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PNG Constitutional Planning Committee Report 1974

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Constitutional Planning Committee Report 1974

RECOMMENDATIONS

  

1.         A system of district-level governments shall be established according to procedures and within the framework specified in the Constitution.

 

2.         The existing districts (including the new National Capital District) shall be called "provinces", and district-level governments shall be called "provincial governments".

 

3.         Subject to the Constitution, laws concerning the establishment and operation of provincial governments shall be framed so as to provide for change and variation in the circumstances and desires of the people of the various provinces.

 

PROVINCIAL ASSEMBLY

 

Name

 

4.         The legislative and policy making body for each provincial government shall be called the "Provincial Assembly", which shall also exercise ultimate control over the performance of the provincial government's administrative responsibilities.

 

Composition

 

5.         Each Provincial Assembly shall comprise a minimum of 15 members, each representing a single-member electorate, with an additional member for every 10,000 people in the province in excess of 150,000, provided that the Electoral Commission shall have the power to recommend that the number of electorates be increased or decreased by up to two so that the electoral boundaries for a province may more nearly be drawn in accordance with the criteria prescribed for the drawing of electoral boundaries in Chapter 6, "The Legislature".

 

Qualifications for membership of the Provincial Assembly

 

6.        (1)        Qualifications for candidates for the Provincial Assembly shall be the same as those for candidates for the National Parliament in Recommendation 3 of Chapter 6, "The Legislature".

 

            (2)        Candidates in provincial elections shall lodge a deposit of twenty-five dollars upon nominating in accordance with law.

 

Election

 

7.         The members of each Provincial Assembly shall be elected directly by the people of each province in the same way as members of the National Parliament.

 

Timing of Election

 

8.         Provincial elections shall be held three months after every general election for the National Parliament.

 

            Note:    Provincial elections include elections for the Provincial Assembly as well as elections for those Premiers who are directly elected by the people.

 

Dissolution

 

9.                     (1)        A Provincial Assembly may at any time dissolve itself in accordance with the procedures specified in Clause (2).

 

            (2)        A Provincial Assembly may dissolve itself if -

 

                        (a)        the motion that the Provincial Assembly be dissolved has been signed by at least five members;

 

            (b)        at least one month's prior notice of the intention to move such a motion has been given; and

 

            (c)        passage of the motion is approved by a majority of the members present at a lawfully convened meeting of the Provincial Assembly.

 

Qualifications for electors

 

10.       The qualifications for voters in provincial elections shall be the same as those for voters in elections for the National Parliament.

 

Regulation of Assembly procedures

 

11.       Subject to the Constitution, each Provincial Assembly shall regulate its own procedure and for this purpose shall make Standing Orders.

 

Co-opted members

 

12.       Provincial Assemblies may co-opt as non-voting members those members of the National Parliament who represent electorates that fall wholly or partly within the boundaries of their respective provinces.

 

Powers, privileges and immunities

 

13.       Provincial Assemblies shall determine their own powers, privileges and immunities,

            provided that they are not greater than those of the National Parliament.

 

PROVINCIAL EXECUTIVE

 

Head of Executive

 

14.       The head of the provincial government shall be called the "Premier".

 

Executive Body

 

15.       The executive body of the provincial government shall be called the "Provincial Council".

 

Premier's membership of Assembly and Council

 

16.       The Premier shall be a full member of the Provincial Assembly and the Provincial Council.

 

Election and removal of Premier

 

17.       The Premier shall be elected, and be liable to removal from office, in accordance with procedures to be incorporated in the document that establishes the provincial government, and determined in accordance with the Constitution.

 

            Note:    Recommendation 73 specifies how and when these procedures should be determined.

 

Composition of Council

 

18.       The membership of the Provincial Council (including the Premier) shall not be greater than one-third of the total elected membership of the Provincial Assembly (including the Premier).

 

Kind of Executive

 

19.       Each Provincial Assembly may choose either an "executive committee" system or a "portfolio" system for the Provincial Council.

 

                        Notes:   (i)         Under the executive committee system, the Provincial Council would act collectively in all matters.  Although members of the Council might each take a special interest in a certain subject or group of subjects, they would not have individual executive responsibility like that of a Minister in the national government.  Under the portfolio system, although the Council may still act collectively, each member will be given individual executive responsibility for a subject or group of subjects like a Minister in the national government.

 

(ii)        The Committee has deliberately provided in recommendation 73(3) that each Provincial Assembly determine for itself how members of the Provincial Council should be appointed and removed from office.

 

Salaries, allowances and other benefits

 

20.     (1)        The salaries, allowances, and other benefits of members of each Provincial Assembly, including the Premier and members of the Provincial Council, shall be determined by a body comprising:

 

            (a)        the members of the Parliamentary Salaries Tribunal provided for in Chapter 6, "The Legislature"; and

 

            (b)        two persons chosen by the Provincial Assembly concerned.

 

            (2)        The two persons chosen under Clause (a)(b) shall not be members of the National Parliament, nor of any Provincial Assembly, and they shall not be public officers or members of a provincial government staff.

 

            (3)        The body provided for in Clause (1) shall make its determinations in accordance with the provisions recommended in Chapter 6, "The Legislature", in respect of the Parliamentary Salaries Tribunal.

 

POWERS AND FUNCTIONS

 

Responsibility at local level

 

21.      (1)        Subject to the Constitution, provincial governments shall be responsible for government at the local level.

 

            Note:    Recommendation 74 provides certain safeguards for local government bodies.

 

            (2)        Provincial governments shall respect the wishes and practices of the communities and local government bodies in their areas in accordance with law.

