PNG needs genuine investors

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By DALE LUMA
THE country must recognise that it needs to be competitive in attracting genuine investment, says Institute of National Affairs executive director Paul Barker.
He told The National that “too often by imposing too many formal restrictions, the country frightens off genuine investors”.
“This has opened the door instead to the fly-by-night or corrupt operators,” he said. He said corrupt operators came in through the back door and then failed to contribute adequately to the economy, employment, revenue and standards.
He said in many cases, they seriously exploited PNG’s resources, providing inadequate and unsustainable local benefits.
“Rules have to be consistent and applied transparently for all-comers. And the genuine investors, whether in agricultural production, downstream processing and value adding or services, must be (provided) a fair, consistent and level playing field,” he said.
“Businesses aim to be able to make a profit.
“That’s legitimate. And if it is apparent that the costs will be excessive or the risks too high, then clearly neither locally-owned nor overseas businesses will invest.
“The mantra should be to generate sustainable economic activity and meaningful employment, while safeguarding the natural environment and making a reasonable mandated contribution to the State, for it to perform its essential functions.”
He said if the business sector was hindered by red tape, restriction and unrealistic or rigid fees, no genuine and diverse investment would be attracted.
“Then the economy won’t develop, employment won’t be generated and the State and the country will miss out on revenue and services,” he said.
“Generating opportunities for Papua New Guineans, whether as employees, entrepreneurs, scientists or in various services should be the objective, rather than taking back what is already operated by someone else and failing stimulate increased opportunities and revenue.”

8 comments

  • Genuine Investors are also concerned with how their taxed kina is used. When will this country manage what it already has it on its hands? We have chronic management issue across the country and not investment issue.

    I’ve witnessed so much misuse and wastage of much-needed government resources with no guilt at all!

  • Thank you Mr. Barker for all your valuable contributions for the development of this country ever since.

  • Thank you Mr. Barker for all your valuable contributions for the development of this country ever since.

  • Investor confidence is important – government must have a policy that must attracts and protect investors. All over the world are demanding investors. We must be very competetive to attract them. For many years our government has never trained people to be good entrepreneur, Managers, Manufacturers. The government has also failed to provide adequate services as good roads, electricity, markets and even finance. if it was provided, those in control has misuse or fund their wantoks and returns from those monies. PNG is basing its revenue only from tax, so the Government must focus on bringing in investors and employment creation.
    Air Niugini, PNG Power, Telikom and other government own businesses should annually provide certain amount of money to government and it has to come out through their annual financial report so that the nation must know.

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