Weak kina worries Basil

Business, Normal

The National, Tuesday October 22nd, 2013

 THE Opposition is concerned about the kina that has depreciated more than 13% against the US and Australian dollars. 

Deputy leader Sam Basil (pictured) said the Opposition had warned that the depreciating kina would result in increased costs of goods and services once those imported this month lands in November-December resulting to a jump in inflation rate. 

“Our exports would earn more income but opportunities are passing us … I am sure coffee, copra and cocoa production is down and agricultural produce used in processing,” Basil said.

“Economic projections underpinning the 2013 Budget has been a cause for concern when we had a deficit budget, while commodity prices were said to be fluctuating with GDP (gross domestic product) projection dropping to about 4% from the 6%.”

Basil said the Government had focussed education, health, transport and law and order while the Opposition had warned the prime minister to include agriculture. 

“We all know that the agriculture and rural sectors have been the backbone of the country during economic fluctuations and has been the safety net for the majority of our people,” Basil said.