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$1m for transport costs
Tsunami scare
New chair appointed to tourism
New group triggers Sunday flights referendum
Tsunami txt msg
New group triggers Sunday flights referendum
Tsunami txt msg
Price of passion
Challenge to title
Union Jack mistake unnoticed by most
Tini review continues
ON THE STREET
TCI challenged over unprofitable services
‘Call mum and dad’
Govt proposes tax changes
Cop, recruit plead guilty to fighting
$1 million prop-up plan for Toa
Govt proposes tax changes
Cop, recruit plead guilty to fighting
$1 million prop-up plan for Toa
Task force reveals initiatives
Shipping licence for PDL
VAT increase unbelievable – MPs
$38,000 collected for tsunami

$1m for transport costs

The cost of transporting people from up north to Rarotonga for Te Maeva Nui and Pacific Mini Games is expected to balloon to around $1 million.

Only $250,000 was appropriated in the 2009-10 budget for this year’s Te Maeva Nui. In the past most of this money is spent on getting people to and from Rarotonga.

With the Tahiti Nui ferry unavailable to take Northern group islanders back home, Tauranga Vananga secretary Sonny Williams says they decided to fly them back by Air Rarotonga, starting last weekend.

Williams says that the flights will cost around $400,000.

According to figures provided to Cook Islands News, 61 people were picked up by the ferry last month from Penrhyn, 50 from Rakahanga, 73 from Manihiki and 20 got on from Pukapuka-Nassau – a total of 204 passengers. The ferry’s maximum passenger capacity is 198.

Originally only 49 people were to get onto the boat at each island. But by the time it reached Pukapuka-Nassau, those in the tere party refused to board as the island could not take its full complement.

The Cooks negotiated a $400,000 deal with French Polynesian officials for last month’s charter – $200,000 which was owing from last year’s charter plus the same amount for 2009.

The ministry then paid an extra $100,000 to pay for five flights to bring 52 people down from Pukapuka.

Williams says that Pukapukans will be the last to return home some time next week, as aviation fuel has just been taken up there by Maungaroa II which left Rarotonga last weekend.

Williams adds that cargo will be taken back up north by one of Tapi Shipping’s boats.

Tsunami scare

Second real test of emergency response system works ‘better’

The Cook Islands was told to prepare to evacuate after a tsunami warning was issued yesterday.

The Pacific Tsunami Warning Centre (PTWC) placed the Cook Islands and other Pacific nations on watch and then warning after a 7.8 earthquake struck around 12.03pm. About 15 minutes later a second quake with a magnitude of 7.1 hit.

Both had a focal depth of 33 kilometres and struck around 373 kilometres north-northwest of Santo, Vanuatu.

No injuries were reported yesterday.

Lessons seemed to have been learnt from our previous tsunami threat two weeks ago with authorities taking greater control of the situation.

Disaster management controller and police commissioner Maara Tetava said he received the Pacific Tsunami Warning Centre bulletin and phone call from the Meteorological Services around 12.20pm. A meeting was then held at the police headquarters between Tetava, Met Service director Arona Ngari and Emergency Management Cook Islands (EMCI) director Charles Carlson. “The red light was up for me, with the quake originally measured 8 on the Richter scale – that immediately raises the emergency for us.

“The situation was discussed and a plan of action that the prime minister be informed and then the media,” Tetava said. Normal police operations were also cancelled with Te Kukupa on standby.

The emergency management meeting was held at 12.38pm and Tetava was speaking on Radio Cook Islands at 1.03pm. During this time, officers were contacting all outer islands.

On air the commissioner said he was activating the police emergency operation centre and listed phones numbers for the public to call. He stated that the country was placed on watch by the PTWC and they would be updating as bulletins arrive.

“At this time we are telling the community to prepare yourself in case there is a requirement to evacuate to higher ground later on today,” Tetava said.

Ngari then repeated the message in Cook Islands Maori with the announcements also made on Matariki FM and 88FM.

Carlson had sent out the specific media briefs and was ringing contacts in Vanuatu to find out if any damage was reported or whether a tsunami had been generated. The PTWC stated the quakes caused a tiny tsunami of 4 centimetres.

Around 1.50pm, Tetava issued another statement on air saying we had reached the warning level.

Again he repeated the emergency numbers and told people to prepare to head for higher ground. The national emergency centre was opened and operating at the Telecom Building in Parekura.

Tetava said at no time did he instruct the community to evacuate on air.

“We just wanted to hold, we didn’t want to make that decision as the immediate danger to the Cook Islands was not imminent.”

The bulletins predicted a tsunami, if generated, would hit Pukapuka at 4.16pm, Penrhyn    at 5.23pm and Rarotonga at 5.25pm.

The warnings were cancelled around 2.18pm.

Tetava said they handled the situation better than what they did two weeks ago.

“There were still some hiccups like the technical issues of switching phones to the emergency contact numbers, but that was sorted out,” he said. “Other improvements we did make was contacting the media earlier and issuing media releases which is now part of police standard procedure.

Over 100 phone calls were received by police during the two hours on alert with members of the community also doing their bit to inform others of a possible tsunami. People heard sirens blaring in Matavera, a woman was seen going from house to house beeping her horn in Tupapa and shops wrote warnings on their road signs.

