Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698056702301.pdf (Papua New Guinea)
EIGHTH DAY _____________________________ Friday 2 December 2022 DRAFT HANSARD _____________________________ Subject Page No.
MOTION BY LEAVE ......................................................................................................................................... 1 SUSPENSION OF STANDING ORDERS – REARRANGEMENT OF BUSINESS ........................................... 2 BUDGET RESPONSE – STATEMENT BY THE DEPUTY OPPOSITION LEADER ........................................ 2 MOTION BY LEAVE ....................................................................................................................................... 24 SUSPENSION OF STANDING ORDERS – REARRANGEMENT OF BUSINESS ......................................... 24 APPROPRIATION (GENERAL PUBLIC SERVICES EXPENDITURE 2023) .................................................. 77 BILL 2022 ........................................................................................................................................................ 77 Second Reading ......................................................................................................................................... 77 Message From The Governor-General ...................................................................................................... 77 Third Reading ............................................................................................................................................. 78 APPROPRIATION (NATIONAL PARLIAMENT 2023) BILL 2022 ................................................................... 80 Second Reading ......................................................................................................................................... 80 Message from the Governor-General ......................................................................................................... 80 Third Reading ............................................................................................................................................. 80 APPROPRIATION (JUDICIARY SERVICES 2023) BILL 2022 ..................................................................... 81 Second Reading ......................................................................................................................................... 81 Message From The Governor-General ...................................................................................................... 81 Third Reading ............................................................................................................................................. 82 NON-TAX REVENUE ADMINISTRATION BILL 2022 ................................................................................... 82 Second Reading ......................................................................................................................................... 82 Message From The Governor-General ...................................................................................................... 83 Third Reading ............................................................................................................................................. 83 CUSTOMS TARIFF (2023 BUDGET) (AMENDMENT) BILL 2022 ................................................................ 84 Second Reading ......................................................................................................................................... 84 Message From The Governor-General ...................................................................................................... 84 Third Reading ............................................................................................................................................. 84 EXCISE TARIFF (2023 BUDGET) (AMENDMENT) BILL 2022 ..................................................................... 84 Second Reading ......................................................................................................................................... 84 Message From The Governor-General ...................................................................................................... 85 Third Reading ............................................................................................................................................. 85 INCOME TAX, DIVIDEND (WITHHOLDING) TAX AND INTEREST (WITHHOLDING) TAX RATES (2023 BUDGET) (AMENDMENT) BILL 2022 ........................................................................................................... 85 Second Reading ......................................................................................................................................... 85 Message From The Governor-General ...................................................................................................... 86 Third Reading ............................................................................................................................................. 86 INCOME TAX (SALARY AND WAGES) (RATES) (2023 BUDGET) (AMENDMENT) BILL 2022 ................. 86 Second Reading ......................................................................................................................................... 86 Message From The Governor-General ...................................................................................................... 87 Third Reading ............................................................................................................................................. 87 INCOME TAX (2023 BUDGET) (AMENDMENT) BILL 2022.......................................................................... 87 Second Reading ......................................................................................................................................... 87 Message From The Governor-General ...................................................................................................... 88 Third Reading ............................................................................................................................................. 88 CUSTOMS TARIFF (AMENDMENT) BILL 2022 ............................................................................................ 88 Second Reading ......................................................................................................................................... 88 Message From The Governor-General ...................................................................................................... 89 Third reading .............................................................................................................................................. 89 MOTION BY LEAVE ....................................................................................................................................... 89 SUSPENSION OF STANDING ORDERS – REARRANGEMENT OF BUSINESS PRESENTATION OF CIVIL AVIATION AMENDMENT BILL 2022 ............................................................................................................. 90 CIVIL AVIATION (AMENDMENT) BILL 2022 ................................................................................................ 90 First Reading .............................................................................................................................................. 90 Second Reading ......................................................................................................................................... 90 Third Reading ............................................................................................................................................. 91 ADJOURNMENT ............................................................................................................................................ 93 EIGHTH DAY Friday 2 December 2022 The Assistant Speaker (Mr Casmiro Aia) took the Chair at 10 a.m.
There being no quorum present, the Assistant Speaker stated that he would resume the Chair after the ringing of the Bells.

Sitting suspended.

The Speaker (Mr Job Pomat) took the Chair at 10.50 a.m., and invited the Governor of Central, Honourable Rufina Peter to say Prayers.

‘Almighty and sovereign God, creator of heaven and earth, and everything in between and beneath.

I acknowledge you as the God of Papua New Guinea.


I thank you, for you have appointed and anointed the leaders in this Chamber for such a time as this.

May your Holy Spirit shine the light of truth upon our Prime Minister, his Deputy Prime Minister, our Opposition Leader and his Deputy Opposition Leader, all the Governors and Open Members of this Parliament and all the people that we represent.
Help each one of us to strive always to model our leadership after death of your Son our Lord Jesus Christ and Saviour.

Amen’ MOTION BY LEAVE Mr RAINBO PAITA (Finschhafen-Minister for Finance and Implementation) – I ask leave of Parliament to move a motion without notice Leave granted.
1 SUSPENSION OF STANDING ORDERS – REARRANGEMENT OF BUSINESS Motion (by Mr Rainbo Paita) agreed to – That the so much of the Standing Orders be suspended as would prevent: (a) Orders of the days number 4, 5, 6, 7, 8, 9, 10, 11, and 12 Government business being called forthwith.

(b) The Opposition spokesman on Treasury replying into the 2023 Budget.

02/08 Mr Joseph Lelang – Point of Order!

Mr Speaker, the seat should be occupied by the Treasurer and I don’t understand why another Minister is sitting there.
I think the Treasurer should be seated there.

Mr SPEAKER – Honourable Opposition Leader, your point of order is acknowledged, but since the Minister for Treasury is not here the Prime Minister has allowed the Minister to occupy that seat for the time being so please proceed with your statement.
BUDGET RESPONSE – STATEMENT BY THE DEPUTY OPPOSITION LEADER Mr DOUGLAS TOMURIESA (Kiriwina-Goodenough) – Mr Speaker, first of all, I want to say good morning to the people of Papua New Guinea and unfortunately the Treasurer is not here to listen to our response to the Budget.

I believe that it is Parliamentary Convention that important bills presented by ministers should be present to take note of contributions coming from the Opposition.
Unfortunately, he is not here, but the Prime Minister is present; he is the Chief Minister and it is in his wise decision to allow another senior Minister to sit in place of the Treasurer to hear us out today.

Mr Speaker, today after my speech, we will hear a lot of negative and positive from both sides to support or not to support the Budget.

Mr Speaker, at the outset, I would firstly like to speak well of the Budget.

I speak blessings of our almighty God upon this Budget.
I would like to speak goodness, blessings 2 and well of this Budget that it will go well for the people of Papua New Guinea.

The purpose of money plans is for the goodness of the people of this nation and so at the onset, on behalf of the Opposition I would like to speak Gods blessings upon this Budget because with our God leading us and being at the forefront of our plans we will fail.

That’s my opening remarks.


03/08 Mr Speaker, allow me to highlight and debate on the Treasurer’s budget presentation on Tuesday.

Basically, I will try my best to respond to most of the agendas or issues that the Treasurer has come up with and allow us the imminent members of the Opposition also to contribute like the Government in this budget speech today.
I welcome this opportunity to place on record on behalf of the Opposition and the nine million silent and struggling Papua New Guineans, our response to the 2023 National Budget that was tabled by the Treasurer, Honourable Ian Ling-Stuckey, on Tuesday.

As most Honourable Members would have realized, the numbers contained in the Budget are very rubbery and makes it very dubiously and uncertain.
Mr Speaker, the budget is the most important annual responsibility of any government as it lists all priority programs and activities that the government seeks to under-take over the course of 12 months of the following year.

The effectiveness of the governments programs and its performance will of course depend on the out turn report of the end of the year.
However, most importantly the budget must be truthful and unambiguous to provide confidence in the economy and support of the private sector in this country.

It is very important Mr Speaker, that the Budget must be properly framed and if it is implemented successfully, our people will benefit.

At this very important juncture our young country and I want to remind honourable members of the House that as leaders our people are watching us very closely.
I also remind the Honourable Members of the House that whatever we do or say is being observed and will be long remembered by our people.

It is therefore important that we perform our duties as their representatives, with care and consideration of the goals set by the founding fathers our nation.

One of our duties as Parliamentarians is to scrutinize very carefully every bill including the budget bill that the Executive Arm of government wants to pass on the Floor of this Parliament.
We on this side of this House take our responsibilities very seriously Mr Speaker.

We will support the government in the greater interest of the nation when it 3 matters but at the same time, we will spare no effort in pointing out any flaws or unfairness in the government’s legislative program and its implementation of the government’s policies to make certain that the government treats all our communities evenly and fairly.
Whilst I raise, I praise the Honourable Treasurer and also the Minister for Planning for ensuring that bureaucrats compiled the 2023 National Budget paper or money plan.

Which I must stress that the two ministers as part of the entire Marape/Rosso Government are fully accountable for the outcome of this budget.

The government is also accountable for how the public servants apply the funds and implement the public programs and projects approved for funding under the national budget.
04/07 At the same time, Mr Speaker, I wish to inform the House of the displeasure expressed by the Members of the Parliamentary Committee on Plans and Estimates, which I am a committee member of; at the way it was treated by the government officials.

I can testify that the Committee was only provided incomplete budget information just a day before the Budget was tabled on the Floor of Parliament by the Treasurer.

The Committee received no information on the PIP component of the 2023 Budget.
Also officers of the Department of National Planning who are responsible for the PIP budget, and the staffs of the NSO who are responsible for the National Accounts Statistics were not present to brief the committee members on the status of the National Account Statistics for any meaningful consultation to occur as is required under Section 209 of the Constitution, the absence of fuller information and the failure of advisers to appear before the Committee is a mockery of the Parliamentary Committee and such treatment of a Parliamentary Committee is an affront not only the Committee Members but to the entire Legislative Arm of Government.
Section 209 of the Constitution, the Parliamentary Committee on Plans and Estimates must be consulted prior to the finalization of the Budget, in this case, the Committee never received any meaningful information from the Department of Finance and the Department of the Treasury in order to contribute meaningfully to the budget process.

In any case, they had certainly already finalized the budget before they presented themselves before the Committee.
Mr SPEAKER – Honourable Shadow Minister for Treasury, I will stop you here, to announce that the Treasurer has just arrived so rightfully he can go sit in his Chair.

4 Honorable Shadow Minister for Treasury, you can continue.

Mr DOUGLAS TOMURIESA – Good morning, Mr Treasurer.


In the future for any meaningful consultation to occur, I suggest the Committee must be briefed at least two weeks before the Budget is due to be presented on the Floor of Parliament, to allow for Members of the Committee to make meaningful contributions to the National Budget and make certain that the Budget addresses the important needs of our diverse peoples and our country.
Mr Speaker, we on this side of the House have the responsibility to always remind the Government that PNG must always live within its means.

That means, that the Government should only commit the country to priority expenditures, what it can really afford instead of trying to be that imaginary richest black nation on the planet.
We don't want PNG to emulate the Caribbean country of Haiti, which was once the richest black nation when it declared independence from France in 1804, over two hundred years ago but is now one of the poorest black nations in the world.
Unfortunately, for a Treasurer who does not miss a chance to endlessly remind the Honourable Members of the House that his Budget is a responsible one, this Budget fails to live up to even that simple claim, Mr Speaker, and honourable members, no doubt many of you will have noticed how this showman of a treasurer has on numerous times tried to hoodwink Parliament with his continuous attribute of being a responsible Treasurer.
Mr. Speaker when one takes a closer look at the Treasurer's Budget Speech delivered after several postponements, one cannot fail to realize that he has been deliberately and repeatedly misleading the House.
05/08 For example, let me elaborate, in the last paragraph of the very first page of his speech, the Treasurer states that PNG has achieved – yes, achieved in the past tense, for the first time ever, three years of consecutive economic growth in real GDP exceeding four per cent, namely his claim that the real GDP growth rate of 4.8 per cent being recorded in 2021, 4.5 per cent in 2022 and 4.6 per cent in 2023.
Mr Speaker, the only problem why we cannot believe the Treasurer’s claim, is because he is stating numbers that are not in but are merely projections or estimates.

Talk about counting the chickens before they hatch.

The latest GDP figures in the official 5 National Accounts Statistics published by the NSO, were only published last month and are only up to 2020.
The Treasurer cannot feign ignorance of the official statistics because the same figures are featured in table 1 of page 146 of volume one, of the Treasurer’s 2023 Budget Papers.

Do the honourable members realized that the 2023 Budget documents say; planned expenditure of K39 million whereas the Treasurer in his speech says; the expenditure is K24 billion?

How can Parliament trust the Treasurer’s words that this is a responsible Budget?
Mr Speaker, I don’t intend to dwell on every false claim that the Treasurer is making in the Budget, as they are all plain to see by any discerning reader.
What is worse about the Budget, is that the Government is counting on the naivety of the members of the government side to blindly pass this very dubious Budget, which by the look of it, is only good for six months, when one realises that a number of the important policies embedded in the supporting Budget Bills are only for six months’ duration, Mr Speaker, the Honourable members of the House will have realized that on paragraph two of page 14 of his speech, the Treasurer makes it very clear that the Government is unsure of his Budget and the Government is likely to push some of the listed expenditures back into 2024, even after receiving Parliamentary approval in the 2023 Budget.
That, fellow members, is just irresponsible for the Government to get approval for expenditure in one year and only knowing too well that it cannot afford such expenditures, which are then deferred to the following year.

In any case, the Treasurer is being deliberately dubious because he didn’t even bother to identify the programs that are likely to be affected, and is concealing these expenditures from the honourable members.
Mr Speaker, why is the Government claiming record revenue collections this year when it cannot complete this year’s education subsidy to our schools?

Why are the soldiers going hungry with all their mess halls around the country being closed?

Why are the outstanding amounts for DSIP and PSIP yet to be fully paid?

Why were the important and key government offices, including that of the Departments of Treasury, Finance and National Planning being locked out during the crucial Budget preparation stage?
Mr. Speaker, the honourable members of the House must also question the Treasurer’s claims that the country is awash with foreign exchange and that it has K13 billion worth of foreign exchange.

Whereas just as everyone knows, in recent days and years, large multi- national companies like Puma, Coca Cola and Digicel have been complaining about being unable to repatriate their profits.
6 06/08 Mr Speaker, such misleading statements by the Treasurer, Mr Speaker do not bode well for a Government that should be seeking to assure foreign investors that it is safe for them to invest in PNG, especially new investors who are contemplating coming to invest in PNG as well as for those already here and are considering further consolidation of their business operations in the country.
Why are our people being told by the motor vehicle spare parts dealers that they cannot order spare parts for vehicles because their bank tells them there is no foreign exchange?
Just last week honourable members will recall Sir Mahesh Patel of the CPL Group, the largest retail chain in the country, calling upon the Prime Minister and the Government to make available foreign exchange because it is approaching Christmas and companies like CPL needed to import goods in time for their customers' Christmas shopping needs.
Do the honourable Members realise that the Bank of PNG's action in limiting the release of foreign exchange is encouraging some exporters to keep the proceeds of their export sales overseas since PNG can no longer be trusted?

Do the honourable Members realize that following the Governments futile attempt to introduce the additional company tax on BSP and Digicel, the Government now wants to penalise them by imposing a 45 per cent tax rate of tax on all the commercial banks?
Do the honourable members also realise that it was the heavy borrowing by the government on the domestic banks that made them rich at the first place?

Are the honourable Members aware that the Government owes over K14 billion in outstanding Treasury Bills and most of that debt are held by the commercial banks or the superannuation funds who are the major shareholders of the two largest commercial banks, BSP and Kina Bank?
Mr Speaker, if the Treasurer is looking for lucrative businesses which make super profits to which to apply the additional company tax, I suggest the Treasurer also apply his super tax to the real estate businesses and the pokies businesses in this country, some of which the Treasurer himself owns.
Do the honourable Members realise that the government's tendency for borrowing from the domestic banks soaks up all the spare liquidity in the banking system such that it increases the costs of borrowing and also crowds out our local SMEs thus making it harder for them to borrow from the commercial banks?
7 Do the honourable members realise that the Treasurer has been hacking the K590 million of the so-called cost of living relief assistance package well before the elections in March yet he had continuously failed to bring the enabling legislations to the Floor of Parliament for passage?

Was all that a real and serious government policy to assist our ordinary people or just plain election gimmick or promise to shore up numbers for the ruling PANGU Party?
Do the honourable members realize that the K590 million so-called relief package is so inadequate that it translates to a mere one-off amount of K65 per person per year or a very meaningless 18 toea per person per day when divided by the nine million people of this Papua New Guinea?

07/08 How is the Government going to ensure that this amount will trickle down to the ordinary villages?
The Government’s so called relief of housing assistance package is not helping families instead it is pushing the escalating law and order issues in the country.

Mr Speaker as we speak, prices of goods still remain high.

The basic food items such as, ox and palm, sugar, rice, flour, even fuel costs still remain high.
Do the honorable members realize that the majority of our people are unlikely to have a share of any benefit from this so called Government’s intervention and that the money could have been better utilized to ensure adequate supply of life saving medicines to all our rural aid posts and health centres.
Do the honorable members realize that instead of tackling problems head on using the existence and powers of the State, the Government is belittling the role of Parliament by asking Parliament to pass new laws that are likely to be later reviewed just like the abolishing and then reinstatement of the Chief Secretary Act Similarly, the Government is going the round-about way when it is asking Parliament to pass the Non-Tax Revenue Administration Bill as part of the 2023 Budget so that it can impose its will upon the Statutory Bodies and the SOEs.
Mr Speaker, is the Government now admitting that it does not know how to deal with its own subsidiaries.

With its proposed Non-Tax Revenue Bill, isn't the Government just broadcasting its own incompetence in dealing with these organizations?

Mr Speaker, take the revenues that National Fisheries Authority is collecting from licencing fees from the commercial fishing companies for example, this revenue is originally derived from a tax so why now treat it as a non-tax revenue under the proposed new bill.
8 By right the state should receive all revenues from licensing of companies licenced to harvest the nation's vast fisheries resources.

Just as all the log export tax revenue collected by Customs from the forestry industry are directly deposited into the Consolidated Revenue Fund, all fisheries revenues must also be paid into the Consolidated Revenue Fund instead of being collected and kept by the NFA.
The proper way to do that is for the Government to simply amend the Fisheries Act instead of listening to the lazy public servants and coming up with this crazy Non-Tax Revenue Bill which the Supreme Court is likely to later rule to be unconstitutional just as it did with Public Monies (Regularization) Act 2018.

Mr Belden Namah – Point of Order!

Mr Speaker, the shadow minister cannot be preempting the Supreme Court decision on various legislations that are to be passed on the Floor of Parliament.
Thank you, Mr Speaker.

Mr SPEAKER – Honourable Minister for Treasury, the point of order by the Honorable Member for Vanimo Green is in order.

You are preempting something that is not happening.

You may continue your response.

08/08 Mr DOUGLAS TOMURIESA – I think the precedent has been set and as far as the SOEs are concerned, their boards are appointed by the Government and the government has the power to deal with them without the need for enacting the non-tax revenue bill.
In any case most of the SOEs are still dependent upon the state for their financing and will continue to do so for the forcible future, apart from the Kumul Petroleum Holdings; it is a must that all SOEs are flushed with cash and can be treated as cash cows because, sooner or later they will each face severe cash-flow shortages if they are summarily forced to surrender their cash flows under the non-tax revenue bill to the department of finance.
Mr Speaker, in agriculture, for all of the emphasis on agriculture and the creation of four new ministries as its key sector to spearhead sustainability in PNG; do the MPs realize that the government has allocated an additional K79 million to the agriculture sector in the 2023 Budget.
The whole country has high hopes that finally the agriculture sector upon which over 90 per cent of our people depend upon would gain the recognition and attention it deserves and expect that at least K1 billion would be allocated to the sector annually, instead of perpetuating the colonial era endangered labour scheme indirectly, Australia’s so-called 9 seasonal labour scheme the government could do more for the country by investing more in domestic agriculture.
If the government is not careful the endangered laborer’s working for Australian farms will unwittingly shift competitive advantage from Papua New Guinea to Australia farms which are still exporting oranges and vegetables to supermarkets in Papua New Guinea.

