**** Speech to Parliament by Prime Minister Hon. Peter O’Neill CMG MP, 25 November 2014 Second Reading of the District Development Authorities Bill 2014 **** Mr Speaker, I am very pleased to present the District Development Authorities Bill. This Bill provides the details of the operation of the District Development Authority. Mr Speaker, our decentralised system was intended to bring service delivery closer to the people. Since independence there have been many changes to our decentralised system. The reforms in 1995 were intended to strengthen Local level Governments, establish Provincial and District Treasuries and made district planning compulsory. It was hoped that finally services would be made available to those living in rural villages. Mr Speaker, regrettably this did not occur. Instead we have seen a gradual decline in services and infrastructure in the districts. Public servants are instead concentrated at provincial headquarters or in Waigani. This is not good enough. Mr Speaker, people expect services to be delivered locally and our decentralisation system means that the majority of services are at the district level. Mr Speaker, over the last three years the government has sought to address this by increasing the funding flowing to districts and provincial governments. Finally the money is flowing to where the service delivery takes place. The District Support Improvement Grant provided for K10 million per district. This must be allocated to health, education, infrastructure and agriculture. Mr Speaker, despite criticism and concerns about the management of these funds, we are beginning to see the fruits of this funding. New housing is being built for public servants in the districts and most districts now have a district treasury which can provide basic banking services. Finally funds are being made available were they are needed the most. Mr Speaker, the next step is the creation of district development authorities. District development authorities replace the current Joint District Planning and Budget Priority Committee. The current JDPBPC’s have outgrown themselves. They were a late inclusion in the 1995 reforms and were intended as a committee which would oversee and make recommendations on district planning, determine budget allocations for Local level Government and draw up the district development plan. Mr Speaker, at that time the District Support Grant was only K500, 000 per district. This did not go very far in light of the costs and responsibilities at the district level. In early 2000, things started to change. More funding was placed in the District Support Grant and the JDPBPC began to take on a very different role. The JDPBC became responsible for a significant sum of money. Its structure as an administrative committee was no longer suitable. Mr Speaker, the JDPBC started to acquire machinery, enter contracts and undertake significant works in the district. There was a great deal of confusion over the ownership of the assets. Accountability was very poor. The JDPBPC needed to be revised to reflect its changing role and new functions. Mr Speaker, in February 2014 the Parliament passed an amendment to the Organic Law on Provincial Governments and Local level Governments which abolished the JDPBPC and created a new statutory authority in each district called the District Development Authority. Mr Speaker, this District Development Authority Bill provides the details for the operation of new District Development Authorities. There will be one established in each district. It is a legal entity that can sue and be sued and enter into contracts. Finally it will be clear who the legal owner of any property is and action can be taken if contracts are not fulfilled. Mr Speaker, if a district development authority is complying with the Public Finance (Management) Act and can show that there are reputable and qualified people in the district eligible to be appointed to a local Supply and Tenders Board, then the Minister for Finance can approve the establishment of a District Development Authority Supply and Tenders Board in the district. This will speed up the tender process and were possible contracts can be awarded to competent local businesses. Mr Speaker, the membership of the authority will be the same as the JDPBPC. The open member will be the chairperson and the Local level Government Presidents in the district will be members as well as three other members appointed by the Chairperson. Mr Speaker, the authority will also have expanded service delivery functions. The authority will become the implementing arm of the Provincial Government and Local level Government. Mr Speaker, I must also emphasis that the Provincial Government will remain and continue to serve an important role in co-ordination. The district development authority is not a government. It is a vehicle for service delivery. The authority is required to act consistently with Provincial Government plans. Provincial Government and district authorities will need to work in partnership to serve the people of the district. Mr Speaker, the other important change is the significant increase in accountability. The district development authority will be far more accountable to the people then the JDPBPC was. The authority will be required to submit a budget to the Treasurer and quarterly reports to the Provincial Government. Mr Speaker, district authorities will not be able to work in secret. There are much stricter rules in relation to fees and allowances the Board is entitled to and meetings must be held in public and resolutions publicised. Meetings must be held in the district. It will no longer be the case that JDPBPC’s pay themselves large allowances and hold meetings in Cairns or not at all. Mr Speaker, where there are instances of misappropriation or poor performance the NEC will be able to suspend the Board of the authority and all powers of the Board will be vested in the Minister for Intergovernmental Relations. Mr Speaker, as we can see, the government is trying to move closer to the people. The majority of our people live in small villages serviced by the district headquarters. Services are delivered in their location, and not here in Port Moresby, Lae or Mount Hagen. Mr. Speaker, in order for the country to continue to grow we must take action to strengthen districts. We must return to the original intention as expressed in the CPC – we need to bring government to the people and empower people to make decisions for their own future. Mr. Speaker, the policies of this government are slowly transforming Papua New Guinea. We currently have a record number of school age children enrolled in school and have seen a significant rise in the number of girls attending school. Mr. Speaker, I can see a significant increase in number of police helping to keep our streets and homes safe. Improving law and order will continue to be a high priority for this government. Mr. Speaker, as I drive around Port Moresby I can see new buildings coming up and ambitious new roads under construction. We are investing in our future - our children and the infrastructure that is going to support more economic growth. Mr. Speaker, the District Development Authority is another significant achievement of this government. It will bring services closer to the people and strengthen service delivery to the rural majority. Mr. Speaker, I commend the Bill to the house.
Posted on: Tue, 25 Nov 2014 04:55:57 +0000
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