O’Neill: Bad move by govt to borrow

Main Stories

FORMER Prime Minister Peter O’Neill says plans by Treasurer Ian Ling-Stuckey to borrow from Asian Development Bank (ADB) and Australia to fund the budget goes against economic common sense.
He said the plans would dig a hole for the country’s economy during challenging global circumstances.
“It is not needed and will only lead to a blowout in the debt limit,” O’Neill said.
“The lengthy delays in the start of major investment projects is causing a slowdown in projected GDP (Gross Domestic Product) so to take on needless debt now would be very foolish.
“A smart and strategic government should only borrow for the investment in infrastructure that delivers returns for the economy.
“Smart borrowing for investment in roads, bridges, airports, ports and health and education is a tool to build the economy, create jobs and improve living standards.
“This has been the approach of the government for the past eight years and seen a sensible management of debt levels.
“The government has a responsibility to manage the budget, to prioritise expenditure against cash flow throughout the year and continue to increase efficiencies in recurring government expenditure.
“It would be a very bad move for the government to borrow for consumption including wages, administration, government travel and other expenses.
“I would be interested to hear if Prime Minister James Marape and Patrick Pruaitch are supportive of borrowing to pay for non-capital expenditure as they were strongly opposed to this approach for many years.
“It seems this new Treasurer likes to spend a lot of time talking and name calling, but the policies he is putting forward are not only against the stated policies of the Marape Government, but are unworkable.
“Now is the time to move beyond politics and work together to deliver sensible strategies to manage and advance the national economy.”

18 comments

  • He was the real culprit behind all the borrowing during his reign. Now he’s trying to be a saint and start pointing fingers. Please humble yourself and shift to the opposition benches. To the PM please kick him out of the government benches already.

  • Soti Fida you are so contradicting to your own self. This is the spill over of the economic mess you created. It’s just fresh in the minds of the tax payers. Better you shut up and then pretending to show your concern for the country’s economy.

  • Initially there was mention of borrowing to refinance of our national debt. Now the Honorable Finance Minister is mentioning borrowing for budget support. Could the Minister please clarify if this is the same loan or two different loans he is talking about. I would presume this is the same borrowing initially mentioned only with different terminology used to describe it.
    Actually I would agree with the ex-PM that this is not the best time to go into more borrowing. What the Government should concentrate on is more belt-tightening measures internally to reduce spending. We do not want to dig a debt-hole to deep to climb out of.

  • The real culprit that spoiled and about to bring PNG to broken backbone and a collapse state seemed to be non other than the ex-PM (PO) who is now try pretending to show his concern for the country’s economy. The very wild borrowing culture that has been developed by this country is non other than him (PO). He is now pretending to become a saint. Majority Papua New Guineans hate his political economy of deception. The current Government is trying its best through sweating to fix the mess he created so should he shut his mouth and take his right place in the opposition. Who’s gona listen to him.

  • Its not very soon, this jmarape government and his treasury minister will take PNG into the drain. Png will go bankrupt by this government. Let’s watch.

  • The guy got a point there, lets not point fingers but put our heads together and come up with solutions to assist our Country out of the quagmire.

  • That’s True. Prime Minister JM and his cabinet should for capital expenditure or to finance its spending. This country is sinking because MPs’ and leaders of the assembly are standing up for themselves rather than people. Thus, if government were to borrow then it must bring some returns to the indigenous citizen of this nation. Borrow for administration functions, wages, and trip is too foolish and would not bring any economic benefits to 6.5 million people in the country. Plan strategically, analyse future benefits, and close the alternatives to make confident decision.

  • Politics of hope or politics of just big dreams. Our country and it’s people deserve a Government that will lead us out of our current financial sinkhole. O’Neil or Marape as PM is not of primary importance. The WISDOM OF GOD is for our great country.. GOD SAVE PAPUA NEW GUINEA.

