Source: The National,Wednesday August 12th, 2015
Opposition leader Don Polye yesterday called on Prime Minister Peter O’Neill to tell the truth about the economy of the country, saying economic growth has contracted dramatically in less than a year
Polye, at a press conference, said O’Neill’s statement last week that PNG was economically safe was “very misleading and vague”.
“I do not believe that we should talk down the economy in any way because that destroys investor confidence and gives a wrong perception. 
“While it’s a duty that we uphold as leaders, we have another duty and that is to tell the truth, actual fact about what is happening so that the people are aware of how the management of the economy is going.”
O’Neill last week said the economy was stable and growing at 10 per cent and was forecast to be between 11 to 15 per cent by the end of 2015.
“In 2014 the economy was projected to grow at 21 per cent because of the LNG proceeds coming in. 
“However, because of the downturn in commodity prices, the GDP growth was reversed down to 15 per cent,” Polye said. 
“When the Treasurer gave the first quarter review, economic growth was reversed down to 11 per cent this year.  
“And Treasury has further reversed that to between 9 and 10 per cent.” 
Polye said the Government had failed to listen to warnings by economic institutions and individuals, including him, when he called on the Government to do a early supplementary budget.
ment’s doing included:
  • Building semi-standard infrastructure in Port Moresby at excessive contract prices that boosted foreign businesses at the suffering of the local construction industry;
  • deliberately pegging the kina against the US and Australian dollars that led to contracting of the export industry; 
  • failure to do micro-economic reforms, especially in the State-owned enterprises and financial sectors;
  • dismantling of the PNG Sustainable Development that has now led to the closure of the Ok Tedi Mine; and,
  • Loss of fiscal discipline by spending exorbitantly outside the budget. Polye said fiscal and cash flow problems had affected foreign reserves. He said O’Neill needed to come out clear on it’s plan on this