Speech by Acting Governor Ms Elizabeth Genia, Governor on 50th ANNIVERSARY CELEBRATION AND OFFICIAL LAUNCH OF BPNG VISION 2050

50^th ANNIVERSARY CELEBRATION AND OFFICIAL LAUNCH OF BPNG VISION 2050

Ms Elizabeth Genia, Governor (acting)

4 November 2023 – APEC Haus

Garu eboebo om, pogi namana, hanua boi namona, gutpela evening;

Chief Secretary Ivan Pomaleu, Board members Mr James Gore, Deputy Governor Central Bank of Solomon Islands, Mr Reynold Moveni, Mr. Malcolm Mcdowell, CEO Note Printing Australia (NPA), Mr. Leigh Gordon CEO Royal Australian Mint (RAM), immediate past permanent Governor Mr Loi Bakani, if you are here, I want to acknowledge your presence, Sir Yano Belo , tenku tru long come na joining mipela – by the way , Sir Yano was with Sir Julius as an MP when they named our currency as Kina and Toea, Distinguished Guests, (IMF, World Bank, CEOs), management, staff, former bank staff, invited guests, ladies & gentlemen.

Let me first, I recognise the traditional owners of the land on which we stand, the Motuan and Koitabuan people, and pay respects to elders, past, present and emerging.

Tonight we gather to celebrate an event that has deep significance for us all.  The 50^thAnniversary, when the selfless men and women who came before us, took a firm hold of the helm of the centre of our financial systems, and a tight grip of the rudder, as our young nation and, our Central Bank, began to help navigate a path towards independence, in November 1973.

We acknowledge the enormous contributions of all our leaders, those past and present. I will mention, in particular, Sir Henry ToRobert, the first Governor and Sir Julius Chan, the Minister for Finance at the time of the Bank’s establishment – and also Sir Mekere Morauta, who was the first Secretary for Treasury & Finance on Independence and second Governor of the bank, who went on to become Prime Minister of our great nation, and introduced so many important reforms to the financial system, that still stand today.

Just to quickly mention here also, more recently introduced legislation with FASU, playing a very important part in our financial system, in ensuring adherence to the Anti Money Laundering and Counter Terrorism Financing Act (2015).

We acknowledge, with sincere gratitude, the work of the late Sir Wilson undertook, with Professor Stephen Howes and Sir Robert Igara – and the Independent Advisor Group (IAG) recommendations that led to the amendments to the Central Banking Act in 2021, with further amendments to the Act expected later this year.

Those first set of amendments to the Central Bank in 2021, rendered the Office of Governor vacant, and Mr Benny Popoitai replaced Loi, serving in an Acting capacity for 12 months, as have I since January of this year.

Please allow me at this time, to acknowledge someone in particular when I got on board this Lakatoi as part of its crew in 1983. Mr. Silan Nadarajah, was the Manager Internal Audits, when I joined the bank as an audit officer. He mentored, coached and guided me in my early years with the Bank.  Mr Nadarajah, worked with our founding Governor Sir Henry, Sir Mekere and Sir Wilson – I still seek his counsel today. Thank you Silan for accepting our invitation to attend this 50^th anniversary celebration with us today.

Most of you attended the official launch of the 50^th Anniversary year on Wednesday. You shared the colour, sound and movement of the exciting spectacle.

You heard the story of the Bank’s beginning in 1973 and how, over the past half century we have become the centre of the PNG financial system.

You shared the passion of the guest speakers. And witnessed the high regard in which BPNG is held, and the confidence our present-day leaders have in us.

And that includes our Prime Minister, James Marape MP, who challenges us to create the economic environment and robust financial system that will see the PNG economy double to PGK 200 billion within the next 10 years and PGK500 billion within the next 50 years.

Prime Minister Marape also quoted from a speech Sir Julius Chan had made exactly 50 years ago, at the dinner celebrating the establishment of the Bank of Papua New Guinea.

In Sir Julius’s words: “… the Bank of Papua New Guinea must establish itself in the eyes of the financial community as an institution which gives direction and leadership and one which, in cooperation with banks and financial institutions, gives effect to policies which will promote national objectives.”

I want to pause, and emphasise that point “promoting national objectives” for a moment.

The same speech Sir Julius gave at that historic dinner also featured in my words on Wednesday. I would like again, quote a few of those words tonight…

“The Bank is, and must continue to be an expert institution. It must not, however, become an elite institution, removed from, and out of touch with, the needs and aspirations of the people it is ultimately set up to serve.”

