Port Moresby Chamber of Commerce and Industry PO Box 1764, Port Moresby 6th Floor, Monian Tower, Douglas St. Port Moresby Ph: +675 3213077 or +675 3213254 Fax: +675 321 3251 Email: pomcci@global.net.pg

Merry Xmas 2002 from the POMCCI Executive

POMCCI Executives with staff from Gini Goada
Business Development FoundationGini Goada Micro Credit Scheme.

 

17 Dec 2002

 1. NATIONAL APPRENTICESHIP & TRADE TESTING BOARD (NATTB)
 Members are advised that the NATTB are looking for a suitable nominee for the Apprenticeship and Trade Testing Committee (ATTC).

 The ATTC is an important sub-committee of the Board. Informaiton on the roles and responsibilities of this committee is available at the Chamber and can be faxed to you upon request. Any interested members should send us a CV for consideration by the Committee.

 2. COMMONWEALTH BUSINESS COUNCIL
 The Commonwealth Business Council (CBC) in association with the Government of the Republic of South Africa and the NEPAD Secretariat are jointly organising the African Investment Forum in Johannesburg, South Africa from 7 to 9 April 2003. The CBC would like to provide organisations from PNG the opportunity to network and develop trade and investment links within Africa. Upon receipt of this list, these organisation will receive a letter of invitation and copy of the brochure and program inviting them to attend. For more information you can contact:
Mark Hemetsberger
Markerting Manager
Commonwealth Business Council Insight
Tel: 44 (0) 207 024 8271
Fax: 44 (0) 207 024 8201
Email: mark@ocbcinsight.com
 

3. NPF COMMISSION OF INQUIRY
 Members are advised that the Report on the NPF Inquiry can now be accessed on the website at: www.transparencypng.org.pg
 
 

1. BUDGET 2003 / DELOITTE -POMCCI HOSTED BREAKFAST

POMCCI has expressed disappointment with the increase in company and fringe benefit taxes as announced in the 2003 Budget. Companies are struggling out there and increasing taxes send all the wrong signals to the private sector. There is a saying" an extra 5% of nothing is nothing". An interesting commentary on the new Corporate Tax was raised at our successful Deloitte/POMCCI Breakfast which, in fact, showed that as of 1/1/2003 this equates to an effective tax rate of 41.9% , which compares with 33% in Australia and New Zealand.

Another extract from the Deloitte Budget Alert (available on www.deloitte.com.pg) states" with an increase in corporate income tax, taxpayers should consider realising income prior to 31 December 2002 and/or deferring expenditure until after 1 January 2003. Where taxpayers have losses available to carry forward [sure there must be more than a few of those out there], they should seek to utilise them from 2003 as opposed to now to gain an extra 5% benefit. While the increased rate does not apply until 1 January 2003, there will be an immediate cashflow impact on provisional taxpayers as early as 30 April 2003. 2004 Provisional Tax will be assessed by IRC by 30th April 2003 and the provisional tax of a company in respect of a year of tax is an amount equal to the tax assessed in respect of the next preceding year of income. Therefore, IRC will assess 2004 Provisional Tax on 30% of the income from the last assessed income tax return ".

We are also unhappy that there are indications that the proposed fee increases, mostly in the range of 100%, for all sorts of permits and licenses will lead to more exodus of foreign investment from PNG (members who wish to know more about the increase in fees and permits should contact the secretariat who will provide the full list eg it is proposed Work Permit Fees will increase from K1500 to K3000. Too much to expect that the increased fee will be matched by an increased efficiency and speed of processing? I guess a lot of companies might consider the new fee well spent if a permit was guaranteed to be finalised in 2 weeks.) If any government is serious about foreign investment and an export led recovery, it has to seriously look at making the public service more efficient rather than taxing the private sector to death.

On a brighter note, we are happy that the government has announced incentives for the PNG-Gas pipeline project. All indications are that this massive project, often called "PNG saviour", will go ahead after all. The tax and other incentives could not come at a better time. We congratulate the government for its handling of this project.

2. PNG QLD GAS PROJECT

As mentioned earlier, general signs remain good for this project and this can only be assisted by the problems that the Timor Sunrise project has run into with a decision to defer their production for overseas consumption. There is an interesting article from the Australian press on our website related to this project. Visit the press section of our website for more details. Queensland Premier Peter Beattie has also stated unequiviocal support for the project at the recent Australia PNG Business Council breakfast, but also cautions that while they are in full support and " will bend over backwards to help " the project needs to have the customers and must be commercially sound. In his own words " if we buy the energy for Queensland at the wrong price and in future years this results in higher electricity prices for our consumers, my government, and any Queensland government, would be taken out and shot." We commend the Premier for this statement of support and his reiteration of the strong bonds between our two countries. PNG needs friends like Premier Beattie and we wish him well on the rest of his trip to PNG.
 

3. FAREWELL

Bon Voyage to our Treasurer John Locke who will be heading off to Westpac Sydney, and our VP, Ken Dunn, who will be taking up a regional roll in the New Guinea Islands, based at the BSP branch in Kokopo. We wish them both well in their future endeavours and thank them sincerely for all their voluntary efforts on behalf of the Chamber and its members. Ken has stood in ably for the President this year and John can rightly claim a lot of the credit for returning the Chamber to profitability in the last two years. Until next year's AGM, Paul Barber from Deloitte will be our Acting Treasurer and and Dr James Chin will be Acting Vice President.

John Locke with Rita from the Chmaber

Ken Dunn with John Locke at POMCCI's farewell drinks party for both of them
 

The Chamber now has two vacant positions to be filled and we are ready to co-opt any interested Members to the executive until the next AGM. If you are interested or have a suggestion which will strengthen our team please send details and CV's of any nominees to the office.
 

4. NPF REPORT

Parliament has now received the NPF Report, so the ball is clearly in the Government's court on the next course of action. We support the call by the Community Against Corruption that the full force of the law must take its course against those named in the NPF report. We are disturbed to read that ministers implicated by the NPF report are still in office despite a public pledge by the PM. In any other country a leader implicated in such an enquiry would have already have stood aside and let the legal process proceed, to preserve not only personal dignity but also the dignity of Parliament and the State. If no action is taken against those who stole money from workers, leaders of this country face the certainty that they will lose any credibility they currently have. We strongly urge the government to act and show the rest of the world and our people that they are serious about punishing those involved in high level corruption.If this involves 'special prosecutors" and independent legal expertise from other jurisdictions to assist an already stretched and under-resourced police force and judiciary then so be it.

 The recent incident involving the arrest of prominent NASFUND "saviour" was entirely the wrong signal, and is all the more disturbing because there was so little outcry by the community and the contributors. We condemn in the strongest terms the "conspiracy" against Mr Mitchell and commend the Police for taking action against the rogue policemen involved and trust that those implicated in the inquiry who were involved also are punished to the full extent of the law. We find the idea that one of the main, innocent, players in saving NPF, is to date the only person who has been behind bars totally abhorrent.

5. NO MORE HOLIDAYS ?

We are dismayed by the sudden increase in airfares- from 17- 20 percent. If we add all the increases in the past 2 years, air fares have risen by a whopping 100 percent.. While we can understand the need to keep up in light of the falling kina, the increase can also be attributed to years of under-capitalisation, political interference and examples of poor or misguided management. We are fast approaching the time when we need to question whether PNG can afford to have its own national carrier. If there is a clearer indication why privatisation is not necessary we fail to see it.
 

6. PETTY CRIMES

We call upon the police and social welfare to do something about 'parking attendants' in downtown POM. Many of these youngsters openly solicit money in return for "protecting" the cars parked in front of Steamships Arcade and in many other places around the city centre. In recent months, older boys appear to have taken control of the young boys and if nothing is done, an organised gang will be the result. The police need to address this situation as part of their welcome attempts to clean up the city streets.
 

7. CORPORATE TRANSPORT

Fed up getting "tangfu'd" travelling between Port Moresby and Lae ? Corporate Transport Niugini , one of our newer members , is proposing to introduce a system where company personnel are booked on a "dedicated charter " on a fixed return seat cost. If you are interested in this concept for your corporate travel contact Brad Bailey at Corporate Transport Niugini on Tel: 3257878 Fax: 3236789 Mobile 6932927 or Email: admin@corpgroup.com.pg.

8. OFFICE CLOSURE

The Chamber will be closing office on the 23rd December 2002 for the Christmas and New Year period and will reopen   on the 6th January 2003.
 

ON BEHALF OF THE PRESIDENT, EXECUTIVE AND STAFF OF THE PORT MORESBY CHAMBER OF COMMERCE WE WISH YOU, YOUR FAMILY AND STAFF A VERY MERRY XMAS AND A PEACEFUL AND PROSPEROUS NEW YEAR IN 2003.

1. NOMINEES FOR NCDC COMMITTEES

A reminder for members who wish to submit nominees for the various committees which was pulished in the last E-News, please do so.

2. OIL REFINERY - NAPANAPA

Steel for building an oil refinery has arrived at the Napanapa site outside Port Moresby.  The developer, InterOil plans a refinery able to refin more than 32,000 barrels of crude oil daily enough for Papua New Gunea's domestic needs and also available for export.

3. PACIFIC ISLANDS TELECOMMUNICATIONS ASSOCIATION TRADE EXPORT - FIJI 2003

PITA's 2003 Trade Exhibition will held in Fiji in March/April 2003.  Those interested should contact the Manager, Mr Christopher, PITA Tel: (679) 3311638 Fax: (679) 3308750, Email: pita@connect.com.fi or website; www.pita.org.fi.

4. AUSTRALIA/PAPUA NEW GUINEA BUSINESS COUNCIL BREAKFAST MEETING

A breakfast meeting organised by Aust/PNG Business Council was held last Friday at the Crowne Plaza.  The occasion was in honour of the visiting Australian Foreign Minister & his delegation.

5. BRITISH WEEK

Ever feel that the UK is remote and far away? That you can't relate to Britain anymore? Well now Britain is coming to Papua New Guinea.  For over a week in late November Connect UK in association with the British High Commission is organising a British cultural celebration.

Friday 22 November
British Week Charity launch at the High Commissioner's Residence.
(ByInvitations only)
British DJ Crispin Kerr playing British Sounds at Lamana Gold Club.
Sponsored by Qantas and Lamana Hotel. K20 Entrance fee. For more infor, please call Lamana on 323 2333.

Saturday 23 November
British Night at 'The Cellar' restaurant. Special 4 course dinner prepared by British Chef, Glen Hall. This  is a St Andrews Night hosted by Rotary Club of Boroko . Tickets are K100.00  per head and are available from Rotary Club Boroko through David Conn on email daveconn1@global.net.pg.

Sponsored by Air Nuigini DJ Crispin Kerr at Lamana Gold Club (as above).

Sunday 24 November
UK Design Exhibition at Brian Bell in Port Moresby. Sponsored by Brian Bell and Design Council, London.

