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Autonomous Bougainville Government Joint Review of Bougainville’s Autonomy Arrangements by Government of Papua New Guinea and the Autonomous Government of Bougainville Joint Report by both governments to the Bougainville House of Representatives and the National Parliament of Papua New Guinea pursuant to the National Constitution Section 337(1)(a) 26 October 2013 Endorsed by Joint Supervisory Body on 18 October 2013 at Kokopo, East New Britain Province and the Referendum Committee 26 October 2013 at Kokopo, East New Britain Province. Published by Government Printer Waigani, PNG Joint Review of Bougainville’s Autonomy Arrangements by Government of Papua New Guinea and the Autonomous Government of Bougainville Joint Report by both governments to the Bougainville House of Representatives and the National Parliament of Papua New Guinea pursuant to the National Constitution Section 337(1)(a) 26 October 2013 T a b l e O f Con t e n t s Acronyms ________________________________________________ iii Foreword _________________________________________________ v Joint Resolutions __________________________________________ vi 1. Purpose of the Review & Methodology ____________________ 1 1.1 The Constitutional Requirements _________________________________________ 1 1.2 The Independent Experts and the Consultations _____________________________ 4 2. Review of the Bougainville Constitution ___________________ 6 3. Bougainville in Brief ___________________________________ 7 3.1 Population___________________________________________________________ 7 3.2 Constitutional Foundations ______________________________________________ 7 3.3 Government _________________________________________________________ 9 3.4 Regions and Districts _________________________________________________ 10 3.5 The Public Service ___________________________________________________ 10 4. Autonomy ___________________________________________ 12 4.1 Bougainville’s Autonomy ______________________________________________ 12 4.2 Understanding Autonomy ______________________________________________ 14 4.3 The People and Leader’s Views _________________________________________ 16 4.4 Linkages between autonomy and development _____________________________ 19 4.5 Categories of Functions and Powers Available to the ABG ____________________ 20 5. Social and Economic __________________________________ 27 5.1 Local Economy ______________________________________________________ 27 5.2 Impact of economic development under autonomy on social development ________ 28 5.3 State of Health Services _______________________________________________ 29 5.4 State of education ____________________________________________________ 30 5.5 Crime situation (Law and Order) ________________________________________ 31 5.6 Human Resources Development ________________________________________ 33 6. Grants and Revenue __________________________________ 35 6.1 The Organic Law and Grants ___________________________________________ 35 6.2 Taxation ___________________________________________________________ 38 6.3 Revenue Overview ___________________________________________________ 39 6.4 Development partner assistance ________________________________________ 43 6.5 Progress towards Fiscal Self-Reliance ____________________________________ 44 6.6 PNG Government Assistance and Services Not on ABG Budget________________ 45 6.7 Have the disbursements of grants been consistent? _________________________ 47 6.8 Effective Use of Grants by ABG and National Government ____________________ 47 7. Taxation ____________________________________________ 50 7.1 Legal and policy basis of taxation in Bougainville ____________________________ 50 7.2 Quick summary ______________________________________________________ 50 7.3 The taxation arrangements _____________________________________________ 53 7.3 Findings ___________________________________________________________ 55 __________________________________________________________________________________________________ TABLE OF CONTENTS i T a b l e O f Con t e n t s 7.4 IRC support for Bougainville ____________________________________________ 57 8. Public Administration _________________________________ 59 8.1 Overview___________________________________________________________ 59 8.2 Overall Progress of Implementation of Autonomy ___________________________ 59 8.3 How is good governance to be measured? ________________________________ 62 8.4 Overall assessment of good governance in public administration _______________ 69 8.4 Capacity Development ________________________________________________ 70 9. Legal and Constitutional _______________________________ 73 9.1 Non-compliance with constitutional requirements relating to transfer of powers and