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General News

Week ending Wednesday, 13 June, 2012

Current events and entertainment in Rarotonga and the Cook Islands.

Budget 800 pages of ‘verbal diarrhea’
‘Budget fails to stimulate growth in economy’
Shipping relief on the way
Budget not a ‘wish list’ – Brown
$1.7m for ministerial support
Smoke signal in House
MP swears off fizzy drinks
Text number up
Brown defends levy
A million litres of diesel makes Aitutaki’s power
Network outages not widely advertised
SOEs to make $2.1m
Extra 20 fishing licences questioned
Fishing exports offset pearl slump
Budget all ‘show’ – Opposition
Demo MPs call for pa enua job creation
35% of expenditure on public sector salaries
Obituary: Rangi Moeka’a, educator
Village consultation meetings for NGOs
Teariki Matenga campaigns for youth
Firearm ban lifted
Firearms expert heads new programme
Major water works planned
Toa has a temporary licence
First cultural competition for kids
‘Zero hope, bleak possibilities’
CPI on the rise
PM at tripartite meeting
L’Arago courtesy call
Budget breakfast draws questions
Health scholarships discussed with Cuban ambassador
PM launches logo competition
Pa enua funding maintained
‘Nagging queen’ promotes chia
Pa happy with fizzy levy
Budget breaks new ground
$3m more from taxation increase
Expenditure up 2% to $131.5m
Revenue and savings up
Deposits increase despite new tax
Trade deficit
GDP expected to grow by 5%
National debt reducing $14m to $93.6m
Food fest at Avatea
Bryden follows in dad’s footsteps
Tereora students working hard
New Budget has a surplus balance
New openness with Budget
No answer on second ship
New customs legislation ready
Current cold snap not the last
Big day on the River Thames
New scam for Cooks
Nassau fundraiser

Independent MP Norman George, who claims to be back in the Democratic Party, speaking against the Budget in parliament yesterday. 12061216

Teenui-Mapumai MP Norman George says the Budget prioritises the Tourism Authority to the detriment of ”the little people“, in particular the country’s growers.

”This budget is for people on high income, for people earning $30,000 upwards. There is nothing here for the little people of this country There is nothing in this budget to cut the outflow of Cook Islanders leaving for New Zealand and Australia, nothing there to stop the stem of young Cook Islanders leaving this country, nothing at all to encourage them to stay

”Where are the men and women of the Cook Islands going?“

He answered his own question: ”to the mines in Australia, to pick fruit in New Zealand, to the meat works in Australia“.

George asked the minister of finance to explain why the Budget does not provide funding to boost agriculture.

”Why is there nothing for our primary industry? Why is there nothing for agriculture? Why is there nothing for the growers? Agriculture is the little man.“

He lamented that the Budget makes no provision for the people of Atiu and Mangaia to plant taro for export.

”It’s so easy for the government to give Air New Zealand $13.5 millions – why can’t they put aside $3 million for the primary industry?...The Manihiki pearl industry gets $3 million – why can’t at least $300,000be made available to the Atiu and Mangaia taro industry?“

George said the Air New Zealand subsidy privileges the few, not the many.

”Has there been a cost benefit analysis? Who is benefitting from this subsidy, the people of the Cook Islands or a few hotel owners?“

George pressed government to choose one subsidy – either the Los Angeles flight underwrite or the Sydney one – and drop the other.

”What we want is real study of the situation and don’t be completely dominated by the Tourist Authority. Take account of other sectors of the community.“

He moved on with his analysis of the Budget, which he called ”800 pages of verbal (written) diarrhea“ reflecting a $98,000 surplus that is as ”small“ as a ”spit in the bucket“.

”In fact, the reality (is it is) a deficit Budget.“

He expressed concern that the Budget reflects heavy dependence on foreign aid.

”I can see us drifting slowly into dependence on aid finance, an aid-dependent budget. I’m sorry to hear that and I’m sorry to see that.“ He urged government to reduce the amount of vehicles available to public servants, and to look into pricing templates for Air Rarotonga and Air New Zealand.

George’s talk time was extended once, and at the end of two sessions he sat, promising there would be more from him in future. He concluded with a reading of Scripture, and said: ”Thank God we have the Lord to trust in. Can we trust the minister of finance of the Cook Islands? That’s the question I ask.“

• Rachel Reeves

Nukuroa MP Tangata Vavia has said the only sector the Budget actually supports is the pearl industry, and that it fails ”miserably“ to support others.

”My views are similar to (Norman George’s) as we realise there are weak points in the budget,“ Vavia said in Parliament yesterday.

”I was expecting to see policies by government in this Budget that will stimulate and rejuvenate growth in our economy, also policies that will put a dent in the continuous flow of our people to New Zealand (and) policies that will grow and restore confidence in our private sector, policies that will provide hope for those of us who have chosen to stay on the islandand will have no option but to stay and endure the difficult times we are going through.

”I have no complaints about people leaving, I am sure they are leaving for good reasons, they’re leaving so they can earn money to pay their mortgage, (for) better living conditions for their families. I have nothing against that.“

Still, he expressed disappointment in the Budget’s failure to support local industries that will sustain the people who choose to stay.

”I am very disappointed in that this Budget has failed miserably except for one sector of our economy and that is our pearl industry.

”I am not complaining about what government has allocated for our pearl industry, in fact I praise government for giving that allocation to that sector of our economy. I hope government can continue to give this financial assistance to the pearl sector to help them in the years to come if it is necessary.

”I like this action that government has taken, to me it is decisive, purposeful, direct and bold. That’s what I want to see. But government stopped there, put the brake on in this Budget forgot about agriculture.

”They forgot about a huge resource in the islands, in the southern group, in Rarotonga. Government has forgotten to give (financial support) to grow that resource.“

Vavia said government should be investing ”millions“ into agriculture to support the growth of the export industry.

”I understand that if you give peanuts to everyone, you get monkeys, so stop giving pennies to agriculture. Give them the millions (they) deserve.“

He asked the minister of agriculture, Nandi Glassie, to work out the ”kinks in the lines of trade (of export products) to New Zealand“.

”Come back in the next Budget and tell this House your government has put in millions and millions for agriculture. Accept no peanuts, minister. Millions. We need to boost agriculture...this is where our iti tangata rikiriki are.“

Like fellow members of the Opposition, he spoke out against the Air New Zealand subsidies as a ”waste“.

”You need to take stock of this waste of much-needed money,“ he said, noting that the Los Angeles flight underwrite is ”madness“ as North American tourists comprise just 4 percent of the market.

”The country needs this money more than Air New Zealand. Please, in the next Budget, withdraw our subsidy on the Air New Zealand flight from LA and invest three-quarters of that money, our money, into our agriculture sector.“

• Rachel Reeves

Deputy Prime Minister Tom Marsters, whose portfolios include transport, says Tapi Taio’s new boat is on the way.

He said he has been in discussion with Taio Shipping, who indicated their plan is still to source a second ship.

Marsters told Parliament that the Samoa freighter Northern Star was ”only a temporary measure until Tapi Taio’s boat was in place“.

”I’m still hopeful that Tapi Taio’s boat would be in place because I feel that if Tapi’s system is able to meet the local demands I think it’s only right that we should support a local initiative first.

”Maybe I should take the time to discuss with Tapi again the position of his operation and if there’s any doubt as to whether he can meet the demands of the country, then maybe I should take the next step.“

He assured Parliament that Taio’s new boat would be sufficient for servicing the needs of the northern group.

”I can assure you that the specifications of the new boat for Tapi were adequate – with the support of the smaller boat (the second vessel) would’ve been adequate for servicing our local needs.“

Cabinet minister Teariki Heather supplemented his answer with the assurance that Te Kukupa has departed for the northern group, carrying cargo.

He added: ”by next week we should be expecting a warship from New Zealand with 60,000 litres of fuel on board and that fuel is expected to be transferred for storage on Penrhyn“.

• Rachel Reeves

Finance Minister Mark Brown speaking in parliament yesterday. 12061221

Finance minister Mark Brown has dismissed Opposition leader Wilkie Rasmussen’s allegations that his Budget was ”for show“ and ”about appearances“.

He notes that Budget Book 3 is not a ”wish list“, but instead sets out a schedule of projects that are ”definitely“ funded.

”The process we’ve done is outlined exactly the projects we’re going to carry out whereas in the past there’s been nothing like that,“ Brown said.

He noted that his government salvaged the $3 million Pukapuka cyclone shelter project, which was at a standstill previously.

”Because of the budget systems they (the Demo government) had the government was in danger of losing that grant fund. We salvaged it and two months ago we opened that cyclone shelter, and the contract went to a local company.“

Another example he cited was the Palmerston clinic project, funding for which was approved in 2007 and then ”floated around in various Budgets for five years“.

”We grabbed it, re-appropriated it, and the contract has now been signed with a local company and the clinic will be up and running.“

The final example he supplied was the replacement of the number one shed at the Avatiu harbour, a $1 million building that will be used for storage and functions, and which will allow Ports Authority to generate revenue. ”The point I’m trying to make is everything in that capital book is funded despite the claims by the Opposition that it’s a wish list. Everything there we’ve secured funding (for)...and this is much more transparent than in the past.“

Brown noted that the Demos never got Te One Kura, an agriculture project, off the ground because they were unable to source funding even after they had publicised the initiative.

”The fact is that they designed this project to be funded through FAO but when we went to check and find out from FAO what funding there was none. Obviously the systems they (the Demos) had set in place (engendered) a Budget of smoke and mirrors – for show. What we’re demonstrating actually produces results.“

• Rachel Reeves

The Budget reduces funds available for ministerial support offices by $3000, resulting in a net appropriation of $1.79 million a year.

”Over time the Ministerial Support Offices appropriation has increased in amounts and staffing numbers to the point where the appropriations are fiscally unsustainable,“ reads Budget Book 1. ”The Ministerial Support Offices have undertaken a budget reduction in operating amounting to $0.003 million.“

In total, ministerial support offices receive $1.79 million per annum. The prime minister’s office ranks highest, with a $375,250 appropriation, followed by the deputy prime minister’s office ($310,000) and Minister Mark Brown’s office ($285,000).

Ministers Heather, Glassie and Bishop, and the office of opposition leader Wilkie Rasmussen, receive $205,000 per annum each.

Currently there are 24 employees working in ministerial support offices. One position is vacant.

• Rachel Reeves

Tupapa-Maraerenga MP George Angene has said that while he supports the Budget, he sympathises with smokers over the increase in the import levy for tobacco.

”I am taking a look around this house and I believe I am the only smoker and I am encouraging my colleagues to smoke so that you will be strong like me. I just want to joke about this,“ he said.

”I sympathise with our people, particularly those in the outer islands, more so those in the northern group because once we implement the increases in tobacco it will impact on them.“

He told his constituents in Tupapa-Maraerenga: ”If you want to continue smoking, come to me. I will buy your cigarettes.“

Regardless, he said he is in full support of passing the Appropriation Bill 2012.

”This government has managed to achieve a lot of good work during the short time we have been (in office),“ he said.

Angene told the House he supports the Budget because it makes provision for necessary capital works, like the installation of streetlights in Tupapa-Maraerenga. He said work will begin within three weeks, and thanked Minister of Finance Mark Brown for granting his funding request.

He then asked government to increase funding for his village, as it contains the highest number of constituents in the Cook Islands.

”I’d like to ask the minister to consider this matter carefully.“

He asked government to re-structure its funding for the beautification programme.

”Don’t give the money to those contractors, give it to me and I will do the work.“

He concluded by requesting a ”small vehicle to help my people in Tupapa-Maraerenga“.

• Rachel Reeves

Aitutaki Member of Parliament Mona Ioane has praised the Budget for addressing the needs of people in the pa enua.

He said Budget Book 3, which outlines all government’s funded capital works over the next three years, is his ”favourite book“.

”This is my favourite book because in there, there is a lot about the outer islandsI am very happy because the finance minister did not forget us, the outer islands.

”Perhaps he was fed up with us going into this office to remind him of these things.“

He said he is pleased that the government is keeping its promises to Araura Enua.

”What government promised is coming into reality and our visions and dreams in Araura is actually happening,“ he said, adding that ”it is only right that the minister of finance is praised as well as the staff who work with him“.

Ioane also applauded the government for generating extra revenue through the imposition of import levies on fizzy drinks, alcohol and tobacco.

He took the opportunity to voice support for Pa Marie Ariki’s mission to effect lasting change in the way her people eat.

”I would also like to commend our ariki vaine Pa who has put up a challenge to prevent diabetes,“ he said. He praised the fizzy drink import levy increase in particular.

”I think this is good and we should turn to drinking plain water or coconut with regards to the nu you just go and pick and drink from that but with fizzy drinks you spend a lot of money to buy it and then in the end you get sick.“

Ioane vowed not to drink fizzy drinks anymore.

• Rachel Reeves

A new youth counselling textline is due to start working today – two weeks after the launch of free youth helpline 0800 HELP.

The service is run by Youthline New Zealand and is a free and confidential support network that troubled youth can ring – and now text – for advice.

The number to text for help is 4357.

Telecom CI representative Brendan Welsh said the 4357 number would be tested by Youthline yesterday evening, and ”should be“ up and running today.

The need for such a helpline came about after a spate of suicides on the island in the last year. The free calling and texting number works nationwide from all islands in the country.