Monday 25 November
Schools Link Launch: School link between Port Moresby Grammar School and a
multicultural school, UK.

Tuesday 26 November
British Chef Glen Hall at the British High Commissioner's Residence.  Meal for youth parliament /students/ young leaders (by invitations only)

Wednesday 27 November
'Books Galore' Special Exhibition and a reception. Donation of British books at the National Library. Sponsored by the British Community, UK/PNG Alumni Association, Boroko Foodworld and Friends of the Library.

Thursday 28 November
Unlimited Theatre perform their play 'Static' at Port Moresby Grammar School. Performances are ticketed and available from the British High Commission - but that they are free.  Sponsored by the British High Commission, Steamships and Port Moresby Grammar School.

Friday 29 November
Unlimited Theatre Company from the UK to give one workshop in the morning at Port Moresby Grammar School Unlimited Theatre perform their play 'Static' at Port Moresby Grammar School (as above)

Saturday 30 November
British Chef gives demonstration at Boroko Foodworld at 10am. Boroko Foodworld has special British Food display for the week. St Andrew's Night at the Cellar Restaurant. For more info, please call the Cellar.  Unlimited Theatre to give one workshop in Hutjena Secondary School, Bougainville.

Sunday 1 December
Unlimited Theatre to give one workshop in Bougainville.  Unlimited Theatre to perform play in Hutjena Secondary School - Buka, Bougainville and give one workshop. For more information, please contact the school directly.

Sunday 8 - Tuesday 10 December
British Film Festival at the newly opened "SVD Memorial Auditorium" in Divine Word University, Madang.

'The Warrior' / 'Pandaemonium' / 'The Magdalene Sisters' / 'Last Orders' / 'Large' / 'Jump Tomorrow' / 'House' / 'Gas Attack'
'The Hole' / 'Shiner' / 'This Is Not A Love Song' / 'Miranda' / 'My Brother Tom' / 'Like Father' / 'Everyone's Happy'
'Charlotte Gray' / 'Born Romantic' / 'Bloody Sunday'

Sponsors: DWU, British Council, British Film Institute.

Wednesday 11 December
Solo piano recital by world famous British pianist Peter Donohoe in Port Moresby (venue: Crowne Plaza).  Sponsored by Bank of South Pacific, Datec and Air Niugini. Tickets available for K30 per head from the NauFM Office - 2nd Level, Credit House on Cuthbertson Street, Port Moresby. 'Major Sponsors': British High Commission, Steamships, Air Niugini, Qantas,
Lamana, Bank of South Pacific, Datec, Post Courier and EMTV.

For more information, please contact Connect UK on 321 1726 or e-mail Pablo
Ganguli at pablo@dg.com.pg
Phone: (675) 321 1726 Fax:     (675) 321 4488 E-mail: pablo@dg.com.pg
Website: http://connectunitedkingdom.tripod.com

6. FIREWORKS
Stephen Smith (Media Niugini) & Peter Aitsi (PNGFM) have advised that they have taken stock of the situation regarding New Year's Eve and decided, due to the lack of response from the business community, to cancel the planned fireworks. When this project was first mooted the response was extremely encouraging and they were confident of attaining the required money, but when the time came to contribute, the response has been disappointing to say the least. For those who contributed please contact the above for your refunds.

7. PHONE-A-THON
The FM Central will be launching a PHONE-A-THON on the 11th of December 2002. The aim of the phone-a-thon is to assist rural health centres in certain parts of Central Province. Even though the phone-a-thon is still some weeks away donations have already started as of yesterday. If you wish to start donating you can call through on phone 321 0533 and ask for Miss Marie Loko.

8. VICTORIA ELECTION DAY
 Election Day Saturday, 30 November 2002
Close of Nominations 12 NOON, Friday 15 November 2002.

Early voting arrangements.  An elector may apply before Election Day, either in person or in writing, for an early vote if during the hours of voting on Election Day they are inter alia: will not be in Victoria; will not be within 8 kilometres, by the nearest practicable route, of any voting centre open in Victoria; will be travelling under conditions which preclude them from voting at a voting centre open in Victoria; are, by reason of serving a sentence of imprisonment or being otherwise in lawful custody or detention, unable to attend a voting centre to vote; have silent elector status.

Electors may request an official postal vote application form (P455) in person at the Consular and Passports Section, Australian High Commission, Godwit Road, Waigani; by telephoning Mrs Pip Thornton on 325 9333 extension 240 or via facsimile 325 9239.  Pip will send out postal vote application forms by local mail or by facsimile as requested.

Additional details may be obtained from the Victorian Electoral Commission Website at www.vec.vic.gov.au  Furthermore, official postal vote application forms may be down loaded from the same Website.

APPLICATIONS MADE IN PERSON FOR AN EARLY VOTE
The elector must:  state the address for which they claim to be enrolled; apply no earlier than 2.00pm (Melbourne time)  i.e. after the close of nominations and; up to Close of Business (local time) on the Friday before election day.

APPLICATIONS MADE BY MAIL
As above plus:

Written applications must be received so that ballot papers can be sent no later than the last mail clearance on the Thursday prior to the election day.  If a request arrives after the last mail clearance on the Thursday preceding election day the electors will be advised that they must vote in person before 6.00 pm on the Friday preceding the election day.

GENERAL INFORMATION
Postal vote declarations containing ballot papers must only be handed or posted to the applicant.  THEY CANNOT BE HANDED TO AN AGENT ACTING FOR THE APPLICANT.  Faxed signatures of elector and witness, on applications, are acceptable.

TRAVELLING OVERSEAS
For updated Travel Advices please visit the Department of Foreign Affairs Website www.dfat.gov.au/travel

TAKING GOODS INTO AUSTRALIA
Please visit the Department of Customs and/or Australian Quarantine Information Service Websites www.customs.gov.au or www.aqis.gov.au respectively.

PASSPORTS - Priority Processing Fee
As of 1 July 2002 applicants may pay a Priority Processing Fee that guarantees issue within 48 hours after all the evidence required has been provided.  The current fee is K142.00.
 

 9.  IMPORT OF MARINE FISH
Multi Team is a marine ornamental fish distributor in the Los Angeles area in the U.S.A and are very interested to import marine fish in high volume from the Pacific Ocean for Aquarium Trade.  The Multi Team would appreciate any contact information about wholesaler exporters of ornamental fish in Papa New Guinea.

If you have any questions, please do not hesitate to contact Mr Kevin Khaleghi on email kevin@multiteam.com
 

1. NEWS FROM THE CITY HALL

The Commission had its first meeting on Friday 1st November under the Chairmanship of Jack Pidik. Many of the major decisions were deferred until the new Commission had the opportunity to look at the relevant documentation and assess the real financial situation of the NCD and its liabilities. The critical situation with water and power was discussed and an immediate approach was made to National Government to expedite a solution . All four NCD Members were in attendance and the President was pleased to note that there appeared to be a general consensus that the politicisation of the Commission had to stop and that there was a great need for reinforcement of due processes for tendering, staff positions, committee system and general financial management. In the interests of stability and in light of the fact that NCD Management is already under a 21 day instruction from the Public Accounts Committee to present accounts and answer several queries on contracts etc , it was resolved no changes to management be made and that a proper review and action be taken once PAC has released its findings.

 A further decision was made to temporarily return the financial powers of the Manager to the   Commission. The much rumoured change to the Manager's position did not eventuate and instruction from the Ombudsman Commission under Section 27(4) effectively restrained all Commissioners from altering "the status quo pending the outcome of investigations ". An Instruction was also issued by the Commission that all assets, including 33 vehicles, be immediately returned to the Commission. Early days yet but we remain hopeful of a change of the culture at NCD.

2. ATTENTION ALL MEMBERS : NCD COMMITTEES

 In an attempt to revitalise the committee structure, involve the community more actively in the running of the city's affairs, and utilise skills of city residents, nominations will be sought for the following existing committees, if they are to be reformed, as well as new ones which can be created under the relevant legal sections. Such committees may not comprise more than 50% membership from the Commission. So if you wish to be a part of the process to revitalise NCD and the management of the city representing POMCCI we seek your initial expressions of interest no later than COB 15th November. After this all nominees will be asked to respond to a brief "fit and proper" test before being submitted to the Commission for consideration .

EXISTING COMMITTEES:
NCD Physical Planning Ctte
CD Building Board
NCD Liquor Licensing Ctte
NCD Trade Licensing Ctte

COMMITTEES UNDER CONSIDERATION :
Finance / Auit Ctte
Tender Ctte
Works Ctte
Community Development Ctte
Environment/Waste Management Ctte
Law & Order Ctte
Tourism Ctte
Urbanisation Ctte
Moresby Markets Ctte

Sitting allowances may be available for these committees.

3. WORLD BANK THREATENS TO CUT OFF AID

 PNG's dire financial situation has been considerably worsened by a World Bank threat  to withdraw all financial support if the Government does not implement its controversial  Forest Conservation Project. The World Bank's regional forestry representative, Andrew Bond, has warned National Forest Board chairman Dr Wari Iamo not to hold a board meeting to discuss fast-tracking of forest project approvals. The stand-over tactics of the  World Bank place the Government in a very difficult situation, as it desperately needs overseas budget assistance to the tune of some K400 million. However, acceptance of conditions attached to the US$39 million FCP could result in the loss of thousands of jobs and closure of numerous forest projects. "I believe we are in a Catch-22 situation," says the chairman of the PNG Forest Board, Dr Wari Iamo. Government sources said Forest Minister Patrick Pruaitch had asked the World Bank to justify the economic benefits that would flow from the FCP, but bank executives had failed to do this. The FCP was hurriedly approved in the final days of the previous government.

 The National has previously reported that the FCP will not result in any direct economic benefits besides the proceeds from a conservation trust fund, which one analyst said was the World Bank's equivalent of PNG's cargo cult mentality. "The current return to gross national product from production forests is in the order of US$270 million, according to World Bank calculations," said Bob Tate, executive officer of the PNG Forest Industries Association. By contrast, he said, "the only returns from the FCP's conservation trust fund are estimated at K13 million or US$3 million." The FCP clause that industry participants are convinced will lead to closure of many projects, especially those that are locally owned, revolves around a new World Bank requirement that all forestry projects put up a performance bond equivalent to 40 per cent of annual operating costs. "Everyone in the industry is trying to survive. This is just an extra financial burden on an industry that is not viable.

 The World Bank wants to make sure we cannot survive," said James Lau, general manager of the Rimbunan Hijau group. He said: "This could be the final nail in the coffin for the forest sector. The Government needs to clarify its position because foreign investors are prepared to work with them. But we need to know if this industry has a future in this country." The head of Turama Forest Industries, K.S. Lu, described the performance bond requirement as "obscene" and said: "We really have no options. Either we shut down or comply. This condition is blatantly telling the forest industry to shut down and go. What is the point of this clause... it is telling us you are not welcome." Mr Lu said World Bank country representative Klaus Rohland's comment, as reported in The National yesterday, that the forestry sector was "the most corrupt" was "a statement without any justification." "This is the World Bank mentality. They want to shut this industry down, but we have to try and protect our investment in this country." A senior industry representative said World Bank forest policy in PNG had everything to do with the personal agendas of its key forestry personnel, including its head of forestry, Jim Douglas, Mr Bond and the FCP project manager, Peter McCrae. "These people are determined to shut down this sector regardless of the hardships it will cause thousands of people," he said. (Source - National - 25/10/2002).

