Dear Editor, Re: Coverage of Minister for CIIC’s refusal to implement Select Committee recommendations (May 19).

To Tatou Vai’s annual report will be tabled in Parliament on Wednesday.

Last year, top executives gave themselves a 20 per cent pay rise. On average each of the six team members pocketed over $126,000.

By law, TTV is a water business, a state-owned enterprise. Wages are not regulated, remuneration is determined by the CEO and Board of Directors.

Given Hon. Albert Nicholas’ assertion, that no ‘amendments are required’ to the To Tatou Vai Act, then user pays to achieve financial independence will remain, and for TTV, its business-as-usual. Chasing commercialisation, the water authority will install 3000 water meters next year. Executing this plan hinges on appropriating another $3 million.

It is now up to the Public Accounts Committee (PAC) to intervene. Cut the capital Budget and TTV’s corporate ambitions will be dead in the water.

Andy Kirkwood

Te Vai 'Ora Maori

Response

Thank you for giving TTV the opportunity to respond to Mr Kirkwood’s letter. I acknowledge that your newspaper reported in a headline that the Minister refused to implement the Select Committee’s recommendations. However, that statement is not correct. The Minister said that no changes are required to be made because the legislation already deals with the Select Committee’s recommendations.

The Board of Directors set the CEO’s remuneration. Mr Kirkwood is correct to say that the salary paid exceeds $126,000. The CEO’s salary is within the band set by TTV’s parent, the Cook Islands Investment Corporation, and reflects Mr Timoti’s qualifications as an engineer and many years of experience.

It is not correct that last year TTV’s CEO gave himself a 20 per cent pay rise. First of all, the CEO has no authority to give himself a pay rise. If he gets one, the Board gives it to him. Second, due to financial constraints it was nothing like the 20 per cent Mr Kirkwood made up. 

Our second engineer is on contract, and while we would welcome the opportunity to secure him permanently, the reality is that he could earn significantly more in New Zealand. His continued contribution involves an element of goodwill, and we are fortunate to have him.

Our third engineer is a permanent employee, a Cook Islander earning well below $126,000. As a qualified engineer, he has chosen to stay and serve his country when he could be earning far more elsewhere. He should be commended, not criticised.

We also have a qualified accountant working well below market rates, whose service speaks to dedication over financial reward.

Mr Kirkwood’s letter would suggest qualified people are breaking down the door to work for TTV. TTV’s challenge is keeping staff and our challenge is getting qualified staff at the rates we can afford to offer.

The Select Committee recommended domestic supply be without charge and commercial user pays. That is not inconsistent with TTV being financially independent. The Government pays the domestic fee on behalf of consumers.  Commercial users pay. This is exactly what the Select Committee recommended.

The metering project was part of Te Mato Vai but was not completed and so TTV has assumed responsibility for it. A significant part of the cost is in regularising the network which was, prior to Te Mato Vai project, a shambolic mishmash of connections. The meters have proved invaluable in detecting leaks and making the network secure and thus improving pressure.

Mr Kirkwood is correct that ongoing progress depends on budget appropriations — this has always been acknowledged. But as long as funding is secured, the project will continue delivering long-term improvements to our national water infrastructure.

To Tatou Vai remains committed to transparency, operational sustainability and delivering a water network Cook Islanders can rely on.

Kind regards,

Brian Mason

To Tatou Vai

Chair