Donigi: A win-win situation for all

A CHANGE in ownership of mineral and hydrocarbon wealth from the state to landowning groups will be a “win-win” situation for all, a proponent of regime change said this week.
Prominent lawyer Peter Donigi said the Chamber of Mines was purveying “scare tactics and engaging in misrepresentation of the Boka Konda Bills”.
He was responding to the chamber and Petroleum’s stand against moves to change ownership of the mineral and resources from the state to individual land-owning groups.
PNG is enjoying the biggest expansion and excitement in the industries than at any other time in the past but these can come tumbling down if there is a regime change, the argument runs.
Donigi said in response: “They do not want us to preserve our customary law, which has served us since time immemorial.
“Mr Anderson (Greg Anderson, executive officer of the Chamber of Mining and Petroleum) used to be a government officer who influenced the current regime and is now defending the regime from outside government.
“As a former government officer he, and others like him, crea­ted a regime that benefited foreign capital, a regime that brings in the idea of horizontal boundaries that do not exist in our customary law.
“Customary law only recognises vertical boundaries to the centre of the earth in relation to ownership of land.
“They created a regime that will foster fighting between our people, while they benefit.
“His personal credibility is at stake. He is engaging in the tactics of projecting fear – whose fear – it is his and foreign capital.
In the end he will lose – and it will not be too long in coming.
“The strength of this nation depends on how we manage our resources for the benefit of landowners – not on how we manage our resources for the benefit of foreign capital.
“Why would you want to retain a regime that says that you have to go overseas to borrow money to buy back a percentage of what you already own?
“When you borrow money to buy back what you already own, you create a liability for our future generations and transfer capi­tal which could be better spent internally, overseas.
“It fosters an outcome of keeping the foreign capital rich and keeping landowners poor.
“This is stupidity at its highest level.
“Kondra Bills say that the national government will actually make more money than under current regime through taxation without having to borrow money to pay for its equity.
“The provincial governments will get 4% of the stake and local level governments will be guaranteed 1%. 
“In fact, foreign companies take home pay after taxes will be more than 29% and landowners will earn 28% after taxes and the government will get close to 40% based on 30% corporate tax and 17% withholding taxes.
“The government will be the biggest winner.
“This is a win-win outcome not the current win-lose outcome.”