4. $US5.7m ADB FUNDS FOR COASTAL FISHERIES PROJECT

 The Asian Development Bank has approved a $US5.7 million loan to Papua New Guinea for a project to put the fisheries sector on a more sustainable basis. As well, it will directly help 30,000 coastal households which depend on fisheries for their livelihood, the bank said in a news release.

 The Coastal Fisheries Management and Development Project aims to improve management of the country's valuable coastal fisheries resources, especially in overfished areas. It will also create earning opportunities for fishers by providing links to established commercial fishing centres. The project targets major commercial fish-landing areas and their surrounding communities in the four marine provinces of Milne Bay, Morobe, New Ireland and Western. Each of these areas possess favourable conditions, the bank said. They include supporting infrastructure, a relative abundance of fish resources, potential for increased value from small- scale fisheries, and proximity to commercial fishery centres. The total cost of the project is $US9.5 million. Aside from the Asian Development Bank loan, the balance will be funded by the Papua New Guinea Government. The news release said the project will:

CONSTRUCT a longline wharf in Lae, Morobe;
DEVELOP fishery management capacity of the most efficient service provider in the selected provinces, and promote co- management of resources;
PROVIDE basic infrastructure such as landing facilities, access roads and transit houses as well as sanitation facilities for the safety of women fish vendors and workers using harbour facilities; and
UNDERTAKE an HIV/AIDS prevention campaign.
Benefits of the project include increased catch value of fish and other marine products and time and cost savings from improved fish-landing access. As well, there will be increased marketing opportunities for small boat operators and fish and marine product vendors using the harbour facilities. Women, who constitute the majority of fish workers, will benefit not only from the project's economic impact, the news release said. They will also gain from improved health and safety due to HIV/AIDS prevention measures and improved sanitation and shelters, it said. Women fish workers are a high-risk group for HIV/AIDS as they frequently have to stay away from home when selling their products at the market and are vulnerable to assault. The ADB loan will come from its concessionary Asian Development Fund. It will have a term of 32 years, including a grace period of eight years. The interest will be 1 per cent per annum during the grace period and 1.5 per cent per annum thereafter. Papua New Guinea's National Fisheries Authority will be the project's executing agency. (Source - Post Courier 29/10/2002).

5. SUPPORT FOR PLASTIC BAN

 There is overwhelming support for a total ban on plastics in Papua New Guinea. In a talk- back show on YUMIFM radio this week, callers from around the country phoned in to vent their frustrations at thoughtless and deliberate dumping of plastics. Callers were critical, especially of negative effects of dumping plastic bags on the environment. Chairman of PNG Coastal Clean- up Association Inc Jamie Maxtone-Graham, who was interviewed on the program, said he was overwhelmed by the growing concern and support by ordinary people over the wanton dumping of plastics. Mr Maxtone-Graham was on the talk-back show to inform the general public about PNG Coastal Clean-up Association's clean-up day on Saturday, November 2.

 Mr Maxtone Graham is appealing to the Government to legislate for the immediate and total ban on plastic bags. At the same time, Mr Maxtone-Graham congratulated the management of Stop  'n' Shop's Boroko branch for taking the initiative to revert to using paper bags. "I also encourage all other super - markets to follow suit," he said. "The incidence of wanton disposal of rubbish and especially plastic bags poses a massive environmental threat to our society. "It is uncontrolled and an eyesore and makes our place look grubby and filthy and (is a) threat to safety and health." All it requires, Mr Maxtone-Graham says, is for the National Government to  sponsor a Bill to legislate for a total ban on plastic bags. He said PNG could not set up a recycling plant because the amount of plastic bags was not sufficient to sustain such an operation. "Therefore, there should be a total ban imposed." He suggested existing plastic bag manufacturers to consider paper bag production.     Mr Maxtone-Graham said paper bags were biodegradable and were environmentally friendly. Plastic bags clog waterways, beaches and streets and make towns and cities look ugly and  unattractive, he said. He urged the public to seek further information on the "ban plastic   lobby" by contacting the Secretary, PNG Coastal Clean-up Association Inc: PO Box 106, Waigani, NCD, Tel: (675) 323 1532, Fax: (675) 3254234. E-mail: ekibikibi@conversation.org
 (Source - Post Courier - 30/10/2002).

6. FOOD INDUSTRY REVIEW

 PNGCCI is calling a meeting of food industry representatives to attend a meeting on food  matters. Items on agenda will be "Use by" dates, food regulations, hygiene standards and Sanitary and Phyto-sanitary measures. This meeting will be held at POMCCI office on Wednesday, 20th November 2002 at 12.00pm.

1. NCDC BOARD

The Chamber congratulates the new members of the NCDC Board headed by Mr Jack Pidik. Mr David Conn, President of the Port Moresby has finally been nominated as "business" representative after at least two years of pressure to have POMCCI recognised, for an interim period of 3 months from 20th September 2002 - 19th December 2002. The Board comprises Susan Setae as Deputy, Mek Onguglo (community), Charlie Moi (community), Michael Malabag (trade unions), Chairman of Motu Koita Council plus two others, as well as the four NCD members as ex-officio (Lady Carol Kidu, Sir Mekere Morauta, Bill Skate and Casper Wollom. The first Board Meeting will be held on Friday 1st November .

2. FIREWORKS

Business houses who are yet to contribute to the fireworks for the 'New Year', please get your contributions rolling in as we do need to plan ahead for the occasion.So far the actual total amount donated is K4000.00. The account number once again is 1000-187540, BSP Commercial Centre, Gordons. You can deposit at any BSP Branch quoting the account number.

3. LEARNING JAPANESE

For those of you interested in speaking Japanese, classes are held every Saturday at Fire Services Head Office - 2nd Floor Conference Room, on Okari Street, Boroko, opposite Roundhouse. There is a morning session from 9:30am to 11:30am and an afternoon session fronm 1pm to 3pm. Fees are K5 per hour per person. Students and Children from five years are encouraged to attend at K3.50 per hour per student/child. For further information you can contact Alphonse Bade on 325.6962 or email abade@datec.net.pg.

4. POMCCI MEMBERSHIP

Please be advised that 2002 Membership subscriptions expire 31 December 2002. Therefore we would like to offer all our valued members, Membership 2003 renewal rates at 2002 rates, if you pay between now and 31 December 2002. If payment is received during this period then this subscription will take you through to 31 December 2003.

2003 Renewal invoices will be sent out to all members by mid November 2002.

Our total membership base year to date is 165 members. As at 31 December 2001 we had 155 members however, 11 of those did not renew in 2002. During 2002 we have had 21 new members join us and we welcome them all, these Members are as follows:

A1 Auto's, APIS Investments, Asia Pacific Surveys, Boroko Motors Century 21, Cummins, Inter-Oil Limited, John Sargent, Kurada No. 8, Niugini Oil Company, Pacific Equities & Investment Ltd, Pacific Queen Limited, PNG Institute of Accountants, Posman Kua Aisi Lawyers, Raine & Horne PNG, Rathlin Pty Ltd (Shady Rest), SBS Electrical Limited,Simtec Limited, Southern Cross Pumps & Irrigation, Tengdui & Associates and WR Carpenters Ltd

5. CHAMBER'S COLUMN

The Vice President, Ken Dunn has just returned from a 7 day seminar organised and funded by the World Intellectual Property Organisation and the Singapore Government. The relevance of intellectual property management has become a critical tool for all governments to protect the rights of individuals and corporate entities operating within the commercial boundaries of the country.

6. CONTACT YOUR EXECUTIVE

As well as the normal email address of pomcci@global.net.pg you may also contact members of the Executive directly on the following :

 President  : David A. Conn  president@pomcci.org.pg
Vice President : Ken Dunn   vice-president@pomcci.org.pg
Secretary  : Rachael Thomson secretary@pomcci.org.pg
Treasurer  : John Locke   treasurer@pomcci.org.pg

 7. WALK FOR LIFE

The 2002 walk for life was organised and co ordinated by director Lynn Walsh.
A very successful PricewaterhouseCoopers 2002 Walk for Life Corporate Challenge which is held annually in association with the Sir Buri Kidu Heart Institute, was hosted last Sunday. The Walk is an initiative designed to encourage community and corporate participation to help raise funds solely for the Sir Buri Kidu Heart Institute, and this years event achieved just that, K50,000 big ones were raised with approximately 700 participants taking part. Many of our members sponsored corporate teams and displayed their corporate colours on t shirts especially printed for the event. A photo of a Mobil Oil participant is attached below. It is great to see this level of corporate and community participation, during these difficult times.

Participants times will be published in the Post Courier next Tuesday.

Thank you to all who took part.

8. WORLD SERVER NETWORK

Looking for creative & talented managers & producers who can work on a part time basis World Server Network TV (WSN TV) is a global education, entertainment and media organization. Its goals are to bring low-cost higher education and entertainment to the worldwide population, and to promote the spread of broadband internet access that will make it possible to achieve those goals.

Would you like to work in teams to develop online business, produce videos, television shows, and wide range of multimedia content on a part-time basis in an online environment? Are you interested in part-ownership of an innovative, forward-looking company?

Would you like to recruit and manage networks of thousands of talented, highly-motivated, creative individuals?
 

WSN TV are looking for creative, highly motivated Executives, Managers, Executive Producers, and Members who either wish to design, develop and publish multimedia content in their areas of specialisation in the team of WSNTV100, or to teach in the newly opened WSN100 University at http://wsn100university.com on a part-time basis from home and on a profit-sharing basis.

More information is available by clicking the links below:
Information for Prospective Members at http://wsntv100.com/memberinfo.htm
our Ph,D/MBA curriculum and reward at http://wsntv100.com/reward.htm,
our co-ownership opportunities at http://wsntv100.com/wsntvemp.htm and.
Evaluation Methodology at http://wsntv100.com/evaluation.htm.

Should you have specific questions about WSNTV or what your role with WSNTV could be, you can contact Mr Chris YH Kim (Chairman) at info@wsntv100.com. web http://wsntv100.com
 

9. 7TH PNG MINING & PETROLEUM INVESTMENT CONFERENCE

This conference hosted by the PNG Chamber of Mines & Petroleum will be held from 2nd - 3rd December, 2002 at the Sheraton On The Park Hotel, Sydney, Australia. For further information you can contact Margaret Reid on ph 02 8904 0800/ 02 8904 0802 or email mreid@conference-organisers.com.au

10. MELBOURNE CUP

Lastly and not the least happy punting to all you punters! Good Luck.

