Ib january 2015

www.lyndenpng.com 1-907-243-7248 2 Islands Business, January 2015

+61 (0) 447 330 095

January

2015

Vol. 41 No. 1

Contents Energy

28 Oil price impacts PNG revenue Investors brace for LNG shock

Sport

29 Netball, rugby to dominate 2015

Environment

30 The Pacific Voyage to Paris

Opinion

31 Islands assert Asia Pacific role

Regular Features THE movement supporting greater self-determination for the people of West Papua is growing and Indonesia has woken up to the fact. Last month Indonesia, which has occupied West Papua since 1960, was forced to write to the Vanuatu government protesting against a meeting of dissidents in Port Vila. But Vanuatu’s Joe Natuman disregarded the diplomatic note—pages 12-16. Cover Photo by: Netani Rika INVICTUS Pictures

4 Editor’s Note 4 Letters 6 Whispers 32 We Say 33 Guest Column 34 Pacific Update

Cover Report

36 Business Intelligence

8 Indonesia puts pressure on Vanuatu

Leaders choose regional solidarity over bully

10 Silent genocide unfolds in Papua

Policy seeks to change population figures forever

11 Betrayal of the highest order

Worid powers turn blind eye to indigenous rights

12 Tears flow freely for lost freedom

Politics

13 Australia resists new-look forum

Former diplomat Tavola draws up regional issues plan

14 Stable times ahead for PNG economy

$19b natural gas exports offset weak cocoa coffee trade

15 French enter rough waters

Territories face difficult economic challenges in the year ahead

16 Vanuatu seeks political stability 17 Marshalls 2015: Year of election

Travel

18 Bit of leisure in business in Apia

Tanoa Tusitala is hotel of choice for many

Bank/Insurance Feature

20 Region expects stable growth 22 Asia is the Pacific’s next big thing 24 Finance and education for future generations

Business

26 EMTV - for sale at what price TV owner under siege in home country Islands Business, January 2015 3

Editor’s Note

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 Sam Vulum

Baeau Tai

Patrick Matbob Peter Niesi Solomon Islands Priestly Habru Alfred Sasako Tonga Taina Kami-Enoka Vanuatu Tony Wilson

Samisoni Pareti Group Editor-in-Chief

From the editor’s desk A new year and a new beginning for many of us, and Islands Business is no exception. You, our faithful readers will notice new features in terms of designs, and content in this, our first edition of 2015. This if course, continues the changes we have gradually introduced in the magazine over the last few months. Our “We Say” column has been placed towards the back of the magazine together with “Pacific Update” and Dev Nadkarni’s Views from Auckland. We’ve also brought in some additional new features like our Travel page and Guest Columnist.

More changes will roll out as the year progresses. Technology will of course be a significant part of these changes, and the new year will give us more time to re-work and re-develop our online presence both through our main www.islandsbusiness.com website, as well as through our social media footprints on Facebook and Twitter. Our intention is to make your favourite regional news magazine both user-and-gadget friendly.

The reasoning behind the changes have come from you, our readers and as a result

of changing technology. Ideas are also being gleaned from data provided through www. islandsbusiness.com. With the help of Google Analytics, we read interesting details like story preferences, professional and educational background, country of residence and subjects that interest you.

As we study what you prefer and work on them, I can assure you that while the changes may see a different look and feel of Islands Business, we will not deviate from the brand of journalism with which the founders of this magazine launched Islands Business magazine some 30 years ago, and that is and remains; the desire to tell the story of our islands with passion, truth, accuracy and boldness.

I hope you like the new approach and your views will always be welcomed and appreciated. Please do drop a line to editor@ ibi.com.fj if you want to share your thoughts and comments.

For the more technologically inclined, please support us by liking the Islands Business page on Facebook and follow us on our official Twitter account @IBIupdate.

L E T T E R S Islands Business is published monthly by Islands Business International Editorial & Advertising Offices Level III, 46 Gordon Street, PO Box 12718, Suva, Fiji Islands.

Tel: +679 330 3108 Fax: +679 330 1423 E-mail: Editorial: editor@ibi.com.fj Subscriptions: subs@ibi.com.fj Advertising: advert@ibi.com.fj Printing: Oceania Printers, Raojibhai Patel Street, Suva, Fiji.

© 2015

Copyright © 2015 Islands Business International Ltd. All rights reserved. No part of this publication may be reproduced without the written permission of the publisher.

www.islandsbusiness.com 4 Islands Business, January 2015

Pacific Person of the Year WHEN you made this choice, did you think of young Sakiusa Rabaka’s family? And all those whose lives have been taken by the will and whim of Frank’s regime without one iota of remorse.

Are you able to overlook all of the electoral irregularities so easily?

How about the Auditor General’s damning reports?

Even after the television cross carriage decree and the media decree that has muzzled our population for so long.

And for the 17 decrees that have seriously eroded our rights, thanks for nothing, vinaka vakalevu but we the indigenous people of Fiji rebuke your choice Islands Business.

BOLD call! Interesting it seems ‘feature prominently’ is one condition for the choice.

That would make a lot of unworthy candidates worthy.

I’m not completely against it by the way I’ve personally spoken to scores of Fijians that would be happy with that choice.

– Jese Sikivou, Suva, Fiji.

– William Waqavakatoga, Suva, Fiji.

– Alex Perrotet, Wellington, NZ

AGREE with Alex Perrottet that it was a bold call however not entirely surprising given his influence in the region even though Mr. Bainimarama can be a polarising figure, though Mr. Anote Tong’s continued efforts on Climate Change would place him right up there also if not ahead.

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Whispers

Another “Pie in the Sky”? So, Australian Foreign Minister Julie Bishop will dialogue with her Pacific neighbours in early this year to plan the Pacific’s new “regional architecture”! Australian news reports suggest Bishop wants Pacific leaders to “chart their own course” but hopes that the planned Sydney summit will “bolster Australia’s influence in the region.”

She has received support for the meeting from Papua New Guinea and Fiji.

Papua New Guinea is now in a position to tell Australia that it is progressing beyond “aid recipient” status to becoming one of Asia’s fastest growing economies - especially now that it is poised for a major energy and resources boom.

Fiji, on the other hand insists its renewed relationship with Australia is not quite the “kiss and make-up” scenario some make it out to be. Fiji still wants Australia’s participation in the Pacific Islands Forum reduced from influential member to donor. The proposed new “regional architecture” should generate some interesting discussion given the fact there is already a “Pacific Plan” in place.

Bishop was quoted as saying Pacific nations were historically prone to influence from countries outside the region which use their aid budgets to win support in United Nations votes. Also interesting was her observation about Australia needing more Pacific investment “... but we must make sure it’s in the interests of the particular Pacific islands, as opposed to some other geopolitical or strategic agenda of another country.”  Nobel Peace Prize Nominee Threatens Media Freedom Word out of Kiribati is that its Nobel Peace Prize nominee,

6 Islands Business, January 2015

President Anote Tong, has told the Kiribati Independent to report government related issues factually or face being shut down.

This follows the newspaper reporting missing Taiwanese aid funding at US$1.3 million instead of the official US$0.5 million.

Accepting the newspaper’s apology Tong said his government retained the right to de-register any newspaper which reports on government unfairly.

The newspaper’s editor Taberannang Korauaba brushed aside the President’s claim that Kiribati Independent was an opposition mouth-piece.

It’s not the first time Tong has had a runin with the Kiribati Independent. Radio New Zealand International reported in May 2012 that the newspaper was ordered to halt operations in what RNZI interpreted as “an attempt to muzzle a small publication that has caused embarrassment for the government.”  Fiji’s Main Opposition Party in hot water Fiji’s main opposition party has been consistently rocking the government boat at every opportunity since getting into Parliament in the last quarter of 2014.

So, it’s probably not surprising that the Party leader, a lady paramount chief, survived turbulent waters herself when faced recently with stormy weather from within her party ranks. It’s been whispered that an unsuccessful attempt was made to remove her as Party leader because she was “too reflective” of former Party leader and 2006 ousted Prime Minister, Laisenia Qarase. Apparently, the move also followed dissatisfaction over the final list of party candidates who contested Fiji’s September 2014 General Election. The whisper is that the list was changed without

the leader’s consent at the eleventh hour and at the expense of new and younger faces.  Niue/PNG establish diplomatic ties Papua New Guinea and Niue have established diplomatic relations following Premier Toke Talagi’s State visit to PNG in December. Premier Talagi said it was important for Pacific countries to establish diplomatic ties amongst themselves, as well as with larger and more developed countries.

