ENB business arm makes loss

Islands, Normal

The National, Tuesday June 18th, 2013

 the business arm of the East New Britain provincial government has reported a loss caused by its attempts to subsidise the current low commodity prices in the province.

Chairman of the East New Britain Development Corporation (ENBDC) group of companies William Lamur said recently the company had paid nearly K800,000 over 12 months to subsidise the price of copra in the province.

He said it had been forecast that the current low prices would remain until the first and second quarter of next year and ENBDC was providing support to ensure prices were reasonable for the farmers

Lamur said the current low prices were being attributed to the drop in the value of the euro and the surplus of oil commodity products on the market. The company’s subsidiary brings in around K70 million to K100 million on average from copra revenue alone, but this has dropped to between K14 million K15 million due to low commodity prices. 

Recently, funding assistance was given by the provincial government as part of its commodity price support.

The first part of a K200,000 funding support had been presented to the ENBDC, while the balance will be paid this week.

Lamur, in commending the provincial government’s foresight, said the province was all about agriculture and culture.

He said agriculture was one sector where everyone was involved and fed other sectors such as tourism.

Lamur thanked the provincial government and administration for the commodity price support funding submission to the National Government, but asked why it was taking the Government so long to respond.

He asked if the proposed K7 milloin to K8 million commodity price subsidy from the National Government was forthcoming.