Table reserve list, says Council

The National Business

THE Micro to Small Medium Enterprise (MSME) Council says it wants the Investment Promotion Authority (IPA) Act amendment looking at the reserve activity list to be tabled in Parliament.
It said this when congratulating Deputy Prime Minister Sam Basil, who is now Commerce and Industry Minister.
It said the reserve activities list was like a “hot potato” which no one wanted to deal with.
The list identifies businesses which are earmarked for Papua New Guineans to operate in country.
President Desmond Yaninen said: “Our micro and small businesses need protection from foreign competitors who are better trained, well resourced, have advanced technology, better networks and more capital.
“We cannot set up SMEs in their countries.
“Why should they be allowed to come to PNG freely?
“We welcome them to come in and do big businesses – not the small things.
“The IPA Act must be tabled in Parliament and be approved so our people can be protected.”
Former commerce and industry minister William Duma previously said work was progressive on the reserved business list which also considered the investors who had been operating in the country and contributing to the economic growth of the country.
“We have people who are not necessarily from Papua New Guinea but have been here, operating businesses, paying their taxes, employing the people and doing the right things,” Duma said.
“So it’s not that easy.
“Particularly, during the Covid-19 pandemic when nothing was coming into the country, we were not exporting so much.
“We need foreign exchange.
“You’ve got to be sensitive with the timing for all these things.
“It’s a delicate balancing act that we have to do to retain the expertise and the capital know-how that this it will bring in.
“It’s not like we issue a list and would expect foreign businesses to sell their assets so Papua New Guineans would take over.
“We need to be very careful as this is not straight forward,” he said.
“We need foreign investment, those who have been in the country for the last 20 years to continue employ our people.
“We are not about to put up a list and tell them to pack up and leave.
“It doesn’t happen that way.
“We need them.
“They are proven entrepreneurs who have contributed to this country so we will do it where necessarily.”
Other concerns raised by the MSME Council were:

  • The K200 million for 2021 should be made accessible to micro banks as well and the requirements should be simplified so rural SMEs can also access these funds;
  • Women SMEs should be supported; and,
  • National Development Bank needs to start lending the K80 million it has sued for the soft lending facility.

Yaninen said there were many concerns that the council would raise with Basil later.