The government will embark on governance reform as part of its public policy responses, Prime Minister Dr. Derek Sikua stated.

The Prime Minister said that the government will start on a series of reforms that are aimed on ensuring greater effectiveness and efficiency in its delivery of services.

Minimization of corruption, waste in public resources and timely reporting on government finances are also parts of the governance reform series.

Dr. Sikua said that the government's revenue expenditure controls systems are critical to ensuring the people have trust in the government.

"... the money will be spent consistent with Parliament's approval," he added.

He said that the Provincial Governments are closer to the people and they must be given adequate capacity to deliver service.

Dr. Sikua said that by 2010, the government will determine an appropriate formula for revenue sharing between the national government and the Provincial government.

He said that the new governance reforms will bring with it added obligations and responsibilities on the Provincial Government.

Prime Minister added that the Rural Constituency Development Fund, in the way that it has been managed to date, has had disproportionate impact on the society, its leadership and on governance.

"We must find better ways in our efforts to channel our resources directly to the constituencies," he added.

He said that each Members of the Parliament has their role in the identification and planning of development in their constituencies.

Dr. Sikua said that the government will establish an Independent Commission against Corruption, where there will also be a National Audit Office that will report directly to the National Parliament.

"They will report directly to the Parliament through a National Audit Standing Committee of the Parliament," said the Prime Minister.

He added that the reforms will strengthen the capacity to effectively fight corruption, stressing that "if we do not take serious steps to finish corruption now, it will overwhelm us".