Papua New Guinea welcomes Pacific funding boost by Australia and New Zealand

Papua New Guinea welcomes the enhanced financial commitment of Australia and New Zealand to the Pacific, Foreign Affairs and Trade Minister Rimbink Pato said today.
“The big increase in their budgets by both of these close friends of PNG looks set to give Pacific Island states the opportunity to boost our capacity to develop economically and in governance and security,”Pato said.
“Australia is already our biggest development partner in the Pacific, and to PNG in particular, but this generous increase to $1.3 billion makes it the biggest assistance package ever and so is destined to have a significant impact.
“We are grateful for the support of the esteemed Prime Minister Malcolm Turnbull, his respected Foreign Minister Julie Bishop, and all those other ministers I recently met with in Brisbane and London.
“The extremely generous assistance for us to host APEC—nearly $20 million—and to install an underwater communications cable are examples of the support, but let me also mention the funding for future leaders and many other projects too numerous to list.”
Pato  New Zealand, Foreign Minister Winston Peters announced a 30 per cent increase in his country’s foreign aid budget to reach NZ$714 million, "and we are very pleased that this is going to the neighbourhood, to the Pacific".
Pato said it had become clear during recent meetings between Prime Minister Peter O’Neill and his Australian and New Zealand counterparts, as well as between foreign and trade ministers, that the relationship with Papua New Guinea was highly valued.
“As the Pacific Island country with the biggest population, land area and economy, we were strong advocates for boosting the economic, security and general development of all the Pacific Island Forum states and territories, and that was well received by our allies, the Australians and New Zealanders.”

Blue Pacific

 Pato said it was time for the ‘Blue Pacific’ to become a model of development, security and stability, and environmental protection and resilience.
“Our countries form an ‘ocean continent’ and cover a third of the world’s surface, and if we can move ahead in peace and prosperity, then that is a good example to the rest of the world," he said.
“The recent renewed interest in the region by the United Kingdom and France is also a good sign that we will have more opportunities to improve the daily lives of our citizens and the future opportunities for their children.”
Pato said Papua New Guinea also welcomes the development assistance provided by friends such as Japan, the United States of America, South Korea and the People’s Republic of China.
“We encourage those friends to play an appropriate economic and security role in the Pacific as I mentioned, for example to China’s foreign minister, His Excellency Wang Yi just last month,” he said
“As host of APEC this year, we will see all the countries in our region, including the Pacific Island states, come to Papua New Guinea where we believe we will see a renewed commitment to the rules based international order under which trade will be free and fair.”

* Additional Information:

The 2018-19 Australian Government Budget was released on May 8. Total Australian official development assistance to Papua New Guinea will increase from $546.3 million in 2017-18 to $572.2 million in 2018-19.
This funding will go towards initiatives that will directly benefit the lives of Papua New Guineans, such as the new high-speed undersea internet cable to be completed in late-2019, continued access to the Pacific Labour Facility, and continued support for programs that build economic growth and trade opportunities. It will also support ongoing programs in health, education, infrastructure, law and justice, gender and subnational priorities in Papua New Guinea.
http://dfat.gov.au/about-us/corporate/portfolio-budget-statements/Pages/budget-highlights-2018-19.aspx

Australian development assistance to Papua New Guinea increases by $26 million

2018/2019 Budget - Papua New Guinea

Australia has a strong and enduring partnership with Papua New Guinea, our nearest neighbour.

Close cooperation on economic, security, and development matters, as well as a broad range of people-to-people links, highlight the depth and breadth of our relationship.

Development cooperation with Papua New Guinea

• Total Australian official development assistance to Papua New Guinea (PNG) will rise from $546.3 million in 2017/18 to $572.2 million in the 2018/19 financial year

• The bilateral allocation is estimated at $519.5 million, which includes: 

- $62 million for commitments under the Joint Understanding;
- $29.6 million towards the high-speed undersea telecommunications cable; and
- over $400 million to support ongoing programs targeting health, education, - infrastructure, law and justice, gender and subnational priorities in PNG.

Supporting PNG to host APEC in 2018
Australia is expanding its support to bolster PNG’s hosting of APEC:

• $14.4 million to strengthen PNG’s cyber security capabilities in the lead up to hosting APEC Leaders’ Week and beyond; 
• Up to $10 million  to boost internet connectivity  and strengthen telecommunications; and 
• $5.4 million in support for policing, fire fighting and other hosting assistance.

This brings our total support for PNG’s hosting of APEC to $130 million.

