December 2014

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December

2014

Vol. 40, No. 12 V

Contents 31 FijiÕ s tourist numbers soar

Strong growth in China, India markets

Climate

32 High hopes for P Pacific Island but hard work still required ThereÕ s light at the end of the climate change tunnel

Energy

33 Underground project heats up in Vanuatu Renewable, clean energy for islands

Viewpoint

34 Recast Regionalism: lofty ideals sink to the bottom of the ocean THE Pacific is at Fijian Prime Minister Frank Bainimarama’s feet, but will it remain that way? Chosen as Islands BusinessÕ Person of the Year for returning Fiji to a form of democracy and consolidating FijiÕ s place as a regional leaderÑp ages 12-16. Cover Photo by: Pita Ligaiula @ Pacnews/PINA

Environment

35 Project turns waste into potential revenue knowledge from exploitation

Regular Features

Cover Report 12 BainimaramaÕ s Year

Ruler, Prime Minister, Diplomat Ruler

14 New kid on the block leads the way 15 Bainimarama diplomacy 16 Model charity saves lives

6 8 10 36

We Say Whispers Pacific Update P Business Intelligence

Vanuatu medics lead the region

18 Poet slams crisis into UN

Opinion

20 All dressed up and somewhere to go Ð at last!

Politics

22 ModiÕ s bold move

India strengthens ties to Pacific

23 China hands out goodies to P Pacific allies 24 Hollande says France will remain a Pacific power French President pledges climate action

26 OÕ Neil faces fresh corruption allegations Uproar over purchase of shares

Business

27 PNG aims for balance budget

High growth projected to continue

28 Troubled Momi project springs back to life Fletcher to built Marriott resort

Aviation/Tourism

29 Turbulent time for regional aviation Parties hope for resolution soon P

30 Marshalls goes for top dollar

Tourism, airports key to island plan T Islands Business, December 2014

Managing Director/Publisher Godfrey Scoullar Group Editor-in-Chief Samisoni Pareti Group Advertising & Marketing Manager Sharron Stretton

Graphic Design Dick Lee Virendra Prasad Main Correspondents Australia Rowan Callick Nic Maclellan Davendra Sharma 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

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WESAY Bainimarama’s leadership deserves kudos for the courage of its convictions. ... He stood up for his beliefs steadfastly in the face of unceasing international opprobrium and severe opposition from a highly polarised citizenry in Fiji.

F

rom political pariah to the most sought after regional leader, Fiji Prime Minister Voreqe Bainimarama’s transformation has few parallels in modern political history.

More often than not, when a military leader ousts a democratically elected government and takes on the reins of power, no matter what the justification, things quickly turn ugly. It doesn’t take long for the concerned country to get sucked into a downward spiral that brings in years if not decades of political instability and economic grief.

Few observers and commentators had ever ventured to predict such a transformation as Prime Minister Bainimarama’s in the months and years after the December 2006 action, when the Laisenia Qarase led government was deposed with the imposition of military rule. Fiji’s winding road toward progress since its independence has been littered with potholes. Every so often there have also been speed bumps.

The region got quite used to viewing Fiji as a one step forward, two steps back nation.

So it was unsurprising to see so many commentators spout grim forebodings about the region’s most promising economy. Regional big brothers Australia and New Zealand slapped sanctions along with big international and regional bodies like the Commonwealth of Nations and the Pacific Islands Forum Secretariat, besides others. Rather than engage with the new regime by understanding its motivations for the action, the bigger powers chose to follow an isolationist tack instead.

Travel and economic sanctions followed the political suspensions from world bodies.

Fiji’s leadership, her administration and by extension, her people themselves, were well and truly turned into the region’s pariahs. The economic sanctions hurt the people of Fiji in the early years. The sanctions not only affected the long and cordial people to people relationships between New Zealand, Australia and Fiji but also shut Fijians out of regional livelihood initiatives like New Zealand’s Recognised Seasonal Employer Scheme. Relationships, if any, with the powers that be were probed causing delays in travel. Fijians found it hard to obtain visas even for health related travel.

The sanctions were all aimed at ramping up the pressure on the regime to commit to a path and a timetable for the restoration of democracy in Fiji. The sheer pressure only succeeded in the regime committing to schedules and dates that it could not adhere to because of the constitutional and electoral reforms it wanted to initiate, which would never be easy with all the widespread sanctions in place. Aspersions were cast on the leadership when it was unable to adhere to schedules, despite cogently argued reasons explaining the delays.

The stringent sanctions only ended up The only sore spot irreversibly altering the region’s geopolitics. all along was ...

Forced to look northward for all manner of help in the wake of the sanctions from tramedia relations ditional development partners and western countries with longstanding relationships, Fiji developed new and strong links with the People’s Republic of China and countries like Korea, Indonesia and even India. In the period that the west turned 6 Islands Business, December 2014

Fiji into a political pariah, China rapidly established and scaled up its influence in the region, using its deepening links with Fiji as the pivot.

Undermining the strong relationships that had been fostered for over a century with such isolationist policies and unwillingness to engage during Fiji’s troubled times is a strategy that the west will rue for a long time to come. It is undoubtedly a combination of the rapidly rising influence of the Asian giants in the region and the realisation that the Fijian military leadership needed time to set up realistic milestones for restoring democracy with a new more equitable constitution and a reformed electoral environment that got the West to slowly soften its stance.

Once it saw Fiji’s intent, though being far from fully convinced by it, the west began to engage. But most of this engagement was behind the scenes, away from the public gaze. Over the past two years, this U-turn from the West ultimately snowballed into a hugely positive outcome for Fiji – one that made the September 2014 election a certainty.

Bainimarama’s leadership deserves kudos for the courage of its convictions. He did not buckle under the intense pressure that the West exerted on Fiji. He stood up for his beliefs steadfastly in the face of unceasing international opprobrium and severe opposition from a highly polarised citizenry in Fiji. Though he had to revise his schedules and milestones for Fiji’s march toward democracy, he kept his word. Of course, many of the decisions taken in the interim were by decree in the absence of any democratic processes, but ultimately many of them actually helped the country achieve its ultimate aim of a return to democracy. His commitment to hold elections and bring democracy back to Fiji must be lauded.

What is more, despite the economic sanctions slapped on it by the West, Fiji’s economy kept ticking along registering phases of growth the country had not seen for long. Improvements in infrastructure – roads, ports and power supply – were demonstrable. Businesses were happy. The only sore spot all along was the regime’s troubled media relations. News of media curbs damaged the regime’s credibility greatly and undermined its genuine intention to get on with the job of putting Fiji back on the road to democracy.

In less than a couple of months after the elections, Fiji has regained its pride of place in the region and in the pantheon of nations. Two of the biggest leaders of the world graced its shores last month within the space of three days making Fiji literally and figuratively the focal point of the South Pacific region.

Bitter and outspoken critics of Bainimarama like the Prime Minister of Samoa Tuilaepa Sailele Malielegaoi had no option but to eat humble pie and make a beeline to Fiji for a meeting with the Indian and Chinese leaders.

It wasn’t too difficult a task for Islands Business to make a decision on the Person of the Year this once. The choice of Prime Minister Bainimarama was quite obvious, as it would very likely be with many Pacific islanders. His leadership in bringing back a democratically governed Fiji to lead the region responsibly as both its geopolitical pivot and its economic engine, logistic hub and constant friend must well and truly be celebrated.

WESAY Amnesty International has said in a report that the Pacific is one of the world’s worst regions to be a woman. Seventy per cent of women and girls in the region face sexual violence, it says.

P

acific Island leaders are often given to wax eloquent Concentrated power in the male gender has resulted in discriminaon the respect that Pacific culture accords to women. tion against women and large-scale deprivation of rights both legal Polynesian women have often gone on record saying and human, in many parts of the world, leading to issues ranging that their culture “puts women on a pedestal”. But stafrom rampant sexual violence to poor health, illiteracy and poverty. tistical studies across almost all indices that have to do These social mores coupled with the lack of education, political with women’s – and therefore children’s – welfare belie this rather disenfranchisement and economic dependence on the masculine emphatically. gender are only some of the reasons women face acute discrimination Whatever affects women affects children, the entire household, the in many societies. village, community and country putting at risk a number of aspects of This cocktail of circumstances leads to high incidences of teen human wellbeing. Unfortunately, few in the overly male-dominated pregnancies and pregnancy related deaths as well as a wide range political leadership acknowledge this, particularly in the Pacific region. of women’s reproductive health issues, not to mention the high Improving the lot of women must be every nation’s priority. Though infant and child mortality rates as outlined in the recent UNICEF there have been encouraging signs of report. In the absence of government greater gender awareness overall, the programmes to effectively deal with Pacific has a long way to go. Reports the fall out of these problems, they go from a whole range of international either unattended to the detriment of agencies make for disturbing reading. individuals and families concerned or Amnesty International has said in end up becoming the responsibility of a report that the Pacific is one of the the community. world’s worst regions to be a woman.

Despite this grim reality, gender Seventy per cent of women and girls issues do not receive as much attenin the region face sexual violence, it tion in the Pacific media as they do in says. Global NGO Médecins Sans other parts of the world. One of the Frontières (Doctors without Borders) reasons for this is that women have said in 2013 that 70 per cent of women poor representation in the region’s in Papua New Guinea would either power structures. In Pacific Islands be raped or physically assaulted in Forum countries, excluding Australia Kiribati stakeholders at the workshop in Tarawa last week. Photo Supplied their lifetime. and New Zealand, there were only According to World Bank research, 23 women MPs out of 486 MPs in the Solomon Islands, 64 per cent of altogether who were sitting in their women have experienced physical and/or sexual partner violence. In national legislatures, as of late 2013.

Australia, indigenous women are five times more likely than nonHowever, this past year has brought great hope to the burning issue indigenous women to be subject to domestic violence, 38 times more of gender parity in the Pacific. It is heartening to note that there has likely to be hospitalised for assault, and 10 times more likely to die been a spurt in women candidates contesting elections throughout from assault, the report says. Sexual violence in women is recognised the region. Elections in Fiji, Tonga and the Solomon Islands in 2014, as the biggest gender related issue in the Pacific. however, have seen a surge in the number of women candidates.

Last month, a United Nations Children’s Fund (UNICEF) reSeven women were elected to parliament in the September 2014 port said that 60 per cent children in the Pacific Islands region died elections in Fiji. before their fifth birthday mainly due to preventable causes such as The growing ubiquity of social media, greater access to telecompneumonia, diarrhoea and newborn deaths. Newborn deaths make munication devices and slowly rising rates of education are definitely up on average 40 per cent of deaths recorded for children below five raising awareness around the world including in the Pacific Islands. years of age. Women’s welfare directly affects children and therefore In the Pacific, there has always been a strong NGO movement dedithe very future of any country. cated to gender issues and many leaders of the NGO movement have tried hard to make a difference for several decades now. The work Since times immemorial, the masculine done by these organisations must be recognised and encouraged by Women’s welfare gender has dominated human affairs. Men all segments of society. directly affects have all along dominated over women in every Countries of the region have signed enough international treaties aspect of life. Whether it is political, economic that guarantee equal rights for women but sadly, they have been only children or military power, men have always had the in letter – not in spirit. That must change for the good of both the lion’s share. Many cultures have perpetrated, even institutionalised, present and future generations. the exclusion of women from having any say in important social, political and economic matters.

• We Say is compiled and edited with the oversight of Samisoni Pareti.

Islands Business, December 2014 7

Whispers The Australian Senate has been urged to block migration law changes that could see more than 100 infants born of refugee parents deported to Nauru.

The proposed legislation will render irrelevant a Federal Court appeal underway by baby Ferouz - born in Brisbane to asylumseeker parents last year.

Ferouz can’t apply for a protection visa because he’s deemed an unauthorised maritime arrival - a government stance that was upheld by the Federal Circuit Court last month. 

Niteclub Tango Fiji journalists bore the brunt of security measures during the recent visit by China’s President Xi Jinping. But they found it amusing to learn that both Chinese and Fiji officials were baffled by an apparent security breach. Apparently a gentleman with numerous businesses in Fiji, including a nightclub, was able to obtain VIP access to all official engagements to the extent of even being part of the official motorcade.



network is rustling coconut fronds across the country with murmurs that six refugees (including one Afghan) are applying for asylum in the island nation.

A senior UN refugee official is said to have flown in “under the radar” recently, seeking dialogue with local authorities on the issue.

Hush hush maybe - so as to not upset the coconut cart before next year’s proposed conference on the plight of refugees in the Pacific region?

At least PNG and Nauru were paid handsomely.

Fiji’s world-famous Coconut Wireless



Did Ozzie and Kiwi: cops deployed for the Solomon Islands elections circumvent the country’s nation-wide liquor ban from 18-25th November? Or maybe the 11 pallets of wine and the additional liquor accompanying them were meant to be defensive Molatov cocktails?? Or is deployment simply another word for “working holiday” – something hopeful Fijians are banking on being different from and additional to “seasonal work”??

8 Islands Business, December 2014

Did Australia do a “dunny” on the Forum Secretariat by not inviting it to be an observer to the G20 meeting in Brisbane?

Maybe the Abbott government was worried that PIF officials might use the morning tea break to raise awkward questions about climate change with the chairs of the African Union and ASEAN? If a ploy, it came back to bite him with Barrack Obama and Francois Hollande highlighting Australia’s refusal to contribute to the Green Climate Fund. Now Australia appears to be doing a “double dunny” on PIFS by agreeing with Fiji to hold a review of regional organisations in Sydney next February – without first consulting the Forum Chair and despite Sir Makare Morauta’s review.  Talking about PIFS … there’s anxiety at PIFS HQ about it being possibly absorbed

Whispers

Advertising & Marketing Manager Sharron Stretton Advertising Executive Abigail Covert-Sokia Islands Business International Ltd. Level III, 46 Gordon Street PO Box 12718, Suva, Fiji Islands.

Tel: +679 330 3108. Fax: +679 330 1423.

