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Foreign Trade

Strengthening Ties with Japan

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Prime Minister James Marape met with the Prime Minister of Japan, Fumio Kishida, before attending the state funeral of Japan’s former Prime Minister Shinzo Abe.

PM Marape was accompanied by International Trade and Investment Minister, Richard Maru and East Sepik Governor, Allan Bird.

“Today was just a short, one-day visit to Japan for me, but very important in consolidating relations between our two countries,”

“There are 191 world leaders here today to attend the State Funeral of the late Shinzo Abe, and for PNG to have been accorded the honour of meeting Japanese Prime Minister Kishida is very special,” the PM said.

The Prime Minister also met with executives of Japan’s major energy companies with discussions centred around the LNG project and downstream processing which the Government is pushing for PNG to be more active in.

“Prime Minister Kishida, during our discussions, highlighted Japan’s need for energy security as well as the need for trade between our two countries to grow.”

Japan through its JX Nippon Oil and Gas Company is a joint venture with Nippon PNG LNG, which has interests in the PNG LNG Project. Since the 1st shipment, PNG has supplied approximately a 7.9million tonnes of liquefied natural gas every year to the world market, and Japan is one country that PNG supplies.

Japan is also involved in other major projects like the K692million Nadzab Airport Redevelopment Project which is currently in its construction phase. The project is captured under Japan’s Economic Corporation program which aims to improve PNG’s economy and broaden internationalization.

“Prime Minister Kishida highlighted the fact that PNG is an important bilateral partner of Japan,” said Marape.

Prime Minister Marape concluded his meeting by assuring the Japanese Prime Minister that outstanding trade treaties between the two countries will resume and PNG will continue to assist Japan where necessary, especially in its energy security needs.

The Prime Minister left for the United States where he will attend the Pacific Islands Summit in Washington DC.

Prime Minister James Marape and Japanese Prime Minister Fumio Kishida during their meeting this morning in Tokyo. Picture by PM’s Department
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Politics

Revenue from a Black Economy

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Gary Juffa_Inside PNG

A member of parliament has urged government to ensure the revised 2022 money plan is implemented soundly.

Northern Governor, Gary Juffa said while many local citizens were being over taxed and paying their dues, others weren’t.

“We have a black economy! It is an area where a lot of illegal activities happen or taxes are evaded or transferred,” Governor Juffa said.

The former PNG Customs Chief turned politician said, “The black economy has billions of Kina in there that never make it into our (PNG) coffers”.

He alleged that there were illegal activities taking place outside PNG waters.

“Did you know Mr. Treasurer, that significant or large volumes of fuel used by some of the players in this black economy, especially those in the forestry sector and those in the fisheries sector come across from the borders of Indonesia?”

“They are never taxed, they just hover outside our EEZ (Exclusive Economic Zones), ships go out (to sea) and get the fuel and come here and spread it out to their operations, and they pay absolutely no excise duty on this,” Garry Juffa said.

“We need to take these guys (companies not paying tax) on, we need to hold them accountable, we are not doing that!” Governor Juffa added.

“Most of it is transmitted offshore to build empires in other countries,” he concluded.

He said it was time institutions of government step up, and ensure that they serve the interest of the nation with integrity.

“We need to carry out a review of all the creatures (government entities) that we have created”.

According to an Attorney General’s report of the year 2018, 1419 government entities are operating in the country.

“Many of these organizations are performing in the best interest of the country, they are assets but there are a great number of them that are liabilities,” Governor Juffa said.

“They have executives, some have boards, they have a budget line, we don’t know what they do.

The state entities soak up significant amounts of money that ought to go to schools, aid posts, roads, bridges etc,” said Juffa.

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News

Supplementary Budget Tabled

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Treasurer Ian Ling-Stuckey_Inside PNG

The seven new electorates have been included in the Supplementary budget of 2022 which captures revenue from reviewed tax measures, plus surge in global oil prices, versus a K611 million Household Assistance Package.

“We have major increase in net revenues as well as the need for specific appropriations such as, K160 million school project fee subsidies announced as part of our household Assistance package,” Treasurer Ian Ling-Stuckey said in parliament.

The Supplementary budget is framed following the country’s election aimed at continuing the promise by government to steer the country to the Prime Minister’s dream of “becoming the richest black Christian nation.”

“There is also the need to provide additional funding for the seven (7) new districts that have been created and K3million each has been provided,” he said.

This is Ling-Stuckey’s fourth Supplementary Budget since being elevated to the Ministry and one that is still framed amidst pressure from external economic conditions.

“(Budget) is framed in what the IMF (International Monetary Fund) calls, the ‘gloomy and uncertain‘ outlook for the global economy, however, there are promising economic times ahead for PNG.

“PNG is experiencing by far its highest growth rate, in the Kina size of our economy in its history,” the treasurer added.

While the announcement may seem as welcome news for many, the real pressure of the rising price of goods and services is still being felt by the average Papua New Guineans.

“As highlighted in the comments on MYEFO (Mid Year Economic Fiscal Outlook) report, we must make sure, that positive macro economic news, does not blind us to the pain being faced by many families,” he said.

