What Is the Provincial and Local-level Government System?

Decentralisation is written into Papua New Guinea’s constitutional design. National Goal 2 calls for political structures providing for substantial decentralization of all forms of government activity, and Part VIA of the Constitution gives that effect.

Sections 187A and 187B

There shall be a system of Provincial Governments and Local-level Governments for Papua New Guinea in accordance with Part VIA. An Organic Law shall provide for the form and manner of their establishment — the Organic Law on Provincial Governments and Local-level Governments.

Because the system rests on an Organic Law rather than an ordinary Act, changing it requires the double-debate procedure and special majorities in section 14.

Section 187C — what each government must have

“Mainly elective” and “directly or indirectly” are deliberate. A Provincial Assembly may include indirectly elected and nominated members — and an Organic Law must set the minimum number of members and the maximum number of nominated members for Provincial Assemblies and Local-level Governments (s 187C(3)).

Under the Organic Law, the member of the National Parliament for a provincial electorate is the Governor and head of the provincial executive — which is why section 101’s distinction between open and provincial electorates matters.

Section 187C(4) — grants and taxation

An Organic Law shall make provision for and in respect of:

• (a) grants by the National Government to Provincial and Local-level Governments; and
• (b) the imposition, collection and distribution of taxation by them,

and may make other financial provision to an extent reasonably adequate for the performance of their functions.

Section 187C(4A) allows an Organic Law providing for provincial and local-level sales and service tax to give the National Government concurrent power to impose, collect and distribute it. Section 187C(4B) validates, in accordance with Schedule 6, certain Acts passed between 19 July 1995 and the certification of Constitutional Amendment No 27 — Sales and Services Tax.

Section 187C(5) and (6) — devolution

An Organic Law shall provide for the devolution and delegation to each Provincial Government and Local-level Government of substantial powers of decision-making and substantial administrative powers in respect of matters of direct concern to the province and to the local-level government area — and shall provide for their legislative powers.

Section 187C(8) — elections

Elections to a Local-level Government shall be conducted, in accordance with an Organic Law, by the Electoral Commission — the same independent body that conducts national elections. See the Organic Law on National and Local-level Government Elections.

Section 187G — gradations

Nothing in any law is inconsistent with Part VIA so far as it provides for full status, powers or functions to be acquired in stages, provides for a gradation of Provincial and Local-level Governments, or provides for Interim Provincial Governments. Capacity varies enormously across the country, and the Constitution accommodates that.

Section 187H — the National Economic and Fiscal Commission

An Organic Law shall provide for a National Economic and Fiscal Commission, which shall:

• (a) assess and monitor the economic and fiscal policies of the National, Provincial and Local-level Governments;
• (b) advise and recommend appropriate policies to the National Executive Council; and
• (c) make recommendations to the NEC and to the National Parliament on financial arrangements and the allocation of grants — by the National Government to Provincial and Local-level Governments, and between them.

Provinces have constitutional standing

Under section 19(3), a Provincial Assembly, a Local-level Government, a provincial executive, and a body established specifically to settle disputes between levels of government may all make a special reference to the Supreme Court. Provinces have used it: see In re Reference by East Sepik Provincial Executive [2011] PGSC 41; SC1154 and SC Reference by the Western Highlands Provincial Executive [1995] PGSC 6; SC486.