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

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Welcome.... Port Moresby Chamber of Commerce and Industry extends a warm welcome to our new website. To visitors from overseas, a special welcome to what we hope will become a vital gateway to the businesses of our nation's capital and the exciting market that is Papua New Guinea.

What better way to state our predominant aim than to quote from our Code of Ethics:

" ...to conduct business in a spirit of free enterprise, mutual trust and support such that everbody may gain from vibrant business activity and the ensuing economic growth and stability "

As we take our first steps in the new millennium , we will focus down on the major issues which affect the conduct of successful and profitable business in the National Capital District. To do this we will need regular interaction with you, the members, and to this end this website should become a primary point of
contact. We urge you to use it to help us keep abreast of issues which you feel are vitally important to your business.

The Chamber aims to be your voice in the various forums which address the issues of good governance , infrastructure, social welfare and consultation with authority. We hope to break down the perception of distrust which many, on both sides , feel exists between the business community and government. The well-being of our society, in PNG as well as in Port Moresby, can only be nurtured by sound economic development and constructive dialogue between the engine-room of economic development and the bridge of the ship.

The business community has a wide range of skills to offer in partnership with government , and especially as our country moves forward to the celebration of our Silver Jubilee of Independence in 2000, it becomes incumbent upon us all to participate in the continuing development process In the slide to cynicism many of us have experienced , it has become all too easy to see the problems of a very young developing nation. I trust you will work with us to find constructive solutions to those very problems.

We have a sound, energetic and pragmatic Executive in place and we look forward to working with you, and for you, throughout the first year of the 21st Century.
 

PRESIDENT’S REPORT

Welcome to the Annual General Meeting of the Port Moresby Chamber of Commerce. As you are aware I was unable to attend last year’s meeting due to delays in processing of my work permit, so it is indeed a pleasure to be with you in body as well as spirit this year.

The Chamber has remained vocal on what we perceive to be inefficiencies and unnecessary delays in the system. We remain engaged with the Chief Secretary’s Impediments to Business Ctte which promises radical changes in regard to Permanent Residency and extended work permits for genuine or existing investors. It is disappointing to note however that this process has been proceeding for over a year now and only now are we hearing that a submission is ready to go to Cabinet.

This has created renewed uncertainty, and the cessation of meetings with DOLE on the replacement of the TLP system with an alternative regime handled through National Training Council, makes us wonder if there is genuine commitment in government to the type of reform the business community is demanding. Rest assured this issue will remain firmly on our radar for the following financial year.

We have always maintained that government must look after the companies who have shown a long-term commitment to this country, as well as encouraging those who wish to come in. It is most discouraging for existing operators to see their costs of operation increasing by the day, and the bottom line sliding off the scale.  It is all very well for government to talk about 'export driven' revivals and new investment, but the country still faces a serious threat of disinvestments in the domestic economy as businesses close, either because it has all become too hard, or major international operators disinvest by selling out to their local management.

The recent period of political and economic stability has been a welcome breather for business and we urge caution to all those who would countenance disrupting that. Ironically , the danger with a renewed upsurge in the economy is that businesses who have been swithering about continuing will decide that it is better to go out on the upswing , rather than wait for they perceive will be the  inevitable downturn. This may sound all very pessimistic but the hard fact of life is that PNG simply does not exude an aura where business can confidently feel secure in the mid-term, never mind the long-term.  Until business feels that political stability will remain, macro-economic issues stay firm , and that the costs of operating will stabilize , or at least rise in a gradual and manageable manner, we cannot realistically expect sustained economic growth .

There is a feeling of optimism at the moment, and a recent IMF review team commended PNG on its handling of macro-economic issues over the last 18 months, but we must not forget these gains are built on high commodity, oil and gold prices and are driven by external factors over which we have no control. We welcome the continued fall in interest rates, although it does not appear much of the excess liquidity in the financial market is permeating down to increased borrowings by business in NCD. Perhaps the banks and financial institutions are still hedging their bets or could it be they can find nobody to lend to? Single figure inflation is yet another encouraging sign, and Central Bank records decade-high growth in employment, although we can find no such signs in the NCD.

The recent Business Forum in Cairns was permeated with confidence and optimism, and the presence of senior ministers was welcomed by all. If this is what a short period of political stability and some sensible tax reform can do, it would be a very dour cynic who would not ask for more of the same, please .

In the field of governance, we remain committed to the Coalition Against Corruption, and  as does all of PNG, we mourn the loss of  Sir Anthony Siaguru, a valiant proponent of transparency and good governance, whom we will all miss very much for his charming and witty carriage of these vital national issues. I am sure we would all hope that we will not lose any more of these defenders of the common good before we see a final resolution to such ongoing sagas as the Nasfund Enquiry.