E-mail: Advertising: advert@ibi.com.fj Circulation & Distribution Litiana Tokona ltokona@ibi.com.fj subs@ibi.com.fj Sandiya Dass sdass@ibi.com.fj Regional magazine sales agents

Selfies craze Selfies appear to be the latest craze in the Pacific. One island nation’s Auditor General was left scratching his head when discovering a public official had bought himself an Apple I-Pad supplemented by an Apple I-Phone – courtesy of his government credit card. Maybe he mistakenly forgot to use his own personal bank-rolled I-Card? Or, maybe Narendra Modi and Voreqe Bainimarama’s mutual fetish for selfies (above) is an act to follow?? into SPC. Some fear a compromise looms ahead aimed at appeasing Fiji which gave birth to the PIDF. PIFS corridors are abuzz with the fear that if “swallowed” up by SPC, then OZ and NZ will still have a say in regional affairs without being invited to be “surrogates” for PIDF.  Fiji media recently reported land legislation aimed at preventing foreigners from buying and profiting from the country’s limited residential freehold land - the exception being foreign ownership of freehold land for hotel development.

The objective, in theory, is to get foreigners to lease (not own) native land for residential purposes as an income earner for the indigenous population.

The same media had the Attorney General clarifying the next day that freehold residential lots which are part of a hotel development can still be purchased by foreigners - because the attraction there is land

ownership. Confused?  Former Fiji Airways CEO, Dave Pflieger, appears to have ruffled the feathers of Island Air pilots in Honolulu who were happy to each receive $4000 Christmas bonuses in celebration of the anticipated arrival of new aircraft. Apparently their contracts guarantee the payments 30 days before the airline takes delivery of new aircraft. As the new Head Honcho, Pflieger put a spanner in the works however when he decided he needed an “outside” team to review Island Air’s future fleet. Now, the Honolulu StarAdvertiser says the company plans to take payroll action to recover the erroneous payments which – to set the books straight will be dished out again when the review is completed in January!

• Whispers is compiled by the Editor.

Contributions are welcomed, send them to editor@ibi.com.fj

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Islands Business, December 2014

Pacific Update

Four-way race for Solomons Island PM job Despite 12 political parties being registered as required by the Political Parties Integrity Commission, a few other parties refused to be registered and challenged the validity of the PPIA in court.

The legislation was contested by former Deputy Opposition Leader Matthew Wale who said it infringed upon his freedom of association under the constitution.

But the court disagreed, and upheld the Solomon Islands Electoral Commission’s

Party for Rural Advancement (SIPRA), Kadere Party of Solomon Islands (KPSI) and Solomon Islands People First Party (SIPFP). our former Prime Ministers re-electAbana as DAP President could become ed in last month’s national election PM if the majority of Independent members could lead Solomon Islands again in joined him to form the next government. the next four years after the surprise loss of Other capable DAP members who are potenincumbent Gordon Darcy Lilo. tial PMs are former Finance Minister Rick The four included Synder Rini, whose Hou and former diplomat and senior public term as Prime Minister lasted for less than servant Jeremiah Manele. a month in 2006. He retained his Marovo As for the former prime ministers, Sikua, Constituency seat despite stiff competiSogavare and Rini tion from former contested as indeDirector General pendent members. of the Secretariat Philip is the Presiof the Pacific Comdent of the UDP, munity (SPC) Dr so he could be a PM Jimmy Rodgers. candidate.

The three other Sikua who is a potential PMs are member of an unOpposition Leader registered Liberal Dr Derek Sikua, Party could team Manasseh Sogavare up with his former and Danny Philip. deputy Wale and They have all PM candidates from left: Dr Derek Sikua, Danny Philip, Manasseh Sogavare and Synder Rini. Photo File photos other Independent served as PM in members to form the Solomon Isright to ban parties that have not registered the next government. lands, but with the Political Parties Integrity from participating in the election. The ruling Popular among ordinary Solomon IsAct (PPIA) making no specific mention also means that, once elected, independent landers alike is Sogavare who has served as for large independent candidates in the candidates must choose a political party if Prime Minister for two terms. He became 50 member house, any member could be they wish to have any part in governing the unpopular with the Australian Government elected PM. country. following his choice of Julian Moti as AttorA total of 245 of 447 candidates contested The Democratic Alliance Party (DAP) led ney General who was at that time wanted by as independents, and 32 of these got elected.

by Steven Abana had the highest members Australian Federal Police for alleged sexual The introduction of PPIA by the outgowith eight being elected into the house, folcharges. ing National Coalition for Reform and lowed by United Democratic Party (UDP) Moti was eventually cleared of these Advancement (NCRA) Government of with four, People Alliance Party (PAP) with charges and Sogavare fell in a no-confidence Lilo aimed to stop ‘grass hopping’ of MPs three and one each for Solomon Islands motion, paving the way for Sikua to become to form a ruling government.

By Priestly Habru

F

French general reviews defence

By Samisoni Pareti

M

aritime border dispute between Vanuatu and New Caledonia is not for the French Navy or its Armed Forces to sort out, says Brigadier General Luc de Revel (pictured).

He is the senior commander of the French Armed Forces based in New Caledonia, which also looks after the French territory of Wallis and Futuna,east of New Caledonia, or northeast of Fiji.

General de Revel told Islands Business 10 Islands Business, December 2014

the maritime dispute is beyond his mandate, something that needs to be sorted out at the political level.

He was in Fiji in October to meet the country’s Prime Minister Frank Bainimarama and his counterpart in the Fiji Military Forces, Brigadier General Mosese Tikoitoga.

Disaster management and air surveillance of Fiji’s 200 mile exclusive economic zone were in the agenda of his discussions with Fijian officials, said the visiting General.

“Now that we’ve established Fiji’s views on resuming defence cooperation, on di-

Islander runs for top tuna job measure to the WCPFC aimed at reducing tuna catches, with major focus given to reducing use of fish aggregation devices former deputy secretary general of the (FADs). Whether this gains traction at the SaPacific Islands Forum is the only Pacific moa meeting is an open question. But every islander to be shortlisted for the top job at year of delay in enforcing cutbacks endangers the Western and Central Pacific Fisheries the health of the Pacific’s tuna fishery.

Commission (WCPFC).

As expected, Teo was given a vote of Feleti Teo, who recently concluded a endorsement by the eight-member PNA two-term stint as DSG at the Suva-based at a ministerial meeting in Tuvalu in midForum Secretariat, is up against significant November. Although the PNA and FFA competition from four shortlisted candidates, members control a majority of votes in the all of whom have heavyweight fisheries exCommission, which has over 30 members, perience on their resumes. Teo is no stranger WCPFC members have practo the fisheries world, having ticed consensus decision makheaded the Forum Fisheries ing. So the choice will come Agency for two terms. But down to lobbying before and his strength will be in his around the margins of the long-term experience at the annual event that is expected head of regional agencies and to bring about 500 fisheries being the lone Pacific island officials to Samoa. representative on the shortlist.

In addition to the execuThe Tuna Commission tive director, the key post of executive director is a key post chairman of the WCPFC is for island and distant water also open for appointment at fishing nations alike. The theSamoa meeting. PNA is Commission was established backing Rhea Moss, a Marby a treaty that went into efshall Islander based in Pohnfect in 2004 with the mandate Pacific’s main contender for WCPFC’s of regulating and monitoring top job, Feleti Teo of Tuvalu. Photo pei.

The shortlisted candidates fishing on the high seas in the filephoto are: central and western Pacific • Feleti Teo, formerly Tuvalu Attorney Ocean.

General, Director General of FFA for six In the ensuing 10 years, bigeye tuna is now years, Deputy Secretary General of Pacific on the “overfished” list and yellowfin tuna is Islands Forum, and currently Interim Secrebeing fished at its upper limits of sustainabiltary General of the Fiji-based Pacific Islands ity, while the number of vessels filling their Development Forum. holds with tuna and the sophistication of • Dr. Sungkwon Soh, a long-term Project fishing technology continue increasing every Manager at the Pohnpei-based WCPFC year. Sustainability of bigeye and yellowfin secretariat, who has been involved in a wide stocks are looming as the major battleground range of scientific and other work of the for the WCPFC, which holds its annual Commission. meeting from 1-5 December in Apia, Samoa.

• Dr. Peter Flewwelling, a Canadian with The WCPFC is under pressure at its Dean extensive resume in fisheries management cember meeting in Samoa to agree to deep and monitoring, control and surveillance cuts in fishing effort for bigeye and yellowfin work in the Philippines and Mozambique, to bring catch volumes down to sustainable as well as with the Food and Agriculture levels. But the WCPFC has danced around Organisation. the issue for several years, approving mea• Sachiko Tsuji, Japanese government sures that have fallen far short of what is fisheries official who has significant experineeded to sustain Pacific tuna stocks. ence working with the Fisheries/Aquaculture “If we want a train wreck instead of a Economics and Policy Division of the Food sustainable fishery, we should keep going and Agriculture Organisation in Rome. the way we are now,” Glenn Hurry, the re• Dr. David Wilson, the Deputy Secretary/ cently departed WCPFC executive director, Science Manager for the Indian Ocean Tuna said in July.

Commission. Prior to joining the Indian The Parties to the Nauru Agreement Ocean Tuna Commission in 2011, he worked (PNA) have joined forces with Japan and in the Australian government’s fisheries.

Tokelau to submit a detailed conservation

By Giff Johnson

PM in December 2007. There were also calls by Solomon Islanders on social media to elect a PM from provinces that are yet to have one of their own as PM. Since Solomon Islands gained independence in 1978, Western Province has had four of its own as PMs, Malaita and Guadalcanal two each and one each from Makira, Choiseul and Central provinces.

Renbel, Temotu, Isabel and Honiara City representatives have not had their MPs elected as Prime Ministers. There were strong calls for three well qualified MPs of Isabel Province to become PM including former University of the South Pacific (USP) academic Dr Culwick Togamana. Manele from one of the Isabel constituencies could also be in the fold as potential PM candidate due to his association with DAP. Former Deputy Prime Minister in the last government of Lilo and independent candidate Manasseh Maelanga has also indicated his intention to become PM and was lobbying for independent members to join him.

It would not be surprising if Maelanga or any other independent candidate becomes Solomon Islands next PM as the PPIA does not specifically address the case of independent candidates.

“The Political Parties Integrity Act (PPIA) is intended at regulating political parties.

“It does not address the problem of grasshopper politicians which causes political instability,” Deli Oso, former press officer of the Parliamentary Opposition said.

saster management and maritime surveillance, we’re going to return to Noumea to formulate the possible way forward in continuing the good relationships between our two countries.

“This visit was not to come and make any offers but just to hold discussions with my Fijian counterparts,” added General de Revel.

He was accompanied in his Fiji tour by the French Embassy’s Noumea-based Defence Attache Commander Hubert Jannot and Dr Helene Goiran-Ponsard.

A

Islands Business, December 2014 11

Cover Report

Bainimar IB’s Pacif ic Pers

•Ruler •Prime Minister •D

S

By Netani Rika

ome 2000 years ago the world lay at the feet of the Roman dictator Augustus.

That is of course, the world as it was known to Rome at the time. With the battle of Actium ended, his cruelties became more judicious and he

12 Islands Business, December 2014

turned down honours with modesty while dedicating himself to religion, public works and restoration of family values.

He searched for equilibrium in life and focused on efficiency.

In much the same way, Islands Business’ Pacific Person of the Year, Frank Bainimarama, stands with the world at his feet.

Last month he became the acknowledged

regional leader “in vogue” with presidents and prime ministers travelling to Fiji to meet the Indian and Chinese heads of governments in Suva and Nadi.

After eight years of military-backed rule, Bainimarama went to the polls and his Fiji First Party secured slightly less than 60 per cent of the vote. Most people who voted Fiji First voted for the former military strongman

Cover Report

ama – on of the Year

iplomat

personally.

Plaudits immediately rained down on Fiji’s leader from friends and there was grudging acknowledgement from his foes.

Fiji’s return to democracy has not been easy and the eight years since December 2006 have been fraught with violence, death, allegations of torture, political ill-will, marginalisation and abuse.

Much, if not all, the pain and suffering was caused by the security forces, some argue with impunity. Indeed, when escapees were assaulted by plain clothes officers and one prisoner lost his leg, Bainimarama told the media he stood by the actions of his men.

In April 2009 Bainimarama silenced his critics by introducing censorship followed by media regulations with punitive fines and

prison sentences.

He unashamedly attached rural development to support for his administration, vowing not to help provinces who failed to back him and the regime imposed by President, Ratu Josefa Iloilo on Good Friday, 2009.

From then on Bainimarama had a free rein to change laws, disregard Public Service procedures, create a constitution and hold Islands Business, December 2014 13

Cover Report elections in conditions which his critics said weighed in his favour.

Around the Pacific Bainimarama is seen as a hero for standing up to Australia and New Zealand. Without openly acknowledging it, both countries realise his growing influence and have re-visited their political relationship which remained strained over the last eight years.

In Kiribati he is credited with providing the only real help to a chain of atolls threatened by rising sea levels – allowing the sale of land in Fiji for food cultivation for the beleaguered island nation. His most vocal critic, Samoa’s Tuilaepa Sailele Malielegaoi, recently visited Fiji to meet Indian Prime Minister Narendra Modi and Chinese President Yi Jinping.

Asked about his apparent change of heart towards Bainimarama, Tuilaepa responded: “Now that you have a democratic government, it’s all over.”

It is for the fact that he has been the one Pacific leader of influence in 2014 that Bainimarama has been chosen as IB’s Person of the Year. With elections completed and Fiji’s return to democracy, Bainimarama has taken the opportunity to build a new profile for the country.

Part of his strategy has been to replace the influence of regional institutions such as the Pacific Islands Forum Secretariat and the influence of Australia and New Zealand.

The University of the South Pacific’s Associate Professor for Political Affairs,Dr Sandra Tarte, says this approach converges with India’s interests in taking a more prominent role in international affairs.

“The Pacific has historically been a Western-dominated region. That’s a legacy of our colonial past,” she said.

“And up until recently Western powers dominated the region and had influence in the region and the Pacific regional organisations were important for that purpose because they allowed Western powers to continue to influence the region securitywise, economic-wise and in terms of our diplomatic relations as well.”

