Together we stand: APEC business leaders urge greater government collaboration to address economic woes

Issued by the APEC Business Advisory Council (ABAC)

 

Lima, Peru, August 23, 2011 – The APEC Business Advisory Council today called on APEC governments to collaborate more with the private sector to address the causes of the recent uncertainty in global financial markets. The current situation has created disincentives for private sector investment and risks rekindling protectionist sentiments.

"We are asking governments to work together and with their own business communities to develop plans to stimulate inclusive economic growth and create jobs in the short-term and work towards balanced growth in the long term with the ultimate objective of a Free Trade Area of the Asia Pacific" said ABAC Chair Deb Henretta.

Business leaders of the APEC Business Advisory Council (ABAC) met in Lima this week to finalize their recommendations to be presented to APEC Economic Leaders and discussed in depth with them in Honolulu in November. At the meeting, ABAC Members expressed their concern about a potential rise in protectionist sentiments and asked Leaders to reconfirm their commitment to reject protectionist policies.

ABAC's 2011 Report to Leaders focuses on regional economic integration, sustainable growth and small, medium and micro enterprises (SMME) as critical areas where the business community can help fulfill a vision of 21 economies working towards 21st Century prosperity.

For regional economic integration, ABAC has developed an integrated supply chain and value chain framework to help build understanding of the complex nature of global supply chains and to identify chokepoints obstructing the efficient flow of goods and services throughout the region. The disruptive impact of Japan´s devastating earthquake and tsunami in March highlights the highly integrated nature of the supply chain and the importance of business continuity preparedness.

ABAC has also identified next generation trade issues in areas such as competition policy, investment, services, government procurement and skilled labour shortages, and recommended key policy approaches for APEC governments to work towards regulatory coherence throughout the region.

Under the theme of sustainable growth, ABAC calls for collaborative action between the private sector and the public sector to address food security, as well as greater trade and cooperation for environmental goods and services. In addition, the Council finalized the Framework for Energy Security, which will serve as a source of recommendations and guidance to the region's policy-makers.

Fostering a strong business environment for SMMEs is vital for growth and job creation in all economies. ABAC is leading capacity building efforts through a range of activities aimed at enhancing opportunities and raising awareness of issues affecting smaller businesses, including regional SMME summits, and efforts to promote greater economic inclusion of young entrepreneurs and women.

Through these activities and many more, ABAC is focused on assisting governments achieve growth, greater economic integration and stability across the region.

Bid dream over

By FRANK SENGE KOLMA   

THE O'Neill government is not interested in pursuing the K20 million NRL Bid.
That comes from the headman himself, Prime Minister Peter O'Neill.
He told the media on Wednesday: "Rugby league is important for us Papua New Guineans. However, the proposal (NRL Bid) is not feasible because the NRL CEO David Gallop has said he will accept no more teams. We are not going to chase a dream that might or might not become reality."
O'Neill said when the time was right and a feasible proposal was put before it, the government would consider a bid but that time was not now.
His attention is diverted more towards building up sports and sporting facilities in the country.
For that he said the government would be using funds available from the National Gaming Control Board.
Money from the gaming board would be used to develop sports and infrastructure for the 2015 Pacific Games in PNG (Port Moresby) and for the PNG Games in East New Britain (Kokopo) next year.
O'Neill also expressed concern about the use of the K20 million that had been allocated the NRL Bid team.
He said there had been reports that the money had been misused, and that an investigation would be conducted to establish a full accounting for the money.
The Bid under the chairmanship of former sports minister Philemon Embel had set up an office in Port Moresby employing Australian staff as well as experienced local rugby league officers on a casual basis since its inception in 2009.
During that time the Bid board underwent several controversial changes of personnel with the most notable being Australian league legend Mal Meninga's resignation as a member of the board.
Gold Coast Titans board member Paul Broughton and wife Beverly held a position on the board for a period but stepped aside, citing a conflict of interest with their association with the Titan franchise.
The PNG Bid was always an outside chance at best to get an NRL licence and the timeframe initially suggested was fiver years but the reality was it could take the country anywhere from a decade to be fully prepared to launch a team into the world's best professional rugby league competition.
Classified as a special government project by the former National Alliance-led government the Bid's dossier  as stated on the official website was to  "secure a licence to enter a team into the National Rugby League competition and promote rugby league to deliver positive social and economic benefits for the people of PNG".
However with entry an unlikely possiblilty in the foreseeable future calls have been made to re-focus on other options like entering a team into the Queensland Cup.

Basil wants natural resources to be processed downstream

MINISTER for National Planning Sam Basil says all natural resources in the country must be processed downstream and the final product exported, The National reports.
Speaking at the opening of the National Development Forum hosted by the Consultative Implementation and Monitoring Council at the Parliament House State Function Room, Basil said renewable and non-renewable resources must go under downstream processing onshore so that the country benefited from it.
"When we have downstream processing here, we will add value to our export commodities and maximise economic returns and benefits back to our country," he said.
"And most importantly, it will create employment, transfer skills and technology to Papua New Guineans and spin-off benefits apart from main revenue gain from the resources."
Basil said the traditional role of the government was to create an enabling environment for indigenous people to empower themselves and own and control the bulk of economic activities in their country.
He said for too long foreign-owned corporations had been ripping off the country's natural resources, leaving nothing for Papua New Guineans.
"Now there is a policy change under the O'Neill-Namah government whereby the indigenous people will have the upper hand in any resource development so that the bulk of the rural majority can see some changes in their living standards," he said.
Referring to the exports of round logs, he said they had the potential to collect billions of kina if they could be processed here.
 "We need a policy shift to have a downstream processing in the country so that all our natural resources can be processed here so that we maximise the benefits," Basil said.

