The Member for Vanimo- Green, Belden Namah, has blamed the Treasurer for killing the logging industry by increasing the Log Export Tax over 50%, which was included in the 2023 National Budget passed last year. Mr. Namah argued that the increased logging tax has resulted in unemployment, revenue losses from the logging industry and landowners affected due to poor royalties being paid out to them. Namah said that the Treasurer, Ian Ling Stuckey, made a decision to increase the Log Export Tax, where parliament passed through the budget on the 2nd of December 2022. He questioned why the Treasurer had to make that decision when a previous decision by the Cabinet back in 2021; National Executive Council (NEC) Decision number 13139, reduced the Log Export Tax to 38.5%. “I believe the Prime Minister made a responsible decision, why don’t we just implement that decision and stick to it?” the Vanimo- Green Member asked. But, instead of reducing the tax, Namah said the Treasurer went ahead to increase the Log Export Tax from 38.5% to 50% and then further up to the current 70%. “The Treasurer didn’t indicate how this increased Log Export Tax is affecting the logging industry.” That effect, Namah said was the closure of logging operations in the country where 57 logging projects have had to stop operating with only 7 now operating, and this has resulted in 3, 700 to 5, 000 Papua New Guineans out off job. “We are supposed to make more than K300 million this year, we only made K160million from log exports because we have increased tax,” Namah said. “By increasing tax, production has gone down. Where are you (Government) going to collect your tax?” The MP then said that the logging industry must be seen as an important development partner because the industry has contributed a lot as well to the establishment of road links and it has supported schools and health services, and as such, it should not be heavily taxed. “You have less tax, you have more production, you have more money coming in,” the MP further stated.

The State has resumed its payment of arrears owed to Nambawan Super Limited (NSL) for the outstanding rentals for the use of the superfund’s buildings and properties by State Departments, with NSL confirming receiving payment of K60 million from the State. This payment is in line with the agreement reached between the State and NSL last year, where the State had committed to settling its total rental arrears through monthly instalments of K5 million for the previously accrued arrears and K5 million to pay its current rental invoices. The State’s total rental arrears owing to NSL are expected to be fully cleared with its account brought to current by June 2024, if the State continues to honour the promised payment of K10 million per month. NSL remains committed to working closely with the State to ensure that their outstanding rental arrears are settled as agreed in the payment schedule. NSL appreciates that the State has given priority, amongst its other liabilities, to the retirement outcomes of Nambawan Super’s 220,000 members, many of whom are public servants working in the Departments occupying these buildings. Nambawan Super members are the hard-working teachers, health workers, police officers, firefighters, public servants and private sector employees that support the development of this country through their contributions to education, health, internal security, government services and private business. After dedicating their working lives to supporting the development of Papua New Guinea, Nambawan Super believes it is essential that they are able to enjoy a dignified retirement supported by their superannuation savings.

The Momase Regional Youth Games are set for September in Madang, and it was made possible with the signing of the Host Contract Agreement between the Madang Provincial Administration and the National Youth Development Authority (NYDA) of Papua New Guinea. The Regional Youth Games (RYG) is set to be hosted from September 25th to the 30th and is a new sporting concept targeting the rural youths who have less opportunity of participating in formally sanctioned sporting codes. “We have huge sporting potential and rural talents locked in the rural areas, they need some exposure in the mainstream sporting arena, hence the RYG concept creates that platform for them to show case,” said the NYDA Director General, Joe Itaki. “We acknowledge the Madang Governor, Ramsey Pariwa, for having the foresight on youth empowerment activities in the province.” Some 4,000 to 5,000 youths are expected to attend the Momase Regional Youth Games. There is overwhelming support and interest being shown by youths and sports administrators in all districts of the region. Preparations are on target by the host province to ensure visitors are well looked after in Madang for the duration. Event organizers are expecting all 26 districts in the region to be represented.

