BiZ WATCH 2014 - BUSINESS COUNCIL PNG

BiZ WATCH 2014
Monthly ISSUE: MARCH
DATE: 31.03.14
Brief Updates on:
1.
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National Government Relations
National Working Group Meeting (NWG) ± February.
CIMC Transport & Infrastructure Sectoral Meeting.
CIMC Law & Order Sectoral Meeting No. 1 2014
CIMC Commerce and Services Sectoral Committee Meeting NO.1 2014
Mineral Resource Authority Board Meeting.
Consultations With the Tax Review Committee Secretariat
Socioeconomic Costs of Crime and Violence in PNG: Presentation.
&KLQD¶V$LG6FRSLQJ6WXG\± United Nations Development Programme
PNG Immigration Citizenship Services Authority Consultation on Business Community
BizClim Business Cocktail
2.
x
x
x
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x
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International Relations
Official Lunch in honour of the Prime Minister of Australia, Honourable Tony Abbott, MP
State Dinner with His Excellency President of the Republic Fiji
Consultations with Papua New Guinea Honorary Counsel to Turkey
Consultations with Deputy Foreign Minister of Argentina
Consultations with PNG Asia Pacific Economic Corporation Secretariat on the APEC 2018 Hosting
2014 East Asia /PNG Investment Forum & Trade Expo
3. Community Support
x PNG Business Coalition for Woman Inaugural General Meeting.
4. F rom the Secretariat
x 2014 Events Calendar.
x 2014 Membership Renewal.
5. Up-coming E vents
x
East Asia Investment Seminar Committee Meeting ± 4 April 2014
x
Business Cluster Consultations 9 ± 10 April 2014
x
Board Meeting ± 9 April 2014
x
Tax Review Consultations ± 21 April 2014
x
National Working Group ± 24 April 2014
N A T I O N A L G O V E R N M E N T R E L A T I O NS
National Working Group (NWG) Meeting ࡊ February
The National Working Group meeting had various briefings from senior government officers in relation
to law reform, land reform update, domestic industry protection and also access to finance framework
for SMEs. The law reform agenda for the government is a critical part of government business as it
ensures laws are relevant in the evolving circumstances of the country. Secretary for Constitutional Law
Reform Commission, Dr Eric Kwa highlighted the desire by his organization to have this outlook and
briefly addressed framework that is of interest to the private sector and they include: SME legal
framework, land reform and mining industry related amendments. His presentation also highlighted the
changes of the Land Act and key areas of focus such as the proposed changes in the
National Land Board, empowering provinces and districts to administer land issues and also a
transparent framework on registering and utilizing customary land for commercial use. Due to Dr
.ZD¶VLQYROYHPHQWLQYDULRXVODZUHIRUPDFtivities that are of interest to the private sector, he will be
invited to provide regular updates.
The Working Group also heard the presentation of Mr Greg Worthington Eyre, CEO of Trukai
Industries on the challenges his company faces on proposed preferential investment policies and
domestic protection. The key message was rules that were discriminatory and thereafter causing
investor uncertainty. An area members agreed require further government dialogue so as to work
towards a level playing field.
The final presentation was on an access to finance project the Bank of Papua New Guinea was
implementing. It aspires to be inclusive of SMEs and the private sector as a whole in accessing finance.
The National Working Group will also be reviewing all issues they are currently working on. This
exercise will assist in focusing on key areas of importance to the private sector. An update on this
exercise will be made available at the next edition of Biz Watch.
If any members would like copies of the presentations mentioned above, please do not hesitate to contact
the Secretariat.
CIMC Transport & Infrastructure Sectoral Meeting
In line with the Governments Development goals set in the vision 2050, PNGDSP 2030, the MTDP 2011-2015
and the Alotau Accord, the Government introduced the target based performance for all government departments
and State agencies where tasked to give an update on the current status of the Transport and infrastructure
development in PNG. The department of Works also deliberated the committee on the development taking place
within the infrastructure development authority (IDA) since the Alotau Accord.
CIMC Law and Order Sectoral Committee Meeting NO.1 2014
The Government has dedicated this year as the year of Implementation and one of those priority areas was the
Law and Order in the Country through collaborative and proactive approaches with the increased Private Sector
and Community participation. Representatives from various levels of the Law and Order Justice Sector were
invited to give an update on the statues of Law and Order and an opportunity for an open and transparent dialogue
between the Private Sector, Public Sector and concerned stakeholders on the challenges the Government is faced
with.
CIMC Commerce and Services Sectoral Committee Meeting NO.1 2014
As a Consultative body, the CIMC Commerce and Services Sectoral Committee comprises of representatives
from the Business Community including the Business Council of PNG with consulting firms, and the Government
Departments DCI, IPA, Treasury, DFAT, and others who take the same interest in promoting business
development in the country. All concerned stakeholders. The key issues discussed included the development of
the SME Policy, Progress of the Infrastructure Development Authority, High bank fee charges, the Tax review,
and update on the visa Facilitation.