The helpline is supported by Youthline NZ through the provision of the volunteers and professionals who have been trained to receive the calls from the Cooks and respond accordingly.

• Calida Smylie

Finance minister Mark Brown hit back yesterday at Opposition leader Wilkie Rasmussen’s criticism of the fizzy drink import levy.

Rasmussen has been vocal in his attack of the Budget, which reflects a $98,000 surplus that he believes is the result of number-shifting rather than wise financial planning.

On Monday he alleged that by enacting import levies on alcohol, tobacco and fizzy drinks, the government is sourcing its extra revenue from the little people.

Brown yesterday commented on Rasmussen’s critcism of the increased import levy on fizzy drinks by saying the opposition ignores the fact that 85 per cent of Cook Islands mortality is due to the effects of non-communicable diseases (NCDs).

”A big contributor to NCDs is high consumption of processed fats and sugars. Imported fizzy drinks make up the large volume of sugars consumed by young kids. These drinks are designed to hook kids onto a lifelong addiction similar to cigarettes,“ Brown says.

”The levy is designed to reduce consumption. It is designed so that kids and parents see fizzies as an occasional treat, not a daily drink.“

Brown says the opposition seems intent on scoring ”cheap political points“ rather than addressing the health threat of people dying from the effects of NCDs.

”The opposition act like Nero playing the violin while Rome is burning down around their ears.“

The finance minister points out if people do not want to pay a higher price they can drink locally produced fizzy drinks, which do not attract the increased levy.

• Calida Smylie

Aitutaki power station’s generators need a new diesel supply. 12061121

The Aitutaki Power Supply is currently calling for tenders to supply diesel to the power station on Aitutaki.

The contract to supply Aitutaki power station (APS) with diesel has been with Reef Bulk Fuel of Auckland for the last 12 years. Their latest three year contract is about to expire, leaving the way clear for other fuel suppliers to try to get the contract.

APS’s yearly fuel consumption is just less than one million litres.

APS is arguably the cleanest and safest power station in the country, and manager Long Tuiravakai explains this is due to a major refurbishment in late 2009.

This included a power station building structure upgrade, the installation of three 650 kilowatt Cummins generators, and new control panels and electronic generator controllers.

”With the new generators and controllers installed, there is minimum personnel involved in the daily operation as the starting and shutdown of generators is all computer controlled,“ said Tuiravakai. ”With these new versions of generators, there are hardly any oil leaks – and if there is one there is an oil catchment to contain the spillage.“

Aitutaki Power Supply is a Cook Islands Investment Corporation delegated board responsible for the day to day operations management of the power station.

Tenders close on June 14 at 2pm. For further information, email power@aitutaki.net.ck or phone 31033.

• Calida Smylie

Planned network outages occurred around Rarotonga at the weekend, but Telecom gave only some businesses written warning. The outages, which occurred because technicians were doing maintenance work, affected mobiles in the Avarua cell site area from the Cook Islands Motor Centre to the Avarua CICC church between 2pm and 5pm on Saturday.

There was also no television and FM radio coverage across the whole of Rarotonga between 2pm and 5pm on Saturday. On Monday, all national and international phone-calls from mobiles and landlines did not work between 2am and 3am.

The Avarua cell site area maintenance took an hour longer than planned. Asked why they only informed select businesses that there was going to be network problems and why they did not inform the public through a notice in the newspaper, Telecom’s sales and marketing manager Damien Beddoes said the public was notified by the normal process, which is through television. Key infrastructure businesses were notified separately.

He also points out that emergency services were not affected by the outages, as they have radio network services they can use.

• Calida Smylie

State-owned enterprises are due to generate $2.1 million in dividends for this financial year.

This is $1 million less than the $3.1 million that were forecasted for the last financial year. It appears as a decrease because, according to Budget Book 1, of a one-off dividend paid in by Te Aponga Uira (TAU) in 2011/12.

This year the Cook Islands Investment Corporation (CIIC) will conduct a state-owned enterprise reform programme that will result in the development of a policy ”to provide both government and SOE’s a transparency in terms of requirements around dividend levels“.

At present, each SOE sets its own dividend payment levels.

The Airport Authority has said it will not be providing a dividend for this year because it is still repaying debts it incurred to fund the upgrade of the airport.

It has also indicated there will be no dividends paid through to the 2014/15 financial year.

Similarly, Ports Authority will not be furnishing a dividend – right through to 2014/15 – because it is repaying the Asian Development Bank for monies lent toward the upgrade of the Avatiu harbour.

Bank of the Cook Islands expects to increase its dividend (from $381,000 to $440,000), and Telecom Cook Islands says it will be providing a dividend of $1.15 million this year, down from $1.3 million last year.

Banana Court, also a state-owned enterprise, expects to pay out a dividend of $10,000 per annum. Punanga Nui paid out $30,000 last year but does not expect to pay another dividend until 2014/15.

All up, growth in paid dividends is down 31 percent this year from last.

• Rachel Reeves

Minister of Marine Resources Teina Bishop says no additional exploratory fishing licences have been issued to overseas interests.

Budget 2012 contains a projection that 20 ”additional“ licences – to be issued this financial year – will generate $2.4 million in revenue for the country.

Cook Islands News reported the fact accordingly, as marine resources regulations cap the number of allowable exploratory licences at 20.

Opposition leader Wilkie Rasmussen asked Bishop in Parliament yesterday whether the ministry intended to issue additional licences.

”The number of licences is actually regulated in our regulations,“ Bishop said. ”There are no extra licences to be issued as per alluded in the Cook Islands News. The 20 licences that people are talking about today is the exploratory licences that has been explained over and over again and out of that 20 only 17 have been issued so far.“

Rasmussen asked him to explain ‘exploratory’ in this context, alleging that ”the term has made irrelevant the provisions in the Marine Resources Act in relation to fishing, and particular types of fishing, in our waters because of the broadness and uncertainty of what is to be explored out there“.

Bishop responded: ”The term exploratory is quite simple – it comes from the word explore. You go and have a lookThere is only one fishery that we have established and that is the longline on albacore so what we are exploring is the swordfish and the bigeye. This is a programme that has been approved by the public which has been taken to Cabinet.“

The third ‘area of exploration’ was meant to be purse seining, but Cabinet has yet to ”touch on that“, he said. Under the current exploratory regime, 17 Chinese vessels are licensed to fish bigeye and swordfish in Cook Islands waters.

Bishop added that the exploratory fishing programme does not contradict marine regulations.

”This exploratory programme was brought to Cabinet by our ministry with the help and support of the Forum Fisheries Agency and I believe their interpretation with regards to the Act is in order.“

• Rachel Reeves

Though the black pearl industry is under-performing, the Ministry of Marine Resources (MMR) expects its revenue to increase by 4 percent this year due to increases in fisheries exports.

Thereafter, fisheries exports are expected to increase by 5 percent per annum.

For the 2010/11 financial year the marine sector was expected to make $4.9 million in exports but the pearl industry’s shortfalls meant actual profits were closer to $3.7 million.

The domestic industry absorbs about 30 percent of the total number of pearls produced (between 100,000 and 150,000 pearls), while exports continue to decline. Pearl exports peaked in 2000 at $18 million but in 2010/11 were down to $600,000 per annum – the lowest recorded figure since.

It was expected that $1.4 million worth of pearls would be exported in 2011, but the actual figure suggests that either more pearls are being sold domestically or pearls are being stockpiled for future sale.

In Manihiki about 894,000 pearl shells are being farmed, which should result in $4.7 million being produced in 2014/15. Given that exports are only expected to reach $1.2 million, it is ”unreasonable“ to assume that the remainder – $3.5 million – will be sold domestically.

”New markets must be found to ensure that farmer’s harvests are being sold in a timely fashion,“ reads the summary in Budget Book 1.

Government has invested $2 million and New Zealand Aid Programme $3 million to stimulate the industry’s growth, and the Ministry of Finance and Economic Management expects results will be evident 18 months from the time of seeding – meaning the pearls will be marketable in 2013.

Fisheries projections, however, offset the pearl industry’s shortfalls.

Two fleets are currently servicing the Cook Islands – in 2010 there were 34 vessels altogether and last year, 43.

The northern fleet offloads the majority of its catch in Pago Pago, and distributes the remainder to markets in Japan, Thailand and Brazil, whereas the southern fleet services the local market on Rarotonga and exports to Japan, New Zealand and the US.

Last year the northern fleet reeled in 8200 tonnes valued at $24.2 million, $16.8m of that value in albacore tuna. The southern fleet – comprising vessels based out of Rarotonga – caught 106.5 tonnes valued at $1.5m on the local market.

The Cook Islands started exporting fresh fish last November.

In the second quarter of the last financial year, 6.6 tonnes were sent to markets in New Zealand and Japan, generating $98,800. In the following quarters 8.5 tonnes were exported to New Zealand and the US, valued at $114,270. Exports are due to increase around 20 tonnes per quarter next year, generating around a quarter of a million dollars during each.

MMR expects the value of the country’s fisheries to increase as fleets are being encouraged to process and export their catch from Rarotonga. It is expected that by the time the harbour redevelopment is complete, high-quality semi-super frozen fish will become one of the country’s major export commodities.

There are also plans to develop an export-processing scheme on Penrhyn by 2014/15.

• Rachel Reeves

Opposition leader Wilkie Rasmussen during tabling of the Budget in Parliament last week. 12060746

Opposition leader Wilkie Rasmussen has said Budget 2012 is ”for show“ and ”about appearances only, (not) substance“.

He opened the Budget debate in Parliament yesterday, framing his speech as a ”right of reply“.

”The Budget that was presented by the minister of finance last Thursday with a small surplus of $98,000 I describe as an appearance budget. It’s a show appropriation.“

He commended the team at the Ministry of Finance, noting that his attack was not directed at them but at the political level, but said he believes government has shifted numbers around within the Budget to cover the reality of a national deficit.

”I make this allegation against the government (that) this is just figures moved around so it would balance the Budget but the reality is quite different.“

He alleged that money has been leached from existing, pre-approved projects to cover over an apparent deficit.

Shipping

Rasmussen noted that $100,000 was allocated for the one-off hiring of Northern Star, a Samoan ship, but that outer islands shipping services received no further funding.

”I am saddened to say there are people in the outer islands, in the northern and southern group, crying for shipping and there is no funding in this Budget to support this.“

Rasmussen said shipping is an urgent issue, as some islands go for three or four months without fuel or rice.

”The islands have to fend for themselves by contracting fishing boats to sometimes stop over and bring them fresh supplies.“

He addressed the $100,000 subsidy to a Samoan freighter, owned by a company to which northern group islanders paid money. He said they never received their goods, and asked whether the POBOC reimburses them or subsidises the service.

Capital expenditure

Rasmussen accused government of taking $3 million from pre-approved projects and re-appropriating that funding into the Budget.

He demanded to know ”what happened“ to those projects.

”I know implementation has always been a problem with successive governments but what happens to these projects? Do they get washed away, do we forget about them?“

He called on the government to implement pipeline projects as a means of creating jobs for contractors.

Loans

Rasmussen talked at length about the loans government is currently paying back. He noted that the forthcoming overhaul of Rarotonga’s water and sanitation systems – estimated to cost a total of about $60 million – will be funded with outside money.

He said that a total of $57 million has been budgeted for capital works this year, and that funding will come from the Asian Development Bank and overseas development assistance grants and loans.

”Sounds great from the outside but even with ODA grants that aren’t refunded we are still look at racking up a huge debt for the Cook Islands.“

He noted that capital projects being initiated within the next three years are expected to cost a total of $280m, but that over the next three years government intends to spend $162m on capital projects.

”One must ask the most obvious question – how are they going to afford the payment of these loans? How on earth?

”The debt levels this country is taking on will exceed our ability to service it and it will be an extremely heavy burden for all of us living in this country.“

He said that if government keeps taking loans, subsequent budgets will be even trickier to balance.

”Government openly admits this Budget was difficult to balance. It’s going to get worse in the next Budget or in following years.“

Taxation

Rasmussen says that by increasing taxes to create extra revenue, government is evading the country’s fundamental problems.

He noted that in 1998 the country’s taxation revenue was $34m and that two years ago it was $80m.

”This year it’s $91m and still we are having problems balancing the books and still they’re having problems repaying our loans because we never put in the fundamental structures to address those problems.“

He said that as time marches on, ”the amount of money we continue to loan and borrow will increase“, and that government does not ”come anywhere near having sufficient funds to repay those loans“.

During his extended speech he said the withholding tax was a miscalculated effort to generate revenue, as it has not yet resulted in the expected $1 million, and attacked the logic behind the recently-announced import levies.

”Withholding tax, levies on alcohol, levies on fizzy drinks, levies on tobacco, departure tax – who the heck are they targeting? “

He said the people who will feel the impact of the aforesaid measures are the little people, the mamas and the papas and the working people who earn ”a maximum of $15,000“.

”I am going to level this accusation at this government: that they are experimenting with the livelihoods of our people.“

He recalled that his government in 2006 abolished all levies save the ‘big four’ (alcohol, tobacco, motor vehicles and fuel) in an effort to ”make consumer products and food cheaper“, and encouraged government to consider the same.

He said it is the consumers who will bear the brunt of the burden, and compelled government to ”find some way to relieve that pressure on those people who are going to pay“.

