Fishing operations scaled down

By PETER ESILA
MOST companies in the fisheries industry have already scaled down operations due to cost of business, PNG Fisheries Industry Association (FIA) chairman Sylvester Pokajam says.
“Most members of the fishing and onshore processing in PNG have already scaled down (operations),” he said.
Apart other members, FIA comprises 23 companies and operators in the tuna industry (both fishing and shore-based processors).
Pokajam confirmed that PNG’s territorial waters and exclusive economic zone was still full of stock.
“Harvest is not low, fish are in PNG waters right now,” he said.
The problem is because of high vessel day scheme fees.”
Pokajam said company RD Fishing stopped fishing and 30 boats were reflagged to other PNA (Parties to Nauru Agreement) countries. The PNA’s eight countries include Palau, Federated States of Micronesia, Marshall Islands, Kiribati, Nauru, Tuvalu, the Solomon Islands and PNG.
“RD and Majestic Seafood Corporation Ltd are scaling down because they don’t have vessels to fish to supply to their plants.”
Pokajam said the current state of the economy was also contributing to the drop in activity.
“The PNG economy is definitely in a very bad state right now and looks like it will continue.”
Pokajam said PNG companies continued to face hard times.
“Company tax rates are the highest in the world, GST (goods and services tax) contributes to high cost of imported goods and high cost of manufactured goods,” he said.
“All primary produce in terms of catching fish, picking coffee, cocoa, copra, oil palm, rubber and others – a levy is imposed on them for every catch and harvesting.”
Pokajam said high cost of fuel, and even a reliable and cheap source of water was becoming a luxury which meant more expenses for companies.
“PNG companies are not allowed to open foreign currency accounts in PNG, it is too difficult to remit foreign currencies offshore,” he said.
“My outlook for the PNG economy is bleak and is already in recession and insolvent.
The total revenue generated annually by PNG is insufficient to meet the Government’s annual budget expenditure.
This attracts inflation and reduces the Kina’s buying power.
“The only assurance I can think of is the Government must encourage downstream processing and install an export driven economic recovery strategy.