Australia’s development assistance priorities

In 2018–19, Australian support for PNG will focus on:

• supporting the future digital economy through the delivery of a new undersea high-speed telecommunications cable from Australia to Port Moresby, a project that will have a positive impact on business engagement and significant social benefits 
• improving the lives of women and girls across all areas of work through investments that: enhance women’s voice in decision-making, leadership and peace building; promote economic empowerment; end violence against women and girls; and increase access to support services
• enabling economic growth by investing in infrastructure, innovation and business partnerships; leveraging finance for development; supporting agriculture and rural development; improving the business enabling environment; developing improved financial markets; and deepening financial inclusion 
• supporting effective governance, with an emphasis on working with provinces and districts to improve service delivery and economic opportunity; supporting the contribution of communities, churches and the private sector; and enhancing the accountability, legitimacy and responsiveness of law and justice agencies
• enhancing health by targeting maternal and child health and communicable diseases; strengthening health security; and helping to build a more effective health system
• enhancing the education sector by improving the quality of education for young children; equipping students with the skills and qualifications necessary for employment; and nurturing the leadership qualities needed for the country’s development
• cultivating a culture of gender inclusiveness.

2018 Australian Budget aims to strengthen relationships with Pacific, including PNG

2018 Foreign Affairs and Trade, Tourism and Investment Budget
Joint media release
Minister for Foreign Affairs, the Hon Julie Bishop MP
Minister for Trade, Tourism and Investment, the Hon Steven Ciobo MP
8 May 2018

The 2018 Budget demonstrates the Turnbull Government's commitment to ensuring Australia's economic and national security, as outlined in the Foreign Policy White Paper launched in November 2017.
We will strengthen relationships with our Pacific partners and work together to support the region's stability, security and economic opportunities.
 The region will benefit from over $1.3 billion in aid in 2018-19 - our largest ever contribution.
This includes funding for undersea telecommunications cables to Papua New Guinea and Solomon Islands delivering faster, cheaper and more reliable communications infrastructure, and providing economic and development benefits. 
The Budget also further delivers on the Government's largest diplomatic expansion in over 40 years and the White Paper's commitment to open more overseas missions over the next ten years, providing $10.8 million for a new Consulate-General in Kolkata, India.
The new Consulate-General will help Australian businesses access opportunities in India's growing mining sector, and protect and advance our interests in a changing Indo-Pacific.
We will also provide $8.4 million to open a High Commission in Tuvalu.
Tuvalu is a key member of the Pacific Islands Forum and an important partner in the Pacific. 
We will invest an estimated $4.2 billion in total eligible Official Development Assistance in 2018-19, including $410 million for humanitarian funding, helping those most in need after a crisis.
An additional $10 million will support the new Australian Aid: Friendship Grants scheme for Australian community groups to tackle poverty in the Indo-Pacific.
The Turnbull Government continues to seek justice for victims of the downing of MH17.
We will provide $50.3 million over four years to support the Dutch prosecution of those responsible, and assist next-of-kin to participate in court proceedings.
The White Paper committed to delivering more global opportunities for Australian businesses, which will create more jobs and economic growth.
This Budget includes a $15 million business engagement package to continue tackling non-tariff barriers on trade, which materially impact on Australian exporters.
 The package will also increase the competitiveness of our service exports and strengthen dialogue with the business community on foreign policy and security issues.
To enhance Australia's competitiveness as an international screen production destination, the Turnbull Government will provide $140 million over four years to establish the Location Incentive Funding Program.
 From 1 July 2018, the incentive will encourage more international productions to film in Australia, reinforcing our reputation as a world-class filming destination and lead to more jobs for our creative industries.
The Turnbull Government is supporting the tourism sector with $45 million in grants through the Building Better Regions Fund to help move tourists beyond the major cities.
These funds will support projects in regional areas and encourage more visits and expenditure in regional locations, creating more tourism jobs for Australians.
The Cruise sector contributes $2.7 billion to the Australian economy each year and continues to grow rapidly.
 This Budget will fund work to identify solutions to the lack of berthing infrastructure in Sydney, Australia's cruise gateway, ensuring our share of the cruise ship market continues to grow.
The Turnbull Government is also focusing on Australia's most valuable inbound tourism market, China, with the continuation of the Approved Destination Status Scheme.
 This scheme allows Chinese tourists to travel to Australia in guided groups, and plays a strong role in deepening our economic and bilateral engagement with China.
 The Turnbull Coalition Government continues to provide record funding into Tourism Australia.

