A CONTRIBUTING factor to the weakness of the Papua New Guinea economy is related to mishandling of the resources sector, Aitape-Lumi MP and leader of National Alliance Party Patrick Pruaitch says.
Debating the 2022 Budget in Parliament, Pruaitch said Treasurer Ian Ling-Stuckey’s task would have been less onerous if Porgera had not shut down last April with negotiations continuing until a new agreement was reached.
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| PNG Government's Mishandling of resources contributing to failed economy : Pruaitch |
The former treasurer said it seemed that over the past decade, not enough attention had been paid to the policy environment for jobs creation.
“The Porgera shutdown had a major impact on the community in Porgera, which has grown into one of the nation’s largest townships,” Pruaitch said.
“The multiplier impacts of the shutdown has been felt by companies in Lae and in Port Moresby.
“Along with the Coronavirus (Covid-19), this has contributed to last year’s sharp fall in formal sector employment in the nation’s capital.
“The Central Bank reported that formal sector employment in the National Capital District fell 5.6 per cent last year, with Bank of Papua New Guinea index showing National Capital District employment was at the lowest level in 10 years – since 2010.
“Ongoing Porgera negotiations appear to be progressing at a snail’s pace.
“Several start-up deadlines have come and gone.
“April is being touted as the next scheduled re-opening, but negotiations between Government and the developer have yet to be concluded. It should be re-called that soon after the Porgera shutdown, other resource sector companies were forced to retrench their workers, among them, Papua LNG, P’nyang and Wafi-Golpu.
“Bank of Papua New Guinea’s December quarterly said mineral sector employment fell by 28.8 per cent last year with 27.7 per cent of these jobs lost in the September quarter.”
Statement/TheNational/PacificMiningWatch
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