Do not meddle with businesses

I AM concerned with the Government’s recent comments after having reached an agreement with Total Oil.
The government is attempting to increase wealth for PNG by introducing production sharing arrangements for the oil and gas industry, where the companies would only be contractors to the government and even pipeline ownership.
Although the intention is honourable, it will be impossible to manage profitably.
PNG should observe the problems and chaos with the Venezuelan government, where there is open rebellion with the government, huge inflation and shortages of food supplies and mass migration as a result of the Venezuelan government taking over the oil and gas industry from private enterprise.
Is this the dream the government has for the people of PNG?
The years of experience with PNG Power, Air Niugini, Telikom – to name a few of the government’s business ventures as a shareholder, partner or outright owner-manager – have been a major disappointment with little financial return to the state, and in most cases huge debts.
The debts are so large, I doubt any foreign entity would ever consider buying any of these companies without significant concessions from the government, which would only result in considerable losses.
These state-owned companies continue to operate and managed by the government and make their losses even larger!
PNG has talked about privatisation for many years and the only successful one that I am aware of is the Papua New Guinea Banking Corporation (PNGBC) sale to BSP, where the Government had reasonable returns.
The sale or partial sale of all the other entities have constantly been deferred.
Maybe, it is jobs for the boys, but at our expense as taxpayers.
When will the Government learn that it does not have the capability to provide management, or be involved in a company or business?
Common sense would suggest that any form of taxation is better than the expense of ownership.
I have advocated for many years that major resources such as oil and gas, gold, copper, timber and fish should have a major tax overhaul that would assist the companies to perform profitably and delivers maximum returns to the government, provincial governments and landowners. We do not have to constantly follow the Australian example of company taxation and ought to have the ability to develop our own that fits our development as a nation.
Why should the government borrow huge amounts of money to buy shares or own all or any part of any company when the dividends will take years to repay those loans?
Is not the business of government to govern and not meddle or play with business?

Mal Smith-Kela