Agri-sector faces threat

THE growing oil palm industry can create more jobs if the government and civil service adapt to its fundamental changes, a company says.
In a recent presentation on prospects for job creation in the agriculture sector, the New Britain Palm Oil Ltd said a public sector role to facilitate creation of an environment for business investment and growth was lacking.
It said that had not occurred in the late 1960s, 70s and 80s and which gave birth to the palm oil industry and it was significant that there had been no viable large-scale ‘green-field’ agricultural development.
It stressed that most potential new jobs were likely to be created in rural areas and the investment and public sector services needed to adjust to this.
As an example, the investment in the palm oil industry began with a US$50 million (K111.39 million) loan and a private sector-Government development partnership in the Hoskins area of West New Britain, meaning, this initial investment yielded over K740 million per year (2010) in Hoskins alone.
This translated to about K5.3 million per fortnight paid to small holder growers in the Hoskins-Kimbe area for salaries, goods and services, supplies, royalties, and about
K13.1 million per fortnight was being channelled into the Hoskins-Kimbe local economy.
Higher production costs, increased minimum wage putting pressure on rural sector, significant delays in approvals for recruitment of overseas specialists, long delays in approving land title and environmental permits, damaging human resources, losses to LNG-related activities, impact of HIV/AIDS on productivity were major strategic threats raised.