PORT MORESBY, PNG—–A new study of Papua New Guinea’s (PNG)rural population has revealed agriculture dominates the lives of most Papua New Guineans, but it is undervalued and misunderstood. ‘Food and Agriculture in Papua New Guinea’, a new book published by the Australian National University Press, says for most people in PNG, agriculture is an important part of their lives – physically, culturally, economically, socially and nutritionally. Co-author Michael Bourke, from ANU, has told Radio Australia’s Pacific Beat program, that while 81 per cent of PNG’s population live in rural areas, the power lies with those in urban areas. And, he says, those in urban areas are responsible for many myths that define the country. “For example, there’s a myth that Papua New Guineans live on rice. Well these urban people do live on rice. But in fact the rural majority do not live on rice, they live on sweet potatoes, bananas, sago and other root crops,” Dr Bourke said. Only four other countries in the world have a greater proportion of their populations’ living in rural areas than PNG. Dr Bourke said while the government in the capital Port Moresby doesn’t ignore the role of rural PNG, agriculture does “tick away in the background.” “Certainly subsistence agriculture and food production is generally is out of sight,” Dr Bourke said. “Basically the huge number of people – we’re talking about over a million households in the rural area – who produce food, they produce most of their own food, and it quietly happens… and most of this is not marketed, a very tiny proportion of this goes through the formal markets, we’re talking about one or two per cent. “So it happens in the background, so I think because it’s invisible it tends to be undervalued.” Dr Bourke says in his research he also discovered that barriers to land access are also a myth. “When I listen to people (in rural PNG) talk about the constraints they talk about transport, they talk about security, sometimes they talk about credit, they talk about availability… but you never, ever hear people talk about not having access to land in the customary land situation,” he said.
Monthly Archives: November 2009
PNG’s National Fisheries Authority updating list of fishing vessels
THE NATIONAL
Wed, 25 Nov 2009
PORT MORESBY, PNG —- The Papua New Guinea (PNG) National Fisheries Authority (NFA) is now updating the list of tuna fishing vessels on Western Central Pacific Fisheries Commission (WCPFC) registry which are operating in PNG’s exclusive economic zone. NFA wants to effectively track every tuna fishing vessel in PNG waters from here on using the vessel monitoring system (VMS), managing director of NFA Sylvester Pokajam said. The updates are being done on both the domestic vessels which bear the PNG flag, and the domestically-based foreign vessels. These vessels bear the flags of their respective originating countries and under the NFA licensing requirement, the vessels have to offload their catch at processing plants in PNG for processing as export loins or canned fish. This move by NFA is in line with latest European Commission (EC) regulation which is scheduled to take effect on Jan 1 next year. The illegal unreported and unregulated (IUU) regulation 1005-08 is aimed at improving traceability of all fishery products traded with the European Union (EU). The regulation also covers provisions on port state control, the setting up of EU alert system, IUU vessel list and list of non-cooperating countries. “It is also intended to support co-operation between flag states – country of processing and country of marketing – (which facilitate the control of the compliance with the conservation and management rules,” NFA said in a public notice it took out earlier this month. Mr Pokajam said yesterday once completed, the list would be submitted to WCPFC in Pohnpei, Federated States of Micronesia, where it would be added to the vessels’ database. The listing is accessible by the EU and other regional management organisations (RMOs). The fishing flag vessels and their owners and operators are required to provide full details of all fishing vessels and carriers. NFA said the exercise would also complement the outcome of WCPFCTCC5 last month which called for the setting up of unique vessel identifier (UVI). “Since PNG has one of the best VMS in the region, it has been selected to trial-run the UVI exercise,” NFA said, adding the information provided would be needed to general UVI number for each vessel. NFA’s licencing and data management section is heading the exercise.
