2010 Budget Reply by the Opposition

2010 BUDGET REPLY

Tuesday, 24 November 2009

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Budget: a fast money scheme and an inflation time bomb
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BART PHILEMON, MP
Deputy Opposition Leader
Spokesman for Treasury and Finance

A. INTRODUCTION

Mr Speaker,

The Opposition see the 2010 Budget as nothing more than a fast money scheme and an inflation time bomb.

And the track record of the Somare-Temu Government, particularly the Treasurer in the management of the two full Annual Budgets of 2008 and 2009, does not give us much hope for a revolutionary change in this budget.

In fact, many of us, having observed the outcomes and trends, are suspicious and worried that again we will be deceived, disappointed and disturbed by the final outcome of the 2010 Budget.
The purpose of any annual budget is to create wealth and reduce poverty for Papua New Guinea. However in budget after budget much of PNG’s population has been forgotten in the process of development. This has happened for decades even in periods of favourable economic growth. Both delivery of infrastructure maintenance and basic social services, despite huge volumes of money, have failed to keep pace with population growth.

Why make critical comments on what so far has happened? The reason is simple: if we do not reflect on what has happened, we are likely to repeat the same practice again and again. And the service that we need to provide to our people across PNG will always remain dreams and not reality.

We all must be interested in improved service outcomes.
* We want to see healthcare and a healthier population,
* improved schooling and quality educational attainment for our children,
* a road network that is regularly maintained enabling a smooth flow of people and goods to markets, and
* a developing agriculture and tourism sector that generates income for the bulk of our people to improve their standard of living.

B. ASSESSMENT OF 2008 BUDGET PERFORMANCE

Mr Speaker, in order to make full assessment of 2010 Budget one must look at the Final Budget Outcomes for 2008 and the performance to date of 2009 as the foundation for structuring the 2010 Budget.

This Government’s first full Budget after the 2007 National Elections was 2008 Annual Budget. That budget was completely mismanaged. When it was presented, the Parliament was told by the Treasurer that they were planning for a surplus budget of K202.4 million.
In November 2008, the Government revised the budget by adding K598.8 million to the revenue and K790.7 million to the expenditure. The expectation was for the final budget outcome to be a small deficit of K9.5 million.

In actuality, the deficit was K478.5 million – which was K680.9 million worse off than the originally planned surplus of K202.4 million.

Mr Speaker, the Opposition – and I am sure – many Papua New Guineans are still mystified by how a K850 million supplementary budget could be handed down and co-exist in the same financial year in which we hit a annual budget deficit of K478.5 million.

Papua New Guinea’s economy has performed exceptionally well since 2003. Our country has seen unprecedented macroeconomic stability and growth and, more importantly, stood the test of the global financial meltdown.

C. ASSESSMENT OF 2009 BUDGET PERFORMANCE

This impressive performance has been brought about by high prices for most of our export commodities, coupled with strong and prudent management of pre-2008 Budgets.
However, all the positive economic developments are now at great risk, due largely to a breakdown in fiscal discipline and lack of prudent macroeconomic management, which started when the National Alliance-led Government took office after the 2007 elections.
The PNG economy is now suffering from inflationary pressure fuelled by excessive spending by the Government and subsequent financing of the 2008 Budget deficit of K478.5 million through the domestic market.

The inflation rate peaked at a record 13.2 per cent in 2008 but has been well contained by the Central Bank through the tightening of its monetary policy. The current rate is 7.0 per cent but this could jump to 15 per cent by the end of the year if the Government continues to draw down on trust accounts and if the kina continues to depreciate against the Australian dollar.

*** It is 25-pages long. If you need a copy, email me.

2010 Budget Reply by the Opposition

2010 BUDGET REPLY

Tuesday, 24 November 2009

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Budget: a fast money scheme and an inflation time bomb
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BART PHILEMON, MP
Deputy Opposition Leader
Spokesman for Treasury and Finance

A. INTRODUCTION

Mr Speaker,

The Opposition see the 2010 Budget as nothing more than a fast money scheme and an inflation time bomb.

