Freight subsidy plan in stimulus package: MP

THE Government plans to introduce a freight subsidy for sea and air as part of its economic stimulus package, a cabinet minister says.
Minister for National Planning and Monitoring Sam Basil said the department was in discussions to effect and ensure sustained sea and air transport services were maintained initially out of Lae – the logical and geographical centre of PNG.
“The discussions are being held under emergency intervention conditions with established service providers with expertise and experience in shipping and airline services,” Basil said.
He confirmed that state of emergency controller David Manning had issued a directive to his department, especially on the fresh food and vegetable freight, already.
Basil said his department had taken the initiative because of multiple compounding impacts along the fresh food and vegetables supply chain from the village producers needing cash income to the buyers and land transport providers to the shipping service providers as well as re-sellers in Port Moresby, who meet city dwellers’ need for food.
Extracts of the directive addressed to National Planning and Monitoring secretary Koney Samuel stated: “You are hereby directed to initiate strategic intervention to stem or subsidise this loss of business, subsequent job losses, scarcity resulting in higher food prices and the overall socioeconomic impact.”
Basil said based on this and concerns raised by a number of transport service providers, he has directed Samuel to expedite documentation to release funds from the development budget transport freight subsidy component.
A number of memorandum of understandings and service level agreements are being worked on and will be announced soon as each of these are concluded before funding is made available.
Basil called on village vegetable producers and small entrepreneurs – buyers and land transport providers – to be ready to make use of the services to sustain income earning and help supply vegetables to city dwellers.