USE LOCAL RESOURCES FIRST– #BASIL November 4 2014 Deputy Opposition Leader and Leader of Pangu Pati, Hon Sam Basil said the O’Neill Government is talking about growing the economy, yet we have been suppressing our local industries and its multiplier effects across the Small Medium Enterprises (SME) sector and to the general population. “We have been talking about “growing the economy’ and promoting SME in PNG to promote employment opportunities and incomes for our people, yet we are making a direct attack on our local industries to provide Tariff exemptions on items that can be sourced locally”. Mr Basil said that whilst he agrees with the Government to provide houses, there is no reason why the Government wants to approve exemption of import duty on certain building materials to make housing cheaper for low income earners. The Government pushed for the Halla Cement to be established here by providing incentives to produce cement for the people. Similarly we have large tracts of forestry that we log as well as plantation forests at Bulolo and elsewhere around the country. We also manufacture nails and roofing irons and other inputs that are used in the construction industry to build houses. “I have been asking the Government about the state of the economy and the monies that are going outside without creating opportunities in PNG. By trying to provide tariff exemption to companies or businesses who are not operating in the country, we are simply sending employment and income opportunities and establishing manufacturing and SME outside of PNG. We are supposed to be doing this within the country to promote our existing manufacturers and SME that have been with us through the ups and downs in our economy. We are putting more burden on our vulnerable economy and destroying our own local industries”. Mr Basil said that we must learn from our past experience of giving various favourable concessions and tax exemptions that only benefit the investors and the friends of powerful politicians. Over the years, our small people continue to produce food crops whilst our SME and small manufacturing sector have been supporting us without any exemptions and special support from the Government. We must repay loyalty by purchasing cements, timbers, nails from our local business and also challenge them to provide the quantity required as well as quality products. We will be creating employment as well as flow on effects to the SME sector. If our existing manufacturers cannot meet the quantity requirements, we can assist them to import but we will create jobs and business to our people in PNG. He stated that he made a presentation and written Submission to the Taxation Review Committee on providing various tax incentives to our local industries and to protect them from tariffs as well as making them more competitive with imported products so that local manufacturing and SME sector can provide quality products at affordable prices to our people. The Government should talk to our local manufacturers through the Manufacturers Council and also liaise with the Taxation Review Committee on what the Government can look at assisting our local industries and business and the people. The housing project is a necessity but sending money and jobs overseas and the idea of exemptions and concessions for overseas businesses must stop so we can build our own economy. If we do not have the quantity or quality or even prices, the Government must highlight such issues so that our businesses can improve or cut other costs to bring their products at international standards and even cheaper or competitive with imported products. To grow the economy and SME, the Government must set the standards across the spectrum of the economy. The Government must not put pressure on the economy that is so reliant and focussed on the non renewable and extractive sector. We must support and promote them with action and monies pumped into other sectors.
Posted on: Tue, 04 Nov 2014 06:37:17 +0000
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