ABG launches Cost-of-Services Report
Acting President and Minister for Treasury and Finance, Hon. Albert Punghau, officially launched the Cost-of Services Report yesterday in Buka.
The report, titled ‘From Here To There’, commissioned by the ABG in partnership with the NEFC, was initially conducted to determine the costs of government administration and service delivery as Bougainville moves towards independence.
In his keynote address, Minister Punghau was highlighted the challenges ahead, noting that the 97.7% vote for independence must be matched by "fiscal readiness". He described the current understanding of government costs as an "iceberg" where many expenses have remained hidden within national agency allocations in Waigani.
“The report we launch today, ‘From Here To There’ speaks directly to both governments; the National Government of PNG and the Autonomous Bougainville Government on the financial stewardship of our people’s resources, and the political responsibility of building Bougainville into nationhood, after the people of Bougainville voted 97.7% for Independence under Part XIV of the PNG Constitution,” he said.
"For too long, the true cost of governing Bougainville has been obscured: some costs visible in our ABG budget, others buried within national agency allocations in Waigani, and still more invisible entirely," Punghau stated.
The report utilized Bougainville-specific data including GIS mapping and price surveys, to account for the unique costs of reaching scattered atolls and inaccessible mountain communities.
Minister Punghau acknowledged the National Economic Fiscal Commission for their partnership, and particularly for bringing a Bougainville-specific methodology to this exercise.
As the Autonomous Region of Bougainville progresses with its independence-readiness efforts, this report identifies the specific areas in which the ABG needs to improve in sectoral administration and service delivery.
“Bougainville’s journey towards independence, which our people voted for, must be met by fiscal readiness. A sovereign people must be served by a government that can sustain itself.”
“President Toroama’s vision is of a Bougainville built on peace, rooted in our identity, and capable of governing itself with competence and pride. The work we do today, the planning, the costing, the accountability, lays a foundation for that Bougainville,” Punghau said.
Minister Punghau acknowledged that ABG still depends on the National Government grants and that its internal revenue remains low.
“This report now gives us the evidence-based foundation to build a more credible budget architecture, to guide our drawdown of powers from Waigani, and to strengthen our engagement with development partners and the Government of Papua New Guinea on grants and the true cost of the responsibilities we are assuming.”
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