Shadow Attorney-General Keith Iduhu has expressed disappointment with regards to debate on amendments to Central Banking Act brought forward by Treasurer Ian Ling Stuckey was blocked by the government.
Mr. Iduhu who is also the member for Hiri-Koiari said it was disappointing to debate on an important amendment to the Central Bank’s functions were blocked without proper oversight by the house.
He further confirmed that the IMF has overreaching powers controlling PNG’s fiscal and monetary policies.
Mr. Iduhu said, “I’m no economist, but the independence of the Central Bank is to ensure that it manages the monetary policy of the country, while the fiscal policy is the government’s responsibility.
“The amendment yesterday was a sham. While the treasurer floated words like price stability and many other cosmetic changes to the Central Bank Act, what was glaring and not properly debated and discussed was the proposition that a ‘monetary policy committee’ would be set up.
“This committee would then be subjected to the Treasurer’s oversight, who by and large is responsible for the fiscal policy of the nation.
“This basically means that the treasurer is giving himself dual roles to provide scrutiny and oversight on the monetary policy.
More worryingly, the Treasurer did concede that the amendments were based on the interventions imposed by the IMF.
Mr. Iduhu said this should be a for concern all the members of parliament when we are effectively letting a foreign corporation dictate our monetary policy.
He said that these amendments would have no consequence to the price of basic goods and services. It would have no consequence to correcting the economy.