24th October 2002
 

1. PNG GAMING BOARD
The Chamber has been requested to nominate a representative for the Gaming Board.  POMCCI members are advised to submit your interest  to the secretariat for  final approval by  the Executives.

2. FRIENDS IN GREECE ?
 From November 3rd 2002  to call Greece  from abroad you have to add the digit 2 after the prefix of  Greece +30 Example if calling  a Thessaloniki subscriber Before   +30 310 535333   After    +30 2   310 535333.  Additionally from January 19th 2003 the initial 0  of the Greek mobilephones is being         replaced   by the digit 6.  Please update your telephone directories and inform anyone concerned.

3. PNG INSTITUTE OF ACCOUNTANTS
The PNGIA & CPA Australia PNG Branch will be holding their annual conference at the Holiday Inn         Hotel, Port Moresby on 14th & 15th November, 2002. For futher information you can contact the PNGIA     on 321 2105/3201891

 4. PNG MEDIA COUNCIL
 The media council  will be holding their Bi-monthly media breakfast meeting at the Crowne  Plaza  on Wednesday 13th November 2002 commencing7.00am - 9.00am.  Cost of   breakfast K45.00 per person. For futher information please contact John Rei or Odila on 320 2978/ 79 and Peter Aitsi or Justine Kili on 320 1996.

 5. BREAKFAST MEETING
A good turn up at our last breakfast meeting held at the Holiday Inn Hotel on Tuesday 22nd October, 2002.  This was a joint effort of the PNG Institute of Directors & POMCCI. You can obtain a copy of the paper presented by Mr John Bartselaar from our website http://www.pomcci.org.pg. POMCCI would like to thank PNGID for their contribution. We will advise you of our next breakfast meeting which will take place after the handing down of the National Budget in November.

 6. EXECUTIVES AT WORK

*
Our Vice President  is currently in Singapore  with IPA representatives attending a meeting on intellectual property organised by WIPO.

*
 President will be leaving our shores  on the 5th November to attend a Commonwealth  Association of   Corporate Governance meeting in Sri Lanka representing PNGID.  Too close to Afghanistan.  Wish  him a safe journey.  All costs for both trips are met by the hosting organisations and do not access  POMCCI funds .....just in case you thought we were on junkets at your expense.

*
 Director James Chin has been liaising with OVTA -APEC Ltd to conduct entry level IT courses in the country.  These will start in early November and will be funded by OVTA Japan to the tune of 2.09m Yen . If you have staff who might be interested  in such courses please indicate your interest to us by email on pomcci@global.net.pg.

*
Directors Darren Young and WIlliam Lamur, with the President, have re-opened dialogue with NCD management on a wide range of issues in the city. The roads issue appears to be a financial one as well as unexpected costs arising out of deteriorating water/sewerage infrastructure along HubertMurray Highway. The whole issue of waste management was addressed as wasthe safety issues of streetlighting and the condition of city markets and general city appearance especially at the airport entrance, downtown and on the new seawall at Healey Parade. Despite rumoursto the contrary Ela Beach road will not proceed at this stage.  Workwill finish at the end of there placed  seawall and a new roundabout opposite Territory Cellars. Once contractual difficulties arer esolved with SMEC the Downtown Plan will be rejuvenated, including newideas for development of Ela Beach. If you have an issue you believ should be addressed in your capital city let us know and we will add it to the agenda of our next meeting.

*
Directors John Locke and Lynn Walsh have installed a new accounting system in the office and with a new computer and staff Elma Kila and Rita Abe on deck we are well-established
to build on previous gains.

*
President attended, with PNGCCI President, and representatives from Manufacturers Council, Australian HC  and PNG-Chinese Business Association, an initial Meeting with DG Migration and consultants from Clayton Utzon a proposed revamping of the Immigration Law . Matters raised inevitably spilled over into Labour and work permit issues , but also included fees, people-investor friendly legislation , permanent residence , citizenship , border issues, abuses of migration system and passports.  POMCCI Major comment was that any new legislation should be unequivocal as much as possible, removing the abuse of varying interpretation with speedy dispute resolution procedures . If you have anycomments you wish to make we are happy to receive them and pass them on or you may correspond directly with Clayton Utz as follows:
 John Carrol (Partner) jcarroll@claytonutz.com
 Stephen Argument(Senior Associate) sargument@claytonutz.com

*
Apologies to all those who received a virus from our computer. We literally tried everything to eradicate it but it proved to be an  elusive little sucker and kept re-appearing despite our anti-virus software. Thanks to Global Technologies for finally tracking down the hiding place of the JSFortnight virus and eliminating it.

7. MELBOURNE CUP
The Rotary Club of Boroko in conjunction with the Inner Wheel Club of Port Moresby is hosting the annual Melbourne Cup Luncheon at the Crowne Plaza Port Moresby on Tuesday 5th November 2002 commencing 12.00pm.  A sumptuous buffet lunch and an opportunity to win a range of prices.  Each admission ticket will be eligible for a door price and as a bonus each table will receive a complimentary ticket for the Melbourne Cup sweep which offers amajor price of K10.000.00 and a minor price in excess of K6000.00.

                    Cost of Corporate Tables - K900.00 for table of 10.
                    For reservations  please contact Mr Sanjay Shah on 323 5000
                    or Mr Allan Crossman on 3087001.

 8. FIREWORKS
Although there has been a lot of promises regarding new years fireworks, response  for financial assistance from the business community  has been very slow . The committee needs to reach a minimum target of K50,000.00.  So far the following business houses have contributed.  EMTV, PNGFM, Monian Group, Kenmore Group, Metals Refining Operations, Hugo Canning, PricewaterhouseCoopers & Coral Sea Hotels. You can deposit your contribution onto the following account "NEW YEARS FIREWORK BSP A/C 1000 187540."

9. VAT - WORD OF APPRECIATION
POMCCI would like to express deep appreciation to PricewaterhouseCoopers & Deloitte Touche Tohmatsu for all the information provided to us regarding the recent VAT issue.

10. NCD BOARD
POMCCI indicated to the former government that they felt business interests in the city should be represented by the President or his nominee.  This appears to be coming to fruition and we therefore seek suitable nominations from current members for consideration by the Executive to be our nominee .
Written applications by 31st October 2002.

11. MEMBERSHIP / 2003 FEES
As of January 2002 we have a total of 21new members.  Our latest inclusion as of October are SBS Electrical & John Percival Sargent, POMCCI welcomes these two new members.
 For renewal of membership fees for 2003 the Secretariat will be sending out invoices by the end of October 2002.  Those members who have joined as of August 2002 will have their membership renewed at the end of October 2003.

 12. UNIONS CHALLENGE BUSINESS
We really have to shake our heads at recent comments by PEA chief, Napoleon Liosi, that it is time for businesses to show their commitment to PNG and not keep blaming public servants who work in trying circumstances with poor resources . While we agree the latter may be the case, the state of the public service has become moribund, and this happened well before resources ran out. Business is not just here for the good of their health, they are driven by totally different considerations like profit and demands of shareholders .Public servants on the other hand are just that , PUBLIC SERVANTS , there to provide
service to business and the public at large. Business in this country will never prosper with inefficient public service machinery  not functioning to supply the needs of all taxpayers.

Business has shown outstanding commitment to this country and allegations of excessive repatriation of profits and funds need to be substantiated , rather than scaremongering to an educated populace. There are laws in place to counter this and if the unions believe it is happening let them show us the figures. Business can flourish when public servants do their jobs diligently and with commitment to their country .In many areas it is a sad fact that the bureaucracy is an impediment to good business.

1. IPBC/NASFUND

"The Chamber has expressed some dismay at the recent changes to the IPBC which appears to remove independent directors and puts the power once again in the hands of political appointees.

Coming so early, in the term of the new government and given the calibre of many in NEC, and their apparent inability to stop what we see as a retrograde step, there is a strong feeling that this does not augur well for the future. Compounding this is the pessimism engendered by the statements about supposed "incursions" at NASFUND.  We remind all contributors that their silence the last two times saw their savings and future pensions slip into the morass. Now, not later, is the time for all contributors to jump up and down and demand NASFUND be left free of meddling hands. We look forward to a strong statement from government that the hard-fought gains for independence at NASFUND, Central Bank etc will be respected and maintained. In the absence of such a statement it will be impossible to convince our membership to be confident of the future and the message they will get is that "the more things change, the more they remain the same.”
 

2. AIRPORT TERMNAL FACILITIES FEE

David Conn, President of the Chamber, released a press statement on 25th September, regarding the intention of the Office of Civil Aviation to apply a "security fee" of K30 on international travellers. This fee is in addition to the K30 terminal facilities fee. The imposition of such a fee is not supported by the Chamber. We suggest that all businesses voice their objections to the introduction of the proposed fee.
 

3. NEW POMCCI EXECUTIVES

Following the resignation of two members of the Chamber Executive we have recruited Paul Barber (Managing Partner, Deloitte Touche Tohmatsu ) and Richard Kassman as new executive members. Both are experienced business people and will add to the strength of the Chamber.
 

4. THAI TRADE DELEGATION

A Trade Delegation from Thailand met with members of the Chamber Executives last Tuesday. The   delegation was headed by the Thai Ambassador to Indonesia, HE. Chaiyong Satjipanon, who expressed a commitment on the part of the Thai Government to develop stronger economic ties between PNG and Thailand. The PNG Consul for Thailand is Loani Henao, who can be contacted on 3201500.
 

5. BUSINESS SURVEY

The Chamber recently conducted a business survey through the e-news. In total we received 35 responses. The information is to be collated and analysed and we will then address the various issues that members have highlighted.
 

6. BREAKFAST MEETING

Our next breakfast meeting is set to be held on Friday 4th October. Lady Carol Kidu will give a presentation various NCD issues.
 

7. DATE ON PACKAGED FOOD

The Food Sanitation Council is in the progress of reviewing the draft Food Regulation for possible amendment before promulgation. As previously advised, Section 15 of the draft Regulation required that a date be indicated on the label of packaged food products.  The Manufacturer's Council called on various members to provide to the Council their preference to either a "best before" of a "use-by date" to be placed on all packages. Of course both of these have different meanings and consequences. The response clearly revealed there was still confusion over this issue.

A general meeting was held at the Council's office amongst various representatives from the food industry where by the following understanding for the date printed on packaging, be adopted by all effected parties. The options are:

1.Best - before date: Items with a low risk element and not poising any threat to the consumer if                               sold past or consumed past this date.

2. Use - By Date:  Mandatory for high risk products.

3. Extended Life Shelf: To apply to products that are extremely low risk and able to be consumed       (Five years - No labelling applicable). The Council would appreciate if all food manufacturers/retail outlets etc could provide an identification as to whether, under your product, your preference in adopting a best before or a use by date. Extended life shelf to be considered upon rustication of your position.