Tragically, the cynical view that those implicated in this outrageous affair, will soon be walking the streets free, gains more credibility by the day. It will be a sad day indeed, if with all the efforts and resources poured into this enquiry we could not secure prosecution of the major players.

From a Chamber perspective, I believe we can claim continued, solid growth through 2003-2004.  I wish to record my personal thanks to all members of the Executive who have given of their time willingly and freely to serve our membership. Membership remains over 170 financial members, with some still to renew despite the downturn in business, closure of several major operators and the merging of others. 2004 fees were held static as we continue to grow our financial base from the historical lows of 5 years ago when almost all of our assets were depleted. The new accounting system was introduced, and there have been several problems, mainly in regard to staff and training, and this has led to several issues being raised by the auditors which we will address immediately by outsourcing to a major accounting practice.

I would like to record our sincere thanks to PWC, and Stephen Beach for the extra work they have done to ensure our accounts were audited promptly to enable us to present the end of year figures for your examination this evening.

TheChamber continues to represent your interests on a multitude of issues in our community, many of these on behalf of the PNG Chamber of Commerce, which we continue to support with 15% of our annual fees. The PNG Chamber was more strident in its commentary on national issues last year and this is a development we welcome and actively encourage.

As I stated last year my major interests remain with NCD and the input we can have to the NCD Commission, through my membership of the F&E, Law & Order, Building, Physical Planning and Hiri Moale Festival Committees, so we did not nominate for any senior positions on the PNGCCI Executive. We are represented on all major NCD committees, including Liquor Licencing, Works and Transport, Social Services and Botanical Gardens .

The position as Business Representative on the NCD Commission, has now been confirmed by Minister Peter Barter, and is for a period of 4 years. Some would say you get less for murder, and certainly encouraging good governance and the rule of due process and procedure, makes life exciting , I remain confident we can  make a significant impact in the nation’s capital .

You will all have seen the recent press on an NCD Enquiry and this is complete and has moved on to look at the affairs of the Motu-Koita Council. While I have doubts these enquiries are addressing systemic issues it certainly has put a lot of people on notice that times are changing. Already the Board has agreed to substantial reductions in redundant staff (hangovers from political appointments) and a restructure of staffing in the organisation. The Board has found the recent imposition of revenue sharing with Central and Gulf an added drain on an already restricted budget. It has been resolved that this decision will be challenged legally, before any other province decides they would like a share of the city’s revenue.

Funds for road maintenance have had to be cut to preserve vital services, but serious attempts are being made to do repairs, and it has been agreed that a complete rebuild of Stanley Esplanade, with a concrete-reinforced pavement will proceed in the very near future. The Waigani City Centre Zoning Plan has been approved and gazetted, thus the upsurge in building in that area. The Re-Zoning maps for the city have been completed and are available for public inspection and comment (a copy is available at Mutual Rumana and POMCCI).  Shortly, members of the business community in the Boroko/Tabari Place precinct will be approached for  input on a proposed revitalization in 2005  of the shopping area and mall at the behest of the NCD Physical Planning Board . The Board has also started negotiations with CAA regarding several issues at the Jacksons Airport, including a redesign of the approach road to two lane to divert through traffic away from the terminal buildings.

Many remain cynical about our close engagement with City Hall, but I feel we must be part of the structure to see any worthwhile change.  Business is a significant stakeholder in NCD and through the revenue raised from VAT we are also a significant financial stakeholder.  We simply cannot afford to be on the periphery sniping; we must be part of the process.

We welcome new NCD/Central Police Commander, Tony Wagambie and Metropolitan Superintendent, Mark Kanawi and look forward to the same close relationship we had with their predecessors, Jeffrey Vaki and Emmanual Helai, who we wish well in their new appointments. Dialogue has already been established with them in regard to several known hot spots around town, including the Aviat area, Portlock Street, Airvos Avenue, Gordons and Hohola markets. We also expressed our outrage at the recent shooting up, by police, of an innocent woman driver on the Freeway and were assured the culprits had been identified and charged. Unlike the incident several years ago at the Lamana Gold Club, involving drunken police, we trust the offenders will be dismissed from the force.

Contact with members continues to be through the website, regular E-News, special E-News and Chamber breakfasts. Various issues mainly associated with DOLE, Lands office, Customs queries and charges by State entities have been referred by members and have been taken on as major issues to be dealt with by the Executive.

We retain the relationship with Ginigoada Business Development Foundation, through my chairing of the Board, and as well as generating income for the Chamber, it allows us to be involved in small business, skills development and micro finance initiatives, now throughout NCD,  which could serve as models for development of the informal sector throughout the city.  We continue to urge a concerted and sensible plan of action to revitalize our city markets,   To see the issue in our markets as only a law and order issue is an inadequate and knee-jerk response to an issue which should be beneficial to all city residents.