 

Law and Policy making

 

22.      (1)        Subject to the Constitution, provincial governments shall have the power to make laws and to determine policies within the areas of their responsibility,

            provided that any laws and policies so made shall not conflict with national legislation made in accordance with the Constitution, and shall be null and void and of no effect to the extent of any such conflict.

 

            (2)        National policies and legislation shall as far as practicable be framed so as to provide opportunities for the involvement of provincial governments in law - and policy-making.

 

Powers and functions

 

23.       (1)        Provincial governments shall have certain powers and functions vested in them by the Constitution;

 

            (2)        The national government shall have certain powers and functions vested in it by the Constitution;

 

            (3)        Subject to Recommendation 107(5) the powers and functions vested in accordance with (1) and (2) shall be those classified respectively as 'C' and 'A' powers and functions in the Schedule to this Chapter.

 

            (4)        Subject to Recommendation 107(5), the national government and provincial governments should negotiate for the transfer to provincial governments of authority over those powers and functions in particular that appear in the "B" list of the Schedule to this Chapter.

 

            (5)        Subject to Recommendation 107(5), the Schedule to this Chapter shall become a Schedule to the Constitution.

 

(6)        Subject to Recommendation 107(5), the Schedule to the Constitution provided for in Clause (5) may be altered in accordance with the procedures for altering the Constitution recommended in Chapter 6, "The Legislature", but only so that -

 

            (a)        powers and functions may be added to the 'C' list if a simple majority of the members of the National Parliament support a bill to that effect;

 

            (b)        powers and functions may be added to or taken from the 'A' list if two-thirds of the members of the National Parliament support a bill to either effect; and

 

            (c)        powers and functions may be taken from the 'C' list if three-quarters of the members of the National Parliament support a bill to that effect;

 

            (7)        Subject to the Constitution, final authority over all of the powers and functions of government shall otherwise be vested in the national government.

 

Devolution and delegation

 

24.                   (1)        Subject to clause (2) below -

 

            (a)        the national government shall have the power to devolve or delegate its powers and functions to a provisional government according to law; and

 

            (b)        each provincial government shall have the power to devolve or delegate its powers and functions to the national government according to law.

 

            (2)        Any expenditure incurred by virtue of a devolution or delegation made under Clause (1) above shall, unless otherwise agreed by the parties concerned, be borne by the government which devolves or delegates the power or function.

  

FINANCE

 

Sources of Finance for provincial governments

 

25.       Subject to the Constitution, provincial governments shall have the power to raise their own revenues, and shall also receive grants from the national government.

Distribution of revenue sources

 

26.                   (1)        The national government shall have the power to levy and to collect major indirect and direct taxes according to law, including -

 

            (a)        import and export duties

 

            (b)        excise duties

 

            (c)        taxes on corporate profits

 

            (d)        taxes on personal income

 

            (e)        royalties on minerals, timber, fish, oil, natural gas, and private hydro-electric projects.

 

            (2)        Provincial governments shall have the power to levy and to collect the following taxes:

 

            (a)        produce sales taxes and cesses

 

            (b)        sales taxes on beverages, petrol and diesel fuel

 

            (c)        entertainment taxes

 

            (d)        land taxes

 

            Note:    Although the Committee believes that the power to levy and to collect land taxes should be vested in provincial governments, it does not believe that such taxes should presently be levied in Papua New Guinea.

 

            (3)        Provincial governments shall have the power to issue and to levy fees for:

 

            (a)        mobile trading licences

 

            (b)        liquor licences

 

            (c)        motor vehicle and drivers' licences and registrations

 

            (d)        entertainment licences

 

            (4)        Provincial governments shall receive fines and fees levied in provincial courts (the present "District Courts").

 

            (5)        The national government and provincial governments shall assist one another in the collection of lawfully levied taxes.

 

Additional sources of revenue for provincial governments

 

27.       Provincial governments shall have the power -

 

            (a)        to levy fees for goods supplied and services rendered;

 

            (b)        to conduct commercial and other enterprises; and

 

            (c)        to make investments for profit.

 

Use of revenue-raising powers by the national governments

 

28.       The national government shall as far as practicable exercise its revenue-raising powers so that they do not diminish the revenue-raising powers of provincial governments.

 

Accounting, budgeting and recurrent expenditure

 

29.       Subject to the Constitution, each provincial government shall be responsible for its own accounting, budgeting and recurrent expenditure in accordance with law.

 

Allocation of national government funds

 

30.       Subject to the Constitution, the national government may make funds available to provincial governments by -

 

            (a)        making conditional grants;

 

            (b)        making unconditional grants;

 

            (c)        allocating unconditional shares of the revenues raised by specific taxes; and

 

            (d)        allocating unconditional shares from a revenue pool consisting of revenues raised by national government taxes.

 

Conditions to grants

 

31.     (1)        Grants made by the national government to provincial governments shall include unconditional and conditional grants.  Tied grants may not include unreasonable conditions.

 

            (2)        Subject to the Constitution, the recurrent expenditures of provincial governments should be met by unconditional transfers of funds from the national government.

 

Criteria for grants

 

32.     (1)        Subject to the Constitution, revenues raised by the national government, and in particular unconditional grants, shall be allocated to provincial governments according to the following criteria:

            (a)        need

 

            (b)        derivation

 

            (c)        compensation

 

            (d)        equalization

 

            (e)        national welfare

 

            (f)         conservation, restoration and improvement of the human and physical environment; and

 

            (g)        stabilization of services.

 

            (2)        Need shall be determined according to the population and area of each province.