A series of nine smaller earthquakes hit near Vanuatu after the original quake around 12pm. It is reported that streets were blocked in Samoa as people headed to high ground after the warnings were issued.

The prime minister, the Met Service, Tetava, EMCI and the Red Cross were holding a debrief session yesterday afternoon. The commissioner said despite the cancellation, they would still leave the emergency lines open and would continue monitoring the situation until 7 o’clock last night.

New chair appointed to tourism

Government has appointed local businessman Tata Crocombe (above) to chair the CI Tourism board.

Tourism minister Robert Wigmore says after consultation with stakeholders in the industry, he appointed Crocombe to the position last Friday.

Crocombe, managing director of the Rarotongan Resort and Spa, is also heading government’s new economic development committee.

Wigmore says Crocombe was selected because he has hands on experience in the industry.

Crocombe replaces former chairman Des Eggelton who chaired the board from May 2008 until earlier this year when he reportedly resigned. Local JP John Kenning had been acting chairman of the board until now.

New group triggers Sunday flights referendum

Prime minister Jim Marurai believes the Democratic Party caused the fracture of the party that has seen some Aitutaki members break away to form their own political organisation, Te Kura O Te Au.

“I suppose the Demos caused the split,” admits the PM.

Marurai says the Aitutaki Sunday flight protest has led to staunch Demos from the island deciding they no longer wish to support the party currently in government.

Perhaps coincidentally, Marurai has just been charged by cabinet to set up the long-promised referendum on the flights for Aitutaki.

The referendum was to take place after December 2007, six months after the ‘trial’ Air Rarotonga flights to Aitutaki on Sundays began.

Marurai says about three weeks ago, deputy prime minister Sir Terepai Maoate asked cabinet to approve the holding of the referendum as soon as possible.

Now Marurai is in charge of setting up the referendum and has been making inquiries with election officials on logistics and costs.

“It will be fairer to them to have a referendum,” he says.

Marurai says Sir Terepai made no mention of the new political party in his submission to cabinet, but speculates it could be one of the reasons the referendum is now back on the table.

Peaceful protest against the flights began in 2007 and last March, then cabinet minister Wilkie Rasmussen visited the island in an attempt to calm the wave of anger towards government from what it considered a minority group.

At those meetings Rasmussen asked the Demo party members to stay with the party and promised government would attempt to address the Sunday flight issue.

Now one of the protestors, former island secretary Taraota Tom, is leading the ‘People’s Movement’ which is made up of some disgruntled Democratic party members in Aitutaki.

Marurai says he hopes the referendum will take place within the next few months but is unsure what the Demo Party can do to win back those who are crossing over to join Te Kura O Te Au.

Beyond party politics, page 8.

Tsunami txt msg

Telecom Cook Islands considers the text and email tsunami alerts from the Pacific Tsunami Warning Centre to be a great example of how useful mobile phones in particular can be used in the protection of the public and personal safety.

TCI advises to reduce the risk of multiple texts clogging the local GSM system, customers should choose the correct format when subscribing to the text alerts.

In the menu section on the online registration, four choices are given and subscribers should select the Pager/Cell Phone option to receive the text alert. Choosing the HTML or regular email format will likely clog the GSM system as multiple SMS messages will be sent to the subscriber’s phone.

TCI reminds its customers that the GSM network can send only 160 characters via SMS messages.

Telecom says it could send text message tsunami alerts directly to all mobile customers but this would clog the system and could be considered spamming.

Not everyone wants or needs the texts and not all phones are active says TCI.

However, TCI is in the pro-cess of setting up a registration for the alerts on its website where people can register to receive SMS messages (or texts) and emails.

At present Telecom has an email distribution list which is used strictly to alert customers to outages and matters affecting their services.

Telecom is also warning customers to send only text inside messages within emails to mobile phones because things like signatures and logos sent with them result in problems like clogging of the system.

New group triggers Sunday flights referendum

Prime minister Jim Marurai believes the Democratic Party caused the fracture of the party that has seen some Aitutaki members break away to form their own political organisation, Te Kura O Te Au.

“I suppose the Demos caused the split,” admits the PM.

Marurai says the Aitutaki Sunday flight protest has led to staunch Demos from the island deciding they no longer wish to support the party currently in government.

Perhaps coincidentally, Marurai has just been charged by cabinet to set up the long-promised referendum on the flights for Aitutaki.

The referendum was to take place after December 2007, six months after the ‘trial’ Air Rarotonga flights to Aitutaki on Sundays began.

Marurai says about three weeks ago, deputy prime minister Sir Terepai Maoate asked cabinet to approve the holding of the referendum as soon as possible.

Now Marurai is in charge of setting up the referendum and has been making inquiries with election officials on logistics and costs.

“It will be fairer to them to have a referendum,” he says.

Marurai says Sir Terepai made no mention of the new political party in his submission to cabinet, but speculates it could be one of the reasons the referendum is now back on the table.

Peaceful protest against the flights began in 2007 and last March, then cabinet minister Wilkie Rasmussen visited the island in an attempt to calm the wave of anger towards government from what it considered a minority group.

At those meetings Rasmussen asked the Demo party members to stay with the party and promised government would attempt to address the Sunday flight issue.

Now one of the protestors, former island secretary Taraota Tom, is leading the ‘People’s Movement’ which is made up of some disgruntled Democratic party members in Aitutaki.

