Tuna processors expect K10mil

By GYNNIE KERO
The country’s tuna processors are expected to receive K10 million, up K2 million from the Government for last month under the rebate scheme.
This was according to National Fisheries Authority managing-director John Kasu in Port Moresby yesterday.
For the month of January, the NFA paid the six processors K8.6 million for processing 6.652 metric tonnes of tuna.
Under the rebate scheme, the authority pays US$400 (K1273) for every metric tonne of tuna processed domestically. Under previous arrangements, Kasu said, discounts were given to fishing days.
“Initially, discounts were given on fishing days,” he said.
“Intention was to encourage downstream processing.
“But we only saw 25 per cent only going to processing plants.
“So what we have done this year is cease the discounts.
“As you process one tonne, you get a rebate of US$400 per metric tonne.
“Basically, we saw an increase in processing.
“For example, RD has gone from one shift to second shift.
“We can see increase in tonnage that’s being processed.
“For February, we will be paying K10mil out to the processing plants.”
Deputy Prime Minister and Treasurer Charles Abel said because bulk of the country’s tuna was brought offshore, Cabinet decided to remove the discount on the vessel-day scheme and provide a rebate to those who actually processed on-shore.
Kasu said the rebate was part of the Government’s objective to continue supporting downstream processing, creation of jobs for the people and achieve broader economic growth for the country.
“Rebates are only given to companies for fish that is processed in Papua New Guinea,” he said.
“I am aware that companies have since increased their production.
“This is welcoming news but I urge the companies to ensure that this rebate is translated further down to increase employment, wages and working conditions of their employees.
“The NFA has also implemented the Government’s directive to forgo the past practice of selling discounted vessel-days to companies in PNG.
“For the first tranche of vessel-days for 2018, sold under the new arrangements, the NFA sold all the days at US$9700 (K30,890) per day.
“For the second tranche (April 2018), NFA will be selling the vessels-days at US$10, 500 (K33,437) per day.
“The proceeds from the sale of vessel days will be used for the rebate payments and to support the NFA and a significant number of community infrastructure and development projects that the NFA sponsors on behalf of the Government.”