Organise retail group to increase bargain power, Govt told

THE Government should organise retail buying groups to increase their bargaining power in negotiating better prices from foreign-owned wholesale importers, according to a businessman. Peandui Koyati, one of the beneficiaries of the Stret Pasin Stoa scheme in the 1970s and 80s, said the retail industry in Papua New Guinea was still being controlled by foreigners. “Over the years, foreigners entered the country and set up wholesales and gave preferential treatment to their own relatives who ran retail shops,” he said. “These foreign retailers undercut the prices of goods and basically forced local operators to close up shop as local people simply bought goods from foreign-owned shops where the prices were lower. “That’s how the retail sector was stolen from locals who owned shops in every town and suburb.  “As successive governments negligently allowed this trend to continue, local retail shop owners were dispossessed right under their noses. The current Government says it wants to take back PNG from foreigners who offer lower prices to customers because of their privileged prices which their wantoks who operated the wholesale/importers gave them.”
Koyati challenged the Government to strengthen the reserve businesses list originally initiated by Grand Chief Sir Michael Somare. “Set up government-owned wholesale/importers,” he said.  “Alternatively, the Government should buy all foreign-owned retail shops, train locals in retailing, give them collateral free and equity free loans, which they can repay over a specific time period. “After that, transfer the shops to successful managers, successful managers should never be allowed to sell their shops to foreigners and be taught how to beat competition, diversify their business and how to manage growth and expansion. “Only by protecting our locals from unfair price competition and manipulation from foreigners, can we take back the retail sector.”