Businesses ‘getting desperate’

BUSINESSES affected by the Jan 10 civil unrest are getting very desperate as staff employee retention for some has become not sustainable, according to the PNG Chamber of Commerce and Industry.
Chamber president Ian Tarutia said: “Time has run out.”
Tarutia said the Business Coalition on March 4 responded to the National Executive Council decision to approve relief assistance for affected businesses.
“The Business Coalition response welcomed the announcement of a wage support relief to the tune of K14 million,” he said.
“The Business Coalition also suggested the establishment and governance oversight of a Trust Account – The Re-Build Port Moresby Business Trust Account – to manage the vetting, validation and payment of wage support claims.”
Tarutia said that as of yesterday, he understood that the establishment of the Trust Fund was still “work in progress”.
“The State Solicitor has yet to clear legalities, however we have been assured, this is priority,” Tarutia said.
He said the delay in the release of the rebuild support package funds added to the cash-flow pressures on all businesses.
“We wish to commence the drawdown of the employment support package as soon as possible,” he said.
On March 18, he said the Business Coalition submitted a second response to the Cabinet decision, acknowledging the Government’s response to help rebuild damaged properties and buy store goods through soft loans at 2.5 per cent.
“Business response is no loans,” Tarutia said.
“Businesses want grants. However if grants are not an option, then the loans should be interest-free.
“If it is repaid after five years (principal only), then concessional rates apply and must be guaranteed by the State.
“On the wage support, the Business Coalition is still waiting for the promised funds.”