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Shark sanctuary declared
Parliament finishing up today
Santa’s coming early!
Triad threatens court action
Call for more to warn swimmers
MPs and queens support appeal
Global weaving live in Arorangi
New warning signs proposed
Christmas gift for workers
Fisherman’s work
Burglars busy
#1 for Kiwi weddings
Fishing boats to be monitored
Investigation into alleged infrastructure misconduct
Xmas callout
CISA sports course axed
Queen of Hearts show comes to town
$2.4m tax on shareholder’s dividend
Accommodators to provide water safety advice
Shark sanctuary declared
Thu
13 Dec
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Marine Resources Minister Teina Bishop looked happy to announce a shark sanctuary for the Cooks in parliament yesterday.
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Cook Islands waters have been declared a safe haven for sharks.
Marine Resources Minister Teina Bishop announced in parliament yesterday that the whole of the Cook Islands exclusive economic zone is now a shark sanctuary.
This means no targeting, retention or possession of sharks or any part of a shark on board any commercial vessel.
“Did you ask your Chinese bosses?” asked Teenui-Mapumai MP Norman George quickly. “No more chop suey?”
Bishop said the shark ban happened after a lengthy consultation period with community groups, island councils and the Pacific Islands Conservation Initiative, led by Stephen Lyon and Jess Cramp.
The minister also received letters of support from the House of Ariki and Koutu Nui, Te Ipukarea Society, National Environment Service, outer island councils and fishing clubs – among many others.
Several hundred people signed a public petition in support of a shark sanctuary.
“And then there were the school children,” said Bishop. “Many of them wrote letters of support for a shark sanctuary directly to the prime minister.”
He said that children are attending school prize-givings this week – but there is one prize that every child should get.
“That is the prize of a shark sanctuary here in the Cook Islands, as per their wish.”
Establishing a shark sanctuary here will have no negative economic impact on the Cook Islands as there is no commercial interest in shark fishing here, said Bishop.
“We have put in place the most strongest regulations possible to deter any form of shark exploitation within the waters of the Cook Islands.
“The introduction of these shark sanctuary regulations means that the people of the Cook Islands can feel very proud that our nation is now a global leader in environment protection in terms of our marine resources and shows quite clearly that we are managing our fisheries in a very managed and responsible way.”
In creating a sanctuary, the Cooks join countries such as American Samoa, Marshall Islands, Northern Marianas, Tokelau, the state of Hawaii and French Polynesia.
Later in proceedings, opposition leader Wilkie Rasmussen welcomed the government’s move as showing the true value of sharks to Cook Islanders.
“We feel the ocean is owned by sharks,” he said.
Sharks can be seen all round the Cooks, he said, from tiger sharks to gentle giant whale sharks that bask in the shallows. “People can go up to them and actually pat them – they have no teeth as they only eat plankton.”
The increased demand for shark fins on the Asian market was an issue that the Cooks have had to contend with, he said.
“We do have Asians coming to our islands asking for finsBut sharks are very cunning, they know people are fishing for them and do not show up.”
He noted the “joy” Bishop seemed to radiate when making the announcement, and said this was the sort of move that means a great deal to Cook Islanders.
Parliament finishing up today
Thu
13 Dec
Parliament finishes up for the year this afternoon – a day earlier than planned.
Acting Prime Minister Tom Marsters announced yesterday that parliament would not sit on Friday, due to radio airwaves being taken up with a “radiothon” fundraiser for the victims of recent fires around Rarotonga.
Parliamentary proceedings are usually broadcast live over national radio.
The House will finish up by sitting from 10am until 2pm today, with part of the day allocated to members to give their Christmas greetings.
A farewell lunch will be given to retiring clerk Nga Valoa after this.
But some of the items on the order paper for the two–week sitting have not been addressed – namely the rest of Norman George’s 17 questions to cabinet.
Marsters said that any questions not answered so far must still be answered by the respective cabinet member – and the reply given to newspapers to publish.
Today concludes nearly two weeks of parliament sitting every day. Eight bills were tabled in this time.
Parliament has sat 23 days this year – 77 short of the 100 promised by Cook Islands Party before election to power.
