Treasurer says Supplementary Budget will review tax measures proposed in the 2017 Budget, sufficient geothermal power in PNG for years to come, and The Philippines asked to ban fishing companies operating in PNG. Your weekly digest of the latest business news.

The Government is expected to introduce a Supplementary Budget when Parliament resumes in January, according to Treasury Minister Patrick Pruaitch. He said the Government is reviewing tax measures introduced in the 2017 Budget, including reintroduction of a sliding scale on log export levies, an additional profits tax on all mining and petroleum ventures and some new aspects of the dividend withholding tax.

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The Geothermal Energy Association says PNG’s geothermal potential is estimated to be at 21.9 terawatt hours-enough to meet all of PNG’s electricity needs well into the future. Dr Peter McCabe, from Adelaide University, has told EMTV that PNG is a favorable area for geothermal energy as it is located on the Pacific Ring of Fire.

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The Philippines government has been put on notice to ban its fishing companies from operating in PNG waters, says Trade Minister, Richard Maru. ‘The PNG government wants fish caught in PNG to be processed in PNG for export,’ he told the Post Courier. Last week, Palau’s marine law officers seized a Philippine vessel believed to be a mother ship of an illegal fishing fleet.

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Kavieng Niu Lodge owner John Merebo talking with Kavieng MP, Ben Micah. Credit: PNG Loop

Despite New Ireland having the ‘must-visit place’ tag in the tourism world, it does not have a tourism plan to harness the economic benefits derived from tourism, the owner of Kavieng Niu Lodge, John Merebo, said during the official launch of the lodge’s 32 deluxe rooms extension. He challenged Industry Minister Richard Maru and Transport Minister Malakai Tabar, as well as provincial leaders, to invest in tourism in the same way that Fiji and Vanuatu have done.

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 A PNG trade and investment delegation will go to New Zealand in February. It would be given educational tours to study New Zealand industries, says Industry Minister Richard Maru. He also says PNG will follow New Zealand’s high biosecurity standards for its poultry industry. NZ does not allow uncooked products from other countries in order to protect its poultry industry. A trade delegation from Russia will also visit PNG next February.

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Kula Gold’s subsidiary, Geopacific Resources, has begun drilling Woodlark Gold project in Milne Bay province. The company says it has the ‘potential to be greater than a five million ounce goldfield’.

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Air Niugini’s Dominic Kaumu. Credit: The National.

PNG and the Pacific are to benefit from plans to make Port Moresby the regional hub, according to Air Niugini General Manager, Customers and Markets, Dominic Kaumu. He told The National that Air Niugini was encouraging “two destination” passengers, with foreigners coming in through Port Moresby before going on to destinations in the region.

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The US and Pacific Islands nations have signed off on a six-year extension of their tuna agreement at the annual meeting of the Western and Central Pacific Fisheries Commission in Nadi.

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Social services, rural infrastructure and development are the targets of the Solomon Islands government’s $US256 million [K812 million] budget for 2017, reports RNZI. Finance Minister Snyder Rink said the government will focus on rural infrastructure development, with a particular focus on energy and transport.

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And finally, Australia needs to develop more gas reserves by 2019 or eastern states will face a gas shortage by the end of next decade, says national energy forecaster, the Australian Energy Market Operator.  But Australian gas flooding into Asia has caused a regional glut. Prices have collapsed and Asian manufacturers can now buy Australian gas at half the price local manufacturers are paying, reports the ABC.