February 2014

February

2014

Vol. 40, No. 2

Contents Interview

33 “Carbon bubble” threatens to be destructive to the planet

Culture

34 Tattoo business takes off in Samoa The gift the Fijians gave away

Health

35 New mag shines light on Pacific’s health issues Alarming stats for islanders

36 Memory loss linked to starch and sugar-laden diets A big worry for Pacific islanders

Environment

THE FLOSSE-TEMARU BATTLE: The fight over French Polynesia’s future. Cover report—pages 16-23. Cover photo: Nic Maclellan

37 More cyclones loom for the region?

38 Wetlands and agriculture— partnering for sustainability 39 Measuring sea level rise in the Pacific Crucial for decisionmakers

Cover Report

16 The Battle for French Polynesia’s Future

Regular Features

18 Flosse taps Beijing-Tahiti connection for increased tourism 22 France’s nuclear legacy haunts French Polynesia

5 Letter from Suva 6 Views from Auckland 7 We Say 12 Whispers 14 Pacific Update 40 Business Intelligence

Flosse and Temaru debate economic reform, independence and the nuclear legacy

Politics

24 Major fraud investigation moves into high gear Local pharmacy, govt ministries under probe

25 PNG launches first national security policy

Security institutions neglected: O’Neill

26 Gov Inos deals with land issues US withholds transfer of 5 offshore lands

27 New Kiribati MP to be the next Speaker?

Parliament to decide in March or April

Business

28 Cobalt in Cooks awaits exploitation Could supply 10% of global supply 28 Brazil coffee oversupply to hit PNG/Vanuatu Global production to exceed demand in 2014 30 Good news for the Pacific EU aid cuts won’t hit region Islands Business, February 2014 3

Managing Director/Publisher Godfrey Scoullar Group Editor-in-Chief Laisa Taga Group Advertising & Marketing Manager Sharron Stretton Staff Writer Robert Matau Graphic Design Dick Lee Virendra Prasad Main Correspondents Australia Rowan Callick

The Pacific’s Best...

Nic Maclellan

VOL 1 2014 AIR NIUGINI INFLIGH T WITH

Davendra Sharma Fiji Samisoni Pareti Dionisia Tabureguci French Polynesia Thibault Marais Marshall Islands Giff Johnson New Zealand Dev Nadkarni Jale Moala Ruci Salato-Farrell Duncan Wilson Niue Stafford Guest Papua New Guinea Baeau Tai P Sam Vulum Patrick Matbob P Peter Niesi Solomon Islands Evan Wasuka Alfred Sasako T Tonga Taina Kami-Enoka T V Vanuatu Bob Makin Islands Business is published monthly by Islands Business International Editorial & Advertising Offices Level III, 46 Gordon Street, PO Box 12718, Suva, Fiji Islands.

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www.islandsbusiness.com Islands Business, February 2014

Editor’s Notebook

Letter From Suva

BY LAISA TAGA, EDITOR-IN-CHIEF

The West Papua debate: How will MSG dance?

Two regional conferences are taking place in Melanesia this month. And although they attract different participants, they both share a common denominator; it’s about the people of the Pacific determined to take control of their own destiny.

Initial plans were for both the Special Summit of Leaders of the Melanesian Spearhead Group (MSG) and the biennial Congress of the Pacific Islands News Association (PINA) to be held at the same week but at different countries; Vanuatu capital, Port Vila, for the MSG Special Summit and in Noumea, the capital of the French territory of New Caledonia, for the PINA Summit.

In fact, the PINA executives had invited the Director-General of the MSG Secretariat, Peter Forau to be the keynote speaker at their Noumea Congress. But Forau declined saying he was busy organising the special summit.

The MSG Special Summit will be Forau’s most important. Because at stake is the credibility of this 25-year old alliance. Leaders of the pro-independence movement, the FLNKS in New Caledonia, and heads of government in Papua New Guinea, Solomon Islands, Fiji and Vanuatu will have to show that they are in full control of their organisation and its destiny.

Letter from Suva understands the instruction issued by the chairman is that only leaders of the full member countries will attend this meeting.

While the MSG relies on friendly and wealthier countries like China to fund their existence, Melanesian leaders need to show that they, not the wealthier nations, dictate the operations at the MSG. Already there have been accusations levelled at the MSG that Indonesia (an observer member of MSG) is doing exactly what Australia has been doing to the Pacific Islands Forum—and that is dictating the operations of MSG. A very senior MSG official once told Letter from Suva, that if the MSG is not careful, it will see Indonesia dictating its agenda—because it has the money and the clout to do so.

At last year’s MSG meeting in Noumea, the Indonesian delegation hired a boat and forced its way to the island where the leaders were

having their retreat without even acknowledging the protocols of retreats—where only full members are allowed to attend and it is only the leader of the MSG nation and one official that can do so.

Accusations that it has been hijacked by foreign interests did not come from external sources, but right from within the MSG itself.

A founding member of the alliance and host of its secretariat Vanuatu was furious at the way a fact-finding mission to West Papua was handled by the MSG Secretariat recently.

Instead of it being a mission to ascertain whether the West Papua National Coalition for Liberation (WPNCL) should be allowed full membership of the MSG as was decided by the Noumea MSG Leaders Summit in June 2013, the programme was changed to make it look like a trade and economic trade mission to Indonesia, Vanuatu claimed.

The programme as agreed to by the Indonesians only included a flying and fleeting visit to Jayapura, the provincial capital of what Indonesia has now called Irian Jaya.

There was no meeting scheduled with the hierarchy of the West Papuan independence movement nor with the civil society organisations that work in the region.

Instead, the MSG delegation was to visit two other provinces and paid a courtesy call on the Indonesian President Susilo Bambang Yudhoyono, where they signed a statement assuring each other of the principle of non-interference in each other’s internal affairs.

Hijack by Indonesians Interviewed on Radio Australia’s Pacific Beat radio programme on the week of the MSG Foreign Ministers’ visit to Indonesia, a clearly angry Foreign Minister of Vanuatu, and himself a former Prime Minister of his country, Edward Natapei, decried the change as “a hijack by the Indonesians”.

With the obvious blessing of his PM, Moana Carcasses Kalosil, Natapei refused to travel with the delegation to Jakarta, sending a special envoy instead.

As Islands Business went to press, dates for the special summit were yet to be confirmed.

Initial dates of February 10 to 15 were deemed untenable by some Melanesian leaders.

In addition, Fiji reportedly had objected to the hosting of the summit by Vanuatu. Protocol it argued dictates that the current chair of the MSG should play host, and since the FLNKS hierarchy has indicated it was not ready to do so, they had approached Fiji to be the host instead The history of the MSG is clear. It was founded in the wave of nationalism and independence that swept through the Pacific in the late 1970s and early 80s.

In fact, asserting the independence of Melanesia is enshrined in the MSG Constitution, and the founding fathers of the alliance have already bestowed a precedent on the current leadership in the form of full membership of its current chair, the FLNKS of New Caledonia.

PINA MEETS UNDER NEW RULES

Noumea, of course, is the host of this month’s biennial summit of PINA. Constructive Engagement for a Stronger and Responsible Pacific Media is the theme of the conference and up to 150 delegates from across the Pacific are expected to be in attendance.

Workshops on social media, Pacific tuna, Pacific sports and media self-regulation are in the agenda.

Big donors like the UNDP and the AusAidfunded Pacific Media Assistance Scheme will be in attendance, no doubt keen to consider future alliances with the media body.

The Noumea Conference is special in a number of ways. It will be the first time PINA is convening under a new status. No longer is it registered as a non-governmental organisation in Fiji.

Under legal advice, PINA is now a limited company. This means its current President, Vanuatu’s veteran journalist, Moses Steven, and Vice President, Michael Jackson (no relation to the late American pop star) of Niue, will continue in their positions for two more years to see the transition through.

Elections will only be held for industry representatives in radio, newspaper and television in the PINA board.

Over the years as PINA adjusts to the everchanging environment of greater public regulation, fierce competition and evolving technology especially with the impact of social media, casualties unfortunately have been PINA’s own membership.

The challenge for the media’s bigwigs of the Pacific in Noumea this month will be seeing how to mend the bridges and build a stronger and more united regional body.

Islands Business, February 2014 5

Column

Views from Auckland

BY DEV NADKARNI

The Davos charade

plunged head-long into free market-driven policies and that’s also when globalisation began in right earnest.

The report also points out a more recent phenomenon: in the United States, the wealthiwith the haves, but most plead their inability to est one percent cornered 95 percent of the post As the world’s super rich and ultra infludo so because of all sorts of reasons, blaming it global financial crisis growth, while the bottom ential movers and shakers rub shoulders at the on the system, legislation, political compulsions, 90 percent became poorer. hardy annual that is the World Economic Forum commercial sensitivity and legal issues.

Which only means that no lessons have been in Davos, Switzerland, the champions of the This is a cop out. When it suits them, these learned from the global financial crisis and that world’s have-nots do everything they can to give same movers and shakers leave no stone unturned the financial world is well on its way back to its them as big a guilt complex as possible. in the pursuit of their personal or corporate goals, old habits.

But in a world in which Gordon Gecko and often cutting legal and legislative corners to One asset manager speaking at a panel discusThe Wolf of Wall Street—who have no use for amass billions of dollars in profits, commissions sion in Davos said that some banks were still anything even remotely resembling a moral and bonuses. leveraging as much as sixty percent of their capital compass—are role models worthy of emulation, Often, this is paid for by taxes from that very in dealing with risky financial products like the is there anything that could entice them away bottom half for whom they profess sympathy, GFC-tainted derivatives. from the dollar paved path leading to the temple wearing their hearts on their sleeves at events Irrespective of what the real motivations of the goddess of greed? like Davos. behind the timing of the Oxfam report were, This year, a bleeding heart NGO used statistics The Davos meeting gets together some 2500 it succeeded in bringing the debate around the with some effect. Just before the January forum, of the world’s top political and business leaders, relevance of the annual Davos event into the the global media went wild with stories about the intellectuals, academics and journalists, among public discourse just before and after the high world’s 85 richest people having as much wealth others to discuss some of the most urgent issues profile meet. as the poorest half of all humans on earth. the world faces—and that includes poverty, health While the gathering no doubt brings some of The Oxfam report, which sought to highlight the world’s most influential people to the rising inequality across the world also found snowy Swiss destination every January, its that just one percent of the world’s populatrue potential as regards to making a position owns 65 times the total wealth of those tive difference to the world’s most disadin the bottom half of wealth distribution. vantaged—which indeed is its touted raison This one percent owns some $110 trillion— d’etre—remains grossly under-utilised. about half the world’s accounted wealth.

Small wonder, then, that critics rather While economists and analysts are harshly contend that it is a place to achieve divided on the assumptions, premises, little more than strengthen the old boys’ methodology and even sources on which network. these statements are based, the report has Interestingly, at about the same time as brought back to centrestage debates such as this report made the rounds of the global whether true egalitarianism in free market media last month, Microsoft founder and democracies is achievable realistically; if the world’s wealthiest man Bill Gates said dire poverty can really be wiped out within a capitalistic framework; if a more equitable Pope Francis...addressed the Davos jamboree telling the influential that there would not be any poor country redistribution of wealth can be achieved attendees to ensure that humanity was served by wealth, not ruled by it. by the year 2035.

He said there were more desperately democratically to avoid utterly preventable Photo: www.freedomoutpost.com poor countries while he was growing up problems that plague over a billion huand the environment, besides others. than there are today. mans—such as hunger, health, shelter, hygiene, While Davos serves as the place to be for In 20 years time, there would only be a handful education and livelihoods. the world’s political and financial glitterati, it of abjectly poor nations, he believes. Clearly, the This year, Pope Francis addressed the Davos also generates a great deal of intellectual debate definition of ‘poverty’ needs an upgrade. It’s all jamboree telling the influential attendees to around it. a matter of perspective. ensure that humanity was served by wealth, not Yet, it has little to show in terms of the differAs a perceptive economist puts it: a person in ruled by it. ence it has made to the mass of humanity whose a poor country can get into a debt of say $10,000 The Pope called for “…decisions, mechanisms cause it purports to champion. But then, all the and pay it off over a lifetime because of the high and processes directed to a better distribution of mutual backslapping seems to have certainly interest and his low income. wealth, the creation of sources of employment made a difference to the likes that attend the A person in a rich country can possibly get into and an integral promotion of the poor which event. a debt of $200,000 and pay it off for a lifetime goes beyond a simple welfare mentality”. Also Consider this: According to the report, the despite lower interest and his higher income among the other sideshows, I believe there were world’s richest one percent increased their share (but because of the comparatively higher cost meditation sessions, which the participants could of income between 1980 and 2012 in 24 out of of living). attend to develop ‘mindfulness’. the 26 countries where data is available.

The difference is that the person in the rich All very noble and humbling initiatives, indeed Believe it or not—and this may or may not country has the choice of getting into more debt —but can such altruistic intention be translated be coincidental—that is almost exactly when because of willing lending banks. But at the end into action that can make a difference? the annual Davos event started. Before that, say of it, what their net worth over their lifetimes is Some eminent non-business leaders who atstatisticians, the wealth gap between the rich and zero—the assets are all essentially owned by that tended Davos have said that nearly every attendee the poor was not as wide as it is today, meaning top one percent of the world’s richest. they interact with agrees on a personal level that that inequality levels were far less then.

See you at next year’s meeting to save the something needs to be done to bring the downIt also coincides with the time that the world world. trodden half of the world’s population up to speed 6 Islands Business, February 2014

WESAY ‘The counterfeit goods industry is so sophisticated that it is often impossible to distinguish between the real deal and the spurious pretender. It is also cunningly stratified to cater to different sizes of consumer pockets…This is a common occurrence in markets with poor governance structures, especially for goods of high value brands like Swiss watches’

L

ast month, the United Nations launched a global campaign to highlight the extent of the growing rampancy of trading in counterfeit goods and its irrevocable link with organised crime, thus posing great risks to the international community.

According to the world body’s estimates, the volume of trade in counterfeit goods amounts to a whopping US$250 billion a year, which is more than the combined GDP of dozens of nations put together. And these are only estimates. The real figure might be far bigger, going by the extent of such trade across a wide swathe of product categories and its geographical spread. To put this scenario as alarming is to put it rather mildly.

One might be forgiven if one assumed counterfeit and spurious goods is the domain of petty dealers in cheap, poor quality merchandise coming from countries with poor governance systems.

While that may well be a valid assumption, the counterfeit trade is by no means restricted to cheap goods and poorly governed nations. Trade in spurious goods ranges from sophisticated aircraft parts and high tech information and communication technology components to every conceivable consumer item including food, drink and even medication.

The general public perception is that spurious goods that bear fake labels of famous, time tested and quality assured brands that are instantly recognised and respected all across the world are basically a copyright and intellectual property issue.

People therefore take it lightly and are usually more than willing to buy near look-a-likes of famous brands for a price that is often a fraction of that of the branded item. This is particularly true of impulse purchase products like garments and fashion accessories.

The counterfeit goods industry is so sophisticated that it is often impossible to distinguish between the real deal and the spurious pretender. It is also cunningly stratified to cater to different sizes of consumer pockets.

For instance, copies of timepieces of famous brands are available in a range such as ‘near similar’, ‘almost similar’ and ‘plain copy’ of the original with different pricing levels—but all bearing the same copied brand name. This is a common occurrence in markets with poor governance structures, especially for goods of high value brands like Swiss watches.

Most tourists might well be content that they can bag a great deal when they travel to countries that are known for such grey

markets. The big brand labels that they get to show off back home look pricey and might be status enhancing for the wearer—all at a bargain if not a rock bottom price.

Who cares if it’s not the real deal so long as it looks almost exactly like the real thing? And why pay more for the genuine article anyway—to feed the fat cat owners and their high maintenance lifestyles? Most consumers tend to rationalise their action in this way.

The moral and ethical aspects of supporting the counterfeit goods trade might depend on individual worldviews, value systems and social mores. Moreover, as we all discover sooner rather than later in our dealings in everyday life, even the so-called conscience is at a discount these days. So it is quite easy for people to look the other way and develop apathy to this aspect because after all, it saves money while doing the job.

But what most people do not realise is this: supporting the counterfeit industry is not only ethically and morally questionable, robbing private organisations and governments of valuable revenue but is positively dangerous to the world at large, including the users of such goods themselves. Robbing governments of duties and taxes means less revenue for governments to work with, resulting in poorer services and increased taxes on individuals.

Since most people who deal in spurious Counterfeit trade goods work below the official radar, they are US$250 billion irrevocably linked to criminal networks who a year cannot be brought to book should anything go wrong.

Supporting them is tantamount to actively supporting crime.

Counterfeiting undoubtedly feeds money-laundering activities and encourages corruption. The United Nations’ report says there is also evidence of some involvement or overlap with drug trafficking and other serious crimes.

If even that is not a convincing argument for some to desist from supporting the spurious goods trade, consider this: The counterfeit trade extends far beyond innocuous goods like garments, watches, fashion accessories and household knickknacks.

It encompasses far more critical and sophisticated products. The United Nations lists vehicle tyres, brake pads and airbags, airplane parts, electrical consumer goods, baby formula and children’s toys as being routinely counterfeited around the world.

The food that you feed your baby, the vehicle you drive around Islands Business, February 2014 7

WESAY your family in, the plane you travel for business and holidays, the electrical appliances in your home—all pose a grave risk to you and your dear ones if they have not followed standards laid down by industry authorities and safety departments of governments. When you support spurious goods by buying them, you are actually putting yourself and your family at tremendous risk.

But probably the worst risk is presented, especially in poorly resourced nations as those of the Pacific Islands region, by counterfeit medicines. By all counts, criminal activity in spurious medical trade and fraudulent medical consumables from East Asia and the Pacific to South-East Asia and Africa alone amounts to some US$5 billion a year, according to the United Nations.

“At the very least, fraudulent medicines have been found to contain no active ingredients, while at their worst they can contain unknown and potentially harmful chemicals,” says a United Nations Office of Drugs and Crime.

The list of fraudulent medicines ranges extensively from ordi-

nary painkillers and allergy countering antihistamines, to ‘lifestyle’ medicines such as those taken for weight loss and sexual dysfunction, to life-saving medicines including those for the treatment of cancer and heart disease.

The most unfortunate part in this piece is that most poorly resourced countries have neither the mechanisms nor the trained and qualified human capacity to detect spurious medicines reaching their shores.

This coupled with poor governance measures, widespread corruption, poor consumer awareness and the lack of alternatives conspire to form a deadly cocktail that can put entire populations of small countries at risk of disease and death.

In the interest of one’s own safety and security, it is important to stop supporting the counterfeit trade at the individual level. Only such individual action can build into a collective action to pressurise governments into taking firm and effective steps towards curbing counterfeiting to any appreciable level to make a difference.

‘Pacific islanders are today among the worst sufferers of lifestyle diseases, something that was largely alien to them a couple of generations ago. As things stand today, if one goes by the statistics, the situation is already out of control with precious little being done to reverse this disturbing trend’

F

rom being among the healthiest humans anywhere in the world when the western world discovered the islands not so long ago, people of Pacific islands origin find themselves at the very bottom of the heap when it comes to health related statistics in today’s times.