What Bainimarama has effectively done is to lay a platform to harness the Pacific’s 12 voting members at the United Nations in a regional bloc which can partner strategically with world powers.

India and China have taken advantage of the deteriorating relations between Fiji and traditional partners Australia and New Zealand.

Tarte describes the 12 UN votes as “an attraction to China and India” and states that all parties recognise the mutual benefits of cooperation at a global level.

More than 10 years ago Fiji launched its Look North Policy (see box) and ironically, much of Bainimarama’s success in this area 14 Islands Business, December 2014

Man of the people ... India’s Prime Minister Narendra Modi takes time on his Fiji visit to allow selfies with students . Photo I

is due in part to Laisenia Qarase whom he removed in 2006. It is also due to the work of the late Fijian statesman Ratu Sir Kamisese Mara who was asked to step aside by Bainimarama and former police Commissioner Isikia Savua in Suva Harbour in 2000.

“President Xi’s visit is a culmination of a relationship that has been developing over time and it reflects the changing region and the changing global world order as well,” Tarte said.

As IB’s Pacific Person of the Year 2014, the eyes of the Pacific will focus on Bainimarama who must now live up to the role he has created for himself and Fiji.

So far he has been able to bring about parliamentary democracy and a new profile for the nation as a regional leader with designs on an international role.

Having stood up to the world, will Bainimarama now have the courage to address such issues as human rights abuse and the search for political self-determination in Indonesian-annexed West Papua?

And at home will he be able to look beyond past enmity and political differences and fill the rest of his four years in office with peace, prosperity and good governance as did the dictator Augustus?

New kid on

By Netani Rika As the year draws to an end, Pacific leaders will look to the success of regional détente with some satisfaction.

Kiribati and the Marshall Islands have drawn global attention to climate change and rising sea levels, Papua New Guinea and Nauru have become major players in the processing of asylum seekers.

Across the region, leaders have met and discussed matters of mutual interest with the heads of the three of the world’s largest economies – Indonesia, India and China.

Just last month regional leaders gathered in Fiji for multi-lateral talks – first with India’s Narendra Modi and days later with China’s Yi Jinping in an unprecedented flurry of diplomatic activity. Earlier in the year they gathered on the island resort of Denarau for bilateral talks with Indonesia’s Susilo Bambang Yudhoyono.

Much has been made of these visits and the gains made at local and regional level.

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Bainimarama diplomacy

By Netani Rika

Invictus Pictures

the block leads the way In Fiji the visits have been touted as recognition of the government of recently elected Frank Bainimarama. Further abroad these visits are seen as recognition of the region as an important asset in global geo-political relations. In the euphoria of the events, however, many fail to see the gradual move made by Fiji to become a major player in world politics. It is a move which could see this long-time regional hub take over the Big Brother status enjoyed for so long by Australia. Addressing Fiji’s Parliament, Modi said the country of just under a million people could be a hub for India. Already India has opened a US$75million line of credit for Fiji and promised technical support in education, agriculture, energy and rural development.

And more assistance is likely to come over the years.

“India will remain a committed development partner for Fiji,” he told Fijian parliamentarians.

In China, Foreign Minister Wang Yi said after his Xi’s Pacific visit that the region was

rich in marine resources and blessed with geographical advantages.

“They are the natural extension of the construction of the 21st-Century Maritime Silk Road and an important component of Asia-Pacific integration,” Wang said.

In what can be seen as a jibe at Australia and New Zealand, Wang said leaders of the two countries had described themselves to Xi as “neighbours of China.”

But until recently, Australia and New Zealand have been more engaged with the United States than its Pacific neighbours.

Pacific leaders have seen the attitude of Australian and New Zealand leaders as dictatorial, unfair and inconsiderate of regional values. Of late, Fiji has borne the brunt of this attitude in the wake of the coups of 1987 and 2000, and the Bainimarama putsch of 2006.

While Australia and New Zealand introduced sanctions, China called on the world to allow Fiji to overcome its internal •Continued on Page 16

Fiji’s diplomatic relations with China and India began under the leadership of Ratu Sir Kamisese Mara’s Alliance government as it carefully guided a newly independent nation into the world of global détente.

In 1975 Fiji opened diplomatic relations with China, leading to the establishment of a Chinese Embassy in Suva a year later.

Fiji maintained its links with China through an embassy in Japan until 2001 when Laisenia Qarase’s Look North Policy led to the opening of a mission in Beijing.

Fiji’s permanent office in India opened in 2005, even though the two countries had diplomatic relations since 1970.

The move was, again, part of the Qarase government’s policy of looking beyond Australia and New Zealand and had its foundations in the diplomacy of the Mara era.

When Bainimarama seized power in 2006, China and India were the most lenient towards the regime and stepped into a vacuum left by Australia and New Zealand.

The Bainimarama regime was able to capitalise on the work of previous Fiji governments and the willingness of the two Asian superpowers to strengthen relationships.

India decided to engage with, rather than isolate Fiji. China took the stand that Fiji should be allowed as an independent nation to handle its affairs without outside interference.

At the time, Chinese Ministry of Foreign Affairs deputy director general Deng Hongbo said China had always respected Fiji’s status as an independent nation.

“We have called on the other countries to do the same and reconsider their attitudes towards Fiji and the current situation in the country,” he said.

Despite differences over the years – with China over relations with Taiwan and with India over the treatment of ethnic Indians in 1987 and 2000 – relations between Fiji and these large economies have never been better.

Islands Business, December 2014 15

Cover Report

Model charity saves lives Vanuatu medics lead the region

By Tony Wilson

Fijian welcome ... ChinaÕ s Xi Jinping is welcomed at Denarau during a recent state visit. Photo Fiji Department of Information

•From Page 15

difficulties without interference prompting Bainimarama to say in 2008: “Fiji will not forget that when other countries were quick to condemn us following the events of 1987, 2000 and 2006, China and other friends in Asia demonstrated a more understanding and sensitive approach to events in Fiji.

With Fiji labeled a pariah by the Pacific’s superpowers, it was forced to continue the Look North Policy first introduced by the late Ratu Sir Kamisese Mara in 1987.

Islands Business, December 2014

Bainimarama went beyond Singapore and Malaysia to knock on the doors of China and India whose expanding economies need the resources of the Pacific. Foreign Minister Wang made mention of that need after returning from the Pacific with Xi. “Pacific Island countries are members of the great Asia-Pacific family, rich in marine resources and blessed with geographical advantages,” he told Chinese journalists.

After describing China’s provision of development funding and scholarships, Wang said: “All these efforts will help the island countries convert resource advantages into development advantages as well as enhance the capacity for sustainable development.”

China and India have a wedge in the door to the Pacific.

Fiji is the tip of that wedge because of the work of the Bainimarama government.

After creating the Pacific Islands Development Forum, Fiji has taken on new allies and is shaping itself as a leader in regional relations with the outside world.

That more than eight leaders travelled to Fiji to meet Xi and Modi is a sign of Fiji’s benevolent attitude and the recognition that it is an emerging leader in regional geo-politics.

ory covo’s story is only one of dozens of people whose lives have been literally saved by the professionalism and dedication of the ProMedical paramedics and support staff.

Out on his bike on a road outside Port Vila on November 29, 2013, Ory was badly injured when his bike collided headon with a four wheel drive vehicle.

“I don’t remember the accident at all and in fact I have no memory of the week before it either,” said Ory. Revived and attended to by ProMedical paramedics, Ory knows that there is not a finer success story in Vanuatu than ProMedical and not a more important service in the areas it is available.

Chairman of the ProMedical board Douglas Patterson said the growth of ProMedical has been nothing short of outstanding.

“Today ProMedical is a model for any charity in this country, and possibly in the south west Pacific region, built as it has been over the last decade,” he said.

“It has built on the foundation of voluntary commitment from board members, vocational dedication from numerous overseas paramedics and our local staff, ongoing financial assistance from local businesses and residents and widespread support from hundreds of ordinary people who have subscribed as members.’’

He said ProMedical has never received any financial assistance from the Vanuatu Government, but had over the years built good relationships with several Government departments and officials.

The Vanuatu Emergency Medical Services Association (VEMSA) grew out of what was formerly known simply as ProMedical. Until 2004 ProMedical was a single vehicle, sole responder, private ambulance service owned and managed by an Australian paramedic named Darren Penny and his partner Vanessa Quigley.

As demand grew, services were expanded to include 24-hour paramedic ambulance, co-ordination of air ambulance evacuations, medical assistance and first aid training.

Patterson said the service quickly earned a

Cover Report strong reputation within the Port Vila comof a single paramedic. Financially however, munity, overseas insurers and government the service could not yet support a second agencies. In December 2001 a custom built paramedic. ambulance was imported from Australia ‘’In these early years, the board often was and equipped to the standard of Advanced the management, having to make most of the Life Support using existing equipment. day to day decisions, and to do this properly This resulted in a dramatic increase in local the board used to meet every two weeks until emergency work, proving that if a service is 2007. Occasionally we reached the point provided people will use it. where there was barely enough money to pay “ProMedical was approached in 2002 to the staff salaries and we stayed alive thanks take on the management of Vanuatu’s hyto private, sometimes anonymous, donations perbaric chamber,” he said. made at these crucial times.

“Previously installed at Northern Districts “Only because of the concerted efforts of Hospital in Luganville, Santo the chamber certain people, who gave their donations in was relocated to Port Vila and installed in ProMedical’s ambulance station where it has been ever since.

“When Darren and Vanessa decided to return to Australia it occurred to a small group of community minded individuals that this would deprive the Port Vila community of a vitally important service. A group of dedicated people from various walks of life formed a charity to salvage this vital community service, so that it was not lost.

“This group decided to meet with Darren to see what could be done to continue the rapid response ambulance service he had established and run for three years.

“In late 2003 a steering committee was formed with the intention to guarantee the future of the service. This resulted in the formation of the VEMSA as a registered charity. VEMSA took over the operations of ProMedical on January 1, 2004.’’

Patterson said the organisation is guided by a voluntary board made up of Port Vila residents who have QUICK fix ... first responders of Vanuatu’s ProMedical Paramedics always represented a cross-section patient. Photo Supplied of the community.

“Eventually we took over the ambulance and a list of other equipment cash and kind, were we able to survive the and began the long and sometimes difficult first few months, and then, almost before we process of establishing a viable paramedic serknew it, the first year.’’ vice for the growing population of Port Vila Patterson said at this stage there were no and Efate and the visiting tourists,’’ he said. qualified paramedics in Vanuatu and no local “Our second year, 2005, was very disrupNi-Vanuatu had even commenced paramedic tive, with a number of unexpected changes of studies, let alone finished them. staff forcing us to rely on short term locum “Finding suitably qualified paramedics visits from Australian paramedics to assist from overseas to lead the operations was not with the management and administration of easy,” he said. the ambulance station.

“We could not offer equivalent employ“As ProMedical had no external finanment packages, and there was none of the cial assistance and relied solely on fees for professional structure that exists in larger services, the continuation of the service as centres such as peer support and professional a private concern became more difficult as counselling. the workload increased beyond the scope “Unless you know what paramedics go

through in their daily working lives, you may not appreciate just how stressful their lives can be. Having to deal with medical emergencies at any time of the day or night.

Having to cope with panicking relatives and friends. Having to console grieving family members when things end tragically.

“In the early years, there was a misconception that ProMedical was ‘samting blong ol white man’ but gradually that changed as more and more Ni Vanuatu had their lives saved by the ProMedical team.’’

Patterson said that today about 75 per cent of the subscribing members of ProMedical are Ni-Vanuatu citizens, many of them through the workplace subscription scheme.

The current Operations Manager is former Australian intensive care paramedic, Michael Benjamin, who started working full time for ProMedical in July 2011, having previously worked for short term locum periods.

Since he took over the reins of the organisation, ProMedical has really grown, become even more professional, and now has highly successful annual fund raising events.

He said the core values of the ProMedical ambulance service include establishing and adhering to international standards for equipment and patient care, the professionalism of the staff, responding to all calls for assistance on a 24-hour basis, and accessibility for all members of the community.

When Benjamin started full time with ProMedical, there was still only one ambulance and one rapid response sedan in Efate. Now there are two ambulances, two rapid response sedans and a rescue truck. ‘’We opened an ambulance station attend to a in Santo with two ambulances in October,’’ said Benjamin.

“And we now have 13 paramedics working in shifts around the clock which is a big improvement in the past three years.’’

He said ProMedical carries about 500600 patients per year plus it is involved in a number of international medical evacuations and now boasts more than 5000 subscribing members.

In November, the Ministry of Health asked them to take over the country’s domestic medivacs and there are plans for ProMedical to be involved in fixed and rotary wing emergency retrievals, based in Port Vila, in the coming months.

This is one organisation that the entire community supports and for ProMedical the sky really is the limit.

Islands Business, December 2014 17

Cover Report

Poet slams crisis into UN level rise hit home. “I saw how vulnerable we are and the threat really dawned on me,” she said. “I started talking to students and doing my own research.” What bothered Jetnil-Kijiner was most people t was no surprise to friends of Marshall Islander Kathy Jetnilseemed concerned with islands losing their seat at the United NaKijiner when her delivery of a poem about the looming climate tions or losing rights to their 200-mile exclusive economic zone if crisis sparked a standing ovation from heads of state at the United rising seas engulf them, not about losing their culture and identity.

Nations General Assembly hall in September. That four-minute oraShe was frustrated by reading and tory titled “Dear Matafele Peinam” hearing people talk about migrating — a poem to her infant daughter for safety from rising seas.

