12-03-2012, 04:24 PM
Huge O'Neill speech on fighting corruption/making investment in PNG resource sector. Huge positive for IOC moving forward.
Fighting corruption –‘we’ll give it our best shot’: O’Neill
Michael Cairnduff
Monday, 3 December 2012
THERE had never been a better time to invest and participate in the development of Papua New Guinea’s resource sector, according to Prime Minister Peter O’Neill.
Prime Minister Peter O'Neill. Photo by Michael Cairnduff.
Opening the PNG Mining and Petroleum Investment Conference in Sydney this morning, he gave investors a commitment to maintain a “very stable and strong political environment” conducive to investment.
“We will soon make it even stronger and more stable. The mid-year national elections were essentially fair and trouble free. That led to the formation of a new parliament in early August, which elected the new government with an overwhelming majority,” O’Neill said.
The key message from the PNG Prime Minster – aside from spruiking the benefits of long-term political stability he believes his coalition government offers – was to commit to fighting corruption, and growing transparency and accountability.
“I am able to assure you today that just as we a have strengthened the political stability, we are on the way of taking a tough and uncompromising stand against corruption that our people are now demanding.”
“I do not pretend that we can eliminate corruption completely, but we are going to give it our absolute very best shot in fighting this fight. We have already established a task force with wide-ranging powers to investigate corruption and theft of public monies.
“Many arrests have been made and many will follow. No one involved in corruption should feel safe – this includes political leaders, public servants and business people alike.”
The next step in this fight is to establish an independent anti-corruption authority, which will require the passing of legislation scheduled to be introduced in the first session of PNG’s parliament next year.
“While the initial focus will be on public officers, I want to assure you that corruption in the private sector will not be ignored. Corruption is a cancer – it needs to be cut out sooner rather than later,” he said.
“The best way to deal with this is to have a strong deterrent. This authority that we are going to establish will also have tough penalties to back up its work.”
O’Neill believed PNG was well positioned to benefit from continued growth and development in the Asian region, but pointed to productivity being another of his country’s key challenges in harnessing the potential benefits.
“I think we have already dropped the ball when it comes to productivity and that also applies to the resources sector.
“I think we have been far too complacent about cost blowouts in the construction phase of our major resources projects. We have to get serious about the cost of doing business in PNG.
“It is an issue my government must and will address, as we set more attractive incentives to attract more investors, which of course leads to more revenue.”
O’Neill accepted the productivity of PNG agencies and companies was also contributing to the issue. He called for direct dialogue between government and all other stakeholders to work towards driving down construction costs and reducing impediments to production.
“I think there is a need for us now to establish a productivity commission to advise government on the steps that must be taken so the economy becomes competitive.”
The Prime Minister also took the opportunity to confirm a previous budget announcement that his government would review all mining and petroleum taxes and charges.
“The government understands that mining and petroleum tax changes must be more than a very welcome contributor to the budget process.
“We understand that they must be enforced in a way that does not act as a significant disincentive to investment and international competitiveness.
“This is why we are having a wide-ranging review of this process, which will enable us to take into account the changing nature of the resource sector and the impact on our revenue.
“We must have a modern and competitive resource tax regime. This project will be a high priority for our government and your constructive contribution will be fully-welcomed and considered.”
PNG was at a critical stage in the development of its mining and petroleum sectors, according to O’Neill, where the country needed to secure a pipeline of projects not just to service export markets, but to supply domestic requirements – particularly in terms of energy.
He also appealed for further exploration and mining developments, particularly from the non-major end of town and issued a challenge to prospective investors to look at taking on board PNG partners from the outset.
“We have a rapidly growing number of companies and individuals who have been very successful in professional life.
“We have very successful contractors, transport operators, engineers and other professionals, who can get access to funds that can be used to directly participate in the next phase of development.
“Successive governments have been too generous when it comes to fly-in, fly-out arrangements for our major resource projects. What I want to encourage is a review of these arrangements, so we can build more resorts in regional centres that can benefit from these projects.”
O’Neill used the 1000-delegate strong forum to reiterate the strength of the foundations that make up his government and its credential for longevity.
“The government that we have formed is a multi-party coalition led by my own party – the People’s National Congress Party.
“It includes parties in the coalition who were with me before the elections and, of course, the National Alliance Party led by Michael Somare that joined us to form this coalition.
“During the negotiations leading to the formation of government, I want to assure delegates there was a complete reconciliation between the former Prime Minister and his party, and of course our party and our coalition partners.
“This is good for the country and it enabled us to afford our first Prime Minister, the father of our nation, the respect and the credit that was due to him for his long and distinguished service to PNG.
“He is a strong supporter of our government and members of his party are now ministers in our cabinet. I was also supported in the vote after the election by two other former Prime Ministers, who are also members of the parliament.
A key policy designed to underpin stability of the new government, according to O’Neill, was a unanimous vote last Tuesday to amend the constitution in order to extend the period an elected prime minister was protected from being removed by a vote of no-confidence from 18 to 30 months – half the life of the full parliamentary term.
“Continuous votes of no-confidence have brought about a lot of instability in the country – not only political instability but policy instability.
“I know that every major investor in mining, gas and oil want a very stable and certain political environment. I can now give you my absolute commitment that we will deliver long term political stability.
“Our main task now is to deliver the benefits that flow from that stability.”