PNG Govt announces K10 million Assistance to SME Trucking Businesses
Papua New Guinea Minister for Finance and Caretaker Minister for National Planning Rainbo Paita today announced a K10.0million one off assistance support to struggling SME trucking business in the country.
The assistance is aimed at supporting registered and reputable trucking companies that provide transport and logistics services throughout the country who are adversely affected by the impact of the Covid-19 crisis and recent closure of Pogera Mine. The assistance comes under the ambit of support to Small to Medium Enterprises (SMEs) sector and is a further iteration of the Marape Government’s commitment to the SME sector. Trucking companies have been and are continuously committed in providing trucking and logistic services to support industries, so this support to prop up their businesses in such difficult times is not only timely but is long overdue and well deserved.
“The Government has provided a lot of assistance to popular SME clusters such as in women, tourism, fisheries and agriculture. However, this important segment within the SME space has not been given enough support. Our Government intends to change that perception by supporting our service providers, in the trucking industry, in recognition of their invaluable contribution to the economy. Owners and operators of major trucking businesses were hard-hit during the COVID-19 lock-down period and also during the closure of the Porgera Mine,” Minister Paita said.
“In implementing the third Medium Term Development Plan (MTDP3) and in its quest towards economic empowerment, the Government acknowledges that all SME types across the economy are important and must be given equal recognition. Trucking owners and operators are important partners in job and wealth creation and this Government recognizes that,” Minister Paita further added.
The Government has now taken this landmark decision to support this important segment within the SME sector through the National Budget under the auspices of the Special Intervention Program. Minister Paita said that due to the loss of business, truckers are struggling to maintain their assets over time and also have been having difficulties in securing assets and operational support loans from commercial banks for the purposes of re-fleeting, maintenance and repairs. Mr. Paita said this assistance will provide the necessary support required to ease that burden so that they continue to play their critical role as partners in nation building.
The K10.0million will be managed through the PNG Trucking Association on behalf of its members and will administer disbursements and reporting through an agreed approach in consultation with the Department of National Planning and Monitoring.
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