Marurai says he hopes the referendum will take place within the next few months but is unsure what the Demo Party can do to win back those who are crossing over to join Te Kura O Te Au.

Beyond party politics, page 8.

Tsunami txt msg

Telecom Cook Islands considers the text and email tsunami alerts from the Pacific Tsunami Warning Centre to be a great example of how useful mobile phones in particular can be used in the protection of the public and personal safety.

TCI advises to reduce the risk of multiple texts clogging the local GSM system, customers should choose the correct format when subscribing to the text alerts.

In the menu section on the online registration, four choices are given and subscribers should select the Pager/Cell Phone option to receive the text alert. Choosing the HTML or regular email format will likely clog the GSM system as multiple SMS messages will be sent to the subscriber’s phone.

TCI reminds its customers that the GSM network can send only 160 characters via SMS messages.

Telecom says it could send text message tsunami alerts directly to all mobile customers but this would clog the system and could be considered spamming.

Not everyone wants or needs the texts and not all phones are active says TCI.

However, TCI is in the pro-cess of setting up a registration for the alerts on its website where people can register to receive SMS messages (or texts) and emails.

At present Telecom has an email distribution list which is used strictly to alert customers to outages and matters affecting their services.

Telecom is also warning customers to send only text inside messages within emails to mobile phones because things like signatures and logos sent with them result in problems like clogging of the system.

Price of passion

Puppies Oscar and Tony enjoy some swim time with Michelle. 09100611

Would you pay $1400 to spend seven nights in a shared dorm, take part in a five-day work week starting early in the morning and running into the night doing tasks like cleaning dog and cat kennels, and caring for sick and orphaned animals?

To many it is incomprehensible, but to Kiwi animal lover Michelle Smith from New Lynn, Auckland, it was a rare opportunity to do something she’s always dreamed of.

Smith successfully bid on an auction package ‘The Esther Honey Experience’ in 2008.

“This was an opportunity for the right person to delve into the heart of our foundation,” says EHF’s Karen Galvan.

“To some people, the experience of volunteer work for a charity like EHF and being involved in hands on care of sick animals is a dream come true.

“Obviously working at a clinic on a tropical island is a bonus and as with all EHF volunteers, Michelle is a true animal welfare champion because she is prepared to put her money where her mouth is, lending her precious holiday time and donating her hard earned dollar to help Cook Islands animals.”

The foundation was named one of the top 100 volunteer experiences in the world in 2008.

Attracting volunteers from around the globe not only enhances volunteer experience, it also expands the knowledge base and quality of veterinary service to the Cook Islands.

Smith commented from Auckland saying, “I had a great time with you all and love Rarotonga. You do an awesome job at EHF with limited resources, .”

Says Galvan: “We say thanks to Michelle for sharing our passion.”

Challenge to title

A holder of the Porotito Rangatira title will challenge the right of another claimant to the title.

Daniel Rongo Daniel contacted Cook Islands News yesterday after reading of Fanau Hunt’s bid to confirm the title on her in the high court next week.

Daniel says he was invested with the title on April 15, 1986 – the year that the previous holder, his father, Rongo Daniel Ngongi, passed away.

Daniel says his father held the title from 1972 to 1986, and that his grandmother – Ngongi’s mother – held Porotito from 1956 until her death in 1972.

While he was overseas in the 1980s right up till his return in 2007, Daniel’s relative, Michael Tavioni, looked after the title.

Daniel says he claims the title through his ancestor Taka’ia Opetini.

Union Jack mistake unnoticed by most

Flags printed with upside-down Union Jacks were used during the Mini Games – but most locals are unaware of the slight difference. Inset: How it should be, with the wide white top line. . 09092155

If you’re off to buy a souvenir Cook Islands flag this week, you might want to check whether the Union Jack ensign is up the right way.

One keen-eyed CINews reader noted that many of the Cook Islands flags sold and flown during the Mini Games contained an upside-down Union Jack printed in the top left-hand corner.

Vonnia’s owner Yvonne Heather says they were alerted to their souvenir flag Union Jack error recently and now all their future imports from NZ will be checked before they are sent over. Vonnia’s also sells official Cook Islands flags which are correctly printed.

Traditionally, flying the Union Jack or the Union Flag upside-down is understood to be a distress signal when flown by a ship at sea – and the difference is so subtle as to be easily missed by most people.

Flying it this way is also seen as an insult to the Crown known as ‘lese Majeste’ and theoretically it’s still a crime in the UK and the Commonwealth.

Not to worry – in February the Brits got caught flying their Union Jack upside down when UK PM Gordon Brown signed a trade agreement with China premier Wen Jiabao with the wrong-way-up flag on the desk in front of him.

The correct way up for the Union Jack design is expressed as ‘wide white top and broad side up’.

This means that the first white stripe coming down diagonally from the top left-hand corner must be the thick white diagonal stripe and not the thin white stripe as seen on some of the flags seen waved proudly at the games.

The Union Jack, a design made up of the Cross of St Andrew counterchanged with the Cross of St Patrick over the Cross of St George was adopted as the UK’s flag in 1801.

Many other countries use the Union Jack within their flag including NZ and Australia, Fiji and Tuvalu.

Tini review continues

The audit review on suspended Cook Islands Investment Corporation chief executive John Tini will take another three weeks to complete, says director of audit Paul Allsworth.

