Elephants for 5-Mile

PNG Gardener Justin Thatchenko continues to amaze city residents in NCD in his efforts to beautify the capital and make it welcoming for visitors and tourists as they enter the city, The National reports.
Now, with Christmas a month away, a convoy of “animals”, not normally seen in these parts, was seen being trucked yesterday to the Jack Pidik Park at 5-Mile. 
There, they stood alongside the Christmas lights put up by PNG Gardener workmen this week as NCD Governor Powes Parkop officially switched them on yesterday evening. 
The artificial animals, including giraffes, elephants and rhinoceros, drew quite a stir from the public as they made their way to their destinations yesterday. – Nationalpic by AURI EVA

Economy to grow 7.1% this year, says forecast

PAPUA New Guinea's economy grew by an estimated 5.5% last year and is expected to grow 7.1% this year, The National reports.

According to the Deloitte Touche 2011 budget alert, the economy was able to weather the global recession of last year reasonably well, with the financial sector remaining resilient due to relatively low exposure to overseas financial instruments and a strong domestic funding base.

However, the most heavily affected sectors were agriculture, forestry, fisheries and the manufacturing sectors due to declining overseas demand.

Themed Building the foundations for economic growth and prosperity, the 2011 budget in many ways can be described as a "steady as she goes" budget, which builds on planning done in previous years and takes advantage of the increased revenue stream expected to be available next year.

As in previous years, the government seeks to promote a stable macro economic and fiscal environment and to that end has announced a balanced budget.

The global recovery together with expected increased commodity prices and production will result in additional mineral revenue in 2011.

The government set out what it saw as a number of risks to the fiscal and economic outlook on which the budget is framed.

These include the fragility of the global economy in terms of its impact on PNG exports and commodity prices, delays to the PNG LNG and other resource projects, and the government diverting from fiscal discipline and adding to already strong inflationary pressures.

On the plus side, it was recognised that a number of mining and gas projects are under active consideration which would provide a boost to the PNG economy if they proceed.

As such, the government will fund its established framework, the national agriculture development plan 2007-2016 with K109 million, with support also going to other sectors of agriculture.

Fisheries will be receiving K55 million to foster investments in marine industrial zones and the Pacific Marine Industrial Zone in Madang.

It will also receive K15 million for the Coastal Fisheries Development Programme.

Forestry will be receiving support in terms of programmes aimed at, among others, support for forest research institute rehabilitation and support for sustainable forest management.

 

 

Vote notice ousted

House committee declares no-confidence motion defective

 

THE opposition suffered a double blow yesterday when its notice for a vote of no-confidence was declared defective, and three of its MPs moved to the government side, The National reports.

Parliament Speaker and chairman of the parliamentary Private Members Committee (PMC) Jeffrey Nape is expected to announce the committee’s decision, nullifying the notice, when parliament resumes at 10 o’clock this morning to deal with major government business including the women’s reserved bill.

The PMC members included Deputy Speaker Francis Marus, Usino-Bundi MP Sampson Kuli, Yangoru-Saussia MP and East Sepik Governor Peter Waranaka and Mendi MP Isaac Joseph.

They held their meeting to discuss the notice when parliament was adjourned yesterday morning.

The PMC’s main agenda was to consider the merit and the demerits of the notice of motion of no-confidence and whether it was of national importance or a parochial matter.

The PMC was also to consider, among other things, that some opposition MPs, who had initially signed the original notice of motion, had now joined the government ranks and withdrew their support for the motion.

Three MPs who had given their letter for the withdrawal of support included Simbu Governor Fr John Garia, Alotau MP Charles Abel and Kairuku-Hiri MP Paru Aihi.

Garia and Aihi were former PNG Party members who had pulled out since the change of leadership from Sir Mekere Morauta to Belden Namah.

The three MPs said in separate letters to the speaker that they had withdrawn their support as signatories.

Garia said the decision had been necessitated by his recent decision to be part of the United Resource Party following his release from PNG Party.

“Given the strong alignment that the URP has with the government and, more importantly, because URP is an integral part of the coalition government, I consider withdrawal of my support from the motion of no-confidence as in order and totally appropriate,” Garia said.

The opposition, learning that the PMC was meeting, urged it to take the vote of no-confidence motion as in the best interest of democracy and the people of PNG.

Speaking during a media conference yesterday after the parliament was adjourned, the opposition said the motion was in order and, therefore, should go ahead as submitted.

Members said that although the government might push for the motion to be thrown out on the grounds that several parties, who have been signatories to the motion, were with the government, there was nothing wrong as only the mover had the right to withdraw.

The speaker also asked the opposition to inform the house, when it sits today, who the opposition leader is and who are the members in the opposition.

 

 

Chimbu's five sum up fight for reserved seats

SYLIA Gonapa, Bepi Dom Apa, Schola Yauma, Jilla Kaupa and Dawa Sandra Terence each spent K40 this week to travel by road from Kundiawa to Lae and fly from there to Port Moresby, The National reports.

The mothers, from Sinasina-Yongomugl, came to give their support for the bill for the 22 reserved seats in parliament for women and, more importantly, to ensure their local member and speaker of parliament Jeffrey Nape did likewise.

Nape is the key man in parliamentary deliberations, they said.

They wanted to witness him supporting and passing the bill through the first reading so that they can go back and tell the women of Sinasina-Yongomugl that their MP did the right thing by them.

The mothers said: “For 35 years, we (women) have been observers and labourers while men made decisions affecting our lives,” Gonapa said.

