Post Sydney Mining Conference 1st - 3 rd December 2014. A Post Mortem
By GABRIEL RAMOI
A peculiar condition observed among weak States is the tendency of its Elite to go on a horse and pony show in the former Colonial Metropolis to drum up investment opportunities in their home Country as a panacea for dealing with the growing level of poverty, crime, lawlessness and Urban drift that is making life difficult and uncomfortable for these elites back at home. The Sydney Mining Conference is a horse and pony show that has become Stale as the same faces that do the rounds in Port Moresby reappear in Australia followed by a large retinue of Public officials happy to take a break abroad at tax payer’s expense to go shopping. I have lived in Port Moresby on and off for a period of over 30 years including spending time at both the University of PNG and the university of Bomana and I am frighten by the current level of rural migrants that have moved into Port Moresby since May 2014 following the successful completion of PNGs Fist LNG Project .
I am sadden to see Port Moresby inundated with a unplanned sea of unemployed humanity that have taken over the city’s public parks and space. This problem requires the attention of policy makers and public officials to hold public forums in PNG to immediately make a case for the allocation of resources to acquire land in areas such as South Simbu and to invite leading experts to these forums to discuss the best way to settle our rural immigrants to ease the pressure on all our infrastructure and support facilities and services in our cities of Port Moresby , Mount Hagen , Lae and now Madang. Talking to a group of Foreign Business man who care two bob about our unemployment problem at the Sydney Hilton will not result in finding a solution nor pretending that the problem does not exist. Already the sides of the main drainage system that runs through the Central Business District of Boroko and the pavements of the streets in front of the shops have taken a life off their own after 11.00pm every night as the marginalised in our society take over these space to rest their tired and hungry bodies for another night. Unplanned settlements at Garden Hill estate East Boroko and two mile have become a sore eye. We must immediately work on crafting a Social Security policy to deal with this issue and to also deal with the issues of Social Housing, Social Water and Social Electricity for all our people to arrest the flow of rural urban migration.
I am sadden to see Port Moresby inundated with a unplanned sea of unemployed humanity that have taken over the city’s public parks and space. This problem requires the attention of policy makers and public officials to hold public forums in PNG to immediately make a case for the allocation of resources to acquire land in areas such as South Simbu and to invite leading experts to these forums to discuss the best way to settle our rural immigrants to ease the pressure on all our infrastructure and support facilities and services in our cities of Port Moresby , Mount Hagen , Lae and now Madang. Talking to a group of Foreign Business man who care two bob about our unemployment problem at the Sydney Hilton will not result in finding a solution nor pretending that the problem does not exist. Already the sides of the main drainage system that runs through the Central Business District of Boroko and the pavements of the streets in front of the shops have taken a life off their own after 11.00pm every night as the marginalised in our society take over these space to rest their tired and hungry bodies for another night. Unplanned settlements at Garden Hill estate East Boroko and two mile have become a sore eye. We must immediately work on crafting a Social Security policy to deal with this issue and to also deal with the issues of Social Housing, Social Water and Social Electricity for all our people to arrest the flow of rural urban migration.
The solution to our problems is not in Sydney or elsewhere it is internal and in the long term requires renewed and sustained political will and courage to remove the last vestiges of Colonial and neo colonial laws and thinking that entrap us as a nation in order to unleash the true potential of this nation . It means the courage to make changes to our Mining and Oil & Gas Act that must see a tectonic shift in the ownership structure of our Extractive resources and I am sorry to remind our Sydney Mining Participants that this view will not find support in the Sydney Hilton or any Forums held abroad.
It follows that the State will also need to find more innovative ways of raising Capital to develop its Resources in a way that gives maximum return to the State so it can immediately adopt interventionist public policy to mitigate against the explosion of civil unrest and violence on our Streets as recently witnessed in Mount Hagen in the Burning down of Shops and Property by those that are marginalised in our society and have in recent times moved into our Cities to look for better opportunities for themselves and their children.
It follows that the State will also need to find more innovative ways of raising Capital to develop its Resources in a way that gives maximum return to the State so it can immediately adopt interventionist public policy to mitigate against the explosion of civil unrest and violence on our Streets as recently witnessed in Mount Hagen in the Burning down of Shops and Property by those that are marginalised in our society and have in recent times moved into our Cities to look for better opportunities for themselves and their children.
Let me Publicly speak to the Prime Minister and his two leading coalition Partners in Minister Micah and Minister Pruaitch through this blog not to be disillusioned by the current referrals by the Ombudsmen and the Public Prosecutor that may have shaken their confidence and dampen their enthusiasm and spirit in dealing with reforms inour resource sector but to remain them to have courage and be resolute in their desire to change policies and laws that will see a better outcome in the resource sector for the State in order to secure a more inclusive and shared prosperity for all our People.
It is a course worth fighting and dying for. Take heart , Just look across at Indonesian and study the resource ownership structure and resource extraction regime in that country and compare the ability of that country [ despite the corruption]to be is able to build modern infrastructures and lift 100million of its People out of Poverty with the use of the income from its extractive industries over the last 40 years. While the State in PNG has limited itself to owing 30% and 22.5% of its mines and hydro Carbon resources respectively in Indonesia it is 60% State ownership on a production sharing arrangement since 1966 with a current ban in place against the export of raw materials imposed in 2011 to take effect this year. Freeport copper has been forced by the Indonesian Government to stop exporting Copper Ore out of Indonesia and to build a copper smelter within Indonesia. Contrast that with the battle for their life by the Porgera Land Owners over a cleaning and laundry Contract and in Panguna a Civil War to increase landowner royalty from 2% to 10% from a Royalty pool accruing to the PNG Government of 2.5% of the Exportable Ore out of Panguna that was meant to be shared by the National Government , the Provincial Government and the Land owners.
Post Script. Since this article was written Port Moresby erupted with wide scale looting following the Malee between the Army and the Police on the early hours of the Morning of Morning of Saturday the 6th of December2014
It is a course worth fighting and dying for. Take heart , Just look across at Indonesian and study the resource ownership structure and resource extraction regime in that country and compare the ability of that country [ despite the corruption]to be is able to build modern infrastructures and lift 100million of its People out of Poverty with the use of the income from its extractive industries over the last 40 years. While the State in PNG has limited itself to owing 30% and 22.5% of its mines and hydro Carbon resources respectively in Indonesia it is 60% State ownership on a production sharing arrangement since 1966 with a current ban in place against the export of raw materials imposed in 2011 to take effect this year. Freeport copper has been forced by the Indonesian Government to stop exporting Copper Ore out of Indonesia and to build a copper smelter within Indonesia. Contrast that with the battle for their life by the Porgera Land Owners over a cleaning and laundry Contract and in Panguna a Civil War to increase landowner royalty from 2% to 10% from a Royalty pool accruing to the PNG Government of 2.5% of the Exportable Ore out of Panguna that was meant to be shared by the National Government , the Provincial Government and the Land owners.