The review began four weeks ago around September 14, just days after Tini was put on six weeks paid suspension by the CIIC board.

The review focuses on allegations of misuse of public funds to do with the World Youth Netball Championships, the Pacific Mini Games and the Aitutaki power station project.

While audit had anticipated a four week review, the extra three weeks it will take to finish is indicative of how far back in time they are looking. The review covers the entire period Tini has been employed – since mid-2007.

Allsworth says four of his 18 staff are still hard at work on the review.

Only Allsworth has been kept up to date on the internal developments of the review as the report will be passed on to the minister of audit Sir Terepai Maoate and the CIIC board only once completed.

It is understood parliament, where the report must be tabled and made public, is to resume sometime next month.

ON THE STREET

Have you got a plan in the event of a future tsunami warning?

Mathilda Miria-Tairea

Yes. I’ve got a bag packed with blankets and water and other necessities like food. We will head up to the hospital hill. Maureen Hilyard

I’m well set. I’ve put together a container of my valuables and a survival pack and we’ll take the family up the hill close by.

Charlie Numanga

I’ve been telling my family where to go to get up to higher ground. It all depends where you are on the island – taking a radio would be a good idea.

Tua Pittman First we will identify where the kids are, pick them up and head for higher ground.

Austin Teiti

I’ll just go to higher ground. That’s the main thing.

Dominic Teiti

I’ll grab what I need and head up a hill.

Anna-Faye

Newbigging

I’ve already packed some stuff up just to be prepared.

Kiki Puruto

We’ll just pack up what we need and run up the mountain.

TCI challenged over unprofitable services

Mervin Communications has challenged Telecom Cook Islands to front up with the costs of telephone services in the outer islands or give the new company the agreement it requires.

“Telecom Cook Islands continuously uses the unprofitable services it provides to the outer islands and the subsidies it pays from its general profit as an excuse to justify the high tariffs imposed on the consumer and the time has come for Telecom to either shape up or ship out,” says director William Framhein.

He says if Telecom does not want to service the outer islands, then let Mervin Communications and its associate companies do it.

“I cannot believe that telephone services to and from the outer islands costs 0.833 cents per second for fixed line calls plus line rental, 0.666 cents per second on everyday plan post-paid mobile plus monthly access fee and 0.810 cents per second peak, 0.400 cents per second off-peak lifestyle plan post-paid mobile plus monthly access fee.

“As for pre-paid mobile phones the call rates are even higher and residual credits on prepay mobile phones at the end of each month do not roll over into the new month as far as I understand.”

According to Framhein, KukiCel will be able to offer cheaper call rates – a whopping 50 percent saving on the current Telecom rates through its own network.

“The equipment required for, say, Penrhyn Island would cost less than $70,000, however this cost would be subject to co-locating consent on existing tower structures with access to power. Equipment installation would be less than a day.”

TCI chief executive Jules Maher has responded to the challenge saying the telecommunications act draft amendment yet to be introduced will require all service providers to contribute to a universal access fund to pay for unprofitable services.

“At the moment Telecom pays all the costs of unprofitable services. Under the new act, new entrants will need to contribute to these costs. The idea behind this is to prevent a new entrant coming into the market and just ‘cherry picking’ the most profitable services to compete on, while leaving Telecom to subsidise unprofitable services from reduced profits,” says Maher.

Framhein disagrees with Maher saying this would mean new entrants in the market would have to contribute to cover Telecom’s losses.

“It’s big enough to cover its own losses. The universal access fund is not about profit and loss but aims to provide access to all those in rural areas.”

Maher says he understands Framhein has made suggestions for the draft amendment bill and so he will be aware of how it seeks to preserve basic telecommunications services to the country.

Section 21 of the draft bill currently provides that a telecommunications commissioner propose a policy for universal access and in developing it consider its objectives, the basic services to be included, the geographical areas covered, costs as well as the obligations of all services providers to fund the universal service.

Section 22 provides for the setting up of a universal access fund out of which unprofitable services will be subsidised. The commissioner may require all licensees to contribute, determine how much, and determine how to distribute the fund.

Maher says it’s pointless to talk about current costs of Telecom’s services to the outer islands because the basic services to be covered by the fund have yet to be defined.

“Telecom may currently providing more (or less) than the universal access policy ultimately requires.

“We don’t know, and neither does anyone else at this stage. But I am sure we will all (including Mr Framhein) be given the opportunity by the commissioner to make input to the policy.”

Maher says TCI is not waiting for a minimum service level to be set either.

“We have just made a big investment in satellite capacity to the outer islands, which comes on stream early next month. And, since the confirmation of my appointment as CEO I have commenced a comprehensive review of our costs and prices, with a view to reducing both.”

‘Call mum and dad’

It is likely two Swedes had no idea their family and nation were worried when no one heard from them during the tsunami two weeks ago.

Christian Karlström, 24, and Catherine Donoso, 25, were at sea on the sailing vessel Marionet. Accompanying a Belgian skipper, they left Tahiti on September 27 and were heading towards the Cook Islands.

Family members of the Swedes reported them missing on Tuesday, October 1, when no one had heard from them.

“Of course we are worried, but we think that they are on some island. She said she was going to the Cook Islands,” Catherine’s father told Swedish newspaper Aftonbladet.

Last week Palmerston island communications officer and Telecom employee Joseph Marsters was able to relieve some parental fear.

