Islands Business
Home
Fiji Islands Business
Latest News
Features
Gallery
Archives
Subscribe
About Us
Contact Us
Business
Participate
Pacific Update



Union pressures Sevele’s govt

This Pacific islands nation is preparing for a general election, part of it under emergency rule, political meetings are being restricted, some unions are agitating for a strike and the authorities face allegations of human rights abuses, and it is not Fiji.

The similarities between these two South Pacific islands neighbours do not end there. Both are run by unelected governments. The kingdom, however, will argue that Prime Minister Dr Fred Sevele’s government is not unlawful as its mandate lies with the Tongan monarch, Polynesia’s only surviving political dynasty.

Sevele has already angered the kingdom’s pro-democracy movement with the announcement that wide-ranging political reforms suggested in Prince Tuipelehake’s report last year would not be implemented before the 2008 general election. Confirmation of this by the Sevele Government last May angered Tonga’s Public Servants Association (TPSA) and it is threatening industrial action.

“I am quite sure it won’t be ready next year, but these are things we need to discuss, agree on in the House, but that is my personal assessment of the situation,” Dr Sevele told an overseas radio service last month. 

As if that is not worrying enough for a government that last November saw widespread looting and burning of Nuku’alofa by pro-democracy supporters, the association is also demanding the Sevele government rolled over huge wage increases ranging from 60 to 80 percent for government workers.

Refusal by government could force the union to go on strike, similar to the prolonged and devastating strikes that elicited the huge pay rises in the first place.

“That would be the last resort but we don’t want that to happen and that’s why we’ve been asking our Prime Minister for the past two months to meet with us. Our main purpose is to have a healthy dialogue with our employer,” warned Mele ‘Amanaki, TPSA’s general secretary.

Both Sevele and his finance minister Siosiua ‘Utoikamanu have warned the kingdom doesn’t have the reserves nor the capacity to sustain massive wage rises.

“The government’s reserves were used to fund the public service pay settlement last year and the planned privatisation to rebuild the reserves did not occur,” ‘Utoikamanu said in a media statement on April 28.

“We can not borrow domestically to fund a possible deficit because this will crowd out the private sector business recovery efforts, so we have limited options available.”

Emergency rules first imposed after a greater part of the kingdom’s capital was burnt down at the hands of protestors remained eight months after the event. Although applied to only Nuku’alofa now, the emergency rules still ban political meetings unless sanctioned by the authorities.

With Tonga given the go ahead to host the leaders of the Pacific at their annual hobnob on October 16 and 17, critics like Dr Sitiveni Halapua, who was deputy to the late Prince Tuipelehake in their political reform committee, had questioned the need for such restrictive rules.

Like its western neighbour, such laws had justified the involvement of Tongan soldiers in doing police work. And like Fiji, it had prompted allegations of human rights abuses.

A group calling itself the Tongan Community Paralegal Taskforce had documented the alleged brutal tactics of members of Tonga’s Defence Force on men and boys detained after the November riots. Some members of the taskforce had questioned the “silence” of Sevele’s allies of Helen Clark, of New Zealand, and John Howard, of Australia.

“Tonga also needs Australian and New Zealand assistance with regards to violations of human rights,” taskforce member Betty Blake told Trans Tasman newspapers. “They need to help Tongans to make sure the rights of people are not violated or abused.

“I think there is a need for sanctions right now. We need international assistance in terms of protecting our people.”

The allegations come as Dr Sevele secured a US$55 million loan from China to help fund the rebuilding of Nuku’alofa as well as the Magistrate Court’s ruling that five of the people’s representatives in parliament must stand trial for sedition in the Supreme Court.

--Samisoni Pareti


President Kabui admits mistakes

Bougainville’s charismatic leader Joseph Kabui spoke of almost resigning from office over his own admitted blunder in making ministerial appointments.

The Autonomous Government (ABG) president was clearly upset when he confessed he had wrongly made four new appointments of ministers to the Bougainville Executive Council (BEC) to head ministries in the House of Representatives.

The appointments were contradictory to the Bougainville constitution and did not meet the constitutional requirements. He is now asking his ABG legal advisers to draw up a clear set of procedures reflecting the requirements of the constitution on the appointments.


Reform land for more investment
The Solomon Islands government is working on a land reform package in a bid to improve the country’s investment environment. Prime Minister Manasseh Sogavare announced the initiative at the opening of the annual 2007 Taiwan Trade Fair in Honiara. He said the land reform package was aimed at addressing the causes of land disputes—one of the major impediments to investment in Solomon Islands.


Election preparation in full swing

Papua New Guinea’s (PNG) Police Commissioner Gari Baki says security preparation for the elections is in full swing with no major hurdles so far.

According to The National newspaper, the police commissioner with the Electoral Commissioner Andrew Trawen and PNG Defence Force Commander Peter Ilau were in the Highlands region to assess the extent of the poll preparations in the area.

Baki said despite the less-vigorous campaigns experienced in the Highlands, the security forces were not taking any chances and would remain on red alert.


US$2m debt write-off

Niue Government plans to write off nearly US$2 million in long standing debts. Radio New Zealand International reported that bulk of the money is owed by the government-owned Niue Power Corporation for diesel imports and US$400,000 is owed for import duty, student study overseas, phone bills, television licences and rents on government housing.

