State of economy not good: O’Neill

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FORMER Prime Minister Peter O’Neill says the Gross Domestic Product (GDP) does not measure health, education and equality of opportunity.
The Ialibu-Pangia MP was responding to a full page newspaper advertisement by the Pangu-led Government, explaining how well the national economy was doing.
“It (GDP) does not even measure crucial aspects of the economy such as its sustainability: whether it is headed for a crash,” O’Neill said.
He said the facts showed that the country’s economy was ruined in the past three years.
“It is time we get back to work and rebuild the economy and our way of life, and stop this political experiment that has ruined our economy and our country over the past three-plus years,” O’Neill said.
He said what crippled the economy included:

  • WASTAGE on the K5.6 billion spent on the Coronavirus (Covid-19) – still no audited report on how the funds were spent despite assurances by Bryan Kramer and Ian Ling-Stuckey;
  • OVER K10 billion lost from the Government’s cancelling of the Porgera state mining lease;
  • INFLATION at 5.7 per cent and predicted to rise to 7 per cent this year;
  • FAMILIES paying K60 for a 10kg bag of rice in Enga;
  • ZOOM costing K7 per litre in Manus where boat transport is vital;
  • DEBT growing by K27 billion from 2018 to 2022 (Department of Treasury official budget);
  • DEBT to GDP was at 35 per cent in 2018. Now it is at 53 per cent; and,
  • AN increase in the ceiling of allowable debt to GDP from 35 per cent to 60 per cent.

O’Neill said the economy was down by minus 3.5 per cent in 2020 and only grew by 1 per cent in 2021.
“The Pangu-led Government has amassed K23.746 billion in budget deficits (official Treasury Budgets) and K27 billion in loans leading the World Bank to state in its report of February 2022 an ‘unrealistic budgeting (and a) need to improve the credibility of the annual budget process’.
“The facts are very different from the reports the Prime Minister wants us to believe from his newspaper advertisement.”


Extractive sector to drive growth by 4pc: Report

THE World Bank says the country’s economy is projected to grow by 4 per cent this year, driven largely by growth in the extractive sector.
But World Bank country economist Ruslan Piontkiysky warned: “The biggest challenge for the PNG economy this year will be navigating a fragile recovery.
“This is particularly challenging while uncertainty remains high.
“A sound fiscal consolidation strategy – one focused on mobilising domestic revenue to decrease the medium-term fiscal deficit – is vital for PNG.
“This will be important to navigate while prioritising improvements to the delivery of services.”
The state of the economy has been a hot topic for debate during the General Election 2022 campaign among leaders.
According to the World Bank report released in March, “Papua New Guinea Economic Update: Navigating a Fragile Recovery”, the extractive sector was projected to be the main driver of gross domestic product (GDP) growth – an estimated 4 per cent – driven by the planned reopening of the Porgera gold mine in Enga.
However, the report estimated that the overall medium-term growth was likely to be impacted by higher global uncertainty.
It said that while local agricultural production continued unabated through the pandemic, PNG’s overall GDP growth had lagged behind global and regional averages, with performance further constrained by falling gold and liquefied natural gas production.
The report recommends that PNG improves the credibility of its annual budget processes and ensure companies in resource sector contribute revenue to PNG’s budget to safeguard fiscal sustainability.
It emphasises “further improvements to the tax policy and tax administration to help reduce the country’s debt burden”.


New Ireland police secure ballot papers, materials
Ballot papers arrive in Kavieng
New Ireland police commander Chief Inspector Felix Nebanat receiving ballot boxes from election manager Benjamin Kliawi on an Australian Defence Force aircraft in Kavieng .
– Picture supplied

NEW Ireland police are responsible for the safe-keeping of ballot papers which arrived in Kavieng on board an Australian Defence Force aircraft yesterday, says a senior officer.
New Ireland police commander, Chief Inspector Felix Nebanat said police would guard the ballot papers, boxes and election materials until polling day and afterwards.
They included 52 ballot boxes, three electoral roll boxes and other accessories.
He said additional police manpower from Tomaringa would assist in securing the materials until polling time.
New Ireland Election Manager Benjamin Kliawi confirmed that the materials would be under police guard.
The materials will be distributed to the polling teams before they leave for their assigned polling areas.
He urged the provincial and district administrators to recruit 10 public servants to conduct scrutiny for the 10 polling stations for the regional seat.


Authority continuing vaccinations efforts: Doc

By LULU MARK
THE National Capital District Health Authority will continue supporting the Coronavirus (Covid-19) vaccinations in the capital city despite the closure of its Rita Flynn centre and pandemic operations.
Chief executive officer Dr Steven Yennie said the health authority had implemented smart Covid-19 response and vaccination strategies. The closure of Rita Flynn meant the suspension of the authority’s vaccination programme there.
“(But) the Motu Koita Assembly and all our partners with ISOS are continuing their vaccination programmes,” he said.
“We support their vaccination supply on daily basis.”
Dr Yennie said when Rita Flynn was shut down by the PNG Sport Foundation for the non-payment of K6.2 million in fees, all medical equipment inside such as the GeneExpert machine were not released.
He said: “The National Control Centre and Health Department have not given any clear indication of settling the dues.
“So we are unable to continue testing and associated services at the Rita Flynn facility.
“We have accrued liabilities since 2019 when we started our Covid-19 containment and response programmes (which) included personnel, hire cars and other related expenses.
“We have not been receiving the health service improvement programme funds from the Health Department so we cannot continue to incur more costs.”
There is fear that a surge in the Covid-19 cases will occur during the election period.