Pagelio: Free education a relief

FREE education will be a big help to parents, acting education secretary Dr Joseph Pagelio says, The National reports.
He said despite the challenges the department could face, the policy would enable more students to gain access to education.
Pagelio said more than 30,000 additional teachers would be needed for elementary and primary schools.
He said the department had yet to work out the number of teachers needed for secondary schools.
Pagelio said another challenge was to open more Grade 9 classrooms to cater for the number of Grade 8 students who would be coming through.
Pagelio said with the introduction of free education, the department would be considering shift-hours for teachers and classes.
He said the first classes would be in the mornings, while the rest would attend classes at night.
He said it was cost-effective and possible.
Pagelio told the national development forum yesterday in Port Moresby that the number of schools soared from 3,000 in 1991 to 10,000 last year.
"The number of school students has increased from 500,000 in 1992 to 1.5 million this year," he said.
He said the number of teachers had grown from 18,000 in 1992 to 40,000 this year, a growth rate of 4.5%.
Pagelio said the number of elementary schools and teachers increased respectively from 5,000 to 14,000 between 1992 to this year.
He said the three national education plans had enabled the department to make significant progress in the delivery of education in Papua New Guinea.
These are the national education plan 1995 to 2004, national education plan 2005-14 and universal basic education plan 2010-19.

Somare tribunal adjourned

By JULIA DAIA BORE

THE Leadership Tribunal on Arthur Somare has been adjourned indefinitely pending the outcome of a judicial review hearing to begin on Monday, The National reports.
Somare had asked the tribunal to review its earlier decision in which it rejected his application to have his case dismissed. He had based his application on the fact that the reference from the public prosecutor's office to the Leadership Tribunal was to have been signed by the acting public prosecutor Camillus Sambua and not by any other person. It was instead signed by state prosecutor Kathwa Umpake.
The tribunal ruled last month that Umpake had jurisdiction to sign the reference which contained 11 allegations against Somare and which the tribunal had accepted on July 4.
Somare who was not satisfied asked the tribunal to review that decision.
Justice Les Gavara-Nanu granted this and said the judicial review would be heard in the National Court.

State gives Falcon jet to Air Niugini

By FRANK SENGE KOLMA

THE government's K120 million Falcon jet was on Wednesday given away to Air Niugini to use, or sell, The National reports.
Prime Minister Peter O'Neill announced the cabinet decision on Wednesday in the company of Public Enterprises Minister Sir Mekere Morauta and Air Niugini chief executive officer Wasantha Kumarasiri.
O'Neill has been quite concerned, according to his minders, that the aircraft's continued use by government ministers was putting the lie to his earlier announcement to sell the executive aircraft. So he made a joint submission  with Sir Mekere to cabinet to transfer its ownership to Air Niugini.
Cabinet approved the move yesterday.
"This is not a cosmetic change," O'Neill said.
"We are transferring ownership to Air Niugini and Air Niugini can dispose of it on the market or do charter business with it."
A method of payment to the government by Air Niugini was yet to be determined, he said.
O'Neill said Air Niugini was already owed some K40 million by the government for its management, crew, fuel and food.
He said should the aircraft be sold, Air Niugini would take what it was owed and the balance  be given to government to be used in health and education.
The government is of course free to charter the Falcon Jet if it so wishes – at a rate of US$10,000 per hour (about K24,000).
This might be the first of a number of government assets to be put up for sale, including Telikom and PNG Power, reading from comments made by Sir Mekere yesterday.
"These utilities are vital to support social and economic development, he said.
"We cannot ignore the state they are in any longer.
"In the short time the O'Neill-Namah government has, I am determined to find solutions and effect change."
Sir Mekere was instrumental in setting up the Independent Public Business Corporation during his tenure as prime minister in 1999 to oversee the privatisation and corporatisation of non-profitable state-owned enterprises.
He said the Somare government had "weakened the role of IPBC from being a house of rehabilitation to a warehouse storing junk".
It would appear he is all for moving back to his original goal for the IPBC, adding he had taken a long hard look and knew what had been going on and what needed to be done.

Resource transfer not government policy, says PM

TRANSFERING ownership of mineral and hydrocarbon wealth from the government to landowners is not a government policy yet, Prime Minister Peter O'Neill said on Wednesday, The National reports.
O'Neill made the comment to allay fears among industry parti­cipants following statements from two ministers that the new administration would change the fiscal regime governing the mining and petroleum sector.
The statements by Mining Mi­nister Byron Chan and Planning Minister Sam Basil had jittered stocks of PNG mining companies and elicited strong protests from the industry.
O'Neill said yesterday: "This is not yet government policy. Cabinet and parliament are yet to discuss the matter."
The prime minister assured stakeholders that they would be consulted fully before any policy or law was considered.
This was the second time in as many days the prime minister has had to correct the impetuous words and actions of his new ministers.
On Tuesday, he said cabinet had not made any decision to withdraw or suspend the powers of any provincial governments inclu­ding East Sepik and Morobe.
The two second-tier governments had gone to court on the basis of "speculations" based on an internal memo from Minister for Finance and Treasury Don Polye.
The mineral and hydrocarbon ownership issue was sensitive and one industry watcher said any change by the current regime "will be the single biggest mistake" and would cripple the economy.
The Chamber of Mines and Petroleum was understood to have written to O'Neill ex­pressing the concerns of its members.
The current push was to change section 5 of the Mining Act and section 6 of the Oil and Gas Act to transfer ownership of mineral and hydrocarbon wealth from the state to landowning groups.