NIP Governor explains spending

The New Ireland Governor has explained how Namatanai District missed out on Old Age & Disabled pension and also detailed how the royalties from the Lihir Gold Mine have been used for the past ten years.

Sir Julius Chan was responding to remarks by the Tanir LLG president, Alfred Lafen.

During the last Provincial Assembly Meeting, Sir J said: “The Member for Namatanai has made statements to the press that my Government has misused the royalties, and he has said that Namatanai has not received its share of royalties from my Government. 

“This new member, (Walter) Schnaubelt, was not there when my PPP (People's Progress Party) government, represented by Ben Micah and Byron Chan, made the JPP-BPC (Joint Provincial Planning/Budget Priority Committee) resolution on generous distribution of royalties.”

Sir Julius said in fact, both Namatanai and Kavieng districts had received more than their fair share. 

“The original Lihir MoA says that the 50 percent of royalties come to the Provincial Government, and that was the way the NA government treated royalties under Ian Stuckey.

“It was my Government in 2007 supported by both open members resolved that 20 percent should be spent in Namatanai District, 20 percent in Kavieng District and 10 percent should stay with the provincial government for administration.

“The total royalties from 2008 through 2017 has been worth K208 million.  That means that K83.2 million should have been spent in each of the two districts and K20.8 million should have stayed with the provincial government.”

What actually happened was that each district got more than K100 million.  For example, Namatanai District got over K105.5 million:

  • K30.6m in free and subsidised education payments,
  • K4.7m in school rations,
  • K19.66m in old age and disabled pensions,
  • K16.4m in ward level projects,
  • K6.64m in roof over heads,
  • K2.75m in sweat equity
  • K3.3m in the Government/Church Partnership. 

In addition, from 2008 through 2012, K21.54m was delivered directly to the District Treasury, stated Sir J.

“So Namatanai District actually received K105.59 million in ten years, which is K23 million more than they had any right to receive in royalties, and this does not take into account Tax Credit projects that my Government fought very hard for with the overwhelming majority, of 94.5 percent going to Namatanai district alone.”

Sir Julius also pointed out that the Lihir MoA says royalties are to be spent pursuant to the District and Provincial Development Plans. 

“Neither Member has bothered to attend JPP-BPC to formulate a District Development Plan, so we have spent the funds pursuant to the Provincial Development Plan. Instead they have used their time to take government to court.”

In summary, Sir J said: “The bottom line is that not only have we spent a huge amount of royalties in Namatanai – and Kavieng – districts, we have also spent on impact projects unequalled over the past 50 years. I challenge anyone to compare PPP’s work against the empty promises of National Alliance.

“The two previous Open Members acknowledged that my Government spends money on delivering services and projects to the people, whilst they supported government with their DSIP, knowing well that money in the hands of my Government was safe and as Regional Member representing both Kavieng and Namatanai, our schools flourished, infrastructure such as roads, bridges and Ward Level projects reached out to the most remote parts of New Ireland.

“The new member should study our last 10 budgets before making political comments in and outside of the Assembly,” said Sir J.

“New Ireland i go pas! All of our policies and election promises have survived 10 solid years and continue to excel, even while the rest of the country has gone to sleep.

“Let’s stop playing political point scoring and focus on the work going on around us.”

(File picture of Sir Julius Chan, left, during a previous provincial meet)

Author: 
Press release