”That’s the sad reality of an uncaring budget, Mr Speaker, by this uncaring government.“

Air New Zealand subsidy

Rasmussen said government should be focusing its attention on reducing the subsidy it pays to Air New Zealand, which he called ”exorbitant“.

He figured that if Air New Zealand’s profit last year was $34m, and the Cook Islands is paying $12m in underwrite fees, government is contributing to a third of the company’s revenue.

”There is no plan by this government to reduce that, nothing at all.“

Rasmussen finished by urging the government to ”re-evaluate the quality of (its) spending“.

• Rachel Reeves

Oneroa Member of Parliament Winton Pickering raised the dormant issue of outer islands agriculture project Te One Kura in Parliament yesterday.

He asked whether government intends to increase funding for the project as a means of pa enua job creation.

”The people of Mangaia and Atiu are all leaving. I can tell you that todayWe have a serious problem with our population in (the pa enua). They’ve got no jobs.“

Associate minister of agriculture Kiriau Turepu replied that he has held consultations with Mangaia and Atiu, and that the former was most interested in sustainably farming and exporting taro.

Minister of agriculture Nandi Glassie replied that outer islands crops are a matter of priority.

”The first thing is the One Kura programme has identified the issues in the outer islands. The second is the One Kura programme didn’t provide the solution to the issues. The third is that we are working very closely with the Food and Agriculture Organization to see what are the priority crops as suggested by the different islands,“ he said.

”Once (those are) confirmed it will appear in the supplementary budget.“

Ruaau MP William ‘Smiley’ Heather made it clear he is committed to rekindling the agriculture project Te One Kura in memory of the late Robert Wigmore.

”I believe the vision of Papa Wigmore will be a reality in the near future,“ he said.

He urged government to concentrate its attention more pointedly on agriculture, which from the 1950s to the 1980s was the backbone of the Cook Islands economy.

”I am inviting government today to come to the assistance of the planters,“ he said in Cook Islands Maori.

He asked government to allocate more money to quarantine to prevent pests from invading Cook Islands flora.

He pleaded with minister Glassie to divert more funding to planting projects in the pa enua, noting that if government wants to arrest depopulation in the outer islands, it needs to create jobs and profit-earning opportunities there.

”They’re leaving in droves, they need assistance from us.“

• Rachel Reeves

Thirty-five percent of the government’s expenditures relate to employee salaries.

The public service includes ministries, outer island administrations, Crown agencies (Crown Law, Parliament, Police, Office of the Ombudsman, Audit, Business and Trade Investment Board, Ministry of Environment, Cook Islands Tourism Corporation, Head of State, Financial Intelligence Unit, Cook Islands Investment Corporation, Cook Islands National Superfund, Cook Islands Pearl Authority, Financial Services Development Authority) and ministerial support offices.

As of April this year there were 1726 people working for government – 1043 in ministries, 401 in island administrations, 258 in Crown agencies and 24 in ministerial support offices.

Of those, 493 were providing ‘frontline services’, or services directly to the community – 250 were teachers, 116 were nurses, 26 medical officers and 101 sworn police officers.

Fifty-four percent of the public service was male and 26 percent female.

As of mid-May, the Crown was paying out $44.7 million to payees on the Ministry of Finance and Economic Management (MFEM) payroll.

Thirty-four percent of employees were making under $15,000, 37 percent under $30,000 and 22 percent under $50,000.

Five percent were making between $50,001 and $75,000, and one percent was making between $75,001 and $100,000. One percent was earning more than $100,001.

There were 104 non-Cook Islanders without permanent residency employed in the public service as of April. Most were teachers and nurses, as 49 were employed by the Ministry of Education and 32 were employed at the Ministry of Health. The others were employed by Crown Law (1), the Financial Supervisory Commission (2), Marine Resources (4), the Ministry of Finance and Economic Management (7), the National Human Resources Department (1), the Office of the Public Service Commissioner (1) and the Tourism Corporation (1).

Thirty-one percent of people with this residency status were holding senior level jobs.

As of April there were 55 vacant positions across government, the majority in ministries. There were 33 vacant positions in public service ministries, seven in island administrations, 14 in Crown agencies, and one in ministerial support offices.

By discontinuing funding for those vacancies, the government expects to save 2 percent in compensation expenditures over this financial year.

• Rachel Reeves

Rangitukua Moeka’a in 1995 with his grandchildren. 12061119

Rangitukua Moeka’a (3rd from right) with his New Plymouth Boys High School first XI team mates in 1953. 12061118

Rangitukua Moeka’a – the first Cook Islander to hold the post of director of education – passed away in New Zealand last week after a long illness and was laid to rest on Rarotonga at the weekend.

Rangitukua Moeka’a replaced former director Russell Gerard in 1972, at a time when public service positions were beginning to be localised.

Born on Mauke in 1936, Rangi, as he was more commonly known, was awarded a junior scholarship to attend school in New Zealand.

As a 12-year old, he left Mauke in December 1948 on board the Tiare Taporo on a mini-adventure which saw the boat go to Mangaia, dodge a hurricane, and then sail on to Manuae and then Aitutaki, where he missed his flight to Rarotonga. He stayed with an aunty for almost a month before eventually flying to Rarotonga in early January to get ready to go to New Zealand.

There were two other scholarships awarded that year – NikauTangaroa, who went to Wanganui, and Mere Ruaine (later Paitai who was awarded a senior scholarship).

Rangi attended New Plymouth Boys’ High School, while Mere attended NPBHS’s sister school. Other Cook Islanders who were at Boys’ High at the time were Teariki Pera, Tere Mataio and Takai Toka.

Rangi struggled with the language at first – knowing only the words ‘yes’ and ‘no’ – and he studied Latin which helped him with his English.

However, he excelled in cricket and rugby, making the school’s 1st XV and 1st XI in his last two years at school.

In his six years at New Plymouth, he only returned to the Cook Islands twice – managing only a few hours on Mauke at the beginning of 1955.

He went to Teachers’ Training College in Epsom in 1955 and 1956, and did his probationary year at Parnell Primary in Auckland.

While training to become a teacher, he captained the teachers senior rugby side, and then played for Grammar Schools’ Old Boys team in 1957.

He was selected for the Auckland Colts side and also for the Barbarians for a couple of charity fundraiser games for injured players.

After returning to Rarotonga, he began teaching the special classes at Avarua in 1958, alongside Maeva Raemaki Karati and Beverly Muir. He then moved to Nikao School in 1959, then to Tereora College the same year to teach maths, New Zealand Maori and English.

He played rugby and cricket for Tupapa and after marrying Matatapu O Tekonini Tautu, from Ruatonga on November 19, 1960, he played rugby for Avatiu.

Rangi was also involved with the Life Boys and Boys’ Brigade at this time.

He taught at Tereora until the end of 1962 and then got another scholarship to study at Auckland University in New Zealand in 1963.

He completed an arts degree in 1966 and started on his masters but had to return home in early 1968. He taught at Tereora College under principal Gerald Falloon until around August 1971 when he was transferred to become chief inspector of schools. He became the education director in mid 1972.

While at Tereora, he coached its rugby teams for the annual college fixture against Aitutaki, and also coached the school’s cricket side. He also assisted with the school’s cultural group’s performance at the annual Constitution festivities in the late 1960s when Tereora took out the Air New Zealand trophy.

At the end of 1974 he headed the new anthropological division at Takamoa, which came under the Education minister.

He went back to the classroom to relieve as principal at Titikaveka in 1982-83, then transferred to the Education Department for two years before taking up a teaching post at training college from 1985 to 1989.

From the late 1980s and during the period from 1990 to 1994 when he worked for the education ministry, he helped professor Bruce Biggs with work on the Buse/Taringa Maori dictionary.

While he was at training college, he was also one of those co-opted to a team working on the update of the Bibilia Tapu.

Some of those who worked on the Bible project from 1985 included Vainerere Tangatapoto, William Estall, Tangata (Man) Tuarae, Rev Tangimetua Tangatatutai, Rev Aratangi and Father Damien.

When Rangi left for New Zealand in 1995 to take up a lectureship in Cook Islands Maori at Auckland University, Father Damien spearheaded the effort to complete the update in Rarotonga. Recently Rangi was involved in the proofing stage which is being currently managed out of Auckland.

Unfortunately because of kidney failure and the need for him to be put on dialysis, he had to step down from his university position in 2002. He had a number of operations due to his medical condition. A couple of doctors complimented his willpower and perseverance during his 12-year-long battle with kidney failure. However, this did not dampen his mood and he kept himself busy writing, proofing or editing other people’s written works. He was an active member of the Mangere PIPC church and the Akatokamanava Culture Group in Auckland when he was able to attend meetings or functions. He also composed ute and imene tuki for various cultural and religious events.

Rangi served as a deacon in the village of Ruatonga on Rarotonga, and his input on cultural matters was sought after by both Maori and papa’a alike, here and overseas. He attended a number of cultural-related workshops and conferences around the region which helped him in his work in this area.

While he was awarded the Queen’s Service Medal for his contribution to the community in New Zealand in 2004, it could be said that his influence – especially in the area of the Maori language – was also felt back home in the Cook Islands.

Rangi was laid to rest beside his wife at the Ngati Anautoa burial grounds in Ruatonga.

He is survived by his four children – Rangitukua (Bobby), Teremoana, Vaitoti (George) and Myra Pukaia, 13 grandchildren – Rangitukua, Teariki Patua, Matatapu, TePou O Rongo, Tekura, Rima’ati, Jane, Seline, Gemma Vairoa, Dawn, Eva-Moana, Te-Mata-O-Te-Akarua and Edward; and six great-grand-daughters – Sienna, Faith, Hope, Tiana-Brooke, Castella Terita and Taputurangi.

Aere ra – rest in peace.

• Moana Moeka’a

Vaka Puaikura executive committee member Keu Mataroa, Hon Mark Brown, CICSO president Ngara Katuke, vaka Takitumu executive committee Vaitoti Tupa, CICSO general secretary Lydia Sijp. 12061112

Cook Islands Civil Society Organisations are inviting members of the public to attend three village consultations this week and next.

Cook Islands Civil Society Organisations (CICSO) is the national umbrella body which manages all local and regional non-government organisations (NGOs).

Discussions will be held on what sort of work CICSO covers, plus a wide range of national issues such as climate change, deep sea mining, land rights, human rights, youth suicide, and the elderly. The consultations will also be a chance for community members to have their say on the upcoming Pacific Regional Forum in August.

The meetings, being held in each vaka, are open to all who would like to attend. In particular CICSO invites all the executive members from NGOs such as community-based groups, sports groups, school PTAs, dance teams, church groups, Girls and Boys Brigade, Girl Guides, Pathfinders, Scouts, women’s fellowship groups, Sunday schools, Christian youth groups, business sectors and traditional leaders.

Minister for CICSO Mark Brown will give the opening address, and there will be guest speakers as well as a presentation from CICSO committee members.

CICSO wants to hold the meetings in order to improve working relationships with NGOs, and to promote their future work plans. They also want to survey NGO members to find out their opinions on what needs to be done.

CICSO, previously CIANGO (Cook Islands Association Non-Governmental Organisation), received financial support from the NZ Aid programme to carry out these village consultations.

• Calida Smylie

Teariki Matenga with his family (from left) son Teariki (15), grandson Anapa (5), wife Margaret, eldest daughter Luciana (29), youngest daughter Kara (16) and second eldest daughter Ani (inset) who is currently studying in New Zealand. 12061116

Teariki Matenga believes giving youth an alternative future in trades is the way to stop Titikaveka’s crime problem.

The Cook Island Party (CIP) candidate is busy campaigning for the Titikaveka seat in the June 21 by-election.

His campaign deals with a number of issues, including agriculture and social welfare, but youth is a focus.

”My major issue is the theft in Titikaveka. Holiday accommodation is the target, and kids are the problem. They come from broken homes and they have a track record of re-offending.

There’s no security or care for them at home,“ says Matenga.

But he feels he has a solution to the problem, by identifying and providing a safe place for the youth to go.

He suggests building on the initiative from Youth with a Mission, a youth rehabilitation programme with its roots in religion. ”That’s the sort of home I want to be providing for these kids. Give them an opportunity, give them some direction, and put some sense back into the little brains of theirs.“

The next step is to push youth in education and get them trained in a trade. Matenga says there is a deficiency in trades in the Cook Islands that is bigger than everyone thinks, and training youth in specific trades would have a doubly positive outcome.

”There’s a lot of opinion on how to deal with these kids, people say ‘just chuck them in jail’. But that turns them into hardened criminals at the end of the day.“

But involving them in trades training creates an ”alternative pathway“ for their future. ”Then they would be occupied in something productive rather than roaming the streets.“

Matenga’s own family is heavily involved in sport. His wife is former Silver Fern Margharet Matenga (nee Kamana) and his four children all play sport. Eldest daughter Luciana is also a talented netball player, as is second daughter Ani, who is studying accounting and economics at Waikato University. His youngest children are studying at Titikaveka College.

Matenga himself both plays and coaches sport in the community.

”My face has been in the community since day one. My credibility is stamped in my past.“

This includes instigating the Takituma Lagoon Project and fighting for the Muri sanitation upgrade for four years.

Local agriculture is another concern of Matenga’s, in particular the noni industry, which he says is on the verge of collapse. ”Lots of producers haven’t been paid here for a very long time, and there’s no guarantee these people will get paid,“ he worries.