— electrified world leaders at the “One day, I went to my auntie’s opening of UN Secretary General house where my family was singing Ban Ki-moon’s Climate Summit for her birthday,” she said. “It was in New York City, and has since so cool, I wished I could tell my gone viral on YouTube, with over friends in the United States about 300,000 views. it.” Thus was born “Tell Them,” a But the roots of that poem and poem about island life and climate its superb delivery go back to threats that Jetnil-Kijiner perJetnil-Kijiner’s Hawaii high school formed at a pre-Olympic Games days a decade ago when she was festival in London in 2012. first exposed to “slam poetry.” “It What she describes as her “scariwas like lightning went off in my est” experience in slam poetry was head when I heard it,” said Jetnilalso one of her most important Kijiner, now 26 and an instructor in performances, her 2013 poem Pacific studies at the College of the “Lessons from Hawaii.” “I knew Marshall Islands. She was an avid the reactions to it wouldn’t neceswriter in high school and achieved a sarily be positive,” she said, and journalism degree before completthey weren’t — with both positive ing a master’s in Pacific Studies at and negative comments posted on the University of Hawaii earlier various websites. “Lessons” was a this year. “I’d never seen poetry sharp comment about how Marperformed this way before, or the shallese and Micronesians living dialogue with the audience,” she in Hawaii feel about being, lately, said. “I thought, this is it. It was the brunt of racism. “The poem something I wanted to do.” was very necessary to break open Her poise wasn’t always there. the discussion on racism,” she said.

She tells of fretting about her first “We needed to shatter the idea that performance, staying up all night Micronesians were happy to be working on the text of the poem, treated like this.” A year on, she’s and having to work up the courage Global warrior ... slam poet Kathy Jetnil-Kijner. Photo Giff Johnson thinking about a follow up. “Now, to stand in front of people. In her I feel the need for a second Leslast semester in high school, she son from Hawaii poem,” she said. competed in a slam poetry contest “Moving forward, how do we heal the anger and hurt (from racism)?” to represent Hawaii in a New York City contest. Jetnil-Kijiner was When Jetnil-Kijiner was chosen from among over 500 civil society selected to go to New York for the competition, another in a line of applicants to be a featured speaker at the UN Climate Summit in eye-openers for the then-high school senior. “Slam poetry has its September, her spotless delivery of Dear Matafele Peinam proved roots in hip-hop music,” she said. “It was much edgier than anything that slam poetry communicates just as well to global leaders as it I’d done.” Participating in the New York contest opened her eyes to does to a hip-hop crowd. a new world of performance poetry, hip-hop musicians, and New Jetnil-Kijiner said she’s keen to continue expanding her grassroots York City. “I was in shock the whole time,” she recalled. activism on climate problems at home in the Marshall Islands. In But these public performances were showing her the value of this October and November, she was working with College of the Marform of oratory to tell people about her part of the world. “I knew shall Islands students on the college’s plans to divest its Endowment certain stories that no one else in the world was talking about,” she Fund investments from corporations involved in fossil fuels, with said. “And I knew a way to do it.” the hope this will spark a movement at colleges around the Pacific.

While attending university, she put together “History Project,” a “I definitely feel a responsibility to walk the talk,” she said. A lobiting commentary about nuclear testing in the Marshall Islands and cal NGO she’s involved in, Jo Jikum (Your Place), is increasingly perceptions of Americans about the islands. It was her first presentaengaging younger people in the Marshall Islands on climate issues. tion to be posted on line.

“Our leaders have been fighting for decades,” she said. “Now it’s up It wasn’t until she returned home after gaining her under-graduate to youth to carry it on.” degree several years ago that the impact of climate change and sea

By Giff Johnson

I

18 Islands Business, December 2014

Islands Business, December 2014

Opinion

All dressed up and somewhere to go – at last!

Eight years ago, just weeks after Voreqe Bainimarama took over the reins of Fiji’s administration, I was among the earliest from the international media to interview him for the New Zealand Herald. In that more than two-hour rambling interview in the Prime Ministerial offices at Government Buildings, he was at pains to convince me that he had made the move with utmost reluctance. He had no choice, he had said. His hand was forced. I could see he was a straight shooter, telling it like it is – warts and all. There was no hint of any political nous or diplomatic savoir-faire in the manner that he spoke, only an air of sincerity.

When I dispatched the piece to the editor, he called back to ask what I really thought of his “reluctance.” I told him what I thought.

That weekend, the interview ran with the headline ‘The Reluctant Coup Leader.” I never met Bainimarama in a journalistic capacity after that. But going by the pride of place he earned for Fiji last month hosting two men who lead almost half the world’s population within a couple of days of each other, I suspect he is not so reluctant to lead anymore.

He has no reason to be. He was elected with a convincing margin in an electoral process that the world endorsed. In any case, back then he had only said he was a reluctant coup leader.

This year has been momentous for Fiji. After sitting around like the proverbial maiden who was all dressed up with nowhere to go, Fiji seems to have been delivered its long due ticket for the journey to realise its true potential. Fiji has always been the regional leader – geopolitically, logistically and economically, even when it has been in political turmoil, which is every so often. It is this political instability and uncertainty that has held Fiji back from achieving greater glory, which is well within its capacity. Fiji has grown to be a middle-income country and in many indices the envy of its Pacific Island compatriots.

This is despite the political troubles it has faced. Even under the military dispensation, the economy grew quite impressively, amidst less than salubrious global conditions. Many a commentator has said in the past that Fiji has the potential to grow into the Singapore 20 Islands Business, December 2014

of the South Pacific. That metaphor is back in circulation. At a meeting of movers and shakers in New Zealand last month, exactly that sentiment was aired.

But Fiji has some challenges ahead if it is to progress rapidly on its journey toward achieving full potential as a regional economic engine. Rebuilding democratic institutions is one of them. It is good to see growing robustness in the opposition as evidenced in the questions raised around potential financial impropriety during the past few years. It remains to be seen how the new democratic administration, which indeed is composed essentially of the same senior leaders as the previous one, will deal with prickly situations like these. Will it be easy to throw off the non-democratic yoke it had got used to over the past eight years?

The real test for the leadership in its new democratic avatar is how quickly and efficiently it covers ground lost to a more authoritarian style of functioning. The change from passing laws by degree to doing so by a parliamentary process will need some adjusting. Among its main election planks has been inclusiveness, carrying along all races and people with all political and religious dispensations toward achieving national prosperity and wellbeing. It also has the task of encouraging the flowering of a free media as an effective watchdog of democratic institutions. The composition of the new Parliament does inspire confidence, not least because it has a significant representation of women, with the Speaker, too, being a woman – an absolute rarity in the Pacific Island region, hitherto known to have the worst gender parity among elected representatives anywhere in the world. If Fiji can stay the course with sustained reforms to accelerate already positive economic growth in the new democratic environment, it is only a matter of time when it will attract investment from far and wide. This will not just be good for itself but for the whole region.

New kid on the block Fiji was the reason why most of the Pacific Island leaders got to meet and hobnob with Indian Prime Minister Narendra Modi and Chinese President Xi Jinping. It was an event

By Dev Nadkarni

unprecedented in the region’s history. India and China are the fastest growing economies in the world and the importance of linking on to them cannot be overstated. China has been in the regional space for a while now.

India is the new kid on the block.

The charismatic Indian Prime Minister’s visit promises to open many doors for not just Fiji but for the region as a whole. For one, Pacific Islanders will be able to travel to India with a visa on arrival arrangement.

Several funding initiatives have either been announced or pipelined. There is much to gain for Fiji and the Pacific Islands from the growing relationship with India. Perhaps much more than commodity exports, the relationship could bring far more value in terms of knowledge and technology transfer and capacity building in the Pacific, not to mention inward investment from India’s growing numbers of millionaire entrepreneurs scouring the globe for worthwhile opportunities.

While in Fiji, the Indians announced a plan for an information and communications technology initiative in Fiji and the Pacific. There is already a growing body of Indian professionals working in the Pacific, particularly in Papua New Guinea and Fiji.

The knowledge of English, similar legal systems and climatic conditions to the Pacific, all augur well for capacity building initiatives in the Pacific in many fields, coupled with increasing investment in the tourism, agribusiness, healthcare and the ICT sectors, to name only a few. India also aired the need for a formal body to be formed with the Pacific business community to promote trade and investment between India and the region.

For the hawks that sense possible conflict between the two Asian giants vying for influence in the region, fear not. With Modi at the helm, Sino-Indian relations have been the best they have ever been in all these past decades. The two leaders have engaged on a practical plane to defuse all manner of tensions including contentious territorial and border disputes with dialogue.

The region is on the cusp of a new era. And if Fiji is finally going somewhere after all these years, the Pacific might as well join her.

“Your taxes connect communities” “Your taxes secure the nation” “Your taxes ensure a healthy nation” “Your taxes realise dreams and grow the nation” “Taxes are not fines. They are the cost of enjoying public services”

Politics

Modi’s bold move India strengthens ties to Pacific

Photo Invictus Pictures

By Netani Rika

22 Islands Business, December 2014

When Indian Prime Minister Narendra Modi (pictured) left Fiji after a 15-hour visit last month, he had boldly ventured where none of his predecessors had been before.

For with one stop at what has traditionally been the Pacific’s hub since the first ships – and later jet-liners – began to traverse the world’s largest ocean, Modi sealed partnerships with most of the region’s leaders.

When Indira Gandhi visited Fiji in 1981 – a hint over a century since the first Indians arrived as labourers for sugar plantations – it was for bilateral talks.

Now, 135 years since the girmitiya, Modi held multilateral talks with the heads of government of the Cook Islands, Kiribati, the Marshall Islands, Palau, Papua New Guinea, Nauru, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu and promised increased trade and development opportunities.

Ostensibly, Modi’s visit was to allow the inaugural Forum for India-Pacific Islands Cooperation. But observers noted that Modi arrived just ahead of Chinese President Yi Xinping.

“Masterful counter-diplomacy,” was how a member of the Fiji-based diplomatic corps described the Indian tactics.

“He came in, opened the doors to trade and development, promised to help with climate change – in fact he pushed all the right buttons if you like and from then on the Chinese were forced to play catch up.”

Indeed, just days later President Xi announced visa on arrival for Pacific visitors – a move made by Modi earlier.

Since the coup of 2006, China has steadily increased its aid to Fiji in the construction of roads, hospitals and a hydro-electricity dam. Now its aid to Fiji is worth close to US$2billion.

Jenny Hayward-Jones of Australia’s Lowy Institue believe this move will see China increase its political influence in Fiji and the region.

India’s aid to Fiji and the region has – until now – been limited to technical assistance, education and small development projects such as sewing machines harvesters, That is about to change.

Addressing the Fijian Parliament, Modi promised to expand defence and security

cooperation, including assistance in defence training and capacity building.

That will be welcome news for the Fijian military establishment, forced for several years to turn to China and Indonesia after Australia and New Zealand suspended defence links in protest against the coup of 2006. As members of the Commonwealth and former British colonies, India and Fiji share the English language and a similar legal system making training in that country more sensible.

Modi’s visit also opened the door to other opportunities for the region.

“We agreed to identify opportunities to expand our trade and investments and work out a concrete roadmap.

“We are also prepared to increase cooperation in renewable energy, especially solar and wind energy, and in building capacity to adapt to climate change.

“In addition, we could share our experience and expertise in disaster management and response,” he said.

For Fiji he announced a credit line of US$70million, visas on arrival, a doubling of scholarships and $USD5million to promote small business and village enterprises.

For the Pacific there was a $USD1million fund for climate change adaptation and visas on entry to facilitate trade and medical treatment.

The development of a state of the art medical services in Fiji will assist with training of regional medical experts and offer specialist treatment closer to home for an increasingly unhealthy Pacific.

In the area of energy, India will work on solar projects with Pacific Islands at community level.

Technical experts from India will also be provided in the agriculture sector.

To facilitate trade, an office will be set up in New Delhi – most likely at Fiji’s new chancery – to promote Pacific goods and services.

In bringing the Pacific on board, Modi has also cleared the way for technical cooperation from the region in India’s space programme.

Fijian Permanent Secretary for Foreign Affairs, Amena Yauvoli, described Modi’s visit as successful and significant.

That it was significant for Fiji and India is to be expected.

But of greater significance is probably how Modi overshadowed Xi in a game of diplomacy in which the Pacific is prize.

Politics

China hands out goodies to Pacific allies

By Dennis Rounds N ovember ’ s historic F iji meeting between China’s President Xi Jinping and eight Pacific leaders served to further solidify China-Pacific cooperation and project the superpower as one of the Pacific’s most generous donors.

Meeting the leaders of Fiji, Papua New Guinea, Samoa, Tonga, Niue, Vanuatu, Federated States of Micronesia and Cook Islands on the tourist-populated Denarau Island, President Xi announced a host of China-funded projects aimed at developing island economies, building infrastructural facilities and tackling climate change.

And, to further enhance endearment between China and its Pacific allies, President Xi reassured the eight Pacific leaders of his country’s policy of respect for their sovereignty and right to determine regional development and regional affairs.

He also pledged China’s support for regional endeavours, at international level, aimed at safeguarding the Pacific region’s legitimate rights and interests.

Referring to China’s stature as the world’s fastest growing economy, President Xi encouraged island leaders to learn from his country’s rapid development.

As a result of the Fiji meeting, the island countries will benefit from 2000 scholarships and 5000 slots for various studies and training over the next five years. They will also have more Chinese medical teams visiting the region. China is also offering zero-tariff preference for 97 percent of tax items imported from the least developed countries.

Memoranda of Understanding Promising to attach more importance to China’s relations with the island countries, President Xi concluded a number of Memoranda of Understanding and Memoranda of Agreements in one-on-one bilateral meetings with the eight leaders.

Most of the agreements signed, however, simply involved the process of implementing projects in the China-friendly Pacific nations to which China had pledged US$2 billion in aid funding at a meeting in Beijing in November 2013.

The focus was on issues aimed at addressing poverty elimination, disaster reduction, food security, energy security, humanitarian aid and climate change.

Fiji fared well in the discussions with pledges to establish a Chinese Cultural Centre in Fiji, increased defence cooperation, supply of “goods” to help Fiji address

Flying visit ... China’s President Xi Jinping is welcomed to Fiji. Photo Fiji Department of Information

climate change issues, enhanced economic and technical cooperation, construction of a sports complex in rural Vunidawa and visaon-arrival in China for Fiji passport holders.

In appreciation of Samoa’s One China policy, the island country will get support in developing clean energy as well as support to “tackle” climate change.

Samoan Prime Minister, Tuilaepa Lupesoliai Sailele Malielegaoi, said he went in to the bilateral talks with a “wish list”.

