Increase exports: Council

THE Manufacturers’ Council says exports need to be increased and earnings should be remitted to the country.
Council chief executive officer Chey Scovell highlighted this while noting the concern over lack of access to foreign exchange (forex) in the country.
Scovell said: “Another significant concern has been the manipulation of the financial services market. Prior to the central bank intervention, the commercial banks access to Fx (forex) was directly correlated to the size of the demand they had on their books.
“If bank X had 40 per cent of the order book, and bank Y, had 20 per cent, they were able to purchase the 40 per cent and 20 per cent respectively.
“Since the intervention (by central bank), a significantly disproportional amount of Fx has been given to BSP.
“No one wants to look at this. Businesses and general public alike have had little choice but to leave other banks and join BSP if they need to get Fx.
“This hasn’t done business any favours. It hasn’t helped our currency find a true value and time will tell that it will do PNG no favours to have either by design or ignorance manipulate our financial market.
“Is it not staggering that we’ve had many years now of borrowing, an influx of multinationals, mainly foreign SOEs, bringing in thousands of workers, but they aren’t bringing in any of the dollars?
“Our Government borrows hundreds of millions in US dollars, firms come into PNG and conduct business but no money seems to come. Yes, they have to pay for materials, but they also have to pay for the GST, the duties, the salaries and wages, they should also be registered in PNG and paying taxes on profits for their work. The sole source of these SOE funds is from US dollar loans.”