”If I get voted in, maybe I can convince the government to assist in this area. The noni collapse will put a huge dent in our export industry, and the export market should be a priority.

Matenga was just about to get involved in the agriculture industry himself when CIP asked him to stand in the by-election.

”It was never my intention to get back into politics. I wanted to go to the Outer Islands and start a vanilla plantation,“ he says.

”But I said to my wife, if we go into vanilla planting the only people who benefit are our family. But if I go into politics, all the people of Titikaveka will benefit.“

On asked what it is like campaigning against his sister, Democratic candidate Selina Napa, Matenga is diplomatic. ”Politics is politics and I just want to keep it at that. Life goes on.“

But he went on to say, ”I believe I am the best candidate and it helped that CIP put their trust in me.“

”To vote for someone other than me is voting for the opposition. You can be verbal in opposition but nothing will get done. In my position, the government is already formed, which I believe is a positive thing for Titikaveka.“

Matenga points out that Titikaveka is traditionally a strong Democratic Party seat, and it will take a ”huge effort“ to try and turn that around.

”Mr Robert Wigmore was certainly a man of substance. He was liked by the people and he looked after them. Now he is gone, the obvious choice is someone like me, but I’m in the CIP party.“

He says the campaign is going ”as well as can be expected“, and so far he’s found he has good support. ”There is still time to convince people to vote for me.“

Most of all, Matenga wants to carry the voice of Titikaveka into government.

”All my life I’ve been involved in the community,“ he says.

”And everything goes at 100 miles an hour in this village.“

• Calida Smylie

Royal New Zealand Air Force corporal Tamati Anaru inspects an unloaded Cook Islands police-issue .223 rifle at the Avarua police station during a firearm amnesty in 2011. 11062020

The Ministry of Police has lifted a blanket ban on importing firearms, despite no changes to firearm laws.

The ban, which has been in place since the start of 2011, was on police recommendation as they wanted to review outdated legislation – the 1954 Firearms Act.

At police commissioner Maara Tetava’s request the ban has now been lifted, meaning firearms can once again be brought into the country. But the legislation surrounding firearms remains the same.

However, some processes to do with firearm importation have been tightened.

People wanting to bring firearms into the country must now undertake a firearms training course, in addition to the usual applications and due diligence vetting process carried out by the police.

In the past, between five to ten guns were imported a year. A firearm amnesty held in June last year helped police to update their records on gun ownership. Police estimate there are 2000 firearms in the Cook Islands, one for about every nine people in the country. Tetava points out this is ”too many“ for a small country.

”We’re very fortunate that we have not had too many firearms offences. This is either due to luck or people being careful around firearms.“

Two incidents stick out in his mind. One was in Pukapuka in 2007, when school principal Vaopaaki Tearetoa, his wife Ngatere and Kiritireo Mataora Puia were shot by 19-year-old Iorama Ngataua. There have also been a small number of armed robberies in Rarotonga, including a spate in 2005 when three separate armed robberies were carried out in two months.

”It’s tougher now,“ says Tetava of the licensing process, ”but in the long-term the law still needs to be changed.“

The Firearms Act is on the Crown Law list of legislation that needs an overhaul, where it has been identified as a priority.

One thing the police wants looked at is firearm security. Firearm security regulations are not as strict here as in New Zealand and Australia, where firearm owners are required to keep their guns in securely locked places.

Tetava says even if they cannot get a law requiring people to keep their firearms in securely locked cabinets – which cost between $500 and $1000 – they would like to introduce other measures such as locks for the firearm triggers.

”We want the changes in as soon as possible, but it depends on the drafting schedule at Crown Law. We also need to look at models from other countries to see what works.“

Tetava would like to see a firearm law change within a year.

• Calida Smylie

Firearms officer Sergeant Apolo Miria. 07071803

The outdated firearms act may not have got its much-needed overhaul, but gun safety procedures are at the forefront of a new firearms programme run by police.

The Police Department has recently lifted a ban on the importation of firearms into the country, but procedures surrounding imports have been tightened.

In addition to usual applications and due diligence vetting process carried out by the police, people wanting to bring firearms into the country must now undertake a firearms training course.

This course is run by qualified armourer Acting Sergeant Apolo Miria, who came back from New Zealand a month ago in order to supervise the courses.

He has considerable firearm experience, including two years in RAMSI (Regional Assistance Mission to the Solomon Islands) as part of the prime minister’s close protection team, and training with the New Zealand navy.

On the course, which is done on an individual basis as part of the permit-granting process, the applicant will learn how to properly use a gun, safety measures, and how to clean their gun.

While this firearms training course will make it harder for people to obtain a licence, and will hopefully stop accidents from happening, commissioner Maara Tetava acknowledges the need to get updated firearms legislation.

He’d like to get the act reviewed sometime in the next year.

”It’s about slowly chipping away at the issue,“ said Tetava, ”and it’s really all about safety.“

Tetava says the firearms importation ban was lifted for ”genuine reasons“, such as animal control on the outer islands. Atiu and Mangaia both have problems with wild pigs destroying plantations.

• Calida Smylie

By 2015, all Rarotonga taps should be safe to drink from.

This, at least, is the government’s goal, which it aims to achieve by undertaking a $43 million overhaul of Rarotonga’s water and sanitation systems.

The full upgrade will rely on a blended finance arrangement, or loans and grants provided under a ‘Water Partnership’ scheme with New Zealand and the People’s Republic of China.

Government intends to meet increased operational costs by introducing user pays charges once water quality reaches potable standard. The income it expects to generate by charging for drinking water is $1.5 million per year from 2015/16.

Thus far, just $50,000 has been spent on planning and scoping in anticipation of the project.

Budget Book 3 breaks down all government’s funded projects and their associated cash flows for the next three years.

”Every project is in here,“ financial secretary Richard Neves has said. ”If someone mentions a project and it’s not in here, it’s not being funded.“

The total cost of projects being undertaken from the present into the 2014/2015 financial year is $162.3 million.

For this year, the costliest projects are water and sanitation ($17.6 million) and renewable energy ($12 million).

The Budget forecasts that all planned capital projects – those that have already been initiated or planned – will cost a total of $280m and $221m over four years. Of the first figure, the Budget forecasts the cost of capital works (eg construction and building) to be $227m, of grants (eg water tank subsidies) to be $27.2m, of plant and equipment (eg vehicles) to be $15.8m, of maintenance to be $5.1m and of information and communications technology to be $5.3m.

Of the four-year capital initiatives costs, 41 percent will be met by overseas development partners, 40 will be funded through loans, 7 percent ($16.5m) will come from government, 11 percent from state-owned enterprise lending and one percent from SOE dividends.

The total cost of water and sanitation projects going forward is $125.5m, while $75m has been earmarked for transportation projects, $34.3m has been set aside for renewable energy projects and $14.4m will go toward infrastructure. The Budget differentiates between costs associated with the four-year forecast (up to the 2014/15 financial year) and total project costs.

Budget Book 3 – or the ‘Capital Book’ as it is being referred to – budgets for the Rarotonga water and sanitation system overhaul, water and sanitation in the pa enua, renewable energy projects in the northern group, upgrades to schools and hospitals in the pa enua, upgrades to water systems in Aitutaki, Atiu, Mitiaro and Mangaia and water tank renovations in the northern group, machinery for the pa enua and upgrades to marine and air transport infrastructure.

The Avarua water upgrade – which is already underway – entails the replacement of water mains and roads for a total of $60.9m, $10.5m of which is payable this year.

This Budget allocation is being derived from an Asian Development Bank loan for economic recovery support.

Tepuka sewerage and water systems are being repaired this year, a project for which the Budget sets aside $200,000.

Sanitation programmes are being funded by grants from the European Union, New Zealand, Australia and loans from the European Investment Bank.

Under a United Nations adaptation programme, $1.5m is being allocated to fund water projects in the southern group, and the Australian government is funding the same in the northern group and Mangaia.

Chinese grants are covering costs associated with equipment, machinery and airport upgrades, and the Pacific Adaptation to Climate Change is meeting Mangaia harbour costs.

• Rachel Reeves

A story about Toa’s petrol shortage that ran in Cook Islands News last Wednesday mentioned that Toa does not have a licence to operate from its Nikao premises.

In fact, Toa has a provisional licence to operate and an agreement with the Ministry of Internal Affairs to store its petrol in tanktainers temporarily, until such time as it gets environmental clearance to construct.

Company director Brett Porter has said Toa is able to fully supply its customers needs. The shortage simply resulted from a delay in shipping.

Arorangi School prefect Rose Tamarangi expertly cracks a coconut with a bush knife ready to be grated to make tai (coconut sauce). 12060714

Rarotonga school children tested their traditional skills at the first ever schools cultural competition organised and sponsored by Highland Paradise last week.

More than 60 school children from three schools took on the challenge to make an umu, weaving, story telling, drumming and performing an ute.

Tutu Teuira, co-owner of Highland Paradise, believes that the survival and development of Cook Islands culture begins with our children and their enthusiasm and pride in their unique past.

Highland Paradise, the tourist attraction based at a historical and cultural site in Arorangi, is dedicated to the survival and development of the Cook Islands culture, and organised the cultural competition for Rarotonga children as part of that kaupapa.

Students aged under 13 prepared their umu pits, cleaned and wrapped food including pork and chicken donated by Manea Foods as well as taro, rukau and maniota for the umu.

Once the umu was covered the students told stories of legends, put their weaving skills to the test and chanted their pe’e.

For Highland Paradise guide, local orator and planter Danny Mataroa – seeing the kids hard at work making their umu made him proud.

He believes many Cook Islands children don’t know how to make an umu, husk and grate coconuts or prepare baskets and wraps for the food to go into the umu.

”You know these days you see our kids are inside playing games and wathing DVDs – I only ever see the older generation putting an umu down,“ says Mataroa.

”So the reason we are doing this is to show our kids how to prepare an umu and cook food so one day I can say to my grandchildren ‘go make us an umu’ and they can – I can finally go and watch my DVD while they put the umu down.“

Among the kids taking part in the competition were master umu makers who have grown up helping their parents and grandparents prepare an umu, along with those who were preparing their first umu and eager to learn.

After sharing their chants, stories and showing off drumming skills – each umu was uncovered and a combined kaikai was enjoyed by all involved including the students, their teachers and the competition judges.

Highland Paradise hopes to make the competition an annual one in a bid to make sure that Cook Islands children know and enjoy their culture.

• Matariki Wilson

Click to enlarge

Rarotonga school children tested their traditional skills at the first ever schools cultural competition organised and sponsored by Highland Paradise last week. More than 60 children from three schools took on the challenge of making an umu, weaving, story telling, drumming and performing an ute. Arorangi School girls are pictured weaving while waiting for the umu. 12060723

 

Click to enlarge

James and Revan Tuaputa put their coconut grating skills to the test. 12060719

 

The Democratic Party caucus boycotting yesterday’s Budget briefing – from left, Tangata Vavia, Taunga Toka, Wilkie Rasmussen, William ‘Smiley’ Heather, Jim Marurai, Sean Willis and Ngamau Munokoa. 12060890

Opposition leader Wilkie Rasmussen yesterday issued this statement on the new Budget, which he perceives to be a document of ”zero hope and of bleak possibilities“.

An annual Budget by any government is something that the people of the Cook Islands look into for hope of better things.

But this Budget presented on Thursday by the Minister of Finance, the Hon. Mark Brown, is a document of zero hope and of bleak possibilities.

It lacks real economic vision and it also lacks joy because it is yet another needless attack on the simple pleasures in life. It is another money grabbing exercise to maintain funding levels where it is needed least and that is in travel.

Where are the fundamental changes to our economic model that will give our young people the hope they need? Where are the economic stimuli for business to become more profitable and therefore able to pay a greater share of tax? Where are the essential funding to better resource our education system and the children going through schools here in the Cook Islands?

It is unacceptable in this day and age that funding per student in the Cook Islands per year is under $1000 and yet in most other countries that we relate to, it is over $3000.

When the new finance minister took over, he told us that it was important to re-balance the Cook Islands economy from a debt ridden tendency so that our economy would have more savings and a better fiscal balance with the rest of the world.

The Opposition agreed with him on that, however it needs to be held accountable because after a year and a half in office, the government has achieved nothing and there is an unmistakable sign that our current account deficit is getting worse and therefore creating an imbalanced economy.

Budget 2012 fails to deliver any fundamental changes to the structural problems facing the Cook Islands economy and the Cook Islands Party government have resorted to a range of taxes and levies against ordinary Cook Islanders to fund their vote buying capital expenditures set out in this budget. It is sad to say that, the revenue and spending decisions of Budget 2012 is driven by political rather than economic imperatives.

The minister of finance said in his financial statement in Parliament on Thursday that the taxes on alcohol, tobacco and fizzy drinks were not intended to be generating revenue for the government but to address lifestyle behaviours of the Cook Islands people. This has to be the most blatant fib ever made during a Budget speech.

The Cook Islands economy is living beyond its means and is at risk from threats such as the softening of the tourism market. This government has failed to demonstrate ability to tackle the ever escalating subsidies for Air New Zealand, now sitting at $12 million when a few years ago it was capped at $5 million.

Twelve million is the equivalent of the Ministry of Health Budget and Air New Zealand made a profit of $34 million last year and if we look at it crudely, the Cook Islands has contributed to 1/3 of that profit.

