PM heads SME Council

 THE Prime Minister will be responsible for the growth of the small and medium enterprises (SME) sector as chairman of the new SME Council, Trade, Commerce and Industry Minister Richard Maru says.

He said with the new Corporation Act 2014 in place, the sector’s development and growth would depend on government of the day.

“Parliament has now passed a historic legislation, which is the Small and Medium Enterprises Act of 2014,” Maru said.

“This Act provides for the establishment of the Small and Medium Enterprises Corporation (SMEC) which will now succeed the Small Business Development Corporation (SBDC). 

“The new SME Corporation will be the key lead agency for the SME sector in Papua New Guinea.” 

The SMEC would be administered by the SME Council. 

He said under SBDC Act there was weak governance, with no direct participation and involvement by political heads in the sector. “As a result, the SME sector has never been really supported by successive governments,” he said.   

“Under this new Act the governing body is the SME Council of Papua New Guinea, which has been created by this new enabling legislation. 

“The chairman of the council is the prime minister of Papua New Guinea. Deputy chairman is the Trade (Commerce and Industry) Minister and all the key ministers are members of the SME Council.” 

“By setting up the council, we make Prime Minister the chairperson of the SME Corporation, with key ministers like minister for planning and minister for treasury as council members. 

“The accountability for the performance of the sector and the growth of the sector now rests on the Prime Minister and his key ministers.” 

Maru added that the National Executive Council would soon appoint board directors and a managing director of SMEC.