Economist: Recent deals, talks put out positive economic messages

Business

THERE are more positive economic messages in the wind right now, Institute of National Affairs executive director Paul Barker says.
“The news from Total, Barrick and the Government over the Papua LNG project is positive for the economy in terms of providing some boost in confidence, albeit that action on the ground will not to be immediate,” he told The National.
“Finally, there’s more common ground between the Government and some of the major developers and the largely unnecessary disruptions are being put aside.
“Commitments with Barrick on Porgera, and with Total over Papua LNG will provide some boost to business confidence, and should see restoration and operations commence at Porgera during 2021 and restored production and exports. The recent fiscal stability agreement and the new agreement between the Government and Total on project terms and timelines, should see some the restoration of the disbanded project team and other preparatory work, albeit that the task of financing and any construction and development remains well into the future.”
Barker said that it was also positive that some commodity prices had been improving, including several of PNG’s extractive and agricultural products; oil and gas; to gold and some agricultural crops; and, from vegetable oils to coffee, which was just starting what looked likely to be a good harvest.
“This will provide a useful reprieve, including for the majority who depend upon the agriculture sector, and will also work its way through in improved revenue to the State in due course. PNG cannot simply await improved prices for enhanced incomes,” he said.
“It needs to be able to invest and diversify its economy, build-up its human capital, both skills and work discipline and standards, stop driving prices up for businesses and the cost of living for households by disrupting markets, or signing up over-priced infrastructure projects, including for power.”