And the track record of the Somare-Temu Government, particularly the Treasurer in the management of the two full Annual Budgets of 2008 and 2009, does not give us much hope for a revolutionary change in this budget.

In fact, many of us, having observed the outcomes and trends, are suspicious and worried that again we will be deceived, disappointed and disturbed by the final outcome of the 2010 Budget.
The purpose of any annual budget is to create wealth and reduce poverty for Papua New Guinea. However in budget after budget much of PNG’s population has been forgotten in the process of development. This has happened for decades even in periods of favourable economic growth. Both delivery of infrastructure maintenance and basic social services, despite huge volumes of money, have failed to keep pace with population growth.

Why make critical comments on what so far has happened? The reason is simple: if we do not reflect on what has happened, we are likely to repeat the same practice again and again. And the service that we need to provide to our people across PNG will always remain dreams and not reality.

We all must be interested in improved service outcomes.
* We want to see healthcare and a healthier population,
* improved schooling and quality educational attainment for our children,
* a road network that is regularly maintained enabling a smooth flow of people and goods to markets, and
* a developing agriculture and tourism sector that generates income for the bulk of our people to improve their standard of living.

B. ASSESSMENT OF 2008 BUDGET PERFORMANCE

Mr Speaker, in order to make full assessment of 2010 Budget one must look at the Final Budget Outcomes for 2008 and the performance to date of 2009 as the foundation for structuring the 2010 Budget.

This Government’s first full Budget after the 2007 National Elections was 2008 Annual Budget. That budget was completely mismanaged. When it was presented, the Parliament was told by the Treasurer that they were planning for a surplus budget of K202.4 million.
In November 2008, the Government revised the budget by adding K598.8 million to the revenue and K790.7 million to the expenditure. The expectation was for the final budget outcome to be a small deficit of K9.5 million.

In actuality, the deficit was K478.5 million – which was K680.9 million worse off than the originally planned surplus of K202.4 million.

Mr Speaker, the Opposition – and I am sure – many Papua New Guineans are still mystified by how a K850 million supplementary budget could be handed down and co-exist in the same financial year in which we hit a annual budget deficit of K478.5 million.

Papua New Guinea’s economy has performed exceptionally well since 2003. Our country has seen unprecedented macroeconomic stability and growth and, more importantly, stood the test of the global financial meltdown.

C. ASSESSMENT OF 2009 BUDGET PERFORMANCE

This impressive performance has been brought about by high prices for most of our export commodities, coupled with strong and prudent management of pre-2008 Budgets.
However, all the positive economic developments are now at great risk, due largely to a breakdown in fiscal discipline and lack of prudent macroeconomic management, which started when the National Alliance-led Government took office after the 2007 elections.
The PNG economy is now suffering from inflationary pressure fuelled by excessive spending by the Government and subsequent financing of the 2008 Budget deficit of K478.5 million through the domestic market.

The inflation rate peaked at a record 13.2 per cent in 2008 but has been well contained by the Central Bank through the tightening of its monetary policy. The current rate is 7.0 per cent but this could jump to 15 per cent by the end of the year if the Government continues to draw down on trust accounts and if the kina continues to depreciate against the Australian dollar.

*** It is 25-pages long. If you need a copy, email me.

2010 Budget Reply by the Opposition

2010 BUDGET REPLY

Tuesday, 24 November 2009

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Budget: a fast money scheme and an inflation time bomb
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BART PHILEMON, MP
Deputy Opposition Leader
Spokesman for Treasury and Finance

A. INTRODUCTION

Mr Speaker,

The Opposition see the 2010 Budget as nothing more than a fast money scheme and an inflation time bomb.

And the track record of the Somare-Temu Government, particularly the Treasurer in the management of the two full Annual Budgets of 2008 and 2009, does not give us much hope for a revolutionary change in this budget.

