Scovell: Steer local businesses

By DALE LUMA
THE Government hides behind loan conditions which do not adequately support local businesses, says PNG Manufacturers Council chief executive officer Chey Scovell.
He told The National that the Government should do away with any policies which restricted locals from participating in business.
He said there was scope, under very precise circumstances, for the Government to use regulatory frameworks to steer local investment into focused sectors, to encourage and even support or provide advantage to citizen-owned operators in desired sectors.
“I do not advocate a blanket solution. They don’t work,” he said.
“You can’t boil the ocean.”
Scovell said there were no laws which favoured foreign investment, especially in problem areas such as wholesale, retail and construction.
He said the question to be asked was why foreigners were rapidly growing in these sectors.
“It’s because they make lots of money. It’s too easy to avoid taxation and not comply with our rules,” Scovell said.
He urged the Government to circulate the draft amendment to the Investment Promotion Authority legislation before it is tabled in Parliament on the list of businesses reserved for PNG businesses.
“PNG is also obligated under the WTO (World Trade Organisation) to provide the same to the WTO and all its members,” he said.
IPA managing director Clarence Hoot recently told The National that the proposed changes to the IPA Act 1992 would be tabled in the next sitting of Parliament.
Hoot said Commerce and Industry Minister William Duma would have to sign the submission of the IPA investment promotion act amendments.