Sunday 5 August 2018

Powes Parkop says no one must left behind to embrace the international feel of business space

PARKOP SAYS NO ONE LEFT BEHIND, NO ONE LEFT IDLE NOW AND TOMORROW IF BEST INTERNATIONAL BUSINESS PRACTICES ARE EMBRACED IN THE NON-RENEWABLE SECTOR

National Capital District Governor Honourable Powes Parkop is calling on the government to consider best international business models in the non-renewable sector to maximize benefits today and for future generations.

Commending the Prime Minister Peter O’Neill on his bold decision in 2013 to expropriate OK Tedi Mine Limited which had made massive profits since, Mr Parkop said the business model which was used in taking over the mine worked very well for the company netting millions in net profits for public coffers.

He acknowledged, however, that the government’s challenge now is on how best similar decisions should be made in the non-renewable industry for today and to secure a better future tomorrow.

Governor Parkop said the government should adopt international best business practices from countries which have successfully implemented them, citing Norway’s Sovereign Wealth Fund which has helped its citizens to enjoy a high quality of life with many basic services free of charge.

“To make massive investments in education, health and infrastructures in not easy. Prime Minister and our government have been on the right pathway,” he said.

The model in OTML was 33 per cent equity given to Western Provincial Government and the balance held by the State, he said, adding-however- the same model for Tolokuma Mine in Central province failed.

He further said free-carry equity share was given to landowners of Lihir Gold Mine in New Ireland but it has not declared any profit all these years and yet continue to operate.

“This is a paradox and shows they are not operating honestly. It is just like all the logging companies,” he said urging authorities to look into it.

This workable template in OTML should be replicated in the other prospects of the extractive industry as well, he said.

He further stated that decisions made by fellow MPs and the government now should foresee long-term benefits as if they were going be in power for more than a term in office unlike now which are only designed to suit short-term ones.

He compared that the country’s balance sheet was well-off with that of Malaysia which only had tin and rubber as their commodities when gaining independence in 1957.

However, after 61 years their health, education, infrastructures and others have been developed to almost as good as that of the first world, he said.

Governor Parkop said it is opposite that PNG is struggling to come off age.

It will turn 50 in seven years’ time and that the massive investments made by the government in growth centres like Port Moresby, Lae, Mt Hagen, Goroka, and Kokopo are decisions in the right direction, according to him.

Mr Parkop said the international best practices which the government should consider in the non-renewable sector are in profit-sharing, equity sharing and participation, environmental protection models, royalty sharing and other agreements.

According to him, OK Tedi Mine improved its balance sheets does not mean the environmental damages done to the people improved as well.

Parkop cautioned the government to avoid the mistakes of mine tailings in the new prospects including Wafi-Golfu and Frieda River which may cause long-lasting destructions to the Sepik and Markham river systems and its habitats if best environment practices are overlooked.

He cited the experiences of Fly River and Bougainville Copper Mine-affected areas.
He further called on the government to review its current agreement with regards to sub-contracts to the company and start embracing local contents especially food stuff ordered from overseas for catering services.

“We have to start at different model that can work for us. This is the type of decision we should be making,” he said when debating on a statement tabled yesterday (Tuesday, July 24, 2018) in Parliament by Prime Minister Peter O’Neill on the Annual Review of OTML.

Picture: Governor Parkop in Parliament

PARKOP SAYS NO ONE LEFT BEHIND, NO ONE LEFT IDLE NOW AND TOMORROW IF BEST INTERNATIONAL BUSINESS PRACTICES ARE EMBRACED IN THE NON-RENEWABLE SECTOR

National Capital District Governor Honourable Powes Parkop is calling on the government to consider best international business models in the non-renewable sector to maximise benefits today and for future generations.

Commending the Prime Minister Peter O’Neill on his bold decision in 2013 to expropriate OK Tedi Mine Limited which had made massive profits since, Mr Parkop said the business model which was used in taking over the mine worked very well for the company netting millions in net profits for public coffers.

He acknowledged, however, that the government’s challenge now is on how best similar decisions should be made in the non-renewable industry for today and to secure a better future tomorrow.

Governor Parkop said the government should adopt international best business practices from countries which have successfully implemented them, citing Norway’s Sovereign Wealth Fund which has helped its citizens to enjoy a high quality of life with many basic services free of charge.

“To make massive investments in education, health and infrastructures in not easy. Prime Minister and our government have been on the right pathway,” he said.

The model in OTML was 33 per cent equity given to Western Provincial Government and the balance held by the State, he said, adding-however- the same model for Tolokuma Mine in Central province failed.

He further said free-carry equity share was given to landowners of Lihir Gold Mine in New Ireland but it has not declared any profit all these years and yet continue to operate.

“This is a paradox and shows they are not operating honestly. It is just like all the logging companies,” he said urging authorities to look into it.

This workable template in OTML should be replicated in the other prospects of the extractive industry as well, he said.

He further stated that decisions made by fellow MPs and the government now should foresee long-term benefits as if they were going be in power for more than a term in office unlike now which are only designed to suit short-term ones.

He compared that the country’s balance sheet was well-off with that of Malaysia which only had tin and rubber as their commodities when gaining independence in 1957.

However, after 61 years their health, education, infrastructures and others have been developed to almost as good as that of the first world, he said.

Governor Parkop said it is opposite that PNG is struggling to come off age.

It will turn 50 in seven years’ time and that the massive investments made by the government in growth centres like Port Moresby, Lae, Mt Hagen, Goroka, and Kokopo are decisions in the right direction, according to him.

Mr Parkop said the international best practices which the government should consider in the non-renewable sector are in profit-sharing, equity sharing and participation, environmental protection models, royalty sharing and other agreements.

According to him, OK Tedi Mine improved its balance sheets does not mean the environmental damages done to the people improved as well.

Parkop cautioned the government to avoid the mistakes of mine tailings in the new prospects including Wafi-Golfu and Frieda River which may cause long-lasting destructions to the Sepik and Markham river systems and its habitats if best environment practices are overlooked.

He cited the experiences of Fly River and Bougainville Copper Mine-affected areas.
He further called on the government to review its current agreement with regards to sub-contracts to the company and start embracing local contents especially food stuff ordered from overseas for catering services.

“We have to start at different model that can work for us. This is the type of decision we should be making,” he said when debating on a statement tabled yesterday (Tuesday, July 24, 2018) in Parliament by Prime Minister Peter O’Neill on the Annual Review of OTML.

Picture: Governor Parkop in Parliament.


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