In fact, many of us, having observed the outcomes and trends, are suspicious and worried that again we will be deceived, disappointed and disturbed by the final outcome of the 2010 Budget.
The purpose of any annual budget is to create wealth and reduce poverty for Papua New Guinea. However in budget after budget much of PNG’s population has been forgotten in the process of development. This has happened for decades even in periods of favourable economic growth. Both delivery of infrastructure maintenance and basic social services, despite huge volumes of money, have failed to keep pace with population growth.

Why make critical comments on what so far has happened? The reason is simple: if we do not reflect on what has happened, we are likely to repeat the same practice again and again. And the service that we need to provide to our people across PNG will always remain dreams and not reality.

We all must be interested in improved service outcomes.
* We want to see healthcare and a healthier population,
* improved schooling and quality educational attainment for our children,
* a road network that is regularly maintained enabling a smooth flow of people and goods to markets, and
* a developing agriculture and tourism sector that generates income for the bulk of our people to improve their standard of living.

B. ASSESSMENT OF 2008 BUDGET PERFORMANCE

Mr Speaker, in order to make full assessment of 2010 Budget one must look at the Final Budget Outcomes for 2008 and the performance to date of 2009 as the foundation for structuring the 2010 Budget.

This Government’s first full Budget after the 2007 National Elections was 2008 Annual Budget. That budget was completely mismanaged. When it was presented, the Parliament was told by the Treasurer that they were planning for a surplus budget of K202.4 million.
In November 2008, the Government revised the budget by adding K598.8 million to the revenue and K790.7 million to the expenditure. The expectation was for the final budget outcome to be a small deficit of K9.5 million.

In actuality, the deficit was K478.5 million – which was K680.9 million worse off than the originally planned surplus of K202.4 million.

Mr Speaker, the Opposition – and I am sure – many Papua New Guineans are still mystified by how a K850 million supplementary budget could be handed down and co-exist in the same financial year in which we hit a annual budget deficit of K478.5 million.

Papua New Guinea’s economy has performed exceptionally well since 2003. Our country has seen unprecedented macroeconomic stability and growth and, more importantly, stood the test of the global financial meltdown.

C. ASSESSMENT OF 2009 BUDGET PERFORMANCE

This impressive performance has been brought about by high prices for most of our export commodities, coupled with strong and prudent management of pre-2008 Budgets.
However, all the positive economic developments are now at great risk, due largely to a breakdown in fiscal discipline and lack of prudent macroeconomic management, which started when the National Alliance-led Government took office after the 2007 elections.
The PNG economy is now suffering from inflationary pressure fuelled by excessive spending by the Government and subsequent financing of the 2008 Budget deficit of K478.5 million through the domestic market.

The inflation rate peaked at a record 13.2 per cent in 2008 but has been well contained by the Central Bank through the tightening of its monetary policy. The current rate is 7.0 per cent but this could jump to 15 per cent by the end of the year if the Government continues to draw down on trust accounts and if the kina continues to depreciate against the Australian dollar.

*** It is 25-pages long. If you need a copy, email me.

A nonessential item: Only for the affluent

This is a reckless spending using the Papua New Guinea taxpayers' kinas on an aircraft to be used only by the well-to-do while the majority of the people of Papua New Guinea live in poverty and under crumbling infrastructure.

The government's refusal to hear public outbursts and clear motives to purchase such sumptuousness plane depicts a government which is hellbent on corruption flanked by scandals. How can Papua New Guinea develop when leaders give their backs to people when they say something on the monies they contribute to the government's purse year in and year out.
We got more questions than answers on the source of financing this luxury for few well-to-do. Where did the money come from? Who met half of the costs? How will it be economically viable? Was it fully paid for? For how long will the PNG taxpayers meet the cost if it was bought on a loan? etc...The people of PNG need to know some of the answers to these questions.

One hundred twenty million kina ($35M) would have done wonders for improving road conditions and other infrastructure establishments; for example, in places like Pangia in Southern Highlands, West Kambia in Western Highlands, Menyamia in Morobe, Lufa in Eastern Highlands, etc... if the government had the people's interests ahead of theirs in using these public monies. I would only dream of having such vital but necessary services for our village folks but wouldn't see our folks having them for decades.