The Democratic Party, if it comes into office, will immediately attempt to reduce the so called subsidies in a constructive way rather than turn a blind eye to it as this government is doing.

The withholding tax continues to be a distasteful method of paying for government expenses. We know that the receipts are well down on what was forecasted by the government advisors of what will be generated by the tax.

The Opposition decided to boycott a briefing to members of Parliament at Parliament yesterday, because it refuses to have wool pulled over the eyes of its caucus members by the flashy presentation of format of this Budget rather than focus on the fundamentals.

The Opposition caucus had its own briefing yesterday and has called on the advice of a number of private sector people who can independently analyse the Appropriation Bill of 2012/13.

There were some items in the Budget that were irregular one being, $100,000 being allocated towards the Samoan shipping service that recently serviced the northern group. There is no sufficient explanation as to what and why this money has been appropriated.

Is it to subsidise the freight of a service that was poorly delivered because a number of goods were not delivered to all islands? Or is it to reimburse the monies of those northern group islanders that placed their orders with the service but never received their goods? What is more disturbing is that this Budget does not address the poor and inconsistent shipping service to the outer islands in particular the northern Cooks.

The Budget also says that there is going to be 2 percent savings on government personnel which amounts to $703,000 and this is due to vacancies that have not been filled but the Budget proposes to continue within the next two years cut to personnel of 2% each year.

This can only mean that there will be cuts to the public service in the future.

With regards to income from taxation there has been a steady progress for instance from 1997 of $34 million to $90 million in 2012. However, the Opposition sees a leveling off of revenue from taxes as evidenced by a drop of $2 million in tax take in the March quarter of this year.

That can only mean that we are living beyond our means and the amount of money set aside for the Air New Zealand subsidies is eating away into our predicted revenues.

As stated, the Opposition is extremely concerned about this Appropriation Bill and feels that the lower and the middle income people are being punished and yet there is no give towards improving their cost of living. The numerous taxes and levies would inevitably affect income and in turn will affect the abilities for people to buy goods and pay for their necessary living expenses.

The consumer price index has been revised upwards on account of increases in the price of fuel.

The index, or CPI, relates to the cost of living and inflation, and indicates price changes for consumers.

The most recent CPI data available relates to the March 2012 quarter, and is recorded at 121.84 for all groups (food, housing, household operation, apparel, transport, tobacco and alcohol and miscellaneous). This number is up from 120.89 the previous quarter.

The increase is being driven primarily by increases in the cost of fuel. For the relevant quarter, there was a 16.5 percent increase in the price of fuel and light and a 7.3 percent increase in the price of motor fuel.

There was also a 7.1 percent increase in the cost of clothing.

The CPI for food during the March 2012 quarter was 127.34 – up from 124.98 the quarter prior.

Inflation has been documented at 4 percent but is expected to settle at around 3 percent going forward.

The long-run average assumption is based on the New Zealand CPI forecast, which is currently 2.5 percent.

New Zealand is the Cook Islands’ primary trading partner and a significant supplier of goods.

• Rachel Reeves

Prime Minister Henry Puna is in Auckland from Monday to Thursday next week attending a tripartite meeting between Pacific leaders, the Pacific Island Forum, and the European Union.

EU relations in the Pacific region will be discussed. The meeting will also be attended by New Zealand Foreign Affairs Minister Murray McCully and a minister from Vanuatu as a representative of the previous Pacific Island Forum chair. Puna will chair the next Pacific Island Forum, to be held in the Cook Islands in August this year.

From Thursday to Sunday he will be back in Rarotonga.

Deputy Prime Minister Tom Marsters spent the weekend in Aitutaki, where he was on an official visit to take part in the Queen’s Award Ceremony. Josephine Lockington was presented the British Empire Medal by the Queen’s Representative Sir Frederick Goodwin, for services to the public and community. The ceremony took place on Friday at 3pm. He is back in Rarotonga this week.

Finance Minister Mark Brown was very busy this week announcing the Budget, which was tabled on Thursday and reflects a $98,000 surplus for 2012-2013. This is the first time the Budget was presented in an internationally recognised format used by the International Monetary Fund and governments around the world. He remains in Rarotonga this week.

Ministers Nandi Glassie, Teina Bishop, and Teariki Heather also remain in the country this week, as parliament is sitting. On Monday the main focus of debate will be the new Budget.

• Calida Smylie

Kelly Pick and husband Brendon Heath with Takitumu paramount chief Pa Marie Ariki, Captain Fabien Caparros, Cook Islands Voyaging Society president Ian Karika, Officer Aymeric Leboulanger, and Sam Napa at the cocktail party on board L’Arago. 12060704

French naval vessel L’Arago arrived in Rarotonga on Wednesday morning on its maiden voyage to the Cook Islands.

The ship, which replaced an older French vessel in Tahiti last year, arrived at Avatiu wharf at 8am yesterday and will stay in port until Sunday afternoon.

Senior sergeant Stu Tuariki Henry, operations officer and second in command of Cook Islands police patrol boat Te Kukupa, said L’Arago’s visit is a courtesy from the French navy and on this leg of the visit there would be no joint operations or training procedures carried out. Henry could not confirm whether there would be any collaboration between the two countries at other stages of the two week visit, saying it is ”under the radar“ at the moment.

L’Arago, which was launched in September 1990 as a hydrographic survey vessel before becoming a patrol boat, will also stop for a courtesy visit in Aitutaki.

The crew of L’Arago hosted a cocktail party on board the ship on Wednesday evening, serving French wine and cheese. Guests included New Zealand high commissioner John Carter and Takitumu paramount chief Pa Marie Ariki.

The vessel is 59 metres long, with a beam of 10.9 metres and a displacement of 850 tons/1100 tons (fl). It has an armament of 2/12.7mm machine guns, and a speed of 15 knots.

The vessel is captained by lieutenant commander Fabien Caparros, and is crewed by six officers, 19 petty officers, and 12 seamen.

• Calida Smylie

Businesspeople gathered at a ‘Budget breakfast’ hosted by the Ministry of Finance and Economic Management – participants paid for their own breakfast – yesterday to talk finance. 12060801

Businesspeople raised concerns over VAT thresholds, the Cook Islands’ high cost of living, fishing licences, depopulation and forthcoming import levy increases at a ‘Budget breakfast’ with finance minister Mark Brown and finance secretary Richard Neves yesterday.

Prime Minister Henry Puna opened the breakfast meeting, attended by about 80 people, applauding the Budget committee for balancing the books and noting that the Budget reflects ”change“ and ”freshness“ in the government’s approach to finance.

He called government’s new initiatives, which are outlined in the Budget, ”pretty bold“ and told businesspeople that his government is committed to opening its spending agenda up to ”examination and comment and criticism if need be.“

Brown followed with his own speech, noting that the Budget is a ”milestone“ and transforms the Cook Islands ”into a place that attracts development assistance.“

It closes existing gaps, he said, between the National Sustainable Development Plan, overseas donors’ requirements and actual outputs.

”Today is an example of how government wishes to engage openly with all of the community in regards to its activities and policies,“ he said, calling the amount of information available ”unprecedented“.

”Whether it places a glossy shine on what government’s doing or not, it’s all there.“

After Neves gave a breakdown of the Budget’s key points, Brown opened the floor to questions from members of the business community.

Accountant Mike Carr commented that the Cook Islands’ personal tax rates are 40 percent higher than those of New Zealand, and have remained unchanged for nine years.

”We talk about people leaving, we talk about why. I think it’s simply a financial decision,“ he said, adding that ”clearly that’s not the only reason but part of the reason people are going overseas.“

He also noted that a review of VAT thresholds is ”long overdue“.

Brown answered that government intends to review tax structures, not just for companies but for individuals as well.

Steve Anderson asked about government’s procurement processes, which rated low in an assessment conducted recently.

Neves responded that government is ”moving to a more harmonised system“ to demonstrate to development partners that the Cook Islands’ procurement systems are robust and trustworthy.

”If we’re getting millions of dollars from other people they have to trust our procurement systems, otherwise they will use their own.“

Neves said the Ministry of Finance and Economic Management (MFEM) intends to hold formal community consultations on the issue of procurement but that the open and transparent Budget is the ”first step“.

Brown responded to another question about 2 percent savings in personnel costs with a firm declaration that the Budget does not engender any job cuts. As of March, he said, government realised it was under-spending by 2 percent on public servants’ salaries, and by actualising those savings it reduced personnel funding by $703,268.

• Rachel Reeves

Health minister Nandi Glassie recently met with Cuban Ambassador to New Zealand, Her Excellency Maria del Carmel Herrera Caseiro, to discuss possible health scholarships to Cuba for young Cook Islanders in the coming year.

The discussions follow on from the visit to the Cook Islands of Ambassador Herrera Caseiro in March, during which she presented her credentials to the Cook Islands government.

Cuba is well known for its expertise in the health field and since the 1960s has sent thousands of medical personnel to serve overseas, particularly to Latin America, Africa and, more recently, Oceania.

From 2000, Cuba began strengthening its relations with Pacific Island countries and began providing medical aid.

Cuba’s medical aid to Pacific countries has been two-pronged, consisting of the dispatch of doctors to Oceania, and the provision of scholarships for Pacific students to study medicine in Cuba at Cuba’s expense.

Last year, some 200 Pacific Island students were studying medicine in Cuba.

”Thus far, scholarships for Cook Islanders in the health area have been limited to study in Fiji, New Zealand and Australia,“ Glassie said.

”Given the continued decline in the number of scholarships available to Cook Islands over the years, the scholarships offered by Cuba are particularly welcome and government looks forward to bringing these opportunities to fruition through Ambassador Caseiro and our High Commission Office in Wellington.“

• Release

Government is offering $500 to the winner of a competition to design the logo for this year’s Pacific Islands Forum.

The Government and people of the Cook Islands will be hosting the 43rd Pacific Leaders Forum in Rarotonga and Aitutaki in the last week of August 2012. The Prime Minister and 2012 Forum Chair Hon Henry Puna today announced that the theme for this year’s Forum is Large Ocean Island States – the Pacific Challenge.

The winning applicant must come up with a logo that reflects this theme.

Puna said he supports the special needs and vulnerability of Pacific island states, but also thinks it’s time to seek a balance with the large ocean realm in which we live.

”As Pacific peoples we are the stewards of the largest ocean on the planet - nearly 40 million square km of the Pacific. Yet, more often than not Pacific nations describe ourselves as small island developing states,“ said Puna.

”On its own and without a balance to the ocean this small island mentality does not serve us fully. This is not how our ancestors saw themselves in the voyages of the past; it is not how they limited their domain of influence; it does not portray the marine realm at all or the connection between our peoples and the entirety of our environment.“

Puna also said the Cook Islands connection to the ocean realm is being highlighted by Pacific navigators who have revived the ancient navigational traditions in their voyages from the Cook Islands to the American continent and back.

”These young Pacific men and women prompt us to rethink our birthright, our responsibility and our duty to the ocean. They have brought to the fore what our ancestors saw and what we need to see again – our islands in a sea of islands – in an ocean of opportunity and value.“

The logo competition, which closes at 5 pm on June 22, is open to every resident in the Cook Islands and to all Cook Islanders living elsewhere.

The winning logo will be used extensively on products, printed material, uniforms, media releases, and other items associated with the 2012 Pacific Forum. In designing the logo thought needs to be given to how easily the design can be applied to fabric, paper, and on-line.

The prime minister will have chosen the winning logo by the end of June 25, and award the winning designer $500.

Entries, which should be in a high resolution format and contain a descriptor, need to include a contact name, address and phone number and can be hand delivered, emailed, or posted to: Forum Coordinator, Ministry of Foreign Affairs and Immigration, PO Box 105, Avarua, Rarotonga, Cook Islands. Email forumcoordinator@mfai.gov.ck. Queries to Jaewynn McKay on 29 347 or 55 486.

• Release

Government has chosen to keep pa enua expenditure levels steady even as people continue to leave the outer islands.

The Budget reveals that island administrations have access to funding totalling $10.8 million for this financial year.

Funding comes from the pa enua capital fund ($2.7m), pa enua small capital fund ($110,000), pa enua equipment for unanticipated breakdowns ($100,000 payment on behalf of the Crown), and the pa enua net appropriation of $8.1m.

The Ministry of Finance and Economic Management has a specific pa enua funding formula, by which it calculated a recommendation that government reduce pa enua funding by $577,000 for this financial year.

The government rejected the recommendation, opting instead to maintain previous expenditure levels.

Population estimates suggest the northern group is experiencing the most drastic population decline (21 percent) since 2006. The southern group is experiencing a 13 percent population decline.

The Budget indicates that pa enua residents are ”increasingly dependent on cash transfers, including child benefit and old age pensions.“

”On most islands, approximately 40 percent or more of the population are either under 14 or over 60 years of age. In most pa enua, it is the public sector that has shown the fastest growth. The private sector has remained very small and the public sector has remained the main source of employment. As time progresses and their populations trend down, the role of most pa enua is narrowing to the provision of basic services to the small communities that choose to remain.“

Finance Minister Mark Brown addressed the people of the pa enua during his Budget speech in Parliament on Thursday.

”The government is very aware of the difficulties facing our people in the pa enua. We have quarantined you from any further cuts (and) we are determined to introduce a reliable inter island transport service. This is a crucial ingredient to economic development and to arrest the declining population base of the pa enua,“ he said.