Santa’s coming early!
Fri
14 Dec
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The Eye Centre’s Annie Mason is planning a special Christmas event for children aged 10 and under next Tuesday from 5pm. Children able to meet Santa and remind him of the presents they want for Christmas a week later. Details, page 15.
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The Eye Centre’s Annie Mason is planning a special Christmas event for children aged 10 and under next Tuesday from 5pm. Children able to meet Santa and remind him of the presents they want for Christmas a week later. 12121309
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Triad threatens court action
Fri
14 Dec
Triad Pacific Petroleum Ltd principal Chris Vaile has written to four members of parliament with an impassioned plea for a fair fuel deal.
Vaile sent a letter to Prime Minister Henry Puna, finance minister Mark Brown, opposition leader Wilkie Rasmussen and independent MP Norman George on December 4.
He called it a “call to arms” to make sure the Te Aponga Uira diesel supply and hosting tender, which closes December 17, is fair. Triad currently holds the contract.
Vaile said there needs to be a tender that produces best value for Cook Islands public, “without the ‘Toagate guarantee’ corrupting the process and costing us all millions of dollars more”.
He believes the Crown has paid to date $6 million to Toa Petroleum owner Apex Agencies. This is a result of the Toagate settlement in 2010, which saw the courts order the government and people of the Cook Islands to pay Toa director Brett Porter and the company $100,000 each month – $1.2 million a year.
“By the time of the next general election the public will be even worse off unless something is done,” Vaile warned the politicians.
Vaile said winning the diesel tender is very important to Triad.
“I will fight hard to make sure Triad gets this contract, but if I bring the ‘knife’ that cuts through prices to give Te Aponga the best deal, I can expect Toa to bring the ‘gun’ of the ‘Toagate guarantee’ – using public money to undercut Triad.
“We all know what happens to the man who brings a knife to a gunfight... and Triad does not intend to die at the hands of the gun the Crown has given Toa.”
Vaile said it was not [former financial secretary] Kevin Carr’s intention when he set the fuel price template that Toa would have the monopoly through the government guarantee.
“So long as the Toagate guarantee remains in force to guarantee annual profits to Toa of $1,200,000 the tender process is corrupted.”
If Triad does not get the supply and/or hosting contract, the company will take the other parties involved to court, warns Vaile.
“In all conscience and morality, Brett Porter and Toa have had millions of dollars more than they are morally entitled to.
“Every parliamentarian who sits back and lets this drain of public money continue must bear responsibility to Cook Islanders for allowing that to happen. It is a wound that injures every person in this country.
“And unless we sort this out before the Te Aponga tender gets underway, the public are going to hear a lot more about Toagate guarantee over the next two years than they have over the past two years.”
Rasmussen asked Brown in parliament on Monday whether he agreed with Vaile that the “Toa situation” should be legislated by parliament.
Brown said Rasmussen is well aware of the “suggested remedies of a competitor of Toa”.
He said the government is bound by court conditions as to how much they owe Toa.
“When and if the government has a strategy with how to go forward, I will inform the House.”
Call for more to warn swimmers
Fri
14 Dec
Titikaveka MP Selina Napa yesterday offered her condolences to the Palmer family, who suffered a “tragic loss” on Tuesday.
Local teacher and sportswoman Vanessa Palmer lost her mother Judy after she drowned while swimming in the Avaavaroa passage. The Palmer family’s good friend Robert Groves also drowned in the rough conditions.
In parliament yesterday, Napa said how sorry she was to hear the terrible and sad news, which happened in her constituency.
“In the heart of the families of Vanessa, this tragic incident will remain for a long time.”
She said friends and family members of the deceased were welcome to make a complaint about the incident. This could help inform proposals to make the notoriously dangerous swimming area safer, she said.
Tourism Corporation chief executive Halatoa Fua had been approached about making the Vaimaaga lagoon and other swimming spots around Rarotonga safer, said Napa.
“The problem is how to relay the message to those tourists coming over the Christmas break. Please beware whenever you go snorkeling, particularly in the rough passages in Rarotonga’s seas.
“This warning is not just for tourists, but locals – do not go swimming in the passages, particularly when it’s rough.”
