Budget Reply by Bulolo MP Sam Basil on Tuesday, Nov 23, 2010

Mr Speaker, it is my please to present to you my reply for the 2011 Budget as the Member for Bulolo and also the Opposition.

 Let me from the outset put the record straight that the Opposition is quite skeptical of this budget ever achieving much of what it sets out to achieve.

This government has since its inception had a very poor record of never properly and effectively implementing its money plans.

Mr Speaker, year in year out, Papua New Guineans have been crying out for delivery of basic services in health, education, roads, bridges, wharves, airstrips and more but, their wishes have always been that.

There isn’t much that this government can show for the large sums of money it has purported to have spent over the years since it took office.

All our public infrastructure and services have fallen into disarray.

Our hospitals, health centers and clinics continue to struggle for the basic of drugs while people, especially the mothers, young and old, continue to die of curable illnesses whilst this Government watches.

 Building of a K500 million health facility in Bautama City can also be one of the examples of a confused government whereby the Prime Minister looses touch with his Cabinet ministers and the grassroots people.

Most of Papua New Guinea’s schools, universities and colleges have fallen into disrepair despite the allocation of large sums of money over the years, including the RESI funds which largely benefited the government members of parliament.

A very good example can be drawn from the Aiyura National High School where a relative of a very senior legislator in this parliament won the contract and misused most of the funds and the matter is now in court.

Most of the RESI funds have been expanded from trust accounts and have been misused or corruptly applied.

Our roads are all in a sorry state including our biggest investment, the Highlands Highway, which feeds all the highlands provinces which are home to some major resource projects including the PNG LNG project - we say thank you for the national highway funding.

Can the Government assure the people that the highway funding will not end up with the wantoks of ministers in the form of relatives and political cronies?

Just recently we learnt from the media that the Works Minister has allowed his wantok a contract so what is the guarantee there that the people will get real benefits from those highway funds? 

Mr Speaker, our coastal and maritime provinces continue to be neglected in terms of proper wharves, jetties and the like. 

Those that are usable are almost collapsing preventing our rural people from bringing their produce safely to the markets.

Mr Speaker, given the harsh topography and ruggedness of our beautiful country, a large part of our rural communities depend on air services to access Government services and bring their produce to the market. 

We have, on many occasions, heard the cries of our rural people for the government to allocate funds and follow through with implementation and rehabilitation and continued maintenance of our rural airstrips.

 A lot of these pleas have fallen on deaf ears for reasons only known to this Government.

The Transport Minister is already planning to spend K1.4 billion to upgrade the Jackson International Airport while this budget reflects very little to even upgrade the rural population’s very-important infrastructures such as the jetties and the airstrips.

Mr Speaker, there are so many other deficiencies in the performance of this Government to effectively manage and implement a lot of its money plans which I can continue to talk about but I do believe you all are familiar with.

We therefore strongly believe that this Government has failed miserably to implement its past budgets and we believe the 2011 money plan will be no different.

 It is our strongest conviction that this government lacks the capacity, the willpower and know-how to successfully implement the 2011 money plan.

Mr Speaker, our biggest fear is that a lot of the money that is intended for projects in the 2011 budget will be squandered as was always the case in the past.

It is therefore important that all sectors within the Government’s public service machinery be overhauled and this Government quickly put in place proper management strategies for this budget to ensure that the people of Papua New Guinea really benefit from this money plan.

 

Assumptions

Mr Speaker, this budget is prepared using many tested and untested assumptions that stand to be put through rigorous volatilities in the market.

The global financial crisis and its impacts may have subsided to an extent, but the global market is still quite volatile with rumblings still in Europe (Ireland and Greece) and other parts of the world.

 The weakening of the US dollar in recent times has had a positive impact on resource prices especially gold and oil but would this be sustainable?

 The Opposition will monitor this budget assumption with interest to measure its performance against set revenue targets.

Note that all may be rosy now but history has it that things may quickly turn for the worse so the onus is on the Government to monitor its assumptions on the parameters used in the budget to ensure that it achieves and implement it budget effectively.

 

Revenue

A big part of the budgets direct revenue is funded through incomes from resource projects either directly or indirectly apart from other tax revenues.

It will also be funded through the increases in project grants owing largely to the depreciation of the Kina against the Australian dollar and the increased funding from AUSAID.

Mr Speaker, it is also important for the government to note that this may be good but, it must also seek to encourage growth in the other revenue sectors to cushion the effects of volatility and uncertainties that surround the global commodity prices and diversify its future revenue source.

 

Expenditure

 

Mr. Speaker, the opposition notes several deficiencies in the 2011 budget and among them are some glaring issues that we will now address.

 

• Insufficient funds have been set aside for disaster and emergencies (disaster risk management – K 5.7m and K1.9m disaster management) despite numerous advice and warnings from experts citing a pending El Nino weather pattern that may have massive implications on the lives of a large part of the population which depends on the land for survival. It is imperative that the government plans and budgets for, not only the El Nino weather pattern but, for natural disasters which PNG is not immune to;
•  Mr  Speaker, the 2011 Budget has allocated minimal or no funding directly for upgrading of rural airstrips which serve a large part of the population of PNG that lack any other means of transport.   This is total neglect on the part of the Government to provide a vital service to the rural people of PNG.
• Mr. Speaker, the Westminster system of Government and democracies all over the world consist of and depend on a vibrant opposition to strike a balance and ensure that healthy debate on matters affecting the nation are tested and agreed to through healthy debates, government policies are properly implemented and the three arms of government are operating efficiently. The Opposition is appalled at the government’s deliberate attempt to weaken the rules that govern any democracies by its dismal budgetary allocation to the opposition. This government has again used this budget to suppress the work of the Opposition to ensure that the Government of the days is answerable to the people of Papua New Guinea through its management of this country.

 

Trust accounts

Mr Speaker, the Opposition believes that apart from the Sovereign Fund, all monies included in this massive budget that the government has put forward for 2011 should never be placed in trust account.

This government has had a very poor record of managing, auditing and reporting of funds held in trust accounts.