Sir Julius went on to say “….it has responsibility for directing and controlling the financial system. The Bank must therefore first establish its own direction, and its own goals, and it can only do this well if it is tuned into the needs and wishes of its people.” 

And “…the Bank needs vision, and a sense of purpose, as well as technical ability.”  I want to pause, here again, for a moment.

Sir Henry ToRobert, our Founding Governor, who served for 20 years, took these words very seriously.

As I said on Wednesday, the discipline Sir Henry instilled into the culture of the Bank, right from the start, his strong belief and confidence in the Management and Staff, as well as his dedication and commitment to the Central Bank, set the Bank’s sails true, to successfully navigate the tides of change in the country.

Sir Henry ran a very tidy ship. He established a workplace where real effort was valued, where hard work was acknowledged, and where life-long learning and continuous skills development went hand-in-hand with mentoring and supporting others to reach their potential.

Sir Mekere Morauta succeeded Sir Henry in 1993. He was a reformist and a strong advocate for good governance and independence of government institutions. He eventually became Prime Minister of Papua New Guinea in 1999. As Prime Minister, He was responsible for amending the Central Banking Act in 2000 which gave the bank greater independence, and reforming the superannuation industry with the introduction of the Superannuation Act 2000. Late Sir Wilson Kamit and Loi Bakani continued to steer and steady the Lakatoi.

Those of us who served under their leadership, and in particular, under the governorship of Sir Henry, and I can see quite a few of you in this room, will agree that the experience (under him) stood us in good stead for the challenges to come.

Tonight, I pay tribute to our past governors, to our board, to our management and to our staff for laying the foundation and building the Bank up to where it is today, at the centre of PNG’s financial system.

It is incumbent on those of us in leadership and management positions today, to identify and groom the next generation of managers and leaders in the bank for tomorrow. I firmly believe in the notion, “a leader or a manager is only as good as those around him or her.”

While tonight’s gala event is a celebration of the outstanding achievements of the Bank over the past 50 years, it is also a time to look forward and continue the journey.

So now to the future.

In May this year, the Board and I joined with management to set out the Bank’s vision for 2050.

We started by talking to our government partners, regional business associations, commercial banks and financial institutions, and international funding organisations. Those conversations gave us a range of insights and perspectives.

We then cast our minds forward to the year 2050, to rethink where the world will be, and what the people of PNG would need from a Central Bank in a changing, fast paced world.

We thought deeply about the needs of our country, and imagined what we could achieve to support economic development and how we would enable sustainable growth.

We talked about the barriers Papua New Guineans face accessing and benefiting from the financial system and what role the Bank plays in this.

We considered our role as the custodian of the financial system.

We asked the critical question, “how can price stability and the development of the financial system improve the lives of all Papua New Guineans?”.

The result of all this information-gathering and deep thinking is the BPNG Vision 2050.

I am extremely proud of everything that went into to creating this document, and I am delighted to share its official launch with you all, on this special evening.

There is no better time to talk about the Bank’s first long term strategy than on the anniversary of the Bank’s birth, and to share the vision of “economic opportunities for all Papua New Guineans”.

BPNG Vision 2050 reminds us, very clearly, who we are and why we exist.

Quite simply, we are the custodians of the monetary and financial system in Papua New Guinea, and we are, very importantly, the banker to the Government.

Our focus is to develop, maintain and promote a sound and efficient monetary, and financial system, that enables economic growth and employment.

We exist to moderate the impacts of economic volatility. And foster conditions that improve the lives of all Papua New Guineans.

In all these roles and responsibilities that describe the BPNG of the future, we hear Sir Julius Chan’s words from 50 years ago, resonating loud and clear.

And we think about the innate strength we have within ourselves, and within the Bank, thanks to the capacity building focus that has been part and parcel of the institution, since Sir Henry was in charge.

BPNG Vision 2050, sets out our strategic aspiration for the future: the right policy settings for – “Economic opportunities for all Papua New Guineans.”

Let’s unpack the meaning of that key statement.

To create the conditions that will give the people of PNG, access to economic opportunities, our nation must have price stability and an effective financial system. If they do have access to those economic opportunities, the economic wellbeing of Papua New Guineans will improve.

If they have access to those economic opportunities, the economic wellbeing of Papua New Guineans is assured.