 

            (3)        The derivation criterion shall be applied so that money is allocated according to each province's contribution to government revenue, and in particular to royalties raised on minerals, oil, natural gas, timber and private hydro-electric projects, and through the export of agricultural produce from each province.

 

            (4)        The compensation criterion shall be applied so that compensation is made for disabilities (including additional expenditures by the provincial government) incurred through the differential impact of national policies.

 

   (5)      (a)        The equalization criterion shall be applied so that money is allocated to equalise development among the provinces.

 

(b)        Subject to Recommendation 107, the amount of money, if any, allocated to each province under the equalization criterion shall be calculated on the basis of criteria such as the following:

 

            (i)          urban population as a proportion of total indigenous population;

 

            (ii)         indigenous crop production per head;

 

            (iii)        hospital beds per 1,000 of population;

 

            (iv)        government staff per sub-district;

 

            (v)         enrolments of primary and secondary school pupils;

 

            (vi)        estimated retail sales of private trade stores and co-operative stores per head of population;

 

            (vii)       expenditure by the Public Works Department and local government bodies per head of population; and

            (viii)      accessibility to land, sea and air transport.

 

            (6)        The national welfare criterion shall be applied to ensure that resources are efficiently employed in accordance with the National Goals and Directive Principles recommended in Chapter 2.

 

            (7)        Criterion (1)(f) shall be applied so that funds are allocated to enable provincial governments to conserve, restore, improve, or to prevent the destruction of, the human and physical environment of the provinces.

 

            (8)        Criterion (1)(g) shall be applied:

 

            (a)        if the total amount of money allocated for recurrent expenditure according to the other criteria specified is insufficient to cover the recurrent costs of maintaining services that have been transferred from the national government to a provincial government in accordance with the Constitution; and

 

            (b)        subject to recommendation 24(3).

 

Grants for any purpose

 

33.       Subject to the Constitution, the national government shall have the power to make grants (with or without conditions attached to them) to a province for any purpose.

 

Responsibility for projects

 

34.        (1)        Provincial governments shall have the power to undertake projects costing no more than $50,000 each (that is, projects that come under the Rural Improvement Programme) on their own authority, and shall receive unconditional block grants from the national government for such projects.

 

            (2)        Money allocated for the grants specified in Clause (1) shall be distributed among the provinces so that part of the money is allocated according to population and part according to a formula which is designed to favour the less-developed provinces.

 

            (3)        Provincial governments shall be responsible for capital projects of an intermediate size (that is, projects costing between $50,000 and $150,000 each),

            provided that approval for them has first been obtained from the national government.

 

            (4)        The national government shall be responsible for major national projects (that is, projects with a cost of more than $150,000 each).

 

Loans

 

35.      (1)        Provincial governments shall have the power to obtain medium-term and long-term loans from or through the national government, but not otherwise.

 

            (2)        The national government shall strive to ensure that adequate loan funds are made available to provincial governments on reasonable terms.

 

Unspent money

 

36.       Provincial governments shall retain control over money allocated to them that has not been spent before the end of the financial year in respect of which it was allocated, and the amount of money so retained shall not be held against normal allocations for the next financial year.

 

Non-renewable resource trust funds

 

37.     (1)        Provincial governments should establish their own non-renewable resource trust funds with money received from the royalties levied by the national government on the exploitation of such resources.

 

            (2)        A special grant should be made to Bougainville (under the compensation criterion) to invest in a non-renewable resource trust fund.

 

National Fiscal Commission

 

38.       There shall be a body known as the National Fiscal Commission which shall make recommendations on the allocation of unconditional grants by the national government to provincial governments.

 

Composition of Commission

 

39.       The National Fiscal Commission shall comprise three members who shall be appointed for a term of four years by the National Executive Council following consultation with the Permanent Parliamentary Committee concerned with provincial government affairs.

 

Qualifications for membership of Commission

 

40.       Two of the members of the National Fiscal Commission shall be persons with appropriate professional qualifications and experience in economics, accountancy or law, and one shall be a person with appropriate professional qualifications and experience in one of the social sciences.

 

Reports of the National Fiscal Commission

 

41.     (1)        The National Fiscal Commission shall make recommendations every four years on the allocation of unconditional transfers from the national government's funds to provincial governments for the next four years.

 

           (2)        The National Fiscal Commission shall report its recommendations to the Speaker, who shall table them in the National Parliament not later than at the first meeting of the parliament after he has received them.

 

 

PROVINCIAL ADMINISTRATION

 

Provincial government staff

 

42.       The staff of each provincial government shall comprise -

 

            (a)        public officers; and

 

            (b)        personnel employed by the provincial government who are not public officers.

 

            Note:    "Public Officer" is defined in Chapter 12, "The Public Services".

 

Public officers

 

43.     (1)        Except as otherwise provided, all of the public officers in each province shall be members of a single national public service and shall be employed by the provincial government.

 

            Note:    Chapter 12 "The Public Services" provides for the appointment and the terms of service of public officers.

 

            (2)        The public officers employed by each provincial government shall be appointed in accordance with Recommendation 8(2) in Chapter 12, "The Public Services",

 

            provided that a representative of the provincial government concerned may eventually take the place of a departmental representative on any board or committee of the Public Services Commission which deliberates on the appointment, promotion, transfer, discipline or dismissal of any public officer employed by the provincial government.

 

Administrative devolution

 

44.       As much administrative authority as practicable shall be devolved upon public officers and provincial government staff in the field, and they shall work in close accord with one another and with the people whom they serve.

 

Transfers of public officers

 

45.       Transfers of public officers should be kept to a minimum.

 

Provincial Secretary

 

46.       There shall be a Provincial Secretary in each province who shall be directly responsible to the Provincial Council in the performance of his duties.