This alarming decline in their general health has taken place in the space of not more than a couple of generations. As things stand today, if one goes by the statistics, the situation is already out of control with little being done to reverse this disturbing trend.

Pacific islanders are today among the worst sufferers of lifestyle diseases, something that was largely alien to them more than a couple of generations ago.

The reasons for this concerning state of affairs are not far to seek and though these are several, they should not be viewed in isolation—the present situation is because of a combination of factors.

Historically, when the world was a far less connected place, isolated populations were self-sufficient. They grew their own food, were perfectly adapted to their environment, lived in harmony with their ecosystems and free of the compulsions of unbridled consumption of consumer goods.

Having evolved over hundreds of years, communities had a struck

8 Islands Business, February 2014

an equilibrium with their natural surroundings.

This way of life entailed hard physical labour, making the ideas such as the modern pursuit of fitness a part of everyday life. It also resulted in people partaking of food they grew with their own efforts, using little or no artificial chemical input. Their wild catch was then free of pollutants, additives and preservatives—a far cry from what is available today.

As the world became more and more connected and commerce began to flow into the islands, people were exposed to a range of ills that today have become the bugbear of their lives. For one, early Westerners brought diseases which were unknown to islanders and to which they had little or no resistance at all. Unfortunately, this trend has continued on to modern times where tourists and foreigners continue to bring new ailments into the islands, whether they are communicable diseases or those of the more insidious non-communicable variety.

Globalisation has led to the dumping of low quality, cheap foods on to the poorer, more disadvantaged nations like those of the Pacific islands region. After nearly two decades of having dumped fat-laden meat of poor quality, islands administrations have now begun putting restrictions on such imports.

WESAY Looking at the health statistics of their citizens, one wonders whether these measures are too little too late at this stage.

Migrations in large numbers have caused able-bodied young people to live and work in distant countries leaving larger populations of the elderly and the very young back in the islands. This has left these countries bereft of able hands for tasks like growing food. The gap here has been happily lapped up by the suppliers of cheap, highly processed imported foods that are laden with excessive amounts of sugar and fat.

The deleterious effects of excessively high sugar and fat are too well known, being responsible for lifestyle diseases like diabetes, hypertension, heart disease and obesity. But what is even more alarming is the effects of such diets that an increasingly larger numbers of Pacific islanders depend on.

A detailed study of such highly sugar-laden Lifestyle disease foods of the type available cheaply in supersituation markets and fast food restaurants in an Ausout of control tralian university has raised alarm that a diet full of saturated fat and sugar could instigate immediate effect on the brain’s cognitive ability and cause memory loss.

Long-term spatial memory loss has been conclusively linked to diets chock-a-block with starch and sugar. This is a severe warning to Pacific islanders who are known to be high consumers of such highly processed, excessively sugar and fat-laden foods.

The interesting part of the study—covered in more detail elsewhere in this issue—is that it has a Pacific islands focus, connecting many of the findings to the situation many Pacific islanders find themselves in, no matter where they live, whether in the islands, New Zealand or Australia.

It sets out clearly what foods are suitable to Pacific islanders’ diets and what are not. This is important to be taken note of because

under the processes of globalisation, it is only prices and markets that dictate food consumption in poorer countries rather than their suitability to the consuming public.

It is no overstatement to say that the situation is alarming. It has been known for some length of time now that Pacific Islanders are among the most obese people on the planet, with occurrences of the ailment reaching levels of as much as 80 percent of the population in some countries. This has led to run away incidences of diseases like diabetes, hypertension and heart malfunction—and that too in a situation where the countries have neither the infrastructure nor the human capacity to deal with the problem.

Because of the complex nature of the problem and the multiple reasons responsible for it, any action that seeks to counter the situation would need to be a multi-pronged one.

Education, infrastructure, capacity building and encouraging people to go back to basics—their traditional diets to which they are genetically attuned has all to be undertaken on a war footing.

While that would certainly need funding, which could possibly be obtained, it is impossible to obtain any funding for political will.

That, which is always in short supply, needs to be provided by the region’s leaders. Other initiatives will then follow relatively easily.

All, however, is not lost. As the study points out, some countries are doing more than others in combatting obesity and ushering in a climate of convincing people to go back to natural foods. One of these is Vanuatu.

Fiji too has had a programme for some time now. Other countries, particularly in Polynesia, where the incidence of obesity and lifestyle ailments is highest in the Pacific, need to take things up immediately and decisively.

On the education and awareness front, it is good to note that a new magazine dedicated to Pacific islanders’ health has been launched in New Zealand, which hopefully will be accessed online throughout the Pacific.

‘…Vanuatu is forcing the rest of the MSG to take a stand on West Papua—something that is bound to test the integrity of the grouping in the months and years to come. Its boycott of the leaders’ visit to Indonesia, which incidentally has observer status in the MSG grouping—is rooted in its conviction and clearly not mere politicking’

T

he apparent cohesiveness among the MSG (Melanesian Spearhead Group) member nations suffered a body blow last month when Vanuatu firmly and unambiguously boycotted an MSG leaders’ official tour of Indonesia.

This is the first time that such open dissent in the group has hit the news headlines since the formal establishment of the inter-governmental organisation in 2007, though there have been rumblings of dissent on other issues before.

In 2010, it was the only nation in the MSG grouping that failed to Islands Business, February 2014 9

WESAY attend the ‘Engaging Fiji’ meeting, which was held in Fiji and which The people of the large resource-rich region, which shares a leaders from Papua New Guinea, Fiji, the Solomon Islands—the border straddling the entire width of the island north to south three other major member nations of the MSG—attended along with Papua New Guinea, have been callously and violently supwith the leaders of Kiribati and Tuvalu. pressed for more than two generations now and their Indonesian The meeting was perceived in the media as an alternative to the masters continue to plunder their natural wealth under the most annual Pacific Islands Forum leaders’ meeting. Fiji stands suspended controversial of methods. from the Forum grouping. Vanuatu was conspicuous by its absence.

Vanuatu has always held the cause of the West Papua people close The country has a history of standing its ground on principles to their hearts and rarely shied away from supporting it vocally. This and in support of what its people believe in. is not to say that other countries of the MSG grouping have not.

Its opposition-led boycott of the MSG leaders’ visit to IndoneTheir support has always been muted compared to Vanuatu’s. sia is based on its strong belief in the West Papuan cause, which But it is surprising that Vanuatu had to go on this boycott on its unfortunately has a few friends and own, without even so much as a murmur supporters internationally. from its co-members of the Melanesian This is despite a consistent stream brotherhood. of reports about human rights abuse, In standing firm and standing alone, the mysterious disappearance of the country has risked opprobrium from activists and journalists, the rampant Indonesia, a key trade partner for the looting of natural resources in colluMSG as a group and a co-signatory to a sion with Indonesian authorities and number of accords including the region’s the ruthless silencing of dissenting fisheries. voices for decades now.

It is unlikely that Indonesia would conIt must be said, though, that there template isolating it in any way because it is a growing number of non-governshould know that as a bloc, the MSG is ment organisations and activists lendstrongly united and would not brook mising their voice to the West Papuans’ treatment of any of its member nations. unfortunate plight, particularly in How it has stood for Fiji in the face of New Zealand and Australia. adverse regional reaction is a case in point.

West Papua delegates...at the 2013 MSG summit held in Noumea, New Within the Pacific Islands region, Caledonia. Photo: Nic Maclellan.

Earlier last year, Natapei, then the however, Vanuatu happens to be the Leader of the Opposition, demanded the only sovereign state that has assiduwithdrawal of the Kilman-led Vanuatu ously stood up for the people of West Papua and their cause since Government’s cooperation agreement with Jakarta and also appealed its independence. to the MSG leadership to review Indonesia’s observer status in the It’s founding Prime Minister, the late Father Walter Lini, had said Melanesian Spearhead Group (MSG) ahead of last year’s Noumea Vanuatu would never be fully free until other colonised countries meeting. including West Papua were politically freed.

That might have clearly incensed the powers that be in Jakarta.

Vanuatu’s boycott of the leaders’ visit to Indonesia is rooted in its Last month’s action might well prove a turning point in Vanuatu’s conviction and clearly not mere politicking. relationship with not only Indonesia but also within the MSG, The joint visit by Melanesian leaders was decided last year at the though the MSG Secretariat has refused to comment publicly on MSG leaders’ summit that took place in Noumea, New CaledoVanuatu’s stand. nia. The purpose of the meeting was to examine the status of the While West Papuan activists and leaders welcomed Vanuatu’s province of Papua—something that would have greatly interested stand and continuing support, they also said that a crackdown on the Vanuatu delegation because of the country’s deep and abiding their activists ahead of the MSG leaders’ carefully choreographed interest and its concern for the people of West Papua. mere half-day visit to Jayapura in West Papua, prevented any of them interacting with the visiting leaders.

According to Vanuatu’s Foreign Minister In Natapei’s words, the MSG leaders’ agenda was hijacked and MSG and former Prime Minister Edward Natapei, as the West Papuan leaders alluded to, the leaders met people and cohesion the agenda in West Papua was not revealed visited places that the Jakarta administration wanted them to see. in doubt? until the very last moment and when it was, Vanuatu is already a staunch supporter of the West Papua National Vanuatu found that the Indonesian hosts had Coalition for Liberation, which is the organisation representing ignored the conditions on which Vanuatu had agreed to participate the people of the territory, to be admitted to the MSG in the same in the high profile mission. capacity as New Caledonia’s FLNKS (Front de Libération NatioVanuatu had said it would only be part of the delegation if it were nale Kanak et Socialiste or Kanak and Socialist National Liberation given the opportunity to meet West Papuan civil society and proFront). independence groups, church leaders and others concerned with It is not a demand that will go down well with Indonesia and the alleged human rights violations in the beleaguered territory. remains to be seen as to how the MSG Secretariat will react, when That request was ignored, which the delegation found out on the push comes to shove. eve of its departure to Jakarta.

In the meantime, Vanuatu is forcing the rest of the MSG to take a That is when Vanuatu pulled the plug. stand on West Papua—something that is bound to test the integrity Vanuatu must be commended for its principled stand, rooting for of the grouping in the months and years to come. people of its ethnicity, which have been much wronged following unfortunate historical circumstances.

• We Say is compiled and edited by Laisa Taga.

Islands Business, February 2014

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Whispers Sacrificial lamb...That’s the whisper doing the cocktail rounds in a South Seas metropolitan following news that accomplished diplomat and former Fijian foreign minister Kaliopate Tavola is in the running for the SG (secretary-general) job at the region’s “premier regional body,” the Pacific Islands Forum Secretariat. Melanesian members of the Forum said last month that Tavola is their candidate when incumbent, retired Samoan judge Neroni Tuiloma Slade, completes his final term by the end of the year. It is not the first time that Tavola’s name has been tossed into the ring. But that is not what’s generating the most discussions.

Rather, it is the perplex ion as to the real motive of his candidature. After publicly endorsing Fiji’s move to form a new regional body to rival that of the Forum, and being the chief architect of the programme of Fiji’s Pacific Islands Development Forum (PIDF) last year, the whisper is whether PIDF is now being abandoned for PIFS or whether a bigger motive is at play here. Another popular whisper is whether the veteran diplomat should have allowed himself to be used in the politics of regional diplomacy and rivalry. The last time his name was put up as a candidate, he was abandoned at the altar because those leaders that nominated him did not fight hard for him—and that happened at the 2011 Pacific Islands Forum meeting held in New Zealand.  So long Peter? Popular and Papua New Guinea’s top man in Fiji may be leaving the country much sooner than expected. The whisper is that the host country has declined any extension to his visa, so the veteran diplomat is packing and is returning home soon. It appears the diplomatic faux pas over the high commissioner’s role as dean of the diplomatic corps in Fiji isn’t really water under the bridge now. Late 2013, the diplomat was recalled to Port Moresby after Fiji raised issues about his performance as dean. On his return early January, the host government said the diplomat was not returning as dean “following conscientious consideration of various incidences of diplomatic impropriety and discourtesy, both directly displayed or inferred upon Fiji.” It may have been undiplomatic “displayed or inferred” to elaborate on what was meant by “incidences of diplomatic impropriety and discourtesy.” The whisper now is that with his imminent departure, another Pacific diplomat—from Kiribati—will take up the honorary position of dean.  Travel ban...So who’s the representative of a foreign donor who was turned away at a regional airport recently when he checked in to fly out?

Red-faced border control officers said a no travel order had been placed on the senior official’s name and he would therefore be restrained from taking his international flight. The official, it has been whispered, has just completed a few weeks 12 Islands Business, February 2014

In search of Mr Lavalava: the Pacific Warrior Looks has a lot to do with it, then there’s the “six pack”, that devilish smile, oh and should know how to woo a girl or this time two girls, Pani and Pani of the popular Fresh programme on New Zealand’s TV2.

This is the Samoan search for Mr Lavalava who will eventually become the Pacific Warrior. It’s a tough job the popular comedians say but “....someone has to do it...”

So off they went and the first stop was the Cook Islands where 10 young men were met with various challenges. They’ve decided on their Mr Lavalava there and then it was Samoa’s turn and the Samoa tourism Authority was asked to help with the selection of the different challenges.

Although they said that looks had little to do with the search, that was a fat lie—the young men who were vying for the challenge were good built, good looking and could have all won the search but as they say, only one can be the victor, so the challenges provided were bound to separate the competitors. After all, the winner of the Pacific Warrior—will become the first fulltime male models for the MENA’s wear—an international clothing line that’s become a household name in New Zealand and other parts of the Pacific.

The first challenge was the “pick-up” line, where the boys would try and woo Pani and Pani if not with the pick-up lines then try to pick them up physically and that could very well present the biggest (excuse the pun) challenge of the competition. Other challenges were more traditional like climbing the coconut tree and weaving baskets, things that boys in the islands are supposed to do, yeah, righ—many of the boys failed in these categories. The search covers the Cook Islands, Samoa and Fiji and it took a whole week to find that Mr Lavalava for the Pacific Islands Warrior which will bring together the finalists from the Cook Islands, Samoa and Fiji in New Zealand. of vacation with his family at an island away from the main island. He was told that only the top office on the land would be able to over-rule the computer stop travel order. On turning up at the top office the following day, the senior official was told that no such order had been issued by the said office, and that he should be able to travel any time he wanted. Is it another computer error or a mild reminder that ‘big brother’ is watching?  Airline watch: So which national carrier chief had to fight off accusations of sexual harassment with an airline crew amidst a flight over the Pacific Ocean? And which airline saw two of its senior executives being given their marching orders without any notice and escorted by security officers out of the airline’s premises?

The whisper is that one of the two executives had described himself as the official “hirer and firer”. Now no one can argue against him when

it comes to the feelings of being at the receiving end of the firing line!  Top cop on the beat: Fiji’s former top warden and former top cop is the country’s new Ambassador at Large. This diplomatic position, Whispers has been told, has always existed but it has not been filled for several years now.

One of his first roles was to accompany Fiji’s most senior Ambassador, Isikeli Mataitoga on a fact-finding mission to New Zealand. Mataitoga is currently Fiji’s Ambassador in Japan. Ambassador at Large Iowane Naivalurua is also expected to work on the proposed Pacific-wide tour of the country’s President.

The whisper is that as one of the highest ranking soldiers in the country, Ambassador Naivalurua will also spearhead Fiji’s campaign to be offered the position of Commander of UNDOF, the United Nations Disengagement Observer

Whispers Force, currently deployed in the Golan Heights in the borders of Israel and Syria.  Banking drama: It’s not so often that one finds someone without academic qualifications in the Office of a Prime Minister of any country nor does one find someone in such an office so generous…until now, that is. In a particular Melanesian country, there is one. Although the man in question does not read or write, he was hired by the Prime Minister of the country in question. His contract was drawn up by others.

Recently, the man in question, asked a colleague to go to the bank for him. He instructed the colleague to write out a bank withdrawal for $5,000.

Obediently, his colleague filled out the form, but instead of $5,000, he slotted one in front of the digit 5, so that instead of $5,000, the amount to be withdrawn was now $15,000. No problem at the bank. He brought the money back but instead of giving the full amount, he gave the passbook owner just $5,000. He pocketed $10,000. The passbook owner turned around and gave his colleague another $1,000. You might consider changing job!  EPA negotiators? What’s happening to the key people leading EPA negotiations in the region? Could it put the whole EPA negotiations at a disadvantage? In Tonga—Lisiate ‘Akolo once the lead spokesperson on EPA—has been booted out as finance minister and in Samoa—two assistant ministers involved in the negotiations are facing court action.

is a tremendous achievement for the people of Tabiteuea North island, who practiced open defecation and stopped by constructing their own toilets using local materials and using them.”  Let’s protect our taro: Samoa/Fiji rivalry does not seem to end. Now it’s gone to taro.

In a local Samoan online news, one Samoa MP said: Protect our new taro varieties—Fiji might take them.” Fiji has profited from cultivating the Taro Niue, a variety from Samoa, which they sell overseas—to Samoans there.

Fiji has controlled the overseas market when the Samoan variety was wiped out by the taro leaf blight in 1993 and since then, vigorous research has produced several local varieties similar to what was ‘Taro Niue’ which are not susceptible to the blight.

“Protection was needed in case our new varieties, bred from local taro, are grown in Fiji,” the Opposition MP said. But Agriculture Minister Le Mamea Ropati said our many varieties came from taro from other countries.

Former Agriculture Minister Tuisugaletaua Sofara Aveau supported this saying one variety the ‘Talo Fili’ was created from taro from the Philippines.

“Exchange was not a bad thing,” Le Mamea said. It needed only a piece of leaf to reproduce a taro plant, he said.

Aveau has also urged government to appeal to Samoans in Australia and New Zealand to buy taro from home to benefit relatives here and our country. Well-known is the preference for Samoans in New Zealand for Taro Niue from Fiji. 

 Litter fines: In the small island nation of Tuvalu, littering is no longer tolerated. Those who offend should be ready to pay up their fines—onthe-spot. Whispers hears the on-the-spot fine is $40. As the regulation also covers environment protection, people seen burning fires that disturb the environment and neighbourhoods will also be fined—$1000—quite hefty indeed.  Open defecation free: A total of 682 households with a population of 3,689 (Census 2010), residing in 12 villages in Kiribati are now open defecation free. Tabiteuea North is the sixth and latest island in Kiribati to be declared open defecation free (ODF)—thanks to the initiatives of the “Kiriwatsan I Project”, which is led by the Ministry of Public Works and Utilities (MPWU) with technical support from the United Nations Children’s Fund (UNICEF) and funded by the European Union (EU).

Minister for Ministry of Public Works and Utilities (MPWU), Waysang Kumkee said: “This

USB Condoms anyone? Who says condoms may exclusively be used for sex? A US IT professional is out with a new dongle called USB Condoms, designed to protect computers against viruses and all sorts of unwanted malware that supposedly launch their invasion through corrupt USB ports.

According to one report, the new tech condoms prevent accidental data exchange when a device is plugged into another via a USB cable, for example a phone being charged on a computer.

With USB charging stations now becoming common in public places overseas, there are fears that they could be the targets of villains who swap them with their fakes. These hijackers steal data of unsuspecting users who plug into the fake USB ports.