It’s our job to assist with the policy settings to encourage favourable conditions, that will create economic opportunities – we must constantly be looking at those clouds, or that sunrise, on the horizon.

Through the actions we take to ensure price stability, and an effective financial system, the Bank of Papua New Guinea will contribute to the social, and economic transformation of PNG.

Importantly, the BPNG Vision 2050, is aligned with the National PNG Vision 2050 – a point that Prime Minister Marape acknowledged in his speech on Wednesday.

In our role as the central bank, we contribute directly to the second pillar of the National Vision, which relates to economic growth and wealth creation, with the objective of “enabling a dynamic and competitive economy”.

We are about to embark on a challenging, long-distance voyage. Our destination is BPNG Vision 2050. A successful voyage will mean economic opportunities for all Papua New Guineans.

The voyage will not be straight-forward. We don’t have detailed maps for reaching our destination. We will have to navigate uncharted waters.

And no, it won’t be like being on a customer tailored, tourist cruise!!

We will be challenged like never before, and we have to carefully build the right vessel, for this very specific purpose, just as the Lakatoi was purpose-built, for those long ocean voyages.

Show slide of the Lakatoi

To reach our destination, our BPNG Lakatoi will need supplies, resources and favourable conditions.

Navigational expertise will be essential – this is the role performed by the Chair and the Board.

The captain and senior officers, represented by the Governor, and the Management, must articulate our vision, and always lead by example.

The crew, represented by our staff, will need to be work closely together, to demonstrate exceptional expertise, and exhibit unwavering commitment.

All must share in the vision, a sense of purpose, and commitment to an enduring set of values, and beliefs.

Just as if we were, in reality, heading on an ocean voyage on a Lakatoi, our vision for 2050 is ambitious and will present significant challenges, in our complex and dynamic operating environment.

We will encounter stormy seas, navigate difficult waters, and will have to alter our course to adapt to changing conditions, to get to our destination.

We will need to change our mindsets to shift our perspective, embrace change and refine our approach.

We must not in any way, limit ourselves. We must not do things, just because it is the way things have always been done, and nothing, must ever get in the way of good policy.

Now we hear the echo of the prophetic words from Sir Julius, navigator of the BPNG Lakatoi, “the Bank needs vision, and a sense of purpose, as well as technical ability”.

We have the technical ability, thanks to the strong focus the Bank has had on capacity building – throughout our history, and right back to the time of Sir Henry.

And now, with the BPNG Vision 2050 document ready for distribution, we have our Vision for the future, and a clear sense of purpose.

I am grateful we have young team of knowledgeable and talented technical experts who staff the bank, supported by the experienced advisors and the board. Together we will work hard to ensure the Bank stays relevant and pragmatic, is able to adapt to changes in the global environment, maintains its edge and delivers on its mandates to all its stakeholders, including the citizens and government of PNG.

As an organisation, we also want to focus on inclusion and diversity as well as gender equity.

Our Prime Minister challenged the bank on Wednesday to help grow the economy to K200 billion within the next 10 years and 500 billion within the next 50 years. Through the strategic direction the bank has embarked on and in line with Our Vision for 2050, I am confident that the Bank will develop into a trusted and modern Central Bank by 2050, helping to oversee the social and economic transformation of the country and creating the environment needed for economic opportunities for all Papua New Guineans.

As we embark on this momentous voyage, we need to make sure we have our course set clearly. From half a century ago, the words still ring true.

We have “responsibility for directing and controlling the financial system. The Bank must therefore first establish its own direction, and its own goals, and it can only do this well if it is tuned into the needs and wishes of its people.” 

And now we are ready, willing and able, to set out on that path to our destination, and to our destiny.

I am immensely proud, delivering these few words to you this evening – and I am immensely proud of the Bank, on reaching this milestone.

I look around, and I see people who have been with the Bank for 10, 20, 30, 40+ years.

No-one knows the level of service, and the dedication, with which you have served.  Those late-night meetings, selflessly averting some very serious issues.

We won’t get that time back but I want you to know, that you have given to the Bank more, than can ever be repaid.

We all of us serve, and we all serve together.

Ladies and Gentlemen, let us all join together, in celebrating the Gala Anniversary Ball, for the Golden Jubilee, the 50^th anniversary of the Bank of Papua New Guinea.

Happy anniversary.

I thank you all.