New taxation measures good, but not the only way

ALLOW me to express my opinion about the way forward in wading off the pertaining high levels of public debt in the country.
It is praiseworthy for the national government to propose new Incentive Based Public Policies particularly the new taxation measures targeting the manufacturing, retail, import, export and forestry sectors.
However, it is a stubborn thing as well as a defiance of public interest for the government to vehemently push for the new taxation measures amid the wider industrial refutes and dissatisfactions.
At this juncture, the government has to somehow identify, select and implement alternative Incentive Based Public Policies to ensure that its primary objective to prop up government revenues to offset the ever increasing public debt is effectively and efficiently accomplished.
Although this sounds impossible in the current, depressed global economic environment, focus of the national government should be on identifying, selecting and implementing alternative Incentive Based Public Policies.
This is like moving to Option B provided Option A is likely to be unsuccessful on the basis of a benefit cost analysis.
In fact the PNG economy is vulnerable to a public debt crisis as pointed out by a higher public debt level, exposure to and higher dependence on global commodity price movements, a deteriorating credit rating as reflected on Standard & Poor’s and the World Bank’s Creditworthiness Ratings, and the stress exerted by the large upcoming events like the 2017 National Election and the 2018 Apec Summit.
Despite the presence of these economic vulnerabilities, the national government can still identify, select and implement an alternative Incentive Based Public Policy particularly in the forestry sector in light of the increase in the demand for forest products on the domestic as well as the foreign markets.
In the meantime, the forestry sector in the country is booming with optimism that is triggered by a higher degree of scarcity of forest products on current markets due to population and construction booms, higher preference for forest products over their substitutes, better management and technical expertise, forest resource adequacy and the introduction and rollout of Property Right Laws and Policies.
In light of these trends, the government should embark on effecting the Customary Land Registration Act (CLRA) and rollout the Customary Land Registration Exercise (CLRE) on a nationwide scale to boost sectoral efficiencies.
The national government should clearly ascertain the ownership forest resource stocks through proper property right mechanisms like surveying, land demarcation, deed registration, leasing and granting the court of laws adequate power to adjudicate disputes.
The Department of Lands and Physical Planning particularly the Registrar of Incorporated Land Groups (ILGs), the Climate Change and Environment Protection Authority and the PNG Forest Products Authority should play their part by documentation, providing surveillance, setting standards, monitoring and inspecting activities.
Furthermore, the success of this programme will help ease business tension in terms of meeting domestic demand for forest products as well as strengthen government finance.
This will result through turning away import orders of substitute building products and subsequently bringing in foreign exchange and log export tax through the creation of a categorical downstream market for locally harvested forest products.
Therefore, the respective government departments and the private sector should collaborate and think beyond the problem of higher public debt levels and turn them into opportunities in the medium to long term.

Mike Haro, Via email