Reserve Bank of Australia Annual Report – 1972 Papua New Guinea

Discussions are proceeding between the Papua New Guinea and Australian Governments on a number of matters including economic and financial arrangements to apply in the period up to and immediately beyond self-government. These discussions follow the national elections held throughout Papua New Guinea in February/March 1972.

The Bank is represented on an Inter-Departmental Committee on Banking in Papua New Guinea, set up jointly by the Treasurer and the Minister for External Territories in September 1971, and on which the P.N.G. Administration, the Department of External Territories and the Commonwealth Treasury are also represented. The Committee is to advise on the major elements of a framework for banking in Papua New Guinea which would be appropriate to the needs of the country as it moves towards self-government and independence.

In the meantime, greater administrative authority has been delegated to the Bank's Papua New Guinea operations and the Bank has continued its preparations towards the smooth and timely establishment of a central monetary authority for Papua New Guinea if and when this should be called for. A Papua New Guinean, Henry To Robert, has been appointed manager of the Bank in Port Moresby; a new Quarterly Bulletin of Papua New Guinea Statistics, prepared and printed in the Bank's Port Moresby office, commenced publication during the year; and greater autonomy for the savings and loan society movement was facilitated. Three meetings of the Bank's Advisory Committee on Central Banking in Papua New Guinea were held.

Expansion and diversification of Papua New Guinea's financial sector continued during 1971/72. Lending in Papua New Guinea by the Bank's Rural Credits Department was extended. A summary of financial developments during the year will appear in the Quarterly Bulletin of Papua New Guinea Statistics for the September quarter.

About four-fifths of the 132 staff of the Bank in Papua New Guinea are Papua New Guineans. As part of a policy to localize its staff rapidly, the Bank continued to provide student scholarships, as well as training courses for local staff. During 1971/72, 32 were studying under scholarships at tertiary institutions in Papua New Guinea and Australia. In addition, several Papua New Guineans attended the Bank's staff college in Australia.

During April, Henry To Robert attended the Annual Meeting of the Asian Development Bank in Vienna as a member of the Papua New Guinea delegation. Earlier, the Registrar of Savings and Loan Societies, Mr R.V. Kumaina, attended the World Council of Credit Unions Conference held at Madison, U.S.A. in March.