 

Eligibility and manner of employment for Provincial Secretary

 

47.       Both public officers and people other than public officers shall be eligible for appointment as Provincial Secretary,

 

            provided that any person who is appointed as Provincial Secretary shall become a public officer not later than when he assumes the office of Provincial Secretary.

 

Appointment, removal and transfer of Provincial Secretary

 

48.                   (1)        The Provincial Secretary shall be appointed following agreement between the National Executive Council and the Provincial Council, after the position has been advertised both in the Government Gazette and to the general public, and the Public Services Commission has been consulted.

 

                        (2)        The Provincial Secretary shall be removed at the request of the Provincial Council.

 

                        (3)        Provincial Secretaries may be transferred from one province to another subject to agreement between the national and provincial governments concerned.

 

Salary and conditions of Provincial Secretary

 

49.       The salary and other conditions of service attached to the office of Provincial Secretary shall be equivalent to those enjoyed by the Departmental Head in a major national government department.

 

            Note:    The equivalent in present terms would be a Level Two or Level Three officer in the Public Service.

 

Assistance for Provincial Secretary

 

50.      (1)        The Provincial Secretary shall be provided with adequate, qualified staff to assist him in the performance of his duties.

 

            (2)        The staff provided to assist the Provincial Secretary should include a Planning Officer, a Financial Officer, a Personnel Officer, and an Executive Officer or a Deputy or Assistant Provincial Secretary, according to the needs of each province.

 

Co-ordination by Provincial Secretary

 

51.                   (1)        Subject to the Constitution, all public officers in each province and all provincial government staff shall be responsible to the Provincial Secretary for the efficient performance of their duties according to law.

            (2)        Subject to the Constitution, the Provincial Secretary shall co-ordinate the activities of all public officers and all provincial government staff in each province.

 

            (3)        Except as otherwise provided, the Provincial Secretary shall be the supreme disciplinary authority in respect of public service matters, and shall be designated by the Public Services Commission as "supervising officer" for all departments in the province,

            and in any case the powers of a Provincial Secretary in relation to provincial government staff shall not be less than those presently employed by a Departmental Head in relation to the officers of a national government department.

 

            (4)        The Provincial Secretary shall have the power to call meetings of the heads of all government departments in the province according to law.

 

            (5)        The Provincial Secretary shall be responsible for the administration of public funds in the province according to law.

 

Agency functions

 

52.       Subject to the Constitution, provincial governments shall act as agents of the national government in relation to the performance of the national government's functions, except -

 

            (a)        in respect of specified institutions (such as units of the Defence Force, universities, teachers' colleges, and specified international aerodromes) which are relatively self-contained and of national importance;

 

(b)        in respect of constitutional office-holders; and

 

            (c)        in respect of those matters to which the national government has lawfully determined this provision shall not apply.

 

            Note:    Recommendation 52(2) notwithstanding, constitutional office-holders (who are specified in Chapter 14, "General") are likely to be dependent upon provincial governments for ancillary services, such as transport, housing, etc. which shall be co-ordinated by the Provincial Secretary.

 

Performance of agency functions

 

53.       The agency functions of the provinces shall be so exercised as to ensure compliance with the lawfully made policies of the central government.

 

Revocation of agency functions

 

54.       The national government shall have the power to revoke an agency at any time and to exercise a function over which it has power according to law, but it shall do so only -

 

            (a)        in situations of extreme urgency; or

 

                        (b)        when a provincial government is obstructing the execution of the national government's lawful directives, and the procedures specified in Recommendation 62 have not resulted in the resolution of the dispute.

 

RELATIONS BETWEEN GOVERNMENTS

 

Provincial Premiers and the National Executive Council

 

55.                   (1)        Each Provincial Premier shall have the right to attend meetings of the National Executive Council at which important matters directly affecting his province are discussed.

 

                        (2)        The Minister responsible for provincial government affairs shall advise a Premier in advance when important matters directly affecting his province are to be discussed by the National Executive Council.

 

Constitution of provinces

 

56.       (1)        Subject to the Constitution, and in particular, to clause 2 below, the National Parliament shall have power to create new provinces, amalgamate existing provinces, and otherwise alter the boundaries of provinces, by legislation.

 

            (2)        The creation of a new province, the amalgamation of existing provinces, or the alteration of the boundaries of any province may be effected only if -

 

            (a)        any bill introduced into the National Parliament under the power conferred by clause (1) above has been transmitted to any provincial government directly affected by it at least three months prior to its presentation in parliament;

 

            (b)        in the case of a bill moved by a minister, prior to presentation of the bill in the National Parliament the views of the provincial assembly of each of the provinces directly affected by it have been incorporated in a submission which has been considered by the National Executive Council in accordance with the procedures concerning submissions specified in Chapter 7, "The Executive";

 

            (c)        a bill of the kind referred to in paragraph (a) or (b) above is supported by the individually recorded votes of an absolute majority of the members of the National Parliament;

 

            (d)        subject to paragraph (e) below, unless the provincial government of a province has been suspended in accordance with the Constitution, a bill of the kind referred to in paragraph (a) or (b) above is supported in a vote by a simple majority of the members of the provincial assembly of each province directly affected by it;

            (e)        in the case of a bill which directly affects more than one province and which does not receive the support in a vote of a simple majority of members of the provincial assembly of each of the provinces concerned as required under paragraph (d) above -

 

(i)         the bill shall be regarded as the subject of a dispute between governments and shall be referred for settlement in accordance with the procedures specified in Recommendation 63 below; and

 

(ii)         if after the expiration of a reasonable time following a reference of a bill in accordance with subparagraph (i) above the dispute is not settled under the procedures referred to in that subparagraph, the bill concerned may be debated in the National Parliament, and if supported by the individually recorded votes of an absolute majority of the members of the National Parliament shall become law in accordance with the procedures for making laws specified in Chapter 6 "The Legislature".

