Business Restricted Activity List likely to return

Port Moresby Chamber of Commerce and Industry e-flash

A straight shooting  speech, by Commerce Minister, Richard Maru,announcing the protection of Papua New Guinean businesses  has received overwhelming  applause  by more than 400 participants at an  SME summit in Madang.

Minister Maru  didn’t mince his words when he  told  foreign advisers that they were wasting their time if they were going to push for unfettered access to  PNG’s economy

He said the SME sector would be staunchly defended  by the government through protection policies and the  creation  of jobs for  Papua New Guineans.

One of the first things that will happen before the end of the year is  the revival of a reserved list specifying  the kinds of businesses that foreigners will be barred from operating.

Maru is no  stranger to  hard hitting undiplomatic  statements  at public forums.

 Yesterday,he took that to a new level.  

 He told foreign advisers,some of whom were present, that they would be wasting their time if they were thinking of pushing for  free access into the lower levels of the PNG economy.

 “We are going to bring back the reserve list legislation,”  he said.  

 “This summit will decide what will be for Papua New Guineans, what will be 51-49 and what will be only for foreigners.

 “The NEC has already decided to bring back the reserved list. 

"So any of you advisers who are thinking there will be no reserve list, you’re wasting your time. 

" government has already decided.”

  Unlike in the past there is a general  acknowledgment, that the  current economic boom is temporary and unless steps are taken to use that new found wealth, the country’s future will be in jeopardy.

This summit will chart a new future.
In mind will be an  economy based on renewable resources.  
 An economy that is sustainable  and able to support  Papua New Guinea's  young population.

Volunteers sought to build college in Kokoda

Maitland Mercury

July 2, 2013 

 

Maitland, Australia,  residents are urged to consider a two-week placement in Kokoda to build a college in the jungle of Papua New Guinea to help break the country’s poverty cycle.

The idea to build the Kokoda College originated more than a year ago when the Kokoda Track Foundation realised the shortage of teachers and community health workers was preventing the development of the communities along the Kokoda Track.
“When we started researching we discovered that some 500,000 children are currently not going to school because of a shortage of teachers,” the foundation’s executive director Dr Genevieve Nelson said.

HELP NEEDED: Dr Genevieve Nelson.

“And in healthcare, things aren’t looking much better with a severe shortage of community health workers for Papua New Guinea’s population living in the rural areas.”
In October and November the foundation will build the college at a site in Kou Kou village, near Kokoda.
“We are engaging a large team of Australian volunteers to help us with the various stages of the construction process,” Dr Nelson said.
“We are looking for dedicate people with a passion for adventure and helping others. Our teams of volunteers will commit to a two-week placement and will travel to Kokoda in groups.”
For more information visit www.kokodacollege.com

O'Neill wants to tap into Townville's ports and mining

DAVID SPARKES  |  Townsville Bulletin
 

PAPUA New Guinea Prime Minister Peter O'Neill wants to tap into Townsville's expertise in ports and mining services.
Mr O'Neill spent the weekend in Townsville where he toured the port and met business leaders.
"We have a growing mining sector in Papua New Guinea and there are port development issues that (we discussed when) we visited today," Mr O'Neill said.

WINNING TEAM: Townsville Mayor Jenny Hill presents a Cowboys jersey to PNG Prime Minister Peter O'Neill | Photo: ZAK SIMMONDS