With USB condoms however, the risk is lessened because the device works by terminating the data pins in the USB cable and only allowing the power pins to connect through.

• Whispers is compiled and edited by Laisa Taga.

If you have any Whispers, please contact us on editor@ibi.com.fj

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Islands Business, February 2014 13

Pacific Update

Solomons faces potential economic rescue

By Alfred Sasako

A

for example, the government uncovered albeit too late a $10 million (about US$1.34 million) fraud.

Over-charging in freight and fictitious charters chalked up the funds.

Two payments alerted the government to this fraud. One took Treasury officials just 45 minutes to process the payment. The second took a lot lesser time.

What attracted the attention of some Treasury officials was the fact that payment for this particular project often jumped the queue and was often the first to be paid.

As a consequence, work on three health centres had stopped because the funds, provided under Australian aid, have simply evaporated.

s it edges closer to an election later this year, the Hapi Isles appears to be in an economic turmoil All indicators are that things could only get worse. Critics say the nation’s economic woes are self-inflicted. It originated from a decision taken by Prime Minister Gordon Darcy Lilo’s government a little over two years ago.

In the main, the decision taken by cabinet gave politicians the ultimate say on how funding in the nation’s largely donor-funded Development Budget is to be used.

An immediate impact of the decision was that technocrats whose work is largely funded in the Development Budget had nothing to do as politicians Investigation took control of the funding allocations for projects.

Police investigation has unearthed prima facie “We simply come to the office to collect our pay evidence which seems to be pointing to an encheque. There are no funds to go out in the field,” trenched network amongst senior public servants one frustrated official said. with links to private sector One official has since reoperators. signed after pressure from In the infrastructure secpoliticians to release cocoa tor, two multi-million doland copra rehabilitation lar projects to be funded by funding last year. the Japanese Government The official stood his hang in the balance. grounds because politicians One is for the construcfailed to honour a signed tion of a new jetty to ease agreement to furnish his overcrowding at the main department reports on how Point Cruz wharf, the they used tens of millions other an 8km road linking of dollars in cocoa and coRanadi’s industrial area dipra rehabilitation funds in rectly with Point Cruz. the previous year.

These projects are unTwo years after the decider question mark because sion which allowed politithe Honiara Governcians to be economic manment has been undecided agers of public funds, the about the fate of the board impact has spread far and members of the Solomon wide, impacting on service Islands Ports Authority (), delivery around the counwhich the Minister for Intry. frastructure Development, Sectors after sectors are Seth Gukuna and Finance now beginning to feel the PM Gordon Darcy Lilo...government riddled with Minister Rick Hou jointly corruption: Photo: Islands Business pinch. sacked last October.

The first known casualty Hou, a former governor is civil aviation. Two of the of the Central Bank of nation’s dozen or so airstrips have been forced to Solomon Islands, has since withdrawn his support close down in as many months. No one knows how for the sacking. long the closure will be. A third is in the queue.

Instead, he has counselled his colleague minister Many more could follow.

Gukuna to reinstate the sacked board. Gukuna was Last December, the nation’s capital was without unmoved. drinking water for hours as landowners turned off While Tokyo is ready to proceed, Honiara is not. the water mains that supplies Honiara’s 80,000 resiJapan has made it clear that unless the sacked SIPA dents. Not that this is an unfamiliar happening. It board is reinstated, JICA has no local partners on isn’t except that last December’s incident had also the ground to work with. affected hotels.

This could cause further delays to both the new Some stop gap measures were taken and water wharf as well as a new road to be built from the was again flowing. All these were happening because Ranadi industrial area in the east, direct to the of one of two things.

Point Cruz wharf. This new road is intended to ease The government has simply fallen behind in paytraffic in the capital. ing its statutory charges on-time or has knowingly Despite what is happening, the government apignored the payments as they fall due. pears to act as if nothing is wrong. Take for example Resource owners who have had enough are not the plight of ordinary Solomon Islands men and taking this sitting down. And the fire of chaos seems women who contributed to the success of the 2012 to be appearing everywhere.

Festival of Pacific Arts, which Solomon Islands In the Ministry of Health and Medical Services, hosted for two weeks from July 6 that year.

14 Islands Business, February 2014

There’s revelation in the local media that contractors are still being owed SB$17 million (about US$2.28 million) in unpaid contracts 19 months after the regional event had ended. A police probe instituted shortly after to investigate serious allegations of misuse of public funds appears to have come to naught.

Mid last month (January) it was announced that the registration of voters for the new system of voting (biometric) to be used in the national election later this year has been delayed until March.

It was to have begun on January 20 and end on March 20. This was postponed due largely to the fact that the government does not have the money to pay workers who would administer the new system.

Whether lack of money was simply an alibi so the old system, riddled with cheating and other electoral fraud, could be retained, is open to conjecture.

As one observer puts it, “How can this be happening when there’s so much money around?

Solomon Islands has never ever experienced a time when there’s so much money.”

What is making news big time here too is the cost of education, which has skyrocketed in the last 12 months. Many parents have been forced to withdraw their kids from school simply because they could not afford the tuition fees and various other charges levied by school boards, including government-owned schools.

A SB$20 million (about US$2.7 million) Constituency Scholarship Fund, introduced by Prime Minister Lilo’s government and administered by MPs, has failed to make a dent in the parents’ struggle to meet their children’s school fees.

This is because politicians, in many cases, have restricted the use of the scholarship fund to their voters only, leaving hundreds of thousands of parents to fend for themselves.

Already the education sector has been hit hard this year. Its overseas and Solomon Islands National University’s (SINU) combined intake was halved to just 430 students this year.

Solomon Islands’ economic woes come at a time when even the Asian Development Bank (ADB) has revised downwards the nation’s economic growth outlook.

For example, the nation’s growth forecast for 2013 was lowered to 2.5 percent from the Asian Development Outlook (ADO) 2013 forecast of 4 percent in April.

This largely reflected slowdowns in gold, logging, and agricultural production, the bank says.

“In the first 7 months of 2013, gold exports were down by 22.9 percent and log exports by 11.6 percent compared with the same period in 2012.

“The Gold Ridge mine operator cut its forecast for gold production in 2013 by 10 percent. Agricultural and fishery production were also down in the first 7 months of the year, with production of cocoa declining by 23.5 percent and of copra by 63 percent, year on year.

“The fishing catch was 28.5 percent lower due to poor weather and fewer fishing vessels.”

What happens between now and the next national general election, due in November, is anyone’s guess.

MSG meets to seek answers from delegation

By Robert Matau

T

he Melanesian Spearhead Group heads into further talks this month to seek more answers from the MSG mission that failed to meet indigenous West Papuan leaders in West Papua last month.

Whilst new MSG chairman Victor Tutugoro who is also spokesperson for the Front de Libération Kanak et Socialiste (FLNKS) in New Caledonia has not revealed the agenda he has called for the meeting days after the delegation returned from the mission.

Tutugoro says the meeting will take place in Port Vila in the middle of this month (February).

The MSG delegation to Indonesia was represented by Fiji’s Foreign Affairs Minister, Ratu Inoke Kubuabola; Papua New Guinea’s Foreign Affairs Minister, Rimbink Pato; Solomon Islands Foreign Affairs Minister, Soalaoi Clay Forau; and FLNKS representative, Yvonne Faua.

Vanuatu’s foreign minister, Edward Natapei, withdrew from the mission because the itinerary excluded meetings with groups concerned about alleged human rights abuses in West Papua.

West Papua snub West Papuan leaders have expressed disappointment towards the apparent snub from the MSG mission.

last year where they sought to become a member of the MSG. However, it seems economic development and bilateral ties took precedence over the MSG membership and other concerns of West Papuans.

A group of West Papuan protestors staged a small but aggressive protest on January 16, at the hotel where MSG leaders were staying.

West Papuan Kilion Wenda sent Islands Business youtube links of the protests showing them shouting down the motorcade of Melanesian leaders.

The MSG leaders were stopped by a group of 20 West Papuan protestors at Let’s talk...MSG chairman Victor Tutogo (middle) and MSG the entrance of Borobudur Hotel in JaSecretariat director-general, Peter Forau (third from left). Photo: karta where the MSG leaders were stayIslands Business ing.

Hotel security personnel, some armed with iron baseball bats tried to ward off the proWhat had begun as a desire to join the Melanetestors with little effect. sian Spearhead Group (MSG), as per their request “The protestors shouted at the MSG delat the MSG summit in Noumea last year, was egation and the Indonesian officials raising their snuffed out by Indonesia’s refusal to let the MSG concerns at the failure of the delegation to meet leaders meet indigenous West Papuan leaders last West Papuan leaders,” Wenda said. month.

All eyes are now on the upcoming MSG meetIt looks like attempts to accommodate West Paping where the West Papuans are hoping they will ua’s request to join the MSG club may look remote. get another chance to present their case to the The West Papua National Council for LiberaMSG. tion was invited to the MSG summit in Noumea

Cyclone Ian a blessing: Fonua

• 2,335 people displaced in 51 formal and informal evacuation centres.

• 17 schools have been damaged, impacting 1,293 students. aged.

• Urgent need for shelter, food, water, sanitation

By Robert Matau “At the same time, that same hospital had been and protection of vulnerable groups. yclone Ian could be a blessing in disguise for earmarked for relocation as it was already being af• Rapid assessment reveals severe damage to Ha’apai Island, which has been neglected over fected by erosion from rising sea levels well before food crops in Ha’apai and Vava’u. the years in terms of development. the cyclone. But yes an assessment on the damage Cyclone Ian hit the islands on January 11 leaving Matangi Tonga Editor Pesi Fonua made the comto the hospital would be good. one dead and hundreds homeless. ments when asked about his observations of the Fonua said the Red Cross team on the ground Director of Communication Paula Ma’u said relief and rehabilitation work in Tonga.

Ha’apai island sustained 75 percent “Most of the infrastructure and governdamage to infrastructure, dwellings ment buildings there are badly in need of houses and motels. rennovation or maintenance or for some “In some cases, the whole structures structures—a complete demolition and rewere ripped off their foundations and construction,” Fonua told Islands Business. we are going through situation reports Fonua also raised concern at the absence from government disaster relief workers of an estimated valuation of damage by govas they come in,” he told Islands Busiernment. ness.

“There are no figures from government The latest situation report states reup until today (estimated cost of damages),” covery efforts are underway focusing on he said. rehabilitation and the reconstruction of “There are, of course, estimated percentdamaged homes and schools, food secuages of the number of homes which were rity recovery and humanitarian support. either completely uprooted or partially dam“Families who sought shelter from aged. The only figures available so far are on the cyclone in church buildings and The damage...after Cyclone Ian. Photo: United Nations Office for the Coordination damage to power lines. health centres have since returned of Humanitarian Affairs in the Pacific He said government did not have a rehahome to severely destroyed houses and bilitation plan in place yet; but they needed food crops. to know what to build first and then prioritise from had a better feel of the situation.

“With destructive winds uprooting trees and there.

Red Cross’ assessment includes the following food crops, shortage of food supply is a concern as “But there are some definite areas that they need observations: agricultural produce across the Ha’apai Group was to start addressing as we know such as telephone •18 villages across six islands in Ha’apai have also badly affected. “ and power lines which were badly damaged, and been affected with 1,094 buildings destroyed or Tonga’s National Emergency office has officially also the hospital on Lifuka which was also damdamaged. requested for international help.

C

Islands Business, February 2014 15

Cover Report

Presidential Palace...in French Polyneisia.

The Battle for French Poly ne

Flosse and Temaru debate economic reform, independe nce

I

Text and photos by Nic Maclellan

n French Polynesia, they’re gearing up for next month’s municipal elections. It’s another round in the long-running battle over its future, between President Gaston Flosse and opposition leader Oscar Manutahi Temaru.

There’s a range of other politicians seeking re-election to local town halls, but the title bout continues between these longstanding rivals, over economic reform, independence and the legacy of France’s nuclear testing.

In elections for French Polynesia’s Assembly last May, Flosse won

16 Islands Business, February 2014

38 of 57 seats in a compelling victory over Temaru’s Union pour la Démocratie (UPLD or Union for Democracy) with 11 seats and A Ti’a Porinetia with eight seats.

Voters were angry over the outgoing government’s management of the territory’s fiscal crisis, declining tourism and growing unemployment. They were also tired of musical chairs in parliament, with 11 changes of government over the last decade.

Since then, President Flosse has been everywhere. His administration has negotiated new loans from Paris worth 5 billion CFP French Pacific francs (US$57 million). Last year, Flosse was chosen to chair the Polynesian Leaders Group and has offered to host a secretariat

The long-running battle...between opposition leader Oscar Manutahi Temaru (left) and President Gaston Flosse over the future of French Polynesia.

ly nesia’s Future

nde nce and the nuclear legacy

in Papeete for the sub-regional organisation. In December, Flosse led a delegation to China, wooing trade, tourism and investment.

His Tahoera’a Huiraatira Party is poised to do well in the March municipal elections. On the other hand, Flosse faces obstacles and challenges on every front. The ageing politician is currently appealing a series of convictions for corruption (although his next court case has been delayed until June, well after the municipal elections).

French Polynesia faces ongoing structural problems to transform its economy in the post-nuclear era, with a large and expensive bureaucracy dominating economic life and unemployment nearly doubling in the last five years.

The government has already faced one ministerial reshuffle after Transport Minister Bruno Marty had an accident driving without a licence after one too many drinks!

Most importantly, Flosse’s 2013 electoral victory coincided with the decision of the United Nations General Assembly (UNGA) to reinscribe French Polynesia on its list of non-self-governing territories.

The UN resolution culminates in a long campaign by Temaru’s independence party Tavini Huiraatira no Te Ao Maohi and came with the support of most Pacific Islands Forum Countries. It opens the way for increased international scrutiny of France’s colonial and nuclear policies in French Polynesia, at a time when France’s three Pacific dependencies are looking to strengthen their links with the Pacific Islands Forum.

Flosse first served as president of French Polynesia in 1984.

Twenty years on, the long rule of this fierce opponent of independence came to an end after the Tavini Huiraatira Party united with other groups to form the Union for Democracy Coalition (UPLD).

The UPLD’s narrow majority in the 2004 French Polynesian Assembly elected Oscar Temaru as the first president who supported independence from France.

In the decade since the UPLD victory—known as the Taui—local opinion on French Polynesia’s future has shifted slowly but Islands Business, February 2014 17

Cover Report significantly, even as control of the government has swung back and forth between supporters and opponents of independence.

The UPLD’s period in government was marked by lack of ministerial experience, unstable political coalitions and Paris’ unceasing opposition to Temaru’s agenda.

This combined to bring about 11 changes of leadership since 2004, with Flosse, Temaru and former Flosse ally, Gaston Tong Sang, alternating as President.

Successive French governments delayed or restricted funding allocated to the UPLD government.

At the time of the coalition’s election victory in 2004, Overseas Minister Brigitte Girardin told the National Assembly that “the election process was far from over”, attempting to cobble together a coalition between Flosse and the smaller centrist parties. She went on to suggest that France would “turn off the taps”, restricting finances to the UPLD government (Today, Girardin serves as the Flosse government’s adviser, lobbyist and representative in Paris and Brussels).

Flosse’s latest return to office highlights the political and economic stasis in Papeete and the lack of vision for new post-nuclear economic options. As New Caledonia moves towards crucial Congressional election next May which opens the way for a new political status for the Melanesian nation, French Polynesia seems stuck in the past, awaiting a post-Flosse era.

Economic woes cut jobs in Tahiti Today, French Polynesia’s economy is in trouble, with declining revenues from key economic sectors and a reliance on French grants and loans (amounting to 175 billion CFP or Euro 1.46 billion a year).

The flow of funding from the French government declined at the end of nuclear testing in 1996, although the post-nuclear transition of the economy was aided by a “progress pact” designed to promote aquaculture, pearls, tourism and construction.

This Fond pour la reconversion de l’économie Polynésienne (FREPF) has since been replaced

by new contracts guaranteeing funds from Paris. Over the last five years, Paris and Papeete have been implementing an agreement for infrastructure projects and this compact is being extended throughout 2014.

But the nuclear era distorted French Polynesia’s economy, which is now dominated by a service sector that employs over 80% of the workforce (unlike other Pacific countries, there is little employment in agriculture, with the 2012 census recording only 1,764 agricultural workers in a total paid workforce of 73,437). Control of national and local government provides an opportunity for patronage to reward loyal supporters, while much of the French aid boomerangs back to Paris.

The global financial crisis in 2007-2008 led to a decline in employment and overall business turnover in recent years.

Data from recent censuses shows that unemployment increased to Tourist hotel...in Moorea. Tourism industry picked up slightly in the last two years, but overall 21.8 percent of the population by closed in recent years.

2012, compared to 11.7 percent in 2007.

According to France’s central bank for the As France’s Overseas Minister Victorin Lurel region, the Institut d’émission d’outre-mer arrived on an official visit to French Polynesia (IEOM), the number of jobseekers increased last November, Flosse described him as “Father from 5,026 at the end of 2006 to 9,928 at the end Christmas”, coming to open his sack of goodies. of 2012. French Polynesia needs an estimated Paris has only agreed to the loan under a deal 2,500 new jobs a year to provide opportunities for that would force Papeete to repay it within two school leavers and offset losses in key industries years, though President Flosse has been negotiatlike tourism. ing for better terms at a time when the Standard Since his re-election last year, President Flosse & Poor’s rating agency has reduced French Polyhas focused on economic issues, looking to nesia’s credit rating to BB+: “We have needs, it’s France, China and other partners for aid, trade true, of this loan from the French state, but not and investment (see box titled Flosse taps Beijingunder any conditions.”

Tahiti connection for increased tourism).

This loan would supplement an existing Flosse has been lobbying Paris for an advance infrastructure agreement for the French state to loan of 5 billion CFP to fund new infrastructure. contribute 30 percent of funds for joint projects

Flosse taps Beijing-Tahiti connection for in cre

A

s with previous governments in French Polynesia, the Flosse administration is seeking to boost ties with China, hoping for increased tourism, trade and investment.

Like other Pacific countries, French Polynesia hopes to tap into the Chinese tourism market. However, the lack of direct flights from Beijing and France’s ongoing colonial control over visas are hampering the expansion of this crucial market.

In 2012, Chinese travellers made over 83 million trips abroad (an 18 percent increase on the previous year) and spent US$102 billion during their travels.

Last October, a Chinese business delegation visited French Polynesia led by Li Xiaolin, the President of the Chinese People’s Association for Friendship with Foreign Countries (the daughter of China’s former Prime Minister Li Peng, Ms Li was presented with the Order of 18 Islands Business, February 2014

Tahiti Nui by President Flosse). The delegation looked at opportunities to invest in the airport, tourism infrastructure at Mahana Beach, Punaauia and also support for agriculture, with plans to buy 4,000 tonnes of noni juice a year.

To follow up these contacts, President Gaston Flosse led a large delegation to China in December 2013, including Tourism Minister Geoffrey Salmon and the new President and CEO of Air Tahiti Nui, Michel Monvoisin.