 

             (3)        The National Parliament shall have the power to name or to rename a province in accordance with the procedures specified in paragraphs (a), (b) and (c) of clause 2 above, but this power shall not be exercised unless the Provincial Assembly of the province concerned has first passed a motion proposing a name.

 

            (4)        Subject to the Constitution, the National Parliament may make laws in accordance with the procedures specified in paragraphs (a), (b) and (c) of clause (2) above, to provide for the making and alteration of the documents that establish provincial governments,

            provided that any laws so made shall make provision for either the national government or individual provincial governments to take the initiative in proposing alterations to such documents.

 

Premiers' Council

 

57.       There shall be a Premiers' Council comprising the Prime Minister and all of the Provincial Premiers (or their representatives) which shall meet at least once a year to discuss matters of common concern.

 

Summoning of Premiers' Council

 

58.       (1)        Subject to the Constitution, the Prime Minister shall have the power to call meetings of the Premiers' Council,

            provided that at least three weeks prior notice has been given in writing to all Provincial Premiers, or such other notice as may be provided for by law.

 

            (2)        The Prime Minister shall call the Premiers' Council to meet not later than one month after receipt of a ..... by at least three Provincial Premiers.

 

Regulation of Council procedures

 

59.       The Premiers' Council shall have the power to regulate its own procedures.

 

Reports by the Premiers' Council

 

60.       (1)        The Premiers' Council shall have the power to make direct reports to the National Executive Council and the National Parliament.

 

            (2)        The reports provided for in Clause (1) may contain recommendations concerning the distribution of powers and functions between the national government and provincial governments, and such other aspects of relations between provincial governments and between the national government and provincial governments as the Premiers' Council may determine.

 

            (3)        The Prime Minister shall forward a report that has been directed to the National Executive Council in a submission to that body in accordance with the procedures specified in Chapter 7, "The Executive".

 

            (4)        A report that has been directed to the National Parliament shall be forwarded to the Speaker, who shall table the report in the National Parliament not later than the first meeting of the parliament after he has received the report.

 

Resolution of conflict

 

61.       The national government and provincial governments shall strive to resolve all conflicts by negotiation.

 

Disputes between governments

 

62.                   (1)        Disputes between provincial governments or between the national government and a provincial government that cannot be settled through direct negotiation shall, in the first instance, be referred to an independent body comprised of one or more persons who are acceptable to the parties to the dispute as mediators.

 

            (2)        If the two parties to a dispute are unable to agree upon the composition of the mediating body provided for in Clause (1), or if that body is unable to resolve the dispute, then either party may refer the dispute to the Premiers' Council, which may seek to resolve the dispute itself or may appoint a body to mediate between the two parties.

 

            (3)        Judges of the National Court of Justice and Provincial Premiers shall be eligible for appointment to the mediating bodies provided for in Clauses (1) and (2),

            except that the Premier of a provincial government which has a direct interest in the outcome of a dispute shall not be eligible for appointment to a mediating body (other than the Premiers' Council itself) appointed under Clause (2).

 

            (4)        A dispute between provincial governments, or between the national government and a provincial government may be taken before the Supreme Court by any of the parties concerned,

            provided that an attempt has previously been made to resolve it through the procedures provided in Clauses (1) and (2) above;

                                    and provided that the dispute concerns a matter of law.

 

            (5)        No judge shall be a member of the Supreme Court which hears a case under Clause 4 if he has previously been a member of a body appointed under Clause (1) or Clause (2) to hear the same dispute.

 

Suspension of provincial governments

 

63.      (1)        Subject to the Constitution, the National Executive Council may suspend and take over all of the activities of a provincial government in accordance with law.

 

            (2)        The National Executive Council may exercise its powers under Clause (1) when, in any province -

 

            (a)        there is widespread corruption;

 

            (b)        gross financial mismanagement has occurred;

 

            (c)        there has been a break ..... administration;

 

            (d)        there has been deliberate and prolonged frustration of lawfully made national government directives;

 

            (e)        the provincial government has persistently exceeded its lawful powers;

 

            (f)         a state of emergency has been declared in accordance with the Recommendations in Chapter 4, "Human Rights and Obligations, and Emergency Powers"; or

 

            (g)        a Provincial Assembly lawfully resolves by majority vote that the provincial government be taken over.

 

            (3)        The Minister responsible for provincial government affairs shall report to the National Parliament at the first meeting of the parliament after a provincial government has been suspended on the circumstances in which the decision to suspend the provincial government was made.

 

            (4)        Subject to the Constitution, the Minister responsible for provincial government affairs shall announce (by notice in the Government Gazette) the date on which new elections to the Provincial Assembly (including the office of Premier) shall be held, not later than six months after the provincial government was suspended, and those elections shall be held not later than nine months after the provincial government was suspended.

 

            (5)        The period of time for which a provincial government is suspended may be successively extended for up to six months at a time if the individually recorded votes of an absolute majority of the members of the National Parliament support a motion to that effect.

 

              (6)        If the period of time for which a provisional government has been suspended is extended in accordance with Clause (5) above, the Minister responsible for provincial government affairs shall report to each successive meeting of the National Parliament on the state of affairs in the province until such time as the date of new provincial elections has been announced in accordance with Clause (4) above.

 

Minister responsible for provincial government affairs

 

64.       The Minister responsible for provincial government affairs should be a Minister of high standing in the Government.

