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Riches in our land
Prosperity prospects
for PNG rests in how the country frees up customary land for
development purposes. FRANK KOLMA writes.
TONY Bomar Obukai put his first
coffee tree down in 1983 on a 18 hectare plot of his traditional
land near Minj town in the Western Highlands Province.
He did this while serving as a Correctional Institutions Services
officer.
In 1988 Obukai retired from the Correctional Institutions Services
after two full decades of faithful service.
Since then the Taukanim clansman of the Konumbka tribe in Minj,
Western Highlands Province, has turned fully to his coffee
plantation to cater for his family.
In 1993 he applied for and after surveys over his 18 hectare plot,
Obukai was given a title over his land.
Over the years he noticed that help was not always forth coming
from family and friends. He saw that one person could not do it
all.
"I saw that the plantation was getting run down as I worked," he
said at the weekend.
"I had no capital to kill weeds or for fertilizer.
"I am 64 years of age. My strength is gone."
Help came from an unexpected source. He heard that a company
called Pacific Arabica Coffee was entering into joint venture
arrangements with willing applicants to rehabilitate coffee
plantations.
The important precondition was that the plantation owner(s) had to
have a title over the land.
Armed with his title, Mr Obukai, applied.
Some twenty kilometers distant west of Obukai's plantation former
councilor 45 year old Bare Aimbal, a Sikai tribesman of Kudjip
faced a far more difficult proposition.
The bush had virtually reclaimed all 65 hectares of his former
Komne Coffee Plantation.
The plantation, by the Wahgi River, had been managed formerly by a
management company and later by Wahgi Mek Plantations. There had
been rich pickings for Aimbal and his tribesman but after eight
years of neglect reclaiming the plantation seemed an impossible
task.
Fortunately, Aimbal had a secure title over his plantation.
He also applied when he heard of the plantation rehabilitation
scheme.
Obukai and Aimbal's applications were successful.
Today Obukai's coffee berries are so thick and plentiful they are
bending the trees almost down to the ground.
Aimbal's plantation, now named after himself, has been cleared
completely. Old trees have been pruned and a nursery has been
established within the plantation to provide seedlings.
Theirs are among twenty disused and run down plantations
throughout the Western Highlands which have been totally
rehabilitated and are facing their first full crop by 2008.
Over 800 hectares of coffee have been recovered under the scheme.
By the estimate of Wan Tindipa, a field manager of one of the
management companies a further 2,000 hectares of coffee plantation
are yet to be recovered in the Western Highlands alone.
Under the scheme landowners who have plots of land or planted
areas which have gone into disuse are required to survey their
land and get titles over them.
Following this they are required to register a company which would
then go into a joint venture arrangement with a management
company.
Ownership is split 49 per cent title holder and 51 per cent
management company. The management company pays for all
improvement and rehabilitation costs upfront.
The contract is good for five years.
Under the scheme 20 plantations have already been recovered in the
Western Highlands. It is expected a further 25 to 30 plantations
are currently being looked at for rehabilitation.
The plan is to plant or recover 1,000 hectares per year. In the
first year that target has been achieved with 1,200 hectares
recovered or planted so far.
It is an ambitious plan spurred to fruition by the Western
Highlands Provincial Government.
It is a burning and almost personal agenda that Governor Paias
Wingti has been pursuing for a long time.
By his estimation every person in PNG is a wealthy man on the
basis of land ownership alone.
"If land were valued, every person in this country would easily be
a rich man," he likes to say.
It is easy to see why.
Papua New Guinea's total land area is some 460,000 square
kilometers. Divided equally, each of Papua New Guinea's 5.2
million people would own sufficient land to put a small plantation
on it with land to spare for a home and food gardens.
Unfortunately, 97 per cent of the land in the country is valueless
because it remains under customary land ownership.
As long as the land remains under customary ownership there is no
value for them. They cannot be transacted, transferred or
mortgaged under modern financial arrangements.
Mr Wingti's administration is advancing a scheme presently to have
voluntary registration of land.
With elections around the corner, it is a tremendous risk and Mr
Wingti, more than anybody else, knows it.
It was the land mobilization issue which put paid to a robust
political career in 1997 when he was voted out of office along
with the other strong proponent of land registration, Sir Julius
Chan.
Still Mr Wingti is convinced that any prosperity prospects for PNG
rests in how the country frees up customary land for development
purposes.
"I am asking for people to volunteer to register their land," he
said last week. "This is not compulsory. Only those people who
want to can volunteer to enter the scheme.
"We can all sit on our land until it claims our body or we can add
value to our land.
"We can add value by surveying the land and getting a title over
it. The population is growing but the land is not.
"Every Papua New Guinean who has land should convert it into
equity. He can then use the land (equity) as his contribution to a
business venture with investors who have management experience and
the finance.
Mr Wingti has started with the rehabilitation of old plantations
and the response from the community is so positive and the results
so encouraging that the Coffee Industry Board at its last meeting
raised the issue and commended the Western Highlands Government
for a great job.
Getting the people to venture out and register their land has been
one giant hurdle.
The other is getting them to now stop interfering with the
management of their investment.
"We must have a mental rehabilitation of the farmer as well as
rehabilitation of his physical farm," Mr Wingti says.
"Before he can register his land and enter the scheme, he must
accept that he can not interfere in the management of his farm.
"Let him collect his director's fees and his dividends and stick
his fingers out of the day to day running of the business.
"He must accept that he cannot go running to the company each time
he has social obligations. We have to stop the big man ego
mentality and allow good management to run our business. Only then
will we succeed. Management is the key."
Under the scheme 50 per cent of all profits is to be reinvested in
blue chip stocks to protect farmers against periods of low prices.
"Let him collect his director's fees monthly and his dividends and
stick his fingers out of the day to day running of the business.
"He must accept that he cannot go running to the company each time
he has social obligations. We have to stop the big man ego
mentality and allow good management to run our business. Only then
will we succeed. If we interfere with management, our business
will flop.
"You can have land. You can have money but it will not work unless
there is good and competent management with a proven track
record."
Under the scheme 50 per cent of all profits will be reinvested in
blue chip stock to protect farmers against periods of low prices.
The other 50 per cent is to be split between the landowner and the
management company.
Mr Wingti said, blue chip stocks are good because they will return
consistent dividends, there will be growth in the value of shares
and they are easy to liquidate (cash) in the event of low coffee
prices.
The scheme has immediately increased employment by about 300
people and is bound to increase.
At the same time it has generated some excitement in rural
economies.
Mr Wingti has a dream that were this model to be applied
nationally, the agricultural output of PNG would be doubled within
three years.
And where the model to be consistently applied, progress and
prosperity would result as a result of more and more land coming
into the financial scheme of things.
He wants to see the model duplicated with all tree crops such as
cocoa and coconut plantations most of which are old and run down.
In the Western Highlands a similar scheme is being hatched to
produce and market vegetables. Good managers are being sought to
take charge of the vegetable production and marketing scheme.
He likes to say: "Our future is in our land. Our wealth is in our
land. The difference is in our heads."
Weekender information, inquiries and contributions, email
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