29 Nov 2002

PNG Government reveals plans to stimulate agriculture and tourism

4:41 pm on 29 November 2002

Papua New Guinea's new budget has been slammed by organisations such as the Institute of National Affairs, which says an increase in company tax could mean that very soon there will be very little for the Government to tax.

Company tax is up to 30 percent from 25 percent, but the mining sector has been given significant incentives to encourage further exploration.

The Government also wants to develop other sectors of the economy and hopes that improvements to infrastructure will help it achieve this.

It is planning a major rebuild of the critical Highlands Highway, as art of a 50 million US dollar package to improve the nation's roads.

Here's our correspondent Peter Niesi.

"the key in agriculture has been access to markets - roads to brings the goods out so they can be exported....that is one key area, the other is redevelop wharf facilities or repair them to ensure that the cash crops can be picked by ships...and tourism is another aspect of it, so there is a lot of work going on at the airports at tourist destinations such as Alotau, Wewak, Madang and a few other places, and all of that is aimed at drawing in more tourists"

Peter Niesi.