We continue to give active support to the PNG Institute of Directors and  AESOP Business Volunteers, Peter Griffin. Their website remains  an extensive resource center for any business in PNG. With PNGID and through my links with CACG we are currently running a 5 Day Company Directors Course at Holiday Inn with 34 participants sitting for the examination, and this will be followed by 3 One Day Financial Management Courses for Non-Accountants next week.

I would like to record our thanks to the Overseas Vocational Training Association (OVTA) in conjunction with APEC, for funding the recent IT Training Courses we ran in Port Moresby. Four basic courses were run, attended by 150 participants free of charge, at the premises of Daltron and Global Technologies. These were followed by our first Networking Course for 15 participants and we have agreed to wok with OVTA again on a series of courses in 2004-2005.   Apart from the obvious IT benefits, the courses have injected some fresh business into the community and the Chamber has benefited by levying an administrative charge. Many of the participants were not Chamber members, but were small enterprises whom we hope will become future members of the Chamber.

POMCCI was a major sponsor of the “Lukim PNG Nau “  Tourism Expo in March and this was a  tremendous success with 31 exhibitors . We have agreed to support this initiative in 2005. I would like to record our thanks to Lyn Walsh who was a leading light on the Organising Committee. We will have representation on the Hiri Moale Festival Committee and wish to support what we feel can be a world-class event to be held in the city in October. I urge all business houses to actively support this wherever they can.

2003-2004 has been another solid  year for the Chamber  and with sustained interest for the new Executive positions, and the return of many familiar faces,  I am confident we will continue to strengthen the body of the Chamber and improve our lobbying power on a wide range of issues which are pertinent to our members.  We must continue to attract more members and strengthen our voice to improve the business climate in the NCD.

I thank the staff and executive for all their support through the last year and look forward to working with you in 2004-2005.
 

The Port Moresby Chamber of Commerce remains committed to its role in the city and to being part of a coalition of stakeholders who wish to see the quality of life rise not only for business entities but for the ordinary residents of the city.  We retain an optimistic attitude, as many who visit our office from overseas will attest, and a strong commitment to progress.

The Port Moresby Chamber of Commerce is committed to serving its members and residents of the city. Our logo is ‘Doing Business in National Capital District’ and nothing will divert us from this course.

Finally, I wish to humbly record my gratitude for being allowed to nominate for a fifth term as President. (I assume this is because nobody else wants the job!)  I thank you sincerely for your continued faith and support.
 

David A. Conn Esq, MBE
President (2000-2004)
 
 
 

Welcome to the Annual General Meeting of the Port Moresby Chamber of Commerce. The meeting of 16th April was deferred until today to ensure the annual audit was completed and to accommodate my travel arrangements, which has become doubly embarrassing as due to work permit issues, which have been on-going since 20th February, I have had to leave the country for the first time in many years, and will hopefully be able to return sometime this week.

The Chamber has been very vocal this year about what we perceive to be inefficiencies and unnecessary delays in the system, and being personally affected, at significant cost to my business, which like many in today’s climate, is struggling to survive, this can only strengthen our resolve to continue to lobby for radical changes to a system which not only hinders the operators who have been here for many years, but must surely deter genuine investors interested in Papua New Guinea. (Although on the lighter side I trust you will allow me time to get back in-country before I make too much noise).

We have always maintained that government must look after the companies who have shown a long-term commitment to this country, as well as encouraging those who wish to come in. It is most discouraging for existing operators to see their costs of operation increasing by the day, and the bottom line sliding off the scale, while new investors are feted by those in power and, on the face of it at least, seem to encounter few of the difficulties we domestic operators face. It is all very well for government to talk about 'export driven' revivals and new investment, but the country is facing a serious threat of disinvestments in the domestic economy as businesses close, Because it has all become too hard, or major international operators disinvest by selling out to their local management.

The hot topic of the moment is the developing insular attitude of government and its reaction to what it perceives as a constant stream of negative criticism; what they call “talking the country down”.  POMCCI has developed a reputation for not being afraid to tackle hot topics and we will not shirk from this issue either. Valid criticism of any or all of our institutions of state is a right enshrined in our Constitution and the ordinary people of Papua New Guinea will embark on a road to perdition if they do not stand up to leaders who attempt to proscribe any of these rights. The reaction to comments made to an Australian journalist by Mr. Mitchell of NASFUND (NPF) about his personal opinions were extraordinary, and were marked by an earth-shattering silence in defence of his work, from NASFUND (NPF) contributors, who if they do not get off their behinds soon will be back on the merry go round of abuse of contributors funds that they have been through twice already in living memory.