”We will be using the generous assistance of our friends from the People’s Republic of China to purchase a whole host of new equipment and machinery to carry out much needed work on each of our sister islands. These will be distributed to our islands over 2012/13 and 2013/14.“ - RR

Pa enua initiatives

- Aitutaki – development of a master plan for air transport, rejuvenation of the airport runway, improvement of fuel storage facilities, refurbishment of Vaimaru water galleries, development of the Orongo development master plan, installation of water tanks, upgrade of sanitation systems and provision of a mini transformer and a crusher plant

- Mauke – completion of the harbour development, repainting of hospital

- Mangaia – completion of the harbour development, upgrade of Tamarua water pipe, overall water upgrade, stage two of the hospital and health residence upgrade

- Atiu – emergency water storage project, including provision of new water tanks, and provision of power generators

- Mitiaro – installation of water tanks, relocation of power house, continuation of development of the network, installation of solar PV mini grid system

- Pukapuka and Nassau – upgrade of community water tanks, installation of the solar PV mini grid system, renovation of the generators, renovation of hospital and health residence, rejuvenation of the water catchments and provision of a crimping machine and outboard motors

- Penrhyn – upgrade of community water tanks, repainting of the hospital, construction of a disability ramp for the hospital

- Palmerston – upgrade of community water tanks, completion of island clinic

Pa Marie Ariki is promoting the health benefits of chia seeds, which were so valuable to the Aztec people that they were an object of worship. 12053120

Pa Marie Ariki is a woman on a mission, and her ultimate goal is to transform her nation into a fit and healthy one.

She has been actively promoting healthful messages, emphasising the nutritional value of locally-grown fruits and vegetables – in particular the coconut – and liaising with doctors overseas about setting up a diabetes clinic in her Mata Enua palace.

Now Pa Ariki is pushing chia. Already she’s introduced the superseed to about a dozen diabetics on Rarotonga, all of whom have reported a change in their energy levels.

Chia is an ancient grain, so valued by the Aztecs for its nutritional benefits that they worshipped it. It has more Omega-3 (healthy fatty acid) and fibre than any other natural food, but has been left out of the mainstream modern diet because it is difficult to grow and its production requires specific climactic conditions.

Its scientific name is Salvia hispanica.

Just one tablespoon of chia has eight times more Omega-3 than salmon, five times more calcium than milk, three times more iron than spinach and 15 times more magnesium than broccoli. It aids digestion and boosts energy.

The seed – which resembles a poppy seed but can be either black or white – can be dissolved in water and taken as a drink or sprinkled on top of salads and cereals.

Pa Ariki started taking chia daily after she underwent a knee operation last year. She also started watching what she ate and exercising, and before she knew it was 20 kilos lighter.

”I went to my doctor in New Zealand for a blood test – always my cholesterol is too high – but when the test came back she asked what I’d been doing because my cholesterol was good, clean, for the first time. I said I was taking chia to give me energy and she said to keep taking it because it’s the best thing for you.“

She kept taking it.

Pa met with the Cook Islands Diabetes Society, of which Tuki Wright is president, last week to share with its members the health benefits of chia, and is pushing importers to consider bringing in packs of the seed.

She is also promoting coconut oil and nu as two vital components of a healthy life.

Pa Ariki says she takes a tablespoon of coconut oil a day, and applauds the enterprising local people who make and sell it.

While she does not have diabetes, Pa Ariki is concerned about the high numbers of Cook Islanders who do. There is no cure for diabetes, but Pa says 75 percent of cases are preventable, and she names nu, coconut oil and chia as important tools for prevention.

In the spirit of Dr Robert Lustig – a California doctor who is waging a media campaign against sugar – she is fighting against the over-consumption of sugar and fizzy drinks and unhealthy foods in the Cook Islands.

”People here are in denial,“ she said. ”I’m the nagging queen – I’m always telling people to think about their health.“

• Rachel Reeves

New import levies on sweetened drinks are likely to increase the cost of the average soft drink by 25 cents – and Pa Marie Ariki is thrilled.

For months she has been trying to promote messages of healthy eating and living, and applauds the government for taking the initiative to discourage consumption of sweetened drinks.

”I am delighted that Hon Minister Mark Brown has addressed the soft drink and alcohol issue by way of increasing the tax on these beverages,“ she has said.

”I was about to suggest that such a levy be applied as this is one of the main contributing factors to diabetes in the Cook Islands.

”It distresses me to see the number of people in our country who are dying from this devastating disease and to this end we need to promote awareness and better education on its causes and prevention.

”The government should be applauded in their new stance to help fight obesity in the Cook Islands and this newly introduced tax will unquestionably assist in this endeavour.

”The New Zealand government is discussing this initiative and it is still yet to be passed. Talk is cheap, action is necessary.“

The government has said that the increased levy is aimed at increasing the cost of sweetened drinks to encourage behavioural change amongst Cook Islanders.

Locally-produced sweetened drinks are excluded from the ‘health measure’.

Brown says that if consumption of locally-produced sweetened beverages reaches the same level as of imported sweetened drinks, government will consider targeting them as well.

• Rachel Reeves

The Budget government presented in Parliament yesterday breaks new ground.

In his speech, Finance Minister Mark Brown explained that for the first time, the public has access to over 800 pages of detailed information that break down the way government is receiving and spending money.

”The 2012/13 Budget is supported by three documents which provides the public more detail and analysis about how the government is spending Crown money,“ he said, making special mention of Budget Book 3, which outlines ”every bit“ of capital spending that government will undertake over the next three years.

”This is a first for this nation, outlining the actual financial path for development – this is not a wish list outlining what could be done, this is a list of what will be done.

”All of the activities in Budget Book 3 are funded through various modalities.“

Brown explained that the new framework ”will hold government and its ministries to account.“

”From this point on anyone will be able to guess whether the change in the state of the Crown’s finances are due to policy interventions made by government or whether other parameters which are outside the immediate control of government have had an impact.“

This way, he said, people can check to ensure that government is spending money the way it promised it would.

For the first time, the Budget has been presented in an ”internationally recognised format“ used by the International Monetary Fund and governments around the world.

Brown said the convergence of the airline underwrites and tourists’ tendency to spend less has ”squeezed“ the government’s resources this year.

”This budget reflects the sentiment for us to stretch our dollar further, to make it work harder, to make tough decisions to ensure that we can continue to provide services and deliver infrastructure to our communities.“

He was proud to announce that the government has brought its accounts back to an underlying surplus of $98,000.

”This is a big turnaround considering we came from a $2.5 million deficit and it has been a significant effort. We have stretched our dollar further to fund our new initiatives through savings in our administration and a moderate increase in revenue.“

He explained that government is in the process of legislating to have the $55 departure tax included in the initial ticket purchase as from December 1 of this year.

”This is something that has been talked about for years I am very proud that this government has managed to implement this initiative when many failed to do so in the past.“

Then, from July 1, 2013, departure tax will be increased to $65. He noted that government has increased the tobacco import levy by 33 percent per annum for three years (starting August 1), the sweetened drinks import levy by 15 percent from August 1, and alcohol import levies (except on low-alcohol beers) by the same.

Brown ran through the government’s new initiatives, which are broken down in this issue of Cook Islands News and include the establishment of a climate change unit, the consolidation of pa enua financial services, the hiring of a special needs teacher for Palmerston, and the accommodation of leaders during the Pacific Islands Leaders’ Forum in August and during the Commonwealth Parliamentary Association meeting in November.

He noted that government has provided pa enua budgets with an additional $500,000, and that Internal Affairs has been provided funding to implement six-week paid maternity leave for all working mothers and to increase the old-age pension for people over 70.

Government has also allocated $1 million each year for three years to ensure every household has a water tank, and is committed to improving water supply and sanitation systems on Rarotonga – an undertaking that will require borrowing millions over the long-term.

But Brown said government is committed to releasing a detailed quarterly report on debt.

”A responsible and transparent approach to the public debt is something this government is proud of, not the ad hoc approach we saw from the previous administration.“

Brown said government is ”most proud of“ Budget Book 3, which breaks down all capital expenditures being made over the next three years. Investment approaching $160 million over the next three years will cover public works, particularly in the pa enua.

He broke down the infrastructure projects government is committed to undertaking in the pa enua, and added that government is ”determined to introduce a reliable inter island transport service.“

”This is a crucial ingredient to economic development and to arrest the declining population base of our outer islands.“

In conclusion, he said ”This budget will be a testimony to our people of the Cook Islands Party government’s resolve to improve the lives of our people, on whose mandate we stand to present it and on whose vision we aspire towards.“

Further excerpts from Brown’s speech will be published in forthcoming issues of Cook Islands News.

• Rachel Reeves

Taxation has increased by an estimated 3.4 percent – increasing government’s revenue by $3 million this financial year. From direct taxation government is estimated to be collecting $38.7 million.

The increase is being driven primarily by the withholding tax, the full effects of which become palpable during this financial year.

Taxes are expected to increase by 2.1 percent next financial year and 2.6 percent in 2014/2015.

In this year’s Budget, tax revenue does not include departure tax, which the International Monetary Fund considers a levy imposed on passengers and therefore counts as ”other revenue“.

The government’s benchmark for taxation is 25 percent, and even with the increase in import levies, the withholding tax and normal and expected growth, government is well below the limit. However, the departure tax increase from next year will bump up taxation to the 24.5 percent mark.

Such policy changes are expected to grow revenues by $599,000 this financial year and $2 million next. Grants are expected to grow by $2.5 million, or 5.7 percent, a figure that reflects the funds government has received from overseas donors but has not spent to date. Accordingly those appropriations roll over into the 2012/2013 budget.

‘Other’ revenues have declined by 5.4 percent, or $1.1 million, due to decreased dividends from state-owned enterprises, decreased trading revenues collected by ministries and the merger of two financial entities (Financial Supervisory Commission and Financial Intelligence Unit).

Government still spends (as opposed to collects) some money on taxes, including on tax exemptions and allowances.

There are tax exemptions for jet fuels and for non-resident airlines.

If a resident has two jobs, the second is taxed at a lesser rate. Welfare and pension benefits are not taxed, and financial services are VAT-exempt, as are airline tickets.

• Rachel Reeves

Expenditure is expected to increase by 2 percent to $131.5 million this financial year.

The bulk of the increase is the result of government’s commitment to underwrite Air New Zealand flights – a cost of $12.5 million and $13.6 million for this year and next, respectively, which exceeds projected forecasts of $8 million and $10 million.

Government has also earmarked $2.1 million for a host of ”new initiatives“ during this financial year.

The biggest allocations will be $500,000 to the Ministry of Foreign Affairs and Immigration for the Pacific Islands Forum, $400,000 to the Ministry of Internal Affairs for increasing the old-age pension and $320,000 to the Ministry of Marine Resources for the establishment of a Seabed Minerals Commission.

A total of $150,000 has been allocated to Parliament to cover the cost of hosting a regional conference of the Commonwealth Parliamentary Association in November. The funding is expected to cover costs associated with printing, rental vehicles, venues rental, equipment, evening functions and daily meals for delegates.

Government is appropriating $58,000 to Audit to employ a special reviews manager, who will oversee special audits. Funding to the tune of $48,422 will go to Crown Law for hiring another legal executive.

The position of Auckland Consulate-General has been vacant since 2007, so government has earmarked $70,000 for the Ministry of Foreign Affairs and Immigration to fill it.

To fund continental shelf deliberations – three people from Rarotonga will travel to New York in September and March 2013 to present the Cook Islands’ claims to the UN Commission on the Limits of the Continental Shelf – government is putting aside $66,000.

To meet the ”rising costs of providing the additional airport and protocol services for VIPs and government dignitaries.“ the Budget earmarks $5000.

A total of $65,000 is going to the Ministry of Finance and Economic Management for centralising pa enua accounting services.

”The major reason we’re so behind in accounts is we’re finding that outer island administrations having difficulty producing their accounts – the first step to assist outer islands to do their accounting,“ financial secretary Richard Neves said.

For setting up a climate change unit at the Office of the Prime Minister the Budget sets aside $65,500. Currently climate change work is funded by donors, but the stream runs dry at the end of this year and government has opted to take it over, and has made a Budget appropriation in accordance with that commitment.

Job-sizing for all ministries – to ensure that all public servants are being paid at least the minimum of their bandings – will cost $87,789.

Palmerston Island will get a budget allocation of $18,538 to fund the salary of a special needs teacher for a child who requires extra assistance.

The Financial Intelligence Unit and Financial Supervisory Commission are being merged into one, and the resulting entity will receive an equity injection of $50,000.

Internal Affairs will receive an additional $49,000 to fund paid maternity leave for all working women in the Cook Islands.

Parliament has also been allocated $15,000 for the establishment of a select committee support services unit.

• Rachel Reeves

Both revenue and savings are up from last year.

Total revenue has increased by 3 percent, meaning that currently government is collecting around $158.2 million (including aid).

Taxation comprises 58 percent of revenue, grants from other governments make up 30 percent and the remainder is from sources such as sales of goods and services, dividends, fines and interest.

Increased revenue is due to the withholding tax, a planned increase in departure tax and levies on alcohol, tobacco and sweetened drinks. Departure tax is expected to generate $1.38 million in the next financial year and $1.57 million in 2014/2015.

