Stability vital: O’Neill

PRIME Minister Peter O’Neill says political stability is vital for the development of the country and continued growth of the economy.
He said that following warnings this week from the International Monetary Fund (IMF) on slower global economic growth this year and next year and it was critical that PNG maintained a strong and competent Government.
Speaking on the eve of the no-confidence motion to be voted in Parliament today, O’Neill said the world economic outlook had been made significantly more uncertain by a number of factors, including the decision by Great Britain to leave the European Union.
“This gives more reason why governments need to be stable in all countries so that they can they can continue to roll out the programmes that they committed to the people.”
“Any politically instability will create damage to our economy.
“It will erode the confidence that the business community has for Papua New Guinea.
“Even further, it will erode the confidence the international community has for Papua New Guinea.
“If we are not careful, we will risk losing events like the Apec (Asia Pacific Economic Cooperation), we will risk losing some of the international sporting events that are going to take place this year and next year.
“We simply cannot afford that.
“The allegations made against myself and the Government are politically motivated.
“Even though we know that the Opposition never had the numbers, they continuously try to destabilse the Government from day one after the 2012 election.
“Some key world commodity prices are recovering slowly, and that fact is adding to general uncertainty in the world economic outlook for this year and next year,” he said.
He said Papua New Guinea was seeing real “green shoots” of recovery from the impact of lower commodity prices with a number of major oil, gas and mining projects continuing to progress towards the final approval and construction stages.
“The Bank of Papua New Guinea has pointed to private sector growing in the first quarter of 2016, compared with a decline in the December quarter of 2015.
“This year we will achieve 4 per cent GDP growth which is high by prevailing world standards.
“As the construction phases of our next major gas project, Papua LNG with TOTAL SA, and major mining projects such as Frieda River kick in next year, I am confident GDP growth will lift strongly, and we will see a significant boost in employment and activity in the small business sector.
“What the warnings from the IMF make clear is that factors over which we have no control whatsoever are a challenge to world economic growth, and world trade,” he said.
“The Papua LNG Project will create 13,000 jobs during the construction phase and provide a significant boost to economic growth, and the health of businesses large and small,” he said.
“There is much more to be done – and a strong united national government supported by a united parliamentary team – is the only way to deliver on the opportunity we have today and tomorrow,” O’Neill said.