**** Prime Minister Hon. Peter O’Neill: Partial Privatization best way for management of SOEs **** Prime Minister Hon. Peter O’Neill says there is a growing need of private sector participation in the management of state own enterprises. Prime Minister Hon. Peter O’Neill said this on a live interview with Radio New Zealand today where he also said that the government has announced the privatisation of Air Niugini with 49% of the national airline to go on sale as the series of privatisation. “Government does not have enough extra resources and funds available to invest in those companies so that they can improve their efficiencies and expand their services, so we need to get into private sector,” Prime Minister Hon. Peter O’Neill said. Prime Minister Hon. Peter O’Neill stated in the interview that the aviation industry hasn’t been doing too well but Air Niugini has managed to keep its costs under control and been able to maintain a high level of customer service that is internationally acceptable. “I encourage our own citizens to take the first chance to purchase the initial issue of shares that are going to be done, and if they are not fully subscribed then we will turn to some of our own companies within the country,” Prime Minister Hon. Peter O’Neill said as he urges citizens in the country He said we will maintain close to 50 percent shareholding by the state so that they also feel comfortable that the state will continue to have a significant presence in the company. Prime Minister Hon. Peter O’Neill also stated that the next in line is our electricity company which is PNG Power where we are now talking with all our stakeholders, including the management, the employees, the board, and of course some of the industry participants, that we will also stage a partial sale of shares to raise capital in order for us to again expand our services in providing electricity to our citizens and businesses in a growing economy. “To invest in energy generation facilities and infrastructure is quite an expensive exercise and government does not have additional or extra funds that it can invest into maintaining these services, therefore it is important that we encourage the private sector to participate,” Prime Minister Hon Peter O’Neill explained. He said again its not only about raising capital but it is also about trying to bring private sector efficiency and management skills into managing the state-owned assets. Prime Minister Hon. Peter O’Neill pointed out that the state-owned enterprises have been mismanaged for quite a while where we have not fully been able to realize its potential and its ability to deliver world class services.
Posted on: Thu, 25 Sep 2014 23:02:48 +0000
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