“They arrived here on October 3 and left for Tonga around 6pm on Monday, October 5,” Marsters said.

“They were fine when they arrived and fine when they left.”

Marsters said they were mainly stopping to refuel and he had no idea why they weren’t in contact with family.

Several Swedish media contacted Marsters who was able to relay the good news.

It seemed the pair were oblivious to the anxiety their lack of communication caused.

“We suspect these two holidaying Swedes have no idea they had gone missing,” said Helena Melin Hultgren, first secretary of the Swedish embassy in Canberra.

“I very often wish these kids could call mum and dad more often.”

It is commonly known that being out at sea is the safest place to be during a tsunami with many not noticing the effect.

Govt proposes tax changes

Plans to increase VAT by 15 percent reduce income tax by next year

Cabinet will soon consider a proposal to increase VAT (value added tax) from 12.5 percent to 15 percent as of next year.

VAT on goods and services is currently government’s largest tax revenue at $34 million a year, representing 40 percent of the $85 million a year it receives in revenue.

Financial secretary Sholan Ivaiti explained yesterday that after a recent analysis of the economy his ministry found that consumers are fast losing their purchasing power and a solution is needed. What will go hand-in-hand with the proposed increase in VAT is a proposed five percent reduction in income tax rates.

This is the second time in a year that Ivaiti has made the proposal to increase VAT.

With the cost of goods climbing and the average wage declining, Ivaiti says the main aim of the ‘change to the tax mix’ is to have the average income earner able to cover their cost of living.

“Income has not grown in line with the cost of living,” he says.

Ivaiti notes that the main risk with his proposal is the potential for inflation. Businesses may use the VAT increase to put their prices up much higher. But he says government has plans to beef up its price control division to counter this kind of practice.

Last Friday Ivaiti presented the proposal to cabinet to increase VAT and decrease the income tax rates, along with two other options that could help lower income earners but may prove too costly for government. Cabinet asked for MFEM to consult those who will be impacted by the proposed change.

The first option given to cabinet is to increase the tax-free threshold from $10,000 to $12,000. This represents a loss to government revenues of around $500 per person that would have a $12,000 income. Ivaiti says while this option is easy to implement it will cost government around $2.6 million in revenues annually.

The second option for government is to lift the minimum wage from $5 to $7. This would give those on lower incomes more disposable income and increase government revenues by over half a million dollars a year but MFEM believes it applies to very few locals and the business community would not view it positively.

So MFEM is pushing the third option – increase VAT with a reduction in income tax rates from January 1 next year.

Currently income tax for those who earn $10-$30,000 is 25 percent (a maximum of $5000 in tax per annum) - those earning over $30,000 pay 30 percent in tax.

Ivaiti is proposing that both these tax rates be reduced by five percent initially, followed by a possible two percent cut in the tax rates by July next year – giving those who earn over $10,000 a year a seven percent reduction in their tax rate.

Ivaiti says the problem with the widening gap between the cost of living and people’s incomes won’t go away. He says it can lead to more Cook Islanders seeking greener pastures overseas.

MFEM expects the business community will not agree with the proposal to increase VAT and change the income tax rates.

Yesterday Ivaiti met with the chamber of commerce executive who he says have reservations about the proposal.

The Cook Islands Worker’s Association has also seen the proposal and its president Anthony Turua says while he supports a restructuring of the income tax rates he has concerns about an increase to VAT.

“In principal the tax rate reduction is a good idea. We support a minimum wage increase too – we proposed this two years ago but now it’s getting worse. Increasing the tax threshold is also well-overdue. I was alarmed by the rapid increase in the consumer price index – there’s definitely a widening gap which government is trying to close with its proposal.”

Cop, recruit plead guilty to fighting

A probationary constable and a police recruit appeared in court yesterday pleading guilty to fighting in a public place.

Both were discharged without conviction by justice of the peace Tiki Matapo.

Off duty probationary constable Judy Tuara, recruit Tereapii Tapoki along with John Williams were arrested early Saturday morning at Avarua wharf. They were identified by police officers on patrol to have been “throwing punches”. It was heard in court that more were involved however the defendants were the only ones arrested.

All three were remorseful and apologised yesterday.

“What do you have to say for yourself?” JP Matapo asked.

Tapoki said she was stupid and out of control while Tuara said it was a case of being at the “wrong place at the wrong time”.

“I was just trying to stop something happening and got involved,” she said.

A five minute adjournment was called before JP Matapo requested police prosecutor senior sergeant Tuaine Manavaroa to read out the summary of facts. He said just after 2am, two officers were on patrol where they were observing a crowd eating at Raro Fried Chicken. A girl (Tuara) waved them over and the officers then saw a group in front of the vaka shed fighting.

Tuaine says the police officer had witnessed Tuara run into the crowd and throw punches.

“There were three people identified at that time, these three were arrested and taken to the station,” Manavaroa says.

From the defendants’ account of events they were trying to stop Williams from getting involved in any conflict with another trainee officer. The recruit involved walked away from Williams.

“I was trying to stop a fight and preventing him (Williams) from chasing after him,” Tapoki says.

Tuara says they were driving back after getting Tapoki’s jumper from a nightclub when they stopped next to Williams and the other guy.

“I just saw her (Tapoki) get hit and got off the bike and went to stop it,” Tuara said.

