Cabinet’s decision to move royalty funds affecting partners: Sir Julius

THE New Ireland government’s subsidy policies have been affected by the National Executive Council’s decision to move the Lihir Royalty Government funds directly to the district development authorities of the two open electorates, Governor Sir Julius Chan says.
Sir Julius said according to clause 6(c) of the Lihir memorandum of agreement (MoA), the Government was to pay 50 per cent of the royalties to the provincial government.
The provincial government would in turn distribute that amount to Namatanai (40 per cent) and Kavieng (40 per cent) for projects and programmes pursuant to its district development plans while the New Ireland government would retain a portion (20 per cent).
As a result of the revised distribution of royalties, Sir Julius directed chief executive of subsidies, Mactil Bais to convene a meeting with affected priority partners including heads of education institutions, health and churches on Thursday.
Bais, who relayed the news to all development and service partners, said it was in their best interest and the people of New Ireland that they be made aware of the potential impact the NEC’s decision to transfer all funding directly to the open members would have on them.
The stakeholders especially the heads of education institutions expressed serious concern for their students and parents who had been benefitting from the free and subsidised policies for the past 12 years.
“We have been relying on funding from the provincial government especially for rations for our boarding students,” Mangai Agro Secondary School principal John Tokmun said.
“How are we going to feed our students?
“The tuition fee free funding that comes from the national government does not cover this component.
“We might have to start charging school fees of K1,000 or more now,” he said.