By Jim Baynes in Port Moresby
November 27, 2002
PAPUA New Guinea hopes more than nine new logging projects will help the stricken country pay for new roads and rice schemes to be proposed in tomorrow's 2003 budget.
Prime Minister Sir Michael Somare today told parliament the Budget would contain further cuts to the public service.
PNG's already low standard of living has plunged in recent months, as more than ten years of corruption and economic mismanagement catches up with Australia's former colony.
In a controversial move, Sir Michael said the government was keen to see at least nine new logging projects go ahead, contributing more than 80 million kina ($30 million) a year to the Budget.
Sir Michael also said the Government would attempt a national rice growing plan.
Rice schemes in PNG have been pushed relentlessly by successive governments, including the original Australian administrators in the 1950s and 1960s.
But they have never led to a major success, meaning citizens are forced to buy expensive rice from countries such as Australia.
Sir Michael said his "national agriculture mobilisation plan" would identify crops which can be produced locally to help combat the country's battered local currency.
"Rice production in identified areas will be the main focus of the government in the medium term, commencing in 2003," Sir Michael told parliament.
AAP
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