Opposition thanks Govt for paper note extension

Deputy Opposition Leader Sam Basil.

By MATTHEW VARI

Sunday,September 11, 2016 (Sunday Chronicle, PNG)

IN a rare show of appreciation- Deputy Opposition Leader and Member for Bulolo has thanked the Bank of Papua New Guinea and Prime Minister Peter O’Neill for quick response to the dilemma of paper currency notes that are still to be brought into the central bank from the rural populace.

Mr Basil raised the issue in parliament in last month and asked the PM to intervene through the Central Bank for an extention.

“For once I would like to commend the Governor of the Central Bank telling the truth and listening to the political cries of the floor of parliament,” Mr Basil said.

“For once we would like to thank the Prime Minister for listening. I was confronted when parliament was sitting from a person from my district who had bundles of K20 notes telling me if I could change for an old woman in the village.”

“Her son engaged in alluvial mining and they sold gold and they got paid by paper notes. Because there is no banking system in the rural areas, local people tend to save their money and put in under their pillow, suitcases or in parts of their houses.”

He said due to lack of communication on the part of the reach of National Broadcasting Commission’s short wave radio and medium wave band for rural communication- paper notes are still being used by rural Papua New Guineans.

“Since the connection between the urban and rural areas has been cut off, so when the Central Bank issued its timeline to return paper notes between 2013 and 2014 for every citizen to return those paper notes back to the banking system to be circulated, nobody got most of the message in most of the rural areas because of the cut off in communication.”

“We raised it on the floor of parliament to the Prime Minister to ask him to allow the changeable notes to change from paper to polymer.”

“The prime minister gave his word on the floor of parliament and governor has published the notice for all paper notes to be returned back giving the deadline 31st of December this year.”

Basil added that the onus was now on all MPs and those working and living in urban areas to communicating with their rural communities to bring in the paper currency back into the banking system to be refunded- or face the consequence of losing them.

“I thank the governor of Central Bank, for the good move that is good for the rural people.”