Brings Protests

Airport Duty-Free Plan

A decision by Australia’s Department of Civil Aviation in May to allow a duty-free shop to operate at Port Moresby’s international airport, caused uproar among New Guinea busi nessmen.

Strong protests were made to the Administration and to the Common wealth about the decision, which came sudddenly and left established businesses with thousands of dollars worth of goods on their hands, which they saw little hope of selling quickly.

Businessmen pointed out that they could hardly be expected to compete with a duty-free shop in radios, cameras and perfumes, while they had to pay 35 per cent, import duty.

Travellers from all over the territory would buy duty-free in Port Moresby.

This would cripple retailers in other parts of the territory besides those in Port Moresby.

One of the biggest importers of the goods that will now be duty-free at the airport is Chin Hoi Meen and Sons, of Port Moresby, which currently has $150,000 of stocks.

Mr. Chin said it would take “years” to sell these goods with the com petition at the airport.

No warning

The company had been given no warning about the airport plans. If it had known, its advance ordering would have been different.

Businessmen stressed that they had no objections to duty-free operations provided the territory’s import taxes on the relative goods were waived and everyone—not just the airport shop—was allowed to sell the goods.

Retailers also complained about the short notice for tenders. Tenders were called on May 5, to close on May 13.

Following the protests, the depart ment extended the closing date until June 3.

There was suspicion among terri tory businessmen that Australian mainland interests knew about the move well in advance of the announcement; one organisation had sent a man to Port Moresby before the announcement and had looked at facilities.