“It’s now for officials to prioritise what needs to be done immediately,” he said.

In the bilateral meeting with Papua New Guinea’s Prime Minister Peter O’Neill, President Xi revealed China’s intention to expand bilateral cooperation in agriculture, forestry, fishery, infrastructure construction and energy resources. Prime Minister O’Neill later told journalists there were areas PNG was keen to have addressed.

“We have some on-going projects at home including a national broadband roll-out and some of the water and sewerage projects that the Exim Bank of China is funding, in terms of the concessional arrangements we have with China,” he said.

In what appeared to be a reference to the formal dress and excessive level of Chinese security at the summit venue on Denarau

Island, Mr O’Neill revealed his country’s intention to ensure a major international meeting it is hosting in 2018 is done “the Pacific way”.

When pressed to elaborate he jokingly responded: “Come without the suits.”

Other bilateral meetings included: •A pledge to Tongan Prime Minister, Siale’ataongo Tu’ivakano, to cooperate in areas such as infrastructure construction, personnel training and climate change.

•Assurance to President Emanuel Mori of the Federated States of Micronesia of strengthened exchanges on governance experience, consolidated cooperation in fishery, new energy, infrastructure construction, economy and technology, and a boost to people-to-people and cultural exchanges.

•A commitment to Vanuatu’s Prime Minister, Joe Natuman, to continue assistance with personnel training, addressing climate change issues and promoting sustainable development.

•Discussions with Prime Minister Henry Puna of the Cook Islands to open a Confucius Institute in the Cook Islands to boost people-to-people and cultural exchanges and, early completion of a water supply project which is an arrangement between China, New Zealand and the Cook Islands.

•A promise to PremierToke Talagi to enhance cooperation with Niue in fishery, infrastructure construction and medical and health services Preferential treatment Preferential treatment was given to Chinese journalists covering the historic meeting. Non-Chinese journalists – apart from Fiji Department of Information cameramen - were barred from attending MOU-signing ceremonies.

Fiji-based journalists, together with Liam Fox of Australia’s ABC, were only allowed to photograph President Xi’s bilateral meeting with Prime Minister Bainimarama.

While local journalists were ushered out in stern fashion from all other meetings, they were summoned, however, to photograph President Xi’s combined meeting with regional leaders and listen to his “keynote address” which was delivered in the Chinese language. Requests for a translation of the speech were brushed aside with the instruction that non-Chinese journalists visit China’s Xinhua News Agency website for the English version.

President Xi’s arrival into Fiji on November 21 was covered extensively by local media. He departed Fiji two days later - almost unnoticed by the local population.

Islands Business, December 2014 23

Politics

Hollande says France will remain a Pacific power French President pledges climate action Hollande’s speech acknowledged past achievements and ongoing challenges Sometimes in politics, it’s (clarifying the electoral rolls, engaging with the little things that matter. the United Nations, promoting economic On his first official visit to and social development). However many New Caledonia, French President Francois FLNKS leaders told Islands Business there Hollande stood in front of two flags on the was “nothing new” in Hollande’s presentastage of the Tjibaou Cultural Centre, to prestion and suggested the President’s visit did ent his vision for the future of the Noumea not advance the decolonisation agenda in the Accord. final years of the Noumea Accord.

One flag was the blue, white and red Union Calédonienne leader Roch Wamytricolour of the French Republic, the other tan, calling for action to reform New Caledothe flag of the European Union. But nonia’s electoral rolls, said: “Hollande’s speech where to be seen was the multi-coloured seemed to avoid France’s responsibilities as flag of Kanaky, the banner of the Kanak an administering power to lead the country independence movement – even though towards decolonisation.” all three flags fly in front of town halls and For Sylvain Pabouty of the DUS Party, government buildings across the country.

Hollande’s visit left many nationalists “with A mistake? Perhaps. But a sense of disappointment, a it was a worrying symbol bitter taste in their mouth.” for Kanak leaders, who lis“There’s even a sense of a tened as Hollande stressed step backwards from some that France would remain of the positive commita Pacific power, welcomed ments and initiatives already by its neighbours: “That taken by the government wasn’t always the case in and the President himself,” past decades. But today, Pabouty said. “When [conthey ask us to remain, servative President] Jacques because we can also help Chirac came here in 2003, guarantee the future of the he really shook things up, region.” on important issues like After attending the G clarifying who could vote 20 meeting in Brisbane, for the provincial elections.” the French President was While many indepenin New Caledonia for 36 dence leaders were rehours, before returning to served, anti-independence Canberra for the first visit French President ... Francois Hollande says parties were also wary. Two France will remain a Pacific power. Photo: to Australia by a French Nic Maclellan of the three major conserPresident. vative coalitions, the Front Hollande had a hectic trip around New for Unity (FPU) and the Union for New Caledonia: placing wreaths on the national Caledonia within France (UCF), called on war memorial and the graves of Jacques anti-independence supporters to rally and Lafleur and Jean-Marie Tjibaou; inaugudeclare “Let us remain French.” rating the Koniambo nickel smelter in the In a subdued protest, over 5000 people Northern Province; attending a high level waving French flags marched around dialogue on climate change with Pacific leadNoumea in the midday sun, launching into ers and diplomats; and holding meetings with bursts of the national anthem. members of New Caledonia’s Congress.

Rally organiser Harold Martin of the AveIn his major public address, Hollande nir Ensemble Party told Islands Business that proclaimed that the French government “the silent majority” were gathering to send a would remain neutral in the contest between message: “The problem’s well known: there’s supporters and opponents of independence: a majority who want to stay with France and “The French State is standing beside you, a minority who want independence. We have allowing you to decide on your future.” a new administration in Paris and a new

By Nic Maclellan

24 Islands Business, December 2014

President who doesn’t know the dossier – it’s the first time he’s come here.”

Martin said that supporters and opponents of independence were divided on the way forward: “I think that if we go to a referendum, it will be in 2018, when the French State must organise a vote as set out by law in the Noumea Accord. I don’t think at present there’s the necessary majority in Congress to move the date forward.”

The Speaker of New Caledonia’s Congress Gael Yanno agreed that a self-determination referendum was unlikely soon and suggested the next French Presidential elections in 2017 were a crucial step before any vote. Yanno (a conservative politician aligned with France’s UMP party) said that the Socialist Party may not win office again: “I hope that a right-wing President will be elected in May 2017.”

The third major anti-independence party Caledonie Ensemble (CE) did not endorse the rally. CE leader Philippe Gomes, who represents New Caledonia in the French National Assembly, hopes to maintain a diplomatic dialogue with the current administration in Paris. He was rewarded with an invitation to join the Presidents of New Caledonia and French Polynesia on the French President’s state visit to Australia.

While local politicians were less than enthusiastic, Hollande was received with great warmth at the High-Level Dialogue on Climate Change, hosted by SPC Director General Colin Tukuitonga.

In contrast to the Australian government, which has refused to commit funds to the Green Climate Fund (GCF), France has pledged one billion Euros to this global mechanism to respond to climate change.

At the SPC climate roundtable, Vanuatu Prime Minister Joe Natuman told Islands Business he’d had a positive meeting with French Foreign Minister Laurent Fabius and his government welcomed France’s engagement on climate policy.

“Since they’ll be hosting the COP21 meeting in Paris in December 2015, we hope for a comprehensive agreement on climate change,” said Natuman. “Mr. Fabius said they hope that the Pacific will be well represented in the outcome in Paris next year.”

Kiribati’s Anote Tong and Tuvalu’s Enele Sopoaga welcomed the commitment to climate funding by France and other major powers, but re-iterated the islands’ repeated call for effective mechanisms to access these resources, with a focus on priorities like adaptation and loss and damage.

Natuman noted: “I think that they’re getting the message on adaptation. Certainly they’ve promised a lot of money, pledges have been made, but I think we need to give priority to island countries in terms of disbursement of climate funds.”

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Meanwhile, Tikolevu said the Authority was looking forward to collect its 2015 target

of $2.363billion (US$1.2064b).

“We are optimistic of achieving our revised target of $2.1 billion this year and we are looking forward to meet next year’s target of $2.3b.”

Tikolevu added that the policies announced by the Government in the 2015 Budget would assist FRCA to achieve its target.

“The policies announced by the Government, would assist the private sector, which in turn will assist revenue collection,” Tikolevu said.

One of the new policies introduced in the 2015 Budget is the strengthening of Customs powers to recover penalties.

FRCA Chief Executive Officer, said the recovery of unpaid penalties was available to FRCA for unpaid taxes.

“In the past, our Customs officers did not have the power to recover penalties. We can do that now, meaning we can now impose actions such as garnishee orders, departure prohibition orders for unpaid penalties in regards to customs,” Tikolevu said.

“One of the other major changes for Customs is the authority to audit companies going back five years.

“Currently, we can only audit companies for duty evasion for a 12 month period. Now, we have the power to audit company records for the last five years,” Tikolevu said.

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“There is a reason we are introducing this programme, there is belief that we have local residents who have not declared income or assets kept offshore in their annual returns,” Tikolevu said.

“We are giving our Fiji residents a chance to declare offshore assets and other investments now.

“We will be working closely with our overseas counterparts to see whether our local residents who have assets or income have paid taxes there.”

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Islands Business, December 2014

Politics

O’Neill faces fresh corruption allegations

Minister said.

“It gives us an opportunity to go before the independent tribunal and the courts to determine the outcomes of these decisions based on real evidence that will be presented to the tribunal and can be cross-examined.

“Our actions have been to ensure that the state continues to have some ownership of Oil Search which it has been doing since its inception.

“We have acted in the best interests of our country, in the best interest of our people, and it is important that we continue to be participants in resource development in our country.

“The only way to effectively participate in these resource developments is by making sure that we have ownership of some of the shares in those companies.

“Otherwise we will continue to be bystanders while other people come and continue to develop our resources.

“This is no way implicates personal gain on these matters. We have followed every process that is necessary to get the approvals to borrow this money. It was not a one-man decision, it was made by cabinet, NEC has made that decision and endorsed that decision, so am very surprised that I am targeted to be referred.”

The Prime Minister said there are still outstanding issues that need to be resolved in what appear to be related matters.

“We have a Supreme Court reference that is currently before the courts seeking reference to the decision on the judicial review on some of the questions raised about this particular transaction.

“We will ask the courts for determination on these issues.”

PM O’Neill also highlighted a matter of significant transparency and PNG Prime Minister Peter O’Neill ... at the Pacific Summit in Fiji accountability concern relating to the with President Xi Jinping last month. Photo DINFO, Fiji handling of official documents that he said will be investigated.

It has been cited also that the Executive “The only concern I have is the individuGovernment has powers only to initiate als that have political interests seem to have loans, under section 210 for budgetary puraccess to decisions and processes before this poses. It has no other power(s) under the information is officially released.

Constitution to obtain loans outside of the “That is a serious concern and we will be budgetary process. asking the appropriate authorities to carry out O’Neill welcomed the notification from independent investigations. the Public Prosecutor that a Leadership “These people have inappropriate access Tribunal has been requested to hear matters to information even before the persons afbecause he will use the opportunity to profected.” vide clarity on this investment by the state The Prime Minister said the referral into the national resources sector. would not impact upon his schedule or “The Public Prosecutor’s referral is noted, ongoing management of public policy and and we welcome this decision,” the Prime government.

Uproar over purchase of shares

By Sam Vulum Papua New Guinea Prime Minister Peter O’Neill is undeterred by mounting high level corruption allegations against him with the latest being his referral for prosecution by a leadership tribunal relating to the Government’s purchase of shares in Oil Search Ltd through a Union Bank of Switzerland (UBS) loan facility of K3 billion (US$1.1b).

This is in addition to his prolonged arrest by police relating to his alleged illegal approval of payments to private law firm. A warrant issued by police for his arrest is on hold while he challenges its legality in court.

O’Neill described the latest allegations as somewhat dubious and driven by people with political motivation.

“I will continue to run the affairs of the country. For me personally I have been fighting many challenges since I was born and this is another of these challenges,” O’Neill said of his referral.

Earlier this year, the government took out a $AUD1.3 billion loan with the Australian branch of UBS bank to buy shares in the nation’s biggest company Oil Search.

The move was controversial, with criticism over the approval and the level of debt incurred by the nation.

It has been alleged “the K3 billion loan has been executed and obtained by the Prime Minister in violation of the express letter of the National Constitution under section 209 and in breach of seven other Laws of Papua New Guinea.

Section 209 (1) says the raising and expenditure of finance by the National Government, including the imposition of taxation and the raising of loans, is subject to authorisation and control by the Parliament, and shall be regulated by an Act of the Parliament.

The act of authorisation and control by Parliament is performed through an appropriation law, which comes in the form of an Annual Budget or a Supplementary Budget.

It has been however uncovered that the 2014 Budget Appropriation Act does not have any provision for a K3 billion loan and no supplementary budget providing for the K3 billion loan has been approved by Parliament.

26 Islands Business, December 2014

Business

PNG aims for balance budget High growth projected to continue

By Sam Vulum P apua N ew G uinea G overnment has handed down yet again another historic budget – a record K16.2 billion (US$6.19b) in comparison with three previous biggest budgets of US$5.7b in 2014, US$4.9b in 2013, and US$4.01b in 2012.

The 2015 Budget has been framed against a backdrop of moderate, albeit strengthening global economic growth and continued domestic growth underpinned by the commencement of LNG exports.

It will be PNG’s 14th successive year of growth.

Treasurer Patrick Pruaitch said PNG is among of a handful of nations to sustain growth through this period.

In his Budget speech, Pruaitch forecasts the economy to grow by 15.5 per cent ‘driven by a full calendar year of gas production and supported by a rebound in the non-mining sectors.’

The government is targeting a reduction in its expenditure in future years to sustain-

able delivery levels which combined with an increase in revenue, largely driven by the PNG LNG project, is forecast to bring the budget into balance in 2017.

KPMG noted the 2015 revenue increase of US$0.49b was largely based on mining and petroleum tax increases of US$0.344b primarily from the PNG LNG project.

Analysing the Budget, KPMG managing partner Troy Stubbings said: “The increase in revenue from the PNG LNG project will need appropriate management to ensure that the economic benefits are realised and fiscal strengthening continues.