 Many a time Papua New Guineans have demanded for the Government to make public its records on the use of public funds held in trust account but to date this Government has failed miserably to make these records public.

It is common knowledge that a lot of these funds have been abused without a trace thus putting a lot of our project in jeopardy.

It is therefore imperative that this budget be managed outside of trust accounts and by the normal government accounting system as specified under the Finance Management Act so that funds are put to good use for the projects they are intended for are subjected to proper procurement and scrutiny processes to bring accountable and tangible benefits to the people of Papua New Guinea.

 

Inflation factor

 

Mr Speaker, this budget is framed so much around the LNG project but not everyone in the Papua New Guinea will benefit directly from the LNG windfalls.

It will only be the landowners around or within the project areas, the pipeline and the processing facility.

All Papua New Guineans will however feel the negative impact of this project on their lives through high cost of goods and services brought about by the LNG project. 

With high revenue comes an increase in money supply thus putting an upward pressure on inflation.

The people of Papua New Guinea are already expressing their concerns about the increased prices of basic store goods.

The sad story is that it will get worse.

For majority of Papua New Guineans, life will get harder.

For businesses, the cost of doing business will escalate which will greatly affect profitability unless these costs are passed onto the consumer.

The Papua New Guinean agriculture sector stands to suffer the most as not only will its costs increase but, increased money supply will appreciate the Kina thereby rendering our agricultural exports expensive and non-competitive on the global market.

It is therefore very important that the Government prepares to put in place a well-planned monetary and fiscal policy to manage the negative impacts on the economy brought about by inflation.

It must also plan to assist the agriculture sector, be in through increased subsidies or other assistance to ensure it survives as it is the livelihood of most Papua New Guineans.

 

Dutch disease

Like all major oil and gas projects all over the world, increased revenue from the LNG project and other resource sectors will increase inflows of revenue, thus causing currency appreciation making Papua new Guinea’s other exports, especially in the agriculture sector,  become more expensive,  thus reducing its competitiveness on the global economy. 

Mr Speaker, a large part of Papua New Guinea’s population depends entirely on the agriculture sector for their survival.

This situation will therefore have a devastating effect on the livelihoods of a greater part of the population of this country.

It is therefore critical that the government immediately put in place policies within the monetary and fiscal management frameworks, including subsidies to ensure that it mitigates the effects of this resource curse on the livelihoods of the rural people of this country and the population at large.

Mr Speaker, as you are aware, dependence on one particular sector of investment for any country is a dangerous trend as it exposes the country to adverse market conditions which come with a very high level of risk.

We believe in diversity of investment in all available sectors to cushion the risks that something bad may happen to the one investment or sector thereby destroying our economy.

 

Capacity

Mr Speaker, it is encouraging to see that the government has awoken to the fact that Papua New Guinea does not have the capacity to supply labor to the economy through the education system that Papua New Guinea inherited after independence.

It has taken the PNG LNG project for reality to sink in and remind the Government that all is not well.

In its current form, the Papua New Guinea labor market is competently unable to supply all the labor requirements not only for the PNG LNG project but, also to fill in the vacuum created by movement of people into the resource sector and new jobs created as a result of the resource boom.

Mr Speaker, the Opposition strongly believes that the initiatives current undertaken by the Government to address this labor shortage is a little too late as a lot of jobs have been lost to foreign labor and the PNG LNG construction phase has truly taken off leaving Papua New Guinea way behind.

It is sad to note that the people of Papua New Guinea have again lost out on job opportunities because the Government has failed to realise in time and plan to educate Papua New Guineans in time to capture these once-in-a-lifetime job opportunities.

 Do we always have to play catch up while our people suffer?

The Government doesn’t care Mr Speaker; maybe we all should buy houses in Cairns, catch an early flight into Port Moresby for Parliament Session and afternoon flight back into Cairns.

Yumi giamanim ol pipol istap.

Mr., Speaker, there will be a huge demand that will now be place squarely on the shoulders of this government to, not only manage this massive budget but, the large revenue windfall that will reach our shores as a result of the PNG LNG project. 

For this country to truly benefit from the developments and growth that will come with this massive revenue, Papua New Guinea will need to be able to greatly lift its implementation capacity to truly realise economic growth.

The biggest worry that most Papua New Guineans share is the capability of this government and its machinery to adequately manage this massive windfall revenue.

This Government must quickly address these capacity issues to ensure that Papua New Guinea does not fall into the resource curse that has happen in many resource rich countries.

This country must avoid at all cost from following these trends where it become a poor nation after the life of such project simple because it has failed to improve its management capacity.

Finally Mr Speaker, it has been alleged that over K5 billion of public funds has been stashed away into trust accounts which have yet to be audited.

This government owes it to its people that a thorough audit must be done quickly and made public so that the people can see how their money has been managed.

The under funding of the Ombudsman Commission, Public Prosecutor, Attorney General, Auditor General and the Police has reflected badly on the overall status of this country at the international level.

PNG has been listed as one of the corrupted countries in the world, unsafe to take a holiday and Member of Parliament are almost immune to prosecution.

Mr Speaker, the K20m allocated for the upgrading of this parliament house must be managed by the Finance Department as I have a copy of the 2010’s first quarter audit and believe me, all financial procedures has been breached.

Parliament’s operating account has been operating on a K2 million negative; therefore, nobody in this house must be trusted anymore to independently operate such funds anymore.

Mr Speaker, the Finance Minister must be mindful the performance of this 2011 budget will reflect his first budget ever as the minister responsible, therefore,  his future reputation depends on the strict management of this budged and urge him to so and commend him of his efforts so far.

 

Digicel Stars enters semi-finals

By SAO HOIRE

The Digicel Stars singing competition is taking the country by storm and getting tougher as it winds down to the grand finale next month.

Digicel Stars elimination round two contestants awaiting the final judges word during the show’s live recording at POMCC last week

 With two elimination rounds already gone, everyone is in suspense as to who will win the title and walk away with the prize money of K10, 000 plus a recording contract.