The Manufacturers Council of PNG and the PNG Chamber of Commerce are strongly represented on the Committee by Mr. Andrew Smith - GM Goodman Fielder International (PNG) Ltd. In order to ensure that a very clear and decisive framework is adopted by the Committee, they are urgently seeking your response on the above subject matter above by Monday 30th September 2002.

You can contact Maryanne McDonald, Chief Executive at the:

Manufacturers' Council of PNG
P.O Box 598
PORT MORESBY NCD
PAPUA NEW GUINEA

Tel: (675) 325 9512
Fax:(675) 323 0199

Sir Michael Somare - Prime Minister
Dr Allan Marat - DPM and Minister for Trade and Industry
Lady Carol Kidu - Minister for Welfare and Social Development
   Bart Bhilemon - Finance/Treasury
   Dr Puka Temu - Public Service
   Sinai Brown - National Planning and Monitoring
   Patrick Pruaitch - Forestry
   Sir Peter Barter - Inter-Government Relations
   Michael Laimo - Education
   Don Polye - Transport and Civil Aviation
   Sasa Zibe - Minister for Environment and Conservation
   Yawa Silupe - Internal Security (Police/CIS)
   Alphonse Morial Willie - Science and Technology
   Mark Maipakai - Justice
   Robert Kapaol - Lands and Physical Planning
   Andrew Baing - Fisheries
   Alois King - Culture and Tourism
   Peter O'Neill - Labour and Industrial Relations
   Peter Oresi - Correctional Services
   Moses Maladina - Agriculture and Livestock
   Gabriel Kapris - Works
   Ben Semri - Communications and Information
   Yarka Kappa - Defence
   Melchior Pep - Health
   Sir Moi Avei - Petroleum and Energy
   Sam Akoitai - Mining
   Sir Rabbie Namaliu - Foreign Affairs and Immigration
   Yuntuvi Bao - Housing

   Speaker of Parliament - Bill Skate
   Opposition Leader - Sir Mekere Morauta

 2.  NATIONAL LEGAL CONVENTION, 5 TO 7 SEPTEMBER 2002

 A representative of POMCCI attended the above and papers presented at the convention are available at the POMCCI office. The theme for this year's convention was "Family and Rights of the Child".

3. POMCCI OFFICE
Ms Rita Abe is now back at the POMCCI office on a temporary full-time basis. Members can contact her on the usual numbers.

 4. BIG MONEY IN FISHING

Members may not be aware that there is big money to be made in the Fishing Industry. While most other economic sectors showed mainly income and export earning declines, the fishing industry went the other way. According to the Managing director of the National Fisheries Authority Dr Antony Lewis,  the export value of the products climbed to K216 million in 2001 - more than double since 1997. He said these export figures did not include the value of tuna caught by foreign vessels fishing under access arrangements. The total market value of the PNG catch is estimated at a minimum of K400 million

 5.  BIG CARS

The Chamber is concerned at reports that senior provincial and civil servants are buying top of the range four wheel drives, all costing more than K300,000 each.  This sends a wrong signal to the rest of the population and will not reflect positively on the government's austerity drive. As a member of the Community Coalition against Corruption, we would like to see these kind of money on things like disaster relief and improvement of basic services. We cannot accept the logic that the purchase of these cars were due to the "normal replacement" cycle. If leaders do not lead by example, how can we expect the rest of the population to follow the
rules?

 6.  NATIONAL ECONOMIC SUMMIT

Parliament will be organising a National Economic Summit on 25-26 September. If you would like to take part, contact the Clerk of Parliament.

 7.  PARKING ATTENDANTS?

POMCCI would like NCDC and the Police to do something about groups of children operating as "parking attendants" in downtown Port Moresby, especially around the Champion Parade. These gangs come up and ask for money when you park you car with the implicit threat that your car may be scratched if you do not pay. If we do not do anything about this problem, there is every reason to believe that these children will "graduate" to much more serious criminal activities when they grow up.

8.  URGENT APPEAL

Earthquate victims from Wallis Island and Tarawai Island in East Sepik urgently need a medical assistance with drugs, and plenty of fresh drinking water and extra supplies of water in containers.  If anyone in PNG can help please call Mr Mursau, Manager of the Bank of South Pacific in Wewak on 856.2344 or Mr Alphonse Krau on 323.9763.
 

9.  COMMONWEALTH BUSINESS FORUM

Michael Mayberry has been invited to join the Deputy Prime Minister, Dr Allan Marat and Secretary for Trade and Industry, Mr. Jonathon Soten as part of the official delegation attending the Commonwealth Business Forum in London from 22nd September.  Due to the high cost of travel, we have declined the invitation, however if there are any Chamber members who will be travelling to London at this time and would be able to represent the PNG private sector at this forum (at their own expense), please contact the PNGCCI office on tel: 321 3057.

CHANGE OF GOVERNMENT

The Port Moresby Chamber of Commerce wishes to congratulate the new government on their appointment especially the new Prime Minister, The Honourable Sir Michael Somare. The Chamber is looking forward to working with the new government towards improving the business environment.
 

MEMBERSHIP

A number of new companies have become members of POMCCI, they are:  Kurada No. 8, Raine & Horne PNG, Inter-Oil Limited, PNG Institute of Accountants, A1 Auto's, Simtec Limited, Pacific Equities Investment Ltd & Southern Cross Pumps & Irrigation.  Your membership certificates have been signed and will be forwarded as soon as membership numbers have been allocated.
 

BUSINESS SURVEY

 The Chamber is conducting a survey of businesses in Port Moresby and we ask that all members, and non members if they wish, complete the attached survey. The survey is straight forward and will take no more than 10 - 15 minutes to answer the questions. Completion is anonymous and voluntary. Upon completion please forward by fax 3214203 When we have the responses collated we will advise the results through the E-News and they will also be made available to appropriate government departments.
 

AUSTRALIAN PRIME MINISTER'S VISIT

"A business luncheon was held on 21st August with the Australian Prime Minister, Hon John Howard, the guest speaker. Luncheon was organised by the Australia & PNG Business Council. There were approximately 250 attendees and Mr Howard was extremely well received. He spoke on the strong emotional and economic relationship between the two countries and encouraged the new government to adopt necessary policies and initiatives to rejuvenate the PNG economy. He stated that privatisation is a difficult policy for any country to accept but a beneficial option in the long term.
 

PORT MORESBY BOOK FAIR

Port Moresby Book Fair - Friends of the National Library are sponsoring he Book Fair to be held at the Crown Plaza from the 5th to 8th September. The Book Fair is to be held in conjunction with Literacy Week. For information contact either Rita Stott (drtmg@daltron.com.pg) or Cathy Eminoni (ceminoni@online.net.pg).
 

MEDIA COUNCILOF PNG

The Media Council of PNG is hosting a breakfast at the Holiday Inn V111 Bells Restaurant on 12 September 2002.  The cost of breakfast is K35 per person and is aimed at raising funds to purchase equipments for the University of PNG Journalism School.  The guest speaker at the breakfast will be HE Tatsu Takana, Ambassador of Japan.  All are welcome to attend.

For reservations you can either call John Rei on 320.2978 or Justin Kili on 320.1996.
 

INDONESIAN TRADE EXHIBITION

Trade Exhibition is being held in Jakarta from the 5th - 8th September.  For further information please contact:-
P T , Kristamedia Pratama
Attention - Ms Christine SudjiePhone - (62-21) 6345861, 6345862, 6334581 or Fax 6340140.
Email : kristamp@dnet.net.id.
 

MACAO INTERNATIONAL TRADE AND INVESTMENT FAIR

October 24th - 27th, Location - Macao Tower Convention & Entertainment Centre and Macao Landmark Convention & Exhibition Centre. Contacts - Mr Jackson Chang (853-7989132) or Ms Gloria Ung (853-7989227)
 

AIRFARES

Air Niugini have announced a 7.5% increase on all airfares and excess baggage costs on all domestic routes.  The increase will be effective as of Wednesday 28 August.  Air Niugini's Acting CEO, Steve Wilkes said the increase was approved at a meeting in Port Moresby by the Air Niugini Board.  The increase comes about due to the continuing decline in the Kina value.
 

 TARRIF ON SALT

The Commissioner of Customs has advised the Manufacturers Council that the tariff applicable on imported salt is NOT 40% as has been applied by some customs officers. The Commissioner has formally advised all customs staff.
 
 
 

National Elections

The Chamber again expresses its disappointment and disgust in the absolute farce that the National Elections have turned into - especially in some areas of the highlands where violence and intimidation of voters, and the police, is the order of the day. The Lae Chamber of Commerce has carried out a survey of its members - 44 member companies responded and it disclosed that of 1540 employees eligible to vote 62% were unable to cast their vote.

Reasons given for not casting a vote were:

1 - name not listed on common role 70%
2 - turned away from polling booth due to closure 18%
3 - intimidation at polling booth 1.5%
4 - not interested in voting 3%
5 - other reasons 7.5%

The whole scenario has once again presented a poor international image which does not encourage external investment.
 

POMCCI Library

* The Port Moresby Chamber office in Monian Tower has a comprehensive library that includes journals and reference materials that relate to business and commerce in PNG and the Asian and Pacific regions.  All are welcome to make use of the library. Please contact Elma Kila on 321 3077 for more information.
 

Breakfast Meeting

* The next Chamber breakfast is to be held on 31st July. Our guest speaker is Wilson Kamit, Governor of the BPNG, who will do a presentation on "January to June 2002 Economic Statement". Venue is the Holiday Inn at 7:00am at a cost per person of K35. If you have not received an invitation contact the Chamber office.
 

Public Holiday

* Next Tuesday 23rd July is Remembrance Day and a public holiday.
 

Leadership Seminar

* The University of Western Sydney is conducting "Leadership for Quality" seminars in Lae and Port Moresby during October. The seminars focus on enhancing the leadership and skills / knowledge of middle managers within public and private sector organisations over an intensive 5 day program. They will be conducted at the Lae International Hotel (Monday September 30 - Friday October 4) and Gateway Hotel in Port Moresby (Monday 14 October - Friday 18 October). Cost is K700 for 2 - 4 participants or K580 if 5 or more participants. For further information contact Geoff Berry on Ph 0561 2 9289 9138 / 4758 6617 (AH); fax 0561 29211 0321; email Burkill@msn.com.au
 

Careers Expo

* A Careers Expo is being held on the ground floor of Deloitte Tower from Wednesday 21st August through to Friday 23rd August - contact Claire Hilton at the PNG Chamber of Commerce (321 0566) for more information.
 

IPA

* The IPA has commenced the Intellectual Property Office of Papua New Guinea to provide more protection in the areas of copyrights, patents and trademarks. Both Acts relating to Intellectual Property were gazetted on 4th April and came into effect on 1st July 2002. The respective acts are Copyright and Neighbouring Rights Act 2000 and Patents and Industrial Designs Act 2000. These Acts will provide more protection to local industries and individuals.
 

