O'Neill: be wary of doomsayers with misleading statements on the economy
PRESS RELEASE
Prime Minister Peter O’Neill has urged the people to be wary of doomsayers who are making misleading statements on the state of the economy to score political points as the election nears.
“I can confidently say that the economy is stable and trekking nicely, as indicated by the most recent policy statement from the PNG Central Bank. The 2012 Budget is on track and expenditure is within forecast.
“No one is spending or making commitments outside of the budget. The suggestion that economic growth is under threat from fiscal instability created by reckless spending is outrageous and irresponsible,” the Prime
Minister said.
Mr O’Neill was responding to comments made by former Chief Secretary Isaac Lupari at a political banquet over the weekend.
Mr Lupari predicted a deficit blow out for the 2012 Budget from reckless spending. He said budgets since 2006 have been consumption focussed, less efficient and centrally focussed, and politically sensitised.
“It’s true that the National Alliance led government has framed budgets that delivered very little. Mr Lupari said there was no real growth since 2002. That is true. We all know how the NA led government ring-fenced and politically sensitised the development budget.
“This suffocated and prevented growth and development in provinces and rural areas. This explains why our infrastructure collapsed and deteriorated in a period when high commodity prices delivered windfall
revenue to government. The culprits of this macro mismanagement were sitting right there with Mr Lupari at the banquet,” the Prime Minister said.
“Our priority areas are education, health, infrastructure development and law and order. These are key areas of growth and I’m not afraid to spend more in these areas that will directly benefit our people.
“Our government is strictly conforming to budget. All commitments and payments I’ve made are from the budget. Read the budget books. We are also paying outstanding landowner commitments from the UBSA and LBSA which the Somare and the Abal Government left behind.
“But we do have a huge financial commitment to contend with which might cause a deficit blow out, and that is that K900 million hole created by Arthur Somare and his financial guru Glen Blake when negotiating the loan to pay our equity in the PNG LNG project. I’m advised that Treasury has found K500 million to help pay this commitment. Shows we are still cleaning up the huge mess left behind by the Somare regime,” the Prime Minister said.
Mr O’Neill said data shows that debt was below 25% of GDP, interest rate and inflation was stable, the kina is appreciating against major currencies at the exchange rate, and foreign reserves were around K9
billion.
“Economic growth is forecast at around 7.8% so it is ludicrous to suggest we might slide back to the Late Skate and Mekere era.
“I’m confident the economy is on a firm footing as the country heads into elections,” Mr O’Neill said.
Aproved for release
HON. PETER O’NEILL, CMG MP
Prime Minister