Mineral Resource Authority Board Meeting
The Board has met twice this year. The first was an update on the annual programme of the organization as well
as presentations on key areas they intend to focus on. The second meeting focused on the approval of the 2014
budget. Although the industry generally is going through challenging times with the low mineral prices, the MRA
is still attracting interest around the world on exploration and joint venturing on existing projects.
Consultations With the Tax Review Committee Secretariat
In improving the taxation system and ensuring it is relevant for the current economic outlook, the government
announced last year of a high level Tax Review Committee led by Sir Nagora Bogan. Their Terms Of Reference
was finalized early this year and the committee has progressed in devising a consultative arrangement as well as a
Work Plan. The Secretariat met with Ms Kessy Sawang and her team in the Secretariat charged to assist the
Committee. They briefly mentioned Tax Review has a two-phase consultation strategy.
The first 'Blue Sky' consultation is where stakeholders are invited to provide their perspective on the need and
broad directions for reform and the key priorities. This phase would help the Committee to formulate ideas for
the direction of tax reform, build a consensus for the need for reform, and ensure key areas are covered in the
review. This first consultation phase would be informed by an issues paper that sets out:
(a)PNG's current tax system;
(b) international best practice and/or the general direction of tax reform both globally and in comparable
countries;
(c) key directions and major specific questions or issues that are expected to be addressed in the review.
Following the release of the issues paper, the Review would hold a series of public consultations around the
country to provide an opportunity for stakeholders to raise and discuss ideas. Stakeholder groups would also be
invited to make written submissions on the issues presented in the issues paper. The Tax Review Committee will
consolidate all issues raised by stakeholders into a draft final report.
The second stage of consultation is on the draft final report. After all views and issues are consolidated into a
draft final report, this will be released to the stakeholders / public for comments. After this phase, the final report
will be finalized and given to the Government through the Minister for Treasury.
The 'Call for Papers' notice that we've been publishing in the newspapers is the first 'blue sky' approach. This
ends on April 30.
Due to the importance of the extractive industry sector, The Mining & Petroleum Taxation Regime Review Issues
Paper was officially released by the Tax Review Committee on Thursday, 20th March 2014. Business Council is
working closely with the Chamber Mines and Petroleum and other organizations to provide feedback. It is
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for feedback and comment. The Council will provide regular feedback on these consultations.
As part of our commitment in this process, the Council is organizing a working group meeting with the Tax
Committee towards the latter part of April. Members will be informed on the time of these consultations.
Socioeconomic Costs of Crime and Violence in PNG: Presentation
Survey conducted by World Bank has indicated that cost of crime and violence in PNG has escalated over the
years and that has impacted business operations throughout the country. In the recent presentation on
µ6RFLRHFRQRPLF&RVWVRI&ULPHDQG9LROHQFHLQ31*¶ , concerns were raised on issues such as security, women
constraints, transportation, cost of living, youth issues and residential concerns. In terms of crime alone, 67 per
cent of firms see crime as a major constraint specifically in Building construction, Retail wholesale and Transport
communication.
Respective entities such as Air Niugini, PNG Ports, PNG Chamber of Mines & Petroleum and CPL Group despite
having strategies in place outlined the challenges faced while doing business not only in Port Moresby but other
centres throughout Papua New Guinea.
Following the presentations participants contributed in discussions involving the Government to seriously look
into addressing the cost of crime and violence in PNG.
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In their efforts to appreciate how they may support pacific economies, the Chinese government along with the
United Nations Development Programme are undergoing a scoping study on Chinese Aid in the pacific. The lead
researchers, Dr Graeme Smith, Ms Mao Xiaging, and Ms Alamah Tararai met the Executive Director in an initial
consultation to gauge aid and trade relations. The study will certainly add value to the current interest on Asia
and PNG trade and investment interests.
PNG Immigration Citizenship Services Authority Consultation on Business Community
President Mr David Toua and key members of the private sector participated in the recent consultations with the
Business Community on the review of the PNG migration legislation. Over the last 12 months, the Immigration
and Citizen Service Authority has undertaken FRPSUHKHQVLYHUHYLHZRI31*¶VPLJUDWLRQOHJLVODWion with a view
to developing more comprehensive and modern border control and visa arrangements. In terms of visa
arrangements, the government is keen in supporting the economic development of the visa systems and would like
to see this legislation reflect its intentions and that is to being able to deal effectively with the business visa.
According to Mr Greg Mills, a consultant on this review, the legislation is close to its final draft.
BizClim Business Cocktail
The cluster initiative is fully funded by the European Union which is a first of its kind in the Pacific Region. Four
neighbouring Pacific Countries Samoa, Tonga, Vanuatu and PNG have been identified to create the Pilot Cluster
Initiative respectively. The number of potential clusters in PNG made it difficult for the team to identify the
cluster. Industries identified were Fisheries, Music, and Bio-Tech, fashion Design, ICT and Agro Industry.