Visiting Beijing, Chungking and Haikou (the capital of Hainan province), Flosse held a series of meetings with Chinese officials, including the newly elected Vice President Li Yuanchao and the chairman of the China Development Bank Hu Huaibang (today the CDB is the world’s biggest development lender, providing more loans than the World Bank).

A key focus of the visit was meetings with Chinese civil aviation authorities and the

management of Hainan Airlines, to discuss the possibility of increased flights from Beijing and Haikou to French Polynesia (in December, Flosse also travelled to Los Angeles to lobby Hawaiian Airlines for a San Francisco-Papeete-Honolulu connection).

Flosse told Islands Business: “We are trying to rebuild our tourism and our aim is to build links with China, particularly the idea of flights from Shanghai to Beijing through to Papeete and Sao Paolo.

“We would rely on these flights both for tourism from China and from South America,” he added. “Currently, our tourism is largely American, from the West Coast, and European.”

However, the overall number of tourists to French Polynesia has dropped to 170,000 a year and Chinese tourism will only increase substantially when there is a direct flight from China.

Flosse told the Chinese authorities: “I’m in

Beijing and Hawai’i to increase tourist arrivals.

The territory’s external trade deficit remains high (between 125-150 billion CFP a year) and France continues to be French Polynesia’s main trade partner.

Vanuatu has expanded economic ties with New Caledonia and Fiji is seeking new opportunities for exports in the French Pacific, but trade with Forum member countries are still relatively limited, in spite of closer relations between the French Pacific dependencies and the independent nations of the region.

The IEOM notes: “Exchanges between New Caledonia and French Polynesia and other small Pacific islands economies are very limited, whether in terms of goods, services or financial transactions. In terms of both revenue and expenses, the flow of current transactions between the two French regions and their wo years, but overall employment in the sector is declining after a number of major hotels have small ‘neighbours’ represents less than one percent of the total of this flow.”

With an ageing population, limited private sector employment and large with the government in French Polynesia, worth numbers of French and local public servants, 22 million Euros in 2013.

French Polynesia’s social security fund, the While the tourism industry picked up slightly Régime de Solidarité de la Polynésie Française in the last two years, overall employment in the (RSPF), is in deficit. sector is declining after a number of major hotels The population of French Polynesia has grown have closed in recent years. This fall is also related to 268,207, with three quarters living on the two to the reduction in air travel services (down by main islands—Tahiti and Moorea.

31 percent between 2007 and 2012).

Within Tahiti itself, people are moving from Air Tahiti Nui posted losses of 8.7 billion CFP central Papeete to outer suburbs and towns like (US$100 million) over the last four years. Last Punaauia, with the capital losing 13,000 residents November, the airline renewed its management over five years. In the same period, French Polyteam and purchased a new ATR 42-600 aircraft nesia has lost 7,700 residents overall, reflecting worth 1.4 billion CFP, in an effort to boost busithe out-migration of other Polynesian nations ness. This was combined with lobbying by the across the region.

Flosse administration to open new flights from

United Nations re-inscription In spite of these economic woes, French Polynesia’s political relations with France continue to be the focus of debate.

In 2011, the French Polynesian Assembly narrowly voted for the first time to support Temaru’s call for UN re-inscription. A legal challenge to the Assembly vote failed at the Administrative Tribunal of Papeete in early 2012.

This opened the way for more active diplomacy by Forum Islands Countries. Fiji and Papua New Guinea successfully lobbied the September 2012 Non-Aligned Movement summit in Teheran to support French Polynesia’s re-inscription.

Four islands countries raised the issue in their speeches to the UN General Assembly the same month, even though Australia and New Zealand had blocked the Forum’s consensus on support for re-inscription. In early 2013, Solomon Islands, Nauru and Tuvalu lodged a resolution for reinscription before the United Nations.

In a historic decision on May 17, 2013, the UN General Assembly adopted the resolution to re-inscribe French Polynesia on the UN list of non-self-governing territories. The resolution was adopted by the 193-member Assembly without a vote. France’s ambassador boycotted the session and Britain, the United States, Germany and the Netherlands all disassociated themselves from the consensus vote.

“This resolution is a flagrant interference,” said the French Ministry of Foreign Affairs, “with a complete absence of respect for the democratic choice of French Polynesians and a hijacking of the decolonisation principles established by the United Nations.”

In the aftermath of the UN resolution, Flosse moved to pre-empt any further debate about options and timetables for self-determination by calling for an immediate referendum on independence. He hoped that a quick vote would overwhelm the UPLD, which must rally a population fearful that France would abandon them, politically and financially, after independence.

In contrast, the UPLD opposes any referendum without international participation. Temaru lobbied the UN Fourth Committee in New York

in creased tourism ments would follow.”

The fundamental roadblock to expanding tourist numbers is the issue of visas. In Beijing, Flosse lobbied France’s Ambassador Sylvie Bermann to seek support from Paris for new visas that could increase Chinese patronage. Because of France’s ongoing control of immigration and customs, Chinese tourists find it difficult to organise visas for holidays in French Polynesia.

Flosse’s government is seekPresident Gaston Flosse (left)...meets Chinese Vice President Li Yunchao in ing support for the idea that China. short-term transit visas could be issued to Chinese tourists on favour of this direct route. Once it is open, we arrival at Faa’a Airport in Tahiti, to increase the would welcome more visitors and hotel investchance of a stopover en route to South America.

They also hope that Paris would authorise longer stay visas for Chinese tourists, to make the long trip to the territory worthwhile.

French Polynesia is also seeking investment in the ailing hotel sector, after numerous luxury resorts have closed in recent years because of lack of patrons. The Flosse administration is looking to China Civil Engineering Construction Corporation (CCECC) and other investors to buy into the Mahana Beach tourism project, following an initial agreement signed in Beijing last October.

With Flosse also serving as energy minister, the French Polynesian delegation met with Suntech Corporation, the world’s largest producer of photovoltaic panels. A delegation from Suntech is due to arrive in French Polynesia in the coming weeks to investigate the renewable energy sector and the potential to manufacture photovoltaic cells in there.

Islands Business, February 2014 19

Cover Report administration and the French government, last October, stating: “Any referendum must be the UNGA resolution called for a UN mission based on UN practice and principles, and the to study the environmental, health and social question of voting rights must be resolved with impacts of 30 years of French nuclear testing at the electorate limited to indigenous Maohi and Moruroa and Fangataufa atolls (See story on the long-term residents. Any vote should be preceded nuclear debate on page 22). by a lengthy transition, with information in local The Flosse government denounced the UN languages about all options and a timetable for the decolonisation resolution, stating: “By obstinately transfer of authority.” denying the political and democratic reality exAt last year’s Pacific Islands Forum, President pressed on two occasions at the polls, the United Flosse told Islands Business: “If there is a refNations is showing itself out of tune with the erendum on self-determination, Oscar is certain Polynesian people. For this reason, the resoluto be in the minority, to be beaten. I would be tion has no legitimacy and to attempt to impose certain to win a referendum on a country in it would constitute an unacceptable interference association with France—note that I didn’t say in our affairs.” ‘a freely associated state’ but rather ‘a country’, because a state is independent. When I speak of Bitter relations an associated country, it’s within Article 74 of the between governments French Constitution.”

Lurel’s visit highlighted the bitter relations France’s Ambassador to the South Pacific between the Flosse government and the UPLD Hadelin de la Tour du Pin also stressed his belief that French Polynesians are fearful of independence: “The people there are not idiots, they are living through a grave economic crisis. It’s not Chinese assistance or Australian aid or the World Bank that will put them back on their feet, it’s France. The people of French Polynesia know this very well and they showed this very clearly in June 2012 when they voted for three deputies for the French National Assembly and all three were from the party of Mr. Gaston Flosse.”

France, however, has rejected Flosse’s call for an immediate referendum. During his Handicraft market...in Papeete.

November 2013 visit to French Polynesia, Overseas Minister Victorin opposition, but also tensions between the UPLD Lurel said: “I am personally persuaded that in the and the Socialist government in Paris. current economic and social situation of French After years of conservative rule under presiPolynesia, such a consultation would not allow dents Jacques Chirac and Nicolas Sarkozy, the a durable solution to the question of the terripro-independence Tavini Huiraatira aligned tory’s future.” itself with the Socialist Party. Before his 2012 Lurel expressly criticised the United Nations, election as French President, François Hollande reaffirming the French government’s opposition signed a cooperation agreement with the Tavini to any UN scrutiny of the self-determination Huiraatira Party in his role as Secretary General process: “France refuses to engage itself in an of the Socialist Party. international process of decolonisation, noting in During 2012, the UPLD coalition softthis regard the respect that it holds for the demopedalled their re-inscription push at the United cratic choice expressed by French Polynesians” Nations in order to avoid embarrassing Hollande (a reference to Flosse’s victory in the May 2013 in the midst of that year’s French presidential Assembly elections). elections. Once elected, however, Hollande began “As the President of the republic has noted to back away from the principles set out in the before and after this election,” Lurel added, inter-party accord. “independence for French Polynesia is not the Temaru notes: “Before he was elected presisolution to the problems facing the territory.” dent, he was the secretary general of the Socialist Although the United Nations has little power Party and together we signed a convention in to influence matters on the ground, the shifting which he recognised the right to self-determiinternational debate on French Polynesia is causnation of the people of Maohi Nui. I understand ing diplomatic problems for Paris. In December, that once elected president, there is no longer the when the UN General Assembly passed its ansame political vision.” nual statement on decolonisation, the resolution Since May 2013, the French government’s included a section on French Polynesia for the outspoken opposition to the UN re-inscription first time. of French Polynesia has soured relations between In an initiative that angered both the Flosse 20 Islands Business, February 2014

the UPLD and its former ally in Paris.

In November, Temaru and other UPLD members boycotted Lurel’s address to the local legislature. The opposition leader criticised Flosse and “the complicity of the French state in a series of Mafia-like stories”, adding: “This is a government of convicts, that’s unique in the history of a French collectivity.”

Temaru announced the boycott at a press conference underneath the banner stating: “Down with the Mafia”, a reference to President Flosse’s January 2013 conviction for corruption and trading of favours. Flosse received a five-year prison sentence, an 83,300 Euro fine and five years loss of civic rights in the Office of Postal and Telecommunications (OPT) case, involving the payment of nearly US$2 million of kickbacks from businessman Hubert Haddad to the President.

However, Flosse continues to serve as president while awaiting his appeal, to be heard on June 23 (in a separate case before the Court of Appeal in Paris, Flosse is also seeking to overturn a ruling that he is ineligible to hold public office for a year, after being convicted in a case involving fictitious employment of public servants).

The UPLD has contrasted the perceived double standard where Flosse remains in office despite a number of convictions, while a Socialist Party Minister in Paris, Jerome Cahuzac, resigned in 2013 over allegations of tax fraud, even while protesting his innocence.

UPLD Senator for French Polynesia, Richard Ariihau Tuheiava states: “They apply the values of the Left in France. But they don’t apply the values of the Left in terms of anti-corruption when it happens overseas.”

The Socialist Party is currently considering the creation of formal branches in France’s overseas dependencies, which would compete for votes with the UPLD in French Polynesia. This ongoing tension complicates matters for Tuheiava, who sits with the Socialist group in the French Senate in Paris. The pro-independence senator told the local media in December: “The two signatories to the accord must meet and decide whether to renew it or not.”

Ironically, Lurel’s visit to French Polynesia included a tour of France’s largest construction project, a new prison at Papeari, worth 8 billion CFP (nearly US$100 million).

Debate over autonomy and independence Temaru has called for an agreement in French Polynesia similar to New Caledonia’s Noumea Accord. Unlike the 1998 political agreement governing the Melanesian nation, the autonomy statutes governing French Polynesia are not entrenched within the French Constitution and do not lead to a vote on self-determination.

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Used in respect of:Automobiles; trucks; buses; parts and fittings for automobiles; engines and motors for land vehicles – Class 12 Repair or maintenance of automobiles – Class 37 The said proprietor claims all rights in respect of the above trade mark and will take all necessary legal steps against any person or company infringing their said rights.

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Cover Report While Paris has devolved significant powers to the government in Papeete, the French National Assembly made unilateral revisions to French Polynesia’s organic law in 2007, while any legislative changes for New Caledonia must be agreed between Paris and Noumea.

President Flosse argues that his country has extensive autonomy from Paris, telling Islands Business: “We are French, it’s true, and we don’t deny our links to France. However, we have great autonomy that means our powers are quite distinct from those in France. While France controls defence, most Pacific countries don’t have a defence force. France controls our court system, but look at the Cook Islands: where does its judges come from? From New Zealand!

Where is the independence there?”

“So on economic matters, it’s me who decides!

On education, it’s me who decides. On health issues, it’s me who decides,” he said. “I’m the boss when it comes to fiscal matters. In all areas that affect our daily life, I’m independent and don’t have to rely on France.”

From Paris, there is bipartisan opposition to a UN-supervised referendum for French Polynesia. In 2010, conservative President Sarkozy stated that France’s overseas territories “are French and will remain French”, even though Article 53 of the French Constitution grants the right

Downtown Papeete...French Polynesia’s cultural importance, geostrategic importance allows France to be present in the great Pacific basin.

to self-determination for overseas territories.

While encouraging greater autonomy in French Polynesia, Sarkozy stressed that there is “one red line that I will never accept should be crossed: that of independence.”

The same policy on French Polynesia is being supported by the governing Socialist Party, even though they support self-determination for New Caledonia under the Noumea Accord. In his November address to the local assembly in Papeete,

France’s nuclear legacy haunts French Po lyn

L

ast December, the United Nations General Assembly addressed France’s nuclear legacy in French Polynesia in its annual statement on decolonisation.

The UN resolution “requests the Secretary-General, in cooperation with relevant specialised agencies of the United Nations, to compile a report on the environmental, ecological, health and other impacts as a consequence of the 30-year period of nuclear testing in the territory.”

The call for international scrutiny came as France’s Senate passed amendments to the Morin law, the French legislation which governs compensation for people affected by radioactive fallout.

After conducting 17 atmospheric and underground tests in Algeria, France relocated its nuclear test centre to French Polynesia in the early 1960s. For 30 years between 1966 and 1996, France conducted a further 193 atmospheric and underground nuclear tests at Moruroa and Fangataufa atolls.

After the end of nuclear testing in 1996, citizens groups called on Paris to address the lingering health and environmental impacts of the testing programme. Today, former military and civilian personnel who staffed the nuclear test sites continue to campaign for clean-up of contaminated islands and compensation for people affected by exposure to radiation.

French military personnel formed the Association of Nuclear Test Veterans (AVEN), while in French Polynesia, the Moruroa e Tatou Association links former test site workers to lobby for French compensation.

Both groups gained support from the Temaru

22 Islands Business, February 2014

government after 2004, which established the first French Polynesian inquiry into the health and environmental effects of nuclear testing.

The UPLD government also established the Délégation pour le suivi des essais nucléaires (Office to monitor the nuclear tests), led by researcher Bruno Barrillot.

However, one of the first acts of the re-elected Flosse government in June 2013 was to dismiss Barrillot and close the office.

Last October, President Flosse accompanied Bernard Dupraz, France’s Delegate for Nuclear Safety, on a visit to Moruroa, praising “the excellent overall state of the atoll and the blossoming of nature that can be seen”.

But after decades of denying that there were significant environmental or health effects from testing in French Polynesia, France’s parliament finally passed compensation legislation in 2009, known as the Morin law.

Overseas Minister Lurel stressed that control over French Polynesia guaranteed France’s presence in the region: “French Polynesia’s cultural importance, its economic importance, its geostrategic importance allows France to be present in the great Pacific basin.”

This commitment to France in the South Pacific is echoed by the Speaker of French Polynesia’s Assembly Edouard Fritch (who is Flosse’s son-in-law). Fritch represents the territory in the National Assembly in Paris, and told the French parliament last November: “We have long defended the French presence in this part of the great ocean and will continue to do so. Even more, we hope that French Polynesia, like New Caledonia, could be an example of harmonious development in this area where there is a strong Anglo-Saxon influence. Why today would you want to sanction those who defend France in this corner of the Pacific Ocean and prefer those who insult France again today?”

Next month’s elections for municipal councils will show the balance of political forces at local level in both New Caledonia and French Polynesia, but the debate about France in the Pacific is being played out at regional level as well.

Ironically, this year, the Melanesian Spearhead Group (MSG) is chaired by Victor Tutugoro, the spokesperson of New Caledonia’s FLNKS inde-

pendence coalition, while the Polynesian Leaders Group is chaired by Flosse, a proud partisan of France in the South Pacific.

Flosse told Islands Business: “The Polynesian Leaders Group has no statute, has no office, no permanent secretariat. I’ve proposed to the leaders that French Polynesia would host the secretariat for this Polynesian grouping, but they’ve asked to let them reflect on the idea.”

The debate on self-determination has important implications for the Pacific Islands Forum.

Both New Caledonia and French Polynesia hold associate membership of the Forum and islands governments are debating the future of regional institutions under the Pacific Plan.

Many Pacific governments (especially the MSG members) have supported the right to selfdetermination for New Caledonia and French Polynesia. But proposals to integrate the three French Pacific dependencies within the Forum, even without full sovereignty, have opened a debate about whether the organisation will be made up of independent nations.

For President Flosse, independence is not the issue: “For a long time, we have asked to be a full member of the Forum and when I intervened at the Forum meeting in Majuro, I asked the leaders whether the question of the country’s sovereignty was the most important issue or whether the

countries were from the same Pacific family, which see the same values.

“The institutional status of different countries should not be a roadblock for all of us to come together around the Forum table,” he added. “In my opinion what is most important is that within the Forum, we share the same values, and that’s more important than being independent nations.”

The newly released review of the Pacific Plan by former PNG Prime Minister Mekere Morauta echoes Flosse’s view. The report suggests that Forum leaders should accept New Caledonia and French Polynesia into the Forum family even without achieving full independence: “The point has been made that the distinction between ‘selfdetermining’ and some other forms of territorial sovereignty in defining eligibility for full membership is flawed in terms of the contemporary requirements and parameters of regionalism.

“The contemporary debate about regionalism has rather less intrinsic association with selfdetermination.

“Most of the issues debated in contemporary Pacific regionalism (trade and transport, for example) are entirely within the mandate of even the non-self-determining territories to resolve, and regionalism would be better served by fully including, not excluding, such territories in the debate and in its implementation.”

On December 20, 2013, the French Senate passed a resolution proposed by Senator Corinne Bouchoux to strengthen the Morin law.

The first change extended the geographic zone eligible for compensation to include all the territory of French Polynesia, not just atolls near the nuclear test sites.

This means that all people resident in French Polynesia between the first nuclear test on July 2, 1966 and December 31, 1998 can apply for compensation if they suffer from one or more of the 21 types of cancer approved by the legislation (there is no automatic guarantee of compensation, and applicants still need to prepare complex legal dossiers).

Another major change is to remove the process from the Ministry of Defence to the Office of the Prime Minister and also to create an independent committee to manage the compensation process (although many survivors in French Polynesia worry that the administrative requirements of this change will delay action on dossiers that have already been lodged).