Papua New Guinea: Highlands Earthquake Situation Report No. 9 (as of 7 May 2018)

reliefweb.int | May 7, 2018

This report is produced by the National Disaster Centre and the Office of the Resident Coordinator in collaboration with humanitarian partners. It was issued by the Disaster Management Team Secretariat and covers the period from 17 to 30 April 2018. The next report will be issued on or around 15 May 2018.

Background

• 270 000 people in need of assistance across four provinces of Papua New Guinea’s highlands.

• 42,557 people (11,041 households) remain displaced in nine care centres and affected communities.

• From 21-22 April, 32.5 MT of food were distributed by humanitarian partners in Urila, Lil, Kopa,
Ponga/Merep in Southern Highlands Province.

• 4,055 people reached with shelter kits in Southern Highlands, Hela and Western provinces, and 28,217 people reached to date with shelter related non-food items in the three provinces.

• 71 community mobilizers trained on providing psychosocial support.

• Total estimated cost of rehabilitating damaged social infrastructure – primarily health and education facilities in three provinces – is US$105 million.

270,000 people in need of assistance

$62 M funding required

32.5 MT metric tons of food assistance distributed

28,217 people reached with shelter-related NFI support

683 hygiene kits distributed

Situation Overview

On 26 February 2018, a 7.5 magnitude earthquake hit the Highlands Region of Papua New Guinea (PNG), affecting an estimated 544,000 people in five provinces – Enga, Gulf, Hela, Southern Highlands and Western provinces, with Hela and Southern Highlands the most affected. More than 270,000 people, including 125,000 children, have been left in immediate need of life-saving assistance. Since the initial 26 February earthquake, at least 202 aftershocks have occurred, of which six were of a 6.0 or greater magnitude.

A partial assessment of key social infrastructure (primarily focusing on health and education facilities) in Hela, Southern Highlands and Western provinces was commissioned by the Australian Government on behalf of the National Department of Works. The completed assessment concluded that total estimated cost of rehabilitating assessed social infrastructure across the three provinces is approximately AUD 140 million (USD 105 million). The assessment does not include rehabilitation of road infrastructure, which is estimated by the Government to cost approximately PGK 100 million for earthquake-affected sections of the Highlands Highway.

A mobile Vulnerability Assessment Mapping (mVAM) survey was conducted from 22 March to 12 April 2018. The results indicate that 14 per cent of 1,534 households contacted in affected areas were displaced in the wake of the 7.5 M earthquake. The survey further showed that households in nine of 31 Local Level Governments (LLGs) surveyed experienced high or extreme food shortages, with the destruction of food gardens in these areas removing the main livelihood and food supply source for the majority of people.

New Zealand hikes foreign aid budget with eye on contested South Pacific

by Charlotte Greenfield, reuters.com
May 8, 2018

WELLINGTON (Reuters) - New Zealand will ramp up foreign aid spending by nearly a third, Foreign Minister Winston Peters said on Tuesday, as the country seeks to pour money into the Pacific in part to counter the rising influence of China.

Prime Minister Jacinda Ardern and Peters, who struck a deal in October to form a coalition government, have promised a ‘Pacific reset’ to woo neighboring countries at a time when China is dramatically increasing its presence in the region.

Peters said an extra NZ$714 million ($498.94 million) will be set aside for aid over the next four years in the new Labour-led government’s first budget, set to be announced on May 17. This compares with the current annual aid budget, set under the previous center-right National government, of NZ$647 million.

“The South Pacific has become an increasingly contested strategic space,” Peters, who is also deputy prime minister, told reporters and officials in Parliament on Tuesday.

“Our voice has been weakened during the past decade at the same time as Pacific nations face a myriad of challenges they are not, in many cases, well equipped to tackle.”

The additional aid would “primarily” be directed to the Pacific, Peters added, but he gave no specific details.

New Zealand and neighboring ally Australia have long enjoyed near unswayed influence in the Pacific, including acting as protectorates over Pacific nations such as Papua New Guinea. But their dominance is being challenged with the world’s second biggest economy turning its attention to the region.

Chinese economic aid to the region is growing, according to Australian think-tank the Lowy Institute, with an estimated $1.78 billion spent in the decade to 2016.

China has denied Australian accusations that Beijing is using its aid program to exert influence in the Pacific.

“Does New Zealand need to focus more on the Pacific and to think about its delivery of aid?” said Robert Ayson, a strategic studies professor at Victoria University in Wellington.

“The China factor does encourage New Zealand to think more about that.”