The priority areas of government expended through the K611million Household Assistance include:

  1. K250 million for continued removal on tax on all fuel products.
  2. K126 million for school project fees.
  3. K135 million from Tax collection
  4. K100 million for subsidizing household commodities.

Tax measures are again a key feature in the 2022 revised money plan, this time with cuts in Personal Income Tax for all wage earners.

“I was pleased that from 1 June 2022, all wage earners paying tax are receiving up to an extra K42.30, in their fortnightly pay packets,” Ling-Stuckey said.

He also noted the Additional Profits Tax which was supposed to be implemented on the banking sector, has not been implemented.

“For some reason, the tax cuts have not been processed, through the ALESO pay (roll) system”, the Treasurer said.

Another initiative of the Pangu led government is to subsidize household items.

“In April, we announced, that arrangements will be made by IRC with local firms, whereby firms would lower cost on key items such as flour, tinned fish, rice and OX and palm and in return they would be granted an equivalent reduction in taxes,” Ling-Stuckey said.

The assistance, however, took time to implement earlier this year because of the need for several legislative changes.

“We apologize for the delay…we will be watching closely the performance of IRC in this area, to ensure the changes are put in place this year,” he said.

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Autonomous Bougainville Government

ABG Rejects Nationwide Consultation

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The Autonomous Bougainville Government (ABG) has rejected Prime Minister James Marape’s statement calling for a nationwide consultation on Bougainville’s 2019 Referendum for Independence results. The ABG’s response is to Prime Minister James Marape’s inaugural statement delivered when he was elected as Prime Minister on August 9th.

The ABG maintains that ratification of the 2019 Referendum will be done by the National Parliament and does not require the citizens of Papua New Guinea to consult on the matter.

ABG Attorney General and Minister for Bougainville Independence Mission Implementation Ezekiel Masatt clarified that there is no legal basis for the proposed nationwide consultation as Prime Minister Marape alluded to. Masatt highlighted the provisions of the 2001 Bougainville Peace Agreement which called for a referendum and the results to be discussed in Parliament alone.

“Per the requirements of the same laws, the ABG and the National Government are the only two parties that will consult the overwhelming 97.9 per cent outcome of the referendum, there is no mention of a nationwide consultation on the matter,” said Minister Masatt.

Masatt said it has become clear that the National Government lacks the institutional memory to fully understand the intentions of the 2001 Bougainville Peace Agreement and urged the National Government to stick to the agreements reached by both Governments in the joint consultations.

“It has been agreed that independence will be no earlier than 2025 and no later than 2027. Let me make it absolutely clear, that Bougainville will be independent,” Masatt stated.

Prime Minister James Marape during his inaugural speech on August 9th.

Meanwhile Prime Minister James Marape is yet to appoint a Minister for Bougainville Affairs. In the last three and a half years, the office was held by four different MPs including the Prime Minister himself. However, when announcing his 2022 Cabinet yesterday, the Prime Minister said Bougainville needs a full-time Minister who will commit to the cause on Bougainville. Marape added a Minister will be appointed in the coming weeks.  

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Politics

Sawang Misses Out

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Kessy Sawang, Rai Coast MP

One of only two women members of Parliament, Kessy Sawang narrowly missed out on a ministry as the new cabinet was made known today.

Prime Minister, James Marape said, she could have been considered if her party numbers permitted and provincial number allowed.

“She’s (Kessy Sawang) in the mix. I’ve consulted her and she was gracious with her words,”

“She said whether Minister or not I’m here to offer services,” PM Marape said when he contacted the MP.

All provinces who have representatives in the Pangu led coalition where given two ministries each.

The two continuing ministers from Madang where returned their jobs with Madang MP and single member of the Allegiance party in the coalition, Bryan Kramer as Minister for Labor and Immigration while Pangu man, Jimmy Uguro was re-awarded the Education portfolio.

“This was not an accidental pick or for political rearrangement. The leaders are placed to the structures we have in place now to secure our country and improve the economy,” Marape added.

Two provinces missed out in the ministry distributions including the two-seat Manus province as well as the Prime Minister’s beloved Hela province.

Mr Marape added, citizens should move away from the Western view of women representation in parliament.

“I want to encourage our Papua New Guineans to think away from the gender issue.”

“The Ministers here represent our people and we represent the women as well,” Marape said.

The 9th parliament saw women MPs hold office of minister. In 2017 no women were elected into Parliament, now there are two.

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Politics

Agriculture Reform Centre

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Major changes in the agriculture sector herald an economic drive by government as it laid out its ministries and office bearers this afternoon.

Prime Minister, James Marape announced the new ministries which includes:

*Livestock,
*Oil palm,
*Coffee and,
*Agriculture.

Mr Marape says this will help streamline the job of the ministers concerned into specifics, so that the country’s produce can be enough to supply locally and meet global export demands.

The new look cabinet will also have a minister responsible for International Trade and Investment.

Other key changes in the cabinet make-up include reforms to police and correctional services which will now come under one ministry which is International Security.

All other ministries remain the same with little or no changes in the 33 ministry National Executive Council.

With 32 already occupied, the only other ministry yet to be filled is Bougainville Affairs.

