Polye raises Concerns on PNG's Economy

Papua New Guinea  Opposition, Don Polye still maintains that pressing economic issues face Papua New Guinea in 2015.

He said the government has boasted about the eight per cent economic growth, steady inflation rate and a high level of foreign reserves, but all these are not enough for the economy.

2015 will be a trying time for the country. He anticipates huge cuts in various sectors of health, education and to fund contractual works taking place like the 2015 Pacific Games facilities.

“There is not cash in the public accounts to fund these projects, pay for teachers' leave fares. These are challenges facing the country and the government must be truthful about the state of the economy.”

He wants the government to revise the budget and stop the wastage of funds.

While commending the government for monitoring the economic downfall caused by the drop in oil prices, he cautioned that a move from monitoring to action is crucial at this time to help the economy avoid these challenges.

Prime Minister Peter O'Neill responded to Polye through a media release saying, "the recent re-hashing of claims by the Leader of the Opposition in relation to the budget were simply wrong."

"The Opposition Leader has nothing new to say and keeps repeating the same baseless claims time-after-time.  His attempts to talk down the economy over the fall in oil prices is an example of irresponsible behaviour that can affect jobs and business if people were to believe him," said O'Neill.

Earlier this month, Prime Minister O'Neill expressed confidence in the economy, saying Papua New Guinea would be able to bring national debt back to below 35 per cent of GDP despite the drop in oil prices.

He said that the government was still considering a sovereign bond to debut next year on international debt markets and talking to credit agencies to better explain the country’s debt strategy and political risks.

Following the statements made by Leader of the Opposition, Prime Minister O'Neill said, "at time when the image and reputation of Papua New Guinea is improving around the world, and national pride continues to grow, there are people who will seek to rubbish the national economy for their own political gain."

“All commodity prices fluctuate depending on supply and demand.  Currently there is an increase in supply of oil in the market as OPEC countries are not cutting back on production.  As such there is an increase in supply against demand and consequently prices have dropped." 

The Prime Minister’s Office has refuted claims by Polye regarding the PM's vote. 

"Claims by Mr Polye that the Prime Minister’s Office has a vote of more than one billion Kina is an absolute lie. No such fund exists and he should stop misleading the people of Papua New Guinea with untruths.

"This is a disgrace for someone who is now in the position of Leader of the Opposition."

PNG Today / EMTV