Extractive sector generates more income, says Alkan

A LARGE portion of the Government revenue is generated by the extractive industry, according to the Extractive Industry Transparency Initiative (EITI) National Secretariat head Lucas Alkan.
Alkan was part of a panel discussing the importance of EITI in the country on the FM100 radio talk-back show yesterday.
He said the considerable revenue generated warranted greater accountability and transparency on how the wealth was used.
“The EITI is actually a global initiative established by the PNG Government and is implemented by about 51 countries that are rich in mineral wealth, oil and gas.
“It is trying to bring global best practice into the extractive sector in terms of managing resources or revenue flows that are coming into the Government and how it is spent.
“So it is all to do with transparency and accountability while trying to track the revenue flows.
“With the Government budget, a substantial amount of money comes through and is driven by the extractive sector with more than 80 per cent of revenue.
“It is a lucrative industry and the Government needs to be accountable for the revenue that is being generated. I think it is well over due. This revenue is coming from nonrenewable sector and we need to better manage it.”
Newcrest PNG country manager Peter Aitsi  noted that there had been a shift from agriculture to the extractive sector in terms of revenue generation in recent years.
He said the PNG economy had been largely agricultural-based until “the onset of Panguna and later Ok Tedi and then Porgera”.
“Clearly we have moved to an extractive-based economy,” he said.