Patrick Pruaitch

When responding to Grand Chief Sir Michael Somare’s questions on the provincial quarterly grants, Pruaitch said the Government will still give the funding to the provinces.

Pruaitch said given the cash flow problem the country is facing, the revenue coming into the Government coffers are a concern.

“Therefore, we have taken measures to control the spending and the release of funds to the provinces,” he said.

“The Government is working to ensure that the commitments made in 2016 Budget will be fully funded before the end of December.”

The Treasury Department’s 20-16 Mid-Year Economic and Fiscal Outlook, provided early warning signals on the need for an urgent Government action on a sustainable budget.

In a statement this afternoon, Treasurer Pruaitch said an urgent early Supplementary Budget will demonstrate the Government’s commitment to prudent and disciplined fiscal policy, and maintenance of macro-economic stability.

Treasury Secretary Dairi Vele has recommended that the 2016 Budget spending be reduced by 1.9 billion kina to bring it in line with revenue shortfalls.

He said this is the reason for NA to support the present Coalition Government and to oppose the no confidence vote in Parliament on Friday.

“Until today it pains me to think of the events that occurred when former Prime Minister Grand Chief Sir Michael Somare, NA’s founding foundation member, was thrown out of office. As the record stands today, that was an illegal act which was twice declared unconstitutional by the Supreme Court.”

In a press statement issued from Alotau, National Alliance Parliamentary Leader Patrick Pruaitch reconfirmed on Tuesday evening it would vote against the Opposition sponsored motion.

Pruaitch also made it clear that any decision by an individual member of the party to deviate from this collective position is his own and it does not in any way represent the position of the Party.

Speaking at Grand Chief Sir Michael Somare’s 80^th birthday celebrations in Wewak, East Sepik Province last weekend, Pruaitch said, it is about time Sir Michael’s current and former parties get together and work as one to carry on Sir Michael’s legacy.

Pruaitch is currently the leader of the National Alliance Party of which Sir Michael was part of.

The review commenced in 2014 and is expected to be completed by 2016 and a report presented to the Government for appropriate action.

The papers are entitled “Consumer Protection and Fair Trading” and “Regulated Industries”.

Pruaitch said the Consumer and Competition Framework Review is part of the Government’s ambitious reform agenda which will continue throughout 2016.

He said the issue papers seek views of stakeholders on various issues.

Committee Chairman Sir Nagora Bogan in a formal ceremony handed volumes 1 and 2 of the TRC reports to the Treasurer Patrick Pruaitch.

The report is the culmination of an intensive, robust, open and transparent consultation with a wide cross-section of stakeholders, workshops and technical summit, empirical analysis, diagnostic reviews, and comparative benchmarking with international best practices.

The review was conducted over a period of 26 months from Sept 15, 2013 to Oct 24, 2015, but was delayed by eight months due to bureaucratic ineptitude and red tape.

Chairman Sir Nagora Bogan when presenting the Taxation Review to the Treasurer Patrick Pruaitch today, says the review recommends that the current tax free threshold of K10,000 be increased to K20,000 as the budget condition allows.

He said the cost to revenue of a threshold of K20,000 is estimated to be about K560m assuming no other changes to marginal tax rates.

He said increasing the tax free threshold to K15,000 is estimated to cost K283 million.