As Port Moresby Burns, blame the bush kanaka Treasurer

by MICHAEL J. PASSINGAN

As Port Moresby reels from the recent riots and the crippling aftermath that has left major supermarkets in ashes, it's crucial to delve deeper into the underlying causes of this economic turmoil. Central to this discourse is the role of PNG's Minister for Treasury, Mr. Ian Ling-Stuckey, whose recent budgetary decisions and overall economic management are now under intense scrutiny. This article aims to explore how Ling-Stuckey's policies have contributed to the current crisis and what this means for the residents of Port Moresby.

The Crux of the Crisis:

The week that should have marked a triumph for any Treasurer, showcasing a year’s efforts and outlining future prospects, turned into a debacle for Ling-Stuckey. His performance not only raised questions about his competence but also cast a shadow on the Marape Government’s economic credentials. The failure to table critical budget documents, the introduction of new, substantial taxes without adequate public consultation, and the resultant increase in the financial burden on families have contributed significantly to the unrest and instability we witness today.

Taxation without Explanation:

A pivotal issue has been the introduction of new taxes, particularly on corporations with significant market power, like BSP and Digicel. This move, perceived as a cash grab, is likely to have a domino effect, increasing costs for consumers and impacting sectors like superannuation, leading to reduced payouts for retirees. The lack of transparency and public consultation in implementing these taxes has been a critical point of contention, fueling public dissent and distrust.

Budget Mismanagement:

The recent budget, marked by a significant deficit and increased public debt, reflects a continuation of the financial policies that have strained PNG's economy. Ling-Stuckey's approach, characterized by uncontrolled expenditure and optimistic revenue assumptions based on shaky foundations, has contributed to a growing financial burden on the nation. The increase in public service wages and the opaque nature of certain budget allocations, particularly in an election year, further exacerbate the economic challenges.

Impact on Port Moresby:

For residents of Port Moresby, these macroeconomic issues translate into real and immediate hardships. The increase in taxes and the overall economic mismanagement contribute to higher costs of living, reduced job security, and a strained public service system. The recent payroll issue that sparked the riots is a direct outcome of these broader economic policies and their mismanagement.

The article by Mitch Renagi suggests that Ling-Stuckey and his team of advisors, including foreign consultants, have failed to effectively manage the nation's finances. Their approach has been criticized for being non-participatory and lacking in transparency, undermining democratic processes and public trust. The call for Ling-Stuckey’s resignation or dismissal by Prime Minister Marape reflects the extent of dissatisfaction with his performance.

As Port Moresby struggles to recover from the recent unrest, understanding the role of economic policies and their impact on everyday life becomes crucial. The actions and decisions of Treasury Minister Ian Ling-Stuckey have had far-reaching consequences, contributing to the current crisis. It is a stark reminder of the interconnectedness of national policies and local realities. For the residents of Port Moresby, the way forward requires not just resilience and adaptability but also a keen awareness of the economic forces shaping their city.