It was painfully obvious at the recent NASFUND (NPF) Forum held at the Granville Motel, that there was a group of people present who had little real interest in seeing criminal punishment of those who stole from the workers of this country.  Indeed they seemed intent on derailing the Forum. The contributors need to raise their voices in public outcry at a re-emerging threat to the fund as, in my opinion; the sharks are once more in the water and circling for the kill. The threat was eventually diverted by an eloquent plea from an expatriate priest, which received wide applause, but why was the defense not mounted by a local contributor? There is a long list of people who are now on record as having benefited from the funds plundered from the NPF, but we all know there is an even longer list of smaller players, who while not involved in the criminal behaviour, probably benefited from the ill-gotten gains floating around in the society and spread by ‘big man’ largesse doled out in the form of free drinks, K50 to play the pokies, an airfare here, school fees paid there and the ‘dinau’ that both parties know needs never to be repaid.

This school of small, bottom-feeders has had the source of its pocket money cut off, and with little or no personal credibility or business acumen, they have little alternative but to see the gravy train run again and will do all in their power to see it happens. The proper and due processes instituted for example at NPF deny these people access to public funds which they are not entitled to.

In the same vein, the vitriolic reaction to the Centre for Independent Studies report by Windeybank and Manning, on ‘PNG on the Brink’ had exactly the negative effect the government was blaming the ‘prophets of doom’ of fostering. A country which can critically address the problems it is facing and show what it is trying to do about them is surely regarded more highly in the international community than one which tries to deny the facts, which are actually well-known in the corridors of power, and pulls independent commentators in front of a parliamentary privileges committee. In this case, it was to the country’s discredit that the latter actions became the story and not the positive issues of a small country honestly and constructively facing the pressing societal issues for its population. The reaction rather than what was written in the report was far more damaging in an international context. And of course, none of this addresses the ‘real issue’, (which the grandstanders who had not read past the executive summary, if they even got that far), which was the message that the whole context of delivery of Australian Aid needs urgent review. This was the main thrust of the report and, therefore the report was actually something very good and positive for the country, so why all the fuss? If we continue to shoot the messengers who carry unpalatable news, we will have no need of ‘prophets of doom’; there will be no democratic state to defend anyway.

From the Chamber perspective, I believe we can claim continued, solid growth through 2003.  On a personal note my year as President was derailed in June due to a tragic, personal bereavement and it will take some time to reconcile these personal issues.  I would like to thank all members who sent messages of support at the time and offered support to my family during a testing time.  I wish to record my personal thanks to the members of the Executive who ably stood in to ensure continued service to the members. In particular I make mention of Ken Dunn, now in Rabaul, who stood in as acting President, although I think he found the subtle art of press releases a wee bit testing.  Secretary, Rachael Thomson, who will unfortunately be standing aside, and Treasurer, John Locke, now in Sydney, also deserve particular thanks as they have continued an upward trend of membership, from 129 to 170, within three years, and brought the Chamber back to a more solid financial base as evidenced by today’s financial report, and introduced a new accounting system, assisted by Lynn Walsh from PWC.  Staffing, as has the Executive, has been motile and we hope to install new staff at the office which will fully support the services demanded by the membership.

Your Chamber continues to represent your interests on a plethora of issues in our community, many of these on behalf of the PNG Chamber of Commerce, which, if one looks at the financial input from POMCCI, remains a topic of discussion and wide disparity of views. This represents a significant portion of our annual budget and the argument that without Lae and Port Moresby, the PNG Chamber would not exist is not quite enough to justify this level of expenditure. Too often, we voice our opinions on national issues because either, nothing has been forthcoming from our national chamber, or the media press us to comment and fill the vacuum. A model I observed recently in Laos, actually had no Chamber for the capital of Vientiane, but the Laos National Chamber, based in the city filled both roles. This year I declined a request by our Executive to nominate for PNGCCI President, and can explain this because my priorities remain with NCD and the newly re-created NCD Commission.