While there is a sign in front of the Avaavaroa passage warning swimmers of the dangers, it is hard to read – over the years the weather and sea have deteriorated the words.
According to a correspondent’s letter to the editor, published today, a few years ago the Ministry of Marine Resources erected two sign posts on either side of the passage with a warning in both Maori and English of the potential risk to swimmers.
“The posts have remained but the signs disappeared about three summers ago during high seas – sadly, they were never replaced.”
MPs and queens support appeal
Fri
14 Dec
TODAY’S radiothon and queenie show are the final events of a five-day appeal for the victims of four house fires in Nikao.
The national radiothon starts at 11am on Radio Cook Islands and will run for five hours.
Telecommunications minister Mark Brown will launch the programme. Government media advisor Trevor Pitt has been helping with preparations and says the fundraiser is a chance for the message of helping families in need to be spread beyond Rarotonga.
“The appeal will be to try and connect with the families and extended families of these people,” says Pitt. “It will target the outer islands people as well – they’ll want to make sure the message goes far and wide.”
The queenies show at Rehab starts at 11pm. Tickets are $5.
All money raised will go towards the fire appeal fund, which at present sits at $4300.
Tune in, pledge some money and head down to Rehab for what is set to be a festive Friday for a great cause.
The appeal has been organised by Bank of the Cook Islands (BCI).
Global weaving live in Arorangi
Sat
15 Dec
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German artist Sussana Sitterding with the ‘endless global weaving’ piece which she has been working on since last year. See her working live at The Arts Studio in Arorangi – story page 7.
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German artist Sussana Sitterding with the ‘endless global weaving’ piece which she has been working on since last year. See her working live at The Arts Studio in Arorangi – story page 7. 12121111
Related article(s):
Global weaving grows out west
New warning signs proposed
Sat
15 Dec
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The tragic drowning of two visitors at Avaavaroa passage on Tuesday has prompted an initiative to erect more prominent warning signs in areas considered dangerous for swimming.
New Zealand high commissioner John Carter along with a group of equally concerned businesspeople are making it their mission to prevent further deaths at the Avaavaroa passage and the other natural passages on the southern coast of Rarotonga.
The families of the deceased have also raised their concerns about the lone derelict and almost unreadable sign that serves as the only warning sign in the area.
“Action will be taken,” vows Carter.
“I’ve been talking with Ewan Smith and others about ensuring proper and adequate signage is erected in the appropriate places and certainly in areas considered to be dangerous.”
Carter says that the New Zealand high commission is taking an interest in the matter as they too want to make sure that Kiwi holidaymakers are as informed and safe as possible when visiting the island.
“Some but not all locals are aware so we are keen to make these areas as safe as possible.”
Carter took a walk along the stretch of beach in Vaimaanga opposite the Youth With A Mission centre where the friends drowned, to see for himself the inadequate sole caution sign on the beach.
There used to be two other signs on poles in the lagoon, but they have since rusted off leaving just two poles in the water.
Carter says there are plans to make signs that will ‘hit you in the face’ and can’t be missed. Pictorial signs with aerial shots of the passages are proposed, to make it very clear to anyone stopping at the beach that the area is not as safe as the inviting waters look.
There have also been discussions on marking the Avaavaroa passage with high visibility buoys.
“We feel we need to mark the passage because you can’t really see it when you are in the water.”
Of course Carter acknowledges that the area cannot be made 100 percent safe but immediate action is planned.
The bodies of Judy Palmer (62) and Robert (Bob) Groves will be returned to New Zealand today where families and friends will make their final farewell.
Christmas gift for workers
Sat
15 Dec
The enactment of the Cook Islands Employment Relations Act 2012 in parliament this week is being seen as the best Christmas gift for Cook Islands workers this festive season.
Cook Islands Workers Association President Anthony Turua said the enactment of the Act is a major milestone for the Cook Islands.
“It is indeed a cause for celebration this festive season and the best Christmas season gift for all workers in the Cook Islands,” says Turua.
He says that the milestone legislation binds both Crown employees and all workers in the private sector and introduces new features in the Cook Islands employment arena with stronger clauses.