Increased import levies are expected to translate into $599,000 in additional revenue for this financial year and $645,000 in revenue for 2014/2015.

Fishing licences are expected to generate $2.4 million this financial year.

Government has also identified total ongoing savings of $3.45 million this financial year.

Crown Law is moving to the Financial Intelligence Unit office – the latter is merging with the Financial Supervisory Commission – which will save $57,000.

Personnel savings of 2 percent translates into $703,268 more in government coffers.

While the public service payroll is being reduced by 2 percent, job cuts are not looming. Government is currently under-spending by 2 percent in its personnel budget, meaning the 2 percent reduction simply actualises the savings being made already.

Slashing long-service bonuses translates into $199,772 in savings.

POBOCs are being drawn down to achieve savings of $1.9 million. (A further breakdown will be published in future issues of Cook Islands News.) Paring down operating costs – for example, ministry staff travel and energy use – will translate into savings of 5 percent.

• Rachel Reeves

There was no major outflow of capital after the government announced its intention to enact a withholding tax.

Overall deposits have in fact increased from $186 million in December last year to $192 – an increase of 3.2 percent.

”There was a lot of concern that we would see hordes of people moving money out of the Cook Islands but that hasn’t been demonstrated,“ financial secretary Richard Neves explained.

The overall value of loans has remained fairly constant, reflecting a tightening of credit and debt consolidation by houses and businesses. Total loans are not expected to rise in coming years.

MFEM predicts that they will grow in line with GDP, but not significantly as ”the current global economic outlook continues toimpact negatively on confidence levels.“

The same impact affects the construction industry, as fewer new developments are being recorded.

In the September quarter total construction declined by 1.5 percent, indicating a ”very subdued construction market“. Construction is expected to expand in line with the growth of nominal GDP.

• Rachel Reeves

Imports continue to exceed exports, resulting in a negative trade balance of $103.7 million.

The Budget reveals that about 58 cents is leaking out of the economy for every $1 spent in the Cook Islands, primarily because of the country’s heavy reliance on imports to meet local demand.

Last year imports cost the country $105.7 million (as compared with $111.8 million the previous year).

Over the same period New Zealand was supplying 85 percent of total imports. The bulk of import volumes is made up of food and live animals (27.7 percent), machines, transport and equipment (27.4 percent) and basic manufactured goods (11.4 percent) and miscellaneous goods (11.4 percent).

Imports are expected to grow as nominal gross domestic product (GDP) increases.

Total exports for 2011 were $4 million, the bulk of which were fresh or chilled fish (61 percent), noni (16 percent) and pearls (9.3 percent).

As compared with the previous year, exports fell by 45 percent – mainly because of the under-performance of the pearl industry.

Overall exports are expected to contract slightly (1 percent) in 2011/2012 before growing by 3.1 percent, 9.9 percent, 11.5 percent and 10.4 percent over coming years.

Pearl exports, however, are expected to stagnate for two years before growing to $1.5 million by 2014/2015. Fish exports are expected to grow by 5 percent per annum – from $3.1 million to $4 million by 2015/2016.

• Rachel Reeves

Gross domestic product (GDP) is expected to grow 5 percent this year, driven primarily by a projected increase in tourist numbers.

The economy grew moderately in 2009/2010 after contracting in 2008/2009, but the Ministry of Finance and Economic Management (MFEM) expects higher growth going forward.

Nominal growth, which does not take into account the effect of inflation, was 4.5 percent in 2010/2011 and increased to 6.5 percent by 2011/2012.

Growth is forecast to be 5 percent this year and 4 percent next before reverting to the long-run growth rate assumption of 3.5 percent per annum.

Statisticians estimate that during this financial year – for which data is still being compiled – the Cook Islands will receive around 121,000 visitors. They further project that the average tourist will stay for 7.5 days (down from 10 days before the recession hit) and will spend $227 per day. (The latter figure is expected to increase by 2.5 percent per annum going forward.)

As of April this year, visitor numbers were outperforming projections. The total number of visitors in 2010/2011 was 108,383 – a figure that is expected to grow this year and in 2013/2014 reach the 125,000 mark.

Arrivals from New Zealand (which account for 66 percent of the total) grew by 10 percent in the last year. Arrivals from Australia (which account for 16 percent of the total) are expected to grow by 1.9 percent this year.

However, visitor numbers from Europe and the UK continue to decline due to increased competition in the destination market, the global recession and the imposition of carbon taxes on European air travel passengers.

Still, the Tourism Corporation continues to focus on the European market for two reasons – because Europeans tend to travel outside Rarotonga, and because they come in the off-season.

MFEM concedes that its projections might be influenced by factors beyond government’s control.

First, the Cook Islands is ”not immune to the risks of a further downturn“ given the euro-zone crisis and the sluggish global recovery.

Other risks include further contraction of the tourism industry and reduction in the VAT government collects from tourists. The latter could arise from the documented reluctance of New Zealanders and Australians to spend, as they try to repair their balance sheets in the aftermath of the recession. There is anecdotal evidence to support that observation – that while more visitors are coming through the Cook Islands, they are in fact spending less money.

Additionally, as technology improves, visitors are performing more of their transactions in their home countries, before visiting the Cook Islands.

MFEM also acknowledges that New Zealand’s economy – to which the Cook Islands economy is inextricably linked – will ultimately rely on growth in Australia and China and on the anticipated reconstruction of the city of Christchurch.

Government is wary that the Christchurch rebuild could impact the Cook Islands in that it will draw labour from pools in places like Niue and the Cook Islands.

”A downside risk to the Cook Islands forecasts could be realised if labour is enticed to New Zealand for this rebuild or to fill in emerging gaps in other parts of the New Zealand economySuch a scenario could further exacerbate the declining resident population of the Cook Islands,“ reads Budget Book 1.

Continued depopulation is still a problem, and growth could be constrained if the Cook Islands’ capacity to accommodate greater numbers of tourists in the peak season does not expand.

• Rachel Reeves

By the end of this month, the Crown’s debt levels are expected to reach $93.6 million.

Last year the gross debt level was recorded at $107 million. The $14 million reduction in debt levels is the result of a favourable movement in the US dollar to New Zealand dollar exchange rate.

Currently the Ministry of Finance and Economic Management is working with the Asian Development Bank to convert the Cook Islands’ loans into New Zealand dollars in order to minimise risk and some of that reduction.

If government does not borrow another cent before this time in 2015 and the exchange rate stays the same, debt levels will drop to $80.1 million.

For the time being, government has not borrowed any further loans during this financial year. Two remain undrawn – a $6.3 million supplementary loan to Ports Authority for the Avatiu redevelopment project and an $8 million ‘Second Tranche Economic Recovery Loan’ from the Asian Development Bank. (The latter has been earmarked for infrastructure projects.)

Borrowing levels are still under the benchmark limit, though they will jump 5.3 percent in 2014/2015 as a result of a $43 million major overhaul of Rarotonga’s water systems.

The overhaul aims to provide every household with potable drinking water.

The Budget also considers that government has a loan reserves trust fund, established in 2001, to enable government to access concessional loans to state-owned enterprises.

Currently the reserve balance is $17.8 million, but government is considering enacting legislation to broaden the fund to encompass coverage of all debt, not just that previously incurred by state-owned enterprises (SOE).

If government were to pay out all loans at the current exchange rate, $2.8 million would remain in the loan reserve trust.

Currently Airport Authority has borrowings of $8 million over five years for further upgrades to the airport – and is considering borrowing a further $23 million - and Te Aponga Uira is considering borrowing a further $14 million to finance infrastructure upgrades.

Budget Book 1 tracks the movement of loans. Cook Islands News will provide a further breakdown of loans in coming issues.

• Rachel Reeves

All things yummy will be on sale at today’s Avatea Primary School food festival fundraiser.

The food festival, which runs from 10am to 2pm in the school hall, is to raise funds for school events and activities this year.

The school hopes to raise $10,000 with energy saving lights at the top of the school’s proposed purchases after the fundraiser.

Whatever you are in the mood for at lunchtime today – you will find it at the Avatea food festival including savouries and sweets.

• Matariki Wilson

Cook Islands doctor in training Bryden Nicholas examines Plumber Nicholls at Aitutaki hospital. 12050719

Cook Islands doctor in training Bryden Nicholas (second from left) with fellow med school student and friend Charlie Allen along with his grandmother Tutai Nicholas and father Dr Robert Nicholas in Aitutaki recently. 12050720

Aitutaki medical student Bryden Nicholas is following in his father’s footsteps – and recently he returned to the island for a six-week trainee intern placement at Aitutaki hospital.

In his sixth year studying medicine at Otago University, 23-year-old Nicholas decided to spend six weeks working in the Aitutaki hospital as well as another three months of working in a hospital in Tanzania, Africa.

Nicholas is the son of Dr Robert Nicholas from Aitutaki and Sue Clarke from New Zealand.

In 1978, Dr Nicholas worked at Aitutaki hospital for his elective year.

”Back then when he arrived to work, the doctor that was there went on holiday for six weeks and left him to run the place all by himself,“ says son Bryden.

While in Aitutaki he stayed with his grandmother Tutai Nicholas along with his friend Charlie Allen who also worked at Aitutaki hospital with him.

Although Nicholas was born and raised in Tauranga, he returns to Aitutaki twice a year to rest and be with his island family.

He chose to work as an intern trainee at Aitutaki hospital for many reasons but mainly because of his love of the islands – his home away from New Zealand.

Of course the fishing and experience of working in the Cook Islands was a drawcard but Nicholas says working in Aitutaki was a great way to use his studies to help ‘our people’ and something he has always wanted to do since starting at medicine school.

He admits that he didn’t think the Aitutaki hospital facilities were as good as they were.

”After coming from Africa, Aitutaki is set up much better. The hospital works really well and patients get good treatment.“

He adds that for such a small island the people are very lucky to have a hospital like it and are very fortunate to have excellent free healthcare.

While at Aitutaki hospital, Nicholas says he got a lot more hands on experience and responsibilities than he would have in New Zealand.

As well as looking after patients, Nicholas says that the ladies working at the Aitutaki hospital kept introducing his and his friend to all the girls on the island.

”I think they might be trying to get us to stay.“

After his six week stint at Aitutaki, Nicholas says that the Cook Islands have the same major problems as all other Pacific islands.

”The rates of non-communicable diseases are going up and the people affected are getting younger.“

Nicholas adds that a huge problem not just in the Cook Islands but across the region is obesity.

”If you look back at photos of the islands 50 years ago everyone is slim, if you look around now it’s a different picture – hypertension, diabetes and other cardiovascular diseases are becoming more common and affecting our people significantly.“

Nicholas’s sisters Ella, who will be representing the Cook Islands in slalom canoeing at the London Olympics in August, and Jane are also studying medicine.

Nicholas himself is a canoeist and is waiting to see if he qualifies for the Olympics to join his sister Ella.

In the meantime – it’s back to the books for Nicholas who will finish at med school in November.

• Matariki Wilson

Year 11 Commerce students from Tereora College put their Queen’s Birthday weekend to good use. 9 12060619

Queen’s Birthday weekend was not a holiday for all on the island. Year 11 commerce students at Tereora College, and their teacher Jerry Spooner, gave away their day of relaxing to instead focus on some revision.

Spooner, accounting teacher at the school, said the aim of the day was to cover certain topics that the students were still finding it hard to understand, and that they have not had time to revise during the school week.

BCI kindly provided the brain food for the keen students, in the form of breakfast, lunch and afternoon tea.

With the extra hard work put in by all, the students are confident for their upcoming mid-term exams, which are due to take place in the coming weeks.

• Rachel Smith

The 2012-13 Budget will be a milestone in the reporting of the country’s finances.

For the first time, the Budget will be presented in the Government Financial Statistics (GFS) format which is a standard approach to the presentation of public finances by many governments, including those of Australia and New Zealand.

In announcing the change in budget reporting, Minister of Finance Mark Brown has announced an underlying budget surplus of $98,000 in 2012-13.

”These were tight times, we wanted to maintain the underwrite of the LA and Sydney direct flights which is estimated to cost $13.6 million in 2012-13.

”We have made around $3.5 million in savings to our administration to ensure that we can provide services to standards the community expects.

”We have put the Budget in a robust position, so that in the case that times become turbulent, we can come from a position of budgetary strength.

”In addition, this is the first time that we expect to table and pass the Annual Budget before the start of the financial year.“

• Release

Media are attending a ‘budget lockup’ this morning at the Ministry of Finance and Economic Management.

Ahead of Minister of Finance Mark Brown’s Budget speech, scheduled for 1pm in Parliament House, media will have a chance to pore over the details of all three budget books.

Officials will be on hand to answer questions from 9.30am, and media will be allowed to take copies of the books with them after 12.30pm.

Budget Book 1 is a fiscal and economic outlook, and contains information on the government’s fiscal strategy, revenue, expenditure, tax expenditures, Crown debt, asset sales, public sector staffing and official development assistance (overseas aid). It also contains an economic update and a medium-term fiscal update. Budget Book 2 comprises ministry budget statements and outlines the operations of all ministries, island administrations and Crown agencies. It also provides insight into resourcing and key deliverables.

Budget Book 3 concerns capital and development over the next three years.

Just after midday, media will be released to attend the tabling of the Budget at Parliament this afternoon.