War Against Corruption

"The Community Coalition Against Corruption, of which the POMCCI is a member, has reported that the "corruption hotline" has resulted in over 300 individual complaints and pieces of information from the general public with some being used in the media and some referred to the Ombudsman Commission. The CCAC is to be congratulated on their initiative and success, although there is still a long road ahead. They have renamed the "corruption hotline" the "2002 election hotline" and propose to use it as a vehicle to receive election related information from the general public. All this information can then be collated and used to support Sir Anthony Siaguru's call for an independent audit on the 2002 elections."
 

Tourism

The Tourist Promotion Authority is now issuing a monthly newsletter titled "PNG Tourism Update".  It will provide comment on what is happening in the area of tourism and also used as a medium to promote tourism domestically and internationally. Their effort is commendable and all contributions are welcome from local operators  and the general public. Correspondence can be addressed to the Editor (Attn Malum Nalu)on Ph 3200211, Fax 3200223 or email - info@pngtourism.org.pg"
 
 

27 June 2002

For those members unaware POMCCI President, David Conn, lost his daughter a few weeks back following a very short illness. She was a delightful young lady who will be missed by all who knew her. All our sympathies are with David and his family in this period of sadness.

2. 2002 Elections

This year’s elections are a very poor reflection on the organisational abilities of the Electoral Commission. Delays in delivery of ballot boxes and papers on voting day caused utter chaos and inconvenienced numerous employers who allowed their staff time off to vote.

Why were the elections held on a workday and not a Saturday, which would have been more practical? What happened to the PMV's? - would appear that they stopped to make it difficult for supporters of "other parties" to cast their votes.

Missing names on electoral rolls, intimidation of voters, violence including alleged rapes and murders, and other matters mentioned in the press do not enhance PNG's international image. It is understood that there was substantial financial aid provided to ensure that the elections were properly run. The new government will need to address the problem immediately and work towards a much improved situation in 2007.

3. Unroadworthy Vehicles

A member of the Chamber has expressed his concern at the apparent increase in the number of unroadworthy vehicles using the roads around Port Moresby. Now that we have been blessed with freeways (some with working lights) it would seem appropriate that the overall standard of vehicles using our new roads should be better policed. Maybe the Department of Transport and Police should address this matter. They might also look into illegal PMV stops.

4. Careers Expo

Through an initiative of the Port Moresby Rotary Club a Careers Expo is to be held from 21st to 23rd August 2002 on the ground floor of Deloitte Tower. More details will be provided in following E-News.

5. "Port Moresby in Brief"

The Chamber has compiled a brochure to primarily encourage interested parties to consider investment in Port Moresby. The brochure is of good quality and provides details of what is necessary to commence business in PNG. Copies are available to members should they wish to pass them on to overseas parties. Please contact the Chamber on 3213077 and speak to Elma.

6. Chamber Objectives

The Executive will be putting together a list of objectives to address - there are numerous issues that require attention however we will try and focus on those that we feel may be achievable over the remaining term of our tenure. Any thoughts from members would be welcomed; please forward comment to the Chamber office by email pomcci@global.net.pg or facsimile: 321 4203.

7. Business Survey

At the next Chamber breakfast in July we will be conducting a "survey" to get some feedback on how businesses in town have performed over the first six months of 2002. We will use the information provided to keep the appropriate government bodies aware of the real situation of the economy in Port Moresby.

8. World Trade Organisation (WTO)

The WTO Secretariat under its technical co-operation programme is holding a WTO Rules Agreements Seminar for Papua New Guinea in Port Moresby from 2nd to 3rd July 2002. The three day seminar will cover topics under anti-dumping, subsidies and countervailing measures and safeguards. The seminar is a result of PNG's earlier request to the WTO for assistance on developing and improving trade remedies legislations for PNG in the identified areas. Representatives from PNGCCI and POMCCI will be attending. Anyone interested in attending should contact the PNGCCI office on Tel: 321 3057.

We apologise for the gap between the last ENews and this issue. The Port Moresby Chamber needs the support of the local business community to achieve any success. Please encourage associates to become members of the Chamber.
 

 1. WORK PERMITS - HAVE WE GOT IT ALL WRONG ?

Is it just us, or our members not having problems with issuance of work permits ? The Secretary of  Dept of Labour & Employment has responded very strongly to our comment in the press last week on  perceived problems in the system.

 In a strongly worded reply  she states that DOLE " totally refute the allegations contained in your press  release in relation to the processing of Work Permits " Other comments from DOLE response  include " I  am concerned over reports I have received wherby the POMCCI has gone around requesting industries  and agents representatives to obtain infomation on the DOLE processing of Work Permits." and " I am  also advised that the PNG Chamber of Commerce did not endorse the views expressed by yourself. "  The letter concludes " we have decided to issue a press statement to Post Courier for publication. This  press release has been necessitated by the misleading information circulated in the media which must  be corrected. "  A full copy of  the response from DOLE and my subsequent point-by-point response is  available  to all members from the office. We seek members comments and letters of support. If we  have got this  wrong, then naturally we shall issue an unqualified apology  to DOLE.

 2. AUSTRALIA TRADE OUTCOMES

 Copies of Australia's Trade Outcomes and Objective Statements for 2002 are available from the office for  any member interested.  Points worthy of note : Australian exports grew 8% in 2001 to $154 billion, outperforming every other  country in East Asia..  Currently only 4% of Australian businesses -25,000 companies - export.One in five jobs now relies on  exports.Gains from more open trade put an extra $1000 into the pockets of each Australian family every  year since 1986. Impressive stuff, now if only PNG could  tap into that sort of success.

 3. PACIFIC ISLANDS FORUM SECRETARIAT

 Investment Policy Officer, Henry Sanday, visited the POMCCI on Monday 20th May. Several Forum  Secretariat programmes were discussed. Of particular interest  to members are the Industry  Development & Training Project  and the Marketing Support Fund. For more detailed information visit  their website at www.forumsec.org.fj..

 4. BREAKFAST MEETING

 Next breakfast meeting is scheduled for Thursday 31st May at Holiday Inn. We hope to confirm that IPA  will speak to us on the new Business Licencing Information System (BLIS). More details as this  develops.

 5. EXECUTIVE EDUCATION PROGRAMS

 The University of Michigan  offers high level executive training in Hong Kong. The next courses are  "Negotiation Strategies and Skills" from Aug 21-23, and "Finance for the Non-Financial Manager  from  Sept 16-20. Not cheap, but if you want to seek more information email enquiries  to  Enquiry1@umich.edu  for courses running in Asia.

 6. INFORMATION FROM LAE

 The Lae Chamber advises that due to runway works at Nadzab there may be schedule changes to that  perennial flight favourite PX 108  and PX 109. No other flights are affected at this atge, but best to check  with Air Niugini  to avoid any inconvenience.

 7. NATIONAL  GAZETTE

 Copies of the National Gazette can be obtained from the Government Printers Office at Elanese Street off  Lawes Road behind the Post Courier. Or for annual subscriptions  contact GPO, Po Box 1280, Port  Moresby (K110 per annum )

 8. NEW CONSUMER LEGISLATION

 A copy of the new Independent Consumer and Competition Commission Bill 2002 (draft of 21/02/02 )is  available for perusal at the office or you may pay for a copy to be photo-copied for you. In essence  it is  an Act to provide fro the establishment of an Independent Consumer and Competition Commission the  functions  of which include the promotion of competition and fair trading, the regulation of prices for  certain goods and services, and the promotion of consumers' interests.

 9. EUROPEAN UNION EDUCATION PROJECT

 A message from PNGCCI -" there is currently a steering committee in place for an EU project in  education worth Euro 24 million.They have approached the PNG Chamber to nominate two people,  preferably with a bit of knowledge in building and construction to join the committee. " If you have an  interest please contact Claire Hilton at pngcci@global.net.pg..

 10. OPENING BANKS ON SATURDAY MORNINGS ?

 We have received a request from Ela Motors to examine the possibility of banks opening on Saturday  mornings. Some of us old-timers can remember when that used to happen. We would welcome  comments from other members and business houses before we approach the Commercial Bankers Association for their thoughts on this issue.

 11. INTERNET AND EMAIL POLICIES

 Businesses need to be conscious today about the importance of having standardized policies and  procedures to ensure that your staff know the ground rules. If you are interested in such  a  policy  contact TechRepublic for the IT PROFESSIONALS GUIDE TO POLICIES AND PROCEDURES. For  more information contact http://cgi.zdnet.com/slink?171912

 12. HINTS FROM TELIKOM

 Did you know you can program your phone to a specific time using REMINDER CALL(WAKE UP CALL)  ? Simply Press Star Button (*) 55, (*) button and press hour/min (hhmm) and then the hash key (#) ..Wait for the confirmation tone and hang up.  To cancel  press the hash key (#), 55, hash key(#), wait for tone and hang up.

 Or to redirect calls to your voicemail or another number use Call Forwarding.Remember your phone will  not ring , except for Reminder Calls already booked. Press Star Button (*), press 21, Star Button (*),  Dial the number you wish calls forwarded to and then Press Hash (#). Wait for the confirmation tone and  hang up.  To cancel press the hash key (#), 21, hash key (#), wait for the confirmation tone, hang up and your  service will return to normal.

 13. SECRETARIAT CHANGES

 We have been unable to reach agreement with our current Secretariat providers, FES-MIR  to renew their  contract for another year.We have been very happy with their services and thank them for their  contribution to the growth of the POMCCI in the last year.Arrangements will be put in place to maintain   services to members and we apologise in advance if there are any delays or inconvenience during the  changeover period. If you have pressing issues, you may always contact the President directly on  daveconn1@global.net.pg. Any member who  has a company in mind or personnel who may be  interested in providing this service  or seeking employment  is welcome to contact us.. The new contract  available is attractive and commensurate with middle-senior management remuneration around town,  with several incentives built in to enhance the package.

 1. NEW EXECUTIVE FOR POMCCI

 Re-elected for a third term as President, David Conn , with a new look  executive comprising Vice President, Ken Dunn from BSP,  Lynn M. Walsh from  PricewaterhouseCoopers, Grant Fagan from Deloitte Touche Tohmatsu, Dick  McCarthy from Forest Industries Association, Ken Harvey from Remington  Technologies,  James Chin, Rachael Thomson from  Kenmore Group, Darren Young from Steamships Property, Ronald Clunn from Coca  Cola Amatil, and William Lamur from Origin Energy.
 

 2. WHAT'S NEW ON THE WEBSITE

 (a) for those of you who missed our President's speech/annual report, go to his page at pomcci.org.pg

 (b) the latest risk assessment for PNG by Auspacific Investments Pty Ltd

 (c) new links (go to links page)
 - PNG ecoforesty
 - Greenpeace PNG (there is a new report available on the website  concerning logging in PNG)
 - PNG gossip newsletter

 (d) for the latest on BPNG, go to their website via a link on the front page of our website. Look for their logo  on the right hand side.