 

IMPLEMENTATION AND INTERIM PROVISIONS AND FOLLOW-UP

 

Establish provincial governments without delay

 

65.       Subject to the Constitution, provincial governments established in accordance with Recommendations 1 to 64 shall be set up throughout Papua New Guinea without undue delay.

 

Establishment in stages

 

66.       Provincial governments may be established in stages in accordance with the Constitution.

 

Establishment before Constitution in force

 

67.       The establishment of provincial governments in accordance with the recommendations in this Chapter should commence as soon as possible and should not await the coming into force of the Constitution.

 

Three stages

 

68.       (1)        Provincial governments established in accordance with Recommendations 1 to 64 shall be classified as Stage Three Provincial Governments.

 

            (2)        Provincial governments established in accordance with the recommendations concerning Stage One and Stage Two Provincial Governments are only transitional and their establishment does not satisfy the requirements of Recommendations 1 and 65.

 

            (3)        As soon as Stage Three Provincial Governments have been established throughout Papua New Guinea, the Recommendations concerning Stage One and Stage Two Provincial Governments shall be null and void and of no effect.

 

Initiative in establishment of provincial governments

 

69.        (1)        Subject to the Constitution, a provincial government shall be established in a district in accordance with a motion supported by the individually recorded votes of an absolute majority of the members of an existing Area Authority.

 

            (2)        A motion passed by an Area Authority in accordance with (1) shall specify whether the provincial government to be established shall be a Stage One or a Stage Two or a Stage Three Provincial Government.

 

             (3)        A Stage One Provincial Government shall be reconstituted as a Stage Two or a Stage Three Provincial Government, and a Stage Two Provincial Government shall be reconstituted as a Stage Three Provisional Government in accordance with a motion supported by an absolute majority of the individually recorded votes of the members of a Provincial Assembly.

 

            (4)        Subject to its own rules of procedure, each Area Authority and each Provincial Assembly shall have the power to approve a motion in accordance with Clauses (1), (2) and (3) at any time.

 

            (5)        Stage Two Provincial Government shall be established in districts without Area Authorities as soon as practicable.

 

Request for provincial government to National Executive Council

 

70.       A resolution made by an Area Authority or a Provincial Assembly in accordance with Recommendation 69 shall be forwarded by the Chairman or Premier (as the case may be) to the Minister responsible for provincial government affairs, who shall forward the motion in a submission to the National Executive Council in accordance with the procedures recommended in Chapter 7 "The Executive".

 

Implementing resolution to establish provincial government

 

71.       A resolution to establish or to re-establish a provincial government shall be brought into effect as soon as practicable after it has been considered by the National Executive Council.

 

Reports to Parliament on implementation

 

72.      (1)        The Minister responsible for provincial government affairs shall report any resolutions to establish (or to re-establish) a provincial government to the National Parliament not later than the next meeting of the parliament after the submission provided for in Recommendation 70 has been considered by the National Executive Council.

 

            (2)        Following the making of a report in accordance with Clause (1), the Minister responsible for provincial government affairs shall make a full report at each successive meeting of the National Parliament on progress made in implementing every resolution to establish (or to re-establish) a provincial government, and he shall provide detailed information as to the causes of delay, until all such resolutions have been brought into effect.

 

Election and removal of Provincial Council

 

73.     (1)        The Premier shall be elected by the members of the Provincial Assembly from among their own number, unless the first Provincial Assembly to be directly elected by the people decides by a two-thirds majority of the individually recorded votes of the members that the Premier shall be directly elected by the people.

 

           (2)        A motion that the Premier be directly elected shall also make provision for the removal of a Premier from office.

 

           (3)        Subject to Clauses (1) and (2), the first Provincial Assembly shall determine the procedures for the removal of a Premier from office, and for the appointment and removal from office of members of the Provincial Council.

 

           (4)        Decisions made in accordance with Clauses (1), (2) and (3) shall be incorporated in the document that establishes each provincial government.

 

Protection for local government bodies

 

74.      (1)        Subject to the Constitution, those bodies exercising governmental functions at the local level in each province at the establishment of provincial government in that province shall be protected by the Constitution so that each of them may continue -

 

            (a)        to exercise those powers and functions it had actually exercised prior to the establishment of the provincial government;

 

            (b)        to derive revenue from those sources other than direct grants from the national government from which it had actually derived revenue prior to the establishment of the provincial government; and

 

            (c)        to exist, notwithstanding any action taken in accordance with Clauses (2) and (3) below.

 

            Note:    In accordance with Recommendation 21(1), the powers, functions and sources of revenue legally vested in, but never exercised by, local government bodies are vested in the provincial government at its establishment.

 

            (2)        The bodies specified in Clause (1) may negotiate with the provincial government to transfer powers, functions and sources of revenue specified in paragraphs (a) and (b) of Clause (1) above to the provincial government.

 

            (3)        The bodies specified in Clause (1) may be deprived by the provincial government of powers, functions and sources of revenue specified in paragraphs (a) and (b) of Clause (1) above if a motion to that effect is supported by a majority of two-thirds of the individually recorded votes of the members of the Provincial Assembly.

 

            (4)        The bodies specified in Clause (1) may at any time dissolve themselves.

 

            (5)        The bodies specified in Clause (1) may be abolished by the provincial government if a motion to that effect is supported by a majority of three-quarters of the individually recorded votes of the members of the Provincial Assembly.

 

Stage One and Stage Two Accounts

 

75.      (1)        Stage One and Stage Two Provincial Governments shall be treated as self-accounting departments of the national government until the first grants to provincial governments have been made in accordance with Recommendations 30 to 34 and 38 to 41.