“I was in shock and it went so fast. I waved (to the police) and was talking to them and turned around and saw another fight.

Tuara said she ran to try and break it up and maybe the police thought she was involved in the punching.

Williams had asked for a discharge as he had plans to move to Australia.

“This is unfortunate circumstances and I hope all three learn a lesson from this,” JP Matapo said. “I hope you don’t go to Australia with that behaviour as it won’t be tolerated there or here”

JP Matapo said the court had heard the circumstances and discharged all three without convictions.

“I hope it’s your first and last time to appear in court,” he said.

Probationary constable Tuara and police recruit Tapoki were suspended from duty by police commissioner Maara Tetava on Saturday. He said he was disappointed his officers were involved in the incident saying their actions were the very thing police have been trying to prevent, especially outside nightclubs in town.

“It is totally unacceptable for police officers to break the law that they have been tasked to enforce and any police officer who does that will face prosecution action just like any member of the public,” Tetava said.

“The two officers concerned have been suspended from duty. Although they have been cleared by the court, an internal investigation will be conducted before a final decision is made on whether or not they are re-instated.”

$1 million prop-up plan for Toa

Government is poised to give Toa Petroleum around $1 million to keep the country’s major fuel distributor operational.

Financial secretary Sholan Ivaiti is taking the prop-up proposal for the company to cabinet today.

The agreement to pay the huge sum to Toa’s owners Apex Agencies follows a decision by the court last month allowing government to reach a ‘commercial decision’ with Toa to enable the company to remain ‘operative.’

It is understood the $1 million will be paid on the condition it will either be credited against the purchase price of the facility, or in the case government decides not to go ahead with the deal it will be an unsecured loan to the company.

Toa is reportedly in a dire financial situation and has already threatened to sue government over the $5.16 million purchase that was to take place in January.

Ivaiti says he can’t release information on the new $1 million deal with Toa because of legal constraints.

However he has said it’s a question of whether government sits back and lets the country run out of fuel, or steps in to find a way forward.

Ivaiti says if possible government will use the $5.5 million already allocated for the purchase of Toa in last year’s budget to pay out the prop-up money. It will still mean government obtaining a bank loan.

In February Triad Pacific Petroleum succeeded in having the court halt the purchase of Toa after alleging that government breached financial laws to pursue the fuel farm scheme.

Govt proposes tax changes

Plans to increase VAT by 15 percent reduce income tax by next year

Cabinet will soon consider a proposal to increase VAT (value added tax) from 12.5 percent to 15 percent as of next year.

VAT on goods and services is currently government’s largest tax revenue at $34 million a year, representing 40 percent of the $85 million a year it receives in revenue.

Financial secretary Sholan Ivaiti explained yesterday that after a recent analysis of the economy his ministry found that consumers are fast losing their purchasing power and a solution is needed. What will go hand-in-hand with the proposed increase in VAT is a proposed five percent reduction in income tax rates.

This is the second time in a year that Ivaiti has made the proposal to increase VAT.

With the cost of goods climbing and the average wage declining, Ivaiti says the main aim of the ‘change to the tax mix’ is to have the average income earner able to cover their cost of living.

“Income has not grown in line with the cost of living,” he says.

Ivaiti notes that the main risk with his proposal is the potential for inflation. Businesses may use the VAT increase to put their prices up much higher. But he says government has plans to beef up its price control division to counter this kind of practice.

Last Friday Ivaiti presented the proposal to cabinet to increase VAT and decrease the income tax rates, along with two other options that could help lower income earners but may prove too costly for government. Cabinet asked for MFEM to consult those who will be impacted by the proposed change.

The first option given to cabinet is to increase the tax-free threshold from $10,000 to $12,000. This represents a loss to government revenues of around $500 per person that would have a $12,000 income. Ivaiti says while this option is easy to implement it will cost government around $2.6 million in revenues annually.

The second option for government is to lift the minimum wage from $5 to $7. This would give those on lower incomes more disposable income and increase government revenues by over half a million dollars a year but MFEM believes it applies to very few locals and the business community would not view it positively.

So MFEM is pushing the third option – increase VAT with a reduction in income tax rates from January 1 next year.

Currently income tax for those who earn $10-$30,000 is 25 percent (a maximum of $5000 in tax per annum) - those earning over $30,000 pay 30 percent in tax.

Ivaiti is proposing that both these tax rates be reduced by five percent initially, followed by a possible two percent cut in the tax rates by July next year – giving those who earn over $10,000 a year a seven percent reduction in their tax rate.

Ivaiti says the problem with the widening gap between the cost of living and people’s incomes won’t go away. He says it can lead to more Cook Islanders seeking greener pastures overseas.

MFEM expects the business community will not agree with the proposal to increase VAT and change the income tax rates.

Yesterday Ivaiti met with the chamber of commerce executive who he says have reservations about the proposal.

The Cook Islands Worker’s Association has also seen the proposal and its president Anthony Turua says while he supports a restructuring of the income tax rates he has concerns about an increase to VAT.

“In principal the tax rate reduction is a good idea. We support a minimum wage increase too – we proposed this two years ago but now it’s getting worse. Increasing the tax threshold is also well-overdue. I was alarmed by the rapid increase in the consumer price index – there’s definitely a widening gap which government is trying to close with its proposal.”

Cop, recruit plead guilty to fighting

A probationary constable and a police recruit appeared in court yesterday pleading guilty to fighting in a public place.