Donor give K450 million to fight HIV/AIDS in PNG
THE NATIONAL
Wed, 25 Nov 2009
PORT MORESBY, PNG —- More than K450 million (US$173 million) has been spent by Papua New Guinea’s (PNG) development partners in the past 12 years to help fight the spread of HIV/AIDS, National AIDS Council (NAC) chairman Sir Peter Barter said These partners included AusAID, UNAIDS, the Asian Development Bank, the United Nations Development Programme, Global Fund, the US government and a number of foreign embassies. Sir Peter said in a statement that AusAID had provided direct financial assistance to fund staff salaries (mostly Papua New Guinean staff), vehicles, IT equipment, monitoring and evaluation capability, travel, conferences and procurement of goods and services. It had also helped in the construction of voluntary counselling and testing (VCT) sites, construction and equipment of sexually transmitted infections (STI) clinics and testing laboratories and technical training of staff. “Most importantly, they provide direct funding to our major stakeholder partners such as faith-based organisations, Government departments and NGOs to undertake all HIV/AIDS activities. “This has amounted to more than A$150 million (K367 million) during the past 12 years,” Sir Peter said. UNAIDS, according to Sir Peter, has provided technical assistance, specialist manpower assistance, IT equipment, training, international and domestic conferences, leadership, salary costs, VCT, etc. This had added up to US$30-35 million (K80-K93 million). ADB on the other hand, had provided funds for upgrading scores of rural health facilities rebuilding, rehabilitating and equipping them, procurement of condoms and related health services in enclave settings for many years. It also had provided IT equipment and specialised training for doctors, nurses and other staff who deal with HIV/AIDS and STIs while UNDP has provided for procurement of goods and services and technical assistance upon request, global best practices, domestic and global comparison exercises, IT equipment, VCT, training, etc, for many years. Global Fund, according to Sir Peter, had provided grant money for ARV drugs, VCT sites, opportunistic infections management, STI management, malaria, salaries, operational costs, technical assistance, IT equipment, testing laboratories, training, domestic and international travel, monitoring and evaluation, etc, over the past several years. “Global Fund has, in fact, rescued the Government over the past 6-7 years as it has had to purchase all the ARV drugs which have been dispensed to our people who have tested positive and are now living with the virus. Without this help these people would be dead. This fund has provided up to US$40-50 million (K106-K130 million) to fund these programmes,” Sir Peter said. He said the US government had also provided direct financial assistance to a number of global and domestic NGOs which deal with family violence, VCT, STI/STD, care and counselling.
PNG opposition criticises predictions of 2010 budget
RADAUS
Wed, 25 Nov 2009
PORT MORESBY, PNG —– Papua New Guinea’s (PNG) opposition says the government’s 2010 budget is nothing more than a false hope. In his budget reply speech the deputy opposition leader Bart Philemon said that on past form, the Treasurer Patrick Pruaitch’s prediction of a balanced budget was a false hope. Mr Philemon said in 2008 the government predicted a budget surplus but finished the year with a record deficit of nearly $US186 billion. He’s predicting another deficit of $US112 million this year. Mr Philemon said after seven years in power the government had little to show except for a brand new $US44.8 million luxury jet which arrived in the country on Monday. He said Papua New Guineans deserved to know how much it will cost to maintain the government’s expensive new toy. Mr Philemon also attacked the government’s practice of spending money that had been sitting in trust accounts. As an example, he said around $US74 million dollars in cheques were distributed to landowners at a Port Moresby nightclub last Friday night. Mr Philemon said the money was used to appease the landowners who were affected by a multi-billion dollar liquefied natural gas project. He said two senior ministers presided over the handouts. Mr Philemon labelled the trust accounts as “fast-money schemes”which allowed the government to spend money without adhering to financial management regulations.
Maxtone-Graham replaced as riots inquiry chairman in PNG
THE NATIONAL
Wed, 25 Nov 2009
PORT MORESBY, PNG —- ANGLIMP-South Waghi MP Jamie Maxtone-Graham has been removed as chairman of the Papua New Guinea (PNG) parliamentary bipartisan committee investigating the May riots against Asian-owned and operated businesses. He has been replaced by Ijivitari MP David Arore. Leader of Government Business Paul Tiensten moved a motion without notice where he announced the changes, to the surprise of most MPs. The National understands that the Government caucus last week discussed the issue but after a heated debate, it was agreed that the changes be shelved. However, Mr Tiensten announced the changes yesterday to the surprise of many MPs. Mr Maxtone-Graham, when contacted, said most of the committee members were unhappy with his removal as the investigations were gaining momentum and they believed they were doing something worthwhile. “I am a nationalist. I believe in the indigenous people who need to be protected before they lose their heritage. “We are being invaded by investors and we are not doing enough to protect our people,” he said. Mr Maxtone-Graham also raised concern that the committee had not been properly funded and called on Mr Tiensten to release funding for the committee to complete its investigations.
