22 March 2022
ESP policy objectives of the Government have been achieved, PS Dentana reports
The Government has achieved its underlying policy objectives of the controversial Economic Stimulus Package (ESP).
This was despite public perception, mostly labelling the ESP as a failed project of the government because of the lack of stimulation of the economy.
The two main policy objectives of the ESP were:
1. To prevent the economy from deterioration following the outbreak of the Covid-19 in China in December 2019, and
2. Promote aggregate demand in the economy.
The Permanent Secretary of Ministry of Finance and Treasury, Mckinni Dentana told reporters on Tuesday that when they did the model in 2020, they estimated negative growth of 4.5 percent on the economy.
However, he said at the end of 2020 when they ran the model, it shows the deterioration of economy was not as severe as expected in their initial assessment.
“We come up to negative growth but at 3.5 percent compared to more than 4.5 percent,” Mr. Dentana said
“We have achieved the objective of the policy to prevent the economy from further deteriorating,” he added.
Furthermore, PS Dentana said to promote aggregate demand was to ensure domestic activity happened in the economy despite Covid 19.
He said this included that the supply of copra, cocoa and timber and other commodities had to continue to reach markets during the year and throughout 2021.
“There was some data we received at the end of 2020.
“For example, copra productions have increased to 37,000 metric tonnes higher than in 2019,” he said.
Mr.Dentana said in 2019 they recorded around 8,000 metric tonnes of copra.
He said in 2020, they had around 12,000 metric tones which the country exported.
“That was one indication that there was continuation of trading activity despite Covid,” he said.
Mr.Dentana said the Government had provided subsidies to transport and support farmers so they could harvest their products and bring them to the markets.
He said cocoa experienced a mixed result because Government only supported farmers from around July to September.
However, Mr.Dentana said the peak season for cocoa was around the first quarter of the year.
He said despite Covid, around 4,000 metric tonnes of cocoa was exported.
On timber, Mr.Dentana said the reaction of timber in the market happened in 2021 because most of the activities and support were offloaded to exporters.
“For example, in 2019, around 542,000 cubic meters of timbers had been exported.
“In 2020, around 500,000 metric tonnes, and in 2021 it increased to 763,000 metric tonnes,” he said.
Further to that, Mr.Dentana said around 13,000 tonnes of kava had been exported.
As such, he said the Government had achieved its second policy intention.
In terms of recovery, Mr.Dentana said Government has assisted State Owned Enterprises, private companies and made commitment to big infrastructure projects.
He said the Tauba and Kwai bridges in Malaita province are fully operational now.
He said it is unfortunate the plans for the Fiu bridge, it did not eventuate even though Government had committed $30 million to the World Bank.
Mr. Dentana said Government also supported Raoe Bridge in East Malaita and the ramp in Kirakira. He said upgrading of Sege and Taro airports will be coming up this year.
Further to that, PS Dentana said Government also supported Solomon Airlines, Solomon Water and the Development Bank of Solomon Islands.
Source. Island Sun newspaper.
A report on the ESP package soon to be released.
In separate news, PS Dentana has said a report on the Economic Stimulus Package (ESP) will be released soon.
Mr., Dentana revealed this in a Press Conference hosted by the Office of the Prime Minister and Cabinet.
Responding to questions raised by the Press on the ESP, PS Dentana said the Asian Development Bank (ADB) was tasked by the government to carry out a review on the government’s policy on ESP.
“There will be a report to be released in the mid-week of April and there are a number of reports that they will be producing”, Mr., Dentana said.
He said more than 50 youths were also engaged by the government to conduct interviews in the provinces in 2021.
He says they were not able to complete their assessments this year because of Covid-19 but have done follow ups with the beneficiaries of the ESP through phone interviews.
A public opinion research by USAID released in August 2021 claimed there was a lack of transparency in the ESP.
The report mentioned widespread lack of awareness about the ESP in particular and led to unrealistic expectations across provinces which, unmet, channelled people’s frustration toward the government and those groups or individuals suspected of unfairly benefiting from the programme.
In the absence of clear qualification criteria and verification mechanisms, research participants were concerned that the ESP has opened opportunities for preferential allocation and misuse of money and called on the government to assess allowability of expenditures.
Opposition Leader Mathew Wale earlier stated that the ESP would not be able to achieve its desired outcomes because it was spread too thin.
He said impact would have been felt if the ESP had been targeted to a specific industry or a sector, as opposed to trying to boost crops or economic activities in multiple sectors and industries.
The ESP report will be welcomed by the vast majority of Solomon Islanders who have had doubts about the ESP’s disbursement and impact on the economy.
Source. Solomon Times Online
More than 80 Solomon Islands Students Heading to China Today
More than 80 Solomon Islanders are leaving for China today under the PRC’s Education scholarship programme.
Since the country switched diplomatic ties from Taiwan to China in 2019, this will be the first big group of Solomon Islanders heading to China under education cooperation in the China-Solomon relationship.
The students will be studying in various universities in China, sponsored by the PRC Government. The Chinese Embassy says their trip to China was delayed and long overdue due to the Covid-19 pandemic.
The Chinese Embassy is working in close contact with the Ministry of Education in Solomon Islands to arrange the student’s travel to China.
Among the group of students will be a few dependents and relatives of government MPs including the Prime Minister. The Chinese Embassy says their universities have strict rules and high standards for the performance of international students.
The students are leaving Honiara on a special charter flight by Solomon Airlines. On its return, the Airline will also bring back citizens and workers for some of the government’s projects currently in progress.
Source – Solomon Times Online.
PNG loosens some of the rules around Covid
From today Papua New Guinea is easing many of the restrictions it has had in place to try to curtail the spread of Covid-19.
There have not been recent public revelations of the numbers of Covid cases and deaths, but at least 639 fatalities have been recorded.
From today [March 21] the need for booster shots to reach fully vaccinated status are dropped - two doses will suffice.
People arriving by boat, including cruise ships, will no longer require tests within 72 hours of boarding, but they have to be fully vaccinated and will be tested on arrival.
People arriving by air, internationally or domestically, must be fully vaccinated unless they are PNG citizens or permanent residents.
All people flying in also need a negative test 72 hours before departure.
Pre-departure assessments need to be conducted using PCR tests, while the testing on arrival will be undertaken with Rapid Antigen Tests, or RATs.
Source – Radio New Zealand.
FAO brings new techniques to PNG cocoa farmers
1705 farmers in five isolated communities in Papua New Guinea have been given support to revitalise their cocoa farms.
The Food and Agriculture Administration, with funding from the European Union, is helping the farmers in East Sepik and Sandaun Provinces.
They have been learning how to rehabilitate and revive old, infested cocoa blocks, and restore production.
The FAO said those taking part include a number of women and youths.
The training involved learning how to propagate Cocoa Pod Borer tolerant seedlings, so they can apply these skills in their blocks.
They were also shown different types of pruning so trees are protected against disease and pest infestation and to increase the cocoa yield.
The FAO's national cocoa production officer, Michael Lames said the invasion of the Cocoa Pod Borer in the 1980s caused the decline but this training aims to restore production and incomes.
With these newly acquired skills, the participants can replace old cocoa trees and improve their post-harvest production practices.
Source. Radio New Zealand.
Yours sincerely
Frank Short