So, what is really wrong with the country’s economy?

Our people demand to know.


And fellow honourable Members, despite of which side of the House we are on., it is our collective duty and responsibility in Parliament to keep the executive arm of the government honest.

There we go honourable Members I cannot tell you on how you should vote but you must exercise your conscience, whether you want to continue to support the government that says one thing and does the opposite?
If you choose to remain silent and proceed to pass the Budget and the related bills without debate’ you would have failed in your duties as Members of Parliament and who you would have failed?

The people who elected you into office.

Mr Speaker, the Treasurer has laid bare in this deceitful budget that the IMF will be in the country next year.

That by itself is an admission that something is not right.
The IMF is not like the World Bank or ADB who funds specific development projects, such as roads, agriculture investments or health programs.

The IMF only ever intervenes when the fundamentals of the country’s economy are in dire need.

They normally do so only after the country agrees to their very stringent austerity conditions.
Mr Speaker, before the Treasurer surrenders our sovereignty and our country to IMF; as Members of Parliament we have a duty to act to correct the past mistakes of the Governments before it is too late.

Once the banks and the private sector lose confidence in our economy, our nation and our people, we are doomed as a country and we cannot continue to pretend that all is well.

Every responsible MP is ultimately responsible for the mistakes of the government.
If by our action or inaction that we allow the Budget to pass without proper debates.

09/08 Mr Speaker, are the honourable members of the Government side aware that the Secretary for National Planning very recently was locked up just on Tuesday because his Department is still holding onto a total of K1.8 billion in unissued warrants from its 10 development budget?

Why can't the Government use these public funds to complete the outstanding funding for our schools and our District roads?
But what has allowed this situation to happen?

Why is the Government withholding money when our government services are screaming for funding?

Is that what a responsible Government does?

Surely something doesn’t smell right Mr Speaker, at least we on this side of the House have pointed out some of the major deficiencies of the Budget that is as expected of a responsible Opposition.
Do the Members of the House realize that the entire national revenue of K19.6 billion expected to be raised by the Government in the 2023 Budget, K13.8 billion is to cover the cost of running the government leaving just K5.8 billion for debt servicing and PIP, etc.

Do the Members of the House realise that the Government has been borrowing just to repay existing debts and will continue to do so forever without any end in sight according to the projections of the Government's Budget?
Do the Members realize that by increasing the tax on forestry by 20 per cent from the already extremely high rate of 50 per cent to 70 per cent will instantly kill off the forest industry?

Do the Members of the House realize that the exports of logs only occur in the coastal regions and the logging activities provide the lifeline of economic activity for many coastal areas of the country because they do not have benefit sharing agreements as the other resource owners have for LNG?
Do the MPs realise that the lies being perpetrated by the Government that formal employment has been increasing when it had in fact declined by more than 20 per cent since 2014 according to the official figures in the Budget with forestry recording a minus 17 per cent employment growth in 2021 because of the measures we have taken in this House?

Honourable Members, why is the Government too shy to admit that it is dependent on log exports for as a very large source of its revenue of K400 million annually?
My question to the Treasurer is why disguise the log export tax in the Budget just plainly as "export tax" instead of being more specific and just to refer to it as log export tax since there is no other industry in Papua New Guinea that is subject to any export tax?
The only plausible explanation as to why the government is behaving in this way is to probably to appease the activist of NGOs, who have been tarnishing the logging industry in PNG for decades and the false accusations that the industry does not pay any tax at all, when the industry in fact pays the highest level of taxes in Papua New Guinea.
Whilst all the other industries have businesses in Papua New Guinea are taxed on net profit basis, the logging 11 industry being taxed on a gross sales basis is paying disproportionately paying more taxes than any other industry in the country.
Comparatively, a publication by the NRI in 2004, said then that the forest industry proportionately pays more taxes amounting to 30 per cent at the time but soon will be increased to 70 per cent of their gross revenue when compared to the mining and petroleum industries which are paying an equivalent of only 12 per cent of their gross sales values as taxes to the State.

So as we can see from the comparison there is no fairness in the industries.
10/08 Do the honourable members realize that over the years the forest resource owners only receive a very paltry royalty whereas the government receives the largest benefits from the forestry industry; and that all forest resource owners in PNG collectively share less than K100 million annually in royalty as well as the other benefits from community service obligations for their forest resources whereas the state receives over K400 million annually in log export tax?
The Government could still achieve its objectives for the forestry industry by diverting some of these tax revenues to increasing royalties to the forest resource owners and reducing the tax on the industry.

Do the honourable members realize that the forest resource owners are all located in the coastal provinces?
They have no LNG or mining incomes and are the ones who will pay the brunt of the misguided tax on forestry when the industry is forced to shut down by the Treasurer's exorbitant taxes in the Budget?

Do the honourable members realize that PNG being a net saver of carbon and other greenhouse gas emissions is eligible to claim exemption on greenhouse gas levies?
So why does the Government plan to collect the additional 20 percent tax on logging to support a UNDP biodiversity fund when PNG is in fact eligible to collect money from the International Green Climate Fund; carbon money, based on its existing low net saving levels of carbon and other greenhouse gases emissions?
Do the honourable members realise that the additional 20 per cent tax on log exports is contrary to the Government's objective for encouraging more downstream processing in the timber industry because the major wood processing factories in the country such as Turama in Gulf Province, Panawaka in Western Province, Madang Timbers in Madang Province, Vanimo Timbers in West Sepik Province, Oro Woods in Northern Province and Saban Enterprise in Milne Bay Province have already closed down and that the PNG Forest Products plywood factory in Bulolo will be the next to shut down its doors?
12 Is this another application of another variation of the Marape manifesto of "short- term pain for long-term again?

Whatever it is, Mr Speaker, it remains a very fuzzy Executive Government’s logic.

Are the honourable members aware that the logging industry has already laid off almost 17,000 workers since 2019 when the Government first raised the logging export tax to 50 per cent of the f.o.b.

price?

Next week the forest industry says another 3,000 workers will be laid off.
So how will the Government absorb all these unemployed workers and give them meaningful employment so they can look after their families?

Is this your Christmas present to our already struggling families and citizens?

Honourable Members, the 2023 Budget does not show where the Prime Minister's much vaunted K200 billion economy will emerge from.

The budget papers do not show it and there is no government strategy to guide it.
Mr Speaker, the undisciplined tendency by the Government to continuously borrow year after year to finance the Budget is to say the least is unsustainable.

The Government's past practice of bulldozing the Budget through Parliament without debate reeked of a dictatorial tendency.
The amending of the Fiscal Responsibility Act as part of the Budget process without input by the Honourable Members of the House is contemptuous of the elected representatives of the people and an affront to the budding democracy in this country.

11/08 The FRA Act was enacted by Parliament in 2006 to rein in government expenditure by limiting government borrowings.

The Government must adhere to the FRA and refrain from unnecessary borrowings simply because the country cannot afford any more borrowings.
Our analysis of the 2022 Budget indicates that the Government is simply living beyond its means, by raising the debt to GDP ratio from 34 per cent to 60 per cent.

The Government has weakened the solid foundation of the PING economy laid by our founding fathers following Independence.
Although PNG has met all its debt servicing to date without defaulting, this amazing feat cannot last for ever if the Government continues with its reckless public expenditures, We on this side of the House are committed to the country and its people and are willing to assist the Government to pass the Budget if it is responsible and will not bankrupt the country 13 The priorities of the country as we in the Opposition see it to be are as follows; (l) Law and Order, and thank you for placing great emphasis on law and order, (2) Education, (3) Health, and; (4) Agriculture, put some more money into agriculture whatever has been allocated is not enough.
You have four new ministries so allocate more funds into them, thank you.

The Government should cut back on programs that will not cost lives or deny education for our children.

We must ensure the maintenance of good order, abidance by the rule of the law and peace throughout the country.
Immediately, the Government can achieve these objectives by cutting back on new infrastructure developments, and a reduction in the administrative costs under the recurrent budget, one major issue we discussed yesterday was how government departments had lots of cars but we are still hiring cars.

If you check the records you will be surprised that hiring of cars mounts up to millions of kinas.
An analysis of the 2023 Budget indicates that; as a country the Government can raise only K19.5 billion in revenues (including grants), but its expenditure stands at K39.1 billion that is our total projected revenue amount to just 49.8 per cent of the governments’ proposed expenditure level.
When one considers that it will cost K13.9 billion to run the entire government system, we only have K5.6 billion available for other things like debt servicing, repairs and maintenance to the existing public assets, new capital investment and etc.

For the 2023 Budget, the government plans again to borrow another K4 billion to finance its expenditures which is not right.

This Budget has major flaws that needs to be addressed and fixed immediately.
Mr Speaker, to conclude what is required of this budget is prudent budget management and strict adhering to strict budget expenditure framework and strong sound policy.

We know that the big slice of the budget is in the Prime Minister’s office and that of the National Planning Ministers office totalling just under K1 billion and that needs close and proper scrutiny.

Mr Speaker, we also know that funds earmarked in budgets must be released on timely basis and not later in the year like the TFF.
12/08 14 Most times the students go ahead and then we release the TFF to the school.

The board members and teachers are going to be on holiday and when we come back to school the TFF funds will not be there anymore.

The PIP program as announced by the Secretary of Planning is that K1.8 million will be in issued warrants that are being moved within the next ten days.

How can we move so much money within a short period of time?

Mr Speaker, is this our last resort?


Has the Government run short of options and ideas to raise the much-needed revenue because of some very important oversights in the last past three years?

The government has been talking about the Pogera mine, Wafi-Golpu, and P’nyang as low-lying fruits.

Now, when can these fruits be picked and harvested so that employment in this country can begin to improve, and the economy and revenue can be strengthened?
Mr Speaker, before I conclude, I have just spoken about the low-lying fruits and I hope that the Prime Minister and his Executive Government can seriously consider Wafi- Golpu.

P’nyang and Porgera, encourage our bureaucrats to fast-track these three projects for the benefit of our nation.

PMIZ can be included.

Mr Speaker, I would like to conclude with a parable; back at home, there was an old man who had planted a lot of betel nut trees behind in his backyard.
There was one tree that grew not to its full height but started bearing betel nuts while the others grew to full height before bearing.

One night the old man and his children were sleeping when thieves went to steal from his backyard.

They did not steal from the tall trees but from the short tree.

In the morning when the children woke up and realized that their betel nuts were stolen, they decided to go to the village and find out who stole from them.
But, their father called them back and asked them what was the matter.

They told him about the stealing from the back yard and the father replied, “it wasn’t the fault of the person who came and stole from our backyard, it is the short betel nuts trees fault for bearing fruit before reaching full growth”.

We have to be very careful about how we address the low-lying fruits.

This bank fee that we have introduced up to 45 per cent makes us the second nation to introduce that, have we run short of options?
Mr Speaker, this is our response from the Opposition, and right from the onset, I said that with the guidance and leadership of our good Lord as Papua New Guinea is a confessing Christian country, I speak well of the Budget and I look forward in seeing this Budget be implemented for the wellbeing of nine million plus people of Papua New Guinea.

God bless Papua New Guinea.

15 Thank you, Mr Speaker.


Mr JOSEPH YOPYYOPY (Wosera-Gawi-Chairman-Plans & Estimates Committee) – Mr Speaker, I rise to present the views, observations, and recommendations in relation to the 2023 Budget of the Permanent Parliamentary Committee on Plans and Estimates.

Mr Speaker, this committee is made up of both the Opposition and Government members.
And as part of its consultations, the committee had a briefing with a team representing the Department Treasury, earlier this week, after three consecutive deferrals.

The committee, unfortunately, regrets to inform this Honourable House that no representative from the Department of National Planning & Finance attended this briefing despite being requested.
13/08 In the future, the committee would prefer to meet with relevant department representatives, along with their ministers during these kind of briefings.

I would like to sincerely thank the following members; Honourable Johnson Wapunai, Honourable Douglas Tomuriesa, Honourable Wai Rapa, Honourable Simon Kaiwi and Honourable Benjamin Mul, for their contributions and participation.
The committee would like to extend our gratitude to the team from the Treasury Department, who were able to take us through the Budget, which we consider to be satisfactory with meaningful exchanges.

The Committee acknowledges, that the Budget would not have been possible without the hard-working public servants, who work tirelessly to bring this all together.

We appreciate you all.


Purpose and importance of the Committee All Permanent Parliamentary Committees are constitutionally mandated and subsequently governed by constitutional provisions, such as the provision related to the annual budget in Section 209, sub-section 3 of the Constitution that reads; ‘Before any Budget or appropriation is prepared for the submission to the Parliament, the National Executive Council shall consult with any appropriate Permanent Parliamentary Committees.
But this sub-section, does not confer any right or impose any duty of consultation after the initial stages of the preparation of the Budget or appropriations.’ 16 The Budget is a government's most important money plan, which captures its spending strategy in a fiscal year.

This committee considers that it should provide the necessary oversight and to be part of the Budget formulation, as a measure of the checks and balances in the system.
The committee is of the opinion that Section 209, sub-section 3, also gives the opportunity to engage and contribute directly to the Budget formulation during the consultations.

The committee acknowledges, that there needs to be more interactions to make the consultations more meaningful, as it is intended under Section 52 of the Constitution.
However, we also acknowledge that the Plans and Estimates Committee's engagement was minimal during the Budget processes in the past years, but we are hopeful the Budget consultations with this committee will improve next year and over the course of this Parliament.

This committee encourages the government and everyone on this Floor to build an effective and robust committee system which can provide the necessary oversight.
Politicians will come and go; governments will be formed and reformed, but the systems we put in place now, will reflect our long-term commitment to the wellbeing of our people.

Committee overview of the Budget This Committee understands the impact of global crisis; particularly the war in Ukraine, that significantly pushed up the global energy prices which has a devastating effect to global commodity supplies.
The effects of which are now being felt locally, as we see a rapid increase in the cost of basic goods and services.

Against such a background, the Budget is being formulated.

14/08 The Committee considers and applauds the continuation of the governments focus on core principles such as health, education, law and order and Connect PNG program.

However, like any other plan, there is bound to be challenges, there will be shortfalls and there will be setbacks.
We must all work together, from both sides of the House, with openness and consistent dialogue to make the best decisions for our people.

Revenue Mr Assistant Speaker, the committee noted that the projected total revenue and grants for 2023 will be K19.582 billion which is 17.3 per cent of the total GDP.

Projected increase in nontax revenue will be from dividends and statutory transfers.

17 The committee acknowledges the new revenue measures set by the government.
We commend the government for increasing the personal income tax-free threshold to K20,000 for the year 2023.

The committee commends the government for removing excise duties on fuel products for six months starting in January 2023.

However, to alleviate and moderate the effect of volatile global commodity prices, an emphasis on building our capabilities on downstream processing of our oil and gas is highly recommended by the committee.
The intention to revise dividend policy is welcomed, additionally all monies held on by state-owned enterprises should be remitted to the treasury; these changes should be accompanied with legislative measures.

The committee is very concerned about the introduction of a 45 per cent corporate income tax on licenced banks.

We encourage the government to speak to banks and to see if this is feasible.
These are commercial banks and they will always protect their shareholders interest, usually, by passing this new cost of doing business to the customers.

The committee welcomes the introduction of a one-off 493 per cent increase on the excise duties for anti-social drinks to discourage alcohol consumption.

However, the imposition of taxes demerit goods causes escalation; homebrew will become cheaper, more prevalent and stronger.
We also noted the government's commitment to increase progressive export duty rates for unprocessed logs by 20 per cent to discourage export of these logs.

This is an active measure to support United Nations Biodiversity and Climate Trust Fund for Papua New Guinea.

We urge the government to proceed cautiously as we do not intend to tax this industry to death.

The government must be critical when introducing these measures to weigh the pros and cons, identify the benefits and discuss the gains or loses.
National Parliament Mr Assistant Speaker, the committee notes an increase of the National Parliament Budget appropriation to K221 million in 2023.

The committee appreciates the government's commitment to developments within the parliamentary precinct and the improvements in the Parliamentary Services.
Being one of the Appropriation Bills presented to Parliament, the committee requests greater consultation right from the beginning to ensure the Parliamentary Services are adequately funded so that it functions effectively and efficiently to meets its obligations.

This includes the committee systems and the Members Remuneration Determination.

18 The committee has noted that most parliamentary committees are incapable of functioning to their full capacity because of funding constraints.
Past Chairmen have called for adequate funding for the parliamentary committees to no avail.

We recommend a sufficient increase in funding for future budgets.

15/08 The committee notes that the education sector is receiving the fourth highest component of the 2023 Budget estimated at 1,649.5 million.

Sadly, Mr Speaker, there is no emphasis on the quality of education.

We noted that the entire budget is focusing on quantity over quality.
The Marape-Rosso Government which I am part of should treat education seriously and make education one of its signature programs like the Connect PNG program.

In doing so the focus on quality over quantity of education must be treated as the number one priority in all education programs.

In my term as Education Minister, I focused more on quality over quantity by introducing new policies such the Early Childhood Education policy yet it has been shelved in favour of third level education.
Early childhood education is an area where we should immediately allocate funding and start implementing the process.

Preparing a child at the early stages is important for our Education system.

The committee notes that the current budget puts the cart before the horse as primary education, particularly.

Early childhood education has not been treated as paramount; allowing a large quantity of low quality students to move through the system causing a bottle-neck that needs addressing.
The government now must cater for a huge number of dropouts through the various third levels education schemes.

For quality education, primary or early childhood education must remain the number one priority of any education programs.

An important area that has been neglected by all governments and must be treated equally important as others is the teachers welfare.

Many of us do criticize teachers and say all kinds of things against them to say that they are not working.
But being in the system, I’ve seen teachers sitting all night, while all of you are sleeping.

Teachers do not have rest and sometimes we don’t worry about their welfare, we don’t care how they live.

Let’s take NCD for example, many teachers are sleeping in the settlements and you expect them to prepare the lesson for our children in the classroom to go and teach the child properly in the classroom, No.

we have to consider somehow the teacher’s welfare must come into play.
19 The committee appreciates the higher education loan program, however, there has to be robust policy guidelines in place to ensure this undertaking is sustainable long-term, so more students can benefit from this policy.

Whilst at the same time we do not want parents to be overly dependent and students who benefited from this program are debt-ridden and unable to repay these loans.

The government should not give out loans if it cannot guarantee a return.
Misuse of funds by many school administrations is a real worry and, it would be wise to consider shutting down accounts of schools shortly after graduation to prevent this happening.

16/08 Mr Speaker, for health sector the committee notes that allocation made to this sector stands at K2, 335.3 million.
Key government priorities are to support increased health work force at all levels and sought timely medical drugs, supply deliveries, increase accessibility to health services, support medical research and improve health facilities.

The committee notes a substantial amount of the Health Budget of K236.31 million allocated to medical supplies procurement and distribution.

The committee feels there must be some form of oversight to this expenditure.
Public servants, individuals and businesses need to be accountable to parliament.

We need to see exactly how this money is being spent and if it is really going to its intended purposes.

This committee encourages the government to implement the recommendation set by the Public Accounts Committee in its report of 2020.
The committee recommends to this parliament to appoint a permanent parliamentary committee on health to look into matters not covered under the jurisdiction of the Public Accounts Committee.

Health is a big sector and there must be a parliamentary oversight.

We commend the government for funding the cancer unit at the Port Moresby General hospital, is long overdue.

The committee supports the government's commitment to work with churches to deliver the basic health services to remote parts of the country.
The committee commends and acknowledges the appropriations made to the Churches and appreciates the work of St. John Ambulance and we recommend its services to be established in all provinces and more government funding should be allocated in the future.

Mr Speaker for, the Community and Culture sector has received the lowest of the allocations at total of K 187.3 million.

Key policy priorities include, limiting gender-based violence, inclusiveness of special needs children and persons with disability.
20 The committee acknowledges the K7.1 million set aside for gender-based violence.

Although more violence is perpetrated towards women then in men, it doesn't mean men do not suffer domestic violence.

Those administering this allocation should look at both sides and avoid sexist discrimination.

17/08 The committee feels this sector has not been given the attention and recognition it deserves; future budgets should be more proactive.
This sector is widely viewed as being responsible for restoring morals and values to our people, strengthening of family unit and cultural identity, instilling Christian principles and prioritizing youths.
Economic Mr Speaker, the committee acknowledges the key government policies on economic sector including strengthening agriculture intervention, market accessibilities and SME interventions, addressing structural impediments, downstream processing and import substitutions, economic zones and enhancing trade and investments.
The committee noted the labour and mobility initiatives to engage women and disadvantaged groups to take advantage of the employment opportunities in Australia, New Zealand and elsewhere.

Mr Speaker, the committee commends the government's decision for setting aside the seven percent of the Sate Own Enterprise dividends.
We urge the government to expedite the establishment of the Sovereign Wealth Fund and ensure stringent measures are in place to safe guard those funds for the benefit of future generations.

Law and Justice Mr Speaker, Law and Justice has seen a significant increase in funding.

A key announcement was an increase in the police force from 5,000 to 8,400 personnel by 2027 and support prison rehabilitation programs at the domestic level in line with the key policy priorities.
On an external level policy priority include enhanced national security through strengthened PNG Defense Force’s Air, Land and Naval capabilities.

The biggest priority spending in this sector is an allocation of K389.74 million for the Department of Police.

We support this spending as long as there is a proper oversight at the government’s level.

We understand that law and order is a major threat to our wellbeing resulting in high cost of doing business and decline in economic growth.
We welcome government's priority 21 to boost our Defence Force.

The Defense Force should be adequately equipped to assist in State of Emergencies, natural disasters and callouts.

Administration Mr Speaker, a key government policy in this sector is for CACC to be sufficiently funded to support all other sectors and address overhead costs and retirements.

Highest priority spending in this area captured in the 2023 Budget is K480 million for the seven new districts.
These monies should be spread out and paid on instalments over the next three to four years instead of paying it outright.

This would allow for oversight and control to minimize misuse of funds.

Much can be done with less money as we have witnessed some local MPs using the limited DSIPs to develop their districts.

The committee commends and encourages the continuation of the Retirement Program of which K300 million has been allocated.
The Committee has noted an allocation of K100 million for Wafi-Golpu IDG which is commendable.

The Committee feels Wafi- Golpu and Porgera should be started as soon as practicable provided all requirements are satisfied.

18/08 Mr Speaker, the National Statics Office is an important office that should be encouraged to perform.

They can give us the data and figures we need to frame policies and plans.

There is a need to employ the competent people to increase performance in this office.
Transport Mr Speaker, the committee supports the Transport sector initiative to Connect PNG and opening economic corridors, the Transport sector will see a 52.8 per cent increase in the 2023 Budget with just over K2 billion allocated for capital development.

Provinces Mr Speaker, provincial administrators will have a bigger budget to work with, seeing their increased funding of K5.2 billion to fund a range of capital and operational provincial activities.
The committee supports these allocations to the provinces.

Powers should be decentralised to from Waigani to the provinces for better service delivery, as most of our people are scattered out throughout the provinces.

22 ABG Mr Speaker, the committee commends the priority items allocated for the ABG in 2023.

A K100 million restoration grant and the Kl00 million Prime Minister’s commitment to ABG, that will begin in 2023 and will continue for 10 years.
In conclusion, Mr Speaker, the committee has noted legacy issues of widespread failures and non-compliance by agencies with respect to providing expenditure reports, lack of project monitoring and non-payment of obligations, these are all issues that should be scrutinised.

The challenge continues to be on implementing, monitoring and evaluation framework to get real value for money The Government should consider using the parliamentary committees to oversee the use of these allocations.
This is the highest Budget in the history of our country, there has to be stringent oversight and control.

The government is the largest spender and employer in this economy; the biggest internal single influencer of inflation.

The committee also calls for fiscal disciplines, any commitments made should be provided for by the Budget.
Despite the state of uncertain global issues, a push for positive economic growth and smart economic management with an emphasis on economic development across resource and non-resource sectors will enhance our position.

Mr Speaker, these are our views on the 2023 National Budget.

The Permanent Parliamentary Committee on Plans and Estimates hopes that the Government considers them.

I commend this report to the Parliament.

Thank you, Mr Assistant Speaker.


19/08 Mr RAINBO PAITA (Finschhafen- Minister for Finance and Implementation) – Mr Assistant Speaker, I rise to contribute to the debate on the 2023 Budget.

But before I do, I would like to thank the three vice ministers who have been assisting the Treasurer: good Member for Chuave and Vice Minister for Planning, Member for Menyamya and Vice Minister for Treasury and Member for Okapa and Vice Minister for Finance who has been assisting in the budgetary process.
It would be improper of me not to acknowledge the support that they have given us as Ministers performing in this space of Treasury, Finance and Planning.

Mr Assistant Speaker, before I make my comments on the Budget and at the same time support our Treasurer in tabling this very important Budget.

I would like to just stress 23 on some of the points raised by the Shadow Minister for Treasury and Finance on Opposition side.
MOTION BY LEAVE Mr RAINBO PAITA (Finschhafen-Minister for Finance and Implementation) – I ask leave of Parliament to move a motion without notice.

Leave granted.

SUSPENSION OF STANDING ORDERS – REARRANGEMENT OF BUSINESS Motion (by Mr Rainbo Paita) agreed to – That so much of the Standing Orders be suspended as would prevent: (a) Parliament sitting beyond 1 p.m., this day, (b) Parliament adjourning a motion to be moved by a minister at any time.
Mr Assistant Speaker, if I can quickly add on to some of the comments made by the good spokesman for the Opposition on the Budget.

Mr Assistant Speaker, in the last three years we have been trying to be as honest and transparent as possible in the Budget.

As such the principle of transparency has always been maintained and much of this budget processing at such times when we table the budget on the Floor.
Mr Assistant Speaker, when the Prime Minister of a country statement is to be the ‘richest black Christian nation’.

And our good spokesman from Opposition says that it’s just an ‘imaginary motto’.

Through you Mr Assistant Speaker, if I can just say, we stand as a black nation and that is not imaginary.

We are already rich Mr Assistant Speaker, and we are a Christian country.

24 The Prime Minister is just stating what we are as a country already and the challenge is how do we get there.
If you look at some of the figures and facts that our good spokesman from the Opposition has stated that the government side is naive, that is not true.

We have qualified members elected by our people who are equally equipped and educated to be on this Floor debating the Budget.

I don’t think our government is thinking that all our members on this side are naïve in whatever positions they take on their political opinion.
Some of the issues on office lockout have been ongoing in the past, and as responsible government we are taking responsibilities by setting up programs and projects to curb these ongoing problems and yet you consider issues like office lockout as a constant issue.

Over the last ten years we have been paying K300 million in our operational budget.
But now the Government has made a clear distinction and policy for government to own office so the K300 million will be saved for five to ten years, to invest funds into law and order and other sectors that need this money.

The speech made by our good spokesman from Opposition was to pronounce blessing.

I don’t see a lot of blessings on this written speech but more about criticising the Budget.

But that’s the work of the Opposition and we take note of it.
Points such as bringing ‘back some of the reforms that we did as government, for instances, the position of the Chief Secretary, reforms like Non-Tax Revenue Bill.

Our good spokesman from the Opposition was part of the government that handed down the PMMR Act, which was ruled unconstitutional and redefined.

20/08 It is not a new legislation that this Government is proposing.

The intention of the Bill is clear in the Act that every member can pick out on the Floor.
Mr Speaker, my support and congratulation to our hardworking Treasurer and his department for the undying support that was given to ensure that we table our 2023 Budget.

Mr Speaker, we thank the people of Papua New Guinea for giving us the clear mandate to the ruling Government (PANGU) and we thank our coalition members as well for being able to come together and set the agendas of development that we want to see in the next five years.
As such, what you’ve seen in the Budget is an amalgamation of all our collective views and coalition partners in this government to see what we want to see in the next five 25 years.

It is not just an agenda by PANGU Party.

It is an agenda by collective minds on this side of the House to present to us the money plan for the next five years.

Mr Speaker, this Budget focuses more on rural development.
Many of our people are still unlocked in places where there is no road link and other basic government services have not reached them.

If you go through the budget allocations, some of the allocations are to unlock the people that we find in places like; Mount Bosavi, Telefomin, Kaintiba, Menyamya, Aseki, Kandrian-Gloucester and Karamui.

These are places that we want to unlock through this program so that everyone can come to the table and have a fair opportunity to contribute to the nation’s building.
Mr Speaker, the theme of the Budget is “Growing the Economy”.

If you saw the numbers on the paper that was circulated by my department, it was for the people to see, but I will look at it.

Our Budget captures much of the dreams of our people in the rural areas.

As you can see, major allocations have been given to provinces and districts so that we can work together collectively.
In the past, much of these programs have been captured and kept in major departments like; Department of Works, Planning, Health and others.

Now, we have centralised those funding in provinces and districts.

So, you will see that all of us seated here have been allocated a fare piece of the cake in those provincial allocations, including the shadow spokesman of the Opposition.
Mr Speaker, I will not get into the numbers that the Treasure has presented, but I want to talk about the major PIP programs and the capital Budget we have for 2023.

Mr Speaker, I want to highlight to the House the major initiatives of the Government which we are trying to undertake, see and place the interventions we want to make in all the sectors.
The Marape-Rosso government has made a deliberate and calculated decision to improve 20 years Connect PNG Program that has been running under the Department of Works.

The initiative of this program is to connect PNG to 100 per cent in the next 20 years.

Basically, in the transport sector, which will see an investment of K1 billion every year for us to achieve the dream of connecting the entire country.

Mr Speaker, as we can see today, you cannot drive from Vanimo to Madang, Lae, Milne Bay, or wherever.
Our country is still in those pockets where we were kept in, so this Connect PNG Program is trying to unlock and connect the entire country.

The Connect PNG program is still a major focus for our Government.

Land Partnership Program 26 Mr Speaker, as you know, land is a major issue when it comes to development in our country.
Landowner issues as to which form of method we use in the utilisation of land, the Government has set aside a big amount of funding for us to partner with Lands Department in trying to enquire and partner with land mobilisation so investors, projects and anything that we want to do, State will utilise that program for us to go into that space under the Land Development Program.

The K150 million that we will do for next year and potential increase every year given the space of program that we want to do.
21/08 Special economic zones Under the newly created Ministry and Department of Industrial Trade and Investment, the Honourable Richard Maru will now spearhead basic and most special economic zones, feasibility studies and bringing in the investors.

He has done an incredible work in mobilising countries, and at the same time development partners to be able to support our initiative in downstream processing, especially economic zones and the PMIZ programs.
The EU special economic zones, the Vanimo and the Manus Free Trade Zone, are crucial programs that the government has already made the necessary legislations for and thus we need to do the technical studies.

Minister Richard Maru has brought to Cabinet a study, costing for us to expand and be created in the Budget money needed for that program next year.
Agriculture Mr Speaker, I commend our Government for creating four different ministries to deal with agriculture as a priority in terms of coffee, livestock, agriculture and oil palm.

As you can see, it is reflected in the Budget, ministries are not just created but are also allocated funding to be equally equipped for next year to start those reforms, as said by our Prime Minister and our Government.

SME Program Mr Speaker, our K200 million allocation for SME is still there.
I want to commend the Government for this SME Program.

The policy was done by the Department of Commerce and Industry and the Government gave the money to the banks.

The government stays away from it.

The banks create the facilitates and the products.

It is not dictated by the Prime Minister or the Minister for Commerce.

27 The banks have wished for affordable rates of the conditions that they have set are able to give in that space.
When our good Opposition spokesman says that we are not investing in the space of growing business, K200 million is a substantial amount of money to be invested into the banks.

Provincial and district infrastructure When we were elected, we created allocations for the things that we have noted and campaigned for in our districts, making it crucial for our members to be part of the nation building.
When you see district and provincial infrastructures, that funding allocation is to ensure that we support the annual K10 million DSIP.

This allocation partners with those districts and provinces also.

Mr Speaker, in the provincial and district health programs, we will be working with the Health Department through the guidance of the Health Minister to ensure that we invest in building up level-four standard hospitals and provincial hospitals.
You can see on the Budget, Central Provincial Hospital is brought on board for us to create a new hospital to help take the stress and strain from POMGH.

The hospital program is a crucial program that we are working on and that will be ministered by the Health Department.

Mr Speaker, for the first time, we are now trying to elevate the School of Medicine and Health Sciences into a stand-alone medicine university.
That will deal with the workforce that we need to be working in the district hospitals that we are building.

All the members of Parliament are building health centres, community aid-post and level four hospitals, without considering who will be working in those areas.

That is why we have to create a standalone university for our country in the Medical Faculty School, to provide the workforce and skilled labour that we need in this health sector and that we are backing up by funding.
Mr Speaker, this year and the next year, we will be looking at completing the POMGH Cancer Facility, that requires another K38 million, a K17 million to extend the ICU for the intervention cardiology that we have been doing in POMGH, K15 million for cervical cancer, this facility is for our women population and will be accessible right throughout the country for their check-ups.

That was never made available and this government is making an intervention in this Budget.
Another K10 million is to help our PHAs to audit on the availability of hospitals, aid post and health officers.

It is to also check if there is a work structure in place and 28 accommodation is provided.

The audit will be done to check the things that are missing in terms of infrastructure of our health system.

22/08 Education Mr Speaker, education is a major component.

The TVET and the School of Excellence programs are still running.
The districts that want to build TVET colleges are also captured and these programs are ongoing.

Like the Mauro Technical College in my district in Sinasina-Yonggamugl, education interventions are captured and reflected in this Budget.

Law and Order Mr Speaker, law and order is captured in this Budget.

We have increased budget from what we had in previous years and we are looking forward to working with the Internal Security Minister.
Through their work plan, they will do away with the use of hire cars and start buying their own vehicles.

So, the practise of using hire cars will be a thing of the past and I commend the leadership of the Internal Security Minister.

Government Precincts Mr Speaker, it is a sad thing that most of the time we have been locked out.

We’ve been faithful to engaging whichever buildings that we want to occupy.

Sometimes, when we don’t pay on time, they exercise their rights to lock us out.
In the next 5 - 10 years, we want to invest in what we call Government Precincts.

The government must have their own buildings so that the K300 million that we pay annually can go to health, education and others.

Information Technology Mr Speaker, we continue to fund in space and in record, funding for next year, to show confidence in the work that our good SOE Minister is doing, we have placed K200 million to support the SOEs programs that we are running for the country.
So, that is a big intervention in the SOE space and much of it has been ticked off by ADB.

These programs are not carried out by the government only, we must understand that ADB is on the program with us to support those SOE reforms.

Thus, we top up some money on top of what they give us to support the work of the SOE reform.

Mr Speaker, to conclude, health and education sectors are in the Budget.
The government’s intention is to try our very best in this tiring times to ensure that we have national target agendas that we want to tick off, and at the same time, we understand that 29 each district must bring something to the table.

The hopes and dreams of this Budget is one.

If we can unlock our people who are in rural places like other places in the country, everyone can bring something to the table.
As I speak, people in Finschhafen, Menyamya, Bosavi and others are locked up in the bush and they are not bringing any fair share in terms of nation building.

Once we unlock our people, they are able to contribute and we make these enabling services like infrastructure and shipping services.

Mr Speaker, when we say connect PNG, most people think that it refers only to roads alone, but that is not true.

The Connect PNG program refers to road, jetty, and shipping services.
It is the subsidy for shipping services so those people in the Highlands can be connected like our maritime provinces and districts.

Mr Speaker, I must admit the list of all the things that we want to do as a district, province and nation.

If we want to add up all of these, we don’t have the space to cater for everything.

But what we can do as a Government in our priority areas as health, education, growing our economy in the SME space, downstream processing and others.
We have tried to manage and cater for everything in the Budget to set the phase.

Mr Speaker, I would like to thank the Prime Minister, his Deputy and the Members in this side of the House for the support they have given to me and the Treasurer to contribute meaningfully and to ensure that the take-home for the districts and provinces are fair so that we can move as one country going forward.
Mr Speaker, I also want to thank the Treasurer and other members for giving us support in the last NEC meetings we have held and discussed about the Budget.

Mr Speaker, I want to commend this Development Budget on the Floor and I hope that we can support the intention of the Budget as are captured in the Budget.

As a Government, we want to be fair in the allocations.
No district has been missed out, like in the motto “no child is left behind.” As you can see, whether you are in Government or Opposition, everyone has a fair stake in the Budget.

So, this Budget is ours.

It is not only for the Government as mentioned by the shadow Treasurer.

This Budget is also yours because our people of Kiriwina-Goodenough, Pomio and Kandrian-Gloucester are also captured like Finschhafen, Mt Hagen, Kikori, Moresby South and others.

This is the country’s Budget.


Mr Speaker, I want us to support this Budget and implement it next year.

Thank you.

30 23/08 Mr SPEAKER – Before the Chair allows for another member to debate on our Budget, the Chair has noticed new members as well as continuing members of Parliament.
According to the Rules of the House under Standing Order 52 when a member leaves his Chair or enters the Chamber you must respect the Chair, it is not just any other House where you can just stand up and leave and come back inside and go straight back to your seat.

This is under Standing Order 52 Mr PETER ONEILL (Ialibu-Pangia) – Thank you Mr Speaker.

I would also like to thank the Treasurer for presenting the Budget and I am happy that the money plan for this country has now been tabled in Parliament.
And I see that this Budget is very big in the sense of revenue, expenditure, deficit and loan, therefore, everything is big.

I am happy that they have passed a record budget.

Mr Speaker, from my assumptions and my thoughts on this Budget.

Very educated people will say that IMF, World Bank, AusAID and other development partners and very big accounting firms.
They have said that in global economy there’s a lot of uncertainty over the next two or three years, driven by the fact that a lot of forces are against us in the world where it is affecting some of the assumptions that we are doing to frame our Budget.

Treasurer said that the economy will continue to grow but with all this uncertainty is misleading.

It is not correct because many economists around the world are saying that they are expecting some form of recession.
This means that our economy will not run properly.

From our budget, we are saying that our Budget is still stronger.

Our economy will continue to grow.

And many central banks around the world are intervening because inflation for the global economy is increasing and our own inflation is going up.
So central banks are intervening with corrective measures such as, increasing the interest rates for money they lend to the banks inside our economy to try and curb and stop inflation going up and spoil the economy.

Mr Speaker, PNG is no exception, the second thing is that the windfall that our Government is talking about is derived from only one or two products that we export in this country, LNG and our oil.
LNG project is affected because the biggest producer of LNG in the world is Russia and is the biggest supplier to the big market in Europe.

24/08 31 Due to the current conflict with Ukraine, a lot of the countries in Europe are not importing gas from Russia, the price for LNG has gone up and we are the beneficiaries of that, but how long will that last.
We do not know whether this conflict between Russia and Ukraine will continue or not but I can guarantee one thing, prices will readjust and most likely they will come down.

So, these assumptions that over the next 4-5 years that the prices will remain high is just a thought.

We have to be careful as this is a Budget that is framed around three assumptions.
And normally when we frame budgets from my experience, is that we frame budgets around development plans, visions, programs or strategies but when the Treasurer made his speech there was no vision and he was just referring to budget repair.

Repairing the budget for what purpose or vision?

You have been repairing the budget for the last three years, when are you going to stop repairing and become productive?
We have to make sure that our development plans are fully costed and designed so that we can fund them properly.

We are talking about public money and I believe the Treasurer is blaming previous governments and I take responsibility in what we have done in our government.

And many of those who are sitting on the other side were my ministers in my government but not one of them is man enough to stand up and take responsibility.

Mr Speaker, our governments are not run by one person but run by a parliament.
Thank you for intervening on my behalf, because the Treasurer continues to blame me.

He is thinking how I am in business?

I have been in business for well over 40 years, since I left university.

I did not ask the Prime Minister to write me a cheque when he was my Finance Minister.

I have been in the private sector for 40 years.

You can rebut that but you have investigated that for the last three years and you have found nothing.
This sort of blame game should not be played, you have been in the government for three years, take ownership.

Mr SPEAKER – Honourable Member for Ialibu-Pangia, you a referring to a statement which I asked the Treasurer to withdraw, and he has already done so, you should also refrain from doing so as well.

Mr PETER O’NEILL (Ialibu-Pangia) – He is talking about repairing the Budget, when will he stop repairing the Budget?
This is probably his third Budget and another 2-3 32 supplementary budgets that he has already presented.

He has to take some responsibility of the performance of the economy of our country.

Today, when he is speaking of budget repair; this is three years of consecutive high deficits in our budgets.

This year, last year and the year before when Covid-19 was in the country, unemployment still stands at a record lowest level and there are a lot of families out there still hurting.
25/08 But today as the Government continues to print and borrow money from the Central Bank the interest rates are going up.

There is the fact that the third biggest expenditure of this Budget is repayment to Central Bank because the cost of borrowing money there is much higher than the concessional loans that we get from ADB, all the other commercial banks around the country and Australia.
There is a fact, Mr Speaker, you look at the numbers that you print the third biggest expenditure of this Budget is payments to repay Treasury Bills.

So, when we do borrow this kind of money, we stop growth in the private sector because banks and Super Funds become lazy.

They buy Treasury Bills and Treasury Bonds, and they don’t lend money to the private sector.
When they don’t lend money to private sector, the private sector does not grow and does not build a business, and so unemployment becomes prevalent.

That’s what we are facing today.

Mr Speaker, instead of addressing this kind of call issue in the country the Treasure still continues to do Budget repair.

Let me say this; today’s interest in our country remain high.
All we have to do is ring the Central Bank and they will tell us what the government is borrowing from them on a short-term loan, 12 months, 24 months, five-year, 10-year loans that they are getting from the Central Bank.

The Government is the biggest borrower to fund this Budget, Mr Speaker, we will continue to borrow more money from the Central Bank because nobody else is going to lend us money.
All it does is put pressure on our economy in the private sector, SME, agriculture, and all our small business men and women cannot borrow money because the banks are lazy.

They are not forced to lend money.

They are lending money to the Central Bank because they are getting much easier interest rates.

So, Mr Speaker, one of the other reasons is that inflation continues to grow.

It remains very high and it’s about six per cent on average now.
That’s what the Budget is estimating but I think it’s literally more than that because when you go to the supermarkets the prices 33 of goods and services is already increasing.

Many of us know that our people who has no wage adjustment over the last four years are still paying for the price that is increasing of basics goods like rice, tin fish and everything.

Mr Speaker, this is reality and the Treasurer thinks that by assisting K500 million and reducing wages tax is helping everybody.
How many employees in this country are going to be benefited from this?

Probably 150,000 people; get your numbers right; go to IRC and have a look before you make pronouncements.

Its only 150,000 people what about the rest of the 9.5 million people in this country.

How will they benefit from this Budget when the cost of living and prices are increasing?

Mr Speaker, so we have this situation where inflation and interest rates are going up, business confidence is very low.
So, how long are we going to continue to do Budget repair.

So Mr Speaker, we have a situation now where the Treasurer continues to walk in and out because he has no care for the country.

He comes late.

This is the most important Budget policy document for the government.

When you are serious about running this country, you seat there and listen, and you have to be serious about your job.

The decision that you make affects 10 million people in this country.
26/08 Mr SPEAKER – Honourable Member for Ialibu-Pangia, we have a point of order.

Honourable Prime Minister, what is your Point of Order?

Mr James Marape – My Point of Order is, I would like the former Prime Minister and Member for Ialibu-Pangia to take a little bit of vermin out of his inferences to the Treasurer.

The Treasurer is only a human being, he needs to go to the restroom, or he needs to do other things.

There is no commandment that affixes the Treasurer to the chair when he is speaking.
So can he be kind on himself and be light on the Treasurer.

He cannot pass judgement on a fellow member that he is lazy or he is working hard.

He is not God that he will understand what the Treasurer is going through in his personal life, so can he withdraw his statement on his assessment of the Treasurers work ethics.

For me I find the Treasurer to be the hardest worker in this Parliament at the moment.

Much harder than him anyway.


Mr PETER O’NEILL – It is like this, this is his Budget, he arrived late in this Parliament.

I don’t know if the Prime Minister has approved his leave to take breaks every 34 now and then but I’ll leave it to both of them.

This is not a matter that has to be taken lightly.


We are talking about a document that is going to affect 10 million people of this country so I am not going to withdraw any statement whatsoever because he, whether takes his job seriously or he doesn’t, there are 117 members in this Parliament who can do this job if he does not want it.

But anyways going forward.

Mr SPEAKER – Honourable Member for Ialibu-Pangia, I did not make a ruling on the Prime Minister’s Point of Order so I will do that now.
There is some truth in the Prime Ministers Point of Order.

As you may have noted, I had to excuse myself earlier on and the Deputy Speaker relieved me so this could have been a similar situation.

The Treasurer has probably done the same.

From the Chair, I have also observed that during lengthy speeches members walk out for a break and come back in.
However, you also have a point in saying that the Treasurer arrived late when he should have been present for the Oppositions reply to the Budget he presented.

There could have been a genuine reason for his lateness because I’m sure he knows that important Budget bills will be passed today.

I ask you to continue your debate on the budget.

Mr PETER O’NEILL – Thank you, Mr Speaker.

I will not speak on anymore on the Treasurers work ethics but I want to continue with my speech.
Mr Speaker, when we are repairing the Budget, business confidence in this country is at the lowest in the history of our country for 47 years This is because the Government is not firm on its decisions.

When you make a decision stand on it, whether it is right or wrong you have already made the decision.

People must know that, that is the decision, but changing your statements and policies affects the confidence of people.

Businesses are the biggest employer in this country, not the Government.
We only look for funds and then spend it.

Those who make money for this country are in the business community and employment community.

So we must be consistent in our decisions.

Mr Speaker, the Treasurer talked about GDP.

Yes, when we took over Government in 2011 and when we finished in 2019, we doubled the GDP but GDP does not feed our people.

GDP is just a measurement of the performance of our economy.

You cannot say that economy is growing when real challenges in the economy remain.
Why has the GDP increased in our country over the last two years?

It is only because the LNG prices and oil prices are up so we are earning more revenue in this country.

It is only because of the conflict between Russia and Ukraine.

35 27/08 That’s the only reason why but it will come down and we are not planning for readjustment in this Budget, we are spending the windfall that we have today because we think that this price of LNG will remain and we will be rich forever.
We are spending before we have earned the money.

Mr Speaker, who are the biggest beneficiaries of the increase in GDP?

It is certainly not our people and country.

But certainly, the big oil companies that are producing LNG in this country.

They are the biggest beneficiaries but we proclaim that our GDP is growing and we are benefiting from it.

When we are addressing revenue in this country then it’s one of the revenues.
And I was part of previous government before our government took over in 2012, which we had high commodity prices.

And we made mistakes, we had almost K6 billion in trust funds and yet we didn’t build one single road and hospital.

And I was part of that government and we were irresponsible.

Therefore, we must not make the same mistakes again.

These windfalls come once in a life time when the commodity prices- Mr SPEAKER – Honourable Member for Ialibu-Pangia, your time is up Mr PETER O’NEILL – What?
How many minutes on this debate, Mr Speaker?

It’s 20 minutes on this debate.

Why are you stopping me halfway, I am not done yet?

Mr SPEAKER – Sorry, Member for Ialibu-Pangia, your 20 minutes is over.

The clock right in front of me indicates that.

Mr PETER O’NEILL – No, you must be seeing another clock.

(Laughter in the Chamber) Mr SPEAKER – Maybe.

Mr PETER O’NEILL – My clock doesn’t indicate that my time is over.

Mr SPEAKER – If we all follow my clock then your time should be up by now.
36 Mr PETER O’NEILL – You will listen to good speeches so that’s fine I will sit down, thank you.

Mr LUTHER WENGE (Morobe) – I thank you for allowing me to debate on the Budget of this country.

I am happy to see you sitting on your Chair.

You have not been sitting on it for some time.

I don’t mean that in a bad way, I wanted you present.

But good to see you back as the Speaker.

I am not saying this to degrade the other assistant speakers but saying it with a good heart.
(Laughter in the Chamber) Mr SPEAKER – Honourable Governor of Morobe, what you are saying is broadcasted live all over PNG.

Let me just clarify this point.

There are members who have been appointed Deputy Speaker and Assistant Speaker as well.

Therefore, as the Speaker, I want them to gain experience in this Chair on how to run a sitting.

I won’t be present all the time so they have to sit here to gain experience.

That’s why I am allowing them to sit here.


We must have succession plan to carry out duties so that’s why I am doing this.

It won’t be proper for them to be appointed as deputy or assistant speakers and not performing.

Their people want to see them perform here.

With that, thank you for your acknowledgment.

Mr LUTHER WENGE – All the people of Morobe back in the province and country as a whole are listening to me right now at this point in time.
If I don’t contribute in this debate on the budget plan, then they won’t be happy with me that’s why I stand to debate on this Budget.

28/08 Mr Speaker, I support the Government’s 2023 Budget for this country under the leadership of the Member for Tari-Pori, Honourable James Marape, and Minister for Treasury, Ian Ling-Stuckey.

I want to thank them.


I would also want to thank the Opposition for their reply, the Chairman of the Permanent Parliamentary Committee on Plans and Estimates, and the Minister for Planning and Monitoring for providing their written statements on the budget.

37 Mr Treasurer, I am very pleased with this Budget that you have presented to the Parliament.
Mr Speaker, our country is vast with so many mountains, rivers, and seas that make it very difficult for people to travel but there are not enough roads, wharves, jetties, and air strips, and many people are finding it difficult to move around.

These people have lived there for so many centuries and they will continue to live there; if we want to move them it will be impossible.

This country has a big problem because agricultural activities have not been performed like in the past.
Before Independence, many foreigners came to our country and there were a lot of plantations in the New Guinea Islands, the Highlands, some parts of the Papuan Region, Madang, Sepik, and Morobe.

Mr Speaker, our economy was strong because of these plantations and it was managed very well.

Even the management of the government was managed well, this government system is theirs, it is their civilization.
Mr Speaker, our country was well taken care of; money was generated from foreign companies and the government monies were well managed because they abided by the laws that were created to guide and protect us.

Today, after we gained Independence on 16th September 1975, we thought we would advance but it has not happened.

We have not reached that standard yet.

In business, many agriculture plantations are run down, and exports from this country have run short.
An example would be coffee which used to be in surplus but now has gone short.

Mr Speaker, we will not blame anyone!

The Government will not blame the Opposition and vice versa.

We, the members will be replaced, however, there are some who have been here but we can’t just press a button and everything will happen to our liking; only God alone can do that.

Mr Speaker, this is our country’s scenario but we are doing our best and I can understand.
The Prime Minister, Minister for Treasury, and your government are trying your very best and I see that you have captured well the lives of our people.

In 2007, when we formed the government with the late Grand Chief Sir Michael Somare, I was present at that time.

I told the Late Grand Chief, most of our people are still in the districts so you must allocate K20 million in Budget for all the districts.
29/08 38 Mr Patrick Pruaitch was the first Treasurer that initiated the K10 million allocation despite me asking for K20 million, and that amount remained unchanged for years.

That money was for the people living in our districts.

Mr Speaker, I am happy with the former Prime Minister and the Member for Ialibu - Pangia that continued with the K10 million budget allocation.

This still continued on when our brother, Mr James Marape, became the Prime Minister.
In this Budget, K10 million is allocated to every district.

That is good wisdom and reason for this K10 million.

It is a small amount of money but it was distributed wisely.

The Opposition are also given the same amount.

If we use this money wisely, our God in Heaven will bless us.

And if we misuse this money, he is also watching.

Our God and people can judge us later on how we spent that money.

I thank the Prime Minister and the Treasurer for this money.
In my time as an elected representative in 2007, only a million kina was allocated to regional members.

The open members were given K10 million.

But for this Budget, K10 million will also be given to the Governors.

I am also an elected representative, and I have also made commitments to the people that have voted me in.

They are waiting for me to be true to my words and deliver the things that I have promised.

If I am roaming around like a bird making a lot of noise, then nothing is going to happen.
Mr Speaker, I am very happy about the K10 million that was allocated in the Budget.

With that money, all members of Parliament can afford a lot of changes in their districts.

I will also do the same for my province by giving a million kina each to my districts.

I want the people of Morobe to know that you have allocated K100 million for Morobe Province.

The Wafi-Golpu Mine is not yet operational, but you have already given K100 million for infrastructure development in Morobe Province.
The past governments have promised to kick-start the mining operations but nothing has been done so far.

I told my people once I am here, the Wafi-Golpu will be on the go.

The K100 million will not go to waste.

Since the colonial times up to the independence, it was the Panguna Copper Mine in Bougainville that kept the country going.

All school fees in my time, were paid by the Panguna Mine.

Today, we have so many mines in the country but we do not manage their resources properly.
Hopefully, that will all change when the Wafi-Golpu starts operations.

We might even pay for all the school fees.

39 The hundred million kina that was given will help me to relocate the capital hub of Morobe to Nadzab.

When you travel in to Morobe, you will land at the Nadzab International Airport, and that is where the capital will be.

A lot of our members live there but I will call them out.
30/08 I want to inform the Prime Minister that the allocation of K440 million for administration covers all the administrations in Morobe province like health, education and others.

I think that other provinces have also been given their cut but Morobe province has 10 districts and it is a big province.

So, from the K440 million allocated, about K233 million will go to Personnel Emoluments, K150 million will go to Goods and Services and K170 million will go to Capital Investments.
However, this breakup shows that the amount allocated in the Budget is less.

Morobe province is a big province when compared to other provinces in the country and the amount allocated is not enough.

The total population of Morobe province is about one million and eligible voters is about 800, 000.

When you add the unborn babies, the total population would go beyond one million.

Mr Speaker, the Budget has also captured the education sector and the government has the free education policy.
However, big allocation has been given to the education sector for free education and I thank the Prime Minister, the Treasurer and the Government team for supporting and preparing this Budget.

Mr Speaker, I want to inform the Parliament that the government did not allocate a budget for Morobe Province for free.

It was allocated because Morobe province used to contribute to this country through GST, export and import levies, company tax, income tax and other SOEs in Morobe.
Close to K1 billion tax used to come from Morobe province so we are not just getting it from the government.

We have the rights to be captured in the Government’s Budget because we contribute a lot.

So, the Parliament and the country can be aware that Morobe province contribute to the nation’s development and we are not selfish.

We attained Independence to build our country so you don’t think about developing places elsewhere.

So, whatever we contribute, we do it to develop our country.
Mr Speaker, in regards to the revenue and tax on alcohol, I want the inform the Parliament and the Treasurer that I live in a settlement and a lot of people are in the village, blocks and settlements.

The huge revenue collection you put is on alcohol and that is to 40 minimise the alcohol consumption.

However, I want to inform you that a lot of people in the settlements are not rich.

They are simple grassroots people that have migrated from villages are living there in the city and urban settlements.
The little they earn from work is to put food on the table for their family, but they are human beings.

Sometimes they need to get drunk to relieve themselves from this stress and pressures to keep them healthy.

However, I see that the tax for beer producing companies is very high and as a result the price for alcohol will be high and when that happens, the consumption of homebrew and dangerous drug will be very high too in the country.
31/08 Alcohol coming from SP Brewery or Vitis Industries, have been scientifically checked and they can be consumed.

But we have illegal alcohol being produced back in our villages and settlements are dangerous to the lives of the people who are consuming it.

The more you increase the price of these goods, the companies will fall, and as a result, loss of job opportunities.
Therefore, when you decrease the tax component of legalized alcohol which are medically and scientifically tested and good for people’s consumption, this will affect the lives of our people.

That is why Mr Treasurer, I want you to think about this carefully because it was the people who put you here not stones.

We have to look at the things that we can raise money from, our revenue is important.

As for me I don’t want us to stop borrowing money and start making money.
We have oil and gas there, we are the producers of oil and gas and why do we have to send everything away.

When I went to Thailand I saw a rice bank for the consumption of the citizens.

Yes, Thailand has a rice bank not just a bank for money.

We must change the arrangement of oil and gas and give it back to the people to own.

We must have oil reserves.

We must sell some and leave some money in the reserve.
We must subsidise our oil and gas for the citizens of this country and make it easy for them to use the money and do business and help our people.

We need to start doing mineral processing in this country, what if we export all our Gold and we have nothing else left.

That is why we need a refinery.

If we need to build a refinery, build it in Lae and gold is also in Lae.

We have alluvial mining in Wau-Bulolo.

Mr SPEAKER – Ruling!


Honorable Governor, there are a lot of people who want to debate also, your time is up Honorable Governor of Morobe.

I call the Governor of East Sepik to make your debate.

41 Mr ALLAN BIRD (East Sepik) – Thank you, Mr Speaker.

Before I debate upon the Marape-Rosso Government Budget.

The Member for Ialibu-Pangia said so many things but one of the statements that he said, I would like to correct one of his statements.
He said that when he was the Prime Minister he doubled the GDP of Papua New Guinea and I would just like to make it clear that, it was the work of the late Grand Chief Sir Michael Thomas Somare and his government.

You came in and sat on all their hard work and now you are seated on the other side.

I want to correct that for the record.

On top of that when you threw out the Grand Chief Sir Michael Somare in 2011 the debt was K6 billion because his Government paid it down.
You borrowed and took it to K24 billion debt.

I just wanted to make that clear.

32/08 Read the Bank of Papua New Guinea reports and base it on facts.

You’re a politician, just grand standing along is not going to help you.

You are sitting in this chair because of a great man, so be respectful.

Mr SPEAKER – Honourable Member for Ialibu-Pangia, are you making a Point of Order, through the Chair?

Points of order must come through the Chair and will be addressed properly.
Mr PETER O’NEILL – Yes, thank you.

Mr SPEAKER – Governor of East Sepik, I acknowledge the point of order, but I prefer we should refrain from being too personal.

Let us discuss based on facts and figures.

Mr ALLAN BIRD – I think the facts speak for themselves and I am quoting the Bank of PNG records.
The most important thing that I want to discuss refers back to the Constitution, when it was drafted we called for fair equal distribution and I would like to say that this Budget has brought about fair and equal distribution and I would like to say thank you to the Marape-Rosso government.

I still have doubts and I believe we need to make more strategic investments through the budget but at least we made a start.

These are difficult times as others have said, including the Treasurer.
Even the entire world is experiencing high inflation particularly 42 because of Covid-19 and the Russia -Ukraine war.

I was expecting a more modest Budget but somehow those who wrote the Budget managed to find some more money and I understand it is from the windfall, mostly from oil and gas, that was built into this Budget.
Inflation has become a common subject where we all are talking about it and I just want to make some comparisons, at this point in time inflation in the United States is at 8.5 per cent, in Great Britain it is at 12.4 per cent, in Australia it is at 6.9 per cent, in New Zealand it is at 7.2 per cent.

Ours is lower than that, so whatever the effort that was made by this Government in the 2022 Budget has actually helped to reduce the inflation.
So, when we talk about inflation, we forget that inflation is important and what that means is that; if you want to buy rice you have to pay the same price that someone in another country is paying.

For instance, if you were to buy a vehicle from Ela Motors you will see they have no vehicle to sell.

Mr Joseph Lelang – Point of Order!

With due respect to the Governor, I think the statement that the inflation in the country is all imported is not a correct assessment.
If we look at all the figures, the shifting with monetary base with the Central Bank including the increasing money supply and the excessive borrowing domestically contributes towards inflation.

Many times, our decisions in terms of financing especially during budgets also contributes to inflationary pressures domestically.

I believe the Governor should refrain from making that statement.

Mr SPEAKER – Leader of the Opposition, I am trying to understand your Point of Order!
The issues affecting inflation, are they only coming from abroad or what are you referring to?

Also, I would like to remind us here that please listen carefully and take note, there will be time given for discussions where you can share your points or thoughts.

This is so we avoid raising unnecessary points of order and we take up time trying to correct or, withdraw and many Members do not get a chance to speak and we run out of time.
33/08 We are raising unnecessary Points of Order and time is very limited and many Members want to debate.

So, the Honourable Governor of East Sepik, continue with your debate.

43 Thank you.

Mr ALLAN BIRD (East Sepik) – Thank you, Mr Speaker, I concur with the Opposition Leader to some extent but I was still in the process of explaining and he rudely cut me off so, I will continue now.
The issue of budget repair and budget consolidation, three years ago the Treasurer had told us that he will do this on behalf of the Marape Government.

One of things that the Opposition fails to understand is that; this year’s Budget is K1 billion less in borrowing.

I think we have to acknowledge that because the Treasurer has told us that they have a plan and it has expanded over the Medium Term.
The reductions will be made over time because these borrowings were made over time and they were not just made in one year.

We cannot expect to fix something that occurred 10 years ago in three years, it doesn’t work.

Any of us who have gotten a loan from the bank, you may have this loan that takes you 15 years to repay, you don’t repay it in three years.

This is a similar concept that this Government is using in the budget repair.
So, I wanted to make that point and to say that at least on our side we have seen that there is actually progress in reducing the size of the debt.

Next year is K1 billion less borrowing than this year.

So, let’s give credit where is due.

What is critical is that, we must protect our revenue source and I concur with the Opposition spokesman.

We need to do more for businesses particularly in the private sector and I concur with the debate made by the Member for Ialibu-Pangia and former Prime Minister.
I think that is something we need to manage properly.

On the issue of debt to GDP, it’s interesting to note that in the last three years and we cannot deny that every country on earth and the Member for Ialibu-Pangia former Prime Minister said as well that every country has borrowed.

So, the borrowings that this government made over the last three years is consistent with the other governments around the world, but there is a difference in the size of the borrowings.
If we have had some money left over from the hard work of the Somare government and if we could follow advice to build the Sovereign Wealth Fund, we would not had to borrow in the last three years.

We never deposited any money into the Sovereign Wealth Fund when we received windfall.

Today, we have no choice, we have to borrow, it did not matter who was the Prime Minister or which government was in power, we still have had to borrow.

Those are the facts.


44 Let’s look at some of the borrowings; the United States in the last three years has borrowed US$4 trillion, that equates to K16 trillion according to our currency and they are up to 100 per cent of their GDP.

Australia in the same period borrowed $963 billion they are up to 45 per cent of the GDP.

When we want to debate let’s debate intelligently and make the comparisons.
New Zealand had zero debt three years ago and in the last three years ago they borrowed $63 billion and they are now up to 18 per cent of GDP.

This is a good Budget, Mr Speaker, when we compare with others in the region.

The Capital Budget had increased to K9 billion over and I have some grievance and will debate later.

I want to say a big thank you for increasing the Police Budget.

Many of us debated on the Law and Order and today its budget has increased.
I want to request that when Police Commissioner receives his budget and funding allocation made to East Sepik police let me know.

What is the allocation for Western Highlands?

Please inform us.

We at the provincial level must know how much the Police Department plans to spend in our province so, we can come together to do counterpart funding to solve these problems and cut down law and order issues in the country.

The trend of hire car must stop.


34/08 I am also pleased with the increase of the law and justice sector budget to K232 million.

When an offender is arrested by the police, the process is completed.

They must be prosecuted, charged and incarcerated, and proper corrections done.

This is a significant increase in the law and justice sector budget.

My concern, and this should be a concern for Parliament, we must have some mechanism to check that the monies we have allocated is rightfully utilised.
It is irresponsible to just allocate funding and then forget about it because the accountability doesn’t stop there.

When we give the money, we must check on its expenditure and how it is expended.

On the issue of taxes, I’m very concerned about the tax towards banks but then I ask myself, what would be a fair tax system?

Like other Papua New Guineans, we struggle with the banking system.

This year, the bank declared over a billion kina in profit.
It is an increase of 33 per cent from last year and they will declare another dividend again.

It will be interesting to see how in these tough times the bank is still thriving.

Everyone should carry a fair share of the tax burden.

Whilst we were facing inflation, I raised in this House last time, that we must increase local production.

If we cannot plant rice, we must increase the production of taro, banana, 45 kaukau so we substitute the imports for local produce which is also much healthier.
We have to start thinking like this.

I also have concerns regarding the increased levies towards logging export.

I understand the rationale behind this.

We are trying to force logging companies to go into downstream processing so that we can create employment for our people.

I note the debate by the Shadow Treasurer who spoke about that.

I think we need to do some more work rather than just having a punitive tax in place.
We should find ways to encourage these companies by providing incentives so they can build the processing plants for processing the logs rather than implementing and chasing them away with punitive tax.

Coming back to us, I still think that we need to sort out our foreign exchange issues.

We just witnessed the Opposition’s Shadow Treasurer blaming the Government.
I was once in the Opposition bench and I raised issues about foreign exchange, now I’m on the Government side and we still have issues with foreign exchange.

We need to find out whether the problem is in Treasury, with the Bank of Papua New Guinea or with the commercial banks.

We need to find out and fix it so that the businesses can have access to foreign exchange.

It is not right to continue the blame game.


Coming back to East Sepik Province, I would like to thank the Government for increasing our budget.

The biggest increased is in teacher salaries.

In East Sepik, we have close to 7000 teachers.

I am very pleased that the Government has increased the budget to K117 million so that these teachers can be remunerated appropriately.

We also have increases in the grants received by the province and the LLG funding.

I thank the Government for that.


I also want to thank the Treasury and the Department of Health.

We will soon be opening our modern public hospital.

It is the first fully digital hospital that has been built and we have to increase the funding for specialist.

It would be unfair to have all these machines and lack employees or workers.
So the Government has allocated an extra K10 million to pay for these consultants to come and work in this hospital and serve the whole of PNG., In closing, Mr Speaker, the risks I see to the Budget, the Parliament should have an oversight on the spending.

35/08 For the last five years I was here in this Parliament, I have not seen one single oversight on the expenditure which we normally pass on this Floor.
Now we go to a record Budget and we will be allocating huge sums of money to all the provinces and districts.

I 46 want to commend the Member for Ialibu-Pangia, when he was the Prime Minister he introduced this system of allowing the funds to be accessed at the district level.

But if you assess it some districts got K200 million already from 2012 to 2022.

Some of your favorite districts got extra K50 million to K70 million a year.
Which means that some districts have received almost K400 million in the last ten years.

But yet no one followed up on how these huge sums of funds have been used.

For instances the airstrip built using these funds, how many planes have landed and how many passengers have got on it so far?

All this have never been checked and that is the failure of every government since independence.

Now all the districts will receive K15 million each.
East Sepik Province will get an increase in funding but who will check all these?

The National Planning has never been able to do it.

We still don’t have a mechanism that will come down and check.

Two times I stood on this Floor and asked the Department of National Planning to come and check East Sepik Province but it was never done.

Therefore, we would be irresponsible to continuously give money to districts, provinces and agencies and yet we don’t check on it.
It’s not our responsibility to cut the pig only but we need to check on how they distribute or use it.

We haven’t done that and I want to encourage us all that we need to come up with a mechanism now before the next year’s budget comes out.

If we need a parliamentary committee to check, then it has to be set up.

Don’t just allocate funds to districts, provinces and agencies and forget about it.
When you allocate public funds, we need to monitor and check on how they have been used than better go back and check whether they have used the public funds properly manner.

I am concerned also about some of the debates regarding lots of liquidity in the bank, which means there is a lot of money in the banking system.

Yet we don’t have any access to deploy these funds to assist us to grow our economy.

And that needs to be accessed starting next year, before we commence on all these expenditures.
I use this opportunity to reiterate the need again given this opportunity for new investments.

It’s time to make new gardens because we have already harvested some.

Ok Tedi Mining will wind down soon, oil is slowly going down and gas will finish shortly.

The challenge is on us now rather than allocating more money unnecessarily to all the districts and provinces.

We got to have a cut-off point where we look at this money and invest in strategic investments.

Make a new garden for the future generations.


47 Mr Speaker, my last point before I sit down, this is a good Budget and I want all the districts, provinces and agencies to come together and implement it.

If there is an opportunity for us to partner and share cost, then East Sepik Provincial Government is ready to partner with any of the National agencies if they are working in our province.

With that, I commend the Budget, Mr Speaker.


Mr WALTER SCHNAUBELT (Namatanai - Minister for Transport and Civil Aviation) – Thank you, Mr Speaker, for the opportunity to contribute to the debate on the outcomes of the 2023 Budget with the theme ‘implementing the vision, which the Treasurer, Honourable Ian Ling-Stuckey presented to this Honourable House on Tuesday 29th November 2022.

I commend the Treasurer for a budget promoting the aspirations and plans of the Marape-Rosso government.
Mr Speaker, I wish to also congratulate the Prime Minister and the Government for handing down a money plan, the Budget with record expenditure of K24.6 billion.

This is a split of K14.8 billion in operational expense and K19.8 billion in capital investments.

The total revenue in grants also a record is forecast at K19.6 billion.
The 2023 Budget results in a budget deficit of K4.9 billion which slashes the 2022 Budget- 36/08 Mr SPEAKER – Honourable Minister, I will interrupt you there, while the Honorable Treasurer takes his Chair.

Honourable Minister, you can continue your speech.

Mr WALTER SCHNAUBELT – The total revenue in grants is focused at K196 billion.

The 2023 Budget, results in a deficit of K4.9 billion which slashes the 2022 Budget deficit by K1 billion and represents 4.4 per cent of the GDP.
As indicated by the Treasurer, the Government aims to attain a current budget in its current term in office.

A major achievement, given the global shocks created by the Covid-19 pandemic since 2019 and the Russia-Ukraine conflict.

Mr Speaker, for the first time we will fully align our medium-term plan to coincide with the life of the Parliament.

This will enable the Government and any future government to better plan and align development priorities with promises made during the elections.
48 This is a real first because it provides the Marape-Rosso government, the opportunity to ensure that its policies are successfully delivered and that they contribute to improved performance of the PNGs economy.

This is a disciplined government that we all must acknowledge and appreciate.

Mr Speaker, the 2023 Budget is the first annual budget for the new Marape-Rosso- led coalition government and the Eleventh Parliament since Independence.
This Budget is the fourth in the government’s rolling five-year strategy of budget consolidation and economic recovery under the theme, “Take Back PNG”, with the most development aspiration aligned to the Marape Manifesto and the Loloata Commitment.

As noted in the Treasurer’s Budget Speech, the 2023 Budget is set amidst unprecedented uncertainties here and globally brought about by tough economic conditions.
Besides, the Covid-19 pandemic reduces the Government’s capacity to finance the 2023 Budget solely, from internal revenue; the world has also seen an impact from the Russian invasion of Ukraine, the consequence of inflation in fuel through a high commodity crisis and disruptions of supply channels.

Debt financing has become a critical finance tool not just for our Government but for everybody in this world.
Therefore, it is extremely pleasing that the Treasurer can confidently focus that the PNG economy will exceed K113 billion in 2023.

Indeed, a landmark in our development history; underpinning this growth is the expectation that the non-resource sector on which a vast number of people rely on will grow at an exceptional rate of 4.6 per cent on top of the 4.5 per cent of last year.
Mr Speaker, while the economy is faced with a variety of external challenges, the Government has taken a cautious approach to managing available funds and resources through the budgetary process and by taking the whole government approach in the allocation of financing resources.

This is done to prevent the wastage of financial resources and to maximise the return on government investments.

This is evident from a lower budget deficit and the Government’s goal of attaining a balanced budget by 2027.
If you have not noticed this Government has been disciplined Government.

This must be appreciated by all including our most criticized groups and individuals.

Mr Speaker, as Minister for Transport and Civil Aviation, I also wish to emphasise the importance of the Transport Sector as an enabler and conduit for economic development and for effective service delivery.

As a result of this recognition, the Transport Sector absorbs a significant portion of the capital funding made available each year.
49 Nevertheless, we cannot afford to slacken our development efforts at any time.

The nations transport sector infrastructure and services are a vital component for economic growth, service delivery, and ensuring that the benefits of development flow to all corners of this nation.

37/08 Mr Speaker, I would like to point out that the Department of Transport allocation in the 2023 Budget amounts to K33.3 million.
This comprises of K17.3 million for operational expenditure and K16 million for capital investment.

In overall reduction of K9.4 million or 21.9 per cent compared with 42.6 per cent in 2022.

The National Shipping Services Program (NSSP) and the jetties program that are currently running within the Department of Transport, received some funding in 2021.

However, they were zeroed down in 2022 and again in 2023, although the agency sought continuity in funding through the 2023 Budget.
Furthermore, it is noted that the funding of K20 million for the NSSP will now reside under the Department of National Planning and Monitoring, which now means that we have parallel programs run by two different agencies, which the government may want to consider rationalising to ensure effective outcome.

Mr Speaker, the transport sector allocation of K2.3 billion in the 2023 Budget represents an increase of 57.3 per cent or K824.

8 million.
8 million.

This exciting increase in funding compares to the K1.4 billion in 2022 Budget, will set the pace for significant improvements in the nation’s transport infrastructure.

Out of the K2.2 billion total appropriations to the transport sector, K204 million is under the operational budget, which K2 billion is targeted for capital expenditure equating to 21 per cent of the government’s total capital investment Budget.
Despite indicated challenges mentioned above, this massive increment in transport sector funding in 2023, is linked to the government’s overarching policy under the banner of Connect PNG agenda.

It will maintain a key focus on providing connectivity for the rural communities, helping them to better connect with local and overseas market and to have better access to education, health and other services.
The Connect PNG agenda will involve the construction and maintenance of key rural roads and wharves, along with provisions of electricity and telecommunications.

This will help to lock in high-profile programs and projects that delivered improved living standards 50 to most of our people.

This integrated program involves planned expenditure of K450 million in the coming year, an exciting innovative effort by the Marape-Rosso Government.
Mr Speaker, the jetties and the NSSP projects are integral to the governments over- arching Connect PNG agenda, to realise effective connectivity in transport.

It would therefore, be prudent for the projects and the benefits of the rural majority, such as our rural airstrips and jetties to enjoy continuity in funding.
There is therefore, a need for us to visualise a properly integrated transport system that has a capacity to reduce poverty and increase the reach of government services, as mentioned earlier.

I would urge the Treasurer to reconsider the department’s request for a modest funding of K10 million for jetties and National Shipping Services to help further boost regional and rural connectivity.
38/08 Mr Speaker, closer collaboration and partnership with the state line agencies including provincial and district administrations, with support from development partners are key enablers for the successful delivery of these new initiatives.

The government continues to be the major provider of investment in the transport sector in partnership with the development partners through loans and grant funding.

The land transport subsector continues to dominate the invest proper.
However, in recent times, the aviation subsector has also received substantive funding in respect of the ongoing works undertaken by the National Airport Corporation (NAC) in upgrading national airports under the CADIP 1 project.

It is now envies that CADIP 2 program will extend to the rehabilitation of our small rural airstrips by the rural airstrips agency.

Mr Speaker, to conclude, 100 per cent perfection is in Heaven.
Here on Earth, we will try our best based on current economic circumstances to deliver this Budget.

The 2023 Budget is this government’s best effort and the key takeaway is this government’s discipline in controlling a debt economy since May 2019.

This cannot be denied and we all must acknowledge and appreciate.
As Minister for Civil Aviation, I would like to commend the stewardship of our proactive and focus driven Prime Minister, Honourable James Marape and our hardworking and brilliant Treasurer, Honourable Ian Ling-Stuckey and our tireless Minister for Finance and Planning for handing down this historical Budget of K24.5 billion.

Mr Speaker, at this juncture, I would like to wish everyone a safe and an enjoyable Christmas and a prosperous 2024.

51 I hereby commend the 2023 Budget to this Honourable House.
Thank you.

Mr JOSEPH LELANG (Kandrian-Gloucester) – Thank you, Mr Speaker.

I want to also join the debate on the 2023 Budget.

Before I do, I want to acknowledge the Government and the Treasurer for tabling the Budget.

I want to also thank the public servants and everyone who have contributed to the document that is before us.

I also want to acknowledge the Honourable Minister for Finance and Planning for ensuring that this is the people’s Budget.
He has mentioned that there is funding program for every Members on both sides of the House so I just want to thank him for that.

As you know, irrespective of where we sit, our people are citizens of this country and they have the same issues and needs so I want to recognise and acknowledge that as well.
Mr Speaker, budget is an instrument of government to stabilise and grow their economy through its public investment programs in creating jobs, controlling and keeping inflation low, creating an environment that is conducive for private sector growth and investment, supporting the growth of business opportunities and improving the welfare of our citizens.
Mr Speaker, when the Treasurer handed down the 2023 Budget on Tuesday this week, we do agree with him that the country is sailing through a gloomy international environment so we cannot underestimate the impact of this external developments on our domestic economy, on the lives of our people, on our business communities and how international capital flows in and out of our country.

So, how are we insulating the country against this external developments?
Mr Speaker, despite this gloomy external adverse developments, the government is expecting GDP, including the resource sector to grow by 4 per cent next year, which is actually a downward revision compared to this year’s figure of 4.6 per cent, but we understand these are difficult times.

39/08 Mr Speaker, when we look at the December inflation rates.

it has been increasing from a low 2.7 per cent in 2019 to 6 per cent in 2022 and I think we have been talking about inflationary pressures.
The previous speakers have been mentioning that and our people out there are feeling the pinch also.

Whilst we see that, employment continues to remain below 52 the 2019 pre-Covid levels, according to the Bank of Papua New Guinea employment index bar industries.
Mr Speaker, foreign currency shortages continue to persist and according to a recent Asian Development Bank report, and just looking at the economic report by the Treasurer in September when Parliament last sat, he mentioned to this Honorable House that our total foreign reserves was K14 billion.

In handing down the Budget, in his speech, he mentioned a figure of K13 billion so there’s a shortfall of K1 billion just in the month of October.

So we are indeed facing a foreign exchange shortage.
According to the Asian Development Bank unmet orders for foreign exchange ranges between K1 to K4.5 billion and it takes three to twelve weeks to process demands for foreign exchange in Papua New Guinea.

BPNG releases per month US$75 million which is over K265 billion to the commercial banks in order for them to process the demand for foreign exchange.

Mr Speaker, we understand that these are the consequences of adverse global events that the Treasurer has-been telling us about.
Hence the Government has built into to the 2023 Budget and beyond, policies and strategies that will insulate the PNG economy against these external factors to reduce domestic inflation, to reverse currencies shortages and to grow jobs and to create an environment that is conducive to promoting private sector growth and investments.

These are the open ended questions I want to leave.

I want to talk about a few important issues relating to our Budget.
One thing that concerns us in the Opposition relates to the Budget available to the National Parliament and Judiciary and I note from the Paper by the Chairman of the National Plans Estimate Committee that at least Parliament is getting some increases in funding this year.
But the point here is that the National Parliament Budget and Judiciary must be fully funded and protected, and we should not subject this to cuts like the rest of Government Departments and that is by the Constitutional Law, I think its Section 99 (3) that is we must maintain the separation of powers of the three arms of Government in Papua New Guinea and that no arm must be seen to dominating the other.
So the independence of the Legislature and Judiciary from the Executive Government is important and at all times we must not allow the Judiciary and Legislative arm to be subjected to the Executive Government.
We believe that it is a dangerous trend for our democracy and I do echo a speech by Honorable Joseph Yopyyopy, Chairman of the National Plans and Estimates Committee; with him basically saying that we must protect, over the cause of this Parliament, if I may add, allocations and appropriations to Parliament and the Judiciary.

53 40/08 I wish to highlight another matter and would appreciate if the Treasurer can at least take note.

Maybe before we pass the Budget, he can check some of those numbers again.
It’s probably my eyes but I just want to highlight the concern that the honourable Treasurer has tabled two different sets of budget numbers on Tuesday this week.

These are serious discrepancies and need to be explained or corrected before the Parliament can pass the Appropriation Bill.
The 2023 National Budget Appropriation Bill, the grant for General Public Service Expenditure of K24, 073,840, that was tabled on Tuesday by the Treasurer and the Appropriation Bill, of which the Capital Expenditure is K9,736,000 billion and the Operational Expenditure is K14,337,840 billion differs from the figures quoted in his budget speech and on Volume 1 and the rest of the budget documents.

Mr Speaker, these are serious and glaring discrepancies in the numbers.
The budget documents, volume 1, and others quote the figure of K24, 566,900 billion as total expenditures but the Appropriation Bill, the grant for General Public Service Expenditure has K24, 073,840 billion; this is a difference of K553 million.

The Appropriation Bill is less than what is in the Budget.

that is K60 million short in the Capital Budget and K493 million difference in the operational Budget.
Mr Speaker, the Government is asking the Parliament to approve and pass into law the Appropriation Bills for the recurrent and capital budget which is in total K553 million less than what is in the rest of the Budget.

Cuts will have to be made to the development budget totaling K60 million and to the recurrent budget totaling K493 million.

Which agencies will be affected and what projects in the PIP will be affected?
These are the significant adjustments and I want to highlight this before we proceed with passing these bills.

It would be important and respectfully, the Opposition would like to request that these are looked at before Parliament makes the decision at the end of the day.

Mr Speaker, I am concerned and want to proceed to my concern that relates to the health sector.

The good Treasurer has said that the Government has massively increased funding for health.
But funding for this sector has dropped by 7.1 per cent; that is K2,335.3 million in the 2023 Budget to K2,512.7 million in the 2022 Budget funding level.

So the funding for this sector has not increased but dropped.

Mr Speaker, we checked with the health sector and we note that there was lower appropriation for critical health programs in the 2023 National Budget.
Primary health and hospital services programs received low funding for next year and that is also the same for 54 health promotions, occupation, human resources development and support services; including health infrastructure programs for 2023.

In fact, some of the hospitals around the country will have their maintenance and infrastructure programs delayed or will be affected as a result.
41/08 Mr Speaker, these are some of the free observations I want to make and with all these adverse external developments and its impact on the PNG economy, the private sector and on our citizens.

I can say that 2023 Budget has fallen a bit short trying to insulate our people and the country from the adverse external conditions that Treasurer has highlighted in his speech.

While we acknowledge that the housing assistance package is intended to provide relief for PNG families.
Low wages earners are affected and packaging power of the pay packets have dropped.

We feel that more can be done, these are only temporary but the challenges are that many of our people who are affected are actually not on a regular payroll.

They are out there doing what they can to make ends meet and we are concerned about how all of this is going to affect them.

How can we address this for our citizens who are not on regular incomes?
How do we address the cause of inflation that is now in the country?

It is difficult to see how jobs will be created in the 2023 Budget and while we recognize that the external borrowing of K3.5 billion to fund the 2022 Budget deficit will provide temporary relief to shortages in foreign exchange.

We feel that more effort is needed to focus on supporting our export- oriented industries and not to kill them like the 70 per cent tax and 20 per cent additional tax imposed on the forestry sector.
We also acknowledge that K50 million has been allocated in the 2023 Budget for the Pacific Marine Industrial Zone or PMIZ Park in Madang and spreading over the next five years totaling K200 million.

Mr Speaker, on our side we would like to see that funding for the PMIZ to be front loaded, in order to complete the critical infrastructure investment in Madang.

Which has the potential to generate more than K8 billion annually and feed more than 15,000 jobs.
Furthermore, and contribute to the long-term roads and development sustainability not only for Madang Province, but moreover surrounding provinces and for the PNG economy as well.

Mr Speaker, according to the Government stating year fiscal plans.

The expenditure will be increasing over that period including personnel emoluments which is K6 billion in 55 2022, K6.8 billion in 2023, and will increase further as part of that plan to reach around over K8 billion in the short to medium term.
Therefore, we feel that it is prudent, we need to focus more in generating revenue internally and also creating foreign exchange through exports to meet this project expenditure increases and the impact of that on the country’s external position.

We are not getting any visibility on the low hanging fruits, namely, Porgera mine into production, Papuan LNG, P’nyang gas field, and Wafi-Golpu.
This creates much uncertainty and defense on getting these mines and gas to at least the construction phases so that we can be able to have a development path into the medium to long term.

So our Budget and medium-term fiscal projections can be met.

There is a lot more the Opposition expects out of the 2023 National Budget.

A lot of critical areas needing funding have been addressed by the 2022 Budget, that much we can recognize.
Mr Speaker, we strongly urge, however, that the Appropriation Bills that I have mentioned earlier can be re-looked at because the difference of K553 million is too significant to ignore.

Thank you, Mr Speaker.

Mr BELDEN NAMAH (Vanimo-Green) – Thank you, Mr Speaker, I would also like to debate on the 2023 Budget.

Mr Speaker, I see that it is a responsible Budget.

It is funding a lot of interventions by government aimed to grow our economy.
A huge funding has also been allocated to Police and I believe that before we talk about development in this country, we must first fix our law and order issues.

So, the decision made by the government to increase funding for the law and order sector, especially to the Police Force is very good.

However, the trend of hiring cars within the Police and Defence forces must completely cease.

42/08 The Government must put a stop to hiring vehicles.
A lot of funds we have allocated to the police and defence has been spent on hire cars and it is time to put a stop to it.

Mr Speaker, I don’t wish to prolong my debate however I wish to speak on one aspect of the budget which I believe will have serious implications on our country and will create collateral damage.

It is the increase of an extra 20 per cent for log export levy.

I have a very 56 big issue regarding that.


Last year, the Government increased the tax to 50 per cent and with a further increase of 20 per cent, this brings the log export tax to 70 per cent.

Mr Speaker, the Government is making a big mistake by adding the 20 per cent tax.
I don’t know if the Treasurer and the Budget committee had consultations with the National Forest Authority or forest industry or are we receiving advice from foreign consultants who are trying to influence our budget and our country’s tax system.

Mr Speaker, the Treasurer stated in his Budget speech that this additional tax is consistent with the Government’s objective to stop round log exports in the country and encourage downstream processing.
The intention behind this is to generate K30 million to put towards PNG United Nations Biodiversity and Climate Change Trust.

Mr Speaker, do we need to do that?

Do we need to increase 20 per cent extra tax on log export to get K30 million into the PNG United Nations Biodiversity and Climate Change Trust?

The PNG Government can do it better and smarter.

You appropriate K30 million and cater for that.

You don’t have to make this kind of decisions.


Mr Speaker, the effect of this decision will kill the logging industry in this country.\ Mr Speaker, the logging industry must be seen as a renewable sector.

Why do we find it easy to give exemption and tax concessions to multi-national companies in the extractive industry for the non-renewable sector and we find it easy to tax the renewable sector?

When we exempt the big companies in the mining sector and oil and gas sector.
When we exempt them from tax and give them tax concessions, it’s a drop in the ocean for them.

With this addition 20 percent tax on log exports the collateral damage is this, we will lose big time, landowners will lose big time in royalty collections which sustains them and we will lose more than 3000 jobs.
We have already lost 2600 jobs in the country in just one decision last year to increase the tax to 50 per cent and now with this additional 20 per cent increase resulting in a total of 70 per cent tax increase, this will cost a lot of jobs.

Mr Speaker, that’s a direct effect to the citizens of this country.

For the Treasurer to say that we have to put 20 per cent to make way for us to generate the revenue to pay K30 million to the Trust Fund is very irresponsible.
Mr Speaker, the logging industry has contributed immensely to the country.

Before the Marape-Rosso Government’s Connect PNG concept, the logging industry has been connecting the country and reaching the unreached.

Why are we penalising them heavily?

We should be seeing them as our strategic development partners in the country.

Mr Speaker, we can do it in a better and smarter way.

57 43/08 Mr Assistant Speaker, I see that with this decision we are going to kill the economy of this country as well.
Our Prime Minister has come up with interventions in the country.

He has created three new ministries by plucking them out from the Department of Agriculture and Livestock; the Ministries of Oil Palm, Livestock and the Coffee.

These Ministries are part of Forestry and you need to clear land to make way for them to plant oil palm, coffee and cattle rangers.
If you go on with this decision than the logging operation will stop and the ministries that Prime Minister has introduced and established in this country will not move.

That’s the reality and we want to grow the oil palm industry by planting five to ten million hectares of oil palm but how can we do that?

We need logging operators to be able to clear the land so we can be able to plant the cash crops.

The effect of this decision will stall the Prime Minister’s intention to grow the renewable industry.
Mr Assistant Speaker, I would like to recommend to the Government a few options that the Treasurer should have taken.

There is an existing NEC Decision by the then Minister for Forestry, Honourable Solan Mirisim, the NEC Decision No.139 of 2021.

There was a policy decision taken by the Marape/Rosso Government to reduce the tax from 50 per cent to 38 per cent.

And I believe that was the decision and it’s a responsible tax.
I would urge the Government to do away with the increase of the 20 and 50 per cent tax and implement the decision that has already been made.

Go back to 38 per cent log export tax.

Mr Assistant Speaker, if we continue with this, we will have reduced in log export development levy.

We will have reduced in our landowner’s earning royalty and they will pay tax.

But we have effectively affected that.


I would recommend that instead of the 20 per cent tax on the log export, why don’t we increase the log export development levy from K8 per cubic to K35 per cubic.

Mr Assistant Speaker, I recommend that instead of this 20 per cent increase in log export tax; we increase the royalties to the land owners.
There is already a decision by the then Minister to increase royalties; kwila from K35 to K42 and all the round logs from K35 to K42 and all other increases that the then Minister has intervened and proposed to the Government.

58 That is what we should be doing by putting more money into the pockets of our citizens by ignoring the high tax.

We should discourage this at all costs.

Mr Assistant Speaker, we should now think of operationalizing the state purchase option.
It’s already there in the Forestry Act, by giving power to the Minister for Forestry.

Mr Assistant Speaker, operationalize the state purchase option; 30 per cent of the round logs must be purchased by the State and processed also.

It’s captured in the law and we have so much law in the country but we lack enforcement.

We must enforce those laws, when you operationalize the state purchase option, you establish what we call a state marketing agency for the State.
We talk about downstream processing, all we want but if we don’t act, we are just making decisions that will continue to sabotage the growth of our economy.

The Agriculture and Forestry sector are industries that we should invest in to springboard the economy of our country.

44/08 These are areas that we should invest in and be friendly with.

We should make legislations that are user friendly and not harsh on our people.

Who gave advice to the Treasurer to increase tax by 70 per cent?
Did they consult the Department of Forestry or is he listening to foreign advisors?

We have to live a practical budget that will not affect the people of our country.

Mr Assistant Speaker, we need to grow our economy through our renewable sector.

Whilst we are enjoying the windfall from the extractive industry we need to get these monies and invest into the renewable sector.

That is the way to go because that is our future; renewable sector is our future and forestry is one such industry.
So if we are so concerned about climate change, why not we remove climate change from the Department of Environmental and Conservation and place it with the Department of Forestry.

If we are worried about round log exports, one recommendation is that we must enforce already existing laws for reforestation, put more money into reforestation by increasing the levies so that if they cut one kwila tree down they must be encouraged to plant two kwila trees as replacement.
We have to encourage all the logging operators to have nurseries to replace the existing logs that they are cutting down.

Mr Assistant Speaker, I would advise that Government stick to its policy decision No.

139 of 2021 that was made on 23 June 2021 as the tax regime of forest logging industry in the country.

I would also like to encourage that Government should look at increasing royalty rates, log export development levy rates, and benefits to the people.
59 I would like to acknowledge that the logging industry has built hospitals, schools and etcetera in the country so if this decision takes effect, all those schools and hospitals are going to shut-down because they cannot continue to sustain themselves.

I believe that this is an irresponsible decision.

Mr Assistant Speaker, I want to recommend that the Minister for Forest should take on board new legislations; where the logging operators should be asked to build all weather bridges.
These are interventions that we can make and not by giving a hefty tax.

There are better and smarter ways of skinning the cat rather than the cut-throat decisions.

This decision to increase the log export tax is irresponsible and I want the Government to go back to the decision that it already made on 23 June 2021, in its NEC Decision No.139 to reduce to 38 per cent on log exports.
Mr Assistant Speaker, I would like to urge the Government that while we are enjoying the windfall from our extractive industries, we need to and must grow our Sovereign Wealth Fund.

I recall last time we gave K5.6 million and that is a good start, but I have serious concern; why are we putting so much money in Kumul Petroleum Holdings (KPH).

What is it there for?


The original intention for all the revenue that come from the oil, gas and mining industries is for us to put into the Sovereign Wealth Fund so that we grow our economy for our future generation.

And, we also need to put money into agriculture and forestry.

Thank you, Mr Speaker.

Mr WILLIAM DUMA (Hagen-Minister for Sate Enterprise) – Thank you, Mr Speaker.

This K24 billion Budget is said to be the biggest and I say it is the right thing to do.
We are a growing country and we cannot listen to the prophet of doom who will say that this and that will happen.

45/08 This Budget is for 12 months only and it can be adjusted.

This Government has got a plan that is sensible, fair and balanced.

If we look at the Budget, it captures everything.

In terms of managing the Budget deficit, it will be lesser by a billion kina.

Deficit Budget are important and are necessary, if we have to progress as a country.
60 No country in this world are able to have surplus Budget every year, even the United States operates on a deficit Budget every year.

Our deficit percentage is minor compared to the percentage of the United States.

Therefore, it is important to have a deficit Budget.

When I see the Budget, it captures everything.


And as I have said earlier, there is nothing wrong with borrowing, if the intentions are correct and if we have a good Budget strategy management plans, we can borrow, as long as we know that we have renewable and non-renewable projects in the pipeline.

These will take years but when it matures, we will be able to repay.

Mr Speaker, ever since we became independent, we have never failed to repay our loans.
There has never been any default and we should be proud of these records.

To start with the important issue of law and order, is a reflection of a responsible government.

We have many different provinces with more than 700 languages and cultures, operating in a country that and is held together by the rule of law.

When we have a fastening law and order machinery, we will all advance.

I must acknowledge the government for doing the right thing by allocating a lot of money into this particular sector.
If we look at the law and order component, K401 million has been allocated.

That is the largest allocation in the Budget history of this country.

I don’t think we are on the wrong track because that money will be put to good use.

We have heard the Treasurer talk about increasing the size of our police force, for instance, from 4,000 to 5,000 to begin with.

We have also allocated money to the magisterial services.
Most of our people have their first encounter with the law from the village court magistrates, and later to the magisterial services in the urban areas.

If you look at the figure from the past, the magisterial services were dealing with K3 million annually.

This government has increased their allocation.

For example, there is also an increase of number of judges to manage our law and order sector.
We have helped the Judiciary by completing the payment for the very large Supreme and National Court complex.

The government has completed the payment and on top of that, we are increasing the Judiciary Budget.

When we have all these things lined up in the law and order sector, I think the government finally managed to get the balance right.
And in terms of infrastructure, $9.7 billion was allocated for the Connect PNG roads infrastructure, telecommunications, ports, schools, hospitals, power and water supplies.

We as a country going forward, must build those.

No one should complain about spending more money on those sort of things.

Every country has done it and I think we have got it right.
61 Mr Speaker, in the economic sector, the Prime Minister in his wisdom, for the first time, was able to announce four new ministries; Coffee, Livestock and Oil Palm.

That is the level where the bulk of our people are involved in.

The government for the first time is able to identify and selectively fund those ministries and try to invest money in those sectors.

Under this government, the Prime Minister has also created a new Ministry of International Trade and Investment.
We as a country do not operate alone, we need to establish and give considerate effort into international trade.

46/08 That is where we export our resources.

So, in terms of the creation of new ministry, I think we have done well for the first time since Independence.

We have tried to set the balance right, get it right, fund them properly and over the next 12 years, we make sure that our people enjoy the benefit that we all think they should be.
Mr Speaker, more specifically, in the case of SOEs, as you all know, the SOEs employ more than 7, 000 employees and their combined value is about K4 billion.

These are important resources we can’t ignore.

Take for example Singapore, although, a country with no resources like ours, they were able to transform their SOEs and they are now the much talked about and admired.

If we are able to set our plans correctly and get the basic things right, we should be able to get there.
It will only take a number of years provided that there are less political interferences, proper attention to budget frameworks, proper attention to the way we manage these companies, we should be able to get there.

I must commend and thank the Prime Minister and his Government for specifically allocating the much needed K200 million to the KCH group of companies.
Mr Speaker, they will enable us to fix all the rundown and aging infrastructures that we find in PNG Power, Telekom, Water PNG and the list goes on.

That money will be put to good use under a responsible government.

So, I think we’ve got it right and on top of that, we must not forget that two other SOEs especially, Kumul Mineral Holdings have been restructured and we think that they are at the better positions to actually return and extract from them.
However, the Kumul Petroleum Holdings continues to declare dividends after dividends.

So these things can happen when we have the right government in place with the right policies and support.

So, I think the decision by this Government to give due recognition to SOEs is a right step and actually a historic in the making.
62 Mr Speaker, we can talk about all of these, but when our young people are leaderless, and do not have much to do, we all know, they resolve to things like alcohol and this government has done the right thing by imposing more tax.

It will be difficult for our companies which import and sell alcohol at a price that can be economic for them.

In other words, indirectly discouraging the consumption of alcohol.
Mr Speaker, if we do not manage this important issue as a government, in every village in a society, we will have problems which will be caused by our youths who consume alcohol.

More importantly, we are also able to use the funding that were given to law and order sector, if we are able to control the way our young people consume marijuana.

Unless we are able to do that, we will have problems in our country.
You can have all the wealth and educate young population, but if we do not take care of the minority, they will continue to hold this country to ransom.

I think the government has done the right thing by making sure that we allocate funds to deal with that and also making sure that we increase the tax that is payable for alcohol consumers.
Mr Speaker, all of us are also equally as leaders are concerned about the levels of debts we increase as a government but as I said, as long as you have a comprehensive manageable debts strategy, we will be fine.

From the Budget document that I have, the Treasurer has done a tremendous job and I commend him for that.

This Budget has enough strategies to be able to help us manage and reduce our debts.

Mr Speaker, there is another historic and ground breaking decision this government has made.
Year in, year out, we hear about issues relating to settlements, land grabbing, lack of space in the urban sectors, and lack of land for large commercial agricultural projects.

This time around, this government under the leadership of our Prime Minister, has done the right thing and it has made a specific allocation of more than K100 million to help us manage the issue of land.
If we are able to use that money to acquire more land from our traditional landowners, we should be able to see the increase in the size of our urban centres in cities and towns.

47/08 Mr Speaker that is a step in the right direction.

If you look at the Budget, you can see that we have adequately allocated funding where we think is necessary to be able to enable us to manage ourselves.
To conclude, in my opinion it is a responsible, balanced and essential budget and finally when I look at the area where I come from, and I think I speak for all of us, our 63 Prime Minister is not obligated to allow to continue the practice of ensuring each of the electorates gets a minimum of K10 million plus additional funds for infrastructure projects.

These are not constitutional grants.


The only constitutional grants that we are entitled to as members is the DSG of K500,000 and for our Prime Minister to allow the continuation of that important program speaks volumes about this Government.

We care about each other, just like the Prime Minister and the Treasurer, this is a responsible Government and I think we are on the right track and I would commend this Budget.
Thank you Mr Speaker Mr RICHARD MASERE (Popondetta) – Thank you Mr Speaker for giving me the opportunity to debate upon the 2023 Budget.

Before I talk about the Budget that the Treasurer delivered today, I have two points to raise regarding the Opposition’s response on the Budget and I would like to put it to rest because sometimes the media can manipulate and twist it for their benefit of selling the newspapers.
Two things that it talks about is the rich black Christian nation as narrated by the Prime Minister, the opposition believe that it’s an imaginary thought.

When you look at it, in the Prime Minister’s statement, we are already a rich country, we’ve got land, we have a culture and that statement does not necessarily mean that we have money in our pockets.
It’s about building good health systems; it’s about building educational system; it’s about re enforcing our public structures and policies and whatever that we have put into place to curb issues that may destroy our country.

So those are statements that can sometimes be taken out of context but I believe that when the Prime Minister made that narrative, it is basically looking at it holistically, to make Papua New Guinea rich so that we have great health, education and good land.
These are all part and partial of making our country a rich Christian black nation.

So I would just like to make it clear so the Opposition can understand that, the narrative is a comprehensive narrative which covers quite a lot of areas when you want to consider us as a rich nation.

The other statement made was that business are downside.

The decision on business downside are business decisions and not government decisions.
These are decisions made by business communities based on external environment that is affecting their businesses.

You have Covid and post Covid impact still having an impact on businesses.

You have the Russia and Ukraine war still affecting businesses today.
The supply chain system, where one of the leaders had mentioned earlier where you can’t get a car now, you have to wait 64 for six months to twelve months simply because the supply system to provide that is all affecting business operations in the country.

So when businesses are down siding, it basically means that they are trying to maximize their profits.

So they are down siding so that the business survives and when the economy requires and the world recovers the world can expand again.
So I would like to just clarify that so that the Opposition understands that not only is the Government responsible for businesses.

These are business decisions that businesses make for the survival of the businesses.

48/08 Another thing I wish to speak on is in relation to the complaints made by the banks that the government has increased tax from the large profit tax which is called the corporate tax from 30 per cent to 45 per cent.
Realistically the initial amount that was imposed was K190 million, if I am correct, in this year’s budget.

If you look at the 45 per cent increase, it is about K235 million but when you compare that increase and the money that we add onto the budget goes to pay for things like the TFF, the school fee burden that we removed from parents.
If we look at it carefully, it is about K160 million that we are now taking away from the parents, we are taking just a little out of these businesses which I believe declare large profits.

What we take out from businesses and then apply it to the budget it helps our simple people who have bank accounts with big institutions and they get taxed for their account keeping fees and all that.
The simple people do not complain, so when we do such things in the budget, businesses that make huge profits should not complain because we are putting the money back into the communities to help our people who at the end of the day still go back and bank with them and still charge them all the little fees.
I wish to put it into context so that the Opposition understands that the Government is being responsible but at the same time not over doing it and working within a structure where it compliments all sectors.

I wish to take this time to congratulate the Treasurer and all the key ministers who were instrumental in putting this Budget together.
And I also want to acknowledge the public servants that have worked tirelessly in the last few weeks behind the scenes to make sure this Budget gets presented to the Parliament and we put a responsible Budget for our people to be able to benefit from next year.

I have worked all my life in the private sector and we have a general saying that; if you fail to plan, you plan to fail.

And if we do not put a budget in place, something that we can work off, then how are we going to change or move forward?
The Budget is a very 65 important asset of any business or any livelihood.

Individual families and any other person have to budget what is earned and spent.

The government has to do the budget so that we plan and execute the plan in the form of passing the Budget.

The Budget consists of how much money is being earned and what it will be spent on, taking into consideration if there is a shortfall or a surplus income.

If you want to buy a house the first thing the bank will ask you is your equity?
How much are you willing to put up to access the amount needed to buy your home?

You are required to have an income of some sort in order to access a loan to enable purchasing a home.

The government being responsible is taking the same measure and we have a revenue income and we know where we are making the money from.

But as the country continues to grow there is demand for a lot of services and goods, so we have to look for ways to try and meet the demands of the growing population.
Mr Speaker, if the revenue is insufficient there is nothing wrong with borrowing.

Borrowing is healthy as long as you can manage to repay the money borrowed annually and that is a responsible approach; if we do not have the capacity to pay then we should be attacking the government for borrowing but we are capable of paying and we are working within the means of that capacity and that is why we borrow.
I want to congratulate the Treasurer because he has gone out of his way to look at everything with good advice from both the private and public sector.

And input from people who have sound knowledge of the economy has seen the budget that we are speaking about.

A lot of us want to benefit from this Budget but we are not ready to put the money back into it.

49/08 It’s not only looking at feeding you but it’s also looking at how to grow that garden to feed us.

So, I thank the Treasurer and his team.


I just want to contribute on things which I am quite happy about.

I am also delighted on the money plan looking at assisting package for the house-hold.

When we look at it, many people in the rural communities, who are low income earners, K65 a fortnight may not sound a lot to us but to these simple people that’s an extra packet of rice, tin-meat, lunch money for the children; it goes a long way.
So, when such an intervention comes by increasing the threshold of people earning up to K20,000 and removing tax, it’s a good intervention by the Government.

But of course, the Opposition 66 will always have a different opinion about this and that’s their job to do that and we accept it.

It is good seeing them blessing this Budget.

I looked across and I thought that Christians are only sitting over there to bless it.

It’s good to see that they are Christians today and hopefully forever.
I am happy that the Government is putting more funding into law and order.

I’ve been someone who has been speaking a lot about it during the government caucus meetings and I think on couple of occasion on this Floor.

I just talked about it as well and am happy that the Government is addressing it now.

When we address law and order, our economy will grow, investors will come, people will feel that this is an environment to invest in.

So, when we address law and order that’s the way forward.
I want to encourage our law enforcement agencies, that we understand the challenges that you go through, but now receiving more money from the 2023 Budget, put it in the right place.

Investing it in the welfare of the police officers.

Let’s build some good houses for them.

Let’s increase the manpower, and start putting back where it really matters.

Forget about the hire cars.

I am happy that the Minister for Internal Security is addressing it.
That’s the way to go, when we address those basic issues we will have police officers who are happy, and we will find that they will do their job a lot better.

We are putting more money into agriculture and I am excited about it.

We know that 85 per cent of our people are rural based.

So, when we talk about agriculture, we are touching the heart of our people.
When we touch the heart of our people and get them actively involved in participating in growing the economy, there will be no need for our people to come to the cities.

Why?

Because there is money in the village.

If we look at our land, we got more land but less people working on the land.

Why?

Because we are not investing in agriculture.

When we start investing in agriculture, people start realizing that there is money to be made there.
So, I believe that when we look at agriculture as the way forward that’s the next economic boom; gas will go away, gold will go away, oil will go away, but agriculture will remain forever.

So that’s the next boom that we must concentrate on.

Let’s not talk about LNG, gold, and the non-renewable sector, but ratter let’s talk about renewable sector.

Agriculture is the way forward so, in order for us to export, there are a few things and I would like to encourage the good Minister to look into.
We are talking a lot about export but before countries import from us and we can export to them, there are certain food requirements or securities standards that we have to meet.

Like if we want to send food to 67 Australia, there is a food security or bio security that must be put in place, we must build these facilities to be able to justify for us to export.
We have people who are ready to supply cash crops but if we don’t build facilities to be able to bring it to that standard where all those countries expect than, we can keep talking about exporting but we will never get anywhere.

So, I want to encourage us all to build food security facilities so that we can start exporting to other countries.

Only when we do that, can we start looking at exporting our local produces and create employments.
Right now, we are putting our young people out into the social space but many of us are sending them to schools and oversea, but there is no future for these young people.

50/08 We should not only build food security facilities and improve some of the institution so that young people that are coming out of high schools and secondary schools.

Let’s also push them into the technical schools, and agriculture colleges.
Let’s start training and building our agriculture so that we can be able to export and create a lot more employment for our people.

There is another thing that I would like to encourage us to look at when we start looking at exporting our cash crops, that is we need to look at a container shipping in and ship-out policy so that when we build this food facility we tie it into businesses.
For example, if a business imports Chinese products to our country and that container sits as an empty container, what we need to do now is to ensure that the container is filled up with our agricultural produce when it is shipped back to China.

Let’s fill it up with what we can produce and ship it back to China.

In that way there is some kind of a chain of supply that is working in both directions and it is a win-win situation for everybody.
They bring in containers with their products into our country and we ship those containers back to their country with our cash crops.

So we must put in place a framework to be able to develop a policy that becomes a reality at the end of the day.

This is my brief contribution.

I want to thank the Prime Minister and the Government for the work being put into the Budget and I also want to thank the Government for the implementation of the 2022 Budget.
I am one of the recipient of the DSIP as a Member and I have been able to do a lot of things on the ground.

And you will note that for those of us who were re-elected back to Parliament, it was because the people benefitted from the projects we carried out.

Some of our fellow MPs did not return and that is good question to ask but if you check their accounts, many of our members did not do a lot of tasks on the ground and they left excess 68 amounts of funds in the district accounts when they exited.
So we cannot blame the government.

The Government has been giving DSIP to the members to make sure that we deliver projects on the ground.

I look forward for the next five years especially with the 2023 Budget.

I thank the Prime Minister and all the leaders and we look forward to working with you all to make sure that this Budget becomes a reality for every one of us.

Mr JAMES MARAPE (Tari-Pori-Prime Minister and Minister for Planning) – Thank you, Mr Speaker.
Before I speak, I apologise to the members, I know a lot of you are trying to speak as well but I was chosen to speak.

If it pleases the Parliament, we can continue debating however we are also coming back to Parliament on the 10th January.

Mr Speaker, if you indulge, I can ask if the debate on this budget can continue on in another form especially on matters on the outside to help us guide this ship together for the betterment of our country and our people.
Mr Speaker, I would like to thank the Treasurer for doing his job.

I also acknowledge the Shadow Treasurer from the Opposition.

We have taken note of his speech and some of his points will be taken into consideration.

I also acknowledge the statement of the Opposition Leader.

We will take it into consideration as well.

We also acknowledge all the commentaries made by members of Parliament.
In every Parliament Calendar, the Budget occasion is the biggest occasion apart from the formation of the Government because every budget is a culmination of what we have done so far and what we intend to do going forward.

So that is the clearest exposure on the Government’s policy intent.

When many say that the government lacks policies, the budget document is a statement of intent that we match with funding allocation so that next year’s work continues.
With that I thank the Treasurer, the Secretary for Department of Treasury Andrew Oeka with his team for their tireless efforts.

I also thank the Minister for Finance and Planning and the team at Vulupindi Haus the secretaries for Finance and Treasury and Planning 51/08 Mr Speaker, I also want to thank my team at the Department of the Prime Minister and National Executive Council, under the leadership of the Secretary Ambassador Ivan Pomaleu.
When we returned, we were able to look deeper into what the Department of Treasury were able to locate a billion kina extra to throw into what is now being found here.

69 I also want to thank all the hard-working officers from IRC and Customs who have worked very hard at this time.

As the former Prime Minister mentioned about increase in oil price.
Which is true but if we had no watch men and women and officers from IRC, who normally collect revenue on time, then this work would not have given a good result and we would not have received additional revenue for this year.

About K3 billion additional revenue was collected for this year; K1 billion extra came as a result of the efficiency from IRC and Customs.
And I really appreciate all the officers from IRC and Customs, under the leadership of Mr Sam Koim and Mr David Towe, which started to increase the efficiency in the system with much effort.

Therefore, as a result last year and the previous years, the Treasurer and the team from the government have given more support to them in the financial system down there to collect more money and I really appreciate them.
I also thank all our tax payers around the country, this year tax was paid accordingly and some of the successions that we have discussed on this Floor will be considered and spin into government policy processes and hopefully early next year when the government commences work, some of these consideration for revenue measure will be applied.

I want to sincerely inform the country on what we have committed for the people not during campaign but during the formation of the government.
We tried to translate and apply some of the main ideas in the budget including the recurrent activities and forecast on making the country moving in the right place.

When I first took office on 30th of May 2019, some of the punch lines we used were; take back PNG, making it the riches black Christen nation on earth, to indicate that we are working towards that space of bringing the economy to K200 billion within the next ten years.
Mr Speaker these speeches are not from me only but basing on the Vision 2050, which was launched by the Late Father Somare in 2009 or 2010.

He stated that by 2050 our country must be in the top 50 nation on the face of planet earth.

He talked about us being healthy, wealthy and wise.

So, what’s wrong with national leaders dreaming for their country to be rich?

What’s wrong with that?

Is being rich only for Australia, China and America?

A leader must dream for his country to be rich.


When we have all the natural resources like gold, oil, gas, copper, timber and so forth.

We made a national statement and that’s the destination our country must pursue.

We are trying to walk that path towards that destination and it’s stated in the Vision 2050.

70 We have condensed that in a ten-year program and by the end of 2029 to 2030, we must reach a K200 billion economy.
Mr Speaker, when we took office in 2019, our economy was a K80 billion and don’t down-play these statistics because the macro- economic framework inches on the size of the economy.

In 2018, it was a K80 billion economy and to be specific, it was a K79.6 billion economies.

Today it’s not my statistics but look at IMF report, they forecast the economy next year to be K113 billion.

In tough time using strategic deficit as a tool, we maintained a stimulus economy by keeping the economy functional.
The other alternate was simply folding your arm and do nothing but maintain a balance budget.

When you do that then we go into deeper recession.

Mr Speaker, a balance budget simply means, and I heard someone from the other side mentioning balance budget, you spend what you generate, and in 2019 we would have spent only K13 billion.

And the expenditure in 2019 before Covid-19 was around K17.8 billion.

And our revenue was at K13 billion only so what is the alternate.
You go out there on a sustainable deficit pathway and that’s what we embarked upon.

The situation got exacerbated when the Covid-19 struck us and so James Marape, Ian Ling-Stuckey or the rest of us were not responsible for Covid-19.

52/08 Mr Speaker, my colleague the Honourable Member of Ialibu-Pangia must be sick with Alzheimer or amnesia, this is the medical term for forgetfulness of the past, especially with what you did in the past.
Mr Speaker, there is a page and I quote; WWW.DEVPOLICY.ORG/PNGECONOMICS, this is a page where the Australian University and Papua New Guinea University have partnered to monitor the economy of Papua New Guinea is run.

It does not have a partnership with our Treasury but with the Australian University and Papua New Guinea to run our module from 2002 up to 2022.
This was the period that the Honourable Peter O’Neill was Prime Minister of the country, and during this entire period, he ran the country, we were in deficit.

I think the Honourable Member of Ialibu- Pangia has forgotten that we were in a serious deficit decline.

I can recall how stupid we were that it started amazingly, coincidently with the trigger of the UBS deal.

In 2014 when we were supposed to go out, we sank over K3 billion into a deal that was the biggest mistake in our country’s life.
And from that time on, instead of 71 recovering, we have spiral out of control into a deficit hole that we are now trying to dig out off.

In the last two years, the Covid-19 and the Ukraine War did not help, but let’s thank God that we are trying our best to come out.
This history will remain and it is not James Marape who wrote it, rather when you go to the Australian University, the NRI, World Bank, or IMF, you will see on record how the last government managed the economy under Honourable Peter O’Neill.

In the last three years, we have been trying to help to resuscitate the economy and direct it on the right track.

The 2023 Budget is trying to address a couple of things and keeping the economy alive is one of the major focuses.
There are some responsible budget indicators showing, we are earning more than 20 per cent of revenue but we did not increase the expenditure.

The Treasurer was responsible so he did not increase the expenditure by the same amount.

Rather, his increase was 20.9 per cent and the expenditure increased by 10.8 per cent, now you ask me where this balance went.
The balance went to the K1 billion slash in deficit at a K5 billion plus and now is at a K4 billion plus, all sticking to the main idea of coming back to a balanced budget by 2027 and moving into a positive transitory beyond 2027.

Mr Speaker, we are not economic imbeciles running this economy and I repeat we are not imbeciles running this economy.
To all my critics out there, not just my brothers in the Opposition, as they seem to be offering a fairer balanced view than the critics on the outside, read the numbers that are prevailing and don’t read fake news from Facebook or WhatsApp commentators, from some people trying to claim from the Government and just because we cannot pay their claim they sit on the other side mouthing off.
Look at the figures of the World Bank, ADB, and IMF during tough times against a global backdrop in which we are trying our best to maintain composure in our economy.

The problems that we are embarking on are simple like paying our bills, recovering areas, increasing allocation to the law and justice sector, paying our children’s school fees, making such our health programs are supported, are being run and the way we have delivered budgets in the last three years.
You will see gross in our headline numbers at a four per cent plus three years in a row, that is above global average.

53/08 Global average growth in tough economic times is below three per cent.

Our growth is above four per cent in tough times, and I want to commend the Treasurer and his team 72 for that.
You can run the economy in good times and siphon off money through schemes like UBS, but in tough times, you need real men to sit down and anchor the economy and ensure that we sail composed on calmer waters into the future.

The Treasurer has done very well.

His Budget is all about growing the economy.

Are you asking where in the Budget are you growing the economy?

I want to tell Papua New Guinea that a K100 million was given by the Treasurer to pay for lands.
I am sorry about the overcrowding in our cities due to unavailability of land thus causing our squatter settlements to be overpopulated.

Our Treasurer has allocated money to pay for land in our cities and towns, as well as to go into partnership with landowners.

Our landowners in Markham, Ramu, Sepik, East and West New Britain, and other coastal areas as well.

We want all of you to go into commercial agriculture, with that land money.

We have also put money in for state equity option.


A K100 million will be made available to anyone who wants to invest in forestry downstream, agriculture and any other business in our country.

The State has the partnership money put into the equity option funding.

For the economic sector; we would like to do away with the power outages and water supply problems.

No government in the past has put money into State-owned enterprises.
This government has allocated a K100 million for 2021 and 2022, and K200 million for 2023 for our State-owned enterprises.

In two to three years’ time, PNG Power outages will be a thing of the past.

This government is investing in needs that we have been carrying.

For so long, no one has made an attempt to fix those issues in a serious way.

We have been doing the same thing we have done in the last few years, by cleaning up everything.
Mr Speaker, the price support program, freight subsidy program and the SME program are still running.

I have received a text message from Mr Robin Flemming today.

He said we have given them only K200 million, but they have already earned K250 million from low lending SME rates from more than 200 Papua New Guinean businesses.

Mr Speaker, we have not just talked but have given money to grow our economy.
To talk about growing the economy, the infrastructures that we are building are geared towards unbundling and growing the economy to complement our focus in a diversified economy.

These are infrastructures that we want to run at the national level through the Connect PNG focus.

In regards to the statement by the Governor for Central Province about people building squatter settlements on other people’s land.

My sister, do not be worried about that 73 and the issue of inside migration.
As we worked the law and justice sector and the economy into the future, I am sure and certain going forward that these land will not be liabilities to our people in Central Province and other coastal areas.

These Connect PNG Program will be an asset to our country because when we link provinces up, we allow for trade and free- flow of goods and services.

For instance, the people of Morobe Province have been living with the people from the Highlands provinces for many years.
Lae has not always been in a serious crisis.

Police must step up to take on the law and order issues.

For the first time for Police, the Commissioner has been put on notice to deliver to this program of the government to rebuild the law and order and justice sector.

The infrastructure commitment is fixed, not just for the roads but also for major ports in our country like; Madang, Lae, Kimbe, Kokopo, Kavieng, Manus, Alotau, Popondetta, Wewak and Vanimo, they all have programs running.
I am yet to look at Kikori and Daru to lift up as well.

When we have done that, we will have almost a 100 per cent coverage in all our ports in the country linked and 54/08 I only have to look at Kikori and Daru to lift up and then we will have almost 100 per cent coverage in all the ports in the country linked and refurbished so that they can become bigger and better to carry the load in as far as our economy, commerce and trade is concerned.
So, Mr Speaker, I want to shift to Fisheries and Forestry in the Fisheries Industry, for the first time, money is being put into the Madang Maritime Industry.