“The development of the Sovereign Wealth Fund (SWF) framework incorporating a budget stabilisation fund into which mining and petroleum tax revenues and dividends are to flow remains a critical priority for government.

“It will be important to ensure that the dividend flow from National Petroleum Company PNG (NPCP) as the designated national gas company for PNG LNG and future projects is sufficient to support future

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Of course, PNG remains subject to the volatility of world commodity prices,” Stubbings said.

The main features of the budget are: • Expenditure to be received by the people and invested in infrastructure • Government income is higher than expected • Managed return to budget surplus by 2018 • Economic growth very positive and well above global average • Kina stabilising following beneficial time for exporters • Restructuring of employment with the evolution of mining projects • Inflation reducing and stabilising • Current account is moving into surplus • Ongoing funding with debt reduction • Expenditure to be received directly by the people and invested in infrastructure Total estimated government expenditure for 2015 is projected at US$6.198b. This includes US$3.525b in operational expenditure being spent directly on services used by the people of Papua New Guinea in 2015, and US$2.672b invested in building capital infrastructure next year. Operational expenditure is allocated for schools, healthcare, security, support to agriculture and SMEs and other government services.

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Business

Old project, new life ... the Momi Bay Resort on Fiji’s Coral Coast. Photo Abigail Covert -Sokia

Troubled Momi project springs back to life Fletcher to built Marriott resort

By Samisoni Pareti The troubled Momi Bay Resort Development Project is making a comeback seven years after it fell apart due to financial turmoil which landed the Fiji National Provident Fund in hot water.

The comeback is going to cost FNPF an estimated US$101 million with the construction contract being awarded to New Zealand company Fletcher who will finish the partially built resort over the next two years.

The financial injection is a new lease of life to help change the project’s image from being a ‘ghost town’ to becoming the next big tourism attraction.

Fiji’s Prime Minister Voreqe Bainimarama re-launched the development last month almost two years after his government had announced US$76 million backing towards its revival.

“Today, we draw a line under that failure and celebrate a remarkable turnaround in the fortunes of this project, just as we celebrate the revival of the fortunes of our nation – a booming economy and our new and vibrant democracy,” Bainimarama said at the relaunching on November 13th.

The Momi Project has a dreadful history which goes back more than a decade to when the initial developers Matapo Limited started construction on the site.

The developer’s parent body was financial company Bridgecorp based in New Zealand which collapsed in 2007 suffering from huge financial losses.

This led to the eventual demise of the Momi Bay Resort Development however when Bridgecorp went into receivership, its receivers tried to recover money for the 14,360 Brdigecorp investors.

In 2009 FNPF unsuccessfully tried to sell 28 Islands Business, December 2014

the development during an auction when bidding stopped at US$18 million which was far below their expectations.

The following year the government introduced the Momi Bay Development Decree giving ownership to FNPF amidst legal battle for the property.

“There were a lot of people who wanted to come and buy it almost for a song they thought FNPF wanted to get rid of it and then there was very little money that was offered so at that stage we said we would rather not give it away we would take the burden and develop it ourselves,” FNPF Chairman Ajith Kodagoda said.

FNPF spent US$3 million last year to do lagoon rehabilitation as part of initial ground work before construction.

Kodagoda said the construction phase which was due to start earlier this year was delayed three months while they waited on the results of the September General Elections.

“The challenge is not starting the challenge is in the completion so we must make sure that we continue with what we have started. There was (some delay) because we had to go through the whole process of governance in trying to select the best constructor and because of elections the decision making stopped for about three months. We did not want to be seen making a decision just before elections so the board decided that it’s best we see the outcome of the elections and then move forward in case there was a change in the policies of the government that would have affected the Fund and the Momi Project. So there was a three month delay because of that,” Kodagoda said.

New Zealand based Fletcher Building Limited will complete the 250 room Momi Resort which will be managed by Marriott

International under their 25 year partnership with FNPF. The first few months of construction will see demolition work before the actual building phase starts early next year.

Fletcher General Manager South Pacific Allan Brown said finding skilled workers in Fiji would be one of their challenges.

“It’s a two year project we are in the enabling phases where we are rectifying the existing structures that has sat in the sun and the wind and the rain for the last seven years so that will take some time and then completion in 24 months,” Brown said “We don’t see the project as having bad vibes but it’s a challenge to come in to a site that has already got structures that have sat in the salt water, sat in the weather been through cyclones. The challenge is the brown field site and bringing that up to the standard as though we have brought it up from scratch.”

The resort is expected to be known as the Fiji Marriott Resort at Momi Bay and will offer 114 free standing bures and 136 standard rooms.

Out of the 114 bures, 22 will be overwater bungalows with at least four signature food and beverage outlets.

Marriott International had initially won the bid to manage the resort when original developers Matapo Limited started the project.

And the resort is also hoping to bring back local staff that have been working at Marriott hotels overseas but were hired to work at Momi for the initial hotel development.

“We are extraordinarily excited about this opportunity. Fiji is one of the world’s great resort destinations so for a very long time we have wanted to come here we couldn’t have chosen a more spectacular site to come so we are very excited about it indeed,” Marriott Vice President Hotel Development Asia – Pacific James Doolan stated.

The resort development is the first stage; the property will cover 107 acres of the 640 acres of land under the Momi Bay Project.

The second stage is the sale of residential lots which is likely to begin before the resort is completed in 2016.

There is also potential to build another two resorts and a golf course on the site but that is not yet part of the plans.

Aviation/Tourism

Turbulent times for regional aviation

this month. The two airlines didn’t meet at ASPA’s last conference in July, which was held in Noumea, New Caledonia.

ASPA’s December conference comes as Fiji Airways finalises its financials for the second half of 2014. The word is that the airline is poised for a record six monthly profit. It had announced a US$8.7 million profit for the first half of 2014.

Across the region, at least eight airlines acquired new or refurbished airline to their fleet. Aircalin got its second A320 in August while Air Tahiti, Air Vanuatu and Fiji Link (formerly Pacific Sun, Fiji’s domestic and regional airline and a subsidiary of Fiji Airways) got new additions to their ATR 42 or 72 fleet.

2014 also saw Air Nauru got its name back from Our Airlines. It Fiji Link took delivery of its new ATR42-600 this year. Photo Supplied also acquired 2 Boeing 737-300, one to replace its original passenger plane and the other to be a cargo aircraft. Samoa’s national Polynesian airline gestion, and the matter quickly escalated to took delivery of its 3rd 18-seat Twin Otter the banning of its proposed Saturday flight plane, and REALTonga acquired the first of into Honiara and IE being banned from flytwo BAe Jetstream 32 aircraft on lease from ing into Nadi.

Australia. Northern Air – Fiji’s privately Both airlines are members of the Associaowned domestic operator – has started flying tion of South Pacific Airlines, although it’s Embraer Banderainte planes to complement not clear whether this air dispute is on the its fleet workhorse, the BN2A Islander. agenda of the Association’s meeting in Nadi

Parties hope for resolution soon

By Samisoni Pareti time slots fight between solomon Airlines and Fiji Airways jolted an otherwise normally routine year for aviation in the Pacific.

This dispute may not continue for long however. With elections in both countries now over, there is hope that the matter will be resolved soon. At the crux of the fight is Fiji Airways’ decision to mount its second weekly flight to Honiara from Nadi on Saturday, complementing its Tuesday flights. Solomon Islands’ civil aviation authority welcomed the second flight, but asked the Fiji airline to consider another day, noting that Honiara currently takes two flights from Nadi on that day; its very own Solomon Airlines and that of its western neighbour, Air Niugini.

Fiji Airways reportedly refused the sug-

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Islands Business, December 2014

Aviation/Tourism

Marshalls goes for top dollar Tourism, airports key to island plan

By Samisoni Pareti Marshall Islands’ revived investment agency is in search for new money aimed at boosting the island economy, its ailing aviation and tourism industries in particular.

Chief Executive Officer of Marshalls’ Office of Commerce and Investment Ravuni Uluilakeba is spearheading the search. RMI poached him from Investment Fiji where he was CEO for several years.

In an interview with this magazine during a recent tour of Fiji, Uluilakeba said OCI has set the target of seeking US$100 to $150 million. This money he said would be enough to kickstart many investment opportunities

30 Islands Business, December 2014

cargo. With its current fleet, it takes a government boat up to three months to make a round trip, something Uluilakeba wantsto reduce to a month. “ We ’ r e t a l k ing to all potential financiers and donors,” he said.

“At least two overseas financiers are keenly interested, and we have also been in touch with the World Bank, the ADB and the Marshalls’ Office for Commerce & Investment is planning several investment proposals UNDP. Already, to boost the island’s tourism industry. Photo David Kirkland we have secured the assistance of in this northern Pacific island economy. This experts from Mauritius to help identify gaps includes a $20- $30 million extension of Main our investment processes. juro International Airport, as well as urgent “We want to make it easier for investors to upgrade of airstrips in the outer islands. Such do business in the Marshall Islands including an exercise, Uluilakeba said should take 12 making OCI a real ‘one stop shop.’ In the to 24 months to complete. past, up to 27 public agencies needed to be “In recent years, tourist numbers into the involved for any new investment, so we’re Marshalls has been quite low,” Uluilakeba streamlining that and upgrading it from a told Islands Busimanual to an electronic processing system.” ness. “By injecting Areas of discussions with potential finanfresh money into ciers have been the need for a guarantee from both the airport in the government of Marshall Islands, and a the capital and upgood interest rate. In addition to potential grading those in the investment in aviation, tourism and shipislands, we hope to ping, another sector Uluilakeba’s team is revitalise this iminterested in is the coconut industry. This portant industry.” sector contributes up to 30 per cent of the OCI has also island’s gross domestic product, and the been in talks with OCI has been in talks with the Fiji-based the School of Hosmanufacturer of high-end furniture made pitality of the Fiji from coconut palms, Pacific Green about the National Universipotential of setting up business in Majuro. ty. Uluilakeba said The fisheries sector also holds a lot of the training of hotel promise, and a possible partnership with the workers as well as government’s fishing company is also on the seafarers under the cards. In particular OCI wants to look into FNU’s School of purchasing two large purse seiners. These Maritime is also in are huge fishing boats that tend to fish in the ‘to do’ list of his international waters and a purse seiner could office. cost up to $18 million. Uluilakeba said they Getting into are looking at a return on investment of $7 joint ventures with to $8 million per boat per year. the government’s Fresh water is precious commodity in the shipping company Marshalls. The head of OCI said his office is also under conhas resurrected a water mining project that sideration. Acquirwas proposed some years ago by an American ing three more hydrologist. freighters would “The report of this hydrologist states that greatly improve Majuro was sitting on a huge water table that island travel and could meet the capital’s water needs as well as and movement of mining water for exports,” said Uluilakeba.

Aviation/Tourism

Fiji’s tourist numbers soar Strong growth in China, India markets

By Samisoni Pareti strong growth in the emerging source markets of China and India should see increases in tourist numbers in Fiji in the new year.

That’s the prediction of Tourism Fiji’s 2015 marketing plan at its reveal before industry players last October.

TF’s acting CEO Ken Freer says total visit arrivals in the new year is projected to be 714,000, a five per cent increase from the projected 2014 figure. While the Reserve Bank of Fiji estimated tourist arrivals this year would reach 675,000, Freer says they hope to surpass this projection by end of this month.

Tourist arrivals of 680,000 are now possible, Freer told tourism stakeholders.

To the 12 months to September 2014, visitor arrivals stood at 678,527. All the country’s major source markets saw growth in this period, mainly Australia, New Zealand, North America, China, South Korea and

Continental Europe. Declines were recorded in the markets of Canada and the UK. China and New Zealand – due to increase flight frequency next year by the national airline Fiji Airways – could drive up the 2015 arrival figures.

Tourism Fiji according to Freer is also seeking to use length of stay to measure the impact of tourists in Fiji’s economy.

This he said is a better and more realistic measurement since the longer tourists stay in the country, the more spending they would make. No such data is available to the tourism body beyond 2013.

“Our marketing plan for 2015 would focus on avoiding waste and maximising return,” said Freer. “This we will apply both in our core (Australia, New Zealand and North America) markets, as well as in our emerging markets (China, India and Russia).”

The opening of a Tourism Fiji office in Shanghai, China, will boost Fiji’s presence in the outbound travel market, and a lot of

emphasis will be directed towards market research. Part of the strategy is to move away from traditional advertising to more of public relations.

More and more, Tourism Fiji will invite overseas-based travel writers on media familiarisation tours of Fiji, instead of buying ad space in mainstream newspapers or airtime on television.

On Fiji Tourism’s marketing slogan – ‘Fijiwhere happiness finds you,’ the challenge for 2015 is to ensure tourists meet happiness in the four main areas of place, people, experience and connection.

In the seminars that followed the unveiling of Tourism Fiji’s marketing plan, some industry players in Fiji raised their concerns about high airfares and plane seat availability.

Australia was highlighted as a case in point; its still cheaper for Australians to fly to Bali than Fiji. All Nadi-bound airlines from Sydney, Brisbane and Melbourne are also said to be full to capacity in most cases, with some stakeholders expressing the hope that Australia will review the weekly quota of Fiji bound air travellers as provided for under the air services agreement of the two countries.

Outgoing Managing Director and CEO of Fiji Airways Stefan Pichler discounted the concerns, saying airfares out of Australia were seasonal.

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Climate

High hopes for Pacific but hard work still required

change negotiation process.

In a statement read in his absence, Ratu Inoke Kubuabola, Fiji’s Minister for Foreign Affairs, warned the meeting, ‘Climate change could derail all of our development efforts if actions are not taken now to stem the increase in greenhouse gas emissions and also prepare for the inevitable consequences. We look forward to France’s leadership in ensuring a meaningful, legally binding, climate agreecent higher than they were when Kyoto was ment that involves all countries.’

By Sean Hobbs* signed,’ he said.