These include stronger clauses on the freedom of association rights for employees and employers, collective agreements and individual agreements, discrimination, sexual and racial harassment and duress, termination and redundancy, dispute resolution process and more importantly a government funded, paid maternity leave.
The government funded, paid maternity leave is based on the minimum wage of six weeks for women in the private sector workforce, given that crown employees are already being covered by their respective government employers.
The new paid maternity leave comes into force from January 1, 2013, and includes foreign workers however Turua says their employer is responsible to pay for their six weeks of maternity leave.
“Private sector women with Cook Islands nationality and permanent residency status will be covered under the new government scheme for paid maternity leave.”
The Employment Relations Bill is one of the longest to be reviewed and tabled in parliament since 1996.
“The bill has gone through numerous public consultations over the years and collective efforts of the Cook Islands Workers Association, non-governmental organisations and Chamber of Commerce in ensuring that modernised employment laws are put in place to replace the very archaic Cook Islands and Industrial and Labour Ordinance 1964, to combat exploitation and discrimination of workers’ rights and trade union rights.”
Turua adds that though the new legislation does not reflect the establishment of trade unions, it does recognise the formation of workers associations and their employer’s counterpart.
“This is one of CIWA’s major project focuses over the years and this milestone achievement this week brings the national executive to another level of legislative awareness to its members on the mainland Rarotonga and in the outer islands.”
“On behalf of the Cook Islands Workers Association and its national executive and members, we would like to extend our appreciation and gratitude to PSI, Cook Islands government and private sector employers for the utmost support in this milestone achievement during this festive season and the New Year. Warmest solidarity to you all.”
Fisherman’s work
Mon
17 Dec
Dedicated fisherman Jubilee Jubilee (aged four) was one of about 150 anglers at Saturday’s highly successful junior fishing competition at Avana harbour.
The Imanuela Akatemia pupil and his older brother Temarii (seven) were among the enthusiastic boys and girls who made the competition a much bigger success than even organiser Captain Moko expected.
Due to the popularity of the one-day event – there are discussions to hold the educational and fun event more often to teach and encourage Rarotonga kids to fish.
and 9.
Related article(s):
Captain Moko’s fishing comp draws 150
Burglars busy
Mon
17 Dec
Burglaries, unlawful taking of motorbikes and drunk youths were the main causes of trouble for police at the weekend.
Rarotonga police are eager to receive the support of the public who may have information on several burglaries at the weekend to come forward with information no matter how insignificant it may seem.
Police are investigating the burglary of Manea Foods in O’oa where a large amount of alcohol and cigarettes were taken between 10pm Friday and 6am on Saturday.
The Staircase Restaurant and Bar was also burgled on Saturday where a large number of spirit bottles were taken.
The Tereora College tuck shop was also burgled with soft drinks, juice and ice blocks taken.
Police are asking people with any information on these burglaries to call the station on 22499.
Meanwhile police are investigating a large brawl outside a Ngatangiia night spot on Friday night as well as the unlawful taking of a number of motorbikes.
Police are looking for a Honda Daelim with the registration number AAP320 stolen from outside the audit office between 4pm and 7pm on Friday.
A second motorbike, a black Yamaha Spark with the registration number of AAG195, was taken on Saturday between 1am and 2.30am from outside Hidie’s Bar at Cooks Corner.
Police will be grateful for any information on these two motorbikes.
A number of other motorbikes were recovered by police early on Sunday morning from Ruatonga, Avarua and Vaimaanga.
Police returned one of the bikes to the owner who didn’t know the bike had been taken.
The owners of a Honda Daelim with the registration number AAI631 and a second Honda Daelim with the registration number AAP802 are asked to contact police to claim these vehicles.
Drunken youths were removed from a number of separate residential properties for bad behaviour that resulted in stern talks from police officers.
A man aged 29 will appear in court this Thursday after being arrested at the court house building where he was unlawfully found.
Inspector Johnny Hosking is urging the community at large to celebrate sensibly this festive season and says police will be taking a zero tolerance attitude towards drink driving, domestic violence, fighting in public and assaults.