Both were discharged without conviction by justice of the peace Tiki Matapo.

Off duty probationary constable Judy Tuara, recruit Tereapii Tapoki along with John Williams were arrested early Saturday morning at Avarua wharf. They were identified by police officers on patrol to have been “throwing punches”. It was heard in court that more were involved however the defendants were the only ones arrested.

All three were remorseful and apologised yesterday.

“What do you have to say for yourself?” JP Matapo asked.

Tapoki said she was stupid and out of control while Tuara said it was a case of being at the “wrong place at the wrong time”.

“I was just trying to stop something happening and got involved,” she said.

A five minute adjournment was called before JP Matapo requested police prosecutor senior sergeant Tuaine Manavaroa to read out the summary of facts. He said just after 2am, two officers were on patrol where they were observing a crowd eating at Raro Fried Chicken. A girl (Tuara) waved them over and the officers then saw a group in front of the vaka shed fighting.

Tuaine says the police officer had witnessed Tuara run into the crowd and throw punches.

“There were three people identified at that time, these three were arrested and taken to the station,” Manavaroa says.

From the defendants’ account of events they were trying to stop Williams from getting involved in any conflict with another trainee officer. The recruit involved walked away from Williams.

“I was trying to stop a fight and preventing him (Williams) from chasing after him,” Tapoki says.

Tuara says they were driving back after getting Tapoki’s jumper from a nightclub when they stopped next to Williams and the other guy.

“I just saw her (Tapoki) get hit and got off the bike and went to stop it,” Tuara said.

“I was in shock and it went so fast. I waved (to the police) and was talking to them and turned around and saw another fight.

Tuara said she ran to try and break it up and maybe the police thought she was involved in the punching.

Williams had asked for a discharge as he had plans to move to Australia.

“This is unfortunate circumstances and I hope all three learn a lesson from this,” JP Matapo said. “I hope you don’t go to Australia with that behaviour as it won’t be tolerated there or here”

JP Matapo said the court had heard the circumstances and discharged all three without convictions.

“I hope it’s your first and last time to appear in court,” he said.

Probationary constable Tuara and police recruit Tapoki were suspended from duty by police commissioner Maara Tetava on Saturday. He said he was disappointed his officers were involved in the incident saying their actions were the very thing police have been trying to prevent, especially outside nightclubs in town.

“It is totally unacceptable for police officers to break the law that they have been tasked to enforce and any police officer who does that will face prosecution action just like any member of the public,” Tetava said.

“The two officers concerned have been suspended from duty. Although they have been cleared by the court, an internal investigation will be conducted before a final decision is made on whether or not they are re-instated.”

$1 million prop-up plan for Toa

Government is poised to give Toa Petroleum around $1 million to keep the country’s major fuel distributor operational.

Financial secretary Sholan Ivaiti is taking the prop-up proposal for the company to cabinet today.

The agreement to pay the huge sum to Toa’s owners Apex Agencies follows a decision by the court last month allowing government to reach a ‘commercial decision’ with Toa to enable the company to remain ‘operative.’

It is understood the $1 million will be paid on the condition it will either be credited against the purchase price of the facility, or in the case government decides not to go ahead with the deal it will be an unsecured loan to the company.

Toa is reportedly in a dire financial situation and has already threatened to sue government over the $5.16 million purchase that was to take place in January.

Ivaiti says he can’t release information on the new $1 million deal with Toa because of legal constraints.

However he has said it’s a question of whether government sits back and lets the country run out of fuel, or steps in to find a way forward.

Ivaiti says if possible government will use the $5.5 million already allocated for the purchase of Toa in last year’s budget to pay out the prop-up money. It will still mean government obtaining a bank loan.

In February Triad Pacific Petroleum succeeded in having the court halt the purchase of Toa after alleging that government breached financial laws to pursue the fuel farm scheme.

Task force reveals initiatives

Imagine having the same standard of living as New Zealand, a healthier nation and a steadily growing and vibrant economy.

The economic development task force believes the country can be put on this very track by carrying out the ‘common sense’ initiatives it has identified over the past two months.

It says a comprehensive economic development programme, including political reform and reform of the public service, would have a dramatic impact and set the path for strong economic growth.

Yesterday the task force, chaired by businessman Tata Crocombe, briefed local media on its strategy for upgrading the Cook Islands to the next level.

This week it will also make its presentation to the public and invite further feedback on its ideas.

The taskforce initially looked for initiatives with a high economic benefit and low cost. It believes much more work has to be done within the tourism industry to grow the economy before embarking on high cost infrastructure projects.

Crocombe says he believes the country is at another turning point in its history and practical decisions that have a clear consensus from government, the private sector and the public at large, need to be made now.

“Let’s get on with it,” he says.

The members of the task force are all in the private sector and have contributed to a fresh perspective on where the economy could be taken.

Its thinking ‘outside the square’ and promoting a holistic view of development, that has led to sensible ideas on how to make the Cook Islands an attractive place to work and live.

The task force has emphasised a need for the public and private sectors to work together in partnership like it never has before to enable the initiatives to work.

“These initiatives need to start bearing fruit now and not in 20 years. The challenges here are not rocket science,” said Crocombe.

One of the key aspects of the task force strategy is working with China because it believes it can provide major opportunities to upgrade the economy and standard of living.

