Throwing his support behind the Marape-Basil Government’s K5.7 billion loan, Kandep MP Don Pomb Polye called on Prime Minister, James Marape to resurrect the Sovereign Wealth Fund (SWF).

The SWF will support National Budgets, during economic crisis like Covid-19, when operationalised fully, he said. The intention of SWF creation was to manage ‘Dutch Disease.’

Polye made the call in Parliament today. He was debating on Covid-19 report. The Speaker, Job Pomat and Treasurer Ian Ling-Stuckey presented the report.

POLYE ON K5.6 BILLION COVID LOAN

Commenting on whether K5.7 billion loan by the current government to support government expenditures in the 2021 Budget, he said it was a good idea.

He added that the loan was productive and returnable investment if the Government spent it priorities of the MTDS, MTFS, MTDMS, and Vision 2050.

Whilst using the funds made available via Covid loans for improving hospital infrastructure, Covid-19 vaccines and other consumables, he said, it was also wiser for the government to spend more on investments like roads, agriculture and other projects. These projects should earn high return on investment, he said.

He commended PM Marape and his government for the economic stimulus package to counteract the adverse impacts of Covid-19 Pandemic. It is tightening its grip on the economy.

GOVERNMENT WARNED ON SPENDING OUTSIDE OF BUDGET

Further, Polye warned that the Government should spend its expenditures within the legal and governance frameworks. They include medium-term strategy, debt management policy, monetary and fiscal policies.

Covid is here to stay and its loans should continue to fund government essential services whilst growing the economy, he said.

“Time has come for us to learn from our mistakes and restore the Sovereign Wealth Fund,” he said.

Furthermore, he noted that the controversial K3 Billion UBS loan created a huge hole in 2014 National Budget and the other subsequent budgets. https://postcourier.com.pg/ubs-was-a-bad-loan-polye/

Former Treasurer warned that Governments should handle Vote of No-confidence matters and political stability responsibly. That is, he said, Governments were tempted to lure the support of MPs by spending public funds outside of the budget.

It doesn’t matter who is in government. The political pressure MPs mounted on governments does affect the stability. Therefore, it does affect the economy and governance.

“I have done it too. We have to learn from our mistakes. Thus, we ensure governments protect Budgets by implementing it within the policy and legal frameworks.

Meanwhile, Polye said he supported the National Covid-19 Vaccination rollout.

Additionally, he called on the Government to get local scientists to compile a home-based research on Covid-19 with recommendations and not relying heavily on foreign advisors.

“So much misleading statements have been made for and against vaccination. Absolute Scientific truth is what PNG needs to chart its way forth on covid-19,” said Polye.