"The planning that is going on in the Townsville area for the future to accommodate a growing mining sector is something that we are very keen on (tapping into). And of course the construction industry here is fairly mature and well established and we could use those experiences in Papua New Guinea."
Mr O'Neill was visiting as a guest of the Townsville Chamber, which has several members already doing business in the country.
The Papua New Guinea economy is growing at an extraordinary rate, hovering around 8 per cent.
Business leaders and politicians in Townsville have made no secret of their desire to strengthen business connections with the nation.
Townsville Chamber president Dawson Wilkie said Townsville already had strong links, but with such phenomenal economic growth, the opportunity was there for further expansion.
He said even if the rest of Australia was not completely aware of opportunities with its northern neighbour, Townsville was constantly discussing the topic.
"Certainly in Townsville we do talk about it," Mr Wilkie said.
"That (expanded) relationship would be important to the chamber.
"We've got a lot of businesses doing business in Papua New Guinea and a lot of businesses that would like to do business in PNG, but need that assistance for that to happen."
Mr O'Neill said the relationship should be expanded and the benefits would flow both ways.
As the nation's economy expands, businesses in North Queensland could be well positioned to seize opportunities there.
Mr O'Neill said another key benefit for Papua New Guinea would be training its own workforce.
"We feel that we are starting to have issues with (having enough) skilled workers.
"We have got some young people that are here (in North Queensland) studying at the various TAFEs to fill those gaps, but we still need more development in that area."
While Australia focuses on China and Indonesia, Mr O'Neill said his country presented another great opportunity for businesses.
"I think in terms of security of investment, in terms of middle-sized companies being able to go and participate in a growing economy, (Papua New Guinea) is an opportunity Australians (wouldn't want to be) missing out on."

Hevilift PNG set to take delivery of first ATR42-500

  Hevilift (PNG) (IU, Mount Hagen) will shortly take delivery of its first ATR42-500, ex-OY-RUL (c/n 501). 

The former DAT - Danish Air Transport (DX, Kolding) machine will join the Papua New Guinean operator's fleet of two ATR42-300s and three DHC-6s. 

 

Hevilift (PNG) ATR42-300 / © Hevilift (PNG)

Established in 1994 and formerly operating as Regional Air (Papua New Guinea) (QT, Madang), Hevilift is involved in charter operations throughout the Asia-Pacific region specialising in the transportation of oil, gas and mining industry personnel and equipment.

ADB trims Pacific 2013 economic outlook as risks to growth emerge

MANILA, PHILIPPINES –The Asian Development Bank’s (ADB) latest Pacific Economic Monitor has trimmed the 2013 economic growth forecast for the Pacific region to 5.0% on the back of lower-than-expected government capital spending in Timor-Leste, slower gold production in Solomon Islands, and lower growth prospects in Kiribati and Nauru.
ADB’s previous regional growth forecast for 2013 was 5.2%, following an expansion of 7.6% in 2012.

Video: Pacific Economies Continue Strong

“The slight downgrade in the growth forecast reflects largely short-term challenges faced by a few Pacific economies,” said Xianbin Yao, Director General of ADB’s Pacific Department. “Despite the slight slowdown, a brighter outlook for the global economy is expected to spill over and likely raise the Pacific region’s growth to 5.5% in 2014.”
The first quarter of 2013 has seen the region’s exports to Australia, a key market, hit by lower international commodity prices. The value of exports fell by over 27% year-on-year, with gold and petroleum exports from Papua New Guinea (PNG) down by 32% over the same period. Pacific exports to New Zealand also fell by over 17% in the quarter.
In PNG―the largest developing economy in the Pacific―persistently lower prices for its commodity exports could make it difficult for the government to continue the stimulus measures it has adopted to counter the adverse impact of a slowdown in construction as the liquefied natural gas pipeline work is completed. This poses a downside risk to ADB’s unchanged 2013 growth forecast for the country.
Lower international oil prices and a decrease in government spending are also weighing on the near-term growth prospects of Timor-Leste, another major resource exporter in the region.
There are signs that Fiji’s economy may be picking up as government infrastructure development moves ahead, and consumption and investment show signs of improving. However, ADB is holding its growth forecast steady at 2.0%, pending new data.
Infrastructure damage from Cyclone Evan in December 2012 weighed on tourism early in 2013, with visitors to Fiji and Samoa declining. There have been recent signs of a recovery, however, and other tourism destinations in the Pacific are also seeing improvements, with a rise in Australian visitors to Vanuatu and robust tourism growth in the Cook Islands.
The latest Pacific Economic Monitor includes four articles exploring the Pacific’s changing external economic ties. One article discusses the emergence of the Association of Southeast Asian Nations, the People’s Republic of China, and India as increasingly important trading partners for South Pacific economies. A second article provides a new trade cost indicator for Pacific economies and compares it to other existing indicators. A contribution from the East-West Center of the University of Hawai’i considers the prospects of North Pacific economies upon conclusion of their compacts of free association with the US and highlights the need to reduce aid dependency in these countries. A contribution from the Crawford School of Public Policy examines the Caribbean’s experiences with regional cooperation and integration for possible lessons for the Pacific.