The two countries have agreed to mutually provide each other with all necessary assistance for the performance of the functions of their diplomatic representatives on the basis of equality, mutual benefit and reciprocity in accordance with international practice.

Meanwhile, Whispers in Waigani says the Pacific Way is very much alive between PNG and Samoa. Apparently, Prime Minister O’Neill is said to have been assured by his Samoan colleague that Samoa would garner Polynesian support for PNG’s nominee for the position of Secretary General at the Pacific Islands Forum Secretariat. It now appears that in return, PNG assisted Samoa in its hosting of the UN SIDS conference in September!  Outdated laws close Cook Islands restaurants Local restaurants in the Cook Islands had to close their doors to customers on Christmas Day because of what they say are outdated laws.

Under the Cook Islands’ Liquor Licensing Act 1991/1992 only hotels which offer accommodation to guests can open on Christmas Day and Good Friday. So establishments like Muri Beach Club Hotel and Nautilus Resort

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

Rugby ... more than a sport Despite World Rugby insisting on a separation between rugby the sport and politics, the organisation has had to “scrum” with the political leaders of two Pacific rugby-playing nations in recent times.

In the first case, a Fiji government decree mandating cross media (television) coverage of international sports events, including rugby, was “sin-binned” by World Rugby when it prevented Fiji Television (Fiji TV) from sharing coverage of the Dubai International Sevens competition with Fiji’s government-owned television station, FBCTV. After telling the Fiji Government that it could not dictate World Rugby’s international rugby television broadcast rights, the organisation “drop-kicked” the obvious by reminding Fiji that its laws were only applicable within the country’s own jurisdiction!

At the final whistle, the Fiji government agreed to play by the rules of the game and Fiji TV was allowed to sub-contract its World Rugby-granted broadcast rights to FBCTV – just in time to appease growing disquiet among Fiji’s rugby-sevens-mad population!

Not to be outdone, Samoa’s Prime Minister Tuilaepa Sailele Malielegaoi, who also happens to be Chairman of the Samoa Rugby Union, donned his country colours to “face-off” with World Rugby Chairman, Bernard Lapasset, in Brussels in December. Issues discussed focused around allowance payments for Manu Samoa players. opened for business even to locals seeking a Christmas lunch out.

According to the country’s Liquor Licensing Officer, Harriet Williams, despite talk over the years to amend the relevant laws, nothing has so far been done.

unnoticed. The UNDOF position of Chief of Staff was given to Fiji’s former Land Force Commander, Colonel Ratu Jone Kalouniwai, resulting in the promotion to the rank of Colonel for his successor, Sitiveni Qiliho. 

 Fiji lobbying for UNDOF Commander falls short Fiji had to settle for third place in the United Nations Disengagement Observer Force (UNDOF) hierarchy in the Golan Heights.

The country had submitted the name of its Ambassador at Large and former Police Chief, Iowane Naivalurua, for the UNDOF Commander position which was held by an Indian national.

Strong lobbying by Fiji’s mission to the UN in New York was insufficient. However, Fiji’s peace –keeping reputation did not go

PNG flagged ships get Indonesian treatment Indonesia has defended its policy of destroying foreign vessels found fishing illegally in Indonesian waters.

Two ships, the Century IV and Century VII were PNG-flagged fishing vessels crewed by Thai nationals were destroyed in December after being caught fishing illegally in waters bordering Papua New Guinea and Indonesiancontrolled West Papua.

• Whispers is compiled by the Editor.

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

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Islands Business, January 2015 7

Cover Report

Leaders choose regional solidarity over bully

INDONESIA PUTS

PRESSURE

ON VANUATU

I

by Netani Rika*

NDONESIA attempted to derail unification talks between West Papuan dissident groups by forcing hosts Vanuatu into a diplomatic impasse.

But instead of bowing to pressure, Prime Minister Joe Natuman led a crowd of ni-Vanuatu on a march through the capital Port Vila in support of self-determination in West Papua.

A long-time advocate of freedom in the Indonesian-held territory, Vanuatu agreed to host a meeting of West Papuan freedom advocates who want a permanent seat on the Melanesian Spearhead Group.

Indonesia has observer status and last year pressured members to refuse West Papua a place unless dissident groups were represented by a single entity and voice.

With the Pacific Conference of Churches, Vanuatu’s chiefs and religious leaders organised a conference in Port Vila to allow the groups to discuss and set aside their differences. Its bluff called, Indonesia realised that the summit could have an unwelcome outcome – West Papuan delegates in the MSG as full members and the Indonesian delegation mere observers.