Recycled leaders like somare and a bunch of others who share his corrupt deals and prey on public purses need to leave. The only way to do this, is to rally with like minded Papua New Guineans using all available avenues, ie; face book, emails, editorials, word of mouth, public boards, blogs, etc...so that we speak the same langauage come 2012. In a country of over eight hundred different languages, it is possible for us to speak one language. Yes, We Can!

A nonessential item: Only for the affluent

This is a reckless spending using the Papua New Guinea taxpayers' kinas on an aircraft to be used only by the well-to-do while the majority of the people of Papua New Guinea live in poverty and under crumbling infrastructure.

The government's refusal to hear public outbursts and clear motives to purchase such sumptuousness plane depicts a government which is hellbent on corruption flanked by scandals. How can Papua New Guinea develop when leaders give their backs to people when they say something on the monies they contribute to the government's purse year in and year out.
We got more questions than answers on the source of financing this luxury for few well-to-do. Where did the money come from? Who met half of the costs? How will it be economically viable? Was it fully paid for? For how long will the PNG taxpayers meet the cost if it was bought on a loan? etc...The people of PNG need to know some of the answers to these questions.

One hundred twenty million kina ($35M) would have done wonders for improving road conditions and other infrastructure establishments; for example, in places like Pangia in Southern Highlands, West Kambia in Western Highlands, Menyamia in Morobe, Lufa in Eastern Highlands, etc... if the government had the people's interests ahead of theirs in using these public monies. I would only dream of having such vital but necessary services for our village folks but wouldn't see our folks having them for decades.

Recycled leaders like somare and a bunch of others who share his corrupt deals and prey on public purses need to leave. The only way to do this, is to rally with like minded Papua New Guineans using all available avenues, ie; face book, emails, editorials, word of mouth, public boards, blogs, etc...so that we speak the same langauage come 2012. In a country of over eight hundred different languages, it is possible for us to speak one language. Yes, We Can!

A nonessential item: Only for the affluent

This is a reckless spending using the Papua New Guinea taxpayers' kinas on an aircraft to be used only by the well-to-do while the majority of the people of Papua New Guinea live in poverty and under crumbling infrastructure.

The government's refusal to hear public outbursts and clear motives to purchase such sumptuousness plane depicts a government which is hellbent on corruption flanked by scandals. How can Papua New Guinea develop when leaders give their backs to people when they say something on the monies they contribute to the government's purse year in and year out.
We got more questions than answers on the source of financing this luxury for few well-to-do. Where did the money come from? Who met half of the costs? How will it be economically viable? Was it fully paid for? For how long will the PNG taxpayers meet the cost if it was bought on a loan? etc...The people of PNG need to know some of the answers to these questions.

One hundred twenty million kina ($35M) would have done wonders for improving road conditions and other infrastructure establishments; for example, in places like Pangia in Southern Highlands, West Kambia in Western Highlands, Menyamia in Morobe, Lufa in Eastern Highlands, etc... if the government had the people's interests ahead of theirs in using these public monies. I would only dream of having such vital but necessary services for our village folks but wouldn't see our folks having them for decades.

Recycled leaders like somare and a bunch of others who share his corrupt deals and prey on public purses need to leave. The only way to do this, is to rally with like minded Papua New Guineans using all available avenues, ie; face book, emails, editorials, word of mouth, public boards, blogs, etc...so that we speak the same langauage come 2012. In a country of over eight hundred different languages, it is possible for us to speak one language. Yes, We Can!

Somare's Time is Up and Over

By Joseph Turian

As the Chief Executive Officer (CEO) of Mendi Hospital, I support good governance and good government. However, my opinion is that the current performance by the government and especially the behaviour of many of the government ministers does not convince me of their seriousness in managing this nation and its wealth for the common good of all Papua New Guinea citizens. Their effort to stamp out corrupt practices in government and government officers is appalling.

