80% OF O'NEILL GOVT MPS SET TO LOSE THEIR SEATS IN 2022
Up to 80% of sitting Members of O'Neill Government are expected to lose their seat following 2022 General Elections.
Corruption and mismanagement of the Economy.
The last time our economy nose dived was in 1997 and 1998 under Skate PNC Government, a Government Peter O'Neill was a key adviser to.
In just two years under a PNC led Government Kina plunged in value from being one and a half times stronger than Australian dollar in 1994 to less than 37 cents by end 1999.
Interest rates on Government Treasury bills was as high as 24% which would normally be between 6%-9%.
Lack of confidence in Skate Government also saw investors and private sector rush to send funds out of the country, concerned over the Kina fast losing its value. This caused a serious shortage in foreign currency reserves that went from US$500 million in 1996 to as low as $80 million by middle of 1999.
In 1996 the debt levels were around 36% in less than one year under Skate PNC Government, it jumped to 52% and eventually as high as 80% in the years to follow.
The mismanagement of the economy saw the cost of goods or inflation escalate as high as 20%.
To avoid a complete economic melt down Parliament voted out Skate and voted in Sir Mekere Morauta as Prime Minister.
Morauta Government was forced to make hard decisions to turn the economy around, including selling off key State Assets (PNGBC, Orgen etc) and raising taxes.
These decisions heightened public discontent that resulted in the only 23 of 109 Members wining back their seats.
The moral of the story is O'Neill PNC Government has mismanaged the economy and is essentially broke.
So broke that it was forced to secure a US$500 million (K1.5 Billion) loan to repay its existing loans.
Furthermore, the Kina continues to depreciate and according to the IMF it is actually overvalued by 20%.
Following 2017 General Elections only 45% of the sitting Members won back their seats which means 55% lost. It is important to note this was when O'Neill Government was flush with money to burn, where every Member during the last term received their full K10 million DSIP or PSIP each year over 5 years.
However, in 2017 Members of Parliament only received K2 million in DSIP. In 2018, the year is all but over and as of last week those in Government have only received K7 million, while Opposition Members have only received K5 million of the K10 million owed.
With the economy in a mess, O'Neill Government is broke, cost of living fast increasing, Kina declining in value and taxes increased. The majority of the Members in O'Neill Government can be certain they will most likely lose their seats come 2022 if he is not removed come February 2019.