 3. YOUR EXECUTIVE WORKING HARD FOR YOU.

 The President and two other executives held a meeting with World Bank  representatives on programmes to assist the private sector in PNG. The World  Bank has a dedicated person who is drawing up a plan to strengthen the  private sector in PNG. She will be sending her draft work plan to the POMCCI  for comments later in the year.

 The President and one other executive met with Mr Parkop, a candidate in  Moresby North-West. Mr. Parkop requested the meeting to explain his platform  for the forthcoming election.  He was told that POMCCI will not endorse any  candidates in the coming election and we are more than happy for them to  come and explain their policies and platforms.  Members who wish to see a  copy of Mr. Parkop's platform should contact the POMCCI office. During his  recent speech on e-governance at the PNGID Seminar,  the President,  in a n  attempt to flush out the "policies" of the many new parties, made an open  offer to all political parties to publish on our website,  for  public information, the policies which they feel will bolster and increase  economic growth in the country.  The offer still stands, but to date nobody  has taken us up on it.  Do these parties actually have any policies?

 This week we will hold discussions with Port Moresby International School  and officials from Erindale TAFE in Canberra on Vocational.  Training  Courses they wish to collaborate on. These courses will incorporate relevant  workplace components and this may be something we will approaching members  to assist with in the future. More on this as it develops.
 

 4. POMSOX MONEY SHOW / PNG INSTITUTE OF DIRECTORS SEMINAR

 The recent corporate governance seminar organised by PNGID and the Money  Show were huge successes. Congratulations to our staff and all those  involved.  Papers presented are available on our website or on the  Directors site at www.id.org.pg

 5. BREAKFAST MEETINGS

 Our next breakfast meeting will be the last Friday of May.It is scheduled  to be an address by the IPA on the new Business Licensing System (BLIS) If  you wish to nominate someone to be our speaker, please e-mail your  suggestions to Rita at pomcci@global.net.pg. Many companies have senior  executives who travel into Port Moresby who could have topics of interest to  our members.

 6. PORT MORESBY BUSINESS INFORMATION

 POMMCI will shortly be publishing a pamphlet with a brief summary of  business information about Port Moresby and PNG.  Called "Business in  Brief",  it is a colourful advertisement for our city and was put together  by our hardworking VP Ken Dunn and his committee.  Copies will be  distributed widely and to all missions and tourism operators overseas to  give potential investors/ visitors a realistic look at what life is like in  our capital city.   If you would like copies for your overseas offices or to  display in your local office please contact Joyce for copies. Companies  wishing to do a separate print run with their own company logo may also  contact us and we will negotiate with the publishers on their behalf.

 7. NCD MATTERS

 One of our executives raised the issue of traffic lights on top of the Poreporena Highway. The location of the lights mean that drivers have no  time to stop.  We will be raising the matter with NCDC and the National Road  Safety Council. If you would like to comment on this issue, please e-mail  us.   The Chamber welcomes the long-overdue work on the dilapidated Hubert Murray  Highway from Badili to Erima. We have yet to be advised of the procedures  used in allocating the work which seem unusual in their diversion from  another contract, and we wonder yet again if proper planning procedures were  followed.

 Good to see the amount of cleaning up going on around the city,  although we  suspect much of it is election -related We have yet to confirm the rumour  that several thousand new names have been added to the NCD payroll recently,  presumably these temporary contractors.  We know of at least one short-lived  roadblock at Kaugere set by youths intending to levy motorists,  who had not  been paid for cleaning work done. The Chamber would strongly condemn use of  public funds or the resources of certain public utilities to favour any  particular candidate in the city elections. Any Chamber member who has  information on such activities should contact us so that we may refer the  matter to the relevant investigative authorities. We also condemn those  candidates and their supporters who are infringing on people's basic right  to vote as they wish without coercion and we trust the NCD voters will elect  clean candidates with unblemished records who do not resort to mud-slinging  and racial slurs,  but rather propound sensible, achievable programmes for  the benefit of all city residents.

 No response yet from City Hall on our correspondence asking that POMCCI be  the nominees of business in the city on the new NCD Board,  Planning  Committee and Physical Planning Board. We also await replies on our offer to  coordinate community projects on tree planting at Ela Beach and painting of  the new seawall at Healey Parade. Our city administrators are public  servants who should continue to provide service to the ratepayers,  not  wasting their time, and our money,  playing politics with the host of  candidates for NCD seats.

 8. ELECTION LIQUOR LICENCING

 POMCCI is still heavily involved in negotiations with other industry bodies  on the proposed liquor restrictions during the election period.  While we  are naturally supportive of and regulations which will make the election  period a safe and peaceful one for all voters,  we have raised questions on  the sense of penalising legal, legitimate traders who abide by the law at  all times,  while the real problem is,  and will be more so during the  elections, that of illegal black markets and operators who continue to  flaunt the law in front of the authorities.

 9. CACCI MEMBERSHIP

 The confederation of Asia Pacific Chambers of Commerce and Industry is  offering Special Life Time Memberships. Pay US$1000.00 and you (or your  company) becomes a CACCI member for Life. Or you can elect to join CACCI as  an Ordinary Member for US$250.00 a year,  which will be converted (at no  cost) to a Special Life Time Member after four years.

 What do you get for your membership? You get instant access too more than 17  Chambers all over the Asia-Pacific region, business contacts and invitations  to all CACCI meetings and conferences.  CACCI Membership is useful for  businesses looking for export opportunities. PNG Chamber of Commerce and  Industry is a primary member of CACCI and we attend all their meetings. If  you would to know more, contact Claire at PNG CCI Tel 321 3057 or  pngcci@global.net.pg or visit the CACCI website: http://www.cacci.org.tw/
 

******
COUNTRY RISK UPDATE

An economy prone to liquidity problems, with declining solvency

PNG country risk rating reflects the government’s and economy’s recurrent cash flow and foreign exchange difficulties, and worrying signs that, despite abundant natural resource wealth, the country could gradually become ungovernable and insolvent.

Thanks to its export revenues and profitability, the resource sector is somewhat insulated from the country’s macroeconomic instability. But it faces other, political risks.

Speculative grade, according to other raters

The OECD rates the country 5 out of 7 (1 best, 7 worst).

Moody’s and S&P both give PNG low speculative grades - Moody’s B1, S&P B (these are long term foreign currency ratings).  S&P lowered its rating to B from B+ in August on concerns about PNG’s failure to attract needed new investment in order to arrest declining mineral output.  It cited in particular the stalemate over the gas pipeline to Queensland.

Dun & Bradstreet rates PNG 5b on a scale of 1a - 7d.

Short term outlook problematic

Disappointing tax revenue and external financing, traceable to the world economic slowdown, commodity price falls and disagreements with multilateral creditors, are straining the government’s budget and the balance of payments.  As a result, the kina has recently started to slump badly, foreign currency reserves are falling, and fiscal arrears are again surfacing.  According to the PNG Treasury, the government will need to carry out severe spending restraint till funds from the World Bank, Japan and Asian Development Bank, delayed by disagreements over conditionality, arrive.  If the government doesn’t exercise such restraint, it will have to breach its overdraft limit with the Bank of PNG, or its limit on T-bill issuance, and in the process risk setting off a large currency depreciation or foreign reserve drain.

The economy has also fallen into recession, with the government forecasting in its 2002 budget, brought down on 27 November, a 3.3% shrinkage in real GDP this year.

Next year could see a return to growth, but country risk will remain high.  The government's 2002 budget forecasts economic growth of 1.2% in 2002, thanks to a strong agricultural rebound (5.1%) spurred by rallying commodity prices.  Mining and petroleum output is forecast to sag 2.1% assuming both the pipeline and the Ramu nickel mine aren't developed. Other sectors are forecast to stay flat.

The chief risk in 2002 centres upon the government's budget.  This banks on extensive asset sales (partial privatisation of Elcom, Telikom, Air Niugini and the Harbours Board, estimated to bring in K303m) and high oil prices (US$23.50/bbl, compared with current prices of US$19.50/bbl and an IMF forecast of $21/bbl for 2002) to finance a largeish deficit (estimated by the government at 2% of GDP, but by other informed sources at closer to 3%) .  The snag is the assumed sale proceeds and oil prices may not materialise, leaving the government with a large funding shortfall.  This would oblige it either to print money and risk setting off a balance of payments crisis; or to borrow domestically and push up interest rates; or cut spending; or accumulate arrears.

Medium term outlook - a country in terminal decline?

Fiscal and balance of payments strains look as if they will intensify over the medium term, as population multiplies and resource revenues look set to decline.

With population expanding at 2.7%pa, growth in demand for government services and for imports is strong.
 

Yet resource output, and export and government revenue from resources, are all on a sharp downtrend, while exploration spending is at an all-time low.  PNG's oilfields are estimated to cease production in a decade, at a loss of about US$690m pa in export revenue at current production levels, prices and exchange rates.  Meanwhile, annual gold production will drop from 73 to 17 tonnes by 2012, according to the PNG Chamber of Mines and Petroleum, for an annual loss of export revenue of US$466m at current production levels, prices and exchange rates.  By 2011, the Misima, Ok Tedi and Tolukuma copper/gold mines are all likely to be closed.  Porgera will probably be in the final phase of processing low-grade stockpiles after ceasing mining in 2007.  Only Lihir will still have a life ahead of it ; it is likely to stop mining in 2014, but plans to process stockpiled ore till 2023.  The forecast loss in mining and petroleum exports represents about 25% of today's GDP, 65% of export revenue, and almost 25% of internal revenue.  Development of the Ramu nickel deposit and the gas pipeline would partly offset the decline.  Unfortunately, according to public reporting, a Ramu development is looking increasingly unlikely, although the pipeline could get up.  The Kainantu (3 tonnes a year) and Hidden Valley gold deposits (10 tonnes a year) would slow the rate of decline, but would not completely arrest it.  The current bleak outlook stands in contrast with the past, when PNG managed to stumble serendipitously upon new resource ventures as existing ones were closing (eg. Porgera and Kutubu after the Bougainville closure in 1989, Lihir after the 1994 balance of payments crisis).

As export and internal revenue decline, further foreign currency and fiscal crises are likely to emerge.  Worse, the public debt burden may become unsustainable, so that at some point the PNG government crosses over from being periodically cash-strapped to insolvent.

Sir Mekere? Another downside risk is the likely ouster of the reform-minded Morauta government at elections to be held next July.  While Sir Mekere has failed to avert budgetary and external liquidity problems and recession, he has had the global economic slowdown to contend with and difficulties - not all of his own making - with the World Bank that have led to postponement of some badly-needed official lending.  He deserves credit for important stabilisation and structual adjustment measures without which PNG's economic circumstances would now be even worse - notably legislation to make the central bank independent that has in turn improved monetary control and brought down inflation and interest rates; stronger financial sector supervision; an open skies aviation policy; privatisation, starting with the sale just recently of PNG Banking Corporation to the Bank of South Pacific; and successful conclusion for the first time ever of an IMF standby program.  Apart from Sir Mekere, no politician is apparent with anywhere near the same commitment to reform.