“A high level of police presence and visibility will be the priority to enforce a safe and secure environment for the community and its visitors this festive season,” says Hosking.
He would also like to remind the community to be prepared for a cyclone as Samoa and Fiji brace against the forces of cyclone Evan.
#1 for Kiwi weddings
Mon
17 Dec
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The Cook Islands has been declared the most popular wedding destination for Kiwis outside New Zealand.
New Zealanders are increasingly looking to marry overseas – with Rarotonga the most sought-after destination, followed by Thailand, Fiji, Samoa and Tahiti.
Ministry of Justice figures show more than 900 Kiwis had tied the knot in the Cook Islands since 2010, with 400 last year.
There were 86 weddings this October, four more than October 2011. Sixty-nine percent of all marriages were couples from New Zealand, with 19 percent of couples from Australia. Sixty-one percent of the weddings were held at a hotel or resort and 28 percent were held either on the beach or a motu.
New Zealand Herald quotes Infinity Holidays product manager Melissa Bramley as saying there had been a significant spike in “destination weddings”.
Bramley said the pressure of organising a large, expensive wedding and inviting extended family made eloping an attractive option. She said marrying overseas also worked as a combined honeymoon, and a holiday for guests.
“People choose to have a destination [wedding] because you can get such great photography and it can be a lot more cost-effective than having it in New Zealand.”
Fishing boats to be monitored
Mon
17 Dec
A new initiative to monitor illegal fishing practices was announced at a recent regional fishing meeting in the Philippines.
All vessels passing through exclusive economic zones of Western and Central Pacific Fisheries Commission [WCPFC] member countries – including the Cooks – from high sea areas will soon have to switch on vessel monitoring systems (VMS).
A VMS consists of an electronic device that records the position, speed, and course of a vessel and provides a system to track commercial fishing boats.
The initiative, championed by the United States and Pacific island countries, is called ‘flick the switch’.
It will lessen the possibility of boats going into zones to fish illegally.
The Cooks were represented at the conference by Ministry of Marine Resources (MMR) secretary Ben Ponia and offshore fisheries director Joshua Mitchell.
Investigation into alleged infrastructure misconduct
Tue
18 Dec
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Island Craft staff members Stacey Ward, Mhel Castillo and Tupuna Amo have been getting into the Christmas spirit.
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An independent investigation is being made into possible misconduct in the form of mis-spending and lack of proper process in the Ministry of Infrastructure and Planning.
The focus of the investigation is alleged misconduct by ministry head Donye Numa, who was suspended from her job on December 3.
However, the investigation also implicates the Minister of Infrastructure and Planning, Teariki Heather.
Former public service commissioner Navy Epati has been appointed to do an independent investigation by public service commissioner Russell Thomas, who did not want to comment on the investigation while it is ongoing.
Opposition leader Wilkie Rasmussen says there is public concern over the tendering of infrastructure contracts within the ministry, and names examples as far back as early last year – when Numa was acting secretary.
Rasmussen says any project under $30,000 can be allocated to contractors by heads of ministries, and do not need to go through the tender process.
“There seems to be a discrepancy – and a number of people have complained to me about this – and a tendency of T&M Heather to win or secure many infrastructure contracts. How that happens, I don’t know.”
Cabinet ministers should not hold portfolios that have any potential conflict of interest with their business interests, says Rasmussen.
The public service commissioner is required to table a report to cabinet within a month of the date of Numa’s suspension – and within a month from then a decision will be made whether to reinstate Numa or terminate her contract.
Former head of the Office of the Prime Minister Mac Mokoroa is acting secretary of the infrastructure ministry.
Related article(s):
Independent investigation into MOIP
Xmas callout
Tue
18 Dec
The search for the best-decorated Christmas window for Avarua businesses has been extended to Thursday.
The CITC-sponsored competition will close on Thursday evening, the same night people will be out and about for late night shopping.
Businesses, organisations and companies still have another three days to find the best tinsel, snow spray and Christmas lights for the competition. Judges from Rotaract will start inspecting the windows from 7.30pm.
Three Christmas hampers valued at $200 will be given for first, second and third, while photos of the winning entries will be published in Cook Islands News.
CISA sports course axed
Tue
18 Dec
The Cook Islands Sports Academy (CISA) held its graduation on Friday – its last, as the programme has been terminated by the Ministry of Education (MOE).
Following the merger of the Department of National Human Resources Development (DNHRD) under MOE in July this year, MOE took over the overall responsibility for the operations and funding of the programme including alternative learning programmes Rakei Toa and Tumanava.
The cutting of the CISA programme, both in Rarotonga and Aitutaki, along with new arrangements for the Rakei Toa and Tumanava programmes, are changes that have resulted as the MOE develops its tertiary education strategy due for completion in mid-2013.
Education secretary Sharyn Paio says the new strategy will address issues of low participation in training by young people after they leave school, increase the range of training options available, improve the training of skills that meet the needs of the local employers and increase the training options available for people in the sister islands.
The three programmes were initiated by league legend Kevin Iro who is understandably disappointed that the mostly sport oriented CISA programme has been axed.
Since 2006 the programme, which began as a Sports Education New Zealand (SENZ) course, has had a 98 per cent success rate, according to Iro.
He feels that the programme has been cut because it appears to just be a sports programme but he says it’s not just about sport.
“The programme was also about building self-esteem and confidence in the students,” says Iro.
While he is naturally disappointed that the successful programme has been looked over for further funding in 2013, he feels that there isn’t much he can do to change the decision made.
He feels the same disappointment with the new arrangements for the Rakei Toa and Tumanava programmes.
Tumanava grew out of a need for the more at-risk students, some whom had already been in trouble with the law.
The programme will continue next year with current tutor Lloyd Matapo remaining as charge over the students.
“It is definitely our intention to support this programme and make it even bigger and stronger,” says Paio.
Rakei Toa began in 2010 and targeted the slightly younger 11 to 14 school aged students who had dropped out.
Because the students at Rakei Toa are of school age, this programme has always been under Tereora College for legal requirements but run along with CISA from the Nikao School complex and managed by Iro and two tutors – Turori Matutu and Potaa Pokura.
New tutors for the 2013 programme have yet to be confirmed however the news has hit both Matutu and Pokura hard as they feel they’ve been left in the dark over the changes.
For Iro, the new arrangements have left him with no choice but to ‘take a step back’.
“I didn’t have much choice but to step back – we have no leg to stand on,” says Iro.
Paio says that new arrangements, as a result of their tertiary education strategy, are because the department wants to appeal to a broader range of young people right across the country with programmes that will be more aligned to the current job market.
“The 2011 census shows 265 youth aged 15 to 25 are currently unemployed. With our limited funds we are endeavouring to expand the range of opportunities for young people, especially those who are unemployed,” says Paio.
She adds that the CISA programme was narrow in its focus and was not the most effective way of achieving MOE’s goal.
Queen of Hearts show comes to town
Wed
19 Dec
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Queen of Hearts performers (from left) Cindy of Samoa, local artist Henry Ah Foo Taripo, renowned New Zealand Maori artist Mika and fresh faced hip hop artist Eddie Elliott.
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Wild laughter and lots of fun are what the audience can expect from this Friday’s Queen of Hearts show presented by the Staircase Restaurant and Bar in Taputapuatea.
International performers Cindy of Samoa and Mika from New Zealand have arrived on the island to join friend Henry Ah Foo Taripo in giving islanders a show like nothing before.
Cindy’s sharp wit and on stage confidence and island flare are sure to put show-goers in the festive mood while Taripo will be performing for the first time in a very long time in front of his home crowd.
New Zealand Maori artist Mika, an entertainer with three decades of eye-popping innovative work spanning stage, film, television, fashion and music, says the show will be full of fun and frivolity and will be slightly scandalous.
Mika has warmed up for Grace Jones in New York and entertained HRH Prince Charles at the Palace of Holyroodhouse.
Mika has recorded seven albums in Te Reo Maori and English, and has appeared in over 10 TV series and specials from TVNZ classics Shark in the Park and Shortland Street, to his own Qantas Award nominated Mika Haka Kids and Ka Life for Maori Television.