I have a lot of respect for the Hon Prime Minister as the father of the Nation, God bless him and his family. I must be honest to say that the father of the Nation’s time is up and he should retire gracefully now or at the end of his current term. We must now cultivate in new leader to lead our Nation. God bless who ever that might be.

I am a Papua New Guinean first and my province of origin is second. My wish, is for a good leader to manage Papua New Guinea for all of us and with those who come to work for us, live with us and visit us.
The removal of K200, 000,000.00 ($30m) from Health dept for health projects in Papua New Guinea is a shame and reflects the insensitivity of the Government to address the health infrastructure needs of the Hospital and rural health. This could have been down competently by the Department of Health.

We had development funds for Redevelopment of Mendi Hospital for K6.4 million and now we have to put up a fight to get it from the National Planning office. Why must I fight to get something that needs to be provided by my own government? This money is rightfully for Mendi Hospital.

The redevelopment plan was completed and this was going to be given to a contract only to be removed on November, 9th 2008. The National Planning & Management office do not have the capacity to assist Hospitals throughout the country.

When I see the gross abuse and negligence by the Government ministers and their cronies at the National Planning office for their own good, it saddens me and hurts me to my bone marrows.

God Bless PNG

Joseph Turian
Chief Executive Officer
Mendi Hospital

*** Joe,

Thanks for your thoughts.

I have been vocal on such issues and have written extensively to the editorials of the papers about corrupt leadership and their practices in some of the highest offices in Papua New Guinea.

While you have some respect for the somare family, I don't have any respect for the so called father of the nation because somare had never done anything to alleviate the level of poverty and infrastructure developments in our rural areas. Our villages still lack major infrastructure developments. For these motives, somare doesn't need to be at the helm remote controlling the country (PNG) like it is a family business.

Therefore, he and his cohorts need to be kicked in the butt so that NA will have no traces on the political scene in 2012 and beyond.I thank you and other CEOs of our major hospitals to work tirelessly under tiring conditions to keep the hospitals going so that our rural folks can get the care they needed. Good job and continue to fight for what is ours.

I think what you expressed is a scenario that portrays our leaders' level of ignorance and stupidity toward the people they represent. As you rightfully pointed out, unless we put in new bunch of leaders who put their people's interests ahead of theirs, Papua New Guinea will not develop in all aspects.

God bless you and your wantoks (friends) in Mendi and PNG.

Somare's Time is Up and Over

By Joseph Turian

As the Chief Executive Officer (CEO) of Mendi Hospital, I support good governance and good government. However, my opinion is that the current performance by the government and especially the behaviour of many of the government ministers does not convince me of their seriousness in managing this nation and its wealth for the common good of all Papua New Guinea citizens. Their effort to stamp out corrupt practices in government and government officers is appalling.

I have a lot of respect for the Hon Prime Minister as the father of the Nation, God bless him and his family. I must be honest to say that the father of the Nation’s time is up and he should retire gracefully now or at the end of his current term. We must now cultivate in new leader to lead our Nation. God bless who ever that might be.

I am a Papua New Guinean first and my province of origin is second. My wish, is for a good leader to manage Papua New Guinea for all of us and with those who come to work for us, live with us and visit us.
The removal of K200, 000,000.00 ($30m) from Health dept for health projects in Papua New Guinea is a shame and reflects the insensitivity of the Government to address the health infrastructure needs of the Hospital and rural health. This could have been down competently by the Department of Health.

We had development funds for Redevelopment of Mendi Hospital for K6.4 million and now we have to put up a fight to get it from the National Planning office. Why must I fight to get something that needs to be provided by my own government? This money is rightfully for Mendi Hospital.

The redevelopment plan was completed and this was going to be given to a contract only to be removed on November, 9th 2008. The National Planning & Management office do not have the capacity to assist Hospitals throughout the country.

When I see the gross abuse and negligence by the Government ministers and their cronies at the National Planning office for their own good, it saddens me and hurts me to my bone marrows.

