Making investment safer
p. 32 · Read in the full issue
AUSTRALIAN investment in Papua New Guinea is to be safeguarded under a new commercial treaty signed by both countries during Prime Minister Bob Hawke’s recent visit to Port Moresby. The treaty was drawn up against a background of increased Australian apprehension about investing in Papua New Guinea following the closure of the Boueainville copper mine, and the general lawlessness and
political capriciousness in some quarters. The Promotion and Protection of Investment Agreement is designed to provide greater security for Australian companies operating in Papua New Guinea, and included in its terms is a financial guarantee against the threat of nationalisation. Also, Australian companies will be able to import capital and skilled labour more easily to develop projects. A problem for many expatriate companies is obtaining work visas for foreign staff, with often weeks and months of delays involved. Australian firms invested about US$l.63 million in PNG last year. D