Finance minister, Fisa Pihigia said the money has been deemed unrecoverable with individuals concerned either having died or moved off the island, mostly to New Zealand. Niue is expected to bring in a new NZ$16 million budget—one that is expected to include cuts to services as the island struggles to balance its books to meet the requirements of its main aid donor, New Zealand.

Under the proposed budget, consumers can expect a rise of 10 cents a unit of electricity to pay for mounting diesel generating costs. Niue’s finance minister said he’s considering dropping a fortnightly benefit to those residents between the ages of 51 and 60. Public servants, who had their wages cut 10 percent earlier this year, would have that restored. Financial commentators on the island say the new budget is one and a half million dollars less than the previous year’s and after massive blowouts this year. Niue which has a resident population of 1,200 is becoming more heavily reliant on New Zealand aid.


PSC institutes changes

Cook Islands’ public service commission says it is instituting changes after a number of critical audit reports were tabled in parliament, according to Radio New Zealand International. The audit reports focused on alleged misuse of funds by employees in several ministries and the teachers training college, and on negligent behaviour at the ports authority. The public service commissioner, Navy Epati, said PSC was implementing changes, but added that more needed to be done.


US missile test base in doubt

Marshall Islands landowners have refused to accept rent offered by Washington,  putting the future of a US missile testing range in the western Pacific in doubt, local officials say. Four years ago US and the Marshall Islands government leaders signed a deal for the US use of the Reagan test site at Kwajalein Atoll until 2086. But the deal relies on traditional landowners agreeing to continue renting the site to the US. Landowners have said they will not accept another 70 years of failing services and other poor conditions at nearby Ebeye island, where most of the local range workers and their families live. The current landuse agreement expires in 2016 but the US wants to stay beyond 2016.


Mori helps troubled states

Less than one month in office, President Emanuel Mori and his administration have stepped in to assist the financially troubled states of Chuuk and Kosrae. Helping or attempting to help the financially troubled states of the federation has become an urgent part of a president’s job even when the states were given primary authority over their own financial affairs. Left unresolved, such problems pose serious implications for the well-being of that state’s own citizens as well as the financial and economic well-being of the federation. According to a statement from the FSM Information Services, respective financial situations of Chuuk and Kosrae are far different in magnitude and urgency. For the current FY2007, Kosrae State has an estimated budgetary shortfall within the range of US$2 million. Chuuk State, on the other hand, has estimated government liabilities of US$41 million. The FSM president’s taskforce staff believes the records indicate a higher debt amount but the state’s financial staff is unable to produce the complete record. Moreover, the states respective government leaderships have different attitude over the president’s effort to help their states.

“The Kosraeans, who have a lesser problem, are determined to solve their problem by themselves. They are willing to make the necessary sacrifices. Before the annual audit could confirm the accurate amount though, the Kosrae state leadership met last month and formulated an adjustment plan which will solve their budgetary shortfall in FY2008. Their adjustment programme among other things includes laying off 98 people from the state payroll; and increasing state sales tax. (The Kosrae Legislature has already passed the sales tax increase legislation).

“In the case of Chuuk, the situation is decidedly worse even as the staff members have not been able to produce the true extent of  the problem! As of June, the state government’s liabilities amount to an estimated US$41 million. An estimated US$11.6 million of this is in short-term obligations, and the remaining US$29.8 million in long-term obligations,” the statement said. The FSM president’s joint taskforce tasked to undertake further work in quantifying the different adjustment measures, aims to present a more clear set of recommended reform programme to the leadership for consideration when it meets on July 17.


ADB helps update master plan

The Asian Development Bank is assisting Palau update its master development plan and strengthen its economic policy formation and budget management. The updated National Master Development Plan is also intended to assist in negotiations for a new Compact of Free Association between the governments of Palau and United States. The current compact is due to expire in 2009 and negotiations between Palau and the US on a replacement agreement are due to start later this year. “There are widespread concerns within Palau about a significant reduction in US funding under the new compact,” said Erquiaga.


Show solid progress, Bainimarama told

Fiji’s military coup leader Commodore Frank Bainimarama would need to show solid progress towards restoring democracy before Australia and the European Union would lift sanctions, Australian and EU ministers said late last month, Reuters reported. Commodore Bainimarama has called for Australia and the EU to restore normal ties after his military-backed government on June 19 gave “in-principle” backing for elections in Fiji by early 2009.

European Commissioner for External Relations Benita Ferrero-Waldner discussed Fiji with Australian Foreign Minister Alexander Downer during talks in Canberra late last month, with both saying it was too early to relax sanctions. “The most important thing is to see whether the commitment will materialise,” Ferrero-Waldner told reporters after talks with Downer. The EU has said that more than F$400 million (US$250 million) worth of aid to Fiji would be either delayed or put at risk because of Bainimarama’s bloodless coup on December 5, 2006. That puts in doubt the EU’s F$274 million (US$171 million) support for Fiji’s sugar industry between 2007 and 2013, to help it cope with lower world prices and modernisation. An ongoing suspension would be devastating for Fiji’s vulnerable economy, which relies almost entirely on tourism and the traditional mainstay, sugar.





Other Stories


Copyright © 2007 Islands Business International | Disclaimer | Site designed and developed by iSite Interactive