links between Daru and other centres can be maintained,” he said,
“If APNG simply focused on services between Port Moresby and Daru then the operating economics would be vastly different and there would be an immediate impact on reducing fare levels.
“The people of the region, however, want more services rather than less and consequently this affects the pricing structure.”
Abbot said the APNG schedule was a daily schedule to Daru, while the Air Niugini schedule initially was only twice a week.
“APNG have been committed to the region for quite some time and believe the APNG schedule reflects this,” he said.
“During the airstrip upgrade in late 201, APNG adjusted the schedule and used Twin Otter flights to ensure that regular services were maintained.
“The operating economics for the Twin Otter and the lower payload and passenger loads which they are capable of carrying meant that this service operated at a loss, however, APNG believed that it was in the interests of the region that it continued to run scheduled operations.”

PNG loses K7.2 million through illegal tobacco trade

By MALUM NALU
Papua New Guinea loses at least K7.2 million a year because of illicit tobacco products being smuggled in through the border post at Wutung in West Sepik province, according to British American Tobacco, The National reports.
Millions more, however, is lost to PNG through smuggling in of other products from Indonesia, despite the Border Development Authority (BDA) being set up at a cost of K75 million in 2009 with the purpose of dealing with development and security issues in border provinces of PNG.
BAT, in a document highlighting the seriousness of the problem given to The National, said the ease with which contraband could be smuggled in from Indonesia was indicative of a “bigger, more aggressive cancer that eats away at government revenue and the local economy”.

A range of cigarette brands smuggled into PNG from Indonesia.-Picture courtesy of BAT

“Consumers make decisions in favour of price versus quality,” according to the document.
“For instance, tobacco, a major money spinner, with flourishing markets in the hotspot areas of the country.
“There is a clear lack of loyalty to PNG-made products by our own people.
“Their continued decision to purchase illicit tobacco means a loss of K7.2 million in annual government revenue.
“Illicit tobacco places the loss of revenue at three million sticks a month, and the current excise rate of 20t per stick to the government translates to K600, 000 per month in lost taxes.
“The concern is that smuggling is also indicative of a bigger, more aggressive cancer that eats away at government revenue and the local economy: transnational crime.
“Transnational crime includes narcotics, arms smuggling, money laundering, human trafficking, counterfeit products and terrorism.”
BAT said a very clear indicator was the easy availability of counterfeit or contraband products such as pirated DVDs and music CDs, counterfeit cigarettes and other consumer goods.
“The problem is further compounded by the general acceptance of these products by local consumers, allowing for the establishment of a strong customer base,” it said.
“Enforcement continues to be a problem as the government agencies tasked to do this are under-resourced.
“Low wages and poor working conditions leave law enforcement open to corruption, allowing smugglers to buy their way out of a conviction and/or to continue to operate their businesses.
“Enforcement agencies continue to be plagued by the lack of resources and under-funding by the government.
“In an economy that is currently focussed in mining, petroleum and the resource sector, smuggling of illicit consumer products and human aliens is an area of least priority for government.
“Furthermore, entrenched corruption promoted by officers within government agencies, prominent citizens and even government officials has allowed the problem to grow unhindered.
“Illicit trade continues to flourish in PNG because of the lackadaisical attitude of law enforcement, government, consumers and the general public.
“There continues to be a lack of awareness about the impact of illicit trade on a country’s socio-economic health.
“The current situation if further inflaming the problem by providing a stable environment for illicit trade to thrive.”

K16 million for Western province flood victims

By ISAAC NICHOLAS
PRIME Minister Peter O’Neill moved quickly on Sunday to allocate K16 million and pledged K260,000 worth of relief supplies to be flown in today for victims of floods in Western province, The National reports.
About 48,000 people occupying the delta region of the major Fly River were said to be without fresh water and food when the Fly burst its banks following persistent heavy rains over the past few months.
The number may reach as high as 60,000 as late reports said villages in the Middle Fly had also been affected.
The 25,000 residents on Daru Island are also affected because they depend on food from people on the mainland and basic food supplies such as rice, tinned fish and biscuits are running out from stores on the island.
O’Neill flew into Daru on Sunday to get first-hand briefing on the situation on the ground and the news is not too good as reports said people in the Middle Fly could also be affected.
Australian Federal Minister for Torres Strait and Aboriginal Affairs Warren Hinch also flew into Daru from Cairns on Sunday where he met with O’Neill to address the disaster and border treaty areas affected by flooding.
O’Neill was in Daru with K19 million, where K16 million will go for disaster relief and K3 million for the Daru Secondary High School upgrading.

Daru Secondary School...rundown and in need of improvement.-Picture by MALUM NALU

The prime minister said another K260,000 worth of food and relief supplies made available by the National Gaming Control Board were being loaded on two barges that would leave Port Moresby today for Daru.
Provincial administrator William Goinau said the South Fly district had been declared a disaster area and the provincial administration last week allocated K1.5 million for immediate relief assistance.
He said the North and Middle Fly areas were also affected.
O’Neill also thanked the Australian government and its people for their help in assisting the people of Daru.
The Australian federal minister and member of parliament flew to Daru from Cairns to get first-hand information on the flooding and damages that had been caused to the people in Western.

Breakdown of how Lae funds were spent from 2008-2012

Lae district administrator Robin Calistus has released the Lae Open Projects and Programme Funding under the Joint District Planning (JDP) and Budget Priority Committee (BPC) under District Support Grants (DSG), District Support Improvement Program (DSIP). 

More than K23 million ( K23, 003,322) was spent priority sectors of health, education, district transport infrastructure, law and order and community development projects such as water supply.

It is important for all residents of Lae District to take time in reading this document to form their own view of what Honorable Bart Philemon has done to the funds for Lae District from 2008 to 2012.

Bart Philemon

There are also many misconceptions about the funding and responsibility of the road rehabilitation of the Lae roads. 

Funding is the responsibility of the national government under the Minister for Transport and Department of Transport.
Please click on each page below to enlarge: