More funds needed

National, Normal
Source:

The National, Wednesday 29th May 2013

 By PETER ESOP WARI

MT HAGEN city needs about K15 million annually to run its affairs, a former council manager says.

Akkai Kup said the Mt Hagen Urban LLG revenue source was based on land rates, sanitation and garbage fees which was a mere K500,000 per annum.

He said current arrangements, under the organic law on provincial and local level governments, were that Urban LLGs such as Lae, Mt Hagen, Rabaul, Goroka and Madang did not have financial autonomy to run the affairs of the municipalities.

Kup said goods and services tax (GST) were collected by the provincial governments.

Services affected included town roads, street lighting, sewerage and sanitation, water, garbage collection and law and order.

“Because Mt Hagen Urban LLG does not have the financial authority to collect general goods and services tax, it has been lacking in many areas over the years,” Kup said.

He said many new companies were grabbing land and putting up tin sheds and container shops on every corner of the city including residential areas which was illegal.

“I would like the national government to amend the organic law on provincial and LLG to give total financial autonomy to all major towns and city councils to collect all forms of taxes,” Kup said.

He said in the past eight years, the city development had stagnated and congested with people and vehicles.

He urged the Western Highlands provincial government to free up Pope Paul Oval and Queen Elizabeth Park to investors to create economic activity.