PNG Government takes delivery of K120 million luxury jet
P/Courier
Tue, 24 Nov 2009
PORT MORESBY, PNG —– Senior Papua New Guinea (PNG) government ministers and VIPs yesterday witness the arrival of the controversial government jet, at Port Moresby’s Jackson’s Airport.
The Falcon 900 EX aircraft estimated to be worth about K120 million arrives amidst criticism from the Opposition and the public that it is a waste of money.
The Falcon 900 EX aircraft estimated to be worth about K120 million arrives amidst criticism from the Opposition and the public that it is a waste of money.
The Opposition has attacked the Government, describing the deal as an unnecessary luxury and squandering of millions of kina in public funds.
“The Prime Minister and his government are rich enough to buy a Falcon jet for their use but not rich enough to pay nurses, teachers and policemen. Not rich enough to pay school fees. Not rich enough to pay for medicine in rural clinics and provide schools with provisions,” Opposition Leader Sir Mekere Morauta said in a statement in April when news of the jet purchase broke out.
The Opposition is expected to pursue the issue in its 2010 Budget reply in Parliament today
The Prime Minister Sir Michael Somare defended the purchase in a statement the same month, saying the Government had K40 million allocated in the budget to Air Niugini for the purchase of the jet to cater for the growing needs in the mineral sector.
“Our economy has grown considerably and our budget increased significantly since the deficit years prior to 2003. We are therefore not taking out any of our service sectors to give to Air Niugini to purchase the aircraft. As a government we have increased allocations to all our sectors since 2003,” he said.
Treasury and Finance Minister Patrick Pruaitch has also confirmed in his 2010 budget speech last Tuesday at Parliament of the funding of an additional K30 million for an aircraft.
“The Government will provide K30 million for the procurement of the aircraft by Air Niugini. The same level of funding was provided in 2009 for Air Niugini to meet costs associated with refleeting and other operational issues,” Mr Pruaitch said.
Sources from the Opposition at the weekend were questioning the component of funding of the jet. They assert that K40 million is not enough to purchase an executive jet as such. They claim that there is component funding to the purchase of the jet, where part funding is from a foreign government.
The Post-Courier asked Air Niugini’s chief executive officer Wasantha Kumarasiri to comment on the cost of the jet and details of its purchase.
Mr Kumarasiri said questions regarding the purchase and costs were confidential issues under Air Niugini’s commercial agreements.
Over 300 West Papuans go back home
The National
Tue, 24 Nov 2009
PORT MORESBY, PNG —- More than 300 West Papuans living in Papua New Guinea (PNG) were repatriated to Jayapura last week under a joint programme organised by the governments of Indonesia and Papua New Guinea.
In the first leg of this exercise, Indonesian Air Force C130 aircraft uplifted a total of 142 men, women and
children out of Wewak’s Boram Airport last Thursday to Indonesia.
Those boarded the Aircraft were from Manus, Bulolo, Goroka, Lae, Madang and Wewak. The second trip out of Port Moresby saw another 170 Papuans from the Southern Region and Lae leaving on Sunday.
Four older people flew from Lae to add the numbers to the group that flew out of Port Moresby, as they were unable to travel by road to Madang, then by ship to Wewak.
Others that travelled out from Port Moresby were from Kiunga and Daru, while the rest were from the NCD and Central province.
PNG Foreign Affairs officials, who were in Wewak to coordinate the exercise, said the West Papuans volunteered to be repatriated. They said more than 700 were listed for the exercise, however, only 312 decided to leave while others decided to remain in PNG.
The programme, funded by the Indonesian government, was to repatriate West Papuans who were willing to return to their country of origin where they would enjoy an improved standard of living.
Roby Merauje, a West Papuan, said he was willing to go home but was still uncertain about his future. He said they volunteered to return to Jayapura because of the better living conditions.
Overseas food bill to rise to feed LNG workforce in PNG
The National
Tue, 24 Nov 2009
PORT MORESBY, PNG —- Papua New Guinea ( PNG) will continue to import foodstuff and vegetables to feed between 15,000 and 16,000 workers engaged in the multi-billion kina LNG project.
Small to medium enterprises (SMEs), which are set to mushroom during the construction phase and during the project life, will continue to be run by foreigners. Jobs will also be dominated by skilled foreigners.
