Hub to pool knowledge: Yala

Caption:  NRI's Director Dr Charles Yala (center) flanked by his deputy directors

By MATTHEW VARI

Sunday, March 20, 2016 (PNG)

THE National Research Institute plans to develop a Knowledge Hub at the institute in Port Moresby, will not only see physical development of infrastructure but will also take advantage of pooling the country’s knowledge base.

According to the institute’s Director Dr Charles Yala the knowledge hub would serve to create a one stop environment on a space to allow a self-contained research community to thrive for constant inquiry, to inform, and influence development issues in the country.

He added that the 30 year concept plan would transform the way the think-tank would approach with the assistance of various expertise all pooled in the various proposed infrastructure facilities.

Stating that the plan will take into consideration and sustainability of the organisation and its ability to service the country through its research products to best understand the real issues affecting the country.

“There are two main activities here. How to create it as a place where research is conducted where enquiring, informing, and influencing takes place.”

“We are thinking about creating office spaces that consultants, thought leaders, NGOs, private sector that are interested in the work we do come here spend time use the space and in the process contribute to the generation of knowledge that ultimately lead to improved living standards.”

“It will be a place where thought leaders, former ministers, former secretaries, as well as you from the media come spend time and generated ideas,” Dr Yala said.

With investments by the institution on its IT (Information Technology) infrastructure since 2014 with the help of the Australia Government- NRI has already started creating physical knowledge management location which comprises of a physical publication, communications, IT, database.

“In an academic environment you expect quiets spaces with doors locked, when in a think tank environment it is an interactive place.”

“All this that we are talking about is a culmination of the last 10 years. NRI 2004 backwards was very different compared to 2005 onwards. Under the leadership of Dr Thomas Webster and the Chairman Sir Henry Chow.”

“The institution shifted away from that academic oriented research into public policy oriented. What we are doing is basically building from the last 10 years of legacy. And the introduction of the director, chairman, and council has been such that it has been dynamic in creating this.”

“And Sir henry Chow being a businessman and business representative in the council brought business ideas creating this direction and influence along with Websters solid background as a former provincial administrator and so forth,” Yala said.

Financing the entire knowledge hub will cost K125 million to be acquired through entering public, private partnership arrangements.

“This year we will be making submission for next year’s budget and also looking at other avenues. First step is get the project team in place and concept and start the process. This year is more getting the concept clear.”

NRI report highlights needed improvement in SWF

Sunday, March 20, 2016 (Sunday Chronicle, PNG)

  

IN one of its major reports released on Thursday, the National Research Institute has identified gaps in the Sovereign Wealth Fund legislation of 2014.  

The report titled, ‘Review of the Legislation establishing the Sovereign Wealth Fund in Papua

New Guinea’, by David Osborne, a Visiting Fellow at the Australian National University’s Development Policy Centre and is a Senior Economist with Adam Smith International.

In the report, Osborne cites political will and institutional support as major underpinnings for an effective fund with a clearly organized fiscal policy in PNG that seeks to manage the negative effects that volatility has on the broader economy and government revenues.

“If the drive is not well informed and sustained, the SWF will have only limited impact on reducing external shocks to PNG’s economy.”

“Hypothetically, there is nothing structural in place to stop a government from continuing to increase debt while accumulating money in the Savings Fund, with the result of no improvements to intergenerational equity, in stark contrast to stated SWF objectives.”

“Strong political will is a must for the SWF’s (and PNG’s) future success.”

The report points to aspects of the 2014 organic law that could be improved, like the application of checks and balances on the powers to determine the Investment Mandate, improving the Board’s conflict of interest provisions, and reconsideration of the level of tax receipts captured by the Stabilization Fund formula.

“But ultimately it is the Government’s willingness to set sustainable fiscal policy that is the most critical issue at play.”

“The SWF does offer something of a window into decision making, requiring ongoing reporting of receipts from PNG’s mineral and petroleum assets. This is a welcome element of transparency and an area to watch.”

This analysis has highlighted the main aspects of the SWF and some of the main concerns that need to be considered and addressed, such as the complexity of the withdrawal and deposit rules compared to the previous legislation.

However, making improvements to the SWF structure should not distract from the most important issue that will determine the success or otherwise of PNG’s SWF; that is, the need for ongoing political will, bolstered by community support and demand for significantly improved management of PNG’s resource wealth.

Government contributions talks still ongoing: NSL

By MATTHEW VARI

Sunday, March 20, 2016 (Sunday Chronicle, PNG)

Nambawan Super has is still in talks with the National Government for its unfunded component.

Fund CEO Gary Tunstall said that meetings with treasury and finance department are ongoing.

“The government still owes us K133 million for unfunded payments and we are asking the government to pay those funds,” Mr Tunstall said.

“We will be meeting with the treasury department this afternoon to discuss that further. They are working on it and hopefully we can get that rectified soon.”

“We need K160 million this year to make sure that our members are funded for the unfunded component.”

The unfunded components refers to what the State owes to members as part of its contributions to their fortnightly superannuation payments, which amounted to over K2 billion for a 17 year period between 1991-2008 announced in January this year.

“What we actually provide for those who are retiring this year is all the funds that they have in their account.”

“So if they have made their own contributions we provide that plus interest. If the government has made contributions we provide all the funds we have in their account that the government has contributed.”

