WHILE businesses are operating as normal buoyed by the Government’s relief package to cushion the global fuel price hike, businesses are concerned about the redirecting of the K1 billion.
On top of that, there is also the forgone revenue as a result of the waiving of fuel taxes.
Manufacturing Council chief executive officer and Business Peak Body representative Chey Scovell told The National that for manufacturers, there would probably be greater confidence if resources of that scale were being applied to some of the structural problems holding back production every day.
Scovell said that the power supply situation in provincial centres was bad particularly in Lae.
And, in Port Moresby, the “looming” water supply crisis had impacted businesses.
He said that these were not occasional disruptions.
He said they directly affect production, jobs, investment and the cost of doing business.
“We do note and appreciate that retail fuel prices in PNG are being heavily softened through direct State intervention,” he said.
“That effort is appreciated, because fuel prices affect every household and business.
“Appreciating that our Government has to balance immediate cost-of-living pressures with the need to fix the systems that keep the economy running.
“Short-term relief is important, but it should not come at the expense of investment in reliable power, water and other essential infrastructures.
“Businesses are still operating, but the Middle East conflict is adding another layer of cost and uncertainty.
“Freight, insurance, fuel and imported inputs are all exposed, and manufacturers have very limited ability to absorb repeated increases without eventually passing some of that cost on.
“Like other nations, we are seeing significant cost increases throughout the supply chain, as well as direct scarcity (products not even available despite heavily inflated costs).”
Meanwhile, on the impact of the Government’s decision on Bougainville would have on the economy, Scovell said that it was a sensitive matter.
He hoped that the matter was handled peacefully, carefully and by using the proper constitutional processes.
