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Business |
Our business climate improving: Sir
Rabbie
PNG govt removing
more investment hurdles, Treasurer tells Australia
By BAEAU TAI
THE Government should create conducive business environment where
market forces determine the successful players and where certainty
of business environment encourages investment.
As well, the Government should not pick winners.
This was the gist of a remark delivered by Treasury Minister Sir
Rabbie Namaliu at the 23rd Australia-Papua New Guinea business
forum in Cairns yesterday.
Sir Rabbie spoke on the country’s economy and business
environment.
He said attracting greater private sector investment was essential
to see more income-earning opportunities for the rural poor.
Sir Rabbie stressed that increasing tax revenue collection is
necessary to fund priority public expenditures like roads and to
afford better social services like education and health.
Sir Rabbie offered an insight into the ongoing efforts of PNG
Government to put in place a business environment that attracts
and rewards investors.
Some of them were the review into current PNG’s tariff policies
and setting up of the national working group that looked at
removing business impediments.
“The economy has turned to positive growth, with this year
expected to mark the fourth consecutive year of economic growth
outpacing that of the population growth,” Sir Rabbie said.
He said real gross domestic product (GDP) was projected to be 4.5%
this year with the government’s focus on sectors like agriculture,
forestry and fisheries industries.
Substantial investment in the rehabilitation of transport and
airport infrastructure and construction activities for major
resource projects, including the Ramu Nickel mine and potential
liquefied gas (LNG) projects, are expected to further contribute
to development.
Noting some of the economic indicators showing an improvement in
the economy, Sir Rabbie said the Government had successfully
turned the budget position from deficit of K450 million (3.9% of
GDP) in 2002.
The higher-than-expected mineral tax receipts last year enabled
the Government to introduce two supplementary budgets totalling
K1.3 billion.
These were directed to development expenditures, he said.
Sir Rabbie said embedding macro-economic stability, the
introduction of competition, effective regulation, the review of
economically-important sectors and anti-corruption measures were
part of the Government’s efforts to promote long-term private
investment in PNG.
“I expect more evidence of the positive effects of structural
reform, competition policy and sound regulatory frameworks in the
near future,” he said.
He noted the continuing business and investment links between
Australia and PNG had survived political and personality changes
in the leadership of both countries.
“The business links remain a vital cog in the bilateral
relationship and we are strongly committed to this relationship,”
he said.
“PNG offers a much more stable macroeconomic environment because
the Government has embedded good practice in economic management,”
Sir Rabbie concluded.
 
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