The winner from elimination round two, Greg Aaron from rainy Lae, gave a hyped-up, mind-blowing performance as he belted out a country number from Keith Urban, Love Somebody during the live performance at Port Moresby Country Club (POMCC) last Wednesday.

The song got the audience roaring with excitement and even a guitarist up on stage in an impromptu performance which won the judges’ hearts to announce him the winner on the night.

Elimination round one winner, Joseph Normou, also from Lae was the judges’ choice with two viewers’ choice winners announced: Christopher Cobb who sang a number from Outfield and boy group Leo from Lae.

Viewers’ choice winners were submitted through SMS votes so keep voting for your favourite Digicel star to 1699.

For each round, only two successful contestants will be selected by the viewers to move forward.

“It has been a pleasure to watch and listen to all the wonderful singing and acting talent that is out there,” said Digicel PNG CEO John Mangos.

“Digicel Stars is now entering its final and most exciting stages and we are looking forward to even more talent being shown as the contestants will be pushed to show their very best performances.

“We give our best wishes to all the contestants as you are all winners to have made it this far in the competition.

The Digicel Stars semi-finals will be aired on EMTV on Sunday at 6.30pm with six contestants to compete for a place in the finals.

A total of 16 contestants made it through to the elimination rounds.

Dec 5 will see a showcase performance by the contestants with the grand finale to be on Dec 12.

So keep voting for your favourite star to the short code ‘1699’.

For example, vote for Hanley by texting ‘Hanley’ to 1699.

Hanley Logoso belting out his version of Guy Sebastian’s ‘Attention’ song that got the crowd roaring during the elimination

By voting, you can also win great prizes.

There will be K1, 000 free credits to be given away each week as well as 50 lucky SMS voters will win K50 free credits each.

Miss South Pacific Pageant 2010 at Lamana

This weekend will be a definite crowd pleaser at the party capital of PNG - the Gold Club -  beginning on Friday evening with the Miss South Pacific Pageant Talent Show and then on Saturday, the much-anticipated grand finale of the 2010 XOX PNG Idol.

The Miss South Pacific Talent Show on Friday will begin at 6pm and will showcase the 11 beauties in sarong wear.

The show is from 6pm-9pm so the Gold Club Arena and balconies will be closed off during this event unless you have tickets which are available from Lamana's reception for K60.

You can call Jacquie or Julie.

Patrons are advised however that the inside bar will operate as usual with free entry for members and K25 for non-members.

Once the Talent event is over, the Arena will be open for the usual Friday night outdoor party.

On Saturday evening, from the 40 auditioned singers 11 weeks ago, the top 10 remain and the concert of truth will reveal the best live entertainers and winners of the K10, 000.

This already looks like a brilliant show with finalists being Li Walter, Chaddy Ipah, Natalia Maino, Henry Gewang, Richard Wema, Samantha Clark, Nouna Regione, Emma Kamura, Gideon Singur and Matthew Jordan.

Who will reign supreme in the battle of vocals and showmanship?

Members free entry, non-members K25. Come on down to Lamana for a great night’s show!

 

Chinese PNG? I don't think so

From PAUL OATES

"PNG can become the China of the Pacific", the Minister for Planning and Monitoring and District Development, Paul Tiensten said recently at a dinner in Kokopo.
Yet exactly what was the Minister referring to?
"Past PNG governments had only looked at their survival," the Minister is quoted as saying.
He then made the point that PNG as a country must align itself with both the short and long term government strategies; "and that
this may well result in PNG becoming the China of the Pacific."
With a booming economy and aspirations of becoming the leading world power, China is an easy example to laud when so called developing countries wish to align and emulate their own development strategies.
But exactly what would it mean if PNG did adopt Chinese methods and strategies?
If one were to look beneath the rhetoric and hyperbole, might not this concept create some problems for Mr Tiensten's own government?
What methodologies for example, does the Chinese government use to curb
corruption?
Is Chinese culture readily able to be assimilated by the PNG people?
Do PNG people want to emulate the Chinese way of doing things?
Those with some experience of PNG culture and customs might well point out that a similar notion used to be bandied around some decades ago about PNG adopting western culture and ethics.
How successful was that concept in creating a society and government that eradicated corruption and enabled PNG to use its resources to build up a modern nation and allow its people to prosper?
It seems that the idea of 'further fields always being greener' hasn't changed in four decades.
Why not start looking at the mirror and working out what is going wrong at home rather than chasing the illusion of a rainbow
elsewhere?
______________________________ ___________________

Post Courier on line News
   Wednesday 24th November, 2010

'PNG is China of Pacific'

By MAUREEN SANTANA

PAPUA New Guinea can become the China of the Pacific, a minister said during the closing dinner of the MTDP and PNGDSP rollout in Kokopo recently.
Minister for Planning and Monitoring and District Development Paul Tiensten said: "The important thing as a country we must align with the government's plans."
The Minister said the two government initiatives have looked at all the perimeters and have planned accordingly and this may result in PNG becoming the China of the Pacific.
Mr Tiensten however said PNG must plan appropriately and it must be together with government's short and long term strategies.
He said it was important to look at the missing links and one area was the implementation framework.
He said the government commitment was there but it was up to each province to build the capacity within their districts and to implement the funds coming from the national government.
The minister said past governments had only looked at their political survival.
Mr Tiensten said however for the current Somare-Polye government the current plans were aligned to meet vision 2050 and the government was putting funds to encourage economic and development growth.
Mr Tiensten said there were talks among developers and other multi-national organisations that PNG was becoming the China of the Pacific.

Simon says: ‘Life begins at 40’

By MALUM NALU

Lae boy and longtime Papua New Guinea resident, Simon Merton, turned 40 last Saturday with big celebrations at his house at Korobosea in Port Moresby.

Simon Merton ready to blow out his 40 candles surrounded by wife Chairmaine, family and friends.-Pictures by MALUM NALU

 Family, friends and Hebou Construction workmates of Merton turned up at his birthday bash which started on Saturday afternoon and continued until Sunday.

 Guests included prominent commentator Reg Renagi, PNG Rugby Football League interim chairman Gary Juffa. Lae legend Terry Charles, pilot Sao Maliaki, former radio personality Uncle ET and many more.