Another step forward is the decision by the French Ministry of Defence to lift national security restrictions from a number of documents from the nuclear testing era. So far, nearly 300 documents and reports have been released, although many pages are still blacked out and the declassified documents merely confirm many facts long established by independent researchers (for example, that the fallout from the nuclear weapons tests in French Polynesia was far greater than previously admitted by Paris, affecting the whole country and not just the 21 atolls formally acknowledged by the French military).

Cases lodged by Moruroa e Tatou have

been rejected because of the presumption of “negligible risk” of exposure to radiation at the nuclear test sites, even though researchers have documented extensive contamination of Moruroa and Fangataufa atolls and neighbouring islands.

The association of Moruroa workers wants the French government to use the same system as the Marshall Islands, where there is a presumption in favour of compensation if a person has a certain disease and can show they lived or worked near areas exposed to fallout.

For the opposition Tavini Huiraatira party, the reforms don’t go far enough: “While it is logical, this extension of the geographic zone is nothing but a decoy.

“The final line of Article 4 of the Morin law allows the French State to avoid granting compensation ‘if the risk of exposure to ionising radiation is negligible’.

“This so-called ’negligible risk’ allows the state, which is both accused and judge, to continue to falsify the debate with a cynicism that has never faded since the end of the nuclear tests. Just because it’s close to Thanksgiving, we shouldn’t treat the nuclear victims like turkeys.”

According to researcher Bruno Barrillot: “The nuclear victims have already waited a long time. Their cases before the courts to assert their rights have dragged on for many years.

“All this is discouraging the victims and their families, and the implementation of current reforms to the Morin law may prolong this wait.

“Some of the survivors have gone as far as to say that this is a manoeuvre by France to delay action until a number of them have passed away.”

Po lynesia But critics have long contended that the French legislation is too restrictive. Of more than 890 cases lodged before the compensation committee and courts, only 13 have been granted compensation.

Of these 13 cases, only four came from French Polynesia, for people from Mangareva, Reao and Pukarua (islands located between 400 and 500 kilometres from Moruroa atoll) and whose claims were prepared by military doctors rather than independent experts.

John Taroanui Doom, secretary of Moruroa e Tatou, said: “Our association begun to compile case files for former Moruroa workers, of whom 146 have already died. But our workers don’t have the documents required to win the court case and very few have received any recognition or compensation.”

Last year, there was extensive debate about possible changes to improve the law, with the French Polynesian government proposing further studies, while nuclear survivors lobbied for a shift in the burden of proof.

Speaking to Islands Business at last year’s Pacific Islands Forum meeting, French Polynesia’s President Gaston Flosse stated: “I think the Morin law is too restrictive, and should be opened up further. But one shouldn’t exaggerate.

“If people say there were only four or five cases of cancer caused by the tests, then that’s exaggerated. But if people say that all the cancers in French Polynesia were caused by the tests, then that’s also exaggerated.

“So where is the truth in the middle? That’s the difficulty today. Our associations want all those who are sick with cancers compensated by France, but that’s taken too far.”

Islands Business, February 2014 23

Politics

MARSHALL ISLANDS

problems in accountability at the ministry, many in the procurement system, which were not fixed year after year.

In 2011, dozens of criminal charges were filed against the Ministries of Health and Finance workers who conspired to defraud the Ministry of Health grants of about US$500,000, largely from the United States, by using bogus invoices and forging signatures of higher ups.

The criminal charges led to several convictions. The former Under investigation...Majuro Hospital, showing an array of solar panels on several buildings, is being investigated for alleged improper government workers convicted handling of equipment and supply contract tenders. Photo: Hilary Hosia of wrongdoing in the 2011-2012 period were largely mid-level personnel.

The current investigation appears to be identifying higher-level involvement in possible tender fraud, although investigators did not release specifics except to say eight government workers were put on leave pending the outcome of the investigation.

The probe, which is being headed by AuditorGeneral Junior Patrick and Acting AttorneyGeneral and chief prosecutor Jack Jorbon, is targeting allegedly fraudulent bidding practices involving the Ministry of Health and locallybased company Genesis Pharmacy.

The Genesis office was raided on New Year’s Eve by law enforcement and was locked up with The Chief Secretary says there are “specific

By Giff Johnson police guard for two weeks to secure records tasks requiring immediate attention and adminwanted in the investigation. istrative remedy” at the Ministry of Health.

New Year’s Eve is normally the A former Genesis employee has reportedly For the past five years, Majuro Hospital has time for popping champagne bottles provided law enforcement officials with informaincreasingly struggled to keep foreign doctors and and partying into the wee hours. tion helping the investigation. dentists on contract because of the declining work There was plenty of that in the Marshall An employee of Genesis was prevented environment at the facility, which faces routine Islands. But in an unprecedented government acfrom departing Majuro on New Year’s Day, the shortages of medicine and frequent breakdowns tion, law enforcement officers in Majuro, wieldday after investigators of key diagnostic equiping court-approved search warrants, descended confiscated computers ment. on a local pharmacy and medical supply company, and documents from The last surgeon on the Ministry of Health and the Ministry of Fithe company’s office in staff left the island at nance’s procurement and supply office on New Majuro. the end of December, Year’s Eve, confiscating computers, thousands Although he is not and while a short-term of documents and other records in what looks under arrest, Jorbon says surgeon was brought in to be the most massive fraud probe in the 34the Genesis employee for two months, there year history of Marshall Islands’ constitutional was denied boarding on appeared to be no solugovernment. a United Airlines flight tion in sight to the docThe target is suspicious bids involving hospital to Honolulu because of tor crisis. equipment and supply orders, which routinely the ongoing investigaWhile doctors on the run into the millions of dollars annually. tion. hospital staff and many The Auditor-General and law enforcement The probe team…headed by Auditor-General Junior In the wake of the local observers identified Patrick (left) and Acting Attorney-General and chief personnel say they suspect government workers the crux of the prob- prosecutor Jack Jorbon is targeting allegedly fraudulent investigation, a tender in the Ministry of Health and elsewhere were aclem as being hospital bidding practices involving the Ministry of Health and Genesis won to manage cepting bribes in exchange for awarding lucrative management—a point locally-based company Genesis Pharmacy. Photo: Giff the Marshall Islands’ contracts for hospital needs. medical referral program underlined by the gov- Johnson While the investigation played out in the first in the Philippines that ernment’s appointment three weeks of January—including reported visits was supposed to start January 1 has been canceled, of the Chief Secretary to oversee the ministry— by investigators to Majuro Hospital inventorying says Jorbon. members of Nitijela (parliament) for weeks equipment purchased through suspicious bids, Because of the sensitivity of the investigation after parliament opened on January 6 debated some of which sources said could not be found. in a small island community, police were also problems centering on individual doctors and guarding the Auditor-General’s office around the criticized performance of hospital staff.

Unprecedented step clock and providing security for Auditor-General Meanwhile, the suspected fraud involving The head of the Public Service Commission Patrick at his residence to assure his safety as the managers and equipment and supply tenders at Marie Maddison was joined by President Chrisinvestigation proceeds. the Ministry of Health could, if the suspicions topher Loeak in notifying government departJorbon says investigators are moving as quickly prove correct, explain why Majuro Hospital’s ments that they were taking the unprecedented as possible to process information for prosecuservices have been on a precipitous decline. step of putting the government’s Chief Secretary tions in the High Court.

In a series of public hearings last July, the in charge of the Ministry of Health.

If there is evidence for prosecution, governNitijela’s Public Accounts Committee criticized The appointment of Chief Secretary Casten ment workers involved in criminal activities will Ministry of Health officials for numerous and Nemra as Interim Secretary of Health through be prosecuted, says Jorbon. “Nobody is above the repeated violations of the government’s procureFebruary 15 underlines the gravity of the problaw,” he says. ment law. Audits over the past few years identified lems at the ministry.

Major fraud investigation moves into high gear

Local pharmacy, govt ministries under probe

24 Islands Business, February 2014

PAPUA NEW GUINEA

Politics

PNG launches first national security policy

In the 2013 PNG budget, the O’Neill government increased defence spending to 188 million Kina (A$94 million).

Papua New Guinea has also developed new strategic policy to address core defence roles (defence of PNG land and waters; security partnerships with Indonesia, Australia and other players; and regional peacekeeping operations, especially through the Melanesian Spearhead Group).

Working through the Office of Security Coordination and Assessment in the Department of the Prime Minister, the PNG National Executive Council established a Technical Working Group broadly, Australia and Papua New Guinea have

By Nic Maclellan in July 2012 to draft the new National Security jointly determined to deepen bilateral cooperaPolicy. With support from the United Nations T he PNG government has tion in areas that advance their mutual security Development Programme (UNDP), the working chosen a new Commander for interests, including maritime and border security, group involved officials from the police, defence, the Papua New Guinea Defence regional peacekeeping, and disaster relief.”

Correctional Services, National Intelligence Force (PNGDF)—Colonel Gilbert Toropo, the Papua New Guinea will host the next South Organisation, Immigration and Customs. From former Commanding Officer of the 1st Battalion, Pacific Defence Ministers’ Meeting in 2014, a June last year, the working group held consultathe Royal Pacific Islands Regiment. reflection of broader defence co-ordination betions in a number of provinces to engage provinThe announcement came soon after PNG tween Canberra, Wellington and Pacific governcial governments and community organisations Prime Minister Peter O’Neill launched the ments, as well as colonial powers like France and in the debate about security. country’s first ever National Security Policy and the United States. As well as the initial regional PNG’s last Defence White Paper was released an updated the Defence White Paper at in 1999, but throughout 2013, a team Murray Barracks in Port Moresby on led by Lieutenant Colonel Siale Diro December 20, 2013. prepared a paper for the consideration After a lengthy process of security of the National Security Committee sector reform in the 2000s, O’Neill and PNG Cabinet. The White Paper acknowledged there was still a long way has chapters focusing on recruitment to go: “Our national security has lacked to increase manpower, new weapcohesion and effective coordination onry, infrastructure, welfare issues for since independence. military personnel, and capabilities for “Our response to security issues has land, sea and air elements. been largely disjointed as a result. Our It also looks at the PNGDF’s canational security institutions have been pability for peacekeeping—alongside neglected to the extent where they lack Fiji, Papua New Guinea is now a UN appropriate capabilities to provide effecTroop Contributing Country. With tive public safety and protection of our Australia providing pre-deployment natural resources and our international preparation and training, PNGDF borders.” personnel have deployed to UN Toropo, 51, hails from the Southern peacekeeping missions in South SuHighlands Province, like Prime Mindan and Darfur. ister O’Neill. He was one of the first Post-RAMSI, Papua New Guinea PNG officers to receive Special Forces’ is also working with Fiji on regional training in the United States and also peacekeeping. Military leaders from participated ina senior officers’ training Suva and Port Moresby have agreed in Australia in 2007, when he attended to pool together their forces under a the Australian Defence Force’s Centre new defence co-operation agreement for Defence and Strategic Studies incorporating the Republic of Fiji (CDSS) in Canberra.

Military Forces and the PNGDF. The PNG National Executive CounThe two countries are driving cocil also appointed retired Colonel Jefoperation through the Melanesian frey Wiri as the new chief of operations Peter O’Neill...“Our national security has lacked cohesion and effective coordination Spearhead Group (MSG), which since independence.” Photo: Ministry of Information, Fiji of the PNGDF. began looking at an MSG Police Outgoing Commander BrigadierFormed Unit (PFU) in 2011, to send General Francis Agwi will take up a Melanesian police officers on internanew role as PNG’s High Commissioner to New ministers meeting in May 2013, Australian and tional peacekeeping missions. This concept has Zealand.

Papua New Guinea held their inaugural Defence now expanded and at their June 2013 summit In the 1990s, defence relations between CanMinisters Meeting on December 10, 2013. in New Caledonia, MSG leaders endorsed the berra and Port Moresby were strained by debates The two countries agreed to establish an anestablishment of a Department of Peacekeeping over human rights abuses, the use of Australiannual security dialogue between senior officials Operation (DPKO). supplied helicopters and patrol boats during the from their Prime Minister’s, Defence and ForThe expansion of these capabilities however, is conflict in Bougainville and the Sandline affair. eign Affairs departments. hampered by many examples of lack of discipline At government level, those debates are long Australia’s Defence Cooperation Programme in the disciplined forces, which have led to hugone and Papua New Guinea is being presented (DCP) for PNG is the largest allocation for any man rights breaches across Melanesia. In recent as a key strategic partner. country at A$27 million (2013-14), with funds for years, the PNGDF has faced the alleged misuse The May 2013 Joint Declaration for a New the PNGDF doubled in the ALP government’s of funds earmarked for the Commercial Support Papua New Guinea-Australia Partnership stated: 2012 budget. Australia has 25 ADF personnel Program (CSP). In July 2013, PNG soldiers “Australia and Papua New Guinea are committed working in Papua New Guinea and in 2012 attacked medical students at the University of to strengthening their enduring defence partnerannounced a new programme to improve the Papua New Guinea firing weapons, holding ship. Recognising that people-to-people links, PNGDF aviation wing, with a A$7 million anknives to their throats and causing injury and training and capacity building benefit the security nual budget for three helicopters, operating costs, widespread damage to property. The process of of both countries and the Pacific region more maintenance and training. security sector reform has a long way to go.

Security institutions neglected: O’Neil

Islands Business, February 2014 25

Politics

NORTHERN MARIANA ISLANDS

of management that ensures the protection of the marine national monument within the accepted area,” Obama said in his proclamation.

He was referring to Farallon de Pajaros or Uracas, Maug and Asuncion that are part of the Marianas Trench Marine National Monument.

Similarly, lands around U.S. military leases on Tinian and Farallon de Medinilla will be transferred upon an agreement that “ensures protection of military training within the accepted area,” the presidential proclamation adds.

Sablan said once co-management agreements are completed that address federal concerns in the marine monument’s islands unit and around the military-leased lands, the remaining submerged lands Question time...CNMI Attorney-General Joey Patrick San Nicolas (third from left) and other government officials answer questions from can be transferred to the lawmakers about unpaid land compensation. Landowners, seen here at the back, listen. Residents are still waiting for land payment years CNMI. after the government took their private property for public purposes such as to build access roads. Photo: Haidee Eugenio In Guam, the Apra Harbor and other coastal areas were handed over to the U.S. Navy, as were an underwater range off of St. Croix in the Virgin Islands.

The U.S. Department of the Interior and the U.S. Department of Commerce were given control of American Samoa’s submerged lands surrounding the Rose Atoll National Wildlife Refuge.

“Having worked for five years to win the enactment of Public Law 113-34, which conveys ownership to the people of the Northern Mariana Islands, I am deeply committed to seeing this transfer completed without further undue delay,” Sablan said.

The delegate wrote to the president and the CNMI gov“It is a priority among other

By Haidee V. Eugenio ernor, urging them to complete priorities,” CNMI Governor negotiations on both agreeEloy S. Inos said of paying U.S. President Barack Obama ments as quickly as possible. land claims amid other services signed on Sept. 18, 2013 a law conAt Sablan’s request, U.S. and programs that need to be veying 3-mile submerged lands to Sen. Ron Wyden and Sen. funded such as public health, the Commonwealth of the Northern Mariana Lisa Murkowski introduced public education, public safety, Islands, only to temporarily withhold the transfer Section 256 or the submerged retirees’ pension and utilities. to local control of five offshore lands four months lands legislation that became later or on Jan. 15, 2014.

U.S. Public Law 113-34. It ‘Temporary Nevertheless, the 14-island CNMI becomes gives CNMI control of the arrangement’ the last U.S. coastal state or territory to own its underwater coasts of its islands.

Delegate Gregorio Kilili C. submerged lands.

Sablan (Ind-MP) said in the The U.S. military is also proposing to expand 99-year lease case of Guam, the U.S. Virgin its training activities on Tinian, where two-thirds For months now, the CNMI Islands and American Samoa, of lands are already under lease to the U.S. DeHouse of Representatives has the federal government repartment of Defense, to include live-fire training. been weighing a proposed tained “permanent ownership The military also eyes the use of another island, constitutional amendment to of lands.”

Pagan, for the first time as a live-fire training area. increase the maximum 40-year “But in the case of the On an election year, the CNMI is dealing with lease term on public lands to Northern Marianas, the presiother land-related issues including a pending 99 years. If the House and Senate pass Speaker dent decided on a temporary arrangement,” initiative that, once passed by both the House Joseph Deleon Guerrero’s (Ind-Saipan) House Sablan said. of Representatives and Senate, would ask voters Legislative Initiative 18-5, it will be placed on U.S. Public Law 113-34 added the CNMI in November if they want to extend the current the ballot for voters’ ratification in the November to the Territorial Submerged Lands Act, which 40-year limit on leasing public lands to 99 years.

2014 elections. transferred ownership of lands around Guam, Then there’s the long-standing issue of the Article 11 of the NMI Constitution partly the U.S. Virgin Islands, and American Samoa to government unable to pay some 300 landowners states that public lands “may not transfer a leaselocal control in 1974. for the taking of their private property for public hold interest in public lands that exceeds 25 years Three of CNMI’s islands will remain in federal purpose such as building public access roads, including renewal rights. hands pending an agreement for “coordination wetlands and ponding basin.

Gov Inos deals with land issues

US withholds transfer of 5 offshore lands

“It is a priority among other priorities,” says CNMI Gov Inos of paying land claims amid other services that need to be funded....”

26 Islands Business, February 2014

TUVALU An extension of not more than 15 years may be given upon approval by three-quarters of the members of the Legislature.”

Proponents of the proposal said a longer leasehold term would encourage lending by investment and financial institutions to finance major projects that will then create jobs and stimulate other economic activity.

They said a 99-year lease will generate renewed development interest in the CNMI among investors.

Among the proponents is the 160-strong Saipan Chamber of Commerce, the largest business group in the CNMI. While the maximum lease term for public lands is 40 years, the maximum lease term is longer for private lands—55 years. Attempts to also increase the land lease term for private lands from 55 years to 99 years have failed over the years.

CNMI voters will have another proposed constitutional change on the ballot. This has to do with proposed changes to the NMI Constitution’s Article 12, which restricts ownership of lands to persons of Northern Marianas descent.

The Article 12 initiative allows any U.S. citizen with “at least some degree” of Chamorro or Carolinian blood to be considered a person of Northern Marianas descent who can own land in the CNMI. ‘Pay us’ In January, landowners who have yet to receive payment from the government for the taking of their lands for public purpose went to Capital Hill to demand payments.

Among them is 77-year-old Rafael Rangamar, claiming US$14.4 million in exchange for the taking of his family’s land for road construction.

“We’re not asking for everything at once. We need at least a portion of what we are owed. We live in a termite-infested house. Also last year, our power and water supply was cut off because we couldn’t pay anymore. I hope the government would help us,” the wheelchair-bound Rangamar said.

Government records have shown that under previous administrations, the government paid landowners between US$100,000 and US$4.4 million each, while some 300 others have not even received a penny.

Now, landowners and even government officials are demanding equitable and fair distribution of land compensation in the future.

The bigger question right now is, “Where would the CNMI government get the money to pay the land claims?” House Ways and Means Committee chair Tony Sablan (Ind-Saipan) is suggesting the use of interest income from public land investments to satisfy at least portions of the outstanding claims.

Another one is to float a bond although this has yet to be formally presented, House Natural Resources Committee chairman Antonio Benavente (Ind-Saipan) said.