It is a major step forward to have the POMCCI President duly recognized as the Business Representative on the Commission, and I have held office for two periods of three months.  A nomination for the 4 year appointment has been forwarded to the Minister for his consideration.  The offer of nomination was passed to all other peak bodies in the NCD, and I wish to record our thanks to the Manufacturers’ Council, PNG Business Council, PNG/Australia Business Council for supporting our nomination at this time. No reply had been received from the Employers Federation, but this appears to have been more procedural than any wish to nominate an alternative. We now also hold gazetted positions on the NCD Building Board and NCD Physical Planning and both now hold regular meetings and will contribute positively to building and planning development in the city.  NCD Building Board has not been in existence for three years, a clearly unacceptable position, and one which means there is a significant backlog which is gradually being eliminated. Already the Board has visited one premises over fire safety issues and in conjunction with Physical Planning the issues of amenity (with regard to appearance of properties) and ad-hoc zoning will be addressed.  NCD is currently preparing a plan which will address the zoning throughout the city and its environs, with recommendations which should, have far-reaching consequences for sensible city planning in the future which also encompasses the needs and aspirations of the traditional landowners.   With credible Boards, we hope the capable staff at NCD will now be free to conduct their work in a professional manner without the political interference, which has plagued NCD over the years.

Many remain cynical about any closer engagement with City Hall, but I feel we must be part of the structure to see any worthwhile change.  Business is a significant stakeholder in NCD and through the revenue raised from VAT we are also a significant financial stakeholder.  We simply cannot afford to be on the periphery sniping; we must be part of the process.

The current politicians who are ex-officio members of the Commission appear to be committed to our continued involvement and have given full support to our efforts on the Finance Committee, Law and Order Committee and the full Commission.  For the first time in my memory of Chamber involvement over 9 years, we were party to framing the NCD Budget for 2003 – in the past we did not even see the finished product.  Radical changes, during our absence I may add,  within the Budget  have since been made to accommodate the road works funding, and to the best of my knowledge nothing has been added to the budget to fund ‘fun’ projects, so it may be a while before we are water-sliding down Paga Hill or dining ‘alfresco like Darling Harbour in Sydney  or Boat Quay in Singapore’ in our fair city.  If the National Government does honour its commitments to pay NCD what it is owed (not funding for roads negotiated under the previous regime) i.e. from sale of assets to Eda Ranu, Bookmaking Tax and income from gaming, the work should be completed in a nine month time-frame.

A properly constituted Finance & Executive Committee has great power within City Hall to block rogue and off-budget payments and to date there has been little resistance to our being a major player on that committee. Already plans are underway to have a properly constituted Tenders Board, to have all major payments sanctioned by F&E and then full Commission, as well as a resurrection of the Committee system, including Liquor Licensing, which can bring in skill sets from the wider community, not only from the Commissioners.  Sweeping changes have been made to the Transport Department and all maintenance is now to be carried out by the three major motor dealers on agreed rates. For too long reputable members of the Chamber have been excluded from legitimate business at City Hall, because of poor management, lack of proper tendering, dishonest practices and downright cronyism by staff and operators who have seen NCD as a honey-pot which they can raid periodically.  While we are represented on the Commission proper processes will be put in place to ensure the residents of the city get value for money and see their money spent on legitimate, budgeted and properly prioritized projects.

Once again, I stress that it is incumbent on the Chamber to remain engaged with City Hall for the good of not only our businesses, but also the city residents as a whole.  Finances at NCD are in a parlous position, but with an injection of sensible commercial and honest government from us, the patient may yet recover.  Once this process is underway, the Government of the day could consider some form of enquiry into the abuses of the last few years at City Hall – while many will say ‘another report’ and it is hard to rebut this, at the very least it will give the newly constituted Commission a basis to start afresh and identify the ‘connivers’ and fraudsters who have been milking the city for years and then deny them any future access.

Contact with members continues to be through the website, regular E-News, special E-News and Chamber breakfasts. Various issues mainly associated with DOLE, Lands office, Customs queries and charges by State entities have been referred by members and have been taken on as major issues to be dealt with by the Executive.  We retain the relationship with Ginigoada Business Development Foundation, through my chairing of the Board, and as well as generating income for the Chamber, it allows us to be involved in small business, skills development and micro finance initiatives in Moresby South  which could serve as models for development of the informal sector throughout the city.  We have not expressed a public opinion on the recent turmoil in the city markets, basically because, contrary to some opinion, we do not agree with some of the methodology and feel NCD needs a coherent policy which will encompass all city and mini-markets, settler areas and the whole raft of urbanization issues which will encompass the need of the original landowners and those who now call Port Moresby home. To see the issue in our markets as only a law and order issue is insufficient and knee-jerk responses to regular crises is not the way to resolve this issue in any long-term sustainable manner.

We continue to give active support to the PNG Institute of Directors and their recent work, using the services of AESOP Business Volunteer, Peter Griffin. On their website is an extensive resource center for any business in PNG.

