21 Apr 2011

Commentator puts PNG resource spat down to poor effort by governments

5:47 pm on 21 April 2011

Papua New Guinea's Institute of National Affairs says the current debate over resource ownership can be sheeted home to the government's failure to properly apply the rules.

Amid the country's resources boom there're calls for changes to the state's ownership of all minerals and other elements at six feet or more underground.

The Institute's chief executive, Paul Barker, says PNG has a hybrid of Western concepts on ownership of subterranean resources, with the government expected to involve the landowners in the decisions and benefits.

But he says that doesn't always happen and he says it's partly due to poor homework by the government.

"So they're not really adequately and properly identifying all the landowners in the first place, so sometimes the benefits are going to wrong landowners, from both the proceeds but also the compensation when the land is being dug up and access is being gained, but also because there are a series of other deficiencies in that the state, when they get hold of the money, has not been very effective in utilising the proceeds."