PM: Economy will stay strong

 By SHIRLEY MAULUDU

THE economy of the country remains strong even given the drop in mineral prices, which has led to scaling down of some major investment projects, Prime Minister Peter O’Neill says.

Speaking during PNG Business Advantage Summit 2014 in Port Moresby yesterday, O’Neill maintained that the country’s economy is still strong.

“Our economy remains strong, despite a number of adverse impacts such as lower mineral prices, which has led to a deferral of some major investments, and the scaling 

down of some existing projects,” he said

He said the first export of PNG liquefied natural gas (LNG) a few months ago is a significant achievement for the country and its economy.

“This great project will do more than just deliver substantial revenue inflows to the national government, and other levels of government and landowners – it has already enhanced our international standing – as a country where investors can invest with confidence and certainty.

“The multi-national consortium that has delivered this great project ahead of time deserves high praise, and so do the many landowner groups, contractors, local and provincial governments that have made this possible.

However, O’Neill said end of the project’s construction phase has seen decline in employment at the project. 

He added government has taken note of the issue and is addressing it.

“The ending of the construction phase meant that employment numbers at the project have declined substantially – and many of them, highly skilled and trained.

“The best way to secure employment for them in the future – and for the construction sector large and small throughout the country – including oil and gas, and mining, projects, is lift our own spending on infrastructure and areas such as roads and housing.

“I want to assure you, our government is doing exactly that to maintain stable economic activity in the country, and maintain the growth that we have been experiencing.”