I would like to thank the Overseas Vocational Training Association (OVTA) in conjunction with APEC, for funding the recent IT Training Courses we ran in Port Moresby.  Six basic courses were run, attended by 200 participants free of charge, at the premises of Daltron and Global Technologies. Already we have received communication from OVTA that they would like us to coordinate the next series of courses. Apart from the obvious IT benefits, the courses have injected some fresh business into the community and the Chamber has benefited by levying an administrative charge.  Many of the participants were not Chamber members, but were small enterprises who we will now target to become members, probably through a new class of associate membership which they can afford.

In conclusion, 2002-2003 has been an unsettled year in the Chamber, but I do not feel we have lost our focus, and with considerable interest for the new Executive positions I am confident we will continue to strengthen the body of the Chamber and improve our lobbying power on a wide range of
issues which are pertinent to our members.  We must continue to attract more members and strengthen our voice to improve the business climate in the NCD.

We remain committed to the Coalition against Corruption and to the work of the Consultative Implementation Committee (CIMC) and stand by our comments following the outburst by certain politicians at the National Economic Development Forum.  The comments that ‘critics’, whether, foreign or citizen, can pack up and leave, is hardly an example of a government intent on working with major stakeholders to get the country moving ahead.  We remain incredulous at the timing of such comments, immediately following a forum intended to hear the views of all sectors of the community.  If this rabid and divisive band -wagon, on to which certain prominent academics and regional politicians seem to be blithely leaping, continues to gather steam it will bring into question this government’s commitment to any constructive dialogue with business.  Our businesses have too much money and experience invested in this country to be attacked in this manner.  The proponents of this propaganda are hopefully aware of the sections of the community, who are ill-advised on the real depth of many issues, which they could unleash on all in our society.

I thank the staff and executive for all their support through the last year and look forward to another exciting year of progress.
The Port Moresby Chamber of Commerce remains committed to its role in the city and to being part of a coalition of stakeholders who wish to see the quality of life rise not only for business entities but for the ordinary residents of the city.  We retain an optimistic attitude, as many who visit our office from overseas will attest, and a strong commitment to progress.  We stress this must never be construed by an increasingly fragile cadre within government as totally negative or ‘prophecies of doom’.

We can only address our problems by facing them and this we intend to do, no matter the attempts at brow beating that emanate from those who should know better.

The Port Moresby Chamber of Commerce is committed to serving its members and residents of the city. Our logo is ‘Doing Business in National Capital District’ and nothing will divert us from this course.

Thank you, and once again my apologies for not being personally present to deliver this address.  Should you resolve to re-elect me to the office of President for a fourth year I also thank you sincerely for your continued faith and support.
 

David A. Conn Esq, MBE
President (2000-2003)
 
 

47TH ANNUAL GENERAL MEETING OF PORT MORESBY CHAMBER OF COMMERCE AND INDUSTRY  :
10TH APRIL 2002 AT CROWNE PLAZA, PORT MORESBY
 

I would like to thank all of you for your attendance at our annual general  meeting and for the continued and growing support you have given to your Chamber’s efforts  2001-2002. The Chamber is  the voice of the business community in our city and, as it grows in strength so will our credibility and our ability to influence events and trends in the capital.

The year has been a generally pleasing one, with a most active executive committee, who have handled a wide range of issues on your behalf in their voluntary capacity.

The Secretary will outline the significant upward trend in membership  and through the efforts of the Treasurer and the Secretariat  we will be announcing a significant about turn in our financial position which has been in steady decline over the last few years.

Interaction with  all of our members has been a major focus of our efforts and I feel confident in saying that all our members have received more information on a regular basis than they have ever had before. The weekly E-News disseminated to all members, and interested organisations, by email has been a vital component of that. The hourly  news service offered by the Chamber during  the period of student unrest in the
City was sought by a wide range of people who wanted to know the exact situation on the streets, and took our E-News all around the world. I believe this helped counter the inevitable rumour mill that emanates from these disturbances and causes unnecessary angst  in the community at large, when in fact the events are extremely localised and with sensible precautions can be avoided or handled sensibly. I would like to thank the Police Community Relations section who kept us updated from their radio reports and I trust this will be the sort of cooperation we can expect in the future from the Constabulary.

The electronic media will play a continuing role in our interaction with the community and to this end  our popular website, www.pomcci.org.pg   which achieves over 10,000 hits per month on average from all over the world, will be further expanded  in the coming year to include a  business tourism section, expanded business portal for potential investors and we hope to facilitate  a site for posting of the National Gazette and the Parliamentary Hansard. Information is the successful key to business in the city and for too long vital information has been concealed or, at best, has been nigh impossible to find. I acknowledge the work of our Webmaster for his work in this area.