functions. _______________________________________________________ 73 9.2 Capacity of House of Representatives (House) _____________________________ 76 9.3 Legal Capacity – Office of the Principal Legal Officer ________________________ 76 15.5 Policing and Correctional Services in Bougainville ___________________________ 77 9.5 Mining _____________________________________________________________ 82 10. The Referendum______________________________________ 87 10.1 The Law ___________________________________________________________ 87 10.2 The People’s Views __________________________________________________ 88 10.3 Critical Unresolved Organisational Questions ______________________________ 90 10.4 Who can vote? ______________________________________________________ 92 10.5 What are the choices on the ballot paper? _________________________________ 93 10.6 Decision to not hold the Referendum _____________________________________ 93 10.7 Fair and Free _______________________________________________________ 94 10.8 Timing of the Referendum _____________________________________________ 94 11. Feedback to the people ________________________________ 96 ANNEX: PLACES AND PEOPLE VISITED BY EXPERTS __________ 97 __________________________________________________________________________________________________ TABLE OF CONTENTS ii Joint Review of Bougainville’s Autonomy Arrangement’s by the Government of Papua New Guinea and the Autonomous Government of Bougainville as at 1 August 2013 Acronyms ABG Autonomous Bougainville Government ARB Autonomous Region of Bougainville BCL Bougainville Copper Limited BEC Bougainville Executive Council Bougainville Autonomous Region of Bougainville Bougainville Constitution Constitution of the Autonomous Region of Bougainville 2004. Certified on: 21/12/2004. (An Act of the Parliament of the Independent State of Papua New Guinea.) Company Tax Tax on the profits of companies whose principal place of business or where the main business activity is in Bougainville. (Company tax is a PNG national tax which continues to apply in Bougainville) GST Goods and Services Tax (a PNG national tax which continues to apply in Bougainville – it was previously known as the VAT or Value Added Tax) Independent Experts The individuals appointed to conduct the separate expert reviews of specific subject matter under Section 337(2) of the Papua New Guinea Constitution IRC Papua New Guinea Internal Revenue Commission KRA Key Result Area MoU Memorandum of Understanding National Government Government of the Independent State of Papua New Guinea NCOBA National Coordinating Office for Bougainville Affairs Organic Law Organic Law on Peace -Building in Bougainville-Autonomous Bougainville Government and Bougainville Referendum 2002 Papua New Guinea Constitution Constitution of the Independent State of Papua New Guinea Peace Agreement Bougainville Peace Agreement signed at Arawa on 30 August 2001 and published in National Gazette No. G.146 of 16 November 2001 PGAS Provincial Government Accounting System PNG Independent State of Papua New Guinea Region Autonomous Region of Bougainville RPNGC Royal Papua New Guinea Constabulary SML Special Mining Lease ___________________________________________________________________________________________________ MAP OF BOUGAINVILLE iii Joint Review of Bougainville’s Autonomy Arrangement’s by the Government of Papua New Guinea and the Autonomous Government of Bougainville as at 1 August 2013 ___________________________________________________________________________________________________ MAP OF BOUGAINVILLE iv Joint Review of Bougainville’s Autonomy Arrangement’s by the Government of Papua New Guinea and the Autonomous Government of Bougainville as at 1 August 2013 Foreword This is a joint review by both governments of Bougainville’s autonomy arrangements as required under the constitutional laws. The review was due in 2010. It was not initiated until 2013. This report, the Review, is the joint report of both governments. It is informed by six separate reports prepared by independent experts appointed by both governments. Their reports are contained in a supplementary volume. The views expressed in those reports are the views and opinions of those experts and they do not necessarily represent the views of either or both governments. Both governments have decided to be forward looking and practical in accepting this joint report. Establishing Bougainville’s autonomy is a new journey for all parties to the Bougainville Peace Agreement. It was to be expected that there would be blockages, stumbles and some disagreements. Nonetheless, considerable progress has been made since the signing of the Peace Agreement. The Review sets us on a joint path to remedy some of the major weaknesses while at the same time preparing
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