Govt economic upheavals analysis rubbished

Caption: Sumkar MP Ken Fairweather.

 

By MATTHEW VARI

Sunday, July 24, 2016 (Sunday Chronicle, PNG) 

THE opposition has taken a swipe at Minister for Finance James Marape for his explanation of the economy’s downturn due to global oil price falls and the drop in commodities, which Opposition MPs refuted both on the floor and in a conference held after.

Minister Marape said what the country is facing is in relation to one of the toughest global economy in many years.

“Our commodity price are falling to the floor that we know. The economy of our largest trading partner China is not doing too well that we know,” Minister Marape said.

“But I ask an honest question. Who amongst us will be the savior of this country to bring the oil price to where it was before when it started to fall down?”

A war of words ensued from the opposition benches who shouted down the finance minister as asking the wrong questions.

In a point of order raised by Sumkar MP Ken Fairweather- he told the house that the continued falling of all commodity prices were not true.

“Coffee is at a reasonable price, cocoa is at a high price, gold is at a very high price, and oil is not at a historically low price- it is at a very good price historically.”

“There was a time when it was over a US$100 and now it’s back to US$50. So don’t just talk rubbish.”

The minister, however, reiterated that prices were globally controlled of commodities like oil.

“I’m sure the member for Sumkar looks at the prices and appreciates the fact that we live in an environment that you are dependent on the global market price out there.”

“The price is fluctuating going up and down the reality is oil contributes to 60 percent of our country’s economy revenue dropped in the last instance by 70 percent.”