Firms toughing it out, says chamber

By PETER ESILA
PORT Moresby Chamber of Commerce and Industry president Rio Fiocco says businesses are in survival mode, and waiting patiently for big projects like the Papua LNG and even the Porgera mine to start or head into full production in order to boost the economy.
“Business confidence is very low at the moment when big projects are delayed,” he said.
“Costs are continuing to rise and we have seen the fuel crisis.
“There are a lot of businesses doing it very tough.
“It is still a challenging environment now, the delay with Papua LNG is a real blow to investor confidence and the ongoing fuel saga.
“All of these are a concern to businesses.
“There is no fuel in some centres and PNG Power is unable to provide power, businesses that have been here for many years are resilient, they are used to these challenges.
“The ongoing issue of foreign exchange issue means that business wait longer to get their orders to bring in new stock.
“Those businesses that have been here for many years are resilient, they are used to these challenges,” Fiocco said.
He said the Jan 10 civil unrest brought a new wave of challenges.
“You also have other companies who are suppliers to these businesses affected by Jan 10, City Pharmacy Limited have made it clear that they have to cut back on the orders from the farmers, in the case of the other supermarkets that were burnt down, there are other various companies that have supplied them with goods and those companies are waiting for payments, so there is a flow on effect on the suppliers of those shops and supermarkets.
“Banks are banking these customers who no longer have shops or supermarkets to operate from.
“How can they repay their loans when they do not have the business to operate anymore?
“Insurance costs are also going up after the Jan 10 riots, insurance companies are repricing risks on all their customers, so as those insurances become up for renewal, we are finding that those prices are going up significantly.
“For fire insurance, you are seeing increase by more than 10 per cent, in the case of riots and civil commotion cover, that insurance cost has gone up significantly,” he said.