I AM not an economist but I would like to question Patrick Pruaitch’s wisdom in proposing to establish an offshore stabilisation fund.
What is the merit behind this proposal?
An offshore fund would mean extra revenues for that particular country to invest and grow its economy.
Can you imagine the revenues generated from the LNG project in its lifetime?
Secondly, it would mean more taxes for that particular country if money were to be withdrawn from the stabilisation fund by the Government.
Thirdly, PNG is at the mercy of that country, meaning there may be limitations to the amount of funds the PNG Government can access anytime.
Mind you, the stabilisation fund managers would also have the mandate to put in place whatever stringent measures they see appropriate.
Why not establish a stabilisation fund in PNG and hire experts that we don’t have from overseas and manage the fund ourselves?
This will allow us to tell them what to do and not the other way around.
Otherwise, we’ll forever rely on others, never really knowing when we will be able to get up and walk on our own two feet.