 There was plenty of food, drink and a live band to keep everyone happy.

 Merton, the man-of-the-moment and an accomplished singer, took centre stage several times to wow party-goers.

 “I spent the last 40 years enjoying my life in PNG and am going to spend the next 40 doing my best to ensure our children get to enjoy their life in PNG,” he declares.

 “I love PNG and will do anything for my country.”

Yes … I am Santa!

 MISTER Ho Ho Ho dropped by yesterday to visit sick children at the Port Moresby General Hospital, The National reports.

Santa brought smiles as well gifts for all when he paid his annual visit from the North Pole, courtesy of the good staff of Coffey International, who helped in cash and kind.

After touring the hospital’s ward, Santa stopped by a bleary-eyed Sugui Eneri’s bed to hand over this special gift and all his special love for a speedy recovery.

“It brightens up their day,” duty officer Sister Maea Kauio said.

Santa and his Coffey International team rode off soon after, perhaps with Christmas tidings for other needy children in the city.

Coffey Global Quest started in 2000 in Adelaide, Australia, and is an initiative of the staff from Coffey International to help organisations in need of help.

15 foreign investment analysts visit LNG sites

A 15-man team of foreign investment analysts is  impressed with the oil operations at Oil Search Ltd and the activities at the PNG gas project sites, The National reports.

The team was in the country recently to have a first-hand look at the on-going gas and oil projects.

Later, they met with Public Enterprises Minister Arthur Somare.

OSL managing director Peter Botten and his team of executives hosted the team composed of fund managers, bankers and investors that included JB Morgan Securities, Norges Bank, JP Capital Partners, Macquarie Equities, Credit Suisse, JP Morgan Asset Management, BNP Baribas Securities, Macquarie Securities and Nomura Securities.

They were told in detailed briefings that in 2014, gas from the oil producing fields, which is currently being re-injected into the fields, will be recovered and fed into the PNG LNG pipeline as the first gas off-take for overseas markets.

This excited the analysts and raised a lot of questions regarding the development and expansion of the central processing facility in Kutubu to cater for the LNG project and a host of other financing issues.

They also visited the construction site of the Hides gas conditioning plant and the first of a number of Hides well-pads that will feed plant.

Former managing director of Mineral Resources Development Corp Francis Kaupa – a structural engineer, who heads the civil works, ground clearance and infrastructure – gave the visitors a thorough briefing on the early works.

They also flew over Komo and saw the huge airport construction underway. When completed, this airport will take the world’s largest aircraft, the Antonov.

Botten told the visitors that PNG, especially the Southern Highlands and the Gulf, was  attractive oil and gas provinces which raised the interests of a lot of potential investors

Most of the analysts were very pleased with what they saw and heard as they were driven through the heart of Hela region by road which allayed any fears they might have had about project security.

 

 

Budget passed

Shadow treasurer claims little achieved in last eight years

 

By ISAAC NICHOLAS

 

TREASURY and Finance Minister Peter O’Neill has declared 2011 as the “year of implementation” as parliament last night unanimously passed the record K9.3 billion money plan for next year, The National reports.

The budget, which had the support of almost all MPs from both sides of the house, was debated for six hours before being passed on voices.

The integrity law required parliament to vote on the budget along party lines, with parties submitting to the speaker a resolution of the decision of their caucus which way they would vote.

But, the government and the speaker decided that, since much of the integrity law was struck down by the Supreme Court, this voting requirement no longer applied.

O’Neill, who generally received warm reviews from parliament and the private sector on his first budget as treasurer, said implementation was a top priority if the government wanted to achieve targets and development goals and improve indicators.

“If we work within the budget framework, the targets set by the MTDP and the MDG will be achieved; the social and health indicators will improve.

“Public servants must roll up their sleeves and work with the private sector, with politicians leading from the front.”

O’Neill stressed that the monthly reviews of the budget he promised would be a crucial part of the government’s strategy in implementing the budget.

During debate, however, the budget took a hammering from shadow treasurer Bart Philemon.

Opposition leader Sir Mekere Morauta was overlooked by Speaker Jeffery Nape when he tried to present his comments of the budget, with Nape arguing that Sir Mekere had passed up his opportunity to speak by allowing Philemon to deliver the budget reply.

Sir Mekere left the chamber without speaking, and later released the text of his speech to the media.

Philemon said in his speech the government had achieved little despite eight years of stability and economic prosperity.

He said the government had spent K55 billion in eight years to achieve very little with corruption rising, the public service bloated and unproductive and eating K2 billion of the recurrent budget, and failure to broaden revenue base beyond mining and oil and gas sector.

Senior opposition MP and member for Abau Sir Puka Temu said the overall 2011 money plan was good news for the country.

He commended the treasurer and government for packaging a very good budget but the challenge was on implementation.

O’Neill said he was disappointed with the opposition’s reply, which lacked new initiative and substance.

“To tell you the truth, I am a bit disappointed given the experience in the opposition.

“We need constructive debate on the budget.

“I am happy that many people accepted the budget and the challenge is for us to implement on a timely basis,” O’Neill said outside parliament.

 

 

Bill on reserved seats goes back to cabinet

THE National Executive Council will meet today to make amendments to the bill to have 22 reserve seats for women in parliament, The National reports.

Community Development Minister Dame Carol Kidu said there were discrepancies in the Equality and Participation Bill which did not go down well with some members of parliament, who had refused to support the proposed legislation.

Dame Carol said the reserved seats for women would come from the 22 provincial electorates under the new arrangements before cabinet for endorsement before tabling in parliament.

She said previously, the proposal to have one provincial electorate with two seats did not go down well with the provincial governors.

Dame Carol said the alternate would be two provincial electorates, one for the governor and the reserved seat for a woman in parliament.

“It is the same boundary, and I know it sounds crazy, but one provincial electorate is for a woman and she will become an ordinary MP with no district support improvement programme (DSIP) grants.

“If the government) does not give women the K2 million discretionary funds, do not worry about it,” she said.

“Some people are saying it will cost so much, but, the cost is for salary and two staff; only a few millions but we can afford that.

