Several regional observers Letter from Suva spoke to were disgusted at the way the meeting has been organised.


We complain about our leaders of not being on the ball on some issues that affect the population of the region.
Although some of the criticisms are justified, others are just beyond their control.

Look at the quickly convened Small Islands States one-day meeting in Suva early this month (October 5).

Organised by the Pacific Islands Forum Secretariat, the meeting/seminar is to discuss and formulate a set of proposals to be tabled at the Leaders’ meeting scheduled two weeks later. This is on an issue that affects all the islands countries irrespective of their size: the increasing fuel price.

There is no immediate relief in sight. Countries are now being forced to put in place measures to address the desperate situation.

SURCHARGE

In Fiji, the country’s power monopoly has just managed to get a nod to levy a fuel surcharge on its 100,000 plus consumers as it tries to keep its head above financially troubled waters.

It says its monthly fuel bill is mounting and if nothing is done, it could be forced to impose power rationing.

Imagine what implications that would have on the industries.

The story is the same for small islands states like the Northern Marianas, which recently increased power rates by over 100 percent, raising the ire of the consumers in the territory. In the Solomons, it is believed the fuel price hike is “bleeding” the power utility.

IMPORTANT

It is definitely a very important issue for the islands because it accounts for 15-25% of total imports and over 40% of the gross domestic commodity exports.

Petroleum prices over the last 24 months have increased significantly—by over 62%—with the market continuing to display significant volatility, according to the Forum Secretariat.

The ratio of petroleum imports to total exports is very large for most Pacific Islands countries—between 40-80%—and alarmingly so for some countries where the figures are as high as 500%.

This constitutes a dangerous dependency situation, for in case of a major disruption in the fuel supply due to global shortages, rising prices, conflicts or other causes, the consequences would be dramatic.

TIMING

Several regional observers have questioned the timing of the seminar. Why now? Why only the Small Islands States (SIS) invited when the issue affects everyone?

Why has the Forum Secretariat decided to call this meeting now when in fact it should have called several meetings on this issue since the PNG summit where it was discussed and became part of the Forum communique? Why is it being held for only one day when one looks at the complexity of the issues to be discussed? Is the Forum Secretariat trying to railroad the members by giving delegates not ample time to study the options available to them?

LIMITED

Most of those attending this seminar will be government officials who have no idea or very limited knowledge about the issues to be raised here.

Why not also invite the power and energy experts in other member countries to be part of the discussions? They know best what they want and what needs to be done.

In fact there is a power utilities association existing in the region known as the Pacific Power Association, whose members include all power utilities in countries that are members of the Forum. It had applied to be a member of CROP (the Council of Regional Organisations of the Pacific) but was knocked back. Have they been consulted about this issue?

It’s understood a last minute invitation was made to PPA to attend the meeting. Apparently the PPA secretariat is based right here in Suva where the Forum Secretariat is also based?

So what is going on?

CHECKLIST

It appears like the Pacific Islands Forum Secretariat, while going through their Leaders’ summit checklist, realised the issue had not been dealt with. And so they quickly moved to call for a meeting to save their bacon, so to speak.

Several regional observers Letter from Suva spoke to were disgusted at the way the meeting has been organised.

One observer said: “This is the biggest issue in the region right now and deserves a better treatment. Right now it appears like it is an after-thought. This meeting should be nothing more than three days and the Forum Secretariat should be talking to all the countries.”

DRAFT

According to a draft programme which was circulated, the Suva meeting is to present small islands states members with a bulk purchasing framework and agreement.

This would be to:
—enable them to improve their access to petroleum price risk management tools and improve the competitiveness of national enterprises;
—and create a better understanding of the requirements of such a framework and also present practical case studies where similar arrangements are effective.

All this in one day, with arrangements rushed and Pacific Power Association seemingly only invited as an after-thought? No wonder questions continue to be asked about what the Forum Secretariat is up to.