SABL report to be tabled once final report in: PM

Prime Minister Peter O'Neill.

 

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

PRIME Minister Peter O’Neill has assured parliament that the long anticipated SABL Commission of Inquiry report would be tabled once the final report from one of its three commissioner’s in handed in.

He made the statement when asked by Member for Pomio, Elias Kapavore, on the status of when the report to be presented in parliament.

“When we came into govt very early we set up the SABL commission of inquiry we have received reports back to government from two out of the three commissioners,” the PM said.

“Even to date, we are yet to receive the last commissioner and as a result of that the commission of enquiry itself has not been fully completed and as such cabinet has taken note of the reports by only two commissioners.”

“Rather than just waiting for the other commissioner to submit his final report cabinet has taken some decisions based on the recommendations of the other two commissioners able to launch their report.”

He said his government had taken major decisions to cancel all SABL certified by Lands Department to address the abuse of the concept and also enable landowners to renegotiate current project that have existed as a result of the concept.

“The government has made a decision that all the SABL leases that were issues to be cancelled. That instruction has now gone to the Lands Department and as of today I can assure you that these leases are now being cancelled.”

“Where there are project that now existing we’ve encouraged the Landowners (LOs) to renegotiate many of those lease arrangements and the arrangements they have made with the developers and again these leases were given without much thought in the past.”

“As a result lot of the landowners stood to lose all their years of generations of ownership of the land that they have had for many years that is why government has to take a tough position where we do not want the rightful landowners losing their rights to them for future generations as well.”

The PM pointed out that the protection of the interest of the children of the country was vital for their future as landowners.

“We cannot pass the entire ownership to the developer and our people losing the rights- that is why we have instructed department of lands and forestry to cancel all the SABL leases.”

“Once we have concluded the final report from the commissioner I will table the report to this honourable house.”

“We are having difficulties with that because lack of cooperation from that commissioner. Despite the fact that we have paid all the fees, the report is not forthcoming.”

“There are cases where some developments have taken place where we want the developer and LOs to get better benefits through renegotiations.” 

Nomination fee increase determined by EC advice

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

THE proposed increase to the nomination fees of intending candidates in the 2017 General Election will be pushed through to law if and when the Electoral Commissioner (EC) sees fit to have the changes take effect.

It was revealed by the Prime Minister, Peter O’Neill when referring to a series of questions related to the subject from Member for Rabaul Dr Allan Marat.

“Fact remains elections are getting more expensive, as we all know as former candidates of elections, we know running election cost more than K10,000,” the PM said.

“Now we are reaching close to K400 plus million to run 2017 elections, costs keep on going up because number of candidates increasing.”

“As a result of that getting more costly for the electoral commissioner- I think it was well below k200 million in previous years. So someone has to pay and meet the cost of this.”

He said while it is the government’s responsibility- with the rising cost it was taking a strain on the pockets of ordinary tax payers.

“The government has put these proposals to the electoral commissioner. Electoral commissioner will make the assessment and then will advise us whether he feel necessary that parliament should consider this or no.”

“When this matter is put forward before parliament after the consultation with the electoral commissioner then we will debate whether we increase the fee.”

“Applicable in 2017 elections, quite frankly I don’t know, it depend entirely on the advice we get from the electoral commissioner, if he says yes that will help us meet the cost of running the elections let us put it before the writs are issued we’ve got now before April 20th 5 or 6 months to go there is sufficient time for us to make constitutional amendments where necessary.”

“Our lawyers, state solicitors office, think that this is a adequate time to make the changes because I understand it was over 20 years ago when the last increases were done, between now the cost of doing elections have increased dramatically.”

The PM added the next elections could have as much as over 4,000.

“To run an election for 4000 candidates for 111 seats on the floor of parliament is quiet expensive that is why had to K400 million this year,” he added.

Micah queries fisheries revenues

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

MEMBER for Kavieng and Shadow Mister for Fisheries and Marine Resource, Ben Micah, has questioned what he said was US$10 billion in Tuna revenues in the 2017 budget, and the reinvestment back into maritime provinces in the islands regions.

Mr Micah reiterated that the country did not only exist on land with resources but also included the sea with its abundant resources.

