O’Neill warns of cuts
Source: The National, Tuesday August 07th, 2012

GOVERNMENT departments and agencies can expect cuts, restructure or outright abolition, Prime Minister Peter O’Neill told heads of departments in a meeting yesterday.
This is a result of a revenue shortfall of K500 million and cost over-runs in the general election.
O’Neill and his caretaker ministers were informed by Treasury Secretary Simon Tosali that revenue might fall by about K500 million due to fall in commodity prices and the appreciation of the kina against the US dollar.
A detailed report on the performance of the 2012 budget would be presented to cabinet when it is ready.
O’Neill and his caretaker ministers met with all departments and urged them to work harder and be prepared for austere measures to be announced with the budget.
“We have to roll up our sleeves and work harder.
“We have to be prepared to put in the long hours.
“You (public servants) will sack yourselves if you are not prepared for this,” the prime minister said.
The heads of departments, led by Chief Secretary Manasupe Zurenuoc, assured O’Neill they were ready to work with his government.
The prime minister asked for the meeting to outline the broad policies of his government and what he expects from the public servants.
He said the LNG project promised a lot for the people, but there were dangers of missed opportunities.
“If we miss out, that will be because you and I have not been doing our jobs,” he told the public servants.
“We have spent billions of kina in education and health, but we are not making a difference. There is something wrong. That is why I am asking for the extra effort.”.
The prime minister is expected to announce his full cabinet tomorrow.
Caretaker ministers who attended the meeting included Don Polye, Patrick Pruaitch, Charles Abel, Ben Micah, Mao Zeming, Sir Puka Temu, William Duma and John Pundari.

“We have spent billions of kina in education and health, but we are not making a difference. There is something wrong. That is why I am asking for the extra effort.”

The above statement is what O'Neill was really concerned about -- the failure of the bureaucracy to deliver on education and health distribution to the people.

I don't think his statement had much to do with "missed opportunities" related to the PNG LNG development project.  The bureaucracy didn't screw up the PNG government's financing deal on their portion of the PNG LNG project.  That was done by Arthur Somare, with little consultation with anybody, based on what I think I've read.

VS

(08-08-2012, 06:17 AM)Getitrt2 Wrote: your opinion reading between the lines?

Absolutely, I like to put my conclusion in the title of my post, so you can make up your mind whether or not to read the whole article...

Apart from the fact that Duma has effectively delayed the Gulf project, he didn't pay DPE's bills and basically closed down the office, including phone lines and website. PNG needs money, the government bureaucracy is a mess and many bureaucrats like to have a free lunch.

If O'Neill is truly committed to a Sovereign Wealth Fund kind of philosophy, he must thoroughly reorganize PNG's key ministries and related state enterprises. Treasury and Planning should rule; the other buggers should follow.

So, if O'Neill choses to reassign Duma, which I would find a stupid decision, I expect the PM to reign in this zebra minister, reorganize DPE / Petromin, and subordinate these agencies to higher powers. Let business do its business.

Best,

Petro

'Petrovale' pid='7799' datel Wrote:

'Getitrt2' pid='7798' datel Wrote:your opinion reading between the lines?

Absolutely, I like to put my conclusion in the title of my post, so you can make up your mind whether or not to read the whole article...

Apart from the fact that Duma has effectively delayed the Gulf project, he didn't pay DPE's bills and basically closed down the office, including phone lines and website. PNG needs money, the government bureaucracy is a mess and many bureaucrats like to have a free lunch.

If O'Neill is truly committed to a Sovereign Wealth Fund kind of philosophy, he must thoroughly reorganize PNG's key ministries and related state enterprises. Treasury and Planning should rule; the other buggers should follow.

So, if O'Neill choses to reassign Duma, which I would find a stupid decision, I expect the PM to reign in this zebra minister, reorganize DPE / Petromin, and subordinate these agencies to higher powers. Let business do its business.

Best,

Petro

Petrovale,

I like the thrust of your statements, and it would be fantastic if he could do this from the get-go.

Unfortunately, I suspect he'll not be that radical to start with, and that may dim the possibility that your end result could be achieved.

I'm rooting for your outcome and agree that it would be a very bad move (and bad sign) to reappoint Duma to DPE Minister or the equivalent.

We'll probably know a lot and can read the tea leaves by tomorrow.

VS