Sunday 13 March 2016

Who looks after the markets?

By  Busa Jeremiah Wenogo

In PNG the function of establishing and looking after physical markets is said to be the sole responsibility of the sub-national government .i.e. provincial, Local Level Government (LLG) and urban authorities. Yet the Organic Law on the Provincial & Local Level Government does not spell out explicitly that this is the case. Although the law particularly in section 42 and 44 covers elements of the informal economy (sector) such as “mobile trading”, “cottage industries”, “agriculture”, “fisheries”, “betelnuts and any other marketable items”[1], there is nothing specific on whether the powers given to provincial and LLGs under the law cover aspects relating to the function of building and maintaining market facilities. Yet at the national level according to the Department of Provincial & Local Government’s manual on Determination assigning service delivery functions and responsibilities to provincial and local level governments, the Department of Community Development & Religion through its Community Economics Section, is responsible for “declaring market areas” and “arranging gazettal of informal sector inspectors” at the LLG level[2]. Unfortunately in reality that has not been the case in most LLGs. At the sub-national level only the NCDC Act 2001 as per section 41 sub-section 2(m)[3]clearly states that the commission has responsibilities over markets within NCDC.However, this is also problematic given that not all major markets within Port Moresby fall under the auspicious of NCDC. Markets like the Manu-Autoport market in front of the former TST supermarket was established by the TST Company back in the 1980s[4].

Furthermore, being deprived of the powers to issue land titles most provincial governments (including NCDC), urban authorities and LLGs can only plan their towns and rural areas but cannot easily allocate space for building markets on state land[5]. The current centralization process of land tenure system in PNG is very tedious and time consuming. In the current legal environment, land that were planned for building markets could easily be allocated for other developments at the prerogative of the National Department of Lands & Physical Planning. This is made worse by the rampant corruption within the national department of lands and physical planning where state land is acquired by individuals and firms under dubious circumstances[6]. The lack of priority put on markets by various tiers of government means that most of the land is allocated for other developments other than market. From this reality one can deduce that a lot of the markets that are set-up in provinces and LLGs are either built on customary land operating under some sort of social contract between the State and landowners or illegally set-up on private or state land. In a city like Port Moresby where the State is fast running out of land competition is intense in securing the scarce undeveloped state land for development purposes. As a result markets  are increasing being pushed out to the peripheries of towns and cities away from its strategic node areas where there is ample concentration of demand.
The announcement early last year by the Lands Minister that provincial lands boards will be set-up in all provinces throughout PNG is key to ensuring that provinces develop their own plans and coordinate developments[7]. Certainly Provincial city and town Masterplans that are critical to guiding the work of the provincial lands board should make market a priority in every district and ward throughout the country. Market aside from road, airstrip and bridge is the most fundamental public infrastructure that should be present to empower the local community in the rural and urban areas to engage in commercial oriented activities. Such an arrangement mooted by the Minister will greatly assist provincial government, urban and town authorities to tie-in their planning process with land, the most important resource or asset. The Minister should further complement this move with other reforms in the area of customary land with the view to strengthen“collective ownership “and ensuring “shared benefit” among landowners. Furthermore, laws in relation to towns and cities particularly its definition, management and planning should be reviewed for the sole purpose of protecting and nurturing their growth. This exercise should at the very least include market as one of the important minimum standards when planning towns and cities.Perhaps from the outset the government should make use of the opportunity provided in the review of the Informal Sector Development & Control Act 2004 to spell out clearly whose role it is when it comes to building and managing market facilities. Although the CLRC draft report on the review of the Informal Sector Development Control Act 2004 has already identified this need. The review report could initiate the process by creating/inserting a provision in the revised law to spell out clearly that the administering authorities of the law in the likes of NCDC, provincial governments, urban and town authorities and LLGs be responsible for the management and upkeep of the market facilities. Going beyond that it could also propose for a national government department to take carriage of looking after market facilities in PNG or create a separate entity empowered with its own powers to build, maintain and manage market facilities throughout the country.

Last Published: Weekender: The National Newspaper: Friday, February 26, 2016, pg 55



[1]Organic law on Provincial Governments & Local level Governments (1998); pg 24 & 26; http://www.ago.gov.pg/images/downloads/Organic%20Law%20on%20Provincial%20Governments%20and%20Local-level%20Governments.pdf,
[2]Department of Provincial & Local Government Affairs (2009); The Determination assigning service delivery functions and responsibilities to provincial and local level government; pg 8
[3]National Capital District Commission Act 2001, pg 25; http://www.paclii.org/pg/legis/consol_act/ncdca2001367.rtf.
[5]National Research Institute; “Fairfax Harbour – An iconic harbor of significance” (2014); http://www.nri.org.pg/index.php/22-news/179-fairfax-harbour-an-iconic-harbour-of-significanc?showall=1&limitstart=
[6]
[7]Department of Lands & Physical Planning; Land Tok (2015); pg 10; http://lands.gov.pg/News/LandTok/LandTok_012015.pdf
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