NATIONAL PARLIAMENT OF SOLOMON ISLANDS

 

PUBLIC ACCOUNTS COMMITTEE TRANSCRIPT

 

Inquiry into the 2007 Supplementary Appropriation Bill 2007 - Head 274: Ministry of Foreign Affairs, External Trade and Immigration

 

Monday 6 August 2007

 

(Uncorrected Version – subject to changes upon revision)

 

 

MINISTRY OF FOREIGN AFFAIRS

 

 

Chairman:  .in which $5.4 million has been appropriated to Ministry of Foreign Affairs, Trade and Immigration.  The Permanent Secretary and his accountant are here to explain how that money is going to be used.  I thank the Permanent Secretary and his colleague for coming.  Thank you for your time.  I will give you the time to explain why you need that money before we can ask you some questions if we have some on your submission.

 

Permanent Secretary:  Thank you Chairman, and members of the Committee for the opportunity to look at this supplementary for Ministry of Foreign Affairs, External Trade and Immigration.  We all understand that there is only a certain amount of the cake that we can have on that.  What we have is the same percent of what we requested earlier in our supplementary and we fully understand that we can’t have everything but at least we get something

            The 5.4 million that we have there has indicated most of those given bodies.  We did meet with the Ministry of Finance and Treasury when we submitted our supplementary to them so when this came out as it is we were not really sort of happy or satisfied because of the priorities.  Of course these are priorities but we also have other priorities, and at this stage I would like to say that we were expecting the shortfalls in overseas missions to take precedence over this.  But be that as it may we accept the allocation that has been given to us to the supplementary and we will work on it on our arrangements when the budget is passed to give money to other goals which that are also priorities within the Ministry.  Thank you Chair, I will leave it at that.

 

Chairman:  Thank you Permanent Secretary.  $5.4 million is primary going to meet commitments of the Ministry to overseas bodies.  Any queries on that?

 

Hon Fono:  Chairman, are all these agencies or international organizations that we have arrears with because some are not included in it?

 

Permanent Secretary:  Yes, Chairman, the others come under what you have on payment to overseas bodies and thus others.  That includes bodies like FFA, the Forum Secretariat, Regional Organizations that are not specifically given subheads for that.  It does include some arrears and also current contributions.

 

Hon Fono:  Can the Permanent Secretary explain to the Committee how they are going to meet the shortfalls on our missions because given the fact they are in different countries and maybe the allocations are not enough to allow their offices to continue until the end of the year?  How are we going to address that problem since your submissions were not included in this year’s current supplementary budget?

 

Permanent Secretary:  Thank you Chair, and thank you honourable member for that question.  As I have said, the only option that we have left is we are going to vire from some of these funds that were approved in the supplementary.  Have they given us the opportunity to come back to us before it went through Cabinet we would like to see overseas missions to be given priority here.  That would have been our position.  But since that is not the case we have no choice but we are going to vire from these funds and if need be we are also going entitle to apply for contingency funds.

 

Chairman:  The capital expenditure started off with $6,000 and then it went up to $2 million.

 

Permanent Secretary:  Thank you chair, the initial amount that we have submitted for this year’s budget left for that capital expenditure is for a passport printing machine for Immigration Division.  We did request the $2 million something for this year’s budget but we were only given $6,000.

 

Chairman:  This trade mission, where is this?

 

Permanent Secretary:  This external trade division as you know is now of Foreign Affairs and this is basically for trade missions that we intend to undertake to various countries especially in the South East Asian Regions.

 

Chairman:  My concern is that all these payments are standing payments.  They are standing payments for the Ministry’s commitment over the years and I am just surprised that they are appearing in this supplementary.  I would have thought that this one should have been submitted in the budget proper seeing that it is the cost that has been seen in the Ministry all these years.  I am just concerned why were they not included in the proper budget of the Ministry?

 

Permanent Secretary:  Thank you chair, they were of course included.

 

Chairman:  Have they been resubmitted?

 

Permanent Secretary:  Yes, ...........as we know that what we requested is not what we get at the end of the day so hence we have to submit that and of course we also have to vire from some of these to meet other .....  It is quite a normal thing that happens in most of the government ministries.

Chairman:  The idea for printing passports – whose idea is this?

 

Permanent Secretary:   The Immigration Department.

 

Chairman:  I think it is about time we print some passports here now.

 

Permanent Secretary:  Yes.  It is basically the machine.  We do have the papers.  The papers are there already but it is just the machine to print the actual passports.

 

Chairman:  I think the Ministry of Finance would ask for a Mint to print some money.

 

Chairman:  Any more queries?

 

Hon Koli:  I understand that one of the Ministers and the Minister for Commerce went for a WTO meeting in one of the countries overseas, and they did so because we did not comply to pay ....  Has this been sorted out?

 

Permanent Secretary:  We are trying to but that is the implication that sometimes we do not pay up to some of these international organizations.  We loose up the whole thing.  At the same time we are members to these organizations and we have our obligations.  It does have implications on our image as well if we do not pay up in time.  We are fully committed to the importance of our membership.  On the other hand we are also fully aware of the fact that we need to fully utilize these organizations to the fullest in terms of what benefits that we have with them.

 

Chairman:  And when we are not paying they will simply tell us not to.  Any more queries?

 

Chairman:  This MSG, is an interesting question.  Has the Secretariat already been established?  Have we given half a million to them?

 

Permanent Secretary:  They are building the building now.  The opening of the building in Port Vila, Vanuatu will be on the 14th of September.

 

Chairman:  There are no more questions.  Thank you so much for coming and for your time.

 

Permanent Secretary:  Thank you Chairman, and members of the Committee.

 

Chairman:  You may now go in peace, and thank you.