 

            (2)        The National Fiscal Commission provided for in Recommendations 38 to 41 should be established as soon as possible, and in any case not later than the end of 1975.

 

Interim Provincial Government

 

76.       A Stage One Provincial Government shall be called an "Interim Provincial Government", and the body established in accordance with Recommendation 4 shall be called the "Interim Provincial Assembly".

 

Interim Provincial Assembly

 

77.       Subject to Recommendation 78, the Interim Provincial Assembly shall comprise -

 

            (a)        members chosen by bodies exercising governmental functions at the local level; and

 

            (b)        members co-opted to membership in accordance with Recommendation 12.

 

Direct elections for Interim Provincial Assembly

 

78.       Recommendation 7 shall come into force in accordance with Recommendation 8.

 

            Note:    This provision means that Stage One Provincial Assemblies will be directly elected by the people at elections held three months after the next general elections for the national parliament.

 

Chairman of Interim Provincial Government

 

79.       The head of the Interim Provincial Government shall be called the "Chairman", and, subject to Recommendations 73 and 78, he shall be elected by the members of the Interim Provincial Assembly from among their own number.

 

Interim Provincial Council

 

80.       The executive body of the Interim Provincial Government shall be called the "Interim Provincial Council", and it shall be established in accordance with Recommendations 18 and 19.

 

Allowances for members of Interim Provincial Assembly

 

81.       Members of the Interim Provincial Assembly (including the Chairman and members of the Interim Provincial Council) shall receive no remuneration for their official duties other than sitting allowances determined in accordance with the Constitution.

 

Powers and functions at Stage One

 

82.       The powers and functions vested in provincial governments by virtue of Recommendations 21, 22, 23(1) and 23(3) shall thereby be vested in Interim Provincial Governments, but Recommendation 23(4) shall not apply.

 

Revenue-raising at Stage One

 

83.       The revenue raising powers vested in provincial governments by virtue of Recommendations 25, 26 and 27 may be vested in Interim Provincial Governments (by incorporation in the documents establishing them) with the consent of the national government.

 

Responsibility for projects at Stage One

 

84.       Interim Provincial Governments shall have the power to undertake projects as provided for in Recommendation 34(1), and they shall receive grants from the national government for that purpose.

 

Budgeting at Stage One

 

85.       The Interim provincial Government shall have its own budget, and shall be responsible for as much of its own accounting and recurrent expenditure as is practicable.

 

Executive officer and other staff of a Stage One Provincial Government

 

86.       (1)        The Interim Provincial Assembly shall be serviced by an Executive Officer, who shall be appointed in the same manner and be subject to the same conditions as are specified in respect of the Provincial Secretary in Recommendations 46, 47 and 48.

            (2)        Recommendation 8(2) in Chapter 12, "The Public Services", shall not apply in respect of a Stage One Provincial Government.

 

Provincial Commissioner

 

87.       There shall be a public officer in each province who shall be designated the senior public officer in that province, and who shall be called the "Provincial Commissioner".

 

Provincial Commissioner's department

 

88.       The Provincial Commissioner should be a member of a separate department of the national government, which should be under the control of a senior Minister.

 

Co-ordination at Stage One

 

89.       (1)        The Provincial Commissioner shall co-ordinate the administration of the province.

 

            (2)        The heads of all government departments in the province should work together as a team, and shall meet under the chairmanship of the Provincial Commissioner, as the Provincial Commissioner may determine.

 

            (3)        The Provincial Commissioner shall have the same powers over all public officers in the province as a Departmental Head has over officers of a national government department, except in relation to technical and professional matter.

 

Provincial Commissioner and Interim Provincial Assembly

 

90.       The Provincial Commissioner may participate in meetings of the Interim Provincial Assembly as the assembly may determine.

 

Provincial Development Committee

 

91.      (1)        There shall be a Provincial Development Committee, which shall comprise the Interim Provincial Council and, subject to (2), the heads of key government departments in the province.

 

            (2)        The Interim Provincial Council shall have the power to determine which departmental heads in the province shall be members of the Provincial Development Committee.

 

            (3)        The Provincial Commissioner shall be the Chairman of the Provincial Development Committee until such time as the Chairman of the Interim Provincial Government wishes to assume the duties of Chairman of the Provincial Development Committee.

 

Planning at Stage One

 

92.       The Provincial Development Committee shall be responsible for preparing plans for the development or improvement of the province.

 

Establishment of Stage Two Provincial Government

 

93.       A Stage Two Provincial Government shall be established in accordance with Recommendations 1 to 19.

 

Powers and functions at Stage Two

 

94.       The powers and functions (including revenue-raising powers) vested in Interim Provincial Governments in Recommendations 82, 83, 84 and 85 shall be vested in Stage Two Provincial Governments in accordance with those recommendations,

            except that Stage Two Provincial Governments should be able to negotiate in accordance with Recommendation 23(4) for the transfer to them of authority over those powers and functions that appear in the 'B' list of the Schedule to this Chapter.

 

Appointment of Provincial Secretary and other staff at Stage Two

 

95.     (1)        There shall be a Provincial Secretary who shall be appointed in the same manner and shall be subject to the conditions specified in Recommendations 46, 47 and 48.

 

            (2)        Recommendation 8(2) in Chapter 12, "The Public Services" shall apply in respect of the senior officers working for a Stage Two Provincial Government.

 

Salary and Conditions of Provincial Secretary at Stage Two

 

96.       The salary and other conditions of service attached to the office of Provincial Secretary in a Stage Two Provincial Government shall be not less terms than those attached to the office of Departmental Head of a national government other (and less senior) than those specified in Recommendation 49.