On November 28 Indonesia’s Canberra Embassy sent a diplomatic note to Vanuatu’s Ministry of Foreign Affairs to express its dismay at the impending talks: “The Embassy of the Republic of Indonesia presents its compliments to the Ministry of Foreign Affairs, International Cooperation and External Trade of the Republic of Vanuatu and 8 Islands Business, January 2015

has the honor to convey its deepest concern over the plan of holding a conference on Papua in Port Vila in early December 2014.

The conference only serves as a platform for politically-motivated individuals and groups and clearly does not represent the wishes of the majority of Papuans who are now focusing on accelerating the development in the Provinces within the Unitary State of the Republic of Indonesia.

“This activity and any support of it will potentially affect the bilateral relations between Indonesia and Vanuatu. In this regard, the Government of Indonesia requests that the Government of the Republic of Vanuatu takes this matter seriously.

“The Embassy of the Republic of Indonesia avails itself of this opportunity to renew to the Ministry of Foreign Affairs, International Cooperation and External Trade of the Republic of Vanuatu the assurances of its highest consideration.”

But Vanuatu went ahead with the summit and five days later the heads of three major West Papuan democracy groups had signed an accord agreeing to work together towards independence.

Known as the Saralana Declaration on West Papua Unity, the accord is countersigned by the Federal Republic of West Papua (NRFPB), West Papua National Parliament (WPNP/New Guinea Raad) and the West Papua National Coalition for Liberation (WPNCL).

While the groups and their affiliates will work independently on the ground in West Papua and Indonesia, their international presence will be unified.

In this way they hope to present a single voice as the United Liberation Movement for West Papua (ULMWP) on self-determination at regional and international forums.

“We are determined that the ULMWP becomes the coordinating body to support all international efforts to regain our sovereignty,” their statement after the Port Vila meeting said.

“In order to support this we have formed a secretariat of five people (who) represent the three largest resistance organisations and also non-affiliated resistance organisations that support our struggle.

“We will maintain our existing organizations but commit to be united by the coordinating efforts of the ULMWP. The Pacific Conference of Churches which has supported the West Papuan struggle since 1961 welcomed the unification move.

“This is a good sign. Melanesian Spearhead Group countries wanted a unified West Papuan voice and here it is. Now the ball is in the MSG court,” said PCC General Secretary, Reverend Francois Pihaatae.

“We hope that good sense prevails and that the MSG members honour their agreement to accept West Papua into this sub-regional group.

“And we look forward to an opportunity for all the parties to enter into meaningful and sincere dialogue on self-determination for a people who have waited 50 years for freedom.

“It is important for Pacific governments to realise that there can be no true freedom in the region until all our people are free.”

Pihaatae praised Vanuatu’s government,

PEACEFUL protest ... civil society activists gather near the Indonesian Embassy in Suva to suport freedom in West Papua. Photo: INVICTUS PICTURES

chiefs and churches for standing firm in the face of Indonesia’s aggressive stance.

“There was no need for Indonesia to try to stop the meeting,” Pihaatae said.

“They were the ones who convince Pacific leaders to take the stand and now they must deal with it.”

Indonesia has made no statement after the

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Saralana Declaration was signed.

But late last month Indonesian President Joko Widodo started a new attempt to splinter dissident groups.

On a visit to West Papua which had been opposed by the territory’s church leaders, Widodo met some religious representatives.

Widodo said he was willing to open dialogue for a better Papua. This was in addition to previous promises to open up the territory including potentially lifting a ban on foreign journalists and NGOs. Human Rights Watch’s Andreas Harsono told Radio New Zealand Widodo had a challenge on his hands if he opened up Papua, because Jakarta and the military seem to be gripped by a paranoia about the province.

“It is very important for him to rein in the military and tell them; ‘Look, I am in charge here. Your paranoia is groundless. Your paranoia is hurting Indonesia for so many decades,” Harsono said.

For the time being West Papua’s churches freedom fighters appear united. Widodo’s challenge is now on two fronts – unified dissidents on one hand and the military on the other. *The author is communication consultant for Pacific Conference of Churches’s Secretariat.