“We are not going into parliament for money but to provide the gender balance and to speak on issues affecting the nation as women.”

More than 100 women leaders, attired in PNG-coloured meri blouses and laplaps fronted up at the parliament front gates to drum up support at lunchtime yesterday.

Dame Carol met the women and asked them to be patient and wait for another day or two as the bill would have to be amended and brought to cabinet.

“Be patient, we have waited a long time for this and we can wait for another one or two days.”

Dame Carol also told the women that some people had wanted to adjourn parliament after the budget but the prime minister had declined.

She said proper processes and procedures must be followed as some clever lawyer may challenge the bill in court.

“We do not want to pass the bill in a hurry and, later, being declared null and void by the courts. We have to do it properly.”

She said the eyes of Pacific Island countries were zeroing in on PNG as what was happening here could also be done in other Pacific Island countries to get reserve seats for women.

 

 

 

 

One more wasted budget, says Philemon

By JEFFREY ELAPA

 

THE opposition yesterday criticised the 2011 Budget as another example of the government doing the same thing over and over again with little result, The National reports.

Shadow Treasurer Bart Philemon said the government had wasted eight years of political stability and has nothing to show for more than K55 billion it had spent during this period.

Holding up The National newspaper and pointing to the front page which had a picture of an overcrowded ward at the Port Moresby General Hospital with mothers sleeping on the floor to illustrate his point, Philemon said social indicators had deteriorated under this government.

He said with the budget showing a lot of microeconomic holes, it was built on “shifting sand” and not “solid rock” and would collapse.

Philemon told the government to realign their unproductive expenditure to a productive expenditure while looking back of the past experiences and comparing of how effective it would work when the K9.3 billion was implemented next year.

 “They are not working on reliable, accurate data and their monitoring and evaluation capacity is questionable.

“Despite the government achieving positive growth rates of up to 8% in consecutive years majority of our children do not attend primary school while major hospitals are always overcrowded and understaffed while our rural clinics and aidposts are rundown and with little or no drugs,” he said.

He said the people especially women and children in urban centres lived in constant fear of being robbed, mugged, raped or even killed while the agriculture sector had been neglected, heavily politicised and corrupted, and badly managed.

He said the highly-educated and competent citizens still had no formal jobs with unemployment estimated at more than 60% while basic services especially in the rural areas had deteriorated forcing people to move to town and cities in increasing numbers.

Philemon said agriculture should be the foundation for education and health but not much concern was given in addressing agriculture which was the back bone of the nation’s development.

 “There is nothing to celebrate or be proud about in the dire state of PNG including economic growth insufficient to impact households, poor performance on social indicators, absence of quality data or indicator framework for PNG, development plans have existed, but not well resourced, not linked to other plans and poorly implemented and the lack of fiscal discipline resulting to overspending and unproductive spending,” he said.

 

 

2011 BUDGET REPLY By The Leader of the Opposition Rt Hon Mekere Morauta KCMG MP (Tuesday, 23rd November 2010)

Find below Budget Speech of Opposition Leader Rt Hon Sir Mekere Morauta that was not allowed by Speaker Jeffrey Nape to be delivered .Nape failed to specify under what Parliamentary Standing Order he did not allow Sir Mekere to make his budget speech.

 

Mr Speaker, the 2011 Budget may set a record in terms of revenue raised and money to be spent, but it may also set a record of money wasted.

The public sector lacks capacity, capacity to convert the billions of kina appropriated every year into public goods and services for our people and for the nation’s future. 

We all know that the public sector is beset with problems: problems of inefficiency, of abuse, theft, wastage and lack of accountability – lack of accountability of resources that belong to the public.

What does this record budget do to address these problems, the very problems that negate the Government’s ability to deliver decent affordable services to people?

Not one thing Mr Speaker; not one thing.

Throwing billions of kina at Departments and Statutory Authorities will not solve the host of problems the public sector increasingly faces.

 These problems are eating away the heart of state institutions, and the Government is doing nothing to solve them.

The 2011 Budget fails to address the capacity problem. 

It fails to address the overarching problem of waste and corruption. 

Control of corruption has deteriorated sharply over the last eight years of Somare National Alliance governments. 

According to one international measure of corruption tracked by Transparency International, PNG is now in the bottom 10% of countries in the world.

Mr Speaker we may have billions of kina to spend, but given our very poor development indicators, especially in health and education, given the huge gaps we need to fill to meet the basic needs and rights of people, and given the real cost of delivering decent services, there is no room for waste or leakage.

Misuse of funds means less money for services. 

As one budget commentator noted:  “If only 10 toea in each Kina went missing over the next five years, that would still be a massive K3.6 billion – enough to rehabilitate and maintain the priority national roads.  And every toea is enough to education 30,000 children per year.”

That is the cost of corruption and waste Mr Speaker. 

A cost met by every man, woman and child. 

It is the people who are the victims of corruption and who suffer its effects in lack of decent health services, lack of decent schools or well-trained teachers, and roads full of pot-holes. 

Corruption is a parasite:  it is truly feasting on the blood and flesh of its host, the people of Papua New Guinea.

What safeguards are being put in place to reduce corruption and to make sure money does not go missing?

 Not one, Mr Speaker; not one.

With our experience of successive so-called “record budgets” over the last few years, Mr Speaker, we should all know by now that money alone will not provide the answers. 

In the last eight years this National Alliance-led government has appropriated well over K50 billion kina. 

What have those budgets produced? 

Almost nothing that we can be proud of, or satisfied with:  a doubling of maternal mortality, an increase in infant mortality and closure of half the country’s health facilities; a sharp reduction in the quality of education,  as detailed in the recent report on universities commissioned by Prime Ministers Somare and Rudd; deteriorating roads – national, inter and intra–provincial roads. 

The level of deterioration is reaching the stage where many of these roads now require not just repair and resealing, but rebuilding.

In the last eight years we have had one government, led by the National Alliance.

 We can no longer blame political instability or frequent changes of Government for the failure in performance. 

During the same period we have also experienced and benefited from the record prices of mineral resources.  This “record” budget mirrors that fact and is built on it.

