State loans create jobs: Barker


LOAN facilities taken by the Government for construction of infrastructure is a big opportunity for employment creation, according to Institute of National Affairs’ executive director Paul Barker.
However, Barker said that this was not fully realised from previous facilities taken by the government in past years.
“It is difficult to go and borrow internationally for maintenance,” he said.
“It is easier to go and borrow internationally for some road under one of these export-import facilities.
“Those types of lending facilities always come at a high cost.
“They are often uncompetitive as you do not really go out to get a collection of competitive bids.”
Barker said the loan was usually tied to the country that was supplying it.
“When you build road infrastructure, it is a job-creation opportunity,” he said.
“Make sure that these jobs are for Papua New Guineans and not for overseas people.
“They will want to generate jobs for their people, but PNG needs to make sure that they are creating jobs, and importantly sustaining jobs for its population.”