Govt monitors prices

 TREASURER Patrick Pruaitch has re-assured the country that the Government is fully aware of the current developments in the world commodities markets and is closely monitoring the movements in prices.

Responding to media reports on falling commodity prices, Pruaitch said it was too early to be making any adjustments to the 2015 Budget.

“At this stage, there is no need to panic. The Government is fully aware of the situation and is looking ahead at the options available should the need to adjust arise.

“The O’Neill Government is monitoring the developments very closely and is fully aware of the implications the falls in prices will have on the economy, particularly on government revenues,” he said.

Pruaitch assured the people of Papua New Guinea that the Government would take all necessary measures to ensure that the adverse movements in the revenue outlook was contained and that the 2015 Budget remained on track for the stated fiscal targets.

“While the oil prices have fallen by 36.6 per cent since the 2015 Budget, copper and gold prices remain on track. 

“They have only declined by 6.1 and 7.2 per cent respectively since the 2015 Budget, contrary to the 40 per cent price decline as claimed by the opposition leader.”

For the LNG exports, the Treasurer stated that while world LNG prices depend and trend closely to the world oil prices, much of the PNG LNG exports and prices was locked in the long term forwards sales contracts.”

He noted that the Opposition leader’s statements were extremely consistent with the former head of the Australian advisory team during Polye’s tenure in Vulupindi Haus.  

“In some instances it is difficult to work out whether these thoughts are Polye’s or those of this adviser which is receiving a lot of air time in the mainstream and social media.

“For my department, we are well aware of the scenario and will take the necessary measures to ensure that external impacts are mitigated as much as possible.”