PNG National Fisheries Authority increases support to national purse

Papua New Guinea's National Fisheries Authority (NFA) contributions to the national economy from 2016 has increased dramatically with its combined aggregate investments approximating PGK915 million.

NFA boss John Kasu in his presentation to the 6th Leadership Summit detailed that NFA’s combined aggregated exports reached US$570 million (K1,821,189,129.59bn), its combined contribution at PGK113 million with employment generation approximating 10,000 workers employed directly in the fish processing plants in Wewak, Madang and Lae, with 80 per cent workforce being women.

Kasu’s presentation detailed that as it stands now, the Fisheries Sector Potential.

– Combined aggregated exports would be approximately US$1b (K3, 195,068,648.40bn)

– Combined contribution to GDP would be approximately PGK 780 million (US$244 million)

– Employment Generation – would be 30,000 workers in the fish processing plants in Wewak, Madang and Lae and most would be jobs for women

– State Agreement Review (leakages of frozen whole round tuna, low compliance)

Public Monies Management Regulation (PMMR) 2017 Act Implications

– 90 per cent of revenue generated remitted to the consolidated revenue fund

– By 2020, financial powers of NFA (FMA 1998) dissolved

Implications of PMMR 2017 Act

– Significant impact on NFA’s existence
– Expected revenue- K350m (US$109 million)
– NFA operations- K155m (US$48.5 million)
– Programs & projects: K93 million (US$29 million)
– Total Expenses -K250m (US$78.2 million)
– Rebate costs – K282m (US$88.2 million) (at full production)
– Total expense with RBS K532 million (US$166 million)
– Dividend to State K410m (US$128 million)
– 2018 expectation -K400m (US$125 million)

Challenges and Impediments
– Impact of the PMMR 2017 Act
– Sustainability of rebate scheme
– VDS management
– High cost of business
– Lack of appropriate infrastructure
– State of the economy
– Imports of fisheries products
– The Fisheries development projects & support
– Wagang wharf development
– Rabaul Tuna terminal and other major outlines by the authority.

SOURCE: POST COURIER/PNG Today