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Islands Business, January 2015 9

Cover Report

Policy seeks to change population figures forever

NO to genocide ... Papua New Guineans sing at a concert in Madang to raise awareness about West Papua. Photo INVICTUS PICTURES

Silent genocide unfolds in Papua

by Netani Rika IN a neglected region of the Pacific, the world’s latest genocide takes place with an indigenous people being killed and replaced every day of the year.

Earlier this month, five Papuans were arbitrarily shot and killed by Indonesian troops in what was – at the time of printing – the latest violence against innocent civilians.

It took Australia 20 days to comment on the atrocity.

Perhaps this should not be a surprise, given reports that Australian-supplied helicopters were used by the Indonesian military to kill civilians in West Papua in the 1970s.

The allegations were among other abuses detailed in the report, by the Hong Kongbased Asian Human Rights Commission (AHCR), which contains graphic detail of the alleged murder, rape and torture of more than 4000 Papuans by Indonesian military in the late 1970s.

The report named numerous Indonesian military commanders, including the late President, General Suharto, as those responsible for ordering or failing to stop the violence, and says they should be tried by a human rights court.

In the report “The Neglected Genocide Human Rights abuses against Papuans in the Central Highlands, 1977 - 1978” the AHCR 10 Islands Business, January 2015

attempted to document violence that occurred when Indonesia launched several military operations around Wamena, in response to independence uprisings after general elections in 1977.

The AHRC conducted field visits, interviewed witnesses and examined historical records and later claimed that Papuans in the Central Highlands were victims of napalm bombing and indiscriminate shooting from the air, sometimes from aircraft supplied to the Indonesian military by Australia and the US. According to the report two Australiansupplied Iroquois helicopters, along with US-supplied Bell UH-1H Huey helicopters, were used by local command in the attacks.

Other aircraft were also used.

In one reported incident, villagers in the Bolakme area were told they would be receiving aerial aid from Australia, only to be bombed

by American-supplied planes.

Advocates collected the name of 4146 people believed to have been killed by the Indonesian military and claims the total number of victims who died from torture, disease and hunger as a result of the violence could be well over 10,000.

AHCR’s Policy and Programs director, Basil Fernando told Australia Network the acts amount to genocide.

“What those gruesome details show is that there was a humiliating element, to humiliate

the people into submission,” he said.

“So that is the basis - the killings and the other sufferings imposed on the people - and trying to bring them to submission - we have named [this] as genocide.”

Wary of world attention and unable after 40 years to suppress the independence movement within its annexed territory, the Indonesian authorities have taken a more sinister approach to removing the Melanesian problem from its midst.

That this is a slow but sure genocide is not limited to the killing of democracy advocates or militants who operate in the dense jungle.

Indonesian development policy to increase development and provide employment means that it ships thousands of non-Melanesian Javanese to West Papua each year.

Gradually the Javanese population has risen to 1.5million and now matches the number of West Papuans in the territory.

“We estimate that as this trend continues the West Papuans will be outnumbered in their own land by 2030,” an indigenous church leader told Islands Business.

“This is a great injustice, in fact it is genocide – there is no other way to describe it.

“We should not be surprised if at some stage in future Indonesia – with the right numbers in place – calls for a referendum and basically repeats the act which took place in 1969.”

Meanwhile, Pacific Church leaders have called on Indonesia to stop arbitrary violence against the people of West Papua and allow them to decide on their political future.

In a declaration made in Nadi, Fiji last year, representatives of churches in the Cook Islands, Fiji, Maohi Nui (French Polynesia) Niue, Papua New Guinea, Samoa, the Solomon Islands,Tonga, Tuvalu and Vanuatu called on their governments to support selfdetermination in the Indonesian territory.

“Recognising that all people are created free by God, we call on Indonesia to allow the people of Papua take part in a referendum in which they can express their desire to be free,” the declaration said.

“We recognise that this action may lead to a call for independence or autonomy as a territory of Indonesia. The most important factor is that the people of West Papua be allowed to determine their future for themselves without malice or victimisation.

“And we call for an immediate end to violence by the security forces against those who seek freedom.

“At the same time we undertake to call individually and collectively on our governments to hear the cry of the West Papuan people and join us in calling on Indonesia to set their people free.”

Cover Report

Betrayal of the highest order

to allow Indonesia control of the territory and to oversee an act of self determination which ON December 1 1961, Dutch troops lowered would eventually be doctored while the United the Netherlands flag for the last time over its Nations looked on in silence.

New Guinea territories.

Australia looked on meekly and