Addressing the meeting, Enele Sopoaga, President Hollande saw light at the end of M onday 19 N ovember saw a P acific Prime Minister of Tuvalu, said: ‘We must the tunnel. France will chair the upcoming High-Level Dialogue on climate change take come out of Paris with a comprehensive COP 21 and he is determined to achieve a place at the Secretariat of the Pacific Comagreement. I believe the momentum is robust outcome. Speaking in Noumea, he munity (SPC) headquarters in Noumea, there and it’s a matter of sustaining that said, ‘I am here because the situation is urgent New Caledonia. The principal guest was momentum… an agreement for Small Island and we must be successful, this is an appeal Francoise Hollande, President of France, Developing States that [contains] loss and for mobilisation that I am launching.’ who attended the dialogue to discuss the damage provisions, strong insurance faciliAnote Tong, President of Kiribati, was pressing issue of climate change with leaders ties, particularly to help protect vulnerable unequivocal in his call for continued global from the Cook Islands, Kiribati, Niue, New countries like Tuvalu. That’s the message we action. Speaking on behalf of the Pacific Caledonia, French Polynesia, Tuvalu, Vanureally need to focus on.’ atu and other Pacific Speaking to Emnations. ily Moli, SPC PaThe dialogue was cific Way Reporter, an historic occasion outside the official on the road to the meeting proceedcrucially important ings, President Tong Conference of Parties of Kiribati was optito the United Nations mistic that COP 21 Framework Convenwould deliver. tion on Climate Change ‘I think for much to be held in Paris in too long in the past December 2015. Rewe have focused on ferred to as ‘COP 21’ climate change as an this meeting expects environmental issue to see the international and as an economic community commit to issue. It’s always new, legally binding been my focus that targets on reducing climate change is greenhouse gas emisvery much about sions. The importance people… it is going of this process for huto affect the survival manity and for the Paand the future of cific region especially many, many people.

SPC with love ... President Francoise Hollande gets a Pacific art gift from Dr Colin Tukuitonga, DG of the SPC. cannot be understated. From ‘I recall in 2009 Photo Supplied Not one to mince in Copenhagen his words, SPC’s Dicoming away (from rector-General, Colin Tukuitonga, told the COP 15) very disappointed. I believe that leaders, he pledged the support of Pacific gathering in Noumea: ‘COP 21 needs to the situation is very different now and it has Island countries to France in the lead-up to deliver appropriate commitments to support been changing over the years. There has been COP 21. ‘We need a meaningful agreement, developing countries with extreme vulnera gradual but very steady progress towards one that will ensure that our people in this ability and very limited capacity to cope. Failconsensus on the realisation that climate part of the world can be assured that we do ure to do so will basically relegate the Pacific change is a global challenge and needs to be have a future. It is important that the global to oblivion. For us, here, climate change is addressed globally. community will be able to give us that assura very real and very human emerging crisis.

‘I truly believe that there is perhaps almost ance and we do look to France as a leading ‘We must aim for at least a 40 per cent 100 per cent possibility of reaching agreecountry,’ he said. reduction in global emissions by 2030 and ment at the 2015 Paris conference. So I am He added that Pacific nations are willing 80 per cent by 2060 if we are to have any very optimistic.’ But he is quick to add, ‘I to give as much support to France as they hope of containing climate change to manwould give some warning that it’s not over. can in the lead-up to COP 21. He pointed ageable levels. Under the Kyoto Protocol, It is by no means over. There is still quite a to the strength in numbers, with Pacific industrialised nations committed to modest lot of work to be done.’ states among the 39 member Alliance of binding emission reduction targets. But the Small Island States (AOSIS) that is deeply *Sean Hobbs is SPC’s Climate Change Communireality is that global emissions are now 30 per committed to realising a successful climate cations and Information Officer

Light at the end of climate change tunnel

32 Islands Business, December 2014

Energy

Underground project heats up in Vanuatu

• Geothermal electricity is clean renewable energy.

• Geothermal is a base load renewable energy that’s not dependent on the weather (sun).

• Reduced emissions of greenhouse gases of approximately 40,000 tonnes of CO2 a year.

• Employment and investment opportunities.

In May, the Vanuatu Government launched than 70 countries already have some experiBy Tony Wilson the National Energy Road Map and it highence utilising geothermal energy. lights a number of key factors to be addressed Unlike most of the island of Efate in “Currently, electricity from geothermal by government to assure the people of VanuVanuatu, Takara is flat, sparsely vegetated and energy is produced in 24 countries,” he said. atu of a reliable and secure energy future. frankly boring to the eye.

“The United States and the Philippines The key factors included that modern About 50-minutes north east from the have the largest installed capacity of geoenergy sources provided a key platform capital, Port Vila, it was an airstrip for the US thermal power with about 3000 and 1900 for achieving the Government’s vision and military during World War 2, but today it has megawatts (MW), respectively. Iceland and reducing the share of high cost diesel use. nothing special to commend it to anybody El Salvador generate as much as 25 per cent It endorsed the Takara geothermal project until you spot a sign announcing that Takara of their electric power from geothermal as did the World Bank after an individual has hot springs. resources.” assessment.

That clearly hints at thermal activity At present Vanuatu is largely dependent The World Bank’s report underground in the concluded that ‘the geotherarea and it now apmal power from Takara is pears highly likely that the least-cost power supply Takara will become the addition for Efate under a site for Vanuatu’s first broad range of conditions, geothermal project. and would generate net ecoIt is being developed nomic benefits for Vanuatu.

by Geodynamics, an Development of the Takara Australian listed comgeothermal resource should pany and Geoff Ward, therefore be prioritised above their CEO and mandiesel, coconut oil or other aging director, hopes wind or solar energy investthat exploratory drillment.’ ing will take place at Mr Ward said GeodynamTakara by mid-2015. ics is well placed to carry out Mr Ward explained the project and they also have that geothermal elecanother Pacific geothermal tricity is produced project in the Solomons and from steam using hot a licence for Fiji. He said water that is trapped Hot seat ... the geothermal project at Takara on Vanuatu’s Efate island. Photo Tony Wilson in Australia Geodynamics underground. has successfully constructed “Holes are drilled and operated the 1MWe Haone to two kilometres banero Pilot Plant in central Australia with on diesel generated electricity, meaning it deep to reach the hot water reservoir and multiple wells drilled to over 4000m. has some of the most expensive electricity bring it to the surface,” he said.

“Our aim in the Pacific is to replace high in the world.

“This powerful resource is then used to cost diesel power supplies with cheaper, Vanuatu is heavily reliant on this expensive turn a turbine that produces electricity. The cleaner and more reliable power through imported oil – importing 15 million litres hot water is later returned to the reservoir geothermal,” he said. a year to generate electricity. Vanuatu was deep underground.”

In January 2013 the Vanuatu government ranked the most vulnerable Pacific Island He said the use of geothermal steam for issued a 30 year exclusive production licence country on the Oil Price Vulnerability Index electricity production began in the early 20th to develop geothermal electricity at Takara, in in 2007. century, with the first experimental installalocations identified by the company during Mr Ward said one of the key benefits of tion built in Larderello, Italy, in 1904. the early exploration phase of the project. geothermal energy for Vanuatu would be to “As of 2011, about 11 gigawatts (GW) of Mr Ward said if everything went according reduce the dependency on imported oil and geothermal power capacity has been built to plan there should be a commercial georising world oil prices. around the world, most of it in the last three thermal operation by 2017.

“It would also reduce the volatility of the decades,” he said. “However, electricity It will be worth the wait for those living electricity price and importantly, reduce the generated from geothermal sources still only in Vanuatu as it could see electricity costs cost of electricity which has become a major represents 0.3 per cent of the world’s total reduced by as much as 10 to 20 per cent, and barrier to development in Vanuatu,” he said. power generation.” that certainly puts an entirely new spin on He said there were numerous benefits He said geothermal resources have been getting into hot water. from geothermal energy including:identified in nearly 90 countries and more

Renewable, clean energy for islands

Islands Business, December 2014 33

Viewpoint

Recast Regionalism: lofty ideals sink to the bottom of the ocean By Maureen Penjueli

T

he annual Forum numerous international law norms such as The assumption and assertion that there leaders meeting in the Precautionary Principle, and the right to will be minimal impact or even outright Palau this year reFree and Prior Informed Consent. negligible impact is disingenuous. The leased the Palau Oceans Declaration titled: The rationale pushed by EU-SOPAC reality is that seabed mining will result in “The Ocean: Life and Future: Charting a course DSM project is that because seabed mining destruction and will have consequences that to sustainability.” The declaration outlines operations will occur “far offshore,” on-land are yet unforeseen. The real question is what lofty ideals about our ocean home, the many impacts, will be ‘minimal’ if not outright ‘nelevel of destruction our governments are threats that are faced by our ocean and also gligible’ thus any social impacts are likewise willing to sacrifice in return for the perceived provides the justification for the exploitation ‘minimal’ if not ‘negligible.’ The fact is that economic benefits. of our ocean resources under the disguise of no one knows because there is very little real The Oceans Declaration unfortunately sustainable management. scientific information. However the Project’s supports the EU-SOPAC DSM project For too long we have treated Forum comrationale, lacking any substantial scientific rationale and therefore has given political muniqué and declarations with little regard backing, has become the policy basis for the legitimacy to the industry to rape and plunbecause we regarded them as not legally deliberate weakening of the interpretation der the ocean floor of its wealth by delibbinding and in many cases irrelevant. Unof the Precautionary Principle and mandaerately weakening any efforts to regulate fortunately these declarations and commutory requirements of EIA’s so that it should this industry. Member states “are called niqués have a way of coming back to haunt be applied, “only where appropriate and to ensure that, where appropriate, effective us because these documents give at least the necessary.” environmental impact assessments (EIAs) impressions of political legitimacy are undertaken and incorporated into which in turn bestows a mandate. approval processes for any extractive Naturally funding from developed activities in the Pacific. ….. and where partners follows mandate. necessary, the precautionary principle The real winners are those that is applied.” understand how to manipulate the This is the complete opposite to Forum decision making process – what is happening in New Zealand member states, technical agencies and the Northern Territory Governas well as NGOs have from time to ment of Australia, two of the Forum’s time used Forum processes to give most developed jurisdictions on the legitimacy to their different causes. issue of seabed mining. The recent In the past we have seen how AusNZ Environment Protection Autralia successfully used a Forum thority ruling on the Trans-Tasman communiqué to justify the launch proposal and the Government of of the controversial PACER + neNorthern Territory of Australia’s ban gotiations without the consent of on seabed mining are two examples the Pacific islands parliaments, the that Pacific island governments must national democratic institutions. take notice of in terms of the applicaHistorically Australia has used tion of the precautionary principle, as Forum communiqué to secure well as the Free and Prior Informed compromised language on climate Seabed mining contravenes numerous international laws, says NGOs. Photo file consent of indigenous peoples in change despite the resistance and relation to seabed mining. anger of small island states.

Pacific NGO’s have argued that This year the real winner is the seabed On the Free, Prior and Informed Consent seabed mining activities in particular require mining industry under cover of the EU(FPIC), the EU-SOPAC DSM position the strict application of the precautionary SOPAC Deep Sea Mining (DSM) project. states that while it remains important for principle given that little to nothing is known Technical agencies such as SOPAC and in Government to inform its people of policy about either the exigencies of seafloor mining particular the EU-SOPAC DSM project have decisions that will affect common national technologies or of the impact on the natural been working to ensure that their project heritage (such as finite natural resources) and human environment, near or far. In secures the highest political mandate from and to consult appropriately before taking short, the unprecedented degree of scientific Forum leaders meeting precisely because decisions that have significant environmental uncertainty surrounding the deep sea and its this is a highly controversial project with implications, concepts such as ‘free, prior and exploitation warrants a strict application of significant public resistance with calls to ban informed consent’ or ‘relocation’ are not clearly or the precautionary principle. seabed mining. directly applicable to DSM developments.”

The incoming Secretary General Meg Non Government Organisations (NGOs) In addition the position has been used to Taylor certainly has her work cut out if she argue that the EU-SOPAC DSM project sets further deny that member states have a is to steer the Forum in the right direction out a number of dubious and unfounded asresponsibility to get the FPIC of the custom and live up to its stewardship role of our sertions about seabed mining that contravene land owners of the Pacific. great Ocean.

34 Islands Business, December 2014

Environment

Project turns waste into potential revenue By David Sheppard

W

hat do syringes and televisions have in common? Both become ‘hazardous waste’ when their useful life is over. That is, potentially dangerous or harmful to health or the environment if not properly managed.

Hazardous wastes can pollute water and soil, accumulate in food crops and fish, and workers required to handle them can also be exposed to infectious and toxic substances if they are not correctly trained and equipped.

Improved management of hazardous waste: healthcare waste, asbestos, and Ewastes have been identified by the Pacific islands as priority issues. SPREP has responded accordingly through a partnership with the European Union and associated funding from the 10th European Union deveopment Fund for the PacWaste project. The Pacific Hazardous Waste project or ‘PacWaste’ is a €7.85m project that will run over four years until 2018. This project will help improve hazardous waste management in the Pacific region through: Assessment of the regional (and national) status of hazardous waste to prioritise improved management options; Implementation of best available hazardous waste management practices in Pacific island countries; Enhancement of policies and regulatory frameworks to increase local hazardous waste management capacity; and Improvement in regional collaboration and information exchange on hazardous waste management practices between and within Pacific Island Countries and Territories.

The first year of PacWaste has focused on regional hazardous waste assessments, with regional baseline surveys completed on the status of E-waste management across nine participating countries; healthcare waste surveys completed across 42 hospitals in 15 participating countries including Timor Leste; and assessment of the status of integrated waste management at a regional atoll waste management demonstration sitelocated in Majuro, Republic of Marshall Islands.

E-waste includes electrical equipment at the end of its useful - mobile phones, laptops, refrigerators, televisions, batteries, and many others. In the Pacific it is often treated as solid waste and disposed of to landfill or simply illegally dumped. In both cases,

a range of toxic substances can be released into the environment, contaminating soil, water and food.

Many of these obsolete electrical and electronic items contain valuable components such as copper, silver, steel and gold that can be recovered and reused in new products. When an E-waste recycling system is implemented, the collection of E-waste and its safe dismantling and recovery of valuable materials for reuse or recycling can become a potentially financially successful enterprise for Pacific island countries.

