Govt threat to businesses

By DALE LUMA
THE Government is a threat to PNG businesses, according to the PNG Manufacturers Council.
Responding to queries on the manufacturing sector, chief executive Chey Scovell told The National that businesses have had to put their investment plans on hold due to the Government’s investment prospects which he described as “dire”.
“The greatest threat to local businesses at present continues to be the actions of the Government,” Scovell told The National.
“Governments are generally the largest customers in any economy in what and how they spend their money.
“The short and medium-term revenue prospects of our Marape-Steven Government are somewhat dire, and this has certainly put a stronghold sentiment to local businesses on their investment plans.
“PNG is perhaps a quarter way through the much-needed investment on infrastructure platforms such as roads, ports, airports, power, telecommunications, water and sanitation as well as health and education.
“Despite being cash strapped it (Government) has sent a signal to our strained local businesses to hang in there, with Government maintaining, as best it can, its focus on rehabilitating and building these vital linkages.”
On the issue of foreign exchange (FX) currency in the country, which some businesses said was at its worst, Scovell said the monetary policy of the BPNG (Bank of Papua New Guinea) had constrained many businesses, and the economy since 2014 and continued to do so.
He said BPNG nor BSP (Bank South Pacific) had really come out addressing the management or availability of foreign exchange which was a huge problem.
“They’ve always had a far softer commentary on this issue than the businesses feeling the pinch.
“We also continue to maintain our concerns on the fairness in the banking sector.
“The numbers have not lied to us, and what they have shown is that since 2014, BSP has had an advantage over all other licensed financial institutions in accessing the limited FX.”