Tate: Log Export Tax a Failed Policy
by PNG Business News - January 27, 2021
The round log export tax was a failed policy.
According to Forestry Industry Association president Bob Tate, the current tax regime (50.2 per cent) had affected businesses which resulted in a decline of US$83 million (K288.42mil) from January to November in 2020.
In 2020, royalty payment to landowners also saw a decline of K16 million because of the decrease in the production of 20 per cent by firms due to the high tax. As a result of the mills and processing sites closing its operations, an estimated 8,000 local and 600 foreign workers were booted out of their jobs.
Wages lost were figured to be around K4 million.
Tate said that in 2020, government revenue went up to K383,465,238 million from K379,011,840 million in 2019. He added that unfortunately, the industry will still go down this year.
“It’s going to get worse, not better,” Tate said. “A lot of companies including these processing factories are all shut, all finished and they are not going to reopen. It started last year and will continue this year. The impact of the tax is slowing shutting things down.”
Because of the health crisis, Tate said that the demand for the processed products of the country had gone down and will only go up when the economy improves.
Meanwhile, PNG Forestry Authority managing director Tunou Sabuin said that the forestry industry could only recover if the tax goes from 50.2 per cent back to 28.5 per cent. Because of the high log export tax regime and uncertainty in the investment world with policy changes, the industry was not looking good.
“There is nothing much that the Government of PNG can do about the pandemic as it relates to trade in timber,” Sabuin said. “But it can make a decision on the reduction of log export tax to support the forest industry survive.”
In taxes, the industry contributes on average K334.3 million per year, said the organisation. From 2015 to November 2020, taxes paid were K2 billion.
PNG Business News - February 10, 2021
Marape: Commodity Cost Support Programme Will Support Coffee Market Costs
In a recent visit to Jiwaka, Prime Minister James Marape said that the commodity cost support programme will support the current coffee market costs.Following the initial K50mil allocated last November, Marape said that the programme will receive K200 million each year. Through the Coffee Industry Corporation (CIC), the government has already allotted K10 million. Marape said, “This funding will support the current market price to be fixed at K6 per kg for Arabica coffee, K5.50 for Robusta coffee and K2 for Cherry coffee.Meanwhile, Agriculture and Livestock Minister John Simon said the CIC is going to work with five registered coffee dealers in Jiwaka who pay the price of cherry at K2 per kg and coffee at K6 per kg. CIC acting chief executive officer Charles Dambui expressed his gratitude to the Government for the price support. “In the past, price support was executed at the free onboard price (green bean price) where only exporters benefitted,” he said. “We are now changing the approach.”He added that the implementation phase was very important in the success of the programme and in looking after its sustainability.
PNG Business News - February 04, 2021
Coffee Needs to be Marketed Better to International Consumers
During the signing of the memorandum of understanding between the Pacific Horticultural and Agricultural Market Access Plus (Phama Plus) and the Coffee Industry Corporation (CIC), it is emphasized that marketing needs more attention in the exportation of coffee to the international market.While Rachael McCarthy of the New Zealand High Commission is happy to support the PNG coffee farmers, Joshua Kaile of the Australia department of foreign affairs said that they recognise the significance of agriculture in the coffee industry. CIC general manager Steven Tumae looked at the need for more exposure. “The MoU is a partnership agreement between Phama and ourselves (CIC),” he said. “It’s basically to do with Phama Plus helping us with the marketing of coffee overseas. We’ve been putting a lot of money into the coffee industry but there has not been enough help. We are hoping that Phama can train people in the industry. We’ve also asked them to help set up quality control grading labs in certain areas throughout the country.”Pharma Plus gives targeted assistance for Pacific Island countries to work on their regulatory aspects linked with primary and value-added products. This involves accessing products into new markets.
PNG Business News - January 29, 2021
Extension Services Must be put in Place, Says Agriculture Minister
To support local farmers to encourage them to take part in cash cropping, extension services in agriculture into rural areas must take place.This was according to the Department of Agriculture and Livestock (DAL) Minister John Simon who said that the country needs 400 agriculture extension officers.“Many farmers are trying their best to sustain their farms and to keep them going but they are faced with mounting challenges from pests to field management, harvesting and treatment,” he said. “When these farmers struggle alone without expert advice, they will give up and move on to something else. This affects production that we have over the years with cocoa and coffee as well as others.”Simon said that this was part of boosting the economy. He added that he had already encouraged Coffee Industry Corporation (CIC) and Cocoa Board to invest more in extension service work. “Go out to farmers in the rural areas and establish why they have abandoned coffee and cocoa plantations so that you can see the real problems and solve them,” Simon said, saying that the Board needs to be more effective.“Get more extension officers out to districts and local level government areas where the farmers are and help them so that more is produced to supply the markets overseas.”Simon said that in the last two decades, work for the extension officers gradually diminished.
