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Administrator opens Morobe show

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• Number 1507 18 October, 1970.



In.his address at the opening of the Morobe Agricultural.

Show at Lae on October 18, the Administrator, Mr. L.W..Johnson


H Shogs.'are occasions on which a District displays its progress and shows off its wares - its crops, its manufactures,

its arts and crafts and its people. The.Morobe .District Show has good reason to be proud of what it is showing.

I am stuffed with statistics all of which tell the same

story - phenomenal development of the Morobe District. You

people of Morobe do not need to be told what is happening but

I am sure you will pardon me if I use a few figures to show

foreigners from other Districts just what has been done.


"Electricity consumption in the town of Lae, a.good

measure of industrial development, is increasing at a huge

rate of 28/ a year. In 1966/67 the secondary industry in.Lae

was worth about $2 million. By last year it had doubled, by 1972/73 it will double again. Population growth of Lae is

running at 12% increase a year. Cargo in and out of that port

I've heard so much about increased 40•% over the previous year.

"Government spending tells the same story. This year-we

plan to spend directly over t2 million in the Morobe District

in buildings, roads, bridges, etc. The Harbours Board plans

to spend 5;928,,000 this year and a total of 1'7 million in all.

on port developments in the futur:. The Electricity Commission

is likely to be commencing the.huge Ramu Hydro Scheme, the Housing Commission is building, the Institute of Technology

has large development plans. We very confidently expect a

continuation of large, private investment. Ac far as the

Morobe District is concerned, all systems are go. .

°!Many visitors pass through my office every week:.'

Australians, people from other countries, businessmen, diplomats,




politicians, and almost invariably they ask the same question -"What about the political stability of Papua and New Guinea?"

I tell many of them, "Go to Lao and sense the confidence of the

people there, that is sufficient answer to.your question".

"Certainly, investment conditions are attractive enough

in this -country:' Successive Houses of Assembly have passed

resolutions welcoming private investment in the country and'

guaranteeing• its security;' Personal income tax is low, company

tax is low, there are provisions in the Pioneer Industry

Ordinance to further reduce the tax impact on new industries.

There•is a subsidy to assist developers to bring breeding

cattle•intd the country. We are developing our transport and

communications infra-structure as quickly as our means permit.

There is a rapidly increasing internal market for what is

produced. All of these things add up to a very healthy climate

for development:

"But development means more than bringing money, materials

and skills together and taking away profits. That is not

nearly good'enough. It means making a positive and conscious

contribution to the social and economic development of the

country and of its people. It means that industry,:whether

primary, secondary or tertiary, must-involve the people of the

country and not only as workmen but as entrepreneurs in their

own right, as planners,, as investors,, managers and owners.

In primary industry indigenous farmers have developed rapidly

.', from subsistence production to-cash cropping but, with few

.exceptions, they are still small producers. We must develop

bigger units and we must provide the assistance to ensure the

success of these units. When I say "we" I mean all of us;, this

is not only a Government responsibility,

"Planners, managers and the professional support for

industrial development will soon come from our training

institutions: this Institute, the University, Vudal, Bulolo

and others. The Government recently introduced into the

House of Assembly a Bill to establish an Investment Corporation

to take up equity in selected enterprises so that shares could

be held in trust for those not yet able to participate in

ownership. Participation of Papuans and New Guineans in

commerce and secondary industry, other than as employees, is

still negligible. - It is clear that' we must do more and do it

more quickly.

oe /3



"What more can be done and how to do it? I think that the first requirement is that indigenous entrepreneurs must

succeed. It would be idle to expect that all can succeed but

it should be our aim to ensure that the diligent, honest man

who embarks upon a viable enterprise should not fail. I think

that t1^ indigenous entrepreneur must not only begin on even

terms with his expatriate counterpart but he must be given a

start and, if'necersary,, he must be sheltered. The existing

business community, and now it is mostly expatriates, must

organise to assist and if necessary to ensure the survival

of ind;igonoio_businessmen.


"Government provides what supervision and assistance it

can, but it cannot hope to be as effective as a properly

organised group of businessmen from the town. They know the

town, they know its trade patterns, they can keep a constant

eye on management and on book-keeping. Expatriate farmers

here in general do much more to help rural producers than

townsmen do to help their fellow businessmen.

"We need help too in identifying business_ opportunities

and further in identifying people who can exploit those

opportunities. Who better to identify them than the people

who live in the town itself and know it and all its inhabitant


"Let me, beyquite explicit.. I am not advocating selfless

altruism for expatriate businessmen but I am advocating measures

whereby mutual confidence and respect can be developed between

Papuans and New Guineans and expatriates. This can only be

based on equality. There is no long term security for anyone

in the indefinite continuation of the vast gap between

expatriate and Papuan and New Guinean and that gap must be

bridged. It is idle to talk of a multi-racial society unless

it is a society whose members can mingle on equal terms. That

society must ensure that its members have the means to mingle

on equal terms. I am not advocating an equal salaries policy.

The rationale for paying Australian level salaries to

Australians to ensure that we can retain their services here

has been debated often enough and there are similar situations

in all developing countries. But I am advocating the generation

of opportunities and the nurturing of these opportunities so



4 _ ..

that Papuans and New gaineans become ma jority beneficiaries of the, wealth produced .in their cwn country,

"We have a most buoyant economy, and bright prospects.

Both as.individuals and as a society we can look forward to

greatly.. expaned'ol,portun__ties o The people of . Morobe are particularly fortunate in this regards,. You have fine towns as a nucleus for industry and commerce, you have abundant natural

resources and plenty of, as yet, undeveloped land but the most

important resource of any country is its people,.;. Morobe has

250,000 of them; let us ensure that their capacities are

developed and used to the fulls

'Ladies and Gentlemen, in the course of nine years in

Papua and New Guinea I have never got to open a Show before,

It is particularly pleasing that the first time should be in

such a fine town in a fine District and that this occasion

should also be the last Show that my old friend, Mr. Scale,

will attend in his official capacity. Morobe has been well

served in its District Commissioners. What we seep here today

is due in no small measure to Mr. Niall and to Mr. Scale:

the Administration, Papua and New Guinea as a rhole, the Morobe

District and the town of Lae owes them a great deal".'