Mr Speaker, record appropriations totaling over 50 billion kina in eight years under one government. 

What do the nation and people have to show for such a large sum of money?  Not much. 

And until and unless corruption is addressed; until and unless the capacity, management and accountability issues of the public sector are addressed; until and unless the waste and leakage of public monies are stopped, the “record” expenditure of the government will continue to have little positive benefit for the nation and for people.

Record appropriations, one Government in eight years, poor services, the majority of people living in poverty. 

Why? 

What is it we are lacking? 

The answer to that question, Mr Speaker is good government, led by a good leader.

Mr Speaker, before I offer a few comments on particular aspects of the Budget, I wish to make a few general comments concerning the 2010 and 2011 Budgets.

First, there is very little analysis of the 2010 budget outcome or outturn, that is, how actual spending or performance in 2010 compared to what was planned. 

Without this analysis, it is difficult to judge how the Government might perform in 2011. 

It seems, Mr Speaker, we are travelling blindfolded.

Secondly, there is very little medium-term analysis. 

A lot is said about the spending plans for 2011, but very little about the forward context of these plans. 

We know that service delivery is a multi-year undertaking. 

Investments take time to be delivered, whether they are capital works programmes, text books or essential drugs; recruiting new staff is an ongoing commitment that also often requires new training. 

For example, the budget provides for 1,333 new positions in hospitals.

 No-one would contest that those positions are not needed. 

The question is:  where is the trained staff to fill them? 

To be effective the budget must guarantee a commitment of resources year-after-year, over say a five year period. 

A one year commitment, year to year, is not likely to lead to the outcomes planned to be achieved.

Thirdly, the budget is scarce in details.  

The budget tables show headline budget numbers for planned 2011 spending, but there is scarce information on how this funding will be managed effectively, how it will reach service delivery units, and how it will be translated into goods and services. 

Take the increased budget for drugs as an example. 

Yes, the Government does need to spend more on drugs and essential medical supplies. 

But those that are currently procured are not reaching hospitals or health facilities. 

Theft is common. 

There seems to be a merry-go-round of the very same drugs being purchased not once, but two, three times or more from the same suppliers, after “going missing” from medical stores or dispensaries. 

This results not only in the cost of drugs per unit becoming extortionately high, but also renders many of the drugs to be out of date by the time they ever reach the intended destination. 

What will the Government do Mr Speaker to ensure that the money allocated for drugs is spent efficiently and honestly, and that the people who need that medicine actually receive it?

The only conclusion that any informed or aware observer might reach is that it is not possible to form an accurate assessment of the likelihood that the record spending under this budget will translate into services and into better outcomes for people.

 But if we go on past performance of the Somare Government, we have good reason to be doubtful.

I will now turn to the revenue side of the Budget.

Total Domestic Revenue is projected to yield 7.7 billion kina in 2011, compared to 6.9 billion and 5.7 billion kina in 2010 and 2009 respectively.  Fine, no problems.

However, when the Total Revenue is broken down into Tax and Non-tax revenue, a disturbing trend emerges.

 In 2009, Non-tax revenue totalled 766 million kina (actual). 

The revised estimate for 2010 is 410 million kina, 356 million kina less than the previous year. 

A similar result is expected for 2011, with 411 million kina budgetted.

Mr Speaker, these figures represent a 46% reduction for both 2010 and 2011 over actual revenue received in 2009.

 Total domestic revenue in 2011 is expected to be 35% higher than in 2009, in line with growth in the economy, so why at the same time is there a reduction in non-tax revenue? 

It makes no logical sense.

When one examines the components of non-tax revenue in 2011, one sees two glaring facts:  a significant reduction in revenue collected by government departments and agencies, and no contribution to the budget from commercial statutory authorities.

Why?  Can the Treasurer explain this?

Are we all so besotted with the prospect of LNG revenue that we no longer both to collect other legitimate charges for goods and services?

Take as an example land lease rental revenue to be collected by the Department of Lands and Physical Planning. 

In 2009, K38.3 million was collected in land rent. 

In 2010, K22.1 million was collected, a reduction of K16.2 million or 42%.  In 2011, only K24.8 million is budgeted. 

Why is it that we are not collecting at least the same as the amount collected in 2009?

 Is PNG’s land mass shrinking? 

Or is it a reflection of the incapacity of the Department to collect?

Treasurer, please explain.

It is not just the Department of Lands that is asked to collect less in 2010 and 2011 than it did in 2009. 

Another example is the Department of Foreign Affairs and revenue from passport and migration service fees.  

In 2009, K37.1 million was collected. 

In 2010, only K11 million. 

In 2011, a meagre K2.5 million is budgetted. 

Why the massive reduction? 

Are there less people coming to work in PNG?  I thought that with Ramu Nickel and LNG many more foreigners were coming to our shores to work.  Are they paying no visa fees?

 Or is this revenue just being spent, perhaps by overseas missions on visiting politicians, and never recorded or accounted for?

Mr Speaker, the other area of potential revenue which is of great concern is dividend income, dividends payable by government-owned commercial statutory bodies and from State shares in businesses like banks and oil companies.

In 2009, no dividends were paid.

 In 2010, K55 million was budgeted, but only K38.5 million was received.  K36.5 million of this was paid by Bank South Pacific, with K2 million coming from Petromin.

Where are other monies received by IPBC?

Why are they not being paid to consolidated revenue? 

The Minister constantly reminds us that all the commercial statutory authorities, Telikom, Air Niugini, PNG Power, PNG Ports, etc, are making heaps of profit. 

Where is it?  ]

Apart from not tabling the accounts of these entities for Parliament and the people to see the true picture, Minister Somare is returning none of the profit to the people.

This year, 2010, Bank South Pacific paid 42.8 million kina to IPBC in July and 11.55 million kina in November, a total of 54.4 million kina. 

Why was only 36.5 million of this paid to Treasury? 

What happened to the other 17.9 million kina?

What is happening to the revenue from the state’s shares in Oil Search?

