THE New Ireland Government’s subsidy policies, which the people of New Ireland have enjoyed for the past decade, are already being affected by the National Executive Council’s decision to move the Lihir Royalty Government funds directly to the District Development Authorities of the two open electorates.
This comes after the two open MPs Ian Ling-Stuckey and Walter Schnaubelt, using their Ministerial powers, influenced the NEC to activate the decision regarding Royalty distribution, even though the Supreme Court, ruling in 2018, that the funds should be paid directly to the New Ireland Government.
The Supreme Court further ruled that the two districts were not signatories to the Memorandum of Agreement and therefore had no authority to challenge the terms of the MoA and had “no legal standing”.
According to the Lihir MOA provided by clause 6(c), the national government would pay 50% of the royalties to the provincial government which would in turn distribute that 50 percent in the following way: 20% to be spent in the Namatanai District for projects and programs pursuant to its District and Provincial Development plans and likewise to the Kavieng District. Ten percent is to be retained by the New Ireland Government for general administration of MOA obligations.
The New Ireland Government has been diligently, without bias or favour, distributing the funds to projects and programs in the districts over the past 10 years. In fact, the NIG has spent a larger proportion of royalties in each district than is called for in the MoA, and has retained less than it has a right to retain.
With confirmation of the payments already reaching the District Development Authority treasury accounts last month the New Ireland Government was forced to accept that its policies as stipulated through the Malagan Declaration, Malagan Declaration Forward and New Ireland Declaration would be affected as the funds allocated to implement these programmes throughout New Ireland are now paid directly to the two districts.
As a result of the revised distribution of royalties Governor Sir Julius Chan directed CEO Subsidy, Ms Mactil Bais to convene a meeting with affected priority partners including heads of Education Institutions, Health and Churches on Thursday 15th April.
Ms Bais, who relayed the disheartening news to all the development and service partners, conveyed that it was in their best interest and all the people of New Irelands interest that they should be aware of the direct affects related to the decision of NEC to transfer all funding into the hands of the Open members.
-Press Release-