“If they are part of the unfunded component then they do not get that amount until the government pays us.”

Ha added that advice is being provided on a monthly basis to Government for how much is paid out to the members concerned

“And we are seeking remittances from government to fund that.”

Superfund increases members buying power

Caption: (L) NSL CEO Garry Tunstall and Chief Manager Members Services Charlie Gilibichi.

By MATTHEW VARI

Sunday, March 20, 2016 (PNG)

SUPERANUATION fund, Nambawan Super, has increased its discount providers base to 80.

This was revealed during the week, which will allow all members with identification cards to access various discounts from over 80 service providers from varying rates from as low and 10-45 percent.

Chief Executive Officer Garry Tunstall said that the increase in discount providers would benefit all parties.

“It is great for both the members who can get discounts coming from property businesses that provide housing materials and construction development goods,” Tunstall said.

“So people getting housing advances can get discounts from those stores. It is good for is the participants themselves- the discount partners who will have 155,000 NSL members going to provide increased cash flow for those businesses.”

He said that with the discount program part of the fund long term- never has it had so many participants that were outside of the capital city.

“It is interesting that some time ago when we visited regional centres and found that a lot of members were not getting those discounts as a lot of the discount cards were being used in either Port Moresby as a lot of the discount providers were in Port Moresby and some in Lae.”

“The other provinces there was hardly any discount providers, so what our team has been doing is gathering discount providers around the provinces as a result they have now obtained over 80 providers.”

“If our members don’t have an ID discount card and they need one- they call into our offices and obtain a discount card and they can use them.”

Chief Manager Members Services, Charlie Gilibichi, also called on other business houses in the provinces to come forward and partner with NSL to provide discounts to members.

“We have got 80 so far but need more business houses. It is an opportunity for business houses who do not have to pay cash to advertise to 155,000 people around the country.”

“The benefit to partner is that our members are spread evenly around the country and are not only concentrated in Port Moresby, which has 30% of our members numbers.”

“We have a total of close 160,000 members and 70,000 members who have ID cards produced in the last two year and now we have another 50,000 to 40,000 to produce. We will go out aggressively for members to come forwards and get their ID card,” Gilibichi said.

The discounts providers will be effective immediately for the 2016 year with a campaign running over the next three to six months to make sure members are aware of the discounts provided.

Tunstall gave credit to the members’ services team under Gilibichi and his marketing promotional team for the achievement.

SP produces beer from local cassava

Caption: SP Management and NCD Governor Powes Parkop along with landowner farmers from Erap in the Morobe Province pose with the finished product of cassava beer.

By MATTHEW VARI

Sunday, March 20, 2016 (PNG)

AFTER almost three years since South Pacific Brewery initiated the country’s first brew from its cassava starch project in Erap, Huon-Gulf District- the brewery held a sampling event on Tuesday.

The achievement marked a milestone in both the commercialization potential of local cassava (known locally as tapioca) and the localization of beer production materials within the country.

Speaking to those present, a proud SP Brewery Managing Director Stan Joyce, spoke of the aim of the local brewer to venture into sustainable sourcing of its ingredients.

“Some years back we looked at sustainability in what we do in Papua New Guinea. As you know we have been here for over 60 years and we have had a lot of good things that have happened in the sports and community programs, but in line with our with our parent company Heineken we wanted to look at sustainability sourcing local materials.”

“As it is at the moment the malt that is used to brew beer is brought all the way from Australia to as far as China and other countries.”

“We wanted to look for a local starch source we could use to produce beer. Because Papua New Guinea is in the tropics it is difficult to grow barley, so we were looking for a starch source so through our own parent company and other work that we’ve done we have been able to identify cassava as a potential crop to be used,” Joyce said.

He said that in partnership with the Department of Agriculture and Livestock, a lot of work through the National Agriculture Research Institute they identified how best to grow the crop.

Pinning the success of the project on the success and lessons of past experiences in Thailand and that of similar local undertakings- Joyce pointed out the economic benefits and industrial need for the starch industry.

“Cassava is a major contributor to the Thai (Thailand) economy for some 400 million tonnes a year, which is a vast amount.”

“It is used in the manufacturing of other materials like chips, paper, industrial alcohol which was a big project tried down at Launa Kalana.”

“We as a brewery honestly believe that we are able to put some of the money that we make in Papua New Guinea into a catalyst investment in the project that we can make it attractive to people.”

“That we are able to do it and in time we will be able to get sufficient product produced and then make cassava for beer.”

Joyce added that with its products, quality and taste would always be factor for its consumers.

“Of course people are very cumbersome of the quality of their beer in Papua New Guinea and having SP taste as it is and for people be assured that it is a high quality, the last thing we wanted to do is produce an inferior beer.”

“The work that we’ve done tonight is a result of the work that we have done with Dr Keith Galgal. They have been doing at Erap to get enough cassava together to put this through a trial.”

He pointed out that it was a major milestone moving forward making beer made with Papua New Guinea cassava, even if it wasn’t a total replacement of malt.

“It is not a complete replacement as you still have maze and some other materials in there, some malt barley, but it is giving the opportunity for Papua Farmers to grow the product and that is the important thing.”

With the sampling done he added that it would take another year before the locally added ingredient would hit the market in their well-known products.