 

            Note:    The equivalent in present terms would be a Level One position in the Public Service.

 

Alternative forms of organisation at Stage Two

 

97.      (1)        Subject to (2), the administration of a province with a Stage Two Provincial Government shall be organised in accordance with Recommendation 98 or Recommendations 99 to 101.

 

            (2)        The Provincial Assembly of a Stage Two Provincial Government shall determine by majority vote whether the administration of the province shall be organised in accordance with Recommendation 98 or Recommendations 99 to 102.

 

Single Structure at Stage Two

 

98.       Subject to Recommendation 97 and the Constitution, the administration of a province with a Stage Two Provincial Government shall be organised so that -

 

            (a)        the Provincial Secretary co-ordinates the administration of the province, and has the power to call and to act as chairman of meetings of the heads of all government departments in the province;

 

            (b)        the Provincial Secretary is the principal public officer in the province, with the same powers over all public officers and provincial government staff as a Departmental Head has over officers of a national government department;

 

            (c)        the Provincial Secretary is delegated certain disciplinary powers by the Public Services Commission over all junior public officers to a specified level in the province;

 

            (d)        the Provincial Secretary is kept fully informed of the contents of all communications between the headquarters (including regional headquarters, if any) of national government departments and their officers in the province; and

 

            (e)        the Provincial Development Committee provided for in Recommendation 91 meets under the chairmanship of the Provincial Premier.

 

Dual Structure at Stage Two

 

99.       Subject to Recommendation 97, the administration of a province with a Stage Two Provincial Government shall be organised so that -

 

            (a)        the Provincial Secretary is the senior member of the provincial government staff;

 

            (b)        there is a public officer who has been designated the senior agent in the province for the national government, and who controls and co-ordinates the activities of national government departments in the province; and

 

            (c)        there is a Provincial Management Committee comprising the Provincial Council, the senior agent in the province for the national government, and, subject to Recommendation 100(2), the heads of key government departments in the province.

 

Provincial Management Committee

 

100.     (1)        The Premier shall be the Chairman of the Provincial Management Committee.

 

            (2)        The Provincial Council may choose the provincial departmental heads to be members of that Committee.

 

Senior national government agent in the province

 

101.     The senior national government agent in the province designated in accordance with Recommendation 99(2) shall have -

 

            (a)        the same powers over all public officers working for national government departments in the province as a Departmental head has over officers of a national government department; and

 

            (b)        the power to call, and to act as chairman at, meetings of the heads of all national government departments in the province.

 

Devolution to begin at once

 

102.     The devolution of administrative authority in accordance with Recommendation 44 should not await the coming into force of the Constitution:  it should begin at once.

 

Department of Provincial Affairs

 

103.     Consideration should be given to the establishment of a national Department of Provincial Affairs.

 

Reduction and Re-orientation of national departments

 

104.                 (1)        Consideration should be given to the re-organisation and reduction in size of the headquarters of national government departments to accord with their new role under the system of provincial government recommended in this Chapter.

 

            (2)        National government departments should be re-oriented so that they -

 

            (a)        provide technical and professional assistance and advice at the request of provincial governments;

 

            (b)        provide training for provincial government staffs;

 

            (c)        plan and implement national projects in accordance with Recommendation 34;

 

            (d)        provide advice and assistance in relation to national strategies and policies; and

 

            (e)        are otherwise able to perform their lawful duties under the system of provincial government recommended in this Chapter.

 

Disband regional headquarters

 

105.     Regional headquarters of national government departments should be disbanded as soon as possible, and their staffs should be transferred to work in the provinces.

Review of Provincial Government Provisions

 

106.                 (1)        Three years after the Constitution comes into force, the Premiers' Council shall appoint a body comprised of people who are not members of that Council to review the operation of the system of provincial government recommended in this Report, and to make recommendations for its future operation.

 

                        (2)        The review body provided for in Clause (1) shall pay particular attention to the distribution of powers and functions between the national government and provincial governments, the financial resources made available to provincial governments, and sources of conflict between governments.

 

            (3)        The review body provided for in Clause (1) shall report to the premiers' Council, which shall forward a copy of the report to the Speaker who shall table it in the National Parliament in accordance with Recommendation 60(4).

 

Follow-up to C.P.C.

 

107.    (1)        The House of Assembly should choose a committee of six or eight members of the House to provide assistance in the implementation of the system of provincial government recommended in this Chapter.

 

            (2)        This Committee should comprise six or eight experienced members of the House of Assembly, broadly representative of opinion in the House, and committed to the realisation of the recommendations made in this Chapter.

 

            (3)        The Committee should be provided with the assistance of qualified people who are ...

 

???       (2)        To the extent that Recommendation 77 is inconsistent with Recommendations 5, 6 and 7, the former shall prevail in accordance with the Constitution.

 

Note:   This provision is intended to ensure that Interim Provincial Assemblies do not have to be directly elected.

 

            (3)        To the extent that Recommendation 43(2) is inconsistent with Recommendations 86(2) and 95(2), and Recommendations 86(2) and 95(2) are inconsistent with each other, Recommendation 86(2) shall prevail in the case of a Stage One Provincial Government, Recommendation 95(2) shall prevail in the case of a Stage Two Provincial Government, and Recommendation 43(2) shall prevail in the case of a Stage Three Provincial Government.

 

            (4)        References in this Chapter to the National Parliament, the National Executive Council and the Supreme Court shall be interpreted so as to refer respectively to the House of Assembly, the Executive Council, and the present Full Court of the Supreme Court until such time as the Constitution comes into force.


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