| Business |
Government must set priorities
The first meeting of the 8th
Parliament saw the National Alliance-led coalition installed as
the new government. Sir Michael Somare remains Prime Minister
after five years that have arguably been the best period, in
development terms, since independence.
But there is no reason for complacency in the next five years. The
government needs to build on its recent record to ensure that far
greater numbers of the country’s six million people are lifted out
of subsistence lifestyles and poverty.
The “windfall” revenues it has been reaping from high commodity
prices have to be put to the best use possible to provide a basis
for more rapid economic growth and for broad-based national and
rural development.
Infrastructure development remains a key priority. The problematic
Highlands Highway needs to be maintained and not be subject to
constant disruptions, possibly with consideration given to
development of some alternate routes.
Roads in rural areas and other remote areas need to be given
attention so that farmers throughout the country have the means to
transport coffee and copra to urban centres for domestic
consumption or for export markets.
Other areas include transportation on waterways and for more
reliable aviation services both domestically and internationally,
keeping in mind that the bulk of the population is concentrated in
the Highlands.
It has yet to be seen if the government’s District Service
Improvement Programme will be effective in improving
infrastructure at a local level, and getting these integrated into
broader regional and national networks.
Another priority area the previous government had promised to pay
attention to is the long-suffering agriculture sector. It was
close to its final days in office that the government unraveled
its National Agricultural Development Programme. Implementation
has barely begun.
Nevertheless, the government has promised that a budget allocation
of K100 million annually will be utilised to promote various
agricultural activities. This will encompass commercial, large
scale developments as well as activities to nurture and assist
smallholders, the backbone of the rural economy.
The government needs to reactivate extension services that will
provide assistance and advice to people in rural areas, helping
them to boost productivity and to grow new crops that could
improve their access to cash as well as provide the basis for
improved food consumption.
Initiatives will also need to be undertaken, possibly by
organisations such as National Agriculture Research Institute, to
develop commercial activities that can be processed and marketed
or promoted in various ways.
In many remote areas where there is no access to electricity,
people may need to be taught new ways of preserving foodstuff for
later consumption, as a means to improve cash incomes or in the
face of natural disasters.
This would be a good time to review the roles and successes of
various commodity boards and groups such as the Rural Industries
Council. Are they providing a useful role? Does their existence
just become a burden on smallholders who grow copra, coffee, cocoa
and other crops?
These questions need to be asked in view of the woeful performance
of the agricultural sector over many years. Take for example
coffee production. Output last year at 52,300 tonnes was the
lowest since 2001. In 1999, it was as high as 79,200 tonnes, a
level that has not been reached since. It beggars belief that poor
roads are the only reason for this unsatisfactory performance.
In recent years, there has been a major cocoa replanting programme
underway in Bougainville. In spite of this production, last year
was estimated at 44,000 tonnes, just 6,000 tonnes higher than in
2000 or 2001. The picture for copra production is worse.
The question needs to be seriously considered – are the
agricultural commodity boards a burden or a hindrance to the
sector’s growth? What about the related research activities that
is being undertaken?
Hopefully, the increased funding that has been promised will be
used for maximum impact to bolster production as well as
productivity in this vital area on which some 85% of the
population depend.
There is significant scope for most subsistence farmers to also be
breeding chickens and other farm animals for their own consumption
and for sale in local and urban markets. Cattle farming has been
initiated by companies such as New Britain Palm Oil and Ramu Sugar
shows the is potential although people in rural areas will
possibly need technical and managerial assistance to make
development of a livestock industry a greater success.
 
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