Other nations have expressed similar concerns about China’s growing influence. French President Emmanuel Macron this month called for the creation of a new strategic alliance between Australia, India and France to respond to challenges in the region and China’s assertiveness.

Peters raised the issue with Britain’s foreign secretary, Boris Johnson, at a meeting in London in April. Later Johnson pledged Britain’s “scaled up presence” in the Pacific, a focus analysts say was probably prompted by the Asian giant’s rise.

($1=1.4276 New Zealand dollars)

Vanilla beans now more expensive than silver

by Sue Gleiter, pennlive.com
May 7, 2018

Bakers and ice cream makers are paying a hefty price for vanilla beans.

The key ingredient in sweet treats has soared to near record levels and is now hovering at about $600 a kilogram, making it more expensive than silver.

As a result, consumers may be paying more for that pint of ice cream or doughnut with their coffee.

Earlier this spring, Dunkin' Donut's chief executive officer Nigel Travis told Bloomberg that dairy and vanilla prices are weighing down returns at Baskin-Robbins, one of its brands.

"It puts pressure on both our margins internationally, and the costs to our franchisees, so we've taken this very seriously," he said in the story.

Locally, Urban Churn ice cream's founder Adam Brackbill said he stopped buying vanilla beans in exchange for vanilla bean paste to make his artisan ice cream, which is mostly sold at the Broad Street Market in Harrisburg.

The paste is less expensive than the actual vanilla beans, he said.

"With the prices they are now a days, it's better to buy vanilla bean paste. That is, if you want the beans for that visual appeal," Brackbill added.

In the United Kingdom at least one ice cream maker stopped producing vanilla ice cream, while another ice cream business, Snugburys Ice Cream, says it is paying 30 times more for vanilla than it did last year, according to the BBC.

"It has really gone up, so last year we decided to buy it forward by a year's-worth," Cleo Sadler, who manages the production side of the business, told the BBC.

The high prices can be blamed on a cyclone which last year hit Madagascar, a tropical island off the south-east coast of Africa and the world's top vanilla growing region.

About 75 percent of the world's vanilla is grown in Madagascar. It is also grown in Papua New Guinea, India and Uganda.

Julian Gale, a commodities analyst for IEG Vu, told the BBC they had hoped prices would go down by now but they have remained high due to strong demand.

Melbourne Storm's Justin Olam a humble role model for PNG kids

nrl.co | May 7, 2018

Storm centre Justin Olam says he is humbled to be the first graduate from the successful PNG Hunters Intrust Super Cup side to play NRL and honoured to be able to show young kids back in Papua New Guinea that it is not impossible for them to make it to the NRL.

Storm centre Justin Olam.

©Robb Cox/NRL Photo

While the PNG Kumuls Test side has generally been bolstered by a few NRL stars alongside local players - such as David Mead, James Segeyaro and Nene Macdonald in recent years - Olam is the first domestic player to graduate from the Hunters team to the NRL.

Olam's chance came when Curtis Scott failed to pull up from an ankle injury suffered in round eight and Young Tonumaipea suffered a hamstring strain at training, resulting in a late call-up.

He had some impressive moments in his team's 34-14 loss to the Dragons at Kogarah, pulling off some big tackles and helping outside man Josh Addo-Carr into space on more than one occasion.

"It's not the result we wanted but it's good for me to have a game and go out there and play. I loved it," the softly-spoken 24-year-old told NRL.com after the game.

"I'm the first to come through the Hunter system to play NRL so I'm really humbled. It's a good pathway. I came through thanks to the Storm giving me the opportunity to play.

"It's great for the pathways, that's the main reason why the Hunters have been established as a club, to make a pathway for young Papua New Guineans to come and make their NRL dream.

"I'm happy to be the first one. For me to be the first one is a message to the young kids in Papua New Guinea that it's not impossible to play NRL.

"I'm really humbled I can be an example."

Olam acquitted himself well in his top-grade debut, putting outside man Josh Addo-Carr away for a try and putting on a few shots in his 10 tackles while also accruing 97 run metres. However he said he was far from satisfied with his own performance.

"It's my first game, I just need to get my body up to the pace and understand the game as well," he said.

"It's different from [Intrust] obviously. I'm not really confident at the moment but if I play a second or third game I know what to do next. I know I'll be very confident my next game."

Olam wasn't sure how long teammates Scott and Tonumaipea would be sidelined. Coach Craig Bellamy also has the option of a fit-again Cheyse Blair, who recently returned from injury as well.

"All I need to do is go back and train well and improve on my mistakes," Olam said.

"Hopefully I get a second call-up."