26 Feb 2014

Lawlessness undermines PNG business growth

2:40 pm on 26 February 2014

Papua New Guinea business is being held back by lawlessness.

This a finding in a survey by the Institute of National Affairs done in conjunction with the Asian Development Bank.

The survey of 130 businesses found that crime and providing security had a significant impact on company balance sheets.

The Institute's Paul Barker says not only do businesses lose money through crime, but they have to pay for security guards, fences and so on.

He says this is stopping some sectors flourishing.

"If one could reduce that cost and reduce the level of law and order problems then obviously a range of other business opportunities would come up. PNG, for example, should have a major tourism industry like Fiji and Vanuatu but it is obviously a very sensitive industry to crime."

Paul Barker says the transport infrastructure, both in terms of new roading, ports, airports and maintenance is another concern for business.

He says the parlous state of the electricity is another impediment listed by the businesses.