Water cuts put dent on revenue

By GYNNIE KERO}
WATER disruption in East Sepik is costing businesses such as South Seas Tuna Corporation Ltd thousands of kina.
According to president and managing director Mike McCulley, the Wewak-based loining company lost more than K200,000 when it shut down operations for a day due to lack of water.
He said the firm had seen an increase in processing of tuna at its plant following the introduction of the rebate scheme.
Under the scheme, all tuna companies are paid US$400 (K1341) per tonne for every tonne of tuna processed domestically.
The scheme was introduced by the Government after a study found that most tuna caught in Papua New Guinea waters were sent offshore and not processed in local factories.
Commenting on the scheme, McCulley said: “Our plants are very busy.
“We are running two shifts and we have 2100 employees now.
“With the scheme, we are now doing 160 tonnes a day so the rebate scheme is certainly working for us.
“When we have to shut down due to lack of water, we lost more than K200,000 per day as rebate plus unabsorbed factory burden.”
South Seas Tuna exports white meat to the European market and red meat to RD Tuna Cannery for the local market. The company used to produce canned fish which was sold locally in Wewak.
McCulley, when explaining why South Seas tinned fish are not seen on shelves, said: “Once upon a time, SSTC started canning in the beginning when workers were still learning to clean the fish (tuna),” McCulley said.
“In the learning process, lots of pieces break off. Our customers want solid pieces, so that’s why
we put all the little pieces in the cans.”
The company also produces fishmeal which is sold mostly to Australia.