Vanuatu's parliament is scheduled to meet on Wednesday to debate a motion of no confidence against Prime Minister Ishmael Kalsakau's government. A political stalemate persists, with both the government and the opposition having the support of 25 MPs each. The mover of the motion, opposition leader and a former prime minister, Bob Loughman, requires the backing of at least 27 members to unseat Kalsakau. However, Kalsakau also needs a majority in the house if he is to be able to pass legislation going forward. Last Thursday, the government side boycotted a special sitting of parliament to avoid the no confidence motion. Kalsakau told local media on Monday that the opposition's attempts to unseat him was "irresponsible" and "a big waste of resources at a time when we are trying to rebuild our nation". Another former PM and head of the Reunification Movement for Change, Charlot Salwai, urged politicians to "unite and come out of this political crisis". "Vanuatu has experienced consequences of no confidence motion over the past years and it is time for the MPs to come together and find a solution. "The country and people are suffering because of our attitudes," Salwai said. There are 52 seats in the Vanuatu parliament. One is vacant and one empty. Both sides are claiming National United Party MP, Bruno Leingkone, who is receiving medical attention abroad, is on their side. According to the Daily Post, Loughman said Leingkone is expected to vote for the motion of no trust in PM Kalsakau virtually. RNZ Pacific's Vanuatu correspondent Hilaire Bule said "the situation will be [clearer] when the parliament is in session on Wednesday". "But the target of the government at the moment is to make sure that the opposition must not have 27 [MPs]," he told Pacific Waves. "If the opposition reach 27 in the parliament, the opposition will pass its motion against Prime Minister Kalsakau." Bule said the parliament could not be dissolved as was the case last year, which resulted in a snap election. "We have ended up in the political crisis because the Council of Ministers cannot request the President of the Republic to dissolve the parliament because our constitution says that parliament must have one year before a majority of members of parliament or Council of Ministers can apply for dissolution of the parliament. "That one year of parliament will be only on December this year." Bule said people have become accustomed to facing political crisis in the country and was "part of their life". Source: rnz.com

The Momase Regional Youth Games is coming up and a total of 17 out of 26 districts in the Momase region have confirmed their participation in the inaugural event that will be staged in Madang province. Regional Youth Game (RYG) Coordinator John D’siguria said the games are set for 25th-30th September and Tournament Directors in 5 sports will draw up competition draws based on entries received. “Some 4,000 to 5,000 youths are expected to attend this Momase Regional Youth Games. There is overwhelming support and interest being shown by youths and sports administrators in all districts of the region as this is a rural oriented sporting platform,” he said. Preparations are on target by the host the province to ensure visitors are well looked after in Madang for the duration. Event organizers are expecting all 26 districts in the region to be represented, but also acknowledge the difficulties some districts may face. Meanwhile, RYG Council Chairman Joe Itaki said the Regional Youth Games is a rural focused sporting concept that is tailored to unlock the raw sporting talents hidden in our rural settings. “Through this partnership arrangement, we aspire to bring the sporting codes closer to rural youths, so they appreciate sports and expose talents,” said Mr. Itaki. Chairman Itaki said that the engagement of unemployed youths in such organized sporting tournaments will also restore some level of dignity on the youths and foster behavioral change over a period. Law and order and other social issues can be mitigated when unemployed youths are engaged in sports starting from the Local Level Government (LLG), District, Province, and region, as reflected now via the Regional Youth Games. The districts that have confirmed so far are: East Sepik – Ambunti-Drekirkir, Angoram. West Sepik – Aitape, Vanimo Green. Morobe – Bulolo, Wau-Waria, Finchshafen, Huon Gulf, Lae, Markham, Nawaeb. Madang – Usino Bundi, Bogia, Sumkar, Madang, Middle Ramu, Rai Coast.

East Sepik Governor Allan Bird wants the government to make it known to parliament in the future just exactly how much the state owes in arrears for utilities and rentals to service providers. Governor Bird, when giving his response to the 2023 Mid- Year Economic and Fiscal Outlook (MYEFO) update presented by the Treasurer recently in parliament, said the disclosure of such information for consideration for future government expenses in budgets, is important. "I’m not sure how far back a lot of these arrears have been carried by the government, whether these things have happened over the last couple of years or these things go back a decade,” said Governor Bird. “So, it would be nice to be informed and also if the house (Parliament) could be informed on the extent of the arrears of government.” That way when doing future budgets, everyone can be aware of the debts outstanding that have incurred by various governments in the past and its incumbent on the current government to resolve them. Governor Bird's remarks in his response comes at a time when the government has a lot of outstandings owed to service provides, with the very recent matter with the Nambawan Super Limited (NSL) where the State owes the superfund over millions of Kina in rentals of its properties. This matter is being currently resolved with the government team and the team from NSL working together to come up with a better solution to the State making payments to the superfund for outstanding rentals.

The United States Agency for International Development (USAID) will continue to put in funding support to improve the country’s health sector in providing health services to the people. The USAID Administrator Her Excellency (H.E) Samantha Power said that health is another priority area for Papua New Guinea (PNG) and the partnership with the United States (US) is driving meaningful successes. She said for 22 years of working together, both countries have been collaborating to combat HIV/AIDS and other forms of illnesses. “Over 96, 000 people in the capital district alone have been tested, over 7, 000 people have been receiving Antiretrovirals, which are critical for both stopping the virus from causing life threatening illnesses and for stopping it from spreading across the community,” said the USAID Administrator. “USAID will build on the success of these interventions and working with global fund, we will begin scaling them to other provinces that have been hard hit by HIV.” She also added that there is a lack of liquid oxygen available for treating respiratory illnesses as shown during the COVID- 19 pandemic period, where USAID had to pitch in to support oxygen supplies. “During COVID we supplied oxygen to the two biggest hospitals in PNG and now we are increasing that assistance.” For this matter, Administrator Power said USAID is committing an additional million dollars to help health facilities invest in oxygen and other supplies that they need to treat these respiratory illnesses going forward.

