NATIONAL PARLIAMENT OF SOLOMON ISLANDS

 

PUBLIC ACCOUNTS COMMITTEE TRANSCRIPT

 

Inquiry into the 2007 Supplementary Appropriation Bill 2007 - Head 288: Ministry of Commerce, Industry and Labour

 

Friday 3 August 2007

 

(Uncorrected Version – subject to changes upon revision)

 

 

 

Mr J Wickham (PS):  As you can see there is only one item, subhead 0181-6152 – provincial …….. As you would appreciate there were a number of activities being organized, one of course is the Cultural Trade Show and we are also assisting Rennell/Bellona Province, allocating a further $285,000 for the hosting of a mini show or cultural festival.  Otherwise as you can see that has gone up over and above our budget allocation for this year.  This amount, we hope, should be able to cover some of the additional expenses incurred. 

Also there were quite a number of bills that we are yet to pay for, still outstanding especially for Auki and to Small and Medium Enterprise Council who is the organizer of the Trade Show. 

As you would appreciate it is quite expensive operating or running trade shows in the provinces given the logistics and also other expenses normally are quite higher than what one would expect if we are to host such shows.  This is the program we are now in so we are intending to continue this program for other provinces as of next year.  For the meantime this amount should be sufficient for us to meet our outstanding commitments.  Thank you Chairman.

 

Hon Fono:  I would like to thank the Permanent Secretary for his explanation of his budget that is allocated under the Supplementary Budget.  Can the PS inform the Committee on his submission to the Budget Unit because as far as the submission is concerned, it is much higher than what is allocated now for his Ministry? 

PS, are there any reasons given by the Budget Unit as to why it cuts your submission giving you only $500,000, which has already been spent on the recent Trade Show? 

There are other important items that you have included in your submission, which were not included in the supplementary budget.  Has the Budget Unit given you any reasons as to why it cuts your submission?

 

Mr J Wickham (PS):  Unfortunately, I am not fully versed with the decisions as to why our submission was omitted.  There may be reasons which I am not being informed formally.  But as you would note in our submission there were a number of heads that we wanted to be included but which are not catered for.  Take for example the recruitment of Parliament Secretaries.  We have expended substantial amount of money to renovate offices, purchase tables, chairs, laptops, cabinets, etc, and we need funding for these so that it could take care of those. 

Also we have outstanding affiliation fees in particular to the International Labour Organisation and Asia & Pacific Coconut Community.  Originally we were told that Foreign Affairs will meet all these costs in terms of affiliation fees to organizations.  It just came out recently that Foreign Affairs is not in the position to do so and so we have decided to request. 

This is very, very important because my Minister was very embarrassed in the last ILO meeting because he was not able to vote in the ILO Meeting Convention in Geneva.  These are international obligations and it is something that all governments need to take serious consideration if we are to continue receive assistance from such organizations.  Our vote is important and so our affiliation fees must be paid in time.  It is rather unfortunate that even for these organizations which our Ministry is affiliated to are not being paid for in particular ILO, Asia & Pacific Coconut Community, which is responsible for copra and UNIDO (United Nations Industrial Development Organization). 

Further down below there are student fees.  As you know there is the National Test Training and Testing Unit which is part of Labour.  Early this year we were told by SICHE that there is an increase in fees and there is an additional 74 students that need to be sponsored through the National Trade Training Testing.  We do not have that money at this stage which amounts to about $500,000 plus allowances for the apprentices.  This is something which came up early this year which the Ministry has not been informed early.  If it has been informed earlier we would have included these.  

This is important because these students are studying according to program but no fees paid to SICHE and if we can be able to pay for their fees we might be able to help the students continue with their studies. 

The others of course, I can say just leave them like provincial tours, conference, seminars etc. 

The other one of course is office rental.  As you know the Ministry has been renting a residence up here for the Labour Office.  We were hoping that the renovation of the Ministry of one part of the building to be completed before June/July.  Unfortunately that did not happen and so we are still continuing to rent the premises and so we are asking for additional funds.  But that is the submission we made.  May be the Budget Unit is in a better position to further tell us anything.

 

Mr Chairman:  Can you just confirm whether this is your submission to the budget process where you ask for $2.5million and you were only given $500,000?

 

Mr J Wickham (PS):  That is right.

 

Mr Chairman:  And there was no feedback from them on your submission.

 

Mr J Wickham:  I do not have any feedback.  May be the Chief Accountant might have it, but I do not know.

 

Mr Chairman:  No feedback.  Any more questions on this $500,000 for trade shows?

 

Hon Fono:  Can the PS explain how they spent this $500,000?

 

Mr J Wickham (PS):  There is allocation of about $600,000 under the 2007budget.  You would note that two months prior to the occasion we provided about $250,000 to SMEC, a further $250,000 to Malaita Provincial Assembly account to run the Agriculture and Cultural Show and a further additional $180,000 to meet outstanding costs just a week after the Trade Show.  All these are virements under the accounts. 

To date we have about $150,000 outstanding yet to be paid.  Also given the time period and the fact that the occasion was coming quickly, we have also decided to help renovate some of the premises in Auki for purposes of accommodating delegates going over to Auki.  This amount is well beyond.  We even have to pay the CSP about $100,000 for the groundwork for the place where the Agriculture Show was staged, which was not included in the Budget but because the showground is in a swampy area we have to give funds to do the groundwork.  These are additional unexpected costs that we have to pay.

 

Hon Fono:  As these are public funds, were they given out as imprest so that they have to be reimbursed showing how the funds were spent?

 

Mr J Wickham:  We expect them to provide reports.  As far as MMEC is concerned we have received a preliminary report.  We would also expect Malaita Provincial Assembly to provide us with its report on this.

 

Mr Chairman:  Any other queries or questions.  Seeing that there are no queries or questions I think that is it.  Thank you Permanent Secretary and your officials for coming.