Float kina, Polye says

 By SHIRLEY MAULUDU

THE kina must be refloated so commodities can again earn hard currency for the country, Opposition leader Don Polye said. 

He said with the fixing of the exchange rate, small growers and farmers have had their earnings placed under a huge threat. 

“That fixing should be removed and allow the kina to be refloated and allow the market forces to decide. 

“We need the export industry of PNG to export coffee, kaukau, all these other grassroots’ commodities that goes out to the export market and let’s earn the hard currency.

“You will find that the exporters are losing money because the kina has been temporarily fixed against the US dollar,” Polye said during a media briefing on Sunday. 

“If all this pegging is to continue, what I’m seeing is that our foreign reserves in the country will fall considerably in 2015.” 

The Hoskins Oil Palm Growers Association previously stated that fixing of exchange rate was having a negative effect on the growers’ earnings.

According to a statement, the association had stated that: “Lack of foresight and consultation by government has created a very negative implication on our agricultural industries.”

The association unanimously resolved in one of their meetings that the national government urgently review the recent valuation of the kina against the US dollar.

New Britain Palm Oil (NBPOL) chief executive Nick Thompson had supported concerns raised by the farmers.

“The issues raised by the smallholders are absolutely valid. This is a very damaging move to fix exchange rates at such high levels, not only oil palm growers are suffering as a result but, copra, cocoa, coffee, spice and every other export crop is also suffering.

“Unfortunately the rural sector has suffered from a total lack of consultation on the effects of this highly damaging shift in policy,” Thompson had said.