Some countries already have E-waste management practices in place. Palau has an electrical repair sector, recycling companies, and a community college that trains technicians.

Vanuatu has a private company successfully recycling E-waste to E-scrap and Kiribati and Tonga are poised to export their first E-scrap consignments for recycling.

In the summary report of the PacWaste E-waste Baseline Survey for Fiji, Marshall Islands, Palau, Solomon Islands and Vanuatu, E-waste management solutions offered often utilise existing local private sector businesses to help strengthen in-country recycling capacity. PacWaste is seeking to promote and enhance this powerful combination of existing national private sector services by targeting the ‘gaps’ to better connectionof all E-waste management services. The gaps to be addressed by the PacWaste programme include infrastructure to improve E-waste collection points, E-waste dismantling training, support to export dismantled E-waste and identification of in-country partnerships to maintain E-waste recycling practices over the longer-term to create a safe and sustainable E-waste recycling solution for Pacific island nations.

A number of these PacWaste interventions will also be supported by public awareness campaigns to help involve the whole community in managing E-waste in a safe and efficient manner.

While obviously very different to E-waste, Pacific islands must also address the challenge of dealing with waste produced by hospitals and healthcare clinics. Some of this ‘healthcare’ waste contains blood contaminated products and dressings, amputated body parts, cultures and swabs, laboratory chemicals, syringes and needles, and expired or unused pharmaceutical products.

The risk associated with such hazardous

healthcare waste includes injuries and infections to people as well as environmental contamination.

Appropriate healthcare waste management starts with the correct separation of all hospital waste. The PacWaste healthcare waste baseline survey found that of 42 surveyed hospitals, less than half correctly used colour coded bins to separate general and hazardous waste. The survey also found that only half of the surveyed hospitals had appropriate bins and containers to store and transport hazardous healthcare waste before final treatment and disposal. The survey also found that only 22 hospitals had adequate supplies of Personal Protective Equipment such as gloves, boots and masks to prevent exposure to, and injury from the hazardous healthcare waste to hospital workers.

The PacWaste project identified a range of potential treatment options for healthcare waste including incineration, autoclaving and shredding, microwave treatment and chemical treatment.

However, high temperature incineration was identified as the preferred disposalmethod by the PacWaste baseline study as high temperature incineration removes all infectious components, treats sharps and destroys pharmaceuticals. Further, it is a relatively simple and inexpensive option, which can immediately replace current unacceptable hazardous practices. High temperature incineration also reduces the total concentrations of dioxins and furansthe products of incomplete combustion that are otherwise released to the atmosphere through the inappropriate low temperature burning of healthcare waste.

Of the 42 surveyed hospitals, 28 hospitals burn their healthcare waste, eight hospitals disposed their healthcare waste at an engineered landfill, four disposed of it at an open dump and three buried their waste in the hospital grounds. However, only 13 of these hospitals were using high temperature incinerators operating at over 1000oC. Disposing hazardous healthcare waste in landfill without treatment is an unacceptable option for Pacific islands.

As PacWaste moves into its second year, SPREP’s on-going partnership with the European Union and commitment from participating Pacific island countries remains fundamental to improving regional hazardous waste management.

Islands Business, December 2014 35

Business Intelligence

FAD with sonar poses “game-changer” i

By Samisoni Pareti

T

he introduction of sonar capable satellite buoys that are attached to FADs (Fish Aggregating Device) is poised to be a “game changer” in the Pacific’s lucrative skipjack tuna fishery with indications that it may change the way the skipjack fishery is managed and how the much acclaimed Vessel Day Scheme (VDS) is implemented in future.

As currently implemented by the eight member countries of the Parties of the Nauru Agreement (PNA) and Tokelau, the VDS puts a cap on the number of fishing days made available to fish tuna in the waters of PNA member countries. These are namely domestic boats and those from the European Union, United States, China, Japan, South Korea, Philippines, and Taiwan.

Through the introduction of VDS, fishing effort has been limited, and tuna revenue for island nations has more than quadrupled over the last four to five years; from US$60 million in 2010 to about US$300 million today. At its inception, one fishing day was snapped up for between US$500 to $2500. Today, some PNA countries are selling theirs from between US$10,000 to over $12,000 a day,

with a minimum price of $8000 in 2015.

Now an adjustment to the VDS may have to be considered with the recent introduction of sonar technology into FADs. Until now, fishing boats especially the gigantic purse seiners have been using FADS to make fishing more efficient. Fish tend to aggregate around these devices, which can either be anchored to the ocean floor, or more commonly drift freely. All a purse seiner needs

to do is to steam to a floating FAD it had deployed weeks or months earlier to check on schools of tuna present. Prior to satellite tracking, less than 10 FADs could be managed, with satellite that went to up to 100, but still there was no guarantee that the FAD

had attracted tuna.

Today, this new technology sees up to 700 FADs per boat deployed and increasingly monitored remotely, with only FADs with the big tuna aggregations targeted. Through data transmitted in real time to FAD owners, the transmission gives an indication of the amount of tuna under each FAD and even the types and sizes of the fish. Using this information, the boat is directed to target the most productive FADs only, avoiding the unproductive ones. Daily catches of boats are as a consequence potentially escalating and in the words of experts, a huge game changer as traditional fishing becomes more like farming and the harvest akin to “cherry picking” the tuna schools.

PNA Office Commercial Manager, Maurice Brownjohn believes the huge impact of sonar buoys attached to FADs on tuna fishing would trigger a possible “adjustment” factor in the VDS. He also believes that instead of banning FADs altogether in PNA waters, the fishery should exploit the potential of tracking and limiting FADs in a managed and more sustainable way. Besides fisheries management and compliance, the buoys offer a “raft” of other data including information about ocean temperature and

SPC Fiji base to be gifted with US$28m Pacific

By Samisoni Pareti

B

y the first quarter of 2015, the Secretariat of the Pacific Community (SPC) hopes the construction of its new base in Fiji would have started.

Green light for this has been granted by the host government, and in keeping with the host of regional organisation arrangements, Fiji will fund the entire project.

Cost of the Pacific Village is estimated at US$27.71 million.

“Currently our offices in Suva are spread out in 7 different locations,” said Dr Colin Tukuitonga, Director-General of the SPC.

36 Islands Business, December 2014

“Through the Pacific Village, we will all come to one central place, which was something we had been wanting all along.”

The Pacific Village will be built at Nabua, where bulk of SPC’s work in Fiji is located.

Artist impressions of the Village show a series of office buildings with a distinct Pacific architecture.

Staff at SPC Nabua will have to be relocated to other offices to allow for the demolition of the current buildings, some of which were built for Allied troops in World War II. Additional land will have to be sought from a local secondary school that is neighbour to the SPC Nabua office.

Also for the new year, Dr Tukuitonga hopes to continue the changes he has started in the workings of the Commission. One of these is moving away from short-term project-funding to longer term programme financing. Australia has already signed into these programme funding, said Dr Tukuitonga and New Zealand and the European Union might do so too in 2015.

The SPC is also exploring new funding, including those in the Arab peninsula.

The new year will also see the possible inclusion of Timor Leste as the 27th member of the organisation. No objections on its application to join as a full member has been

n tuna fishery currents as well important data on fish species and sizes and when linked to actual catch, the region learns the real dynamics of the fishery based on what is their only renewable resource.

“Through a requirement for industry to mandatory register and share tracking data for all of their FADs, PNA countries can match the data with the catch these purse seiners make on a day,” said Brownjohn.

He said “until recently, there were about 30,000 drifting FADs in the central and western Pacific, but indications are that this number has mushroomed to about 80,000, although not all of these are attached to sonar technology.”

Traditionally, FADs have not been popular in fishery conservation and management circles. By-catches of FADs tend to include juvenile tuna, the over-fished bigeye tuna especially. It is for this reason that PNA introduced periodic closures of the use of FADs in its waters annually, and there have been some attempts to extend the periodic ban on FADs into the high seas. While such closures help in conserving bigeye tuna stocks, foreign boats (Spain, Ecuador, El Salvador, USA, New Zealand, Philippines, Japan, Taiwan, Vanuatu, China, Korea) fishing in the high seas for sashimi bigeye tuna however has shown no willingness to conserve the fishery. The other downside for our region is that FAD closures reduce overall tuna catches and further presents a potential disproportionate economic burden on island countries.

Village received and Timor Leste can now proceed to its own parliament to formalise its SPC membership.

NCD will continue to feature prominently in SPC work in the new year, this magazine has been told. The head of the SPC said they are planning a High Level Dialogue on NCD in 2015, similar to the HLD on Climate Change, which French President Francois Hollande attended at the main headquarters of the SPC in Noumea last November.

Meanwhile Niue, home island of Dr Tukuitonga is to host the 2015’s general conference of the SPC.

Roads, water, education clear winners in Fiji’s US$1.7b Budget

By Samisoni Pareti

F

iji’s government of Frank Bainimarama is continuing with its expansionary economic policy in the $3.3 billion (US$1.69 billion) budget for 2015 it handed down in Fiji’s Parliament on November 21st.

Its capital budget of U$S687m makes up 41 per cent of the total budget. More roads and bridges will be upgraded or constructed and more people will be connected to the water mains. Investment on infrastructure has been the hallmark of the Bainimarama administration in the past seven years.

This expansionary economic strategy has inflated the country’s debt to record levels.

From a debt of little more than US$1.4b when it took over power in 2006, public debt has mushroomed to US$2.086b by 2014.

This represents 48.3 per cent of GDP, one of the largest in the region. Comparably, PNG claims a 35.5 per cent ratio and Australia, 16.6 per cent.

Heavy spending on capital works should help grow the island economy, the Fijian Government said. It is giving itself a 4 per

cent growth rate for 2015, a bit slower though from the 4.2 per cent growth rate estimated for 2014.

Total revenue is projected at US$1.58b, with net deficit projected at 2.5 per cent of Gross Domestic Product. Bulk of the revenue will be generated from indirect taxation with valued added tax expected to raise US$419m, or 68.9 per cent of projected operating revenue. The country’s foreign reserves is said to be healthy, currently at US$938m, enough to cover 4.6 months of imports.

Consumers of alcohol and tobacco will dig deeper into their pockets as import and excise duties on these copped a 10 to 20 per cent increase for the new year. Patrons of nightclubs and large restaurants will also have to pay service turnover tax from 2015.

Tax amnesties formed part of Fiji’s national budget targeting undeclared overseas assets as well as repayments of tax liabilities both for individuals and companies. Sale of Airports Fiji Limited will be finalised in the new year as well as the corporatisation of the country’s electricity and seaport utilities.

Islands Business, December 2014 37

TRADE MARK CAUTIONARY NOTICE IN NAURU Notice is hereby given that the companies listed below, each of 3-5-7, rue Francois Dussaud, 1211 GENEVE 26, Switzerland, are the sole proprietors in Nauru and elsewhere of the trade marks listed below under their names:

These trade marks are used in respect of the following goods and services: Jewellery, clock and watchmaking, namely watches, wristwatches, watches and parts thereof, accessories for clock and watchmaking articles; clocks and other chronometric instruments; chronometers, chronographs (clock and watchmaking), apparatuses for timing sports events, apparatuses and instruments to measure and record the time; watch straps; dials (clock and watchmaking); boxes, cases and presentation cases for clock and watchmaking and jewellery; watch movements and parts thereof.

Retail services for clock- and watch-making products and jewellery articles; advertising for buying and sale of clock- and watch-making and of jewellery.

Repair, overhaul, maintenance, and polishing of clock- and watch-making articles and of jewellery articles.

The proprietors claim all rights in respect of the above trade marks and will take all necessary legal steps to protect those rights against any person or company infringing their rights.

Contact: ASHURST AUSTRALIA Level 26, 181 William Street, Melbourne 3000, Victoria, Australia Telephone: +61 3 9679 3000 Fax: +61 3 9679 3111 Email: ashurstMELIP@ashurst.com

PACIFIC ISLANDS FORUM SECRETARIAT

Call for Applications to Conduct an Assessment of the Traderelated Development Assistance Needs and Capacity Constraints of the Forum Island Countries in relation to PACER Plus The Office of the Chief Trade Adviser (OCTA) is seeking to contract a team of suitably qualified and experienced consultants to conduct a baseline assessment of the capacity of Forum Island Countries to implement obligations that may result from a PACER Plus Agreement, as well as an analysis of their broader trade-related development assistance needs and to highlight any capacity constraints that may compromise their ability to derive significant benefits from the Agreement. The consultant will be accountable to the Chief Trade Adviser of the OCTA and will work under the guidance of the Legal Adviser (Trade).

Interested consultants can download the Terms of Reference from the OCTA website at www.octapic.org, or request a copy by email: info@octapic.org.

Detailed technical and financial proposals should accompany applications.

Office of the Chief Trade Adviser Air Vanuatu House | P.O. Box 561 | Port Vila | Vanuatu Tel or Fax: +678 25003 | Email: info@octapic.org | Web: www.octapic.org

TRADE MARK CAUTIONARY NOTICE IN NAURU Notice is hereby given that British American Tobacco (Brands) Limited, a United Kingdom limited liability company of Globe House, 4 Temple Place, London, WC2R 2PG, United Kingdom, is the sole proprietor in Nauru and elsewhere of the following trade mark:

Used in respect of:Cigarettes; tobacco; tobacco products; lighters; matches; smokers’ articles – Class 34 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.

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

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Season’s Greetings Management and staff of Ela and Asco Motors wish you and your family happy holidays and safe travels during this festive seasons.

We would like to thank you for your support during 2014. We look forward to bring you the best of Automotive, Marine, Toyota Genuine Parts and Quality Service 2015.

The Pride of the Pacific Papua New Guinea (675) 3229400 Solomon Islands (677) 30314

American Samoa (684) 6334281 Samoa (685) 20800 Fiji Islands (679) 3384888 Tonga (676) 23500 Vanuatu (678) 22341

Holding Company - Toyota Tsusho South Pacific Holdings Pty Ltd - www.toyota.tsusho.com.au