Businesses want sound policies

By GYNNIE KERO
THE business or private sector welcomes sound policies and improved governance and administration, economist Paul Barker says.
“If it delivered greater consistency and transparency, more reliable, affordable and efficient public goods and services, including transport, power and telecommunications services, reliable public procurement and land administration, reduced corruption and no exclusive trading monopolies or related uncertainty,” he added.
Barker, the executive director for Institute of National Affairs, was responding to a query by The National on a call for review of policies relating to the resource sector: “A routine and reliable process of policy dialogue with the private sector would be expected, with no hidden surprises.
“Most businesses (in the country) are ready and willing to work constructively with any government.
“Some businesses, unfortunately, do operate more in the dark corridors, striking back door deals and benefitting from cronyism and uncompetitive contracts.
“These businesses would not welcome more open and transparent government processes and policies. But the majority of small to very large corporations seek to operate in the open, are long term players in PNG, and welcome a stable business environment.
“Overseas companies from many jurisdictions, are also required to comply with their own domestic legislation over good corporate practices, even in their overseas operations, and it is also critical for them to be able to operate on a level playing field, without other businesses being able to undercut them through special or exclusive deal.
“So, so long as the policies are broadly sound and broadly business and investment friendly, follow sensible consultative processes, and so long as the broader economic and developmental environment, including law and order situation, progresses in a positive direction, the private sector, including major investors, would not be phased by political change in PNG.
“The country is not the easiest place to do business, due to high costs and relatively unreliability of many public goods and services (from roads to power and telecommunications, and law and order and corruption issues).
“These generally affect smaller businesses and some activities such as tourism more than the big enclave industries that tend to construct or provide their own infrastructure, and train their own staff.”
According to Barker, these large enterprises are valuable to PNG’s development in terms of providing expected steady revenue and foreign exchange, assuming steady commodity prices and sound investment conditions, including good negotiations on the Government’s part and agreements that provide adequate local benefits, in a timely manner.
The smaller businesses and investments, by foreign and domestic investors, are critical to PNG’s future, in terms of generating extensive employment and a more diverse and sustainable economy.