Business page

Less business red tape needed, says Barker

By BAEAU TAI
LESSER red tape allowing businesses to set up and operate quickly is what makes up a dynamic private sector.
This was stressed by Institute of National Affairs director Paul Barker as he summed up the day-long workshop on business opportunities at Hideaway Hotel during the week.
Mr Barker said some of the sound conditions investors would want to have are holding secure title to assets and being able to transfer those assets, accessing reliable public goods and services, enjoying sound law and order and being confident that the rules will not be constantly chopped and changed, or that officials will not demand a slice of the pie for themselves.
“These sound conditions are required both by large and small businesses … they can less afford to wait long periods or weather the storm of red tape, corruption or high security and insurance costs,” Mr Barker said.
He said the workshop agreed that easing conditions for operating businesses would also encourage the entry of informal sector operators into the formal sector.
However Mr Barker stressed the informal economy also needs some special services for savings and banking, market facilities, information and training – all tailor-fit for their needs.
“It was also recognised that not everyone will make a success of business.
“There are failures in the US, so there will be in PNG,” Mr Barker noted.
However, doing business would be easier and risk lesser if the
State would concentrate on providing suitable conditions and standards and focusing on their core responsibilities, like ensuring sound law and order, regularly maintained roads and ports and ensuring a corrupt-free bureaucracy and legal system.
With all these factors present, the costs and risks of businesses are minimised and chances for growth and sustainability enhanced,” he said.
“For example, whilst agricultural research and information is critical, why burden small copra growers with a continued heavy administrative fees paid to Kokonas Indastri Koporesen when the trading function is now privatised?” Mr Barker asked.
The workshop was hosted by the Consultative, Implementation and Monitoring Council (CIMC).