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Politics

President Toroama Congratulates PM Marape

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Toroama-Marape

PRESIDENT of the Autonomous Regional of Bougainville, Ishmael Toroama has extended a word congratulations to Member for Tari-Pori, James Marape on his election into Prime Ministership.

In the same fashion, the Bougainville President also congratulated Member for Manus, Job Pomat for being re-elected as Speaker of the Papua New Guinea House of Parliament.

In a statement, Toroama said the 11th National Parliament will play a pivotal role in determining Bougainville’s ultimate political future when it ratifies the 2019 Bougainville Independence Referendum Results.

In 2019, 97.7 per cent of Bougainvilleans voted for political independence from Papua New Guinea.

Since Toroama’s inauguration as President of Bougainville in 2020, both he and Prime Minister Marape built a rapport based on trust and respect despite differing opinions on Bougainville’s political future.

Toroama stated that the 2001 Bougainville Peace Agreement has been clear on how both the ABG and Government of PNG must implement its provisions on Bougainville’s political future.

Adding that there are no short cuts and that the implementation of the Bougainville Peace Agreement must be done according to the existing legislative frameworks on peacebuilding on Bougainville.

The Bougainville President stated that he looks forward to implanting the BPA with Prime Minister, James Marape the National Government.

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Politics

O’Neill Did Not Vote

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PM Marape

PNC Party Leader and former Prime Minister, Peter O’Neill walked off the floor of Parliament moments before the election of the Prime Minister.

Earlier in the day, a three man Supreme Court bench refused an application by Mr. O’Neill to stay the Parliament Sitting.

Just before 4pm, Tari Pori MP, James Marape was elected Prime Minister for the 11th Government of Papua New Guinea unopposed with 97 votes to Nil.

Marape’s election as Prime Minister comes after Manus Open member-elect, Job Pomat was voted in as Speaker unopposed.

Marape was escorted down to the Government House at Konedobu and sworn in as Prime Minister.

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Politics

Pomat Voted Unopposed as Speaker of 11th Parliament

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Member for Manus, Job Pomat has not only been re-elected as the Member for Manus but also as the Speaker for the 11th Parliament.  

Pomat was nominated by Gulf Governor, Chris Haiveta.

With no other nominations, Member elect for Madang Open Brian Kramer called for the close of nominations.  The Clark of Parliament Mr Kala Aufa then declared Mr Pomat the Speaker of the 11th Parliament unopposed.  

As is tradition, a man dressed in traditional attire stands beside the Speaker’s Chair and beats the drum as part of the announcement.  

Pomat was then escorted by a jolly Chris Haiveta and Governor for Hela, Philip Undialu to the Speaker’s Chair.  

“Honorable Members, mi laik kisim displa taim, tok bikpla hamamas tru, long thankim parliament givim mi displa bikpla honor, olsem Speaker blong displa 11th Parliament”.  

[Translation: “Honorable members, I would like to take this time, to thank the parliament for giving me the greatest honor of being the Speaker of the 11th Parliament.“]

Following a short speech, the Clerk of Parliament then announced that the Mase which has been placed under the table has been raised to the top of the table following the election of the Speaker and the beating of the kundu drum.  

“Honorable Members, the mace which has been placed under the table has been raised to the top after the beating of the garamut, signifies that the Parliament is in session with the Speaker elect presiding.” 

A Mace is a symble of authority that is placed on the table in Parliament when the Speaker is in Chair.  Pomat then adjourned the parliament for a few minutes to allow for his official swearing in  at the Office of the Governor General. 

He later returned to Parliament to chair the nominations for the Prime Minister’s seat among others.  Job Pomat was first elected to the 8th Parliament in 2007 under People’s National Congress Party.

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National Elections

Marape: “Marat A Dignified Leader”

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Tari Pori MP and leader of Pangu Party, James Marape has described ousted Rabaul MP, Dr Allan Marat as a dignified leader. He said Dr Marat showed true leadership by accepting defeat and commending his successor, Graham Piniau Rumat.

“He lost by three votes and did not ask for a recount. Dr Marat showed maturity and I praise his style of leadership,” said Marape.

The Pangu Party leader said the action taken by Dr Marat is a living example to our young generation of leaders. Marape said accepting defeat is not easy for many of us.

“The Office we hold is not our birthright. The people of Rabaul have spoken and Dr Marat as a leader has applauded this,” said Marape.

It’s a good reflection and testimony to all of us. We all must learn from this and be inspired because Dr Marat is one political character you will hardly find, said Mr Marape.

Marape added that leaders are mandated by people.

“Public office is not anyone’s birthright or inheritance, it’s a public space appointed by people”, said PM Marape.

The Pangu leader further mentioned that in every election there is always a giant slayer.

“It just happened to be the case for the Rabaul Open Seat; the Member elect, Graham Piniau Rumat is one in Papua New Guinea’s political arena,” said Marape.

The Pangu leader said Rumat has been chosen by the people of Rabaul and deserves the respect of a leader.

Mr Marape said the new member for Rabaul is expected to be in Port Moresby and will be joining the other Pangu declared leaders before heading over to Wewak for camp.

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