PNG PM wants old age, disability pensions

By Eoin Blackwell, AAP Papua New Guinea Correspondent

PAPUA New Guinea may have a disability and old age pension by 2016, as Prime Minister Peter O'Neill asks his party to consider a new policy platform.

During an address to People's National Congress (PNC) faithful in PNG's second largest city, Lae, Mr O'Neill said he wanted to promote small business entrepreneurship

He also flagged laws to mandate the amount of parliamentary sitting days and to have opponents list no-confidence motions three months before a vote.

 At the PNC conference on Friday, the prime minister said data collected from an electronic ID system, which he wants to see online by 2014, would be used to improve pay and living conditions in the country.

 The scheme will be used to study, then raise the pay and living conditions of provincial government employees, such as police and magistrates.

 Stage two is to have a disability pension by 2015.

"We should also introduce an old pension system for all citizens who are over the age of 65 years in 2016," Mr O'Neill sai

 PNG's next national election is due in 2017.

 Mr O'Neill also wants to use housing loans to control PNG's growing population, which is now about seven million.

 Interest-free loans will be offered to couples aged 18 to 25, if they put off having kids.

 PNG's Institute of National Affairs director, Paul Barker, said the pension plan was "too ambitious", and implementation would run up against practical logistical and manpower problems.

 "Implementation of the current budget is problematic," he said.

 "The capacity to set up, implement and manage something like that, there is a lot of work that is needed before it can be implemented."

 Mr O'Neill also flagged a constitutional amendment to have votes of no confidence made public three months before they're brought to the floor of parliament

PNG PM wants Townsville-Port Moresby flights to take off

ABC

The Prime Minister of Papua New Guinea says he plans to re-establish direct flights between Townsville and Port Moresby by the end of the year.

It was Peter O'Neill's first visit to Townsville.
During the weekend, he met the chamber of commerce, the Mayor and the State Government.
He says he wants to see more north Queensland businesses expanding into his region.
However, the issue of access is top of his agenda.
Mr O'Neill says he is going to ask his state airline to start a direct route between Port Moresby and Townsville.
"Overnight in the air and back so we can make it easier for the business community to travel up to Papua New Guinea and conduct their businesses," he said.
Townsville is geographically closer to Port Moresby than it is to Brisbane but Mr O'Neill says business opportunities are being hindered because of a lack of access.
"We're looking at direct flights between Port Moresby and Townsville and we are going to encourage that with our own airline and hopefully the other regional airlines in Australia can take advantage of our open sky policy that we have," he said.
Mr O'Neill says the Government may have to initially subsidise the route but he believes it is economically viable.
He also asked north Queensland business leaders to consider expanding their operations into the Pacific, to help develop PNG.

PNG Hospital

Meanwhile, the Queensland Government has committed to providing the expertise to build a hospital in PNG.
The Government made the promise to help build the hospital at Daru during the PNG Prime Minister's visit to Townsville.
Gavin King from the Government's PNG taskforce says the PNG Government will pay Queenslanders to design and build the facility.
"It's basically a greenfield site," he said.
"They want everything from design, engineering, of course construction, right through to good administration and management of that hospital
"So for the private sector in Queensland and north Queensland, there are huge opportunities going forward."
He says it will be a great opportunity for Queensland businesses to expand their operations.
"The PNG Government has a lot of resources and a lot of funding available but they don't quite have the capacity and the expertise to deliver on those projects and that's the whole reason that they've come to the Queensland Government," he said.