Time to stop the aid and start the trade
26 June 2010
REGINALD RENAGI has
previously commented about the need to promote trade between PNG and
Other people in PNG have also commented on the need to promote trade so PNG businesses are encouraged to expand and develop trade as a counterbalance to aid.
If the half billion in Australian aid were used to assist and encourage PNG products to be sold in Australia, it would go along way in helping to stop the aid dependency that has built up over the last 30 odd years.
PNG products could be assisted with a 'most favoured
nation' clause that would subsidise product price at point of sale in
This subsidy could be on a diminishing scale, with a guaranteed sunset clause in say 5-10 years after the PNG business has been established and consumer demand proven.
In an address to the PNG Parliament, former prime minister
Sir Julius Chan said to
At the same time, East Timor's President Jose Ramos-Horta has
remarked that "Australian aid to
The Australian government must make some tough decisions about our future relationship with PNG: whether it’s a partnership, as would be signified by an emphasis on trade, or patronage.
The choice is not only clear but urgently in need of a decision.
Australia under Julia Gillard is a sea change. The ALP just need three new good policies now to sell to the Australian public and they just might win the election for Julia Gillard:
Cut PNG aid levels to zero and instead increase trade by 100 percent, do more for Indigenous Australians than before, and lastly pull Australian troops out of Afghanistan by Christmas.
Keeping troops in Afghanistan will not make Australia any safer but a very unsecure country in future.
Posted by: Reginald Renagi | 06 July 2010 at 03:39 PM
Its is disappointing that the very substantial amount of workwear (Bisley etc) required for the LNG project will be made in China.
Does not PNG have a tailoring company that can produce high quality workwear for local consumption (and potential export).
Can AusAID help with this, perhaps with some seeding capital, training, and quality management to help the existing PNG owned tailoring companies.
This would be a practical approach to lifting PNG's capacity to clothe itself.
I thought import replacement was a priority.
Posted by: Peter Warwick | 30 June 2010 at 11:55 AM
A much better tool to development than the aid package that is in place now. In years gone by, I believe that Longreach Clothing based at Boroko PNG used the most favoured nation clause to supply many Queensland government departments with uniforms.
Posted by: Trevor Shelley Sr | 26 June 2010 at 01:17 PM