Government, companies building business relations vital

Business

THE government should consider contractual agreements with companies in the extractive sector as it will have a long lasting effect on the country’s credibility in doing business.
Bank South Pacific chief executive Robin Fleming was responding to a question on the need for companies in the extractive sector to bring in offshore foreign currency.
“There are two issues,” Fleming said.
“One is that the economic or current foreign exchange situation should see more US dollars come back into the country.
“Our view is the same as the Bank of Papua New Guinea – that everyone needs to operate within their guidelines.
“The other factor is that when these companies undertook significant and substantial investments in Papua New Guinea, there were legal terms and agreements, the fiscal terms, the mining and gas agreements which were achieved at that time.
“Any government has to balance the need for an immediate short-term fix for the foreign exchange versus the desire to preserve the integrity of the country to abide by formal agreements.”
Fleming said the handling of current projects by the government would set a standard for future projects.

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