 In 2009 Oil Search paid AUD15.4 million dividend to IPBC, but not one toea of this money (approximately K40 million) found its way to Treasury.  In 2010 Oil Search paid AUD8.5 million, around K22 million to IPBC.  Where is this money? 

What has it been spent on?

 Why is none of it being paid to the legal custodian of monies of the people of Papua New Guinea?

Mr Speaker, the amounts of money that have been paid to IPBC in recent years are very large, with zero reporting, zero public scrutiny, and zero accountability.

 But these amounts pale in comparison with the gigantic sums of money IPBC will receive in the future.

How many of us are aware of the fact that IPBC, under the stewardship of Minister Somare, will receive all the dividends payable by PNG LNG from 2015.

  In the first five years that the project is expected to return dividend, IPBC will receive K1.3 billion kina.

 Between 2015 and 2049, a period of 34 years, IPBC will receive from PNG LNG dividend income totaling K12.5 billion at an average rate of K366 million per year.

Why IPBC?  Revenue to do what?

Apart from the money being available to satisfy the whims of IPBC’s political leaders, perhaps Mr Speaker there is a hint of things to come in the 2011 Budget. 

On top of the dividend income directly received by IPBC, the Government is allocating large amounts of money to its bureaucratic brother, also headed by Arthur Somare.

The Budget papers note that K30 million of the additional money allocated to the Police will be for (quote) “LNG support, to be paid through the Department of Public Enterprises”.

Since when did democratic governments channel funding for police forces through companies and through totally unrelated government departments?

Mr Speaker, why is IPBC allowed to control such large dividend monies?  Should not the monies be paid directly to the Treasury?

 Should not IPBC be allocated an amount for its operational expenditure through the Budget, just like every other Government institution?

Mr Speaker, my conclusion is that we, Papua New Guinea have one Government but two Prime Ministers: one elected, the other appointed by the elected.

Not only do we have two Prime Ministers, we also now have two Treasurers, two collectors of revenue and two overseers of expenditure: one treasury headed by Hon Peter O’Neill and the other by Arthur Somare.

Why is this being tolerated? 

It is not just totally unacceptable; it is frightening.

I repeat Mr Speaker:  in 2011, IPBC will pay no dividend at all to the State.  Why? 

Why is IPBC allowed to retain all it will receive from Bank South Pacific, from Oil Search, PNG Ports, Air Niugini and Telikom?

I ask again, what is IPBC going to do with all the dividend income that it will retain?

Mr Speaker, answers to these questions are just as important to the public as the intoxicated boasting by the Government of its record budget. 

The proof of the pudding is in the eating, not in the ingredients.

 

Namah welcomes Ombudsman Commission brief on prime minister's case

Leader of PNG Party Belden Namah has welcomed the Ombudsman Commission (OC) explanation on the status of leadership referral case involving Prime Minister Sir Michael Somare.

Namah said it was in PNG’s national interest that the OC went publicly and explained that the onus was on the public prosecutor to act on Sir Michael’s referral.

Last Friday (Nov 19 2010), Chief Ombudsman Chronox Manek told a media conference in Port Moresby that Sir Michael was referred to office of the public prosecutor after his court challenge failed to stop the referral.

Manek said he was not aware of any court order preventing the public prosecutor from appointing a tribunal.

Namah said following the OC explanation it was incumbent on the public prosecutor to move swiftly to perform his constitutionally mandated duty speedily.

“This matter involves the chief executive of this nation and therefore demands for the public prosecutor to act in a timely manner in the public interest,” he said.

Namah said he was not trying to interfere with the work of constitutional offices, but merely asked for high profile cases involving Sir Michael and other politicians to be dealt with speedily in public interest.

 “It is only fair that the constitutional offices do their jobs in timely manner so that leaders referred do not continue in office making important decision for the nation while there is a cloud of uncertainty hanging over them,” he said.

 Namah said the public prosecutor owed it to the over six million PNG citizens to act speedily.

“It is unfair and unjust for ordinary citizens to be prosecuted very quickly for crimes they commit, while there are long delays in dealing with lawmakers and senior public servants,” he said.

“I see no logic in parliament continuing to make laws when the lawmakers are not dealt with in timely manner for offences they are alleged to have committed.

“Parliament should stop making laws and the government releases all prisoners nationwide if we are going to continue this way.

“The general perception among our citizens is that there are two sets of law, one for the big men and another for ordinary citizens.

“This perception must be corrected by relevant state agencies moving fast to clear outstanding cases involving public office holders.”

The OC alleges that Sir Michael failed to lodge annual returns for the periods 1994/5, 1995/96 and 1996/7, his lodgement returns for the periods 1998/99, 1999/2000, 2000/01, 2001/02, 20003/04 and incomplete statements for periods 1992/93, 1993/94,1997/98, 1999/2000, 2000.01, 20001/02 and 20002/03.

The OC referred Sir Michael to the Public Prosecutor for it to ask the Chief Justice to appoint a Leadership Tribunal to deal with the allegations, but Sir Michael went to court seeking orders to stop the OC from investigating him.

On June 24 2008, National Court Judge, Justice Derek Hartshorn rejected an application by Sir Michael for a temporary injunction to stop the OC from investigating him.

When rejecting Sir Michael’s temporary injunction, Judge Hartshorn ruled that it was not in the interest of the justice of the general public that lawful authorities should be prevented from performing their legal and constitutional duties.

Sir Michael had gone to court asking the court to grant him certain declarations and a permanent injunction preventing the OC from continuing its investigations.

However, Judge Hartshorn stated that Sir Michael did not have a strong case to stop the OC from continuing its investigations.

Section 4 of the Organic Law on the Duties and Responsibilities of the Leadership requires every person who is subject to the Leadership Code to furnish the OC every year details of assets, income and other required information.

 

Mothers plea for space

Problems at the Port Moresby General Hospital women’s ward seem to go on and on, The National reports.
Mothers have no beds and have to sleep on the bare floors due to overcrowding, there are no proper facilities for in-patients to use and midwives are hard to find, with about two a day. 
Workers attributed all these to lack of funds. 
Ward nurses and doctors described the challenge as “overwhelming; not enough beds and unfinished construction work due to lack of funds”. 
Statistics indicate an average 40-to-50 delivery a day and, with space an acute problem, mothers are forced to sleep along the corridors and even in the reception area of ward 10.

