Comprehensive consultation needed

Letters

WITH limited knowledge of the systems and processes of Public Finance Management Act (1995) and delegation of financial powers to provinces and districts, I would like to point out certain setbacks and challenges in relation to issues raised by Finance and Planning Minister, Rainbo Paita and Northern Governor Gary Juffa in Parliament last week.
Firstly, the current status quo at the provincial and district level operations of provincial financial office (formerly treasury) and district finance office is by virtue of delegated functions and authority from the Department of Finance.
This means functions, powers, organisational structure/plans, staff recruitment/retention, budget allocation and technical advices all rest with the Department of Finance.
The requirement of an essential separation of powers and functions at the sub-national level (provinces/districts) would clearly demarcate financial powers and functions.
A comprehensive consultation and review is required at all three levels of government to amend the current Organic Law on provincial and local level governments (LLGs) (1989) to accommodate integrated functions such as districts and LLGs, provincial and district financial powers and functions, human resources, administrative functions, internal revenue raising and others.
The sub-national systems of government cannot rely entirely on the Government for annual funding through budgetary allocations without contributing any revenue locally raised.
These governance systems (provinces/districts) have to raise internal revenue by utilising their local natural resources and abundant labour to contribute to national coffers.
An analogy to demonstrate the current status quo is likened to a lazy person who does not work, but continues to eat dinner every evening.
The question is does the recipient know where the dinner is being prepared and cooked and from which food sources and for how long it (dinner plate) will be served?
These are fundamental issues when it comes to financial powers functions and internal revenue raising.
There has to be a holistic approach from receiving and spending to raising and allocating of public funds that has to be legislated by way of amendment to the current
Organic Law on provincial and LLGs and integration of various administrative and financial powers and functions at sub-national level.
Do not contemplate on how much Waigani can continue to give year in year out, but also ask how much provinces/districts can contribute to national budget and receive your share according to the proportion of internal revenue generated.
Papua New Guinea will turn 50 in 2025.
In less than 50 years, most of the non-renewable extractive industry resources will be depleted.
How on earth will we substitute the 80 per cent of the current revenue generated by that sector?
This is alarming!
Obviously, the answer lies in agriculture and downstream processing of agriculture produce.
As a case in point: look at New Zealand.
Their abundant natural resources are land and pasture (grass) which feeds sheep and cattle.
These livestock produce meat, milk wool and other by-products which are commercially viable.
This industry will go on forever.
In PNG, we can do more both with livestock and crops and leave a good wealthy and healthy economy for our children when we are gone.

Philip Ukuni