God Bless PNG

Joseph Turian
Chief Executive Officer
Mendi Hospital

*** Joe,

Thanks for your thoughts.

I have been vocal on such issues and have written extensively to the editorials of the papers about corrupt leadership and their practices in some of the highest offices in Papua New Guinea.

While you have some respect for the somare family, I don't have any respect for the so called father of the nation because somare had never done anything to alleviate the level of poverty and infrastructure developments in our rural areas. Our villages still lack major infrastructure developments. For these motives, somare doesn't need to be at the helm remote controlling the country (PNG) like it is a family business.

Therefore, he and his cohorts need to be kicked in the butt so that NA will have no traces on the political scene in 2012 and beyond.I thank you and other CEOs of our major hospitals to work tirelessly under tiring conditions to keep the hospitals going so that our rural folks can get the care they needed. Good job and continue to fight for what is ours.

I think what you expressed is a scenario that portrays our leaders' level of ignorance and stupidity toward the people they represent. As you rightfully pointed out, unless we put in new bunch of leaders who put their people's interests ahead of theirs, Papua New Guinea will not develop in all aspects.

God bless you and your wantoks (friends) in Mendi and PNG.

Somare's Time is Up and Over

By Joseph Turian

As the Chief Executive Officer (CEO) of Mendi Hospital, I support good governance and good government. However, my opinion is that the current performance by the government and especially the behaviour of many of the government ministers does not convince me of their seriousness in managing this nation and its wealth for the common good of all Papua New Guinea citizens. Their effort to stamp out corrupt practices in government and government officers is appalling.

I have a lot of respect for the Hon Prime Minister as the father of the Nation, God bless him and his family. I must be honest to say that the father of the Nation’s time is up and he should retire gracefully now or at the end of his current term. We must now cultivate in new leader to lead our Nation. God bless who ever that might be.

I am a Papua New Guinean first and my province of origin is second. My wish, is for a good leader to manage Papua New Guinea for all of us and with those who come to work for us, live with us and visit us.
The removal of K200, 000,000.00 ($30m) from Health dept for health projects in Papua New Guinea is a shame and reflects the insensitivity of the Government to address the health infrastructure needs of the Hospital and rural health. This could have been down competently by the Department of Health.

We had development funds for Redevelopment of Mendi Hospital for K6.4 million and now we have to put up a fight to get it from the National Planning office. Why must I fight to get something that needs to be provided by my own government? This money is rightfully for Mendi Hospital.

The redevelopment plan was completed and this was going to be given to a contract only to be removed on November, 9th 2008. The National Planning & Management office do not have the capacity to assist Hospitals throughout the country.

When I see the gross abuse and negligence by the Government ministers and their cronies at the National Planning office for their own good, it saddens me and hurts me to my bone marrows.

God Bless PNG

Joseph Turian
Chief Executive Officer
Mendi Hospital

*** Joe,

Thanks for your thoughts.

I have been vocal on such issues and have written extensively to the editorials of the papers about corrupt leadership and their practices in some of the highest offices in Papua New Guinea.

While you have some respect for the somare family, I don't have any respect for the so called father of the nation because somare had never done anything to alleviate the level of poverty and infrastructure developments in our rural areas. Our villages still lack major infrastructure developments. For these motives, somare doesn't need to be at the helm remote controlling the country (PNG) like it is a family business.

Therefore, he and his cohorts need to be kicked in the butt so that NA will have no traces on the political scene in 2012 and beyond.I thank you and other CEOs of our major hospitals to work tirelessly under tiring conditions to keep the hospitals going so that our rural folks can get the care they needed. Good job and continue to fight for what is ours.

I think what you expressed is a scenario that portrays our leaders' level of ignorance and stupidity toward the people they represent. As you rightfully pointed out, unless we put in new bunch of leaders who put their people's interests ahead of theirs, Papua New Guinea will not develop in all aspects.

God bless you and your wantoks (friends) in Mendi and PNG.