Business in the city continues to experience very hard times, with increasing  impostes to conducting business, greater regulation, high cost of finance and a continued decline in the lawlessness of the community at large. The period leading up to the 2002 election  will be a period of stagnation, while the 40 odd political entities  vie for political supremacy, while very few of them have tabled a comprehensive manifesto of how they will change the course of the nation or what they will do for business  and economic development, the only way to improve the general welfare and employment of the society at large. I doubt if this was what the Political Integrity Bill was designed to create, and  in fact, we face the possibility of an even more fractured  Government

Coalition  than we have seen in the past. A sound political base, with a minority of credible parties espousing  well-defined strategies to drive the economy and the welfare of the community at large is a recipe for success. The voters of Port Moresby and PNG have a crucial decision to make in June,and if they choose the wrong path or candidate the future will be very bleak indeed. The business community will come under  great pressure to support this plethora of political  “parties” (if we can in fact call many of them  that ) and it is incumbent on us to also “vote” with our contributions for a viable future for our city.

The Chamber  has joined the Coalition Against Corruption and looks forward to seeing it putting  some runs on the board quickly  against individuals who, in any true-thinking society, would never be considered for public office. The business community can only continue to support this work if we see some very bright sunlight being shone upon candidates  who have dubious backgrounds or are under current investigation. They must understand that to step into the public limelight, brings incredible responsibilities as well as considerable perks, and that one’s whole life and that of one’s family comes under severe public scrutiny. This is  a war against corruption and the good must win it. To date I  see very few casualties in this war.

Your Chamber has continued to be represented on a multitude of Boards and committees, either representing  POMCCI or the PNGCCI. A major focus for us in the new year will be to seek proper representation on the NCDC and its Board, where at present,  the supposed business representatives are not nominated by any recognised business organisation that we know of. This is clearly not satisfactory and ignores the contribution our members make to the financial well-being of the city . At our last executive meeting it was resolved to lobby the NCDC authorities  that the business representatives on the NCDC Board, Building Board and Physical Planning Board be the President of POMCCI or his/her nominee.  A parliamentary report, which involved all stakeholders in NCD, has been produced with a credible elected structure, taking into account all major interest groups and traditional owners,  and any new government has to give  implementation of the Kidu Report  high priority. The fiasco we all observed as the various parties  struggled for power at City Hall , and the resultant failure of services  and loss or theft of properties paid for by our taxes, was a deeply shameful time for us all, but unfortunately I doubt for  some of the parties involved.

The Chamber has remained vocal on the issue of infrastructure development in the city despite threats and accusations that we are anti-development. Infrastructure development geared to economic development is something we will always support. The belief that we are targetting certain contractors  is totally incorrect, but clearly some  must feel that the cap fits. Our issue with the current road development in the city is and remains  the apparent lack of  a due town planning process, the lack of transparency in the tendering processes, very little room for public comment on projects, and questions of priorities when there are so many other glaring areas of neglect. Public land for public recreation, general road cleaning, street lighting, the appalling state of many suburban roads, drainage and sewerage, general cleanliness of the city, public transport, suburban health clinics, peri-urban settlements, youth employment, micro-credit, business development, community policing are but a few of the issues we would like to see moved  much higher up the budgetary agenda. The question is, does Port Moresby need, or have the traffic flows to justify,   over K100m, in the last  two years,  worth of 4 lane highways  when there are so  many other pressing  issues. These roads look wonderful and appear to be well-constructed, although some design does appear faulty eg the Waigani intersection,  but surely a phased  plan for road development over 5 years, with consideration being given to the recurrent maintenance costs, would have been a more sensible approach.
 

We see encouraging signs that the town planning issues are being addressed by NCDC, and the response to concerns over Ela Beach, although politicised by some, Scratchley Road  and the Waigani Town Centre is a step in the right direction and is to be commended. Plans for Ela Beach, Scratchley and Waigani Town Centre have been made available to the public, although admittedly not too easy to access, and we have assisted the process by posting design drawings on our website. The full page adverts for Waigani Town Centre are welcomed and we look forward to seeing this methodology utilised in the future to communicate with the public at large. Having said all this, the public then has a responsibility to act and comment on proposed developments. If city planners  advertise the plans over a reasonable period , they have every right to assume  public silence or lack of comment  is agreement to proceed, and we cannot complain afterwards when projects move forward. There is growing comment that the Scratchley Road development will not proceed and that the contract will  be moved over to repair of the Hubert Murray Highway, and also that the development of Ela Beach will proceed around  Paga Point. While we agree the former is necessary, not the latter, we can only hope the new open processes will be used and we will get a good job done at the right price.