Treasurer Ian Ling-Stuckey has assured Papua New Guineans that the country’s economy is performing so much better than the world economy, because of the government’s efforts in put together measures to protect the economy during a period of tough economic times experienced globally. Mr. Ling-Stuckey, when presenting the 2023 Mid- Year Economic and Fiscal Outlook (MYEFO) update in parliament this week, said that the good performance reflects the Take Back PNG stance by the Prime Minister, whereby the government putting together policies and strategies, that have protected the people from the economic downturns facing the rest of the word. According to the Treasurer, the latest IMF World Economic Outlook has confirmed the gloomy and uncertain projections of a year ago, with global growth estimated at only 3.5% in 2022, 3.0% in 2023 and still at 3.0% in 2024. “Indeed, 93% of advanced countries are expected to have lower growth in 2023,” said the Treasurer. “In stark contrast, PNG’s real non- resource growth will reach 4.8% in 2023, higher than the original budget forecast of 4.6%. This is very encouraging news; this is the best measure of how living standards are going in our country.” “Am overall real growth of 4.8% in 2021, 4.6% in 2022 and now 4.8% in 2023,” he said. The Treasurer explained that this is the strongest three- year performance in the non- resource sector since the peak of the PNG LNG construction period. “There is also good news that this strong growth performance is driving job growth. Indeed, job growth is even higher than non- resource growth and is running at 5.3% in 2023.” He went on to say that this is the highest rate of employment increase in more than a decade. “I encourage everyone to listen to the facts. This higher growth is based on the hard work of our people and with this growth, they are creating more jobs for our people,” said Mr. Ling-Stuckey. “We don’t have to wait for the resource projects to start re-growing our economy, we can achieve this growth despite the worst global pandemic in a century and the worst war in Europe since World War two.” Based on these positive facts and growing confidence, the Treasure said that now is also a good time to look at investing in the economy. “Start your SME, plant your new hybrid crops, and go for the new opportunities in labour mobility. The strong growth reflects the opportunities we want for all our people. We are implementing the Pangu- led vision.”

Treasurer Ian Ling-Stuckey has announced that the Kina is not depreciating or losing its value, to put to rest the doubts in Papua New Guinea’s currency in the world market. The Treasurer when presenting the 2023 Mid- year Economic and Fiscal Outlook (MYEFO) update, said the facts presented in the MYEFO clearly indicated that the Kina is in fact appreciating. “Over the first 6 months of 2023, compared to the same period last year, the Kina has appreciated against the Australian Dollar by 4%, the Kina has also appreciated against the Japanese Yan by 9.3%, the Kina has also appreciated against the Chinese Yuan,” said the Treasurer. “Why do people only talk about the 09% or less than 1% depreciation against the US Dollar?” He said overall, what is called the Trade Weighted Index, the Kina has been appreciated which is actually putting downward pressure on inflation as well. “Let’s base public policy discussions on the facts, not obsessive, disrespectful and personalized allegations.” The Treasurer also made mention his meeting with the Acting Governor for the Bank of Papua New Guinea (BPNG) where he was pleased with her view to not immediately devalue the Kina by 15% to 20%. “Her view and that of the board is that it would be too disruptive for our economy." "Instead, PNG will take a measured, steady path back to Kina convertibility.” Meanwhile, the Treasurer also said the MYEFO indicated that inflation is falling faster than expected, meaning that the country should experience decreases in the price of goods and services. “The inflation rate of 2023 has been revised down from 5.7% down to 5.5%." "It is expected to be below 5% in 2024, well below PNG’s historic average of some 7%."

The National Capital District (NCD), Governor Powers Parkop has suggested a more critical decision to be made on the issues with PNG Power Limited (PPL) and it's poor performance in providing energy service to the people. Governor Parkop, who commented on the parliamentary statement on the performance of the power company, indicated that his faith in the country's only State owned power company, has been reduced over time due to its poor performance and management. This has prompted him to say that it's time to consider the final option, which is to sell. He said this cannot continue any longer; the blackouts, huge amounts of debts owed to Independent Power Producers and electricity not reaching the rural areas despite the country going 48 years of independence, is just too much to endure much longer. "Energy is essential to life as we know it. Businesses buy their own generators, fuel and the cost is passed on to everyone," he said. "This will hinder investment in the country by overseas based investors." The governor did acknowledged the government efforts to rescue the power company saying that the plan for the next 15 years to improve PNG Power is bold but the changes must take place sooner. It is for this reason that the governor suggested that the government do a fire sale of PNG Power, selling parts of PPL where the State can get money from and service improved. This means that the state could look at selling out the energy transformation function of PPL to someone else to provide service in transmission, and maybe leave the energy generation and other functions to PPL to do.

