Call for change in resource sector laws

ONE of the founding fathers of the nation believes in changing the colonial laws governing the resource sector.
New Ireland Governor and former prime minister Sir Julius Chan, who has been fighting for fair and equal benefit sharing and ownership of resources in the country, said now was the time to take back the country.
He said for the good of the nation, it was time to take back the resources and give it back to the people by legislating resource benefit laws.
Sir Julius said Papua New Guinea exported more than K30 billion worth of resources (in oil, gas, copper, gold, nickel and the agriculture and fisheries) each year but only a small percentage of that remained in the country.
He said of the K30 billion, only about K5 billion was retained in the country through taxes, royalties and equities while the rest was taken out unlike other countries who had a greater return from their resources.
“Many countries get almost half the value of their resources from what they export so we must change,” he said.
“We must change our laws and we must take back the country back as the prime minister said.” He said among them was the laws governing the resource sector that needed to be changed to take back what rightfully belonged to the people and the country.
Sir Julius, debating on the economic status of the country, said the landowner rights and resources were given away when development licences are issued.
He said landowners and government paid for the equity from their share and that needed to change for greater benefits to flow back to the people.
“The landowners and provincial governments are given two per cent equity and development levies yet the companies get that back through tax rebates so in fact the companies or developers pay nothing, the people are paying for their own royalties, the company is paying nothing.”
Sir Julius said the country was in an economic crisis.
“Over the last five years, we have not been true to ourselves,” he said.
“We have been over estimating our budgets revenues and underestimated our expenditures so each years we have ended up with a far higher budget deficit.
“We need to admit we have a problem.”