Manufacturers Urge Government To Reduce Service Cost

Most manufacturers in PNG are struggling with high cost of production, resulting intheir products selling at higher prices than similar goods imported abroad.

TheIndependent Consumer and Competition Commission (ICCC) says this is because general manufacturing costs oPNG manufacturers are high, where  costs for all production inputs are relatively high compared to ther countries that produce competing products.

Bet some manufacturers say ifthe National Government reduces some ofthe costs imposed onthem, consumers can be able to enjoy cheaper products.

For most low and middle income earners and ordinary Papua New Guineas,the purchase of store goods, depends onthe pricing.

According to ICCC, products manufactured in PNG cost more due tothe cost of production inputs such as land, infrastructure, fuel, materials, electricity, water and port services to name a few.

ICCC Commissioner Dr. Belly Manoka saidthe cost of production and inthe manufacturing sector is costly due to that fact that “PNG has a very high cost structure economy.”

“IPNG manufactured products are more expensive, compared to imported products, it is due tothe fact thatthe general operational costs oPNG manufacturers are high,” said Dr Manoka.

Some ofthe production input like water and electricity are owned bythe government and suppllied through state owned enterprises.

Some manufacturers say ifthe government reducesthe bills charged onthem,the cost ofthe products sold can be reasonably reduced.

According to SP Brewery’s General Manager Stan Joyce,the government’should look at reducingthe cost of water and electricity suppllied to manufacturers.

The similar statement was made by Akzo NobePNG’s General Manager Mikael Ruben.

“Producing in PNG is very expensive. Ifthe government looks at reducingthe cost in that area, it will have a positive impact on our costing,” said Mr Ruben.

It is now up tothe government to consider such suggestions in order to alleviatethe struggles bPNG manufacturers and consumers alike.

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