Crocombe says the scale and growth in China is unprecedented in human history – it has the strongest economy globally and represents a quarter of the world’s population.

The task force is advocating growth in agriculture production through model farms in cooperation with China, no or low interest loans for agriculture projects and working with airlines to grow exports.

It also believes China is ready and willing to assist the Cooks in the areas of trade, tourism, investment, food sustainability, banking, insurance, shipping and the development of sports.

The task force has suggested political reform, public service reform, improved aviation links, new education institutes, increased agriculture production, a public health weight management campaign, a superannuation choice (between the Cooks, NZ or Australia funds), alternative ports, an upgrade to the Punanga Nui marketplace (opening six days) and a shipping joint venture can be carried out to the benefit of the economy.

The task force wants to see as a priority a refreshed Cook Islands tourism brand, increased destination marketing, the set up of eco-tourism (including walkways, cycle ways, rainforest reserves, and raui), harmonisation of social services and regulations with that of New Zealand, an increase in the minimum wage, tax incentives for construction, a Beijing embassy and China tourism and energy agreement, and infrastructure development.

The task force says government needs to seriously consider improving the return on investment on assets managed by the Cook Islands Investment Corporation (CIIC).

It asks whether the Auckland consulate can be closed and unused lands given back to landowners.

Crocombe says the taskforce is also advocating that government either ‘fix’ the Bank of the Cook Islands or sell it, and sell the government shares in Telecom too.

So far the initiatives the task force has put forward has received positive feedback from cabinet and heads of ministries and it admits its biggest challenge now is how to get the ball rolling on some of them now.

Crocombe adds while some of the initiatives and strategies are long shots, each member of the task force believes its worth a shot to inject life into the economy before too many Cook Islanders head for greener pastures.

Shipping licence for PDL

Pacific Direct Line (PDL) will be issued an international shipping licence to operate into Rarotonga, and probably Aitutaki.

Shipping minister Tangata Vavia said that the application from the chief executive of PDL was considered in consultation with the shipping committee, the CEO of Pacific Forum Line and other interested parties.

A recommendation was submitted to cabinet for a licence to be issued to PDL at a special cabinet sitting on Friday, October 9, according to the media release from Vavia’s office.

“What is important to me is that the consumer benefits from a competitive environment both in terms of fair and reasonable freight rates, and reliable and sustainable shipping service,” said Vavia.

PDL is ready to deploy the Southern Phoenix on a 23-day cycle, which will take in Tonga and Rarotonga, before returning to Auckland, New Zealand.

VAT increase unbelievable – MPs

Opposition MPs Teina Bishop and Nandi Glassie have vowed to oppose government’s proposed increase to VAT (value added tax), calling the move unbelievable.

Bishop says increasing taxes during a time of global recession is ridiculous and unjustified.

Government plans to increase VAT from 12.5 percent to 15 percent from January 1 2010.

At the same time it also aims to reduce income tax rates by five percent.

Bishop and Glassie have rubbished financial secretary Sholan Ivaiti’s claims that the move is motivated by the problem of people losing their purchasing power because of the widening gap between income and the price of goods.

“There is no justification for an increase in VAT. It’s nothing but to increase government revenue and this has already been done through the departure tax increase and hike in tobacco and liquor levies. VAT tax impacts everyone in this country, especially the older people (retired) who can’t claim it back,” says Bishop.

Earlier this year when Ivaiti first proposed the VAT increase, the opposition MPs made a point of asking finance minister Sir Terepai Maoate in parliament if an increase in the tax was coming.

“He said there would be no increase in VAT. Now it’s happening.”

Glassie says the move is ‘robbing Peter to pay Paul.’

“I have never heard of such an increase in the region. Even New Zealand, since 1988, has kept VAT at 12.5 percent.”

Glassie believes government is using the increase in VAT to camouflage the serious issues it faces with its debts.

“We are running on a deficit. The country has too much debt and there are hidden costs government hasn’t shown the public. They’ve put forward a scenario to look good at the detriment of the consumers of this country.”

Bishop says in a year when the largest budget has been tabled, government should first look at stopping the ‘wastage’ in its spending. He believes expenses like government cars for the public service should get the chop first.

“They have already gained $5.6 million from the departure tax – to increase other taxes is just unbelievable now.”

Chamber reaction on page 8

$38,000 collected for tsunami

Cook Islands has dug deep to give more than $38,000 so far to the Red Cross tsunami appeal fund.

Nicky Rattle of Cook Islands Red Cross says in the Westpac account to date there was $37,836 deposited. The bulk of the funds came from last week’s radiothon with among those giving was the New Hope Church with $10,000, Seventh Day Adventist church with $1000 and Rarotonga Beach Spa and Resort donating $4300.

“It’s been so overwhelming,” Rattle says. “This is a combined effort with the Samoans and Tongan members of our community. It started off quite slow then went quite crazy.”

She says during the radiothon they were almost run off their feet with people calling in or turning up to give money.

More money is expected to flow in from pledges and the Red Cross outer islands fundraising efforts. An ANZ bank account was also opened last month with $520 deposited.

“At the end of the day it’s looking to reach $45,000.”

Rattle says the bulk of the money will be sent to Red Cross in Samoa, America Samoa and Tonga on Friday but the bank accounts will remain open.

“People still wanting to give can do so.” - DK