Businesses waiting on projects

By DALE LUMA
BUSINESSES are interested in the updates on the country’s resource projects as it will give them direction on future investments, says Bank South Pacific (BSP) chief executive officer Robin Fleming.
Responding to budget-related queries from The National, Fleming said the progress of future and current projects such as the Papua LNG, Wafi-Golpu and the Porgera mine would give businesses clarity.
“Many businesses are interested in announcements on key projects such as Papua LNG, Wafi-Golpu and the Porgera mine as they are in the budget specifics as those projects will give businesses clarity on where they should be focusing their future investments,” Fleming said.
“Any government budget is focused on not just specific revenue generation and expenditure required to support delivery of government services but equally, the policies that support the generation of future revenues, improving the infrastructure that enables business to grow and policies that facilitate investment.”
Fleming said there had been no discussion related to banking levies or a bank tax and the expectation is that there will be no changes to the existing regime.
An increase in banking levies was suggested during the passing of the 2020 National Budget which was not welcomed by the banks and their shareholders as any increase will affect returns to shareholders.
Credit Corporation PNG chief executive officer Peter Aitsi told The National this week: “As indicated by Government, it is important to progress the major resource projects such as P’Nyang and Wafi Golpu.
“The inflow of investments from these projects should generate flow through benefits for businesses generally and provide a stimulus to further support Government’s efforts to grow the SMEs (small to medium enterprises) and MSME (micro small to medium enterprise) sectors.”