THE Farmers and Settlers Association has deplored the actions of the Ministry and Department of Agriculture and Livestock and the commodity boards in suppressing the sector with unjustified fees and charges.
Wilson Thompson, President of the Farmer’s and Settlers Association said that whilst the agriculture sector has been critical about the government over the unilateral fee increase, the commodity boards may have done same.
“First we note that the commodity boards are still collecting research levies when the research is non- existent or there are no research institutes in operation such as the Coffee Research Institute, Coconut or Cocoa Research Institute.
“Secondly, we see the commodity boards collecting extension levy from the farmers and growers from every kilogram of coffee, cocoa or coconut across the country when they don’t have any extension programs or services,” Mr Thompson said.
He said Coconut and Cocoa Industry Ltd has been liquidated and “why are these levies still collected? In the case of coffee, growers have not seen any extension services and coffee production is on the decline that is from one million bags of export bags to now 600,000 bags so why continue to punish the declining production and the farmers”.
“Further, we are concerned that the Cocoa Board has also increased tonnage fee and charges from K40 to K100 this year. The Cocoa Board may have conducted consultation with stakeholders but we feel that the sudden increase from K40 to K100 is a 150 percent increase and does not assist the cocoa industry and Agriculture sector as it will not increase production and exports.
“The Cocoa Board and DAL may have own justifications for the increase in tonnage fees based on the Cocoa Act. The Cocoa Act may not provide for consultation but public policy requires a consultative process with all the stakeholders.
“Also the new 150 percent increase may be based on the proposed Cocoa Act when the law has not been passed by the Parliament and may be illegal. We need clarification from DAL and the Cocoa Board as to how this could happen.
“The Association also wanted the Minister and Secretary for Finance to clarify as per the Public Finance Management Act (2016 Amended), the authority to amend fees and charges rests with the Minister for Finance after consultations, as to the approval granted for the imposition of fees and charges and whether the sector has been consulted.”
Mr Thompson said that its members ranging from individual farmers, blocks, plantations, buyers, processors and exporters are concerned about the impact of these decisions and lack of consultation between government agencies and department such as DAL, Department of Commerce and Industry and Small Medium Enterprise Corporation has to advice on impacts on PNG SME and Department of Treasury if these increase are going to affect fiscal policies including contributing to improvement in the agriculture Sector or impact on inflation.
They are calling on the Minister for Agriculture and Livestock John Simon to look at these concerns about the continued imposition of research and extension levy, huge increase in tonnage fees and charges and the lack of consultation.