PRESS STATEMENT – 19TH May, 2013

RESOURCE OWNERS WANT BAN ON   FLY –IN FLY-OUT OPEREATION.

The Resource Owners Federation of Papua New Guinea praised the member for Lagaip –Porgera Hon. Nixon K Mangape for raising issue of FIFO arrangement adopted by Extractive Industries in PNG.

The Federation views it was a right move by the honourable member and urges other members of Parliament to support and place total ban on both existing and future extractive industries to discourage fly-in fly-out operations in this country as this practise undermines economic development in PNG. It has been the main cause of the lack of social and economic development in the project area and also in the country. The resource owners have been fighting for this practice with no political support for long time now.

This country is denied of increased economic development when employees spend their disposable income in their own countries and not in PNG.

Many Papua New Guineans are now working in Australia and Africa mines, but they are not allow commuting on fly in and flying out from PNG during their field break but issued work permits which require them to reside in the country of their employment. The reason for this is that the government of those countries want to withhold the money in those hosted countries economy to build their nation.

After more than fifteen years of fighting this evil regime, we now believe it is time to incorporate policy change as law within the Mining and Petroleum Act. We propose that all fly in fly out mining and petroleum operations must be banned or prohibited in PNG under the mining and petroleum act 2013 like what Australia and other countries have done to encourage developers to build social-economic infrastructure within the country and develop the mining and petroleum area or provinces as well as retaining disposable income of the expatriate employees in the country.

The federation also note that resource booming in this country is a pull factor for visitors or tourists and the government needs to understand and values mining and petroleum tourism which can deliver significant economic, social and environmental benefits. It is one of the most effective ways of redistributing wealth, by moving money into local economies from other parts of the country and overseas. It brings income into a community that would otherwise not be earned. The economic benefits resulting from tourism can take number of forms including:

Jobs

Employment may be associated directly, such as tour guide or managerial positions; or in supporting industries like food production or retail suppliers.Increased spending in the community generated from visitors or tourism businesses can directly and indirectly promote the viability of local businesses.

 Economic Diversification

Tourism operators can play a role in highlighting the broad prosperity that tourism can bring to a community and will contribute to a greater understanding and respect for the value of tourism.

Economic diversification is, for many communities, an insurance policy against hard times. By offering an additional means of income, tourism can support a community when a traditional industry is under financial pressure, particularly where that community relies heavily on a single industry.

 Infrastructure

Infrastructure including roads, parks, and other public spaces can be developed and improved both for visitors and local residents through increased tourism activity in a region, provincce and local communities.

Social Benefits

Community identity and pride can be generated through tourism. A positive sense of community identity can be reinforced and tourism can encourage local communities to maintain their traditions and identity.

Environmental Benefits

Providing financial or in-kind support for the conservation of the local environment and natural resources will enhance the reputation of any tourism business.

Tourism, particularly ecotourism, can place a greater focus on the conservation of natural resources through the recognition of their importance to visitor experiences and their economic value to the local community.

 

We call on the government to think seriously and implement new policy change or legislate against this controversial issue.

 

 

 

Jonathan Paraia.

……………………………

President.

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