Reply to FRPG

Reply to FRPG after meeting on 22 July 2011

We are deeply disappointed by the response from FRPG. In a very terse one-page response, you have seemingly disregarded and, as a result, failed to address any of our many concerns.

In our discussions on 22 July 2011, FRPG verbally put forth four points to justify its actions and rates. The four points were:

1. The ‘economic reality’ of breakeven cost; electrical power cannot be supplied below K 0.80 without FRPG going into deficit spending

2. Many businesses made millions of Kinas through using free power. As such, they should not be complaining now when they are asked to pay

3. The current rate of K 0.80 will help FRPG determine the cost of providing power

4. FRPG needs to recoup the money that it is spending on power. In your letter, you stated that FRPG has to pay, on average, K 1 million annually for power usage in Kiunga. This amount was paid out of royalties collected by FRPG.

In spite of your wanton disregard for the apprehensions and mounting frustrations of your electorate, we still intend to exercise patience and restraint in our dealings with FRPG. It is our belief that the truth we wield will see the light. With clear minds and hearts, we respond to you as follows:

1. The ‘economic reality’ of FRPG’s breakeven cost must be weighed against the ‘economic reality’ faced by the people – your electorate: they simply cannot afford the exorbitant rate levied against them. The alternatives confronting them are all equally dire: live in darkness or starve; starve or their children remain uneducated; ignorant children or well-fed healthy ones… evidently, all the choices offered by ‘economic reality’ are equally grim.

2. The 2,000 or more people who marched peacefully on 18 July 2011 were not the businesses that were the beneficiaries of your generosity; they were not the ones who made the ‘millions of Kinas’, but seem to be amongst the first targeted for installation of pre-paid meters. That they are the ‘Rait targets for Rait Power’ is the sentiment echoing in the township of Kiunga now.

Sir, these are the ordinary salaried workers who are presently struggling to make ends meet. Parents who will, on average, see their meagre salaries dwindle by 20% as a direct result of Rait Power’s rates. The increased cost in living resulting from the follow-on effects, as cost is passed on to the consumer, has not been factored in yet. The effects will be worsened by the fact that essential services like health and education will not be spared.

3. The logic behind this assertion completely escapes us: why would the imposition of a particular rate aid FRPG in its cost analysis? Can the same not be done through the study of business models?

4. This insistence on the need to ‘recoup cost’ on FRPG’s part only engenders more questions:

   1. 1. Are not the royalty payments received by FRPG money that belongs to the people?

      2. If item (a) is true: does it matter if the recovery of this money is deferred, or defaulted?

      3. How much royalties are collected annually? And just what are they being used for? Health? Education? Infrastructure development?

      4. Why does FRPG need to recoup this money if it is not being spent for the good of the people? Would FRPG ‘lose’ anything now if the suffering of its people – their electorate – is alleviated?

The cost of living in Kiunga has skyrocketed and still continues to move upwards, but the mean salary of the average worker remains depressed. This has been the noticeable trend for the last few years; a downward spiral of living standards we have brought to the attention of you and your administration countless times over the years.

Perhaps if our warnings were heeded and more had been done in the areas of infrastructure development, health and/or education, the cost of living might not have escalated to present levels. We did not see public funds being channelled into these vital areas; investments that would have improved our capacity and standard of living in the process. This apparent lack of planning and/or care for public welfare have left us living in hopeless poverty. We are already victims of neglect, and now we are again being victimised in the name of ‘economic reality’ and ‘sustainability’. Words are not going to feed us when even our daily sustenance has become a struggle.

In light of the above, we are sorry to say that we are unable to back down from our previous position. Sir, please understand, we do so with heavy and fearful hearts. We do so as we do not have a choice. As FRPG seemingly refuses to hold itself accountable for its actions, we have no choice but to seek independent arbitration to resolve our grievances.

Thank you.