The State owned power company- PNG Power Limited (PPL), is on the verge of insolvency, prompting the government to put together another rescue plan to pull it out of its dilemma. The Minister for State owned Enterprise William Duma made this known in parliament today when presenting his Parliamentary Statement on the Rescue and Reform Plan Framework on PNG Power Limited, 2023. Minister Duma said late 2022 the government, through trustee shareholder Kumul Consolidated Holdings (KCH), with the assistance and cooperation of PPL and other agencies, began preparing the foundations of the first phase of a rescue plan for consideration by the National Executive Council (NEC). This rescue plan has been approved by the NEC, announced the minister. Minister Duma added that the issues faced within PNG Power are legacy issues that have accumulated over time that had not be addressed fully by previous governments, and now the current government is taking steps to make sure the countrys only power company is up to standards and provides the service that it should for the people. PPL has reached a crucial point where all financial indications show that the company is in danger of insolvency, and requires significant cost cutting and recapitalization. It has not made a profit since 2016 and has accumulated losses from 2013 totaling K593.4million. It owed about K882million to unsecured creditors at the end of last year, the minister revealed. Based on the 2022 financial results, Minister Duma said PNG Power is averaging K76.9million in revenue a month and incurring K91million in costs, which is an untenable situation. Over the past decade, revenue has grown by only 27.61 percent, from K735million to K938million, which costs have increased by almost 50 percent from K768million to K1.15million. The minister went on to say that PPLs audited financial statements continue to be disclaimed, which signifies the view of external auditor that information is missing or does not exist and therefore, the auditor cannot provide an option on the accuracy of the account, which he said is the worst possible outcome from an external audit. In addition to this, Duma said the carried end of year balances are not confirmed, which limits the ability of the PNG Power Board of Directors and management to understand the companys financial situation with confidence and to make informed decisions going forward. Major contributing factors over the past 15 years that affected power system reliability, cost and accessibility include human capacity, aging infrastructure, an almost non- existent asset management program and a lack of capital investment in core assets,” Duma further added. Moving forward, Minister Duma said PNG Power is now embarking on a comprehensive and far- reaching restructure, based on facts established by expert analysis that has continued over the past few months with a methodical approach to deal with very deep and complex issues that have been allowed to worsen for more than 20 years. With support from treasury, PPL will execute a financial and technical turnaround. Corporate restructure is estimated to cost K26million, technical reform (engineering and retail) K155million, with contingency set at K30million. Minister Duma announced that KCH, PNG Power and Treasury have successfully sourced K1.075billion in funding to support PPLs 15 year Power Sector Development Plan, consisting of ADB K720million, Australian Infrastructure Finance Fund for the Pacific K250million and the World Bank K105million. The plan is for these funds to be released over the next 15 years, said the minister. The PPL reform will focus on 8 key areas; Organizational Efficiency Optimizing People and Culture Financial Management Strengthening Business Re- Capitalization Revenue Improvement Service Reliability Improvement Power Development Plan Regulatory Contract Negotiation (Tariff Setting) He said the corporate focus for the next six months will be stabilizing the balance sheet, cutting costs, instituting and Expenditure Control Committee, improving and tightening tender and procurement processes and right sizing the organisation.

The topic of law and order has been the dominant topic for questions and responses in this sitting of parliament, where the question now put forth is whether there will be a real working plan put together to address it going forward. The Minister for Internal Security, Peter Tsiamalili Junior, gave a simple response to this on the floor parliament today during question time when he said the matter falls back to all Members of Parliament and what they do in there provinces and districts. "There is a need for us to be working collaboratively to address law and order," said the minister. "There must be a need for all levels of government to address, it's a holistic approach." He said each province has its own law and order issues to deal with and planning must be done at the provincial level down to ward level. He said from the ward level, leaders now must work together with district and provincial level to identify the challenges and then have the Provincial Police Commander put together an operational plan where the Police Commander can deliver to officers in the districts, so to operate from. Minister Tsiamalili said that at the national level, where he as minister, will work on getting in the funding support and putting together policies to support all law and order initiatives and efforts on ground with police, the Judiciary, NGOs and community and civil society groups.