PNG Courts Foreign Investors

PRI VATE investment had a vital role to play in the development of Papua New Guinea’s agriculture, the Prime Minister Mr Wingti said in Port Moresby. He added that foreign expertise and technology would be welcome in the country for many years to come.

Mr Wingti was clarifying his Govern ment’s position in relation to foreign in vestment in the agricultural sector. In November, the Agriculture and Livestock Minister, Mr Duwabane, told foreign companies involved in the coffee and co coa industries they must be localised by the end of 1988 or face forfeiture of licences or expulsion from the country.

It is understood Mr Wingti was an gered by the Minister’s remarks and re primanded Mr Duwabane.

The Prime Minister said that in creased local ownership of businesses and enterprises in all sectors was an “under standable aspiration”. However, there was a limit on the amount on local capital available for investment in existing companies.

Mr Wingti said foreign investment had an important role to play in the rehabilitation and redevelopment of many rundown plantations.

Meanwhile Mr Wingti said also that his Government had granted a 10-year tax holiday to any new business established in a rural area of the country. Mr Wingti said rural development was his Government’s top priority (see feature, page 32) and that in the past two years Government expenditure in this sector had risen from 18 per cent to 27 per cent.

Mr Wingti said gold production was expected to more than double by 1991, and could outstrip Australia’s by the turn of the century. He said despite a preconception by many Australian businesses that Papua New Guinea was a “high risk” country, it was rated number 48 in international credit ratings, above most other developing nations.

Mr Wingti said the country was rich in resources, and was committed to encouraging foreign investment, but lacked capital, technology and expertise. □