With the introduction of output based/performance budgeting in 1996, amendment was made to the Public Monies Act 1964 to support this new measure. However the impact of the wider public sector reform program as well as changes to the financial system over the years have demanded a comprehensive review of the current enabling legislation to ensure sound management of public finance. The changing role of Treasury over the last 37 years since independence has not been properly recognised either by law, as it assumed a role which is more in keeping with ensuring sound financial and economic management, than a purely financial management and reporting one.  The government’s commitment to the principles of transparency, accountability, and good governance need to be further strengthened in the law.  As such, the present Public Monies Act was extensively reviewed to give strength to the government’s new role of fiscal responsibility and economic management. The two new bills to support these developments and policy reform are:

•  Public Finance Management Bill

This bill is designed to update the existing public finance laws of the country consistent with Samoa’s present and future requirements while at the same time introducing finance management provisions reflecting modern trends and international best practice.

The current Act principally responsible for the operation and regulation of public finance in Samoa is the Public Moneys Act 1964.  This Act is largely outdated and does not reflect the Government’s public finance management policy initiatives or current practice.  The review of the Act and consequential preparation of this bill is the first significant review the Public Moneys Act has received since its enactment.

This bill then provides the legal framework for the Government’s commitment to ensuring effective, efficient and fiscally responsible public finance management and is thus fundamental to the successful outcome of the reform process.

•  State Owned Enterprises Bill

The bill will provide a strengthened standardised legislative framework required to ensure that all state owned enterprises reach the same high standards in profitability, efficiency, being a good employer, and have regard to the interests of the community.  In addition to their obligations as public bodies under the Public Finance Management Bill, SOEs will have clear commercial accountabilities and extra reporting to enable Government to monitor their performance. 

• Public Service Reforms

 The Government has announced in its SES its intention to review the public service, to focus on the means by which its service to the public could be made more effective as well as efficient.  Since its implementation in 1997, this reform program has seen the completion of corporate plans for all departments with the Commission and a few key agencies now embarking on reviewing the responsiveness of these plans to the core functions of departments, their role in the realisation of the economic vision of government, and the appropriate alignment of organsiational structures to enhance more effective management and strategic focus of their operations.  A number of departments have also been selected under a pilot approach to trial processes and procedures that will be implemented with the devolution of certain functions under the Commission to departmental heads.  This will involve the recruitment and termination of staff, and in this regard, Government will be strengthening measures for accountability and transparency in the exercising of these authorities by departmental heads.  As well, processes will be streamlined and strengthened to safeguard the rights of public servants, including measures to expedite appeals in the system.  In anticipation of these changes, we will be tabling Constitutional amendments to support these major reform initiatives.  Other ongoing developments will include a functional review and legislative review of all departments to ensure consistency in the policy environment in which the new public service will continue to function.

Mr Speaker, Honorable Members,

I am happy to report that the annual accounts for 1998/99 will be tabled in this session. It is also intended to table in the December session of Parliament, the 1999/2000 accounts. These will bring us up to date on these vital reports for public information as to how Government has managed the country’s finances during the period concerned. To ensure there will be no further lapses on this front, Treasury is continuing to upgrade its systems and capacity to meet this obligation of government.

• SUPPLEMENTARY ESTIMATES

The Government will be tabling in this session of Parliament a Supplementary Estimates to clear unathorised expenditures it has approved during the financial year.  

• ELECTORAL REFORM BILL

The Government will also be tabling in this session an Electoral Reform Bill, the intention of which is to strengthen the selection process of candidates, including improvement of voting procedures and overall administration of this vital process. 

Conclusion

Mr Speaker, Honorable members

 Our economy is strong and stable and at the same time our children continue to have access to improved health and education facilities. The supporting infrastructure is in place. Water, electricity and roads, and telecommunications facilities continue to improve.

I have said this budget is framed with focus, confidence and conviction. With the theme of “Sharing the benefits of reforms”, it is a budget that is committed to ensuring that the wider community do share the benefits of all these reforms. This underscores the need for closer cooperation between the whole community and the government in order that the strategies outlined in this document and its statement of economic strategy can be achieved for the benefit of every Samoan citizen. 

Your government has stayed focused on its vision, and given the positive results of the last three years, remains convicted that we have adopted an economic strategy that is working to give us the full confidence to go forward.

At the heart of your government’s policies and strategies has been the welfare of all Samoans and not just a few.  We have said that the government is not in the business of job creation, but the private sector is.  That is why the strategy has focused on creating an enabling environment not just for big business but also for individual enterprise.  However, we will continue to monitor carefully the impact of all these policies and strategies to ensure that the weaker sections of our community are not overlooked nor disadvantaged further. If there are important lessons to be learnt from all this, it is the clear articulation of policies, transparency in processes, opportunities for participation, and a strong framework for accountability. We have lived through some difficult and trying times, but we are convinced that having been tested, we can go on to build a better and stronger Samoa.  I would like to acknowledge in this regard the ready assistance of our partners in development, to support us in achieving our development goals.

Finally, I would like to take this opportunity to express my Government’s appreciation to the country for the support of all of its initiatives and strategies.  We will continue to rely on that support in the period ahead, as we concentrate on refining its policies and processes to ensure that the welfare of all our people have been addressed.

Mr Speaker,

I commend the budget to the House.

May God Bless Samoa and its people.