  • I totally condemn the comments made by Samson and John Wemin about our former Prime Minister,Peter O’Neill. I would rate both of your comments as senseless, irrational and too personal against Mr.O’Neil. Both of you are no match to Mr. O’Neill in many aspects. If both of you were sensible enough, you would understand that every Prime Minister is elected through democratic process and the people invest power in the MP’s to appoint PM.The good Lord see the need of a Prime Minister for PNG during the time of desperation so He choose Peter O’Neill. God entrust the whole nation to him. It was the answer to the prayer of PNG that time. We faced economic crisis under the leadership of grand Chief Sir Michael Somare as of the year 2002 and back.
    Successive Prime Ministers before Peter O’Neill had no policy on TFF, DSIP and PSIP etc.
    Generally the 8 million people in our country enjoyed the Tuition Fee Free Policy all through as it was first of its kind in the history PNG since Independence. Off course you can say he is physically short but Mr. Peter O’Neill stood tall in his leadership and performed at a higher level and really brought the country more closer to the international scene.The APEC Meeting in PNG was a big achievement for our country.The Infrastructure impact Projects in the cities and towns in some parts of our country are things that we should be proud of all the time.
    I also won’t deny the fact that there are some things that the people expect were not met by the O’Neill Government therefore the change of Government has taken place. I for one will continue to applause Mr. Peter O’Neill for bringing the country this far with a lot of legacy behind.
    Mr. O’Neill, if you are reading my comment,I applaud you for making these statement and I quote,”“A smart and strategic government should only borrow for the investment in infrastructure that delivers returns for the economy.
    “Smart borrowing for investment in roads, bridges, airports, ports and health and education is a tool to build the economy, create jobs and improve living standards.” unquote. Mr. O’Neill, you are a great leader, you talk on what you have done.
    Again its democracy that paved the way for a change of new Government. Our new Prime Minister, Mr. James Marape is Mr. O’Neill’s (political) brother and he knows exactly where Mr. O’Neill left and I’m sure Mr. Marape knew where to continue. We are looking forward for a better PNG with Mr. James Marape and his Government in the years to come.
    To my fellow Papua New Guineans, when you respond to articles in the “National” like this by our leaders, be cautious not to defame our leaders.You have the freedom of speech to say anything about our leaders and Government but present in a decent and positive mode.When you curse your leaders.You ruin your country.

  • Hypocrite. Why can’t he remain silent on this issue as he was the one who went about borrowing which put us in red.

    On the move undertaken by the treasurer to seek more loans, he should look within before going outside. Our financial institutions such as BSP, Kina Bank, Nambawan Super and NASFUND can form a consortium to fund how many billions the Government needs to fund the deficit budget. One good thing is that money is kept within PNG. Just a thought.

  • Yes, I fully support Mikes Ketava’s idea of looking within before going outside, and use the financial resources available through our own financial institutions as highlighlighted above. May our God of all creation bless our leaders with Wisdom from above to make the “Right Decision” for the sake of this great resource rich nation and its people.. God Bless Papua New Guinea.

  • Totally Agree with Peter O’Neill,

    P.O knows very well how country will benefited by getting huge amount of loan, he knows how generate revenue in the country…

    he knows what he is talking.

  • What the ex-PM and the longest serving PM says is simply true and makes sense. If you are educated enough you would understand the economic scenario.

    Best Advise!

  • While having an understanding to the current economic situation in the country, the Treasure should stop borrowing should look for other alternates to that said reason. I f continue borrowing then its lie adding kerosene onto a burning fire….

  • i agree with ex-PM PO for his comment on current government about borrowing money. Even though PO brought mega development into our country in terms of infrastructure, health and education by borrowing money/ getting loan but yet we the citizens crying for new government who will stabilize our country’s economy but new Government still wants to implement the idea of a foolish politicians/ idea of old dog who have been miss leading PO government.
    is that the way forward to take back PNG?

  • Peter O`Neil is right.Marape and Setven should Stop that borrowing and start fixing and completing those in finished work left by Peter O`Neill previous government.

Comments are closed.