Following Brown’s speech, Budget-related debate will commence between the government and opposition in the House of Parliament.

Tomorrow Parliament is adjourned to allow Parliamentarians to attend a Budget breakfast put on by the Ministry of Finance and Economic Management, at which officials will answer questions put to them by local businesspeople.

Parliament resumes on Monday at 1pm. A second reading of the Budget at that point is expected to give way to open debate.

Afternoon sessions of Parliament (from 1pm) will be held for the duration of next week, but on Friday Parliament is scheduled to sit from 10am to 2pm.

Clerk Nga Valoa says Budget debate typically spans two weeks, but at this stage he can only confirm that Parliament will be in session for all of next week.

Six papers, including newly-drafted customs legislation, are due to be tabled next week.

• Rachel Reeves

The 116-metre Kota Darjah, which at present services Tahiti from Auckland. 12060622

Shipping company Pacific Direct Line has been waiting more than a month for a response from government regarding its application for a licence to operate a large vessel into and out of the Cook Islands upon the completion of the harbour project.

On May 1, the company approached government with a proposal to operate the 116-metre (6245 tonne) ship Kota Darjah (or, alternatively, her sister ship) on the Cook Islands route from August.

”We are still awaiting a decision on this. We hope to have a response soon as time is getting short to fix the charter of the vessel and reposition her from Asia to begin this service in due course. We would hope to be able to work cooperatively with the other licence holder, Reef Shipping, so we can manage our scheduling in order to maintain spacing between the two vessels which will ensure the best possible service for Rarotonga,“ Pacific Direct Line chief executive officer Olivier Ravel told Cook Islands News.

Ravel says PDL is aware of the air draft restrictions and committed to finding a way to ”work around this“.

”We have indicated our willingness to have our vessel leave the wharf and go to anchor to allow the safe passage of arriving or departing aircraft.“

Pacific Direct Line (PDL) resumed its shipping service to Rarotonga two and a half years ago after a 15-year hiatus. Under a joint venture agreement, it worked with Pacific Forum Line (PFL) to operate Forum Pacific, a vessel it was leasing from Reef Shipping.

The PDL/PFL charter on the vessel expired earlier this year, leaving one licence vacant. Now PDL is hoping to recapture that licence.

”At this time we openly stated that our intention was to introduce a larger vessel once the wharf reconstruction was completed and to offer a service from Auckland to Tahiti and Rarotonga. It was made clear to us at the time that the wharf reconstruction was undertaken in order to attract larger ships which would bring long term benefits to the Cook Islands economy and also enable a stable and viable two ship service.

”It is public knowledge that the import volumes in to Rarotonga are insufficient to sustain two dedicated vessels which is why adding Rarotonga to Pacific Direct Line’s already established Tahiti service is a logical initiative. This makes the service commercially viable for the long term and offers importers in Rarotonga the security of knowing they have a reliable, long term shipping option,“ he said.

Ravel says it would be a ”shame“ for the country’s reliance on one ship to continue, when his company is prepared to offer a competing service. He says government seems to be waiting for ”others“ to source a vessel, while his company’s ”genuine application“ sits idly on the table.

”Pacific Direct Line is committed to offering a long term shipping service to the Cook Islands and we hope to have a response from government soon regarding our licence application. It would be a shame to have spent so much money on the reconstruction of the wharf only to have it underutilised because a genuine application to bring through a larger vessel is declined in favour of what others might do.“

• Rachel Reeves

New customs legislation will be tabled in parliament next week.

Following is a background explanation provided by Finance Minister Mark Brown:

The Cook Islands customs legislation is 99 years old. Back before World War I, there were no such things as cell phones, commercial airlines, the internet, and all the other modern technology available today. Consequently the old legislation had no provisions dealing with how to combat international crimes like cyber-crime, which occurs at our borders.

The Customs Act 1913 should have been replaced many decades ago, and uses terminology nobody uses anymore, or would even understand.

This existing legislation does not provide for certain requirements that will put the Cook Islands in line with customs international best practice and promote transparency. This 99-year-old legislation provides limited powers for customs officers to deal with matters specific to the operating environment of the Cook Islands.

The need to have up-to-date legislation has been evident for many years and was highlighted when New Zealand Customs began working with Cook Islands Customs on their modernisation programme (Project Kaveinga) in 2009.

Back in 2009, Cook Islands Customs began with a draft bill, based on the newly developed regional model legislation produced by the Oceania Customs Organisation.

Cook Islands Customs held discussions with the various stakeholders – importers, customs brokers, other government ministries and so forth, to get feedback as to areas of concern and suggestions for improvement. Today, the new and improved customs legislation is ready to be tabled in Parliament.

The changes are substantial in terms of customs modernisation and the ongoing reform which will sustain customs as a modern organisation for the 21st century and beyond.

The new customs legislation also includes a new Tariff Act and Regulations. The bill provides a sound structure for the protection of customs revenue whilst facilitating legitimate trade and travel.

The new legislation will reform the existing legislation in the following ways:

- provides flexible, enabling and empowering legislation that takes a ”whole of government approach“ and ”collective interests“in border management

- both secures and facilitates trade and travel

- assists legitimate traders and travellers and applies appropriate sanctions for those who transgress the law

- makes customs law clear and more easily understood

- complies with international conventions, instruments, protocols or obligations

- provides mechanisms to enhance customs revenue collection, eg audit

- consolidates various customs areas of operation

The benefits of the new customs legislation include:

- addresses modern development that ensures the Cook Islands’compliance with international best practice

- transparency and accountability - clearer procedures to deal with people and baggage

- wider range of appropriate powers to protect the border

- adoption of tools of trade (Tariff HS 2012, Customs Valuation) - easier trade with foreign countries because of uniformed practices in trade

- drafted in modern terminology that makes it easier to read and understand

Minister of Finance Mark Brown says that the new Customs Act is the start of a raft of legislation and bills that the government has promised to update and to table during this term of government.

The government is pleased to be able to table this bill during this sitting of Parliament in order to bring our customs and border management legislation up to modern day standards.

• Release

The Cook Islands Meteorological Service has recorded a low of 16°C on two mornings this week.

On Saturday and yesterday, the office recorded 16°C – bringing the average temperature for the last two weeks to between 19 and 24°C.

The lowest June temperature on record in the last five years is 15.5°C, which was documented on June 16 in 2009.

The cold is the effect of an area of high pressure that has been hovering over New Zealand and sending cold southerly air as far north as Rarotonga.

The temperature is expected to rise this weekend, but to cool down again next week.

”The high pressure system as it slowly migrates to the east will (lighten) the cool temperature over Rarotonga to bring a mild temperature averaging 20 to 22°C in the late evening and early morning and a warm 23 to 25°C during the day as the winds change from a southerly direction to a more easterly,“ the met service’s Maara Vaiimene said yesterday.

He said his office has been receiving floods of calls from people wanting to talk about the cold mornings and evenings, and even some from people wanting to make their own forecasts.

”Something that we should be aware of is that there is a difference between ‘it feels like’ and measured temperature readings based on a standard scale,“ he said.

”The cold evenings and mornings are not unusual as we are moving into our cooler months. This is a good time to check on warm clothing, blankets and hot water bottles as at the moment it is difficult to predict what the outlook in terms of temperature is for the approaching winter season.“

Vaiimene says his office is keeping a close eye on a developing high pressure system to the south of Australia, which is expected to move east toward New Zealand.

”If it maintains the easterly movement then Rarotonga will be in for another cool week early next week. In the meantime keep warm and safe and reach out for a favourite book.“

• Rachel Reeves

Cook Islander Jason Potoru rows with the New Zealand scouts at the Tower Bridge. 12060510

The New Zealand Queen’s Jubilee crew at Hammersmith. 12060507

Avarua Harbour Sea Scout Jason Potoru rowed with a Kiwi youth crew down the Thames River in London as part of the Queen’s Diamond Jubilee Pageant. Deep Sea Scout leader Ron Bird reports from London.

Sunday (June 3) dawned overcast but fine as the New Zealand youth crew, which included Avarua Harbour Sea Scout Jason Potoru, woke at 5.45 to get ready for a quick breakfast before departing their base on board the Lord Amory, a large ship, moored at the Dockland Scout Project at Canary Wharf in central London.

At 6.45am four taxis and a mini bus collected the 17-strong party for the hour-long trip to join other crews in the manpowered section of the pageant for the security and vessel scrutiny checks.

Excitement grew in anticipation of the arrival of New Zealand Prime Minister John Key at 9am accompanied by New Zealand High Commissioner John Leask.

The three New Zealand crews – the Maori waka, the Swift Sure 1 (a replica of a 32-foot New Zealand whaleboat) and the New Zealand uniformed youth organisations rowing a 20-foot gig – were drawn up on the ramp in readiness.

Prime Minister Key was greeted with a waiata and speeches to which he responded before meeting and talking with the 45 participants from New Zealand and the Cook Islands. Then it was down to the water and into the boats for the mile-long row to Putney Bridge where the 250-strong manpowered section assembled.

The various craft including the Canadian canoe, UK-based vaka ama, an Italian gondola,  German rowing craft and other manpowered vessels were held here until they were ushered through the moored columns of a large fleet of powered craft both large and small including some vintage steam-powered tugs and other historic craft.

There was then a two-hour wait as the whole fleet of 1005 craft were assembled ready for the departure at 2.30pm for the seven-mile passage to Tower Bridge.

The New Zealand crew’s boat, Shackleton, was helmed by Potoru for a large part of the trip before he was placed on an oar as a part of a rehearsed crew rotation.

The crew enjoyed the camaraderie of the day with many fun comments passed between the various vessels taking part.

At Albert Bridge Her Majesty the Queen and other members of the Royal Party waved to the fleet as it passed and a roar went up from the very large crowd as the 250 crews stopped rowing and raised their oars vertically up in the air in salute.

It was then on to Tower Bridge, below which a large fleet of square-rigged and other large sailing vessels formed an avenue of sail between which all the vessels passed.

The seven-mile-long fleet dispersed at various points while the crews of the Swift Sure 1 and the Shackleton rowed back to their base at Docklands. They escorted the Maori waka back to their hauls out point and then it was on to the lock with other power-driven vessels which were moored overnight in the West India dock before departing to their various homes the following day.

It was an amazing experience for all concerned.

It took Deep Sea Scouts Sylvia and Ron Bird 13 months and many hours of planning to ensure that their young charges were ready for this event, which included many rigorous security and other checks and requirements by the Pageant organisers.

Businesses beware – there is a new credit card scam out to defraud you.

Westpac Cook Islands is warning its customers of a new scam that has been seen around the Pacific, New Zealand and Australia in the past few years.

The scam involves an email being sent to businesses, primarily in the hospitality and tourist industries.

The fraudster asks to make a large future booking, and offers to pay a deposit in advance. They pay the deposit with a stolen credit card, but a week out from the booking or order the customer will contact the business again explaining they are sorry, but some tragedy has hit and they are no longer able to attend.

They will seek a refund, but to make this an attractive offer or to compensate for their cancellation they will ask for only for half the money back. They will then request the money be refunded through an alternate route, such as Western Union, MoneyGram or a telegraphic transfer. By the time the credit card is listed as a stolen or fraudulent transaction, the funds are recalled and the money has already been sent to the fraudsters. Westpac’s head of relationship sales Joshua Beniston says he sent out a warning letter to his customers because a customer asked him for advice should they receive a letter like this.

”I try to educate proactively with all our clients in the Cook Islands. I want people to be aware of any possible things that may affect them in their business,“ he says. Beniston says there are signs that can indicate a fraudulent email. Business owners should get warning bells when they receive a poorly written email, with bad spelling and grammar.

He also gives advice on how to stop this scam in its tracks, which is to always refund customers the same way they have paid. ”If they pay on a specific credit card it must go back onto that same credit card.“

Business owners should be asking for contact details, making contact over the phone and ensuring they follow the advice of their bank and the requirements under their merchant operating guides supplied by their bank, says Beniston.

”[Business owners] need to utilise the resources and other tools of communication around them to be vigilant and proactive in assessing all business that approaches them. This is not specific to the Cook Islands, this is an on-going challenge in the world we live. Customers just need to follow procedure and policy when it comes to banking services.“

• CS

Casey Poila with his wife Piva and kids Eli and son Tangitepu will be having a fundraiser this Friday to help them relocate to Nassau. 12060448

The northern group island of Nassau is set to have its first Cook Islands Christian Church ministers in many years when minister-in-training Casey Poila and wife Piva head to the island in mid June.

To help cover the cost of relocating to the tiny island – the couple and their Takamoa Theological College family will be holding a food fundraiser at the college behind the USP Cook Islands campus.

The fundraiser is this Friday, June 8, at the Takamoa Theological College where plates of food will be sold for $10 each and include roasted chicken, chop-suey, taro, mayonnaise and rukau.

The decision to send Casey and Piva to the church in Nassau, which has been without an assigned minister for some time due to its remoteness, was determined upon the recommendation of the college principal Rev Iana Aitau.

The couple, of all students currently in TTC, are by far the most suitable for the church, being the only students fluent in the Pukapuka dialect.

This means that Casey and Piva are be able to communicate with the members of the church in Nassau, who also converse in the Pukapuka dialect.

Support the cause and make sure you pick up a plate of food or two from the Takamoa Theological College this Friday.

• Matariki Wilson

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