Paul Oeka - March 27, 2023
Papua LNG project to Minimise Economic Challenges
Photo: Petroleum Minister Kerenga Kua Petroleum Minister Kerenga Kua has recently stated that the Papua LNG project is critical in addressing some of the economic challenges that are currently faced in the country. He said about K75 billion will be generated over a 15 year period when the project is in progress. He added that the initial stages of the project has commenced with K500 million said to be inputted into PNGs foreign exchange capacity in 2023. During a press conference on Thursday the 9th of March, The Petroleum minister highlighted the progressive stages of the Papua LNG project and emphasized the importance and significance of the benefits that the project will provide. According to studies the project life is expected to operate over a 15 year period that will generate about K75 billion and significantly boost Papua New Guinea's struggling economy. "The K75 billion benefit is inclusive of what comes to the state directly as levies, to Kumul Petroleum, to the landowners as royalties and the provincial governments. All of us put together are going to be collecting and sharing that benefit in the next 15 to 20 years", Kua said. Minister Kua said that studies for the Papua LNG project began in 2004 following the discovery by Interoil, the resource estimate is in the range of 6 trillion cubic feet of gas and 98 to 100 million barrels of condensive oil. The benefit of this project is immense and a positive component is the national content which is expected to positively impact GDP, export earnings, forex, revenue to impacted levels of government, landowner benefits and Job opportunities. Minister Kua said the project developer Total Energies will inject K500 million into the PNG economy in 2023. "The Papua LNG project is a project of national significance for Papua New Guinea and will stimulate business confidence and will provide a significant impetus for our economy", "The Marape-Rosso government places high priority on the delivery of the Papua LNG project, we have an improved deal for our people, and improved contribution for our national contractors and workforce. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver the project on time and on budget", Minister Kua said. Petroleum Secretary David Manau was also present at the conference, he highlighted that the petroleum department will work closely with impacted provincial governments and landowners as this is important in ensuring that all stakeholder grievances are discussed and addressed. In light of this, a development forum is expected in the third quarter of this year. Meanwhile, Kua also revealed a unique aspect of the upcoming project which will mitigate the project's carbon footprint and is set to make PNG in becoming the first country in the Asia Pacific region and only the second on the world to re-inject carbon dioxide back into the well pad in a LNG project. He said the re-inspection of carbon dioxide into the well pad is a significant step towards reducing the project's carbon footprint and will help mitigate the environmental impact of the project and contribute to Papua New Guinea's efforts to combat climate change. The Papua LNG project is a joint venture between the PNG government, TotalEnergies and Exxon Mobil. It is one of the largest investments in the country's history and is expected to generate significant revenue for PNG's economy. Total Energies holds 40.1 percent interest in Papua LNG, along with its joint venture partners Exxon Mobil (37.1 percent) and Santos(22.8 percent). The Papua New Guinea government may exercise a back-in right of up to 22.5 percent interest at the Final Investment Decision (FDI) planned by end of 2023 to early 2024 and production will be scheduled for four years later.
PNG Business News - March 27, 2023
WanPNG: The Skills Development and Jobs Platform for the People of Papua New Guinea
Wan PNG is a platform and community dedicated to expanding opportunities for local Papua New Guineans. Its goal is to increase the development and sustainable employment of local PNG talent, so everyone in our great nation can share in newfound resources and growing prosperity. With the goal of empowering individuals and businesses with the skills and people they need to succeed in the 21st century world, the Wan PNG platform spans three core areas for job seekers: Employment opportunities: Gain experience with internships, start earning with entry positions, or upgrade your career with the next big job. Career advice: Advance your career with expert advice and professional resources, and stay up-to-date on the latest news. Education and training: Expand your employment prospects by upgrading your knowledge, skills, and competencies through courses. For employers it provides: Free access to upload jobs and find the best talent. Smart matching between jobs and candidates. Diversity promoting candidate suggestions reaching a wide pool of talent. The platform's primary objective is to promote lifelong learning and employment and simultaneously bridge the skills gap in Papua New Guinea by providing accessible training opportunities to all its citizens. WanPNG believes that by investing in the development of its people, Papua New Guinea can unlock its full potential and become a more prosperous nation. WanPNG is now available for job seekers and employers. Visit the website now at www.wanpng.com to learn more.
PNG Business News - March 27, 2023
St John Ambulance First Aid Training for Workplace
The St John ambulance service responded to over 21,000 emergencies across Papua New Guinea in 2022. In addition to being Papua New Guinea’s main emergency ambulance service, St John is the nation’s leading first aid training provider equipping thousands of workers with essential first aid skills and knowledge. With just one day of training, St John’s expert first aid trainers can equip your workers with the basic skills to handle all kinds of first aid emergencies. Workplace accidents and injuries are a common occurrence and it is essential for employers to have a competent workforce that can respond effectively to emergencies. St John’s workplace first aid courses ensure your workforce is equipped with the first aid training to assist a sick or injured person. It also helps organizations comply with legal requirements, reduce workplace injuries and fatalities and promote a culture of safety and preparedness. The Papua New Guinea St John Ambulance provides training routinely in Port Moresby and Lae, and can facilitate training at any location in PNG, which makes it easy for workers to gain or maintain their first aid qualifications. St John’s first aid trainers come from a variety of backgrounds, enabling them to contribute real-life experiences to the training environment. Each course, based on St John Ambulance Australia’s training resources, goesthrough rigorous appraisal by training and health specialists including St John’s Papua New Guinea’s medical expert advisory panel - made up of some of the industry’s leading physicians and health professionals, who ultimately endorse the clinical training content components of the first aid courses. St John CEO Matt Cannon said, “this rigorous appraisal process gives clients the confidence of St John’s commitment to delivering the highest quality in training content and delivery in Papua New Guinea.” Workplace first aid courses cover a broad range of topics, including basic life support, wound care, bandaging, splinting, CPR and using an AED. Participants learn how to identify and manage different medical emergencies such as heart attacks, strokes, burns, fractures, and poisoning. Each training program is designed to be flexible and can be delivered on-site or at one of our training centres. If you want to ensure that your workplace is prepared to respond to emergencies, contact St John today to learn more about our workplace first aid training.