Political risk - high and increasing

PNG political risk has been progressively escalating over the years.  The reasons include a breakdown in law and order in both towns and the Highlands, and the appearance of unconstitutional, extra-parliamentary and sometimes violent challenges to the government's authority, notably the March 2001 military mutiny in protest at defence budget cuts and the mutiny over the Sandline mercenaries in March 1997, both of which prompted government backdowns.  Under Morauta, law and order has not improved, though with his introduction of greater central bank independence and oversight of MPs' electoral funds, abitrary decision-making and corruption have lessened.

Exchange transfer blockage. Transfer blockage risk is low - moderate.

Under current foreign exchange retention guidelines, agricultural and fishing ventures are allowed to keep six months of projected foreign currency needs abroad, and mining and petroleum ventures three months.  The guidelines give primary processing ventures some insulation from the periodic currency crises that PNG succumbs to.

Still, the insulation is limited. In times of foreign exchange scarcity, such as 1994 and 1999, governments have sought to lower offshore retention limits in order to force hard currency back offshore.  There is a fair risk that PNG will again succumb to crisis - and that governments will again seek to restrict offshore retention limits.

Asset damage.  This risk is high.  Several projects have got dragged into either tribal feuds (eg Hides, Porgera), landowner/miner disputes (eg Tolukuma, Mount Kare), or secessionist disputes (eg Bougainville).  In Bougainville's case, the mine had to be completely written off.

Expropriation.  Outright expropriation without compensation isn't the chief concern in PNG, although an attempt by a previous government to buy more equity in the Porgera mine at a price based on historic cost, not market value, perhaps belies this statement.  The main risk is one of creeping expropriation - the appropriation of income and market value from a project through arbitrary and retrospective change of taxes and regulations .  This has been most prevalent during fiscal crises, when governments have been especially keen to raise extra income.  Counteracting this tendency, however, has been the recent introduction of so-called fiscal stability regimes for new investment projects.

John Brooks
Auspacific Investments Pty Ltd
Country Risk Unit Unit

1. CORPORATE GOVERNANCE SEMINAR
POMMCI and the PNG Institute of Directors are organising a one day seminar “Improving Corporate Governance in Papua New Guinea”  on Thursday 15 April 2002 at the Crowne Plaza Hotel.

Conference Convenor - Mr. Ray Clark, Secretary PNGID
  Morning    Chairperson for the Morning Session - Ms. Winifred Kamit - Vice President PNGID

 7.45 - 8.30  Registration    Secretariat
 8.30 - 8.45  Welcome and Introduction   Ms. Winifred Kamit   Vice President - PNGID
 8.45 - 9.05  Opening Address-    Mr. Ilo Geno, Chief Ombudsman
 9.05 - 9.50  Legal Responsibilities of a Corporate Director Mr. Rio Fiocco  Partner - Fiocco, Posman and Kua
 9.50 - 10.20  Refreshments
 10.20 - 11.05   NPF - A Case Study     Mr. Rod Mitchell    MD - National Provident Fund
 11.05 - 11.45   Media Ethics and Corporate Governance  Mr. Peter Aitsi    President - Media Council of PNG
 11.45 - 12.00   Summation
 12.00 - 1.00 60   Lunch

Afternoon    Chairperson for the Afternoon Session - Mr. Brian Hull - Vice President PNGID

0 1.00 - 1.40    E-Governance    Mr. David Conn
President - POM Chamber of Commerce and Industry
1 1.40 - 2.20    Corporate Governance - A Mining Perspective Dr. Moseley Moramora   President - PNG Chamber of Mines and Petroleum
2 2.20 - 2.50    Refreshments
3 2.50 - 3.30  Corporate Governance - A Banking Perspective Mr. Noel Smith   President - PNG Commercial Bankers' Association
4 3.30 - 4.10   Business Ethics
Dr. David Lea    University of PNG
5 4.10 - 4.45   Summation and Action Plan
  5.00   6.00     Annual General Meeting of the PNG Institute of Directors Inc.
  6.00     Cocktails
Fee: K80 (Inclusive Of Refreshments And Lunch)
For more information, contact,  Ray Clark, Hon. Sec. , PNGID,  Tel : 3221043/3202522 – Email: instdirect@daltron.com.pg rayclark@daltron.com.pg

2. BANK CLOSURE THREAT
POMCCI is concerned about statements made by the banking community in Mt Hagen that they will shut down all the banks in Mt Hagen if there is another bank robbery. We feel that this action, although understandable, is too harsh. The banks should not punish the entire community for the few rotten apples.

On the other hand, bank robberies are so common in Mt Hagen that only one bank has not been robbed. Even the security firms are not safe. Surimax has suffered two big robberies and both were inside jobs. We therefore urged the national government and the police to do something. Enough talk , this is the time for action.

The community must also play its part by helping the police- everyone knows who these bank robbers are and the police must be informed. As long as their actions are sanctioned by their wantoks,  residents of Mt Hagen will wake up one morning with all the banks closed. The closure of the banks will mean an instant death to the business community in Mt Hagen.

3. “ BUYING A PIECE OF OUR NATION’S FUTURE”
POMSOX, POMCCI, BPNG, NCDC, CAPITAL STOCKBROKERS AND KINA SECURITIES will be holding the 2002 Money Show on 24th April 2002 at the Holiday Inn Hotel .

The OBJECTIVES are:
• Promote investments by Papua NewGuinean individuals and businesses through the Port Moresby Stock Exchange
• Enhance the profile of the listed companies by creating greater awareness of the entity and its products
• Encourage companies to consider listing on or raising capital through the Port Moresby Stock Exchange
• Develop a culture of “investing” in Papua New Guinea by improving communications with the public
• Stimulate the expansion and growth of the capital market in PNG.
• Encourage members of the private sector to promote their products and services

The tentative programme is as follows:

7:30am - 8:30am Registration
8:30am - 8:35am  Opening Prayer,  Major Andrew Kalai ,Salvation Army
8:35am - 8:45am  Welcome Address  Mr. Gerea Aopi , Director , Pomsox
8:45am - 9:10am  Png Success Story  “Oil And Gas Sector”  Mr. Peter Botten
Managing Director Oil Search Limited
9:10am - 9:30am  Png Success Story “Finance Sector”  Mr. Noreo Beangke
Managing Director Credit Corporation (Png) Limited
9:30am – 10:00am  The Singapore Experience  Professor Malick Sy, Phd, Mba, Bba
Professor Of Finance, Rmit University , Advisor & Consultant To Singapore Stock Exchange
Director, Kuala Lumpur Stock Exchange, Malaysia
10:00am - 10:15am Questions & Summation
10:15am - 10:30am  Morning Tea
10:30am - 11:00am The Silent Revolution  Mr. Rod Mitchell , Managing Director
National Provident Fund
11:00am - 11:25am  Investment Principles & Identifying Opportunities
11:25am – 11:35am  Questions And Summation
11:40am – 12:00pm Keynote Address  Hon. Sir Mekere Morauta, Kt., Mp
12:00pm – 12:15pm Questions
12:10pm Lunch

Fee:
K50.00 Per Person (Inclusive Of Refreshments And Lunch)
Reservations:
Joyce Or Sokara On Ph: 321 3077/321 3254 Or Fax: 321 4203
Email: Pomcci@Global .Net.Pg
 

4. POMCCI AGM
 The 47TH Annual General Meeting Of The Port Moresby Chamber Of Commerce & Industry will be held at The Crowne Plaza Hotel Ballroom On Wednesday - 10th April, 2002 Commencing 5.30pm.  As there will be a cocktail reception after the Annual General Meeting, we would be grateful if could confirm your Attendance either by Fax: 321 4203 or Email: pomcci@global.net.pg to assist us with the catering arrangement as well as for registration of your attendance.

5. STEADY KINA?
We spoke too soon. Since last week, the Kina has fallen by about AUD 2 cents to just under AUD 49 cents.

 1. POMCCI AGM
 The 47TH Annual General Meeting Of The Port Moresby Chamber Of Commerce & Industry will be held at The Crowne Plaza Hotel Ballroom On Wednesday - 10th April, 2002 Commencing 5.30pm. All current Officers of the Executive Committee, Except in the case of the Immediate Past President, shall retire but be eligible for re-election.

 Candidates for election to the Executive shall sign the nomination form attached and be nominated by one Member and seconded by another.

 A duly completed nomination form shall be submitted to and received by the Secretary on or before 5.00pm, Wednesday 27 March 2002. These forms should be hand delivered to the Secretary, POMCCI, 6th Floor, Monian Tower, Douglas Street, Port Moresby, NCD.

 All candidates duly nominated, if not in excess of the number required, shall be declared by the Chairman at the Annual General Meeting to be duly elected. Nominations from the floor will be accepted in the absence of sufficient written nominations.

 § Each Member shall have one vote; and

 § Voting by proxy shall not be permitted; and

 § Any Member whose subscription is three months in arrears
 shall not be entitled to vote or participate in the deliberations of
 the Chamber.

 Any business or motion (other than that stated in the attached Agenda) that Members wish to be addressed at the Annual General Meeting shall be considered to be due if sent to the Secretary at least seven (7) days before the date of the Annual General Meeting, that is, by Thursday, 28
 March 2002.

 As there will be a cocktail reception after the Annual General Meeting, we would be grateful if could confirm your Attendance either by Fax: 321 4203 or Email: pomcci@global.net.pg to assist us with the catering arrangement as well as for registration of your attendance.
 

 2. POMCCI BREAKFAST MEETING
 The next Business Breakfast meeting will be held at the HOLIDAY INN HOTEL on Thursday 28th March, 2002 7:00am - 9:00am Speaker will be Mr Joseph Kupo, QPM ,Commissioner of Police who will do a presentation on "Issues relating to Police Operations including current law & order situation." If you want to attend, contact Joyce or Sokara on 3213077 or email: pomcci@global.net.pg

 3. NEW CONSUMER WATCHDOG
 A new entity called the Independent Consumer and Competition Commission (ICCC) has been created to look after the rights of consumers. Present laws do not allow the existing Consumer Affairs Council (CAC) to prosecute shop owners and service providers when complaints have been registered in the past. The CAC will join up with the ICC. We welcome the establishment of the ICCC but we need more information. We hope that ICCC will get in touch with business organisations such as POMCCI to explain its roles and how we can assist each other.

 4. K15.6 MILLION FROM EU
 Euro 5.2 million (or K15.6 million) was released by the European Union to the Papua New Guinea Government last month. This amount represents the second tranche payment after PNG fulfilled all the conditions envisaged in the Financing Agreement for the release of the second instalment under the European Commission SASP 2000-2001. Any money coming into PNG is good news and we congratulate the government for meeting all the conditions.

 5. STEADY KINA
 The Kina has been quite steady, trading