Cabaret singing, performing arts and more will all feature in the live show on Friday including a hip-hop set by young Eddie Elliot who has travelled with the international performers.
Proceeds from the two shows will go to Te Kainga Mental Health.
The first show this Friday will start at 9pm and tickets are $10 for the show only or $25 for dinner and show with dinner starting at 6.30pm.
Cindy and Mika will also be supporting the Samoa Cyclone Evan relief concert on Saturday at Staircase before their second show on December 27 titled the Triple Glitz Show.
For tickets contact 22254 or 54254 and get your party dress ready for a fabulous night of live entertainment.
$2.4m tax on shareholder’s dividend
Wed
19 Dec
The unexpected windfall of $2.4 million in withholding tax was not from an errant taxpayer – rather from a business that paid out a dividend to an overseas shareholder.
Treasurer Andrew Haigh says the money did not come as a result of a long-standing dispute between the government and a taxpayer and Inland Revenue did not have to chase the business to get the tax.
Financial secretary Richard Neves explains the money came from a business that paid a dividend to a shareholder.
“This was not a case of back taxes, it was a tax that was applied on a dividend which had previously been declared after a profit made – which was then repatriated overseas following a business decision.”
He says the business was not trying to avoid paying tax by sending money overseas and this would have been impossible in the circumstances.
“The withholding tax is a tax that is collected on a dividend which is repatriated to an overseas shareholder. A dividend is normally paid after a company has declared a profit and this would be a profit made after taxes have been paid. So it doesn’t avoid that tax.
“Whilst the money sits in a bank in the Cook Islands it earns interest and pays 15 per cent tax on the interest earned. The withholding tax which was applied when these funds were paid to the overseas shareholder [and] then the withholding tax applied to the whole amount.”
Cook Islands News asked Neves whether the Cooks are becoming a ‘tax haven’ and the tax could have been on laundered money.
“I think there is a continual need to inform people that the Cook Islands have moved on from the days where it would have been considered a tax haven or a place where money could be laundered.
“The Cook Islands are not a tax haven, and the money is not the result of money laundering.
The financial world has changed significantly since the terrorist attacks in the United States in 2002 and the need for national tax authorities in many countries to try and collect income being earned by their own taxpayers in foreign jurisdictions.”
The government introduced the 15 per cent withholding tax on interest earned in all accounts in the Cook Islands last year, as a stopgap measure to cover government payments to Toa Petroleum.
The Crown budgeted $586,000 in withholding tax for the 2011-2012 year. The actual revenue received was $3,297,000.
While the amount received to the end of March this year was $439,000, a late payment of withholding tax of $2,466,000 was received in the first week of July.
The withholding tax was expected to raise about $1.3 million each year – so the actual revenue received this year was over double that.
Finance minister Mark Brown has said government would keep its promise to abolish withholding tax in October next year.
Accommodators to provide water safety advice
Wed
19 Dec
The Cook Islands Tourism Industry Council encourages accommodation providers to display swimming safety messages and dispense advice to guests to help prevent visitors from drowning in Cook Islands’ deceptively safe waters.
“There is a need for properties to accurately inform guests with water safety messages, and guests must take it upon themselves to judge the water is safe,” says council president Steve Lyon.
“No one likes to see drowning incidents happen, and they can be prevented.”
He says the new tourism accreditation programme requires accommodation providers to put up signs around pools with water safety messages.
Tourism Corporation destination development director Metua Vaiimene says destination development funds were used to develop the accreditation scheme.
“The voluntary accreditation programme will encompass required standards of business practice that include where applicable water safety training and equipment for local operators.”
He also points out that under the accreditation programme, accommodation providers are required to display an information folder in all rooms which should include safety and security information.
“The ‘ask a local’ strategy is encouraged... all accommodators are encouraged to share this information in an orientation with their guests.”
Vaiimene says he understands the industry council was planning to apply for destination development funding to erect signs at dangerous swimming areas. “The tragic events of last week will no doubt raise the urgency of this project.”
But Lyon says while the council was recently looking at getting funds to put up beach warning signs, a newly-formed committee that has New Zealand High Commissioner John Carter as chair has taken over steering the plan into fruition.
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