The increasing lawless attitude in the city community is a concern to us all, and while some may agree, and police statistics, if accurate, reflect it, the incidence of major crime is plateauing and not increasing, the level of general civil disobedience is escalating. The increase in graffiti, drunkeness on our streets and a marked increase of reports of violence against employers over work disputes all reflect this trend. We appreciate the extreme pressures the Police Force is under, but several incidences of abusive behaviour by police officers can do nothing to improve the image of a  once proud force, nor engender the confidence in the force needed if any level of community policing is to become a reality. I know the metropolitan commanders are fighting the issue of indiscipline in the force and we commend them for this. The immediate response to our concerns over the appalling Lamana  incident were laudable, but we await concrete evidence that all of the perpetrators have been dealt with and will soon exit the force. At the time of this incident we raised  our concerns on the issues exhibited by members of the force i.e. the apparent anonymity of the officers involved due to lack of ID, control of weaponry and ammunition in the city armouries, and the attitude of members of the police to alcohol consumption while in uniform or on duty.

To date neither the Commissioner nor the Police Minister have done us the courtesy of a written response. We do  not expect our policemen and women to be put at risk on the city streets, but a cone of silence on issues which would be beneficial to all good members of the police force and the community at large is, in our opinion, not a solution.

The Chamber will  continue to work  on programmes which can enhance the environment for investment in the city, and today you can see examples of an introductory brochure which outlines the positives of doing business in Port Moresby and some of the services  we can offer to existing and new investors. In short, warts and all, there are worse places to live and work. A recent report  stated  that examples of gun violence in some of the most highly populated  areas of Sydney  had  escalated 34%, and that an amnesty last year recovered 5000 weapons. Maybe a travel alert to PNG's travelling to the areas mentioned, Canterbury-Bankstown  and St George-Sutherland Shires, would be  in order ? We continue our involvement with the Hiri Moale Business Seminar  and the POMSOX Money Show  and sell the message of what we have to offer. These activities are also geared in such a way that we are paid for our services, generating much-needed revenue. We hope to resurrect discussions with NCDC on a Port Moresby Visitors Bureau, and liaison with other agencies has led  to Chamber supports  the GiniGoada  Business Development Foundation and offers secretariat help and office space to this AUSAID funded project aimed at alleviating urban poverty through micro-entreprise training and finance. We also support the secretariat of the PNG Institute of Directors and see this as our contribution to the further development  of good corporate governance.

The Chamber remains a member of the PNG Chamber and contributes 15% of all membership fees to the national body ( in 2002 K16,399.50 ). There continues to be discussion on what we get for this money. Recent attendance at Quarterly meetings have been disappointing and we see a large number of national issues needing  public comment from our peak body. Issues with pricing of services from Telikom, PNG Power, NAQIA, Labour Department, CACC, Price Control, Harbours Charges, OCA, Privatisation, Cost of Finance  etc are essentially national issues and we would like to see more comment.

The Chamber currently employs a secretariat staff of three, and the current contract with FES-MIR is due for renewal on 21st May. This will be the first item of business for the new Executive. We have had some security issues at our offices in Monian Tower and the landlords appear to have put systems in place which will ensure such incidents are not repeated. We will monitor developments and take appropriate action to see staff security is maintained.

I believe 2001-2002 has been a year of progress  for the Chamber and I acknowledge the contributions to this joint effort by the staff of FES-MIR, our own staff and all members of the Executive  who have taken on the reponsibilities on committees  handling such diverse areas as Food Sanitation , NATTB, Training Council, IPA, Inst. Public Admin, NISIT, NAQIA, Minimum Wages, Price Control, Careers Expo , HIV/Aids, Physical Planning, Informal Sector, Urbanisation, Tourism, Alternative Sentencing, Micro-Finance, Sports Commission, Corporate Governance, Liquor Licencing, CIMC, Port Development  to name but a few.   I would like to particularly  record our thanks to our outgoing Vice-President, David Murray who has agreed to be our "unofficial attache" in Sydney ( a bit like our man in Havana ), Fabian Chow who has done sterling work on the Infrastructure Committee and will now devote his time to being Secretary PNGCCI  and Toby Andreassen, who ran the Community Affairs Committee, and will move back to Sydney end of the month ( I hope he was not too worried about my comments on how dangerous Sydney is !!). All have given generously of their personal time and I thank them sincerely for their contribution.

I am encouraged by the return of many of last years's Executive and welcome some new blood who bring us experience from within PNG and overseas. I am sure your new Executive will continue to provide you, the  members, with the increasingly high level of commitment and dedication  that a growing body requires and I look forward to another year raisin the profile of the Chamber and business in general in our city.

For your comments  and continued support through the last two years  I thank  the executive and the members. I also accept the nomination for another year as President and thank you for  the trust that you bestow in me by such nomination.
 

David A. Conn Esq, MBE
PRESIDENT (2000-2002)
 
 
 

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