This will carry on and of course, our other focus in other fisheries areas like Rabaul, Manus, and others for next year but the K50 million for PMIZ must get going at the very earliest.
In Forestry, I have heard some issues raised but I would like to assure the people in the forestry sector that in December or January we will consult and we will come and meet you.

You do not need to be afraid but join the government and partner with us to go big time into the downstream processing space.
We are not coming to kill you but we want to work with you so if you feel that this tax is high, the Government is opening up its arms in the downstream processing space and we will give first consideration to those of you who are already in our country.

We will look into other policies to protect landowner benefits so that it does not go down but it goes up.

If you feel that this tax is too high, the State will buy all the trees and 74 you just cut them down.
If your price is at $80 or $90, I will pay you that price; you just go ahead and cut it down so we will meet and discuss this.

The big price declaration for the last ten years, I know about, so I will pay you that price.

The State will exercise our State Marketing Option Rights next year and we might expand so whatever you are cutting you do not need to ship but send to me, the State log pond and you go back and I will deal with my landowners and provincial governments.
So, we will go into that space but I want to assure the forest industry, that it may seem tough on you but hold on to your horses as we will sit down together and have deep conversations on this matter.

The Treasurer was not wrong in making this as it could be a jump-start or jot for downstream processing to take place at its very earliest.

I said that in 2025, we will move into this space but we are maybe jump-starting this sector to see what we can do.
I will have a session with the Minister for Forestry and Treasurer.

We do not mean to kill you but we want to encourage you to grow together.

Our focus on SMEs remains and I want to ask all our landowners; whether you own the land, fish, gas, or agriculture, don’t just sit and fold your hands, like some think-tank in Port Moresby but go back to what you own.
There is K200 million allocated to this sector and we are going to look at the policy so that we can create easy accessibility for ordinary Papua New Guineans and our partnership with BSP or NDB.

We are also looking at expanding this program to other lenders in the country so I want to assure the landowners throughout the country that if you want to go into the SME space, together we can partner and grow our businesses.
Mr Speaker, I am just running up a crazy number in my head, what if one million Papua New Guinean families can produce K10,000 worth of agriculture?

We think that agriculture is hard but it’s very easy; to get K10,000 worth of coffee is only 15 kilograms bags at the present price.

Now, if 1 million Papua New Guineans go into that space and produce so we buy in the districts and they produce at a minimum of K10 million each, that will be a K10 billion economy we are building right to our people.
Mr Speaker, we are paying for education from elementary right up to university, we have built hospitals and roads but I would like to ask this question, we have already removed tax from the low-income earners up to K20,000 so what else can we do to help ourselves when the government has already allocated money to support to pay for the right price?

The government has also put money to subsidies transport to the market place?
I would like to ask our people to contribute to the economy by working on the land.

And I 75 also ask the provincial members to show a keen interest in having buying points in your district and let us participate in this sector.

55/08 Mr Speaker, all manners of allocation we have made in our budget is intended to making our country bigger and better as we grow forward.

We have assisted household incomes, giving subsidies to parents.
We have given over a billion of assistance since last year up till this year.

And this shows that we are ready to work.

I conclude by asking this question, a big allocation will not prosper unless it is checked properly.
I want to give assurance through this Parliament and to the people of this country that we will resuscitate the National Monitoring Authority to work with the central government and the provincial governments, to check if intentions for our programs to be run around the country will be initiated next year.

And if the work is done properly, it should set the pace for 2024, 2025, 2026.
I look forward for 2023 Budget being a trigger of further expansion of our economy, especially shifting away from just relying on oil and gas and go further into other sectors of the economy that is our inherent strength.
I ask the members of Parliament whilst the treasurer may not have presented the perfect budget to our liking, but within the circumstances that he was faced within the envelope of resource we have, within the focus of government we have, in terms of what we want to do for the country to make our economy bigger, to make our health more improved, focus on bringing more of our kids back to school, focus on connecting PNG, to focus on a better law and order environment the treasurer has structured this budget.
We will have the National Monitoring Authority to review the pavements of the budget next year.

I ask the honorable members of Parliament that it is a fair budget considering whether you are in the opposite or government side, we try to be fair on everyone.

We will we will retire our full commitment for 2022, as we have done in the last few years and we will focus on delivering the 2023 Budget on the word go from day one, 1st of January 2023.

We will try get this Budget being ticked off.


Let’s support our Treasurer, it is not over emphasized.

With our oil price, we will focus on $82 dollars next year.

On our gold price, there will be a modest focus next year and there is enough space to cater for buffer.
If it gets harder next year, this budget has enough versatility and flexibility to address it if the economy goes bad but if the economy goes good as forecasted for next year, we hope that this Budget will carry us to a better, safer time in the closure of next financial year.

76 Mr Speaker, let me say thank you very much to yourself for hosting us this year.
A little bit of increase to you as you run a Parliament next year and there’s a little bit of increase to the Judiciary as our court systems and magisterial services run our court systems next year.

There’s a little bit more to our relatives in Bougainville to honor their full commitment and we and our external services have increased to pay for all our foreign services so that they don’t shutdown their keep, and they are functional.
All in all, this budget tries to honor all our inherent needs as well as our future needs Mr Speaker I commend this Budget to this House to support and we will work with you all.

Mind you if anything needs to be addressed, the Treasurer always has Section 4 powers in the Public Finance Management Act to handle them going forward.

Thank you, Mr Speaker.

APPROPRIATION (GENERAL PUBLIC SERVICES EXPENDITURE 2023) BILL 2022 Debate resumed from 29 November 2022 (see page…).
Second Reading Motion – That the Bill be now read a second time – agreed to.

Bill read a second time.

56/08 Message From The Governor-General A message from His Excellency, the Governor-General dated 28 November 2022 was announced recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

77 Third Reading Leave granted to move the third reading forthwith.
Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.

Mr Speaker, I want to thank my friend the shadow Treasurer and my best friends on the other side of the House and to a lesser extent the Leader of the Opposition for the very eloquent misdescription of the 2023 Budget.

If you google the meaning of the word ‘misdescription’, it means inaccurate and misleading.
Inaccurate because the shadow treasurer claims to have analyzed the 2023 Budget and I found it to be full of errors and absolutely confusing and I quote; ‘When one considers that it will cost K13.9 billion to run the entire government system,’.

It is clearly stated in the budget that it is K24.5 billion and I heard so many other speakers say it this afternoon so, I do not know how he did not hear it.
I continue to quote; he claims that we only have K5.6 billion available for other things like debt servicing.

Wrong again, if you have a look at the budget documents, the debt servicing this year presented to this House is K2.5 billion.

He goes onto say that we only have K5.6 billion available for new capital investment, wrong again, our new capital investment is far higher than K5.6 billion, it is K9.7 billion.

That is double the K4.5 billion that this government inherited from the other guy.
I say it is misleading because the Leader of the Opposition claimed this afternoon that the honourable Treasurer has tabled two different sets of budget figures this week.

There is no need to be confused.

And there are absolutely no discrepancies in the Budget this afternoon that we are asking Members to endorse.

Mr Speaker, I say this because as we all know that when we enter this House and we are asked to pass the budget, we are given a copy of three appropriation bills.

And they were presented today.


There is absolutely no ambiguity.

We were presented this week with these documents that clearly spells out three appropriation bills; one for the public service, one for the National Parliament and one for the Judiciary.

We spent many days and nights putting these documents together and chose one of the nicest photos we have seen in a budget document in a long time.

The numbers here are the numbers that I will ask the House to endorse.
If there is any doubt in this House that the 78 numbers are perhaps inaccurate, let there be no doubt because this particular document is supported by a certificate of necessity.

57/08 This certificate was also endorsed by our first legislative council and I quote ‘I certified that I have drafted the following Bills in accordance with a National Executive Council decision number; NG44 of 2022, dated the 15th of November’.
Finally, Mr Speaker, I want to assure the Members of this House that this is a realistic, accurate, and a good Budget.

I say this because a good Budget is underpinned by an accurate revenue and the track record of the Marape/Rosso Government in relation to revenue is clear for all to see.

It has been commended by many commenters including our international partners.
Mr Speaker, to conclude our track record on the revenue in our 2019 Supplementary Budget, we took over in May of that year we focused revenue at K13,022.

Our Final Budget Outcome numbers for 2019 was K13,680; we were above revenue projections by K658.

In 2020 this House budgeted a focused revenue of K14,095 million, then we were hit by the pandemic.
You all will recall during this time there was a cut in our revenue of K2.7 billion, it ended up being 2.5 and then we argued for two years whether we should cut the Budget by K2.5 billion or whether we should borrow.

It was a big decision for this Government and myself as Treasurer.

It was a decision that I alone could not make, so I put my hands up and I asked for help.
I sort the advice of many commenters including our international partners and bilateral partners that have been supporting us for so many years.

Their advice was clear; take the borrowing, but don’t go for the commercial expensive stuff, go for good, cheap, and reliable financing.

If we didn’t, we would have gone into a recession and lost over 400,000 jobs; companies would have gone not just into the red but even today would still be repaying their loans.
Mr Speaker, we then in 2020 revised our K14,095 million revenue focus to K11,359 million.

The FBO came home at K12,093 up to K734 million.

Mr Speaker, in the 2021 Budget, we approved a focused revenue in this House of K12,995 million.

Our FBO came in at K13, 860 million, revenue projections up again to K865 million.

This year, this House endorsed a revenue projection of K16,190 million, our latest MYEFO figures that we presented in this House, our revenue was K17,389 million up to K1.1 billion.
79 Mr Speaker, our track record on revenue is second to none.

We have been accurate, we have been conservative and we have been reliable.

Mr Speaker, again I commend this Budget to this House.

Thank you.

Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.

APPROPRIATION (NATIONAL PARLIAMENT 2023) BILL 2022 Debate resumed from 29 November 2022 (see page…).
Second Reading Motion – That the Bill be now read a second time – agreed to Bill read a second time.

58/08 Message from the Governor-General A message from His Excellency, the Governor-General dated 28th November 2022 was announced recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

Third Reading Leave granted to move the third reading forthwith.
80 Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.

Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.

Mr SPEAKER – Before I call on the Clerk again, I would like to say this to the Treasurer, I understand the Appropriation Bill for the Parliament has just been passed but I want to stress that the Treasurer must not take Parliament as just another Department of the Government.
Thank you (Laughter – in –the Chamber) APPROPRIATION (JUDICIARY SERVICES 2023) BILL 2022 Debate resumed from 29 November 2022 (see page…).

Second Reading Motion (by Mr Ian Ling-Stuckey) agreed to – That the Bill be now read a second time.

Bill read a second time.


Message From The Governor-General 81 A message from His Excellency, the Governor-General dated 28 November 2022 was announced recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

Third Reading Leave granted to move the third reading forthwith.

Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.
Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.

NON-TAX REVENUE ADMINISTRATION BILL 2022 Debate resumed from 29 November 2022 (see page…).

Second Reading Motion (by Mr Ian Ling-Stuckey) proposed - That the Bill be now read a second time.

Motion – That the bill be now read a second time – put Motion – That the question be now put – agreed to.

82 Bill read a second time.


Message From The Governor-General A message from His Excellency, the Governor-General dated 28 November 2022 was announced recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

Third Reading Leave granted to move the third reading forthwith.

Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.
59/08 Motion – That the bill be now read a third time – put.

The Bill requiring an absolute majority of 59 Members as required by the Constitution, the Speaker ordered that the Bells be rung.

60/08 The Parliament voted (the Speaker, Mr Job Pomat, in the Chair)- Bill read a third time.

Ayes – 86 Noes – 0 83 CUSTOMS TARIFF (2023 BUDGET) (AMENDMENT) BILL 2022 Debate resumed from 29 November 2022 (see page…).

Second Reading Motion (by Mr Ian Ling-Stucky) agreed to – That the Bill be now read a second time.
Bill read a second time.

Message From The Governor-General Honourable Members, I have to announce that I have received a message from His Excellency, the Governor-General dated 28 November 2022, recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition and expenditure.

Third Reading Leave granted to move the third reading forthwith.
EXCISE TARIFF (2023 BUDGET) (AMENDMENT) BILL 2022 Debate resumed from 29 November 2022 (see page…).

Second Reading Motion (by Mr Ian Ling-Stucky) agreed to – That the Bill be now read a second time.

84 Bill read a second time.


61/08 Message From The Governor-General As message from His Excellency, the Governor-General, dated 28 November 2022 was announced commanding the imposition and expenditure of public monies of Papua New Guinea in accordance with section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

Third Reading Leave granted to move the third reading forthwith.

Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.
Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.

INCOME TAX, DIVIDEND (WITHHOLDING) TAX AND INTEREST (WITHHOLDING) TAX RATES (2023 BUDGET) (AMENDMENT) BILL 2022 Debate resumed from 29 November 2022 (see page…).

Second Reading Motion (by Mr Ian Ling-Stuckey) agreed to – That the Bill be now read a second time.

85 Bill read a second time.


Message From The Governor-General A message from His Excellency the Governor-General dated 28 November 2022 was announced recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

Third Reading Leave granted to move the third reading forthwith.

Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.
Motion – That the question be now put – agreed to Motion – That the Bill be now read a third time – agreed to Bill read a third time.

INCOME TAX (SALARY AND WAGES) (RATES) (2023 BUDGET) (AMENDMENT) BILL 2022 Debate resumed from 29 November 2022 (see page …).

Second Reading Motion (by Mr Ian Ling-Stuckey) agreed to – That the Bill be now read a second time.

86 Bill read a second time.


Message From The Governor-General A message from His Excellency the Governor-General dated 28 November 2022 was announced recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with section 210 of the Constitution insofar as the Bill relates to and provides for such imposition.

Third Reading Leave granted to move the third reading forthwith.

Motion (by Mr Ian Ling-Stuckey) proposed – That the Bill be now read a third time.
Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.

62/08 INCOME TAX (2023 BUDGET) (AMENDMENT) BILL 2022 Debate resumed from 29 November 2022 (see page …).

Second Reading Motion (by Mr Ian Ling-Stuckey) agreed to – That the Bill be now read a second time.

Bill read a second time.


87 Message From The Governor-General Honourable Members, I have to announce that I have received the message from His Excellency, the Governor-General dated 28 November 2022 recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition and expenditure.

Third Reading Leave granted to move the third reading forthwith.
Motion (by Mr Ian Ling-Stuckey) proposed – I move – That the Bill be now read a third time.

Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.

CUSTOMS TARIFF (AMENDMENT) BILL 2022 Debate resumed from 29 November 2022 (see page …).

Second Reading Motion (by Mr Ian Ling-Stuckey) agreed to – That the Bill be now read a second time.

88 Bill read a second time.


Message From The Governor-General Honourable Members, I have to announce that I have received the message from His Excellency, the Governor-General dated 28 November 2022 recommending the imposition and expenditure of public monies of Papua New Guinea in accordance with Section 210 of the Constitution insofar as the Bill relates to and provides for such imposition and expenditure.

Third reading Leave granted to move the third reading forthwith.
Motion (by Mr Ian Ling-Stuckey) proposed – I move – That the Bill be now read a third time.

Motion – That the question be now put – agreed to.

Motion – That the question be now read a third time – agreed to.

Bill read a third time.

MOTION BY LEAVE Mr RAINBO PAITA (Finschhafen – Minister for Finance and Planning) – I ask leave of the Parliament to move a motion without notice.

Mr Speaker, this motion is in relation to the need for us to amend the Civil Aviation Act Bill 2022.

89 Leave granted.
89 Leave granted.

SUSPENSION OF STANDING ORDERS – REARRANGEMENT OF BUSINESS PRESENTATION OF CIVIL AVIATION AMENDMENT BILL 2022 Motion (by Mr Rainbo Paita) agreed to – That so much of the Standing Orders be suspended as would prevent the Minister for Transport and Civil Aviation to present the Civil Aviation Amendment Bill 2023 forthwith.

CIVIL AVIATION (AMENDMENT) BILL 2022 First Reading Bill presented by Mr Walter Schnaubelt and read a first time.
Second Reading Mr WALTER SCHNAUBELT (Namatanai – Minister for Transport and Civil Aviation) – I ask leave of the Parliament to move the second reading forthwith.

Leave granted.

63/08 Mr Speaker, it’s a sad day for PNG and I as Minister for Transport and Civil Aviation have to return here today to pass another CASA Amendment Bill 2022 because FLC deliberately misplaced the National Airports Corporation Section 147 from the previous Bill I presented earlier this week.
What we passed earlier during the week was Section 143 which relates to NiuSky Pacific Limited only and not NAC.

I am now here to present Section 147 which relates to specifically National Airports Corporation Limited.
The Proposed Bill is to include the new provision pertaining to the 90 leave of absence of the directors of the Board, Section 147 (a)(c), resignation from office Section 147 (a)(d), vacation of Office Section 147(a)(e), appointment of Managing Director and Acting Managing Director Section 147 (a)(f) and Section 147 (a)(g) of the National Airport Corporation.
The National Airport Corporation is a state aviation enterprise established under the Companies Act 1997 pursuant to Section 132 of the Civil Aviation Act as amended 2000.

The Government must make certain there are mechanisms in place to ensure entities within the Civil Aviation remains compliant with the Aviation safety and security standards.

Mr Speaker, I commend the Bill to the Parliament.

Motion – That the question be put – agreed to.

Motion – That the Bill be now read a second time – agreed to.
Bill read a second time.

Third Reading Leave granted to move the third reading forthwith.

Motion (by Mr Walter Schnaubelt) proposed – That the Bill be now read a third time.

Motion – That the question be now put – agreed to.

Motion – That the Bill be now read a third time – agreed to.

Bill read a third time.


91 Mr RAINBO PAITA (Finschhafen – Minister for Finance and Implementation) – I would like to thank Mr Speaker, Assistant Speakers, Clerk of Parliament and all staff of the Parliament who have been with us for the last two weeks to ensure we pass the Budget today.

64/08 All Assistant Speakers, the Clerk and his deputy and all staff of the Parliament who have for the last two weeks to ensure that we arrive at this point where we pass our Budget for 2023.
On behalf of the Government, I wish to say thank you and I note your last comment that you referred to the Treasurer, that sometimes we treat the parliament as a department.

Thank you to the Chair for sitting right through with us today to complete the process of the budget.

The hardworking staff in the Parliament under the leadership of the Speaker and the Clerk.
I also wish to convey my sincere gratitude to the Opposition for giving very critical criticisms to the Budget and for agreeing and voting to pass the budget.

This is how we should demonstrate our leadership; despite our differences in opinion on certain issues but we should always find ways to compromise and work towards achieving good for our people.

Thank you especially to the Leader of the Opposition and his deputy as well as the leader of the PNC party.
Thank you to the Government especially the leadership shown by the Treasurer for taking us through the Budget.

And also thank you to the Prime Minister and the leaders of his Cabinet for those Ministries that have contributed towards the makeup of the budget and also our coalition partners for believing in us and for standing by us.

Thank you to the Leader of the URP party and the Minister for State-Owned Enterprises for your support.
Thank you to all the party leaders and the Ministries for supporting this budget.

I acknowledge the support in any ways, either big or small that you have shown to bring us this far.

We can see that we have to now work together to implement the budget for next year.

Thank you to everyone who has sat through this session for us to pass the budget.
To the media, you might see some of our seats are empty and be thinking where these Members are but I want to assure you that most of our Members were conflicted because of their running election petitions, court cases; where they have to be physically present.

If you see that your Member is not present but they had to attend to court cases in progress even during the budget.
92 Thank you all once again and we look forward to working together, going forward in the next few days and next year to strengthen and develop our people and our country.

I wish to take this time also to wish all of us to take care as we are now in the festive period; do take care and celebrate safely with your families and communities.

As Members of Parliament we have taken on the responsibilities of our people on our shoulders, let us be mindful of our responsibilities and take extra care this period.
I invite everyone to a cocktail reception at the Hilton to celebrate the passing of this budget.

ADJOURNMENT Motion (by Mr Renbo Paita) agreed to- That the Parliament do now adjourn The Parliament adjourned at 4.30 p.m. 93