10 mums train in coffee quality control

WOMEN should also be seen as equal partners in business and not just as mothers and housewives, The National reports.

Ten mothers recently graduated with certificates in coffee quality control in a training workshop conducted by Coffee Industry Corp (CIC) in Okopa district, Eastern Highlands.

The training attracted 86 participants from the Tarabo coffee growers association of which 10 are mothers.

Eastern Highlands province smallholder coffee growers association chairman James Korarome said women should receive equal distribution of coffee income just as their male folks.

He added that most often, it was  the case where women did  all the hard work in processing coffee while the men dominate the marketing side of it, resulting in unfair distribution of income.

The coffee quality training comes under the CIC participatory rural participatory programme (PRAP) in bringing awareness and training to coffee farmers nationwide.

Korarome also issued a challenge to the men to respect women farmers to ensure quality production of coffee beans.

Meanwhile, general manager for CIC’s research and  grower service division, Dr Mark Kenny urged the graduates to return to their coffee gardens and apply the skills acquired and become advocates of quality coffee in their area.

 

 

MPs face bill

Women move into capital to push for reserved seats

 

PRESSURE is mounting on members of parliament to vote today to pass legislations to increase the number of women representatives in the house, The National reports.

The campaign to pass this legislation had gained momentum with women leaders from different parts of the country flying to Port Moresby this week to drum up support from their MPs.

And, yesterday, entrants to the Miss South Pacific beauty pageant added their voice to this cause by signing a statement of support. Ten of them signed, saying: “Women of the Pacific are watching this parliament for the vote.”

The bill, if passed, will have 22 seats reserved for women. It sought to amend section 101 of the constitution. To succeed, it needed an absolute majority of 72 MPs voting in favour of the bill.

Women leaders hoped parliament would sit right through this week and next week to entertain the bill and other important legislations pending in the house.

But, with the opposition’s budget reply at the top of the agenda today, and talks of a vote of no-confidence, there were speculations the government might adjourn parliament after the budget is voted on.

On the other hand, if the government is secured in its numbers during the vote on the 2011 budget, it would bring in the women’s bill and others to be deliberated and voted on.

Leader of government business and Minister for National Planning and Implementation Paul Tiensten did not provide a clear strategy yesterday, saying the government caucus would meet today to discuss how to handle the budget and the bills.

The government risked invoking the ire of women leaders and supporters of this legislation if it defers the bill.

“A lot of effort and resources have gone into this, and the least we expect is for the bill to at least make it to the floor to be voted on,” a woman representative said yesterday.

Because it was an important constitutional legislation, MPs will vote through resolutions along party lines.

 

 

Budget reply is priority, says Tiensten

By ISAAC NICHOLAS

 

THE opposition’s reply on next year’s budget will take precedence over all government business in parliament today, including the proposed bill on the reserved seats for women, The National reports.

Leader of government business Paul Tiensten said the opposition would be expected to reply to the budget at 2pm and debate would follow until the passage of the 2011 money plan.

This was expected to take three weeks.

“The government caucus will (this morning) decide on the programme on critical bills to be dealt with by parliament,” Tiensten said yesterday.

“We may sit for three weeks to deal with the huge government agenda, including the women’s reserved seats bill, but the government caucus will decide on the programme and see how we will manage.”

He said the three-week sitting would, at least, meet the 63-day requirement for parliament to sit in a calendar year.

Tiensten, who is National Planning and Monitoring minister, brushed aside claims of a vote of no-confidence against the prime minister.

He said moves by the opposition had backfired after they targeted the man who will entertain their motion – Speaker of Parliament Jeffrey Nape.

“The opposition should be constructive and provide alternative policies.

“We have a country to run and there is no way you can weave magic to resolve the country’s problems, which the opposition is pushing.

“They should sit down and formulate alternative policies and take them to the elections to get the mandate of the people to return and run the country.”

Tiensten was also expected to make a budget statement on the medium-term development plan (MTDP) in parliament today.

He said the MTDP was a measurable document that had been fully costed at K65 billion for the next five years, aimed at creating jobs, growing the economy and improving the quality of life for all Papua New Guineans.

He also condemned the recent “politics of shooting down personalities” instead of providing alternative policies and plans and how to fund them.

Tiensten also disputed the free education policy mooted by the opposition, saying it was not sustainable and funding it would mean sacrificing other sectors such as agriculture, infrastructure and economic development.

“You have to cost such policies.

“How much will you put into free education and, at the end of the day, what will you get out of it?” he asked.

“We have to be responsible in what we say, otherwise, we are kidding ourselves.”

 

PMGH women's ward runs short of space

By GRACE AUKA

UPNG journalism student

 

THE women’s ward at the Port Moresby General Hospital (PMGH) is facing overcrowding, lack of proper facilities and shortage of midwives due to shortage of funds, The National reports.

This was revealed by the hospital staff during a donation of linens by NCD Governor Powes Parkop his wife Jean and a group of women to ward 9 of the PMGH last Friday.

These concerns were raised by unit nurse coordinator Sr Jennifer Piakalyia and Dr Apeawusu Amoa, who said the ward was in distress and needed more support particularly for mothers. 

“The challenge faced by the hospital is overwhelming and it still needs more funds because currently there is not enough beds, unfinished construction work on a building next to ward 9, this all comes down to lack of funds,” Amoa said.

He emphasised that the hospital needed more funding and support for the women in PNG in order for them to be kept in a comfortable and caring environment when admitted to the hospital.

According to Piakalya, the number of women delivering a day was 40-50, but there were not enough hospital beds, forcing some of them to sleep and rest along the corridors and even in the reception area of ward 10.   

“The number of midwives has decreased, in a day there are only two midwives on duty to help mothers to deliver their babies,” she said.

The donation came from the women’s own effort and funds from a family project.

It comprised 100 pillows, 198 pillow cases and 174 bed sheets.