The Business Cluster Cocktail organized by the European Union and Business Council of PNG introduced to the
industries a range of stakeholders, including Private Sector, Public Sector, Donors, Financial Institutions and
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Mr David ToXDGLGVWURQJO\DIILUPLQKH¶VVSHHFKWKDWWKH3ULYDWH6HFWRULVIXOO\VXSSRUWLQJWKLVMRLQW-initiative
project and will assist in any way possible to help develop the PNG Pilot Project. A further consultation was
done and the ICT Sector was identified on merit to be PNG's Pilot Cluster Project to build value chains. The ICT
Cluster Workshop will be hosted in Port Moresby at Gateway Hotel on the 10th of April 2014.
I N T E R N A T I O N A L R E L A T I O NS
Official Lunch in honour of the Prime Minister of Australia, Honourable Tony Abbott, MP
The President and several members were invited for a luncheon to welcome Prime Minister Tony
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support for a robust bilateral framework that not only promotes trade and investment but also facilitates
aid arrangements strengthening trade and investment facilitation. He also highlighted the need to invest
resources to expand the current Asia Pacific Technical Colleges so as to build the Technical and
Vocational centres as skilled workforce is an urgent priority. Prime Minister Abbott briefly responded
in stating that the signing of the Economic Corporation Treaty intends to address these issues and urged
the President and the Council to continue its healthy existing dialogue with PNG and Australian officials
in ensuing they are an integral part of the Treaty.
State Dinner with His Excellency President of the Republic Fiji
Executives were invited to a State Dinner hosted by the Governor General of PNG, Sir Michael Ogio, to
welcome his counterpart, President Ratu Epeli Nailatikau. Discussions with his private sector entourage
ensued interest in deeper trade and investment relations. Regular dialogue was a key area Executives
stressed as a pathway on fostering business relations.
Consultations with Papua New Guinea Honorary Counsel to Turkey
The Executive Director briefly met the new Papua New Guinea Honorary Consul to Turkey, Dr Celal Metin and
his delegation which included Special Envoy to PNG, Ambassador Mural Ersavci as well as the previous PNG
Honorary Consul, Sir Hugo Berghuser. They showed great interest in facilitating investment in gas,
petrochemicals and energy. Agriculture was also another sector they would want to explore as well.
Consultations with Deputy Foreign Minister of Argentina
The Executive Director briefly met the Deputy Foreign Minister of Argentina and his delegation that consist of
Argentina Ambassador Designate to PNG, Mr Petro Delgado and two colleagues from Buenos Aires in charge of
Pacific. Agricultural exports as well as manufacturing are areas they would like to explore investment
opportunities.
Consultations with PNG Asia Pacific Economic Corporation Secretariat on the APEC 2018 Hosting
Business Council was invited to an APEC 2018 update hosted by the PNG APEC Secretariat Director, Mr Lahui
Ako. His presentation indicated a 4 year plan in preparation of the 2018 event. 6 committees have been
designated and range from logistics, security, policy and the private sector. Each has various Ministers providing
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sector input. Therefore members will be updated on the progress of the 2018 event.
2014 East Asia /PNG Investment Forum & Trade Expo
The up-coming East Asia / PNG Investment Forum and Trade Expo is set to feature the top 20 investors in both
East Asia and Papua New Guinea. The Business Council is gearing up to host a high level engagement on
potential investment in both East Asia and PNG.
In preparation to this significant event, the Council has had dialogue with relevant entities such as the Investment
Promotion Authority (IPA), PNG APEC Secretariat and financial Institutions. This initiative is the first of its kind
and has already gained interest from all sectors.
This is also an opportunity for PNG investors to attract huge potential markets from the East Asian region. The
East Asia Seminar committee will meet later this week to further collaborations with partner agencies. The Forum
will be held in Singapore, from the 29 ± 30 July 2014.
C O M M U N I T Y SUPP O R T
PNG Business Coalition for Woman Inaugural General Meeting
The Inaugural General Meeting was a milestone in the efforts of the private sector and various
development partners in progressing women participation in business. The Council congratulates Ms
Lesieli Taviri as President of the organization. In her acceptance speech, she was thankful for the
opportunity to partake in this exciting initiative and looks forward building support to progress women
in business.
F R O M T H E SE C R E T A R I A T
2014 Events Calendar
For more info on the Business Council 2014 Events Calendar contact the Business Council office on the
telephone numbers provided.
2014 Membership Renewal
As you are aware, the Business Council of PNG financial year in-terms of membership will end in March 31st
2014. Members are urged to renew membership for 2014. Membership covers the year 1st April 2014 to 31st
March, 2015. Membership applications for 2014 will be circulated for renewals.
For more information on membership contact the Business Council office on telephone numbers below or you can
also download copies from the website.
UP-C O M I N G E V E N TS
East Asia Investment Seminar Committee Meeting ࡊ 4 April 2014
Business Cluster Consultations 9 ࡊ 10 April 2014
Board Meeting ࡊ 9 April 2014
Tax Review Consultations ࡊ 21 April 2014
National Working Group ࡊ 24 April 2014
For more information do not hesitate to contact the Business Council on 3200700 or
go online and visit our website: www.bcpng.org.pg

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