Is PNG LNG changing the living standards and quality of life of the average Papua New Guineans?

Commentary By Lucas Kiap 

We have made to forget our history as a corrupt country and believe in the future that the revenues from the PNG LNG project was going to achieve PNG's Vision 2050 and transform PNG from a third world improvise nation into a smart, wise, fair, healthy and happy nation by 2050.

After a year of producing and exporting LNG, nothing has changed or improved.

Whether or not we are on track to achieve Vision 2050 is not clear at this stage.

Instead the PNG LNG project is a nightmare. Only the talk of the LNG has caused big inflation, increasing and sending the cost of living in Port Moresby high, right into the sky, forcing the working class to find shelter in the settlements.

It seems that this country can't be changed by growth in the GDP of the economy. To economists, it may mean something but to an ordinary PNGean it just means nothing or some numbers looks good on the paper to economists.

We have Lihir, Panguna, Porgera, and OK Tedi. Revenues from these world class mining projects have been used to improve the living standards of our people. We have Kutubu, Moran and Gobe Oil projects. These also have not need used to improve the living standards of our people. We now have PNG LNG project. It seems history has been repeating itself with the same people in the driver's seat running the country.

There seems to be a big hole at the Valupundi house (Treasury, Finance & National Planning), responsible for swallowing billions of revenues from these world class and big revenue projects before reaching the people.

I am not an economist but for the PNG LNG project I would like to make a suggestion that, instead of the government tying up all revenues into the same debt basket, the revenues should have been streamlined and use part of it as cash incentive to offset government taxes on individuals (Personal Income Tax and GST) and businesses (Tarrifs) in order to drive, stimulate and promote the growth of other growth sectors and economic potentials to:

* Relieve us from paying high tax and die poor;

*Grow the GDP;

* Diversify the economy;

*create more jobs;

*improve the living standards;

*promote investment; and

*reduce the high cost of living, etc.

Unfortunately, this Peter O'Neill government has tied the PNG LNG revenues in loans, justified in the name of development, taking advantage of a illiterate rural population desperate for development.

I hope the National Sovereign Wealth Fund is already in operational and part of the LNG revenues is parked there to create more future jobs, reduce poverty and improve the quality of life and living standards of the future Papua New Guineans.