Small businesses in Lae struggle as they watch decline in sales

By MARK HAIHUIE
LAE businesses are struggling with the “increasing difficulties” brought on by the ongoing foreign exchange shortage, according to Lae Chamber of Commerce Inc president Alan Mclay, pictured.
McLay said the shortage had depleted stocks and replacements were becoming harder to source.
He agreed with the Port Moresby Chamber of Commerce and Industry’s estimate that business sales had dropped by about 30 per cent because of the foreign exchange problem – as reported by The National yesterday.
“If PMCCI estimate a 30 per cent decrease, then that would be a good estimate for the decrease in Lae businesses across the board. But we are waiting for some more accurate figures as some businesses have been affected more than others,” McLay said.
“There is probably increasing difficulties felt now, as the extended period of foreign exchange shortage has meant that more stocks have run out, and hence, replacement of these items is becoming more and more difficult.”
McLay said the shortage would be hard on small businesses with foreign exchange orders being prioritised for larger companies importing food and fuel.
He also noted the increase in coffee exports by Morobe and the need to prevent the coffee borer from entering the province.
“Morobe has been exporting more and more coffee over the past five years or so. It is a difficult enough province to produce coffee because of poor road access and climate variations,” he said.
“The province doesn’t need the coffee-borer. We encourage efforts by the Coffee Industry Corporation and National Agricultural and Quarantine Inspection Authority to prevent infestation (from reaching Morobe).”