These concerns were raised by the parliamentary bipartisan committee investigating the anti-Asian riots in May.
Committee members conducting the inquiry yesterday included chairman Jamie Maxtone-Graham, Lagaip-Porgera MP Philip Kikala, Sohe MP Anthony Nene and Wosera-Gawi MP Ronald Asik
Small Business Development Corporation (SBDC) officials, in giving evidence, admitted that PNG was not ready in terms of taking up opportunities in SMEs.
SBDC, an organisation that comes under the Commerce and Industry Department, has been tasked to promote and empower Papua New Guineans in small business opportunities.
SBDC acting executive officer Kila Oli and caretaker managing director Diri Kobla made submissions that capacity and staffing issues had been an ongoing problem for them.
Mr Oli told the inquiry that SBDC lacked the capacity to carry out surveys on the number of SMEs in NCD and other centres. He said although there was no data on the number of SMEs, it is common knowledge that Asians have taken over kai bars, tyre service and small businesses once reserved for Papua New Guineans.
He said the reserve activities list, which was done away with in 2004, should be reinstalled to protect Papua New Guineans in small business.
Mr Kikala raised the issue that the LNG project was coming on stream and SMEs would mushroom and asked whether SBDC was aware of this.
Mr Oli, in response, said the organisation was aware of the LNG project but did not have the funding, capacity and manpower to run with it.
He said Papua New Guinean small businesses were limited and the organisation was encouraging landowner companies into joint venture with foreign companies. “We are not ready to work on our own, we have to work in joint venture with multi-nations.”
Mr Maxtone-Graham said State entities and Government departments had revealed that they also faced similar problems. “Our people will continue to miss out and I believe priority should be given to your organisation (SBDC) to empower Papua New Guineans to grab the small business opportunities,” he said.
LNG project in PNG spur acute fund crunch
The National
Tue, 24 Nov 2009
PORT MORESBY, PNG —- Businesses that are seeking deals with the K40 billion liquefied natural gas (LNG) project are going to face difficulty in raising capital, an expert Australian accountant has warned.
And local commercial banks will have difficulties meeting their requirements for capital funding, Paul Cooper, director of Australia’s Chartered Practicing Accountants, said.
The Asian Development Bank (ADB) has seen that “that is a big issue for this region and they see the amount of money needed is not just for the project leader but also for the other contractors around it … it is possible that they are going to be short of capital,” Mr Cooper said.
“The banks here need to have their fund capital freed up to allow those contractors and sub-contractors to finance their way into those projects.
“That is going to be the biggest challenge … the size of the project is one thing, but it’s how the banks are going to fund all the other businesses around it,” he said when he addressed about 830 participants at this year’s joint CPAPNG/CPAAustralia conference in Port Moresby.
Mr Cooper made this observation as a reaction to a question from a participant on the effect of the LNG project on the country’s economy.
“So unless the World Bank, the International Monetary Fund (IMF) and anyone else with developmental funding come to the rescue, then I just cannot see how some of the companies surrounding it (project) would be able to pursue their business with LNG,” Mr Cooper said.
The conference was themed “surviving turbulent times” and reportedly was also attended by Fijian participants.
James Kruse, the national president for CPA Australia’s PNG branch also raised the same issues.
“This project woulld create its own issues and challenges for the businesses and institutions within this country, and of course the accountants and financial controllers within each of those entities,” he said.
And since PNG did not fully feel the impact of the global financial crisis (GFC), he noted: “Whilst PNG survived the GFC, we will nonetheless face our own turbulent times particularly as our economy extends massively with the potential LNG project about to kick off.”
Mr Kruse told the participants that the theme “surviving the turbulent times” was appropriate to the events of the past 11 months
PNG to host next Miss South Pacific pageant
THE NATIONAL
Wed, 25 Nov 2009
SUVA, Fiji —- Papua New Guinea (PNG) has won the right to host the 24th Miss South Pacific (MSP) pageant next year. Quest committee chairman Dadi Toka Jr yesterday bid successfully to bring the pageant to PNG. Mr Toka told The National before the bid that he was very optimistic about PNG’s chances of winning. Solomon Islands and Fiji had also indicated their interest in hosting the 2010 pageant, and Mr Toka had said the Polynesian islands of the South Pacific might also bid to host the pageant in their islands. However, the organising committee yesterday awarded PNG the right to host next year’s quest.