Tomscoll says government must invest in agriculture if the economy is to survive, government waiting for Chinese funding of PMIZ a year after launch, and O’Neill discusses closer ties with Thailand. Your weekly digest of the latest business news.

Agriculture Minister Tommy Tomscoll says PNG is heading down the path to self-destruction if it continues to neglect agriculture, according to Loop PNG. He says if PNG wants to survive as a strong and healthy economy governments must invest between K1.5 billion and K2 billion, or 10 percent of the national budget, into the sector every year.

***

The vice-minister in charge of the Pacific Marine Industrial Zone (PMIZ) project in Madang, Anton Yagama, says the government is waiting for the Chinese government to hand over the funding for the US$95 million (K296 million) project. ‘We’re hoping that it will be started before the elections next April,’ he told Radio NZ International. The PMIZ was officially launched last November.

***

Prime Minister Peter O’Neill discussed direct flights from PNG to Thailand, with Thailand’s Deputy Prime Minister at the APEC Leaders’ Summit in Lima, The National reports. He also raised the prospect of Thailand purchasing LNG production from PNG and establishing greater co-operation on fisheries.

***

The Manufacturers Council’s Chey Scovell

The price of electricity should be based on usage, Manufacturers Council PNG CEO, Chey Scovell, says. According to The National he claimed commercial users are paying their money to PNG Power, but ‘if you listen to PNG Power, the Government uses a lot of power (but) doesn’t pay’.

***

Inflation in the September year-to-year was 7.4 per cent, with the biggest increases in the alcoholic beverages, tobacco and betel nut group, according to the National Statistics Office.

***

The onus is on a Chinese developer, PanAust, to build a safe tailings dam if it proceeds with developing PNG’s Frieda River mine, says Katherine Karaya, the first secretary to the Mining Minister Byron Chan. She told RNZI the government acknowledges the need to have sound environmental expertise incorporated before the mine is developed.

***

The move to corporatise Water PNG is reportedly on hold after Parliament rejected the Water and Sanitation Bill. 

***

The ACCC’s Avi Hubert. Credit: PNG Loop

The Acting Chairman of the Independent Consumer and Competition Commission (ICCC), Avi Hubert, has told Loop PNG introducing more retailers in the electricity supply industry does not guarantee a drop in prices.

***

Australian Secretary to Treasury, John Fraser says he is aiming to have a closer cooperation with the PNG Department of Treasury. Fraser led a delegation to Port Moresby last Thursday for a two-day meeting to discuss ways to build a closer working relationship.

***

Westpac Bank reportedly says the new Personal Property Security Act is providing greater transparency and making lending easier. The purpose of the legislation is to make it easier for people to obtain finance from lending institutions.

***

Papua New Guineans living in company-provided housing could lose more than half of their fortnightly salary if the Government’s new housing-benefits tax comes into effect next year, says Dr Francis Odhuno, of the National Research Institute.

***

Two-way trade between the Pacific and China almost doubled last year to US$7.5 billion (K23 billion), according to Pacific Trade and Invest. PNG accounted for nearly US$2 billion (K6.3 billion) of that amount, primarily timber. Metallurgical Corporation of China, which has an 85 per cent share of Ramu Nickel mine, has also become a key exporter to China. Guangdong Foreign Construction and China Harbour Engineering have ‘put down roots’ in PNG, says PTI. Another new investor, Vivafounder, has recently completed surveys for a 200,000 hectare forestry, agriculture and tourism project in north western PNG. Guangdong company Artepharm is providing new anti-malaria medicines to eliminate malaria in PNG.

***

The oil can also be used as a heating fuel or further refined into an aviation jet fuel. Credit: ABC

And finally, a start-up technology company has surprised scientists by producing a biofuel from old rubber tyres that can run turbo-charged diesel engines while reducing emissions by 30 per cent. Australia’s Green Distillation Technologies says it can produce 3,000 litres of bio-oil from one giant seven-tonne mining truck tyre.