Warning on oil palm interests

WE reported last week that some five million hectares of land was being grabbed through the clever manipulation of the special agricultural and business lease allowed under the Lands Act.
Clever manipulation, that is, with the tacit support of Lands officers.
Through this process, millions of hectares of customary land are being passed off to non-indigenous corporations and individuals for up to three generations (99 years).
Now we hear a different version of the same story which thickens the plot.
The palm oil industry has warned the government and people to be wary of “con” oil palm projects appearing all over the country.
Palm oil representative Ian Orrell, in a no-holds barred presentation, told a workshop focusing on LNG and agriculture last Friday that this was all done with the purpose of logging, and was already giving a bad name to the established industry.
Just recently, we have carried announcements of several such projects in several locations in the country supported by ministers of state.
The plans have always been vague and hidden behind promises of huge benefits to the people in real income and infrastructure development.
In one, a businessman flew with his entourage into the country, supposedly at the invitation of the prime minister, but with nobody having been informed at Immigration or Customs and created quite a stir.
The group went on to meet the prime minister in Wewak and was shown an aerial survey over a huge tract of land across two districts.
The multi-million-kina investment will involve logging and oil palm estates. A local council president in the area has protested the deal.
This is a free country and open for all to explore for business opportunities provided they have the capital and the expertise to invest and are prepared to abide by the terms offered by the government.
What the country must never allow, and this is what Orrell’s warning is directed at, are those that will abuse the laws and regulations of the land for their own interests.
Ministers and senior public servants who invite investors must ensure they will do all they offer to do.
It would have been a good eye opener for Agriculture Minister Ano Pala and his department acting secretary Anton Benjamin to have been at the LNG and agriculture workshop, but they were elsewhere – in China.
It is a pity because the kind of imported inflation that is likely to level the fledgling agriculture and manufacturing industries as a result of the LNG pro-ject happen to fall directly in their laps.
The onslaught of the Dutch Disease or the “resources curse” is very real and frightening but, even more frightening, is the matter spoken by Orrell.
The Dutch Disease can run its course as the economy does today without the involvement of the rural people so long as they have their land.
Orrell said this “virtual” palm oil industry had seen the emergence of many “oil palm” agro-forestry projects, all with a focus on securing forest conservation areas (FCAs).
“Most profess to be for ‘palm oil’ development,” Orrell said.
“This poses a massive reputational risk for the country and its palm oil exports.
“This will directly affect our market access and is blocking real development opportunities from real investors.
“The ‘real’ palm oil industry must take, and is taking, an active role in supporting awareness, opposition and mitigation activities to prevent these abuses of customary land and resource rights.”
Orrell said there had been no government support for the “real” palm oil sub-sector, with over 15 years of government facilitation of new palm oil developments – “which has led to?”
He questioned the national development strategic plan 2030 (DSP2030) and national agriculture development plan (NADP) aims to triple palm oil exports by 2030, as well as an expressed strong desire for new investors.
“It appears PNG is being advertised overseas as a large available ‘land bank’,” Orrell said.
“Departments and politicians are courting any entrepreneurial proposal, no matter how little expertise, credentials or lack of financial capacity is exhibited.”
He said all these were done with no consultation with the country’s palm oil sector; and no understanding of palm oil development and its requirements in PNG.
We cringe at the implications of all this. Talk about selling out.