TREASURER Ian Ling-Stuckey says the recent review into the Central Bank Act by the Independent Advisory Group (IAG) is progressing well.
The IAG group is comprised of former BPNG Governor Sir Wilson Kamit, Former Chief Secretary Robert Igara and Professor Stephen Howes from the Australian National University (ANU).
“I am very pleased that the Independent Advisory Group for the review of the Central Banking Act 2000 is making good progress on how we can make BPNG and monetary policy work better for the people of Papua New Guinea.
“This review is extremely important. The current legislation, which I was very supportive of when it was passed by Parliament over 20 years ago, needs to be modernised. Why is there still not enough competition in our banking sector? PNG’s gap between what banks pay to depositors and charge to lenders is too high. Too many of our people still do not have access to banking services. Too many of our SMEs find it too hard to get loans. The review is considering if we can do things better while maintain the bank’s independence,” the treasurer said.
“The lack of foreign exchange is the worst business problem in PNG – bigger than law and order or lack of skilled labour or bad infrastructure according to businesses in the annual CEO survey. Why is our Kina now so difficult to convert to other currencies when it wasn’t an issue 10 years ago? The people of PNG were promised that the PNG LNG project would avoid such issues but under the O’Neill years something clearly went very wrong. The Marape Government is listening to business concerns by seeking solutions to the biggest problem facing our businesses.
“There have been the usual lies and misinformation from the Opposition about this review. Rather than just taking pot-shots at a vital review process, I am of course sure that the Opposition has provided a considered submission to the Independent Advisory Group.
“Former Prime Minister O’Neill, under whose economic mismanagement our foreign exchange shortages emerged and interest rates rose, falsely claims the Independent Advisory Group consists of “political appointees”.
“So who is on it? Sir Wilson Kamit, the Governor of the Bank of PNG from 1999 to 2009. Robert Igara, the former Chief Secretary at the time of preparing the original legislation and current Chancellor at UPNG. Professor Stephen Howes from the Development Policy Centre at the ANU to provide an international perspective. This is an eminent, well-qualified, balanced team to provide independent advice. O’Neill dishonours the credentials and experience of the IAG members. He also dishonours the process established by Sir Mekere 22 years ago of an IAG to advice on a Central Banking Act fit for PNG.
“Ignore the usual political lies from the Opposition. This is an important and independent review. I welcome the consultative processes that it is undertaking,” Ling-Stuckey said.
An Issues Paper has been released and is available at the following website: https://centralbankactiag.org. This website also contains additional information on the review.
The treasurer has encouraged people to look at the Issues Paper and consider the important issues raised. Public submissions are now coming in, and a consultation phase is planned over the next two weeks.