“Now, we want to support this bill so that we can also help make decisions.

“Now, we have come to see this bill passed. We have used our own money to make sure this bill is passed.”

Schola Yauma said: “Man cannot work alone. We produce children together.

“We must make decisions affecting the child’s welfare together.

“We are not after money. We want to participate in decision-making for the betterment of our children.

“We want our MP and speaker to support this bill.”

Bepi Apa said: “We see in the newspapers the good work that Dame Carol Kidu is doing.

“She is making good decisions, but there is only one of her.

“What good we could do in this country if there were another 20 Kidus.”

Gonapa added: “In a home, both man and woman make decisions for the welfare of their family. So far, we have only seen man making the decisions.

“Decision-making in PNG is like a plane flying on one wing.”

There was another, slightly dark aspect, to this which the women said they were aware of.

Presently, only a few women were taking up the fight for reserved seats but, when the law is passed, businesswomen and educated women, who were now passive observers, would take centre stage in trying to vie for the seat, they said.

The Sinasina women said women leadership must be about bringing real change and not about wealth, power and ego trips.

They said they had seen enough of that already and that the push to get women into parliament was really to make a difference, and not to bask in personal glory.

The women went to parliament yesterday along with truckloads of other women who had also flown, trucked or sailed in from different parts of the country on the promise that the bill would be presented, but, parliament adjourned to today to do so.

Word on the bill was that cabinet had made the necessary adjustments and it was ready for presentation.

Dame Carol will present the bill to amend section 101 of the constitution, which has the personal support and blessing of Prime Minister Sir Michael Somare.

 

Deputy Prime Minister lauds budget

DEPUTY Prime Minister Don Polye believes the 2011 budget provides the essential tools for the people to become active participants not just in the local economy, but also the regional and global economy, The National reports.

He said PNG was fast becoming an integrated economy, in line with international obligations and commitments.

Polye said PNG was part of regional Asia-Pacific economy that was growing faster than other global economies, and was part of the Apec economy that must achieve the Bogor goals for zero-rate on tariffs to achieve a free-trade economy by 2020.

“Whether we like it or not, a vigorous wave of change is sweeping across the regional economy and our survival depends on our self-empowerment and enlightment, our preparedness to change to capitalise on the dynamics of progress,” he said.

He said the 2011 budget identified targets and provided the resources to achieve these goals.

He said the huge funding appropriated to education, for tertiary as well as trade and TVET education, funding of agriculture credit support and support for micro- and medium-scale enterprises were examples of the government’s commitment to achieving these goals.

He said it was right for the budget to target the medium-income class, and provide the resource for industry development and SMEs.

He said it was important to develop entrepreneurial skills and create avenues for exposure to international trade and investments.

He praised the K50 million allocation to develop economic corridors in least developed areas, and reforming of the tariff regime to attract more investment and open up trade with reciprocating economies.

Polye said the prime minister’s championing of the fight to reduce emissions of the green house gasses on the global stage provided PNG the opportunity to tap into energy project less dependent on fossil fuel.

In this regard, the government is exploring potential for thermal power projects in various locations in the country, and the Purari River project with the Queensland state government.

 

 

Prime Minister defends family

PRIME Minister Sir Michael Somare has hit back at the opposition and media for persecuting him and his family with allegations for political convenience, The National reports.

Sir Michael sought leave from parliament and, in a personal explanation, said the Somare family had not taken anything away from the country that did not belong to it.

“I brought this country through to independence with the best of intentions.

“Nobody should put up with the kind of venom that my entire family has been subjected to over the years that I have been in office,” Sir Michael said.

“Yes, I am a member of parliament and a public figure, but there are standards of conduct even in our everyday life when dealing with each other as human beings, even towards people in public life.”

The prime minister said it was for political convenience that the Moti Affair was continually being flogged by the opposition.

He said the matter concerning the Taiwanese deal was put to rest months ago when the courts in Singapore identified the persons involved in the scam and dealt with them.

“It is not a matter for Papua New Guinea.

“Similarly, the Singapore bank account is a figment of the opposition’s imagination.

“Until an ounce of proof comes out, it is insanity ... we all know the definition that Bart Philemon provided us so illustriously of doing the same thing over and over again while expecting a different result.

“Meanwhile, the Ombudsman Commission is holding tightly onto the only shred of

purported breach that they can claim against me.

“Yet, on a daily basis, my family and I have been trialed by the media on unfounded claims and allegations.

“Never in the history of PNG has any other family been dealt with in such an indecent manner.”

Sir Michael said this type of politics had never been played out in this manner over the last 35 years where personal attacks had become the order of the day.

“I have watched the many finger-pointing that has been going on.

“We have lost our sense of decency.

“The opposition leader has equally reduced himself to name-calling instead of constructive debate.

“It is equally interesting that, recently, there have been many statements made about our attitude by the public at large.

“There is no respect for one another anymore,” he said.

“Is government to blame when individuals take pride out of a filthy habit like betelnut chewing?

“I have been in my car when plastic bottles were hurled at the window full of betelnut spittle. What a disgrace.

“I have seen cars parked in the middle of the road while two wantoks speak to each other. Passing cars have to find room to manoeuvre around them.

“Is it the responsibility of government to instill basic principles of respect into these individuals? Disgraceful!”

He said the word corruption crept in too easily into people’s vocabulary every day.

“We do not need proof anymore for corruption. We can just say the word and it becomes a fact.”

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.