Temu: PNG Gets Windfall From Resource Projects

Which planet has he been on I wonder? Oh that's right he gets to see the money before it is squandered away by all those at the top of the resource income food chain, because as far as translating into tangible socio-economic development for the PNG as a whole - there's just a whole heap of hot air happening.



From The National By GYNNIE KERO

THE benefits from resource developments which the country receives are significant, Chamber of Mines and Petroleum former president Dr Ila Temu says.  He said this after arguments from some critics that the bulk of resource benefits were taken out of the country by investors.

“The level of benefits we receive from resource developments is significant.
“It is not correct to say PNG gets little and all is taken out of the country. 

We, at the Chamber (before leaving the role) disagree with that, the benefit distribution indicates that PNG retains a fair bit of benefits both in terms taxes, wages and salaries, business spin offs and compensation including equities.

“Under current policy, PNG retains 30% from mining and 22.5% in petroleum.
“Bulk of benefits generated by resource developments does not leave PNG. 
“Resource companies, particularly mining companies in PNG, do a lot more than other countries.
“My view is PNG country has done well out of these companies”, he said.

Temu said besides the payments of taxes, royalties, compensation and equities the mining companies also assist in the country’s development.

“Over and above, paying taxes, the companies operating in PNG have a community stand for health and education, roads and bridges.

Temu said revenues from the sector should be used for basic service delivery and infrastructure developments and challenged those who manage the funds to take responsibility.

“Challenge is more to do with companies that manage cash flowsor revenue from resource companies to do meaningful work to replace value of resources the companies take out. 

He stressed that the resource sector had contributed significantly towards country’s development.

The PNG Chamber of Mines and Petroleum is embarking on documentary programmes to create awareness and provide physical evidence onthe contributions of resource companies.