The National, Wednesday 21st December 2011
THE constitutional amendment Bill on the Sovereign Wealth Fund received absolute support of parliament yesterday.
The SWF Bill will allow for the management of the overflow of future revenues and cash flow derived from the huge resource boom.
An absolute majority of 73 members voted for the Bill when it when through the first vote of the enabling Bill.
The O’Neill government had 70 members on the floor of parliament while a few did not attend.
However three members of the Somare regime voted for the Bill giving the necessary support to pass it.
Prime Minister Peter O’Neill said the Bill was important for the nation as the laws would control the use of funds received from the extractive industries in the country.
He said the Bill would control the management of the funds and allow for on-shore and off-shore investment especially revenues derived from the LNG project.
It will consist of a stabilisation and a development fund which will see part of the funds used for development while the other is held in investment offshore for future use.
The funds will be overseen by an independent board based in the country but will allow fund investment managers to manage the funds on behalf of the government.