“This sea area of our nation produces up to US$10 billion of Tuna only- we are talking about one major resource,” Micah stated.

“Most of it is coming out of an area that is known as the Bismarck Sea, and more specifically in my electorate.”

“How many years in government a lot of money from NFA (National Fisheries Authority) has been used to make roads in Port Moresby, used for all sort of expenditure from government that is not relevant to where the resource is coming from.”

He said there were no clear indications in the budget on the revenue of the tuna funds and the investment in island provinces and districts for that matter.

“The factories in Madang, Lae, Wewak. When will that money come into developing the fishing industry in the island regions where the Tuna is coming out? Do you have plans feeding your NFA and building roads in NCD?”

Fisheries Minister Mao Zeming referred to the country’s five onshore canneries in operation as clear indicators of reinvestment of the fisheries sector and also increasing the lucrative returns it brings into the public purse.

“Revenue is increasing now and we are giving dividends to the state. All four years I have paid dividends through my ministry,” Zeming said.

“I want to tell the country that we are serious in the business of fisheries, and you can see that with all the work that we are doing with a review of fisheries.”

“In Kavieng we are working on bechdemer projects and I hope the member will work closely with me.”

“We have the plan to put canneries in the country to achieve 100% downstream processing and export policy.”

He added that review into the fisheries sector is taking place by taking stock of all sectors in in the industry.

“So I want to tell the country that the five canneries are employing more men and women. Inside there are close 18,000 men and women working in them, 12,000 plus are all women.”

All SoEs do not set their own rates: Duma

Minister for State Enterprise and Public Investments William Duma.

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

The straightforward response was given by Minister for State Enterprise and Public Investments, William Duma, when responding to queries on the ability of state owned companies price increments, that they impose.

Minister Duma said that SoE are expected to operate as commercial entities, with their price setting and regulation to be done in close consultation with ICCC (Independent Consumer and Competition Commission).

“All the companies that are under the Ministry of State owned Enterprises are expected to operate as commercial entities and any price that are set by them actually in the first instance are approved by ICCC which is the price regulator for all the services that are provided by Service providers in this country,” Duma said.

“Air Niugini for instance, even PNG Power, Eda Ranu, Waterboard all State Owned Enterprises don’t go out on a tandem and impose rates on their own free will.”

“ICCC after taking into account all the circumstances of this country then allows and approves rates. It will be misleading for anyone to think otherwise.”

“In the case of water PNG any rate it charges must go through ICCC. All companies owned by government have no powers to impose rates on their own accord. They are regulated and controlled in the first instance by ICCC.”

NDB to commercialize operations: MD

NDB MD Moses Liu

 

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)  

WITH government support to the National Development Bank still not up to demand in the Small to Medium Sector- the Bank is now seriously looking at commercializing its operations from a state funded one to a privately funded one.

Next year’s budget allocation of K30 million is still below the needs of the growing SME sector that demands loans at a rate of 20% per annum.

NDB Managing Director Moses Liu, said the bank expected something better than the K30 million considering the culling of its budget in the 2016 supplementary budget.

“Basically this year was supposed to be the implementation year, 2017 was supposed to be the implementation of the SME policy.”

“However, it appears that it will be put on the backburner somewhat and I believe we will be struggling to meet the demand, because demand for SME loans is growing at about 20% for an average every year,” Mr Liu said.

He said with the continued shortfalls coming from the national government- talks have taken place with the Department of Treasury for reforms to the banks systems and structures in order for it to survive as a commercial institution.

“We are currently looking at commercializing the bank basically, and there is a proposal before the government now, and that is to making sure that the bank becomes self-sustaining going forward not to keep running to the government every time,” Liu said.

“The government has got other priority areas like education and health and all that those are the key social deliverables and therefore we also believe the economic sector should look after itself in regard to growing the economy and engaging a lot of Papua New Guineans to be involved in businesses”.

“So the sustainable model is to commercialize our bank so that it will maintain its developmental objectives at a concessional rate of lending and also look at the commercial rates as well.”

He said with the commercialization of the bank, there will be two lots of interest offered. One for developmental side in growing the SME sector, and the looking commercial loans for existing SMEs that want to grow to expend their level of operations.