Lae is the ‘engine room’ of the PNG economy, says President of the Lae Chamber of Commerce, John Byrne.
He said this is because Lae is a shipping hub, it hosts major manufacturing companies and the Okuk Highway connects Lae to the Highlands region.
Byrne attributed positive developments in recent years in infrastructure, which supports business growth, to good political leadership.
“They used to call Lae the ‘Pothole City’ but it is not anymore. We have some roads that aren’t being fixed piece by piece by great leadership and money being spent where it should be spent, including in the community as well as the businesses,” Byrne said.
However, he says unemployment remains a major challenge faced by people in Lae and nationwide.
Byrne outlines that new investments and growth in existing businesses can create more employment.
He welcomed the progress of the reopening of the Porgera gold mine and the development of the Wafi-Golpu gold mine as good signs for the economy.
Byrne identified the following as current pressures of businesses in Lae:
- Shortage of Foreign Exchange for importers;
- Inefficient electricity supply
- Tariff Code – IRC lodging massive fines to businesses
Byrne says efforts by government authorities to ensure businesses are compliant to tax laws must be exercised fairly.
“The pressures of business in the unequal playing field, we have businesses that are very honest but are being reviewed very strenuously by ICCC, ICA and all other and rightly so. However, all the other grey markets out there that are not being targeted in the same way, the ones who are not paying the taxes, not paying wages, ones who are bringing people without the right visas.
“That makes it hard for our businesses.”
The Chamber is working with the Government to resolve issues faced by businesses in Lae.