A proposed constitutional change, meanwhile, allows income from public lands to be used to compensate landowners for the taking of their property.

But with so many initiatives on the ballot in November—and some are on their way — voters would have to learn as much about each proposed constitutional change to be able to make wise decisions about issues related to lands, a limited resource in island chains like the CNMI.

Politics

New MP Tausi to be the next Speaker?

Parliament to decide in March or April

elation whilst releasing the 2014 budget of A$39.1 million last December—an increase from the 2013 budget of $32.6 million.

E xpect a new S peaker for He said the government expects to earn a total Tuvalu’s parliament when parliaof A$45.4 million in revenue—A$6.5 million ment sits either in March or April. from the Tuvalu Trust Fund, A$7.8 million from Following the Nanumaga by-election on Janutaxes, A$13.9 million from fisheries licences, ary 14—Otinielu Tausi won the seat and joined A$4.05 million from dotTV, A$2.91 million from Prime Minister Enele Sopoaga’s government marine and other charges, and A$14.5 million side, taking their numbers to 10 as opposed to from grants. the Opposition’s four.

Toafa told parliament last year that the budget Tausi confirmed to Islands Business that he was prepared with great cauhad joined Sopoaga’s side and tion because of the uncertainty would likely become Speaker surrounding the global markets barring any surprises. and the impact on their major His joining government revenue sources like the Tuvalu means they now have the conTrust Fund. stitutional majority to pass a “While the current financial motion in parliament seeking situation of the government Sir Kamuta Latasi’s removal. has improved due to the recent Latasi was involved in a direct budget support received political controversy in then from Australia, Asian DevelPrime Minister Willie Telavi’s opment Bank, World Bank, attempts to hold onto his job.

New Zealand, and Republic of Twice the Governor-General China (Taiwan), the immediate Sir Italeli Iakoba had to use and long-term outlook for the his powers to ensure proper nation remains uncertain. constitutional procedures were Late last year after taking observed. over the leadership, Prime Finikaso said once all governMnister Sopoaga and his new ment MPs were on the island, cabinet invited donor agencies they would call parliament and Enele Sopoaga...could he be replacing his follow the proper channels to Speaker in the next parliamentary sitting? to Tuvalu to listen to their plight and vision for goverremove the Speaker.

Photo: File Photo nance. A joint donor approach Tausi said the job is nothing for Tuvalu was taken by these new as he was Speaker from agencies.

2003 to 2006.

Finikaso said most of the finances would go to On the needs of his constituency in Nanumaeducation and health. ga, he said food security was not only a problem He said this would lift the standard of educafor his island but the whole nation. tion for young Tuvalu school leavers.

“We rely too much on imports and I would The budget has allocated A$7.5 million to like to see my people plan more so they are not education, of which A$1.83 million will go todependent on imports,” he said. wards scholarships for 2014 (compared to A$1.59 “We can plant potatoes and bananas instead of million in 2013). relying on imported flour and rice. Eighty percent The other crucial area is health, which received of our imports are from Australia.” a total of A$5.44 million of which A$1.8 million The Nanumaga seat was declared vacant after will go towards the Tuvalu Medical Scheme, Dr Falesa Pitoi fell ill a year ago. He has not set which caters for patients who are recommended foot on Tuvalu since. for referrals to overseas facilities.

Tausi said going into the by-election he felt he Finikaso said most referrals are made to Suva at would stand a better chance this time as he had the private hospital or the Colonial War Memomore experience. “I also feel that the last Telavi rial Hospital, which for them was the cheapest Government dedicated too much of its time and option so far. resources on social projects, neglecting economic “The scheme basically assists Tuvaluans who development,” he said. cannot be treated locally,” Finikaso said.

He lost his seat in 2010 and before that had Finikaso said the budget also provided for the been a parliamentarian for 21 years. construction of two clinics on the main island of Funafuti to ease the general outpatient demand Budget at the main hospital in the capital.

Meanwhile, the 2014 Tuvalu budget is ex“As you can see both these areas take up a third of pected to make a surplus of A$6.28 million. our budget which indicates our focus,” he said..

Finance Minister Maatia Toafa made the rev-

By Robert Matau

Islands Business, February 2014 27

Business

Cobalt in Cooks awaits exploitation Could supply 10% of global supply Papua New Guinea waters.

It’s an interest that has continually been the This year could be a defining year for seabed subject of much criticism because of fears it will minerals in Cook Islands. severely damage the ocean’s ecosystems but this There are plans by its government to move a hasn’t stopped Pacific Islands countries with step closer to exploration of its massive cobalt seabed mineral prospects—Cook Islands among resource, following the completion of consulthem—to revisit their opportunities in that area. tation work with the International Monetary They are being assisted by the Applied GeosciFund (IMF) on how to maximise this potential ence and Technology division of SPC (SOPAC), national wealth. especially in the drafting of relevant national laws.

In an interview with Islands Business last In PNG, the arrival of Nautilus became the year, Cook Islands’ Minister for Finance Mark catalyst to the drafting of national policies and Brown revealed his government’s legislation on seabed mining but intention to ensure that critical Cook Islands had decided it will not groundwork is laid before any adallow exploration or mining until vancement in this area, given that all relevant legal and policy work undersea mineral exploitation is still are in place. a new frontier globally.

Its Seabed Minerals Act was “Our legislations have been in passed in 2009, establishing the place for a number of years now and Cook Islands Minerals Authority they came into force in March (last and a regulatory framework for seayear), so we’ve been setting in place bed mining in the country. a legal framework for the exploitation It has also gone a step further of our minerals resources,” Brown to explore the concept of having a told Islands Business. sovereign wealth fund for seabed “We are also in the process with minerals proceeds, a model used by the IMF of working out a taxation Mark Brown...Cooks is many countries to manage national sitting on a significant field and royalties legislation to determine wealth from their mineral resources, of maganese nodules. Photo: how we will maximise the returns SOPAC oil predominantly. on those resources. And we also had “It’s been estimated that the value a study done on the establishment of a sovereign of our minerals below the sea is in the billions of wealth fund so that revenues collected from this dollars, which will make us one of the wealthiparticular resource will go into a dedicated sovest countries in the world if we can get down ereign wealth fund,” Brown added. there and exploit the value of these minerals,” Cook Islands is said to be sitting on a significant said Brown. field of manganese nodules, which are known to “So by the end of (last) year, we would have host mineralisation in the seafloor. According to completed our work on the exploratory licences a study done there in the 1990s, its manganese regime and we will be putting out expressions nodules are so rich in cobalt that they’re enough of interests to companies or countries that wish to supply global demand for the next 500 years. to take out exploratory licences to determine Known data at the time estimated that even whether full exploitation is actually feasible,” if a small portion of Cook Islands’ manganese he added. nodules is mined, it would be enough to supIn its initial analysis on Cook Islands’ proposed ply 10 percent of the world’s annual cobalt sovereign wealth fund for its undersea minerals consumption. resources, the IMF said the Pacific region had Although interest in exploration work there has produced cases of both successes and failures, been expressed and carried out by a number of which underscored the importance of having well parties in the past, among them a U.S engineering structured and well managed funds. firm, they have not translated to any progress in “Kiribati, Timor-Leste, Papua New Guinea actual mining as economic viability was always and Nauru have SWFs established for nonquestioned. renewable resources. Tonga and Tuvalu have Globally, technological advances in undersea funds established from revenue windfalls and mining equipment have been slow while in Tuvalu, Marshall Islands, Micronesia and Palau the country, specific legislations to regulate the from donor contributions. An IMF study on sovrelatively unknown industry were also slow to ereign wealth funds in the Pacific islands provides take form. insights into the successes and failures of these Recently however, interest in seabed mining funds. The failures of the funds in Kiribati and especially in the Pacific was rekindled following PNG provide some lessons on how important substantial interest and progress by Canadianthe design of the investment strategy can be. The listed mining company Nautilus Inc. to launch Timor-Leste Petroleum Fund provides a model the world’s first commercial seabed mine in for effective design,” the IMF said.

By Dionisia Tabureguci

28 Islands Business, February 2014

Pulping coffee...in the highlands. Photo: Paradise

Brazil coffee ov ers to hit PNG/Van ua Global production to exc eed

By Davendra Sharma As global supply exceeds demand for coffee for a fourth straight year, small world producers like Papua New Guinea and to lesser extent Vanuatu will feel the pinch of exports dwindling in 2014 in the US$70 billion world market.

The latest twist and turn on the world coffee scene will have a devastating blow on PNG— which though a small player by global standard —has nearly 2.5 million workers employed in the industry at home from roadside stallholders to large corporations relying on rich export revenue.

At the start of 2014, the world coffee futures fell, capping the longest run of annual declines in two decades, on fears of a global glut because of oversupply from the world’s largest producer, Brazil.

Unlike some industry world markets like petroleum fuel, where leading producers form a cartel and restrict supplies to stimulate product price and maintain high returns with limited sales over prolonged periods of time, coffee producing nations have been too busy competing with each other.

Ideal weather late in 2014 in Brazil’s Sao Paulo and Parana states—the two mega coffee produc-

Business

exc eed demand in 2014 ing regions—have helped yield bumper crops raising hopes that the nation’s available exports will hit 49.2 million bags, surpassing the previous estimate of 47.5 million.

“Global production is set to exceed demand for the fourth straight season, pushing inventories to a five-year high,” noted the United States Department of Agriculture early January.

Coffee integral to PNG After peaking in 1998, when coffee was responsible for 38% of the country’s non-mineral, both production and sales have steadily shrunk in PNG. The United Nations Conference on Trade and Development (UNCTAD) estimates that after palm oil, coffee is PNG’s second largest export.

It is the highest foreign exchange earner for the country, with majority of farms scattered in the Western Highland province.

With the product classified as organic, production in the former Australian colony started in 1926 with Jamaican Blue Mountain coffee.

To-date, the washed mild Arabica highland coffee dominates exports, accounting for 95%.

While Arabica is generally turned into espresso, cappuccino and latte in the European Union mar mar-

Prices drop 54% since 2010 Global output of coffee, including the robusta variety that accounts for 42% of supply, will surpass demand by 6.04 million bags this year, compared with a surplus of 11.06 million in the previous season.

The USDA predicts that world stocks will reach 36.33 million bags—with each bag weighing 60 kg— the highest since the 2008-09 season.

The good news out of rising world supply is falling costs of large coffee chain outlets like Starbucks in Europe, US, Asia and Australia, and Green Mountain Coffee Roasters. Last year, the price shrank by 23 percent, pointing to a total 54 percent drop since 2010.

Tanna Coffee has world prospects Fertile soil and favourable unique climate prompted Australian investors to flock to Vanuatu’s Tanna Island for coffee planting in 2011, though estimates of only around 100,000 plants are being picked weekly as of last year.

However, local agriculture officials expect that by 2016, new farming techniques will yield enormous results on the island—inducing production of up to 170 tons per week.

Though the plateau of Tanna Island is only 400 metres above sea— similar to parts of Fiji and that of Townsville in Australia, trade winds and cool nights allow for thriving coffee growing conditions with the assistance of shade from other plants.

“Tanna Coffee can export two or three times more coffee without any problem to foreign markets. It’s ready on the supply side,” said World Trade Organisation Director, Pascal Lamy.

“This is where we (WTO) can help Vanuatu to focus on building more capacity to supply and to produce.”

On a visit to Tanna last year, Lamy suggested that with Vanuatu joining WTO, the country had opened doors to a wide global scene.

“There is potential to grow its exports and benefit from the rules gained on its export market which are fair, transparent and predictable.”

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ov ersupply Van uatu

kets of Germany, France, Italy and Switzerland as well as by American coffee giant, Starbucks, PNG’s robusta brand is of poorer quality and often processed into cheaper instant coffee.

Over the years of soaring and falling export earnings, the coffee industry in PNG thrived in the 1970s as a result of continued frosty weather in Brazil. In between 1995 to 1998, coffee production accounted for 42 percent of total agricultural earnings for PNG. Agriculture officials in the country estimate that 87,000 hectares is under coffee farming, especially in the Highlands, where upwards of 70 percent of the population are directly dependent on the industry.

PNG’s exports peaked at 1.18 million bags but over the last two years, the numbers fell sharply to around 650,000 bags.

The World Bank in one of its reviews noted that fundamental changes in the world coffee market—hovering around US$70 billion every year—will have major implications for the future of the PNG industry.

While the world market has blossomed from US$30 billion to US$70 billion, the growers’ share of profits have fallen from 40 percent to a mere 10 percent. The over-supply of cheap Robusta coffee from Vietnam and mediumquality Arabica coffee from Brazil has instigated a permanent shift in demand.

“If PNG’s coffee industry is to remain viable in the longer term, it must produce more, better quality coffee. This can be done through a number of mechanisms including grower groups where members are committed to producing higher grade coffee,” the World Bank noted.

The Peter O’Neill government has set an optimistic target of 90,000 tonnes by 2016 —a far cry from 2013 sales of US$140 million in coffee revenue.

Coffee in PNG has over the years surpassed cocoa exports, which last year raked in US$60 million.

PNG’s main markets are Germany, 40%, Australia, 20%, the US 20%, and Japan 9%.

Call (677) 21222 Email gmsolomons@westpac.com.au Visit Mendana Avenue, Honiara or www.westpac.com.sb

Islands Business, February 2014

Business

Good news for the in terms of EU fun Aid cuts won’t hit region Suva...capital of Fiji.

The Pacific will not suffer aid cuts under the European Union’s new international aid initiatives. Photo: Islands Business

30 Islands Business, February 2014

By Robert Matau The Pacific should consider itself lucky.

It is not amongst the 19 countries that will suffer aid cuts under the European Union’s new international aid initiatives.

A spokesperson from the European Union’s office in Suva said the Pacific is not amongst the 19 middle-income countries which will cease to get development funding from the EU in 2014.

The 19 countries falling into this classification are Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama, Peru, Uruguay, Venezuela, China, India, Indonesia, Malaysia, the Maldives, Thailand, Kazakhstan and Iran.

Whilst the spokesperson could not divulge the actual amount for the Pacific, he said the amount would be higher than the 10th European Development Fund of Euro 22.6 billion for the years 2007 to 2013.

“Your information regarding the 19 middle income countries ceasing to receive development funding is correct. Nevertheless, this does

Business

or the Pacific EU funding

gion

• 18 billion euros to promote democracy and prosperity in countries in neighbouring Europe, with continued focus on the commitments to help the poorest in the world; • 23 billion euros to support poverty eradication, through the Development Cooperation Instrument (DCI), in the spirit of maintaining the EU’s pledge on the Millennium Development Goals (MDGs); • 30 billion euros to support partner countries in the framework of the Cotonou Agreement, through the European Development Fund (EDF).

The EU spokesperson said from these financial instruments, the Pacific was mostly covered by the EDF. “Through the 10th EDF, the European Union allocated €Euro 22.6 billion in 2007-2013.

In the 11th EDF (2014-2020), the budget has significantly increased.

“Therefore, the regions benefitting from the EDF (among them the Pacific), will actually received more that in previous years.

He said the breakdown of the 11th EDF funding was not available at the moment as it is yet to be formally adopted. “Even though the European Commission, the European Council and the European Parliament have agreed, the Internal Agreement for establishing the EDF will only enter into force after ratification by all the EU Member-States. This process will probably be concluded in early 2014.

...fresh funding for the Pacific are part of the EU’s new external co-operation.

not concern the Pacific region,” he said.

“High income, upper middle income and other large middle income countries, which are on a sustainable development path and/or have access to large domestic and external resources to finance their own development strategies, would, in principle, graduate out of bilateral aid programmes in the framework of the DCI (Development Cooperation Instrument).

“This will increase the impact of the EU’s development policy and target more funding where it is most needed.”

These initiatives and fresh funding for the Pacific are part of the EU’s new external cooperation framework for the 2014-2020 period.

During the next seven years, the EU will provide financial support to third countries as follows:

Singapore Asia

SOLOMON AIRLINES

Priorities for 2014 He said under the EU’s agenda for change, their assistance will focus on two priority areas: • Human rights, democracy and other key elements of good governance; • Inclusive and sustainable growth for human development.

Aid will therefore now target the following areas: • Social protection, health, education and jobs; • Business environment, regional integration and world markets; • Sustainable agriculture and energy.

The priority areas for the Pacific: • Water and sanitation; • Renewable energy and energy efficiency; and • Fisheries and maritime infrastructure.

The spokesperson said whilst Europe Aid Deputy Director-General Marcus Cornaro, visited Fiji last October for a programming exercise for the 11th EDF, funding for Fiji.

Honiara

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PHONE: Brisbane - (617) 1300 894 311 Nadi - (679) 7672831 Honiara - 177 from within the Solomon Islands or (677)20031 externally.

“Until the ratification takes place the European Union will be implementing transitional measures to ensure the availability of funds, as well as for support expenditure, between January 2014 and the entry into force of the Internal Agreement mentioned above.

“This will be financed from balances and decommitted funds of the 10th and previous EDFs. He said the areas of support were a matter of dialogue between the European Union and their partners in the Pacific.

This approach was necessary to maximise the country’s ownership of the process and of the support’s direction.

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Interview

“Carbon bubble” threatens to be destructive to the planet Marlene Moses…development and adaptation inextricably linked. Photo: www.iisd.ca

MediaGlobal News Bureau Chief Nosh Nalavala interviewed Ambassador Marlene Moses, Permanent Representative of Nauru to the United Nations on the impact of climate change on small islands.

Last month at the General Debate in the UN General Assembly you spoke of “Small Islands Developing Countries (SIDS) being battered on all sides.” What did you mean?

Small Islands Developing States are on the frontline of climate change, which means droughts, extreme storms, and increasingly sea level rise are causing life-altering changes.

At the same time, because of our unique vulnerabilities—isolation, high dependence on natural resources and imports – even small fluctuations in energy and food prices hit us particularly hard.

Do you attribute the constraints to SIDS due to the intermittent flow of Official Development Assistance (ODA) and a stagnation of climate finance?

Yes, a lack of predictability in ODA—what is earmarked for sustainable development and what is for previous arrangements—has made it difficult for developing countries (SIDS in particular) to establish long-term plans that help us transition to a sustainable future.

What are your expectations from the post-2015 Development Agenda process, particularly in the area of adaptation for SIDS and the Climate Agenda?

The post-2015 process, especially in light of other opportunities for SIDS to make progress on some of our key issues in the next few years, is crucially important if SIDS are able to adequately adapt to the worsening impacts of climate change.

In fact, the impacts are so ubiquitous now, it is no exaggeration to say that development and adaptation are inextricably linked.

The Third Conference on the Sustainable

Development of SIDS and a new climate change agreement in 2015 will have enormous implications for the sustainable development prospects of small islands. How do you see it impacting Nauru and the islands in the Pacific?

What we are ultimately hoping for is for once and all to initiate a transformational change in how we approach sustainable development as an international community.

This would mean shifting from a system of piecemeal one-off workshops and short-term projects to real institution building that invests in our people and governance structure over the long term. That would be lasting positive change for Nauru and our region.

You have referred to the “Carbon Bubble”.

Could you please explain this concept in relation to carbon emissions?

Just as we saw a gross misallocation of resources fuelled by rampant speculation, poor risk management, and most importantly, a deficient regulatory system in the lead up to the recent global financial crisis, we are witnessing a similar man-made disaster at work with the world’s overreliance on fossil fuels. This “carbon bubble” threatens to be even more destructive to the planet, especially the communities that have contributed least to inflating it.

Ambassador, you are the Chair of the Alliance of Small Islands States (AOSIS). The upcoming Conference of Parties in Warsaw will be important to laying the foundation for an ambitious agreement in 2015. What are the priorities for AOSIS at the upcoming climate change conference in Warsaw?

Our priorities are set by what has to happen

to keep emissions in line with scientific recommendations, beginning with increased short-term mitigation ambitions.

Our Workstream 2 proposal provides a common-sense practical plan that will give countries the confidence that they can in fact do what is necessary in a variety of areas, from sustainable development practices and policies to finance and other key priorities.

Would you say these priorities have changed from what they were at the last COP conference or have they remained the same?

Just as last year and the year before and the year before, the world needs to take action to reduce emissions and provide the resources necessary so developing countries can build sustainable futures.

That is still true, and we know that the longer we wait the deeper the cuts will have to be and the more costly the crisis will become.

What tangible outcomes, if any, does AOSIS expect from the Conference?

We will be pushing especially hard for real commitments on loss and damage and resources for the Green Climate Fund. We think that is achievable, and it is certainly what is needed.

AOSIS has proposed a collaborative approach to rapidly scale up the implementation of policies and deployment of technologies that not only reduce greenhouse gas emissions, but also advance domestic sustainable development priorities. Could you elaborate on it?

The AOSIS plan is to complement the climate talks with a line of technical discussions focused squarely on achieving emissions reductions as soon as possible. The idea is to engage the best and brightest minds working on climate and energy issues—officials from relevant ministries, leading scientists, engineers, policy analysts, and representatives from civil society, community organisations and the private sector—in a collaborative process capable of delivering results in the time frame required.

Islands Business, February 2014

Culture

Tattoo business takes off in Samoa The gift the Fijians gave away

By Merita Huch

on those who’ve been baptised into the Congregational Christian Church of Samoa.

As the biggest church denomination in Samoa, many weren’t able to have tattoos done. Anyone who goes against this ban would lose their positions in church whether it be deacons, lay preachers or pastors and their wives.

However, in the church’s annual general meeting last year, the ban was lifted, and this has added to the increasing number of people who are now

When the gift of tattoo was given to Samoan twin girls in Fiji, they swam all the way to Samoa to perform the first tatau.

It was a gift that’s lasted thousands of years and while the Samoans had fiercely guarded this art making it a Samoan tradition, times have seen many other nationalities now taking this up n either by learning about it or by wearing it.

The festive season is often a time when the families come to Samoa for holidays, reunions, weddings, funerals and title bestowments.

For over two years now, there’s now another tradition that’s made many Samoans return home and that’s getting a tattoo.

The Su’a family members, the only people allowed to perform this tradition, are kept up at all hours trying to cater for those now queuing up to get their tattoos done.

The average tatau (men’s tattoo) takes between a week to two weeks and they cost $5,000 (Samoan tala).

The malu (women’s tattoo) takes just a day or two and that costs $1,500 (Samoan tala).

For Su’a Senior, who has been performing tattoos for thousands of Samoans for over four decades, he had decided to give his sons most of the work, opting to take more time for himself. But he’s often requested to perform tattoos to the many Samoans living in New Zealand, Australia, Hawaii or the United States.

His son Su’a Peter has been working in Hawaii while his youngest son Su’a Sulu’ape Junior has been looking after things in Samoa. The festive season, however, had seen all three tattooists come together in Samoa to cater for the number of those wanting tattoos.

There are many traditional taboos surrounding this tradition.

Those undergoing tattoo cannot Taumafai Komiti (middle)...proudly displays his tattoo. Photo: Merita Huch sleep with their partners during the actual operation. They cannot drink alcohol, cannot shave, cannot have sex nor can they sleep using a wanting to get their tatau or malu done. pillow. They are also not allowed to be alone at Eddie Pao is half Samoan, half Chinese, his any time. That’s culture, however, there are other parents run a restaurant and a hotel in the middle conditions to ensure that they remain fit to take of the town of Apia. It’s called Treasure Garden. on more of the operation day after day.

Pao grew up in Samoa and had always wanted They are supposed to walk around to ensure to have a tattoo done but many of Chinese descent the blood is circulated properly. So much blood in the country do not share the same enthusiasm loss banned traditional tattooing for many years 34 Islands Business, February 2014

over tattooing as Pao, so the support for him to go ahead with this decision had not been easy.

Another of Chinese Samoan who lives in China had travelled to Samoa for the same purpose.

Taumafai Komiti lives with his mother after his Samoan father passed away. “He had always wanted me to have a Samoan tattoo done but I wasn’t interested at first. Since he passed away, this is one way of keeping my father’s memory especially having lived away from Samoa,” says Taumafai.

Taumafai is in Samoa with his mother Angela.

His father Moefaauo Lotomau Komiti passed away on New Year’s Day 2010 and he was someone his wife said was always proud of his tatau. She said her son Taumafai was the only one that showed interest in following his father’s wish and four years later, he’s here to fulfill his father’s wishes.

For two weeks he went through the tattooing rituals and learnt more about the Samoan culture.

“I’ve learnt more about Samoa these two weeks than I had ever done in my whole life,” he says.

There to support him in this ordeal is his father’s family from all over Samoa.

For a discipline that’s been around for thousands of years, the changes it’s gone through in the way the tatau and the malu are operated are immense.

Many Europeans travelled to Samoa just to get the half-body tattoo done and they’ve met no challenges.

The costs have increased so as the number of those wanting their tattoos done. For the women’s malu, it’s an art form that was given only to the daughters of high chiefs, but today anyone can get it done as long as you have a day or two to spare and $1,500 (Samoan tala).

There are still the original rules that need to be adhered to but it’s proving a lucrative business in the town of Apia.

It’s the only business that does not allow outsiders to perform it. The family that the gift of tattooing was given continue to prosper from this ancient art although their designs are no longer limited to the body.

Designs for clothes and other materials are now used all over the world, the most recent being the NIKE sportswear that the giant company later apologised for using and removed it from sales.

There are countless disputes over the ownership of the original design but the spread of the tatau and malu patterns today makes it difficult to work a case against anyone.

The Su’a family claims that it’s theirs but the education ministry feels it’s an art that belongs to all Samoans.

It’s interesting however that nobody in Fiji has come up with a claim, after all it was them who gave the gift to the Samoans.

Health

Alarming stats Sixty-two percent, which translates to three in every five Pacific islands adults, are being obese. It is a rate two-and-a-half times as high as non-Pacific people. With one in 10 diagnosed with diabetes, three times more islanders have this debilitating lifestyle disease than the non-Pacific population. Importantly, almost half of the at-risk Pacific population remains to be diagnosed. So the real scenario could be far more alarming.

Poor choices in food and drink and a lack of preventative dental care measures cause both Pacific adults and children to have a higher rate of teeth removal due to decay or other factors than non-Pacific adults and children while Pacific adults have a higher rate of mental health issues. Dwellings of Pacific islands people have also been found to be of a poorer standard in terms of insulation and air circulation leading to more allergies and respiratory tract infections.

The problem is compounded by the fact that Pacific islanders also find themselves among the lowest earning segment in New Zealand’s income pecking order. Costs and transportation issues are the reason why nearly a third of Pacific adults cannot have their primary healthcare needs met over a 12-month period, studies show. Pacific people made up 6.9 percent of the total New Zealand population in 2006. Their numbers are estimated to grow to 10 percent by 2023.

• Pacific Peoples Health can be accessed online at www.pacificpeopleshealth.co.nz Publisher-editor Innes Logan...with the new magazine. Photo: Dev Nadkarni

New mag shines light on Pacific’s health issues Alarming stats for islanders

By Dev Nadkarni It has been known for some time now that people of Pacific Islands origin living in New Zealand find themselves overrepresented in health-related statistics—particularly around lifestyle ailments.

Three in every five Pacific Islanders is obese, three times more islanders have diabetes and markedly more Pacific people have oral and mental health issues than other groups.

This is a major worry for New Zealand’s health authorities and while the concerned government ministries have continued information dissemination and awareness generation programmes across different media, there has not been a regular, periodic media vehicle to address Pacific health concerns aimed at the general Pacific Islands audience in the country.

A new quarterly magazine titled ‘Pacific Peoples Health’ launched in January 2014 plans to change that. Oceania Media, which has published the popular and successful six issues a year Spasifik magazine for a decade now, is the team behind this new, more specialised offering.

Publisher and editor Innes Logan says there

has been a growing demand for covering more health stories over the past few years.

“I think there has been a general acceptance with the way we cover health stories—we don’t shirk from the stats but provide stories which our people engage in. For Pacific people, the lack of engagement and access to the health system has been one of the barriers,” Logan told Islands Business. Planned as a quarterly, the magazine also has an online edition.

Asked about the wisdom behind a conventional, paper-based magazine in the age of the tablet and smartphones, Logan said, “I believe print still has its value. People spend more time reading print rather than online where it’s easier to get sidetracked. It’s amazing how many people who have seen it online have requested a hard copy.”

The first issue covers a mixture of key health issues that affect the community (the recently published Child Poverty Report, aged care, dangers of fizzy drinks); personal stories (Samoan rugby player Peter Fatialofa’s untimely death); inspirational people (48-year-old Auckland father of six Andrew Fifita-Lamb, who ran the 160-kilometre round the mountain race in Taranaki wearing only home-made jandals); statistics;

healthcare tips; key contacts related to healthcare and fitness besides other content.

At present, Spasifik’s small editorial team puts together the new magazine along with a couple of contributors. “But we’ll look to have more specialists providing their contribution is suitable for a mass audience,” Logan said.

Pacific organisations in the islands as well as from the growing Pacific communities in Australia and the United States have contacted Oceania Media since the launch of the new magazine.

“They don’t have access to the in-depth health stats New Zealand accumulates for its population but they say the stats in their country would be even worse—particularly the US Pacific community.

“The stats are still relevant to the islands. I’d like to see it available in the islands,” Logan said.

Though it is early days, Logan said the magazine has been received positively. “Readers generally like the mix of content, and they’re generally more responsive to a ‘by Pacific, for Pacific’ approach.”

Stressing the importance of the ‘by the Pacific, for the Pacific’ approach, he said: “For a variety of reasons many Pacific people have an instant expectation that mainstream media coverage on such issues will be generally negative and brownbeating. That expectation isn’t always justified but such perceptions will prevent worthwhile engagement from the outset.”

Logan is confident the new magazine will go some way in making a difference to Pacific people’s attitude to healthcare issues.

“With the initial feedback and our long-standing track record with Spasifik, I genuinely believe it can and will make a difference. Providing attractive, engaging, accurate and relevant content and making it free and accessible, is key,” he said.

Islands Business, February 2014 35

Health

Be warned…long-term spatial memory loss linked to starch and sugar-laden diets. Photo: Manukau Institute of Technology

Memory loss linked to starch and sugar-laden diets A big worry for Pacific islanders

By Davendra Sharma F orget weight gain — long - term spatial memory loss has now been linked to starch and sugar-laden diets as a warning to Pacific islanders over their lifestyle of high fat traditional foods.

A gradual shift from age-old Pacific islands diets relying heavily on backyard-grown foods to imported sugar and refined carbohydrates-rich foods since the 1980s, has seen the region suffer severely with high world-beating obesity rates and incurrence of diabetes.

A recent New Zealand study also established that a key cause to the problem is when imported refined and processed carbohydrates are added to the diet of islanders.

Changes in brain in just six days A diet stacked with saturated fat and sugar could instigate immediate effect on the brain’s cognitive ability and cause memory loss, noted Margaret Morris, head of pharmacology at the University of the New South Wales in Sydney.

The far-reaching research revealed that exposure to junk foods over just six days could reduce spatial recognition—or the ability to notice when an object has been moved to a new location.

“We know obesity causes inflammation in the body, but we didn’t realise until recently that it causes changes in the brain,” said Morris.

She asserted that the speed with which the 36 Islands Business, February 2014

deterioration occurred was alarming, with a spatial memory loss appearing long before any weight gain.

“After consuming a high sugar and fat diet for one week, we found that the hippocampus, the brain structure which is critical for learning and memory, had increased inflammation,” Morris noted.

In humans, spatial memory is essential in navigation and recalling where everyday use items like car keys and mobile phones are located.

Damages not reversed when diets are switched “Our preliminary data also indicates that the damage is not reversed when they are switched back to a healthy diet,” Morris said in her publication, Brain, Behaviour and Immunity.

Once brain damages are sustained to a certain degree by excessive and continuous intake of high fatty foods, returning to better healthy routine does not undo the initial effects imposed on the person.

The study seemed to advocate a return to diets which has been around in our grandmother and great grandmother days, similar to recommendations of another research conducted on eating habits of Pacific islanders now living in New Zealand.

Trials now carried out in the Pacific islands community in the world’s biggest Polynesian

capital, Auckland, show that obesity and diabetes are a growing concern.

“What you see is contrary to what the regular health advise is, which is like you’re too fat, you need to exercise more and eat less and you particularly need to get your fat down,” declared Dr Professor Grant Schofield from the Auckland University of Technology last month.

Schofield noted that Pacific islanders would be better off following their traditional diets as was the practice before urbanisation and imported and sometimes rejected foods took its toll on the region.

“If your grandmother and great grandmother would recognise it, eat it. If they wouldn’t have eaten it just forget about it.”

Schofield also found that if the islands populations reverted back to traditional diets, healthier lifestyles lies ahead for future generations.

“So as soon as you start to think about traditional dieta, don’t worry about this fat and what’s in the food so much, but just think about what’s been around 100 years ago and that’s the path to health.”

He said once you add sugar to the traditional diets, the fat issue arises.

A high carbohydrate diet works for the Chinese, Japanese and some other Indian cultures where rice is a staple in their diet.

“My observation is that Pacific people don’t do well on those sorts of carbohydrates,” notes Schofield.

“The Pacific population has really been eating good quality and relatively high fat diet coming from plants for most of the time the Pacific’s been around.

“Whereas you go to Japanese and Chinese populations, they’ve been eating rice for thousands of years. So they’re quite different. But all those countries once you start to add the third thing which is sugar, they all go badly.”

Vanuatu sets out new path Schofield notes that of all the Pacific islands populations examined under special island diet study, ni-Vanuatu people fared better with fighting off obesity. The trend in Vanuatu is really fascinating as many locals benefit from following their traditional food regime, high in fat but low in carbohydrates.

“The problem is to try and stop them developing the same problems that the Pacific has started to develop, which is as soon as you start to develop and urbanise and change your food, then everything goes quite badly wrong,” cautioned Schofield.

Of all the islands countries, Vanuatu relies the least on imported foods that are highly processed, such as white flour, white sugar, canned meat and fish, margarine, , carbonated beverages, candies, cookies and breakfast cereals.

In some countries in the region between 80-90 percent of the food intake is imported, instead of relying on locally-grown provisions. Local fruits and vegetables are increasingly scarce due to population growth.

“Traditional methods of hunting and gathering wild food, farming, processing, storing, and preserving traditional foods have all but disappeared in some areas,” notes one Hawaii-based finding on changing Pacific foods and culture.

Obesity among Pacific islanders is among the highest in the world, according to a survey by the WHO.

Environment Secretariat of the Pacific Regional Environment Programme told the media.

Despite the relatively dry, hot and humid conditions in the islands region in late 2013-early 2014 period, the region has escaped from any horrific cyclones.

“I thought we would see more cyclone activity by now, given that sea temperatures around Vanuatu to Fiji to Tonga to Samoa tend to be about at least one to one and a half degrees warmer than normal,” said Koop.

After Cyclone Evan…in Nadi. Cyclone Evan left a destruction bill of US$200 million and several islands economies in tatters. Photo: SOPAC

More cyclones loom for the region?

As many as 11 predicted in next 3 months

By Davendra Sharma It’s been slow in coming this season but the next three months could bring as many as 11 cyclones to the Pacific islands region.

In the preceding 2012-13 November-April cyclone season, the region took the brunt of 24 cyclones including the killer Cyclone Evan which claimed 14 lives in Samoa.

Its devastation was also felt in Fiji, New Zealand, Tonga and Wallis and Futuna Islands, which left a destruction bill of US$200 million and several islands’ economies in tatters.

But against all odds, the last six months of 2013 to December has been different—the region was spared of tropical storms. Meteorologists argue that an average of 27 cyclones a year have frequented the islands region in the last 20 years, from 1981 to 2012.

Cyclone watchers in Australia say the cyclone are due to neutral El Nino-La Nina conditions in the region.

The occurrence of tropical cyclones in the vast Oceanic region is monitored by the Regional Specialised Meteorological Centre (RSMC) in Nadi and the Tropical Cyclone Warning Centres in Brisbane and Wellington.

The three offices estimate between eight to 12 cyclones for the season—especially affecting Vanuatu, New Caledonia and the Solomon Islands.

Fiji’s director of meteorological services Alipate Waqaicelua told the Australian media that certain countries close to the dateline are at high risk of severe cyclones this year.

“We do expect a few of those to be severe, we’re looking at four severe cases of very high risk around Tonga, Fiji, Wallis, Futuna and New Caledonia, and high risks for Tokelau and Samoa and Niue, Solomon Islands and Vanuatu.

“And for the Cook Islands, we’re looking at low to moderate risk for severe cyclones.”

Waqaicelua said his regional Nadi office anticipates the average to below average season. “As far as we’re concerned, we’re looking at four to eight tropical cyclones within the year.”

Forecasters baffled Soon after the forecasts from regional offices were made public in January, Cyclone Ian emerged around southern Tonga and later drifted towards the Koro Sea in Fiji before disappearing.

Forecasters around the region have also been baffled with the low incidence of cyclones during the late 2013-early 2014 season, especially in the wake of increasing ocean temperatures.

“In some cases, we definitely have set new records, some places have recorded the monthly average temperatures that are the warmest ever seen and over the course of 2013,” Neville Koop, the Meteorology and Climate adviser to the

Economic losses to cost 2.9% of GDP or beyond The forecast coincides with a warning from aid donor, Asian Development Bank which cautioned last month of economic losses from climate change to cost nearly 2.9% to 12.7% of Gross Domestic Product of developing Pacific nations by 2100.

In a study examining impacts on crops, tourism, fisheries and health, it said that the Pacific islands are most vulnerable to tropical cyclones due to effects on the environment emanating from climate change.

The ADB calls for disaster risk management to be aligned with climate change risks in the poorer regions of the islands, which need money to adapt to the changing situation.

“The islands’ physical, social and economic characteristics make them vulnerable to storm surges, cyclones and rising sea levels,” the bank noted in its findings.

It says that climate change threatens efforts to reduce poverty in the region, a campaign undertaken by the regional donor in the region over the last 15 years.

“Our research has shown just looking at some of the major impacts this region might need almost $500 to over $700 million per year just to prepare for the worse-case scenario,” noted Emma Veve, an economist from the ADB. She said whilst for the islands governments it may sound like a heavy investment but on the global stage, “it is not actually that much”.

Such disasters will have an impact on coastal fisheries with fish stocks expected to decline.

“There are also increased health risks to the Pacific and this is in a system where their health systems are really struggling to cope with things as they are now,” said Veve.

Tourist fears Veve alerted that while tourism has carved a spot for being the top foreign exchange earner in the region, climate change and the resulting cyclones, floods and tsunamis could shave off up to a third of its tourism revenue in years to come.

New Zealand Ministry of Foreign Affairs and Trade divisional manager consular, Lyndal Walker said her government will keep a tab on tourists holidaying in the islands region during the crucial cyclone season.

“In the case of cyclones last year in Samoa and Fiji, we did a walk-through all the hotels and major resorts and worked closely with our Australian colleagues to see if anybody required assistance,” Walker told media.

Since Cyclone Evan which left around 2100 Australians stranded in Fiji in early 2013, Australians travelling to the region during the six-month cyclone season in the region have been urged to liaise with government authorities during times of natural disasters.

Islands Business, February 2014 37

Environment

SPREP with David Sheppard

Wetlands and agriculture— partnering for sustainability

W

intensive agriculture where pesticides, fertilisers tices are also based on plants and animals that we e commemorate World Wetlands Day and other chemicals are used. obtain from the wetlands. on February 2, each year to mark the These not only impact directly on wetlands Today, as we struggle with providing adequate birthday of the Ramsar Convention but also have implications for human health and and nutritious food to our planet’s growing on Wetlands. the quality and quantity of drinking water that population, the search for more agricultural land This is an international environment agreethey provide. (including space for aquaculture) also grows. ment that now has 168 contracting parties, with As the wetlands change, so does their ability Draining, reclaiming and otherwise convert2,170 Wetlands of International Importance to nurture plants and animals that depend on ing wetlands has become a convenient approach covering over 207 million hectares worldwide. it. This in turn, means less food for the people to accessing highly fertile land with easy access Currently, Pacific Islands Contracting Parwho depend on the ties to the Ramsar wetlands for their Convention are livelihood.

Fiji, Kiribati, MarConversion of shall Islands, Papua wetlands, for exNew Guinea, Palau and Samoa. ample, for prawn This year’s or oyster farms, theme is Wetlands has contributed to and Agriculture: Partthe loss of large ners for Growth. As areas of coastal the region’s lead wetlands in several environment and countries, with an conservation orassociated loss of ganisation, SPREP wetland ecosysbelieves that rectem services such ognition of such as coastal storm partnerships is protection, fisherimperative if our ies and mangrove small islands are to forest products realise their vision (Ramsar WWD of a sustainable Pa2014 Factsheet, cific—one where www.ramsar.org). we are able to susThis leaves poor tain our livelihoods communities even while maintaining Agriculture and wetlands in partnership...growing taro in a small swamp pit in Abaiang, Kiribati. Photo: Carlo Iacovino/SPREP more vulnerable harmony with the to potential threats natural environfrom natural disasment and our culters, climate change to water. tures. and sea level rise.

This, however, is not withWetlands have long been There is an obvious conflict between the need out consequences and poorly the basis on which civilisafor increased agricultural productivity and mainmanaged agricultural activitions were formed and cultaining the health of wetlands. ties are impacting negatively tures nurtured because of on wetlands, weakening their their ability to provide the key What then can we do? health and possibly eventually resource, or ecosystem services Examples from around the world and within leading to reduced agricultural necessary for cultivating large the Pacific, suggest that it is possible to find production and long-term loss quantities of food (consider a compromise—organic farming methods, of benefits from the wetland the Nile River in Egypt, the integrated pest management, integrated water ecosystems.

Tigris-Euphrates system in management and thoughtful planning can help Perhaps, the most obvious Mesopotamia and the Ganges ensure that agricultural practices do not adversely link between agriculture and River in India). impact on the wetland system on which they rely . wetlands is water. Dams and irCloser to home, in the PaIf Pacific islands communities are to be resilrigation systems cause changes cific islands, floodplains along ient to environmental change and able to sustain to the timing and patterns of riverbanks, rivers and streams, their livelihoods, then we must recognise and river flow, causing fluctuamarshy swamps, lakes, estuarprotect the functions and economic values of tions in the quantity of water ies and tidal flats as well as wetlands in planning for the production of food available and thus changing mangroves and coral reefs and other agricultural products. the “ecological character” of have traditionally provided Ramsar uses a broad definition of wetlands, the wetlands. communities with fertile soil, including lakes and rivers, swamps and marshes, Changes in water flow also water, plants, animals and wet grasslands and peatlands, oases, estuaries, change the level of nutrients other resources necessary to deltas and tidal flats, nearshore marine areas, available to coastal wetlands. maintain food security and mangroves and coral reefs, and human-made The quality of water in improve livelihoods. sites such as fish ponds, rice paddies, reservoirs, wetlands is also impacted by Many of our cultural pracand salt pans.

As the wetlands change, so does their ability to nurture plants and animals that depend on it.

This in turn, means less food for the people who depend on the wetlands for their livelihood.

38 Islands Business, February 2014

Environment

Island boy...watches the shoreline in eastern Tongatapu, Tonga. Photo: Sean Hobbs

Measuring sea level rise in the Pacific Crucial for decisionmakers

By Sean Hobbs* Anticipating the effects of climate change on sea level is a pressing task, particularly in the Pacific. Getting hard data on sea level into the hands of decisionmakers and scientists is one of the roles performed by the Secretariat of the Pacific Community (SPC).

Together with the Australian Bureau of Meteorology and Geoscience Australia, SPC contributes technical expertise through its Applied Geoscience and Technology Division (SOPAC) to the Australian-government funded Climate and Oceans Support Programme in the Pacific.

This programme maintains and operates the Pacific Sea Level Monitoring (PSLM) network—an array of sea level gauges across 14 Pacific Islands countries. The system, which was established in 1991, currently produces a 24/7 stream of high-quality data including sea level, barometric pressure, wind direction, wind speed, air and sea-surface temperatures and GPS monitoring.

The data produced by the PSLM network provides critical information used in early warning systems, development planning, inundation modelling and research.

The high degree of accuracy and reliability of the PSLM network is important for scientists studying sea level rise.

Arthur Webb, SPC’s Oceans and Islands Programme Manager, explained the process and says it involves trying to discern a slow, incremental

signal for sea level rise amid huge daily and seasonal fluctuations.

“If we pick a location, let’s say Fiji, you’ve got a tidal range of 1.5 metres to 2 metres. Sea level is shifting by this amount on a daily basis. Tidal change over months and years is a part of what we call natural variability and it is completely predictable,” he says.

“Over an annual cycle, we also have periods where the tides are either exaggerated or suppressed due to natural cyclic processes as the Earth completes its annual orbit of the sun. The predictable high tides are commonly referred to as a ‘king tide’, although this is not a scientific term.

These tidal variations are also easily predictable.

“There are decadal and multi-decadal cycles that influence sea level as well. These are more subtle and not so easily recognised, but they are also predictable and part of the natural regime of sea level variability all over the world.

“Now, superimpose meteorological variability on top of all this predictable variability. We have things like storms, which cause surge, and El Niño and La Niña seasonal effects, which can last for years or sometimes only months, and these can shift sea levels up or down by up to half a metre in some locations.

“When you combine all of these inputs, you get a very noisy signal over a large bandwidth, a couple of metres in the case of our example, Fiji.

“Sea level rise, on the other hand, is incremental and measured in millimetres per year and it’s not the same all over the world. The global

average is about 3mm a year at present. When you try and chart a 3mm change over this massive variability it can be a very difficult task. This is why it can be so difficult to describe accurately whether an impact is the result of climate change related sea level rise or natural variability.”

As a result, says Dr Webb, “we have an imperfect understanding of how meteorological variability may be changing, but we have quite a good understanding of historical variability. We know that variability is massive. Sea level rise is incrementally shifting the baseline upward and we can expect the peaks to become worse over time.

“In other words, the extremes in sea level will keep getting incrementally higher in most locations. However, it is also critical to understand wave effects to predict flooding and inundation hazard. Most reported sea flooding events in the Pacific region are associated with extreme wind and wave events.”

The PSLM network is the only sea level monitoring array in the Pacific. As well as providing local data the system also contributes to the calibration of global satellite sea level monitoring systems.

“It is a really far-sighted, large and extremely important system for the region,” says Webb. “Its value is recognised by Pacific Islands countries, the Intergovernmental Panel on Climate Change (IPCC), and many research groups.”

With the publication of an IPCC report in 2013 showing rates of sea level rise accelerating, Webb says it is important to “continue measuring to ensure we are aware of regional rate changes in the Pacific Islands.

“It takes about 40 years of sea level measurements to obtain an accurate rate of sea level rise in any one location.

“At this time, the gauges have mostly been in the water for about 20 years. With each passing year, the data they produce becomes more and more valuable in assisting the region to understand the facts regarding sea level rise.”

• Sean Hobbs is SPC’s Climate Change Communications and Information Oficer.

Islands Business, February 2014 39

Business Intelligence

Low copra prices prompts Karkar’s bio-fuel diesel

By Sam Vulum

At present, they are producing 4000 litres of biodiesel a day, but the plan is to build a new extracting he plummeting world copra prices has plant which would be sufficient to produce many forced copra plantation owners to look for thousand of litres of bio-diesel a day. other avenues to raise the value of their coAlready Kulili Estates is providing bio-diesel at pra. their gas station 30% cheaper than imported fossil The average price per metric tonne of copra is fuel from Madang. now just over US$700, down from US$1,500 last They have been using the fuel in their generayear, according to the latest figures from the Bloomtors, cars, ships and even the police depend on bioberg financial news service. diesel produced at Kulili Estates.

The commodity crop experienced a long and Middleton is having discussions with the nasteady rise in value in the early 2000s, but prices tional government about securing additional funds have fluctuated since the start of the global and making Karkar totally dependent on biofinancial crisis. diesel produced by Kulili.

The last major price slump occurred in Obviously, the potential is enormous and 2009, when the cost of a tonne of copra the PNG National Planning Minister has explummeted to US$400. pressed interest in expanding what has been Copra production in the South Pacific achieved on Karkar to the rest of PNG. has now dropped, with the exception of It is relatively low-tech process and the Papua New Guinea, Solomon Islands and quantity can be increased substantially.

Vanuatu.

The first known usage of this kind of fuel In Papua New Guinea’s Madang Provwas in Bougainville during the crisis. Howince, a company operating on a small planever, the oil wasn’t refined to remove access tation on Karkar Island has trialled the water well, causing rusting in the engines. concept of producing bio-diesel fuel from In the South Pacific, although coconut coconut oil and has succeeded in making oil has yet to be adopted on a large scale for its own fuel. electricity generation, several demonstration The company, PNG Biofuels, has invest- Working to provide the perfect mix...on Karkar island. Photo: Sam Vulum projects have been carried out in the region. ed in a pilot programme to use the humble The first was at Ouvéa in the French tercoconut to produce environmentally-friendritory of New Caledonia, where generators ly bio-diesel fuel. running on crude coconut oil were installed Company director Brett Middleton said: “Copra from the humble coconut. in 1999 to provide power totalling 315 kW to an oil prices last year dropped severely and there was reThis product is powering lights, trucks and genmill and two desalination plants. ally no income to be earned from it. In the last two erators around the plantations estate on Karkar.

More recently, urban utility companies in Vanuyears, we were looking for avenues to raise the value The bio-diesel fuel is being used on all machinatu and Samoa have successfully trialled the use of of our copra.” ery that has diesel engines. The fuel is safer and small quantities of coconut oil blended with diesel Middleton belongs to an agricultural family concleaner. Machines using the fuel do not emit dirty in their existing generators. nected to the island for almost 100 years. They run fumes, Bolton said.

Rural electrification schemes have also been carKulili Estates (coconut and cocoa plantations) on ried out using coconut oil as a fuel source. An early the island.

Alternative fuel demonstration project was on the Fijian islands of His grandfather Max Middleton took over the If the project becomes successful and help is givVanubalavu and Taveuni, where dual-fuel generaplantations from the Germans in the mid-1920s. en where needed, the technology can be used to cretors capable of using coconut oil together with dieHe spent most of his adult life there apart from the ate an alternative to fossil fuel and make use of the sel were installed by the government (with French war years. support) in 2001. . coconuts lying idle since the copra prices dropped.

T

The plantations on the island are supplying coconuts to develop the environmentally friendly fuel alternative.

“It is not bio-fuel or coconut oil mixed with fuel.

It is true diesel. You will be able to run your car 100% on this fuel alone. You can mix it with diesel if you wish. But the quality of our diesel beats engine fuel currently on the market. There are no exhaust fumes,” Middleton said.

PNG Biofuel General Manager, Kevin Bolton and a small group of locally employed staff are producing the country’s first workable bio-diesel fuel

Yazaki Samoa cuts wo

By Merita Huch

T

Workers busy…at Yazaki Samoa’s production line. Photo: Merita Huch

40 Islands Business, February 2014

he weekly 40 working hours for some 800 Yazaki Samoa factory workers will be reduced starting February to 32 hours.

It’s a decision the management of the wire harnessing group says has been taken instead of taking the redundancy option.

Yazaki Samoa Managing Director, Funefe’ai Oliva Vaai made this announcement following several discussions with Yazaki’s biggest client, Toyota in Australia.

“We need to do something so that we don’t lose out,” he says.

There is a drop in the sales of vehicles in Australia, especially the Toyota line. It’s affecting the

PM confident Samoa will do well after LDC

By Merita Huch

N

ew Year’s Day 2014 will be remembered as the day that Samoa left the group of countries considered the least developed in the world.

For many years, Samoa had managed to stay as an LDC for many years. The fragility of the country’s economy as a result of climate change has kept Samoa in the circle of the poorest countries continuously.

The problem with Samoa as it continues to argue, is when a natural disaster hits, Samoa’s economy is taken many years back.

After the 2009 tsunami and Cyclone Evans two years ago, Samoa finally managed to move away.

Many in the country are uneasy despite reassurance by the government leader, Prime Minister Tuila’epa Lupesoli’ai Sa’ilele Malielegaoi that Samoa will be fine.

“It’s about time that we get out of this status,” says Tuila’epa.

He went on to say that for years Samoa’s economy has been steady and given the many challenges it’s faced over the years of the global financial crisis on top of the disasters, the country continues to experience steady growth.

Samoa’s economy has always been considered one of the best examples of growth in the region but others are not convinced.

Leader of Opposition Palusalue Fa’apo II says the situation on the ground is not reflecting the international view that Samoa is able to manage and run its own economy with little help once it becomes a developing nation.

“Yes, nobody’s hungry, there’s food, although the food could improve, but people need money to pay water, electricity and other expenses and the high cost of living isn’t helping,” he adds.

“It’s taken 50 years for Samoa to graduate from primary school, it’s just finished Year 8 and this year it begins secondary school at year 9. We’re going to stay at this level for the next 50-100 years,” says Shadow Finance Minister, Afualo Dr Wood Salele.

Samoa’s PM Tuilaepa Sailele Malielegaoi (right)...“it is about time we get out of LDC status.” Photo: SPREP

The concern of some leaders is that by becoming a “developing country” Samoa will have less overseas assistance that’s relied on heavily for many years.

Remittances also play a huge part in the country’s revenue and in future the party feels that the generations of Samoans now living overseas will not see the value of their contribution to families in the islands and that revenue will drop dramatically.

Burden on people “The burden will continue to be on our people,” says the Opposition Leader.

One of the many criteria to making it out of the LDC group is for an average family to be able to earn between $8,000 (tala) to $10,000 a year.

There’s a three percent increase on salaries for all public servants but this says the opposition would only benefit the already well off when the rest of the country wouldn’t find much difference in this so-called pay rise.

“It just means that more of our people will be

paying taxes. Every time you get something from government, remember it’s taxed and this increase is a joke,” says Afualo.

For many across the country they’re happy with the recent graduation from LDCs but are not expecting much change.

One of the first challenges for Samoa now having become a “developing nation” is playing host to one of the biggest international conferences for the United Nations.

This year, the third Small Islands Developing States meeting kicks off in Apia in September.

Close to 3000 people will be in Samoa for two weeks and it’s a chance says Samoa’s Prime Minister to showcase what Samoa has to offer in terms of hosting visitors.

Work has already started with a select committee now looking after the preparation work. New Zealand, Australia, Japan and China have already promised assistance to Samoa and the Prime Minister has told Samoans to support the country in hosting this meeting.

revenue either compared to the previous years, so the extra money that used to cover the workers in the past isn’t available, says Funefe’ai so the days off have to be taken. Otherwise, the company would experience negative impacts in the long-term,” he says.

The change says Funefe’ai would only be temporary and he feels that by the end of April, things would be “back to normal”.

So starting February, Yazaki EDS Ltd at Vaitele will close for four days and following that, everyone from management to staff will be working for 32 hours a week.

It’s worrying times for many working at Vaitele.

The once biggest employer in Samoa has been dwindled well below half of its original size.

The pullout from Mitsubishi, Ford and Holden has resulted workers made redundant.

The global financial crisis and cheaper labour from the Asian region has resulted in job losses of over 1000 throughout the past five years.

To-date Yazaki produces wires for the Toyota car manufacturer in Australia and spare parts for Holden vehicles.

It is one of Toyota’s biggest supplier and the company is confident its service will be required for many more years in future. But there is no certainty in this as cheaper labour forced the closure of the Holden line in Samoa.

In the meantime. workers at the Vaitele factory have all agreed to the changes the company’s has made so far.

uts working hours money that’s also being brought into the company in Samoa.

“The Toyota manufacturers have their holidays at this time of the year and it’s a 10 days off. We’re expected to take that time off as well.

Staying above water “But in the past, we managed to align that throughout the year too but when their sales are high, the money we get is also high so we’ve never seen the Samoan workers having to take those days off because they needed to work and the money was enough from Toyota to pay them,” says Funefe’ai.”

“This year, however, although Toyota has earned the biggest sales in Australia, it has dropped says Funefe’ai and Yazaki Samoa hasn’t done well in its

Islands Business, February 2014 41

TRADE MARK CAUTIONARY NOTICE in MICRONESIA, MARSHALL ISLANDS, and PALAU Notice is hereby given that Asahi Group Holdings, Kabushiki Kaisha (Asahi Group Holdings, Ltd), a joint-stock company duly organised under the laws of Japan, Manufacturers and Merchants of 23-1, Azumabashi 1-chome, Sumida-ku, Tokyo, Japan, is the sole proprietor in Palau, the Federated State of Micronesia, the Marshall Islands and elsewhere of the following two (2) trade marks:

ANGELRINGS - and –

ANGELRING Used in respect of:Beers – Class 32 Bar, café, cafeteria and canteen services; catering services for food and beverages; restaurant services including self-services; snack bar services; preparation and providing foods and beverages; carryout food and beverages services – Class 43 The said proprietor claims all rights in respect of the above trade marks and will take all necessary legal steps against any person or company infringing their said rights.

DAVIES COLLISON CAVE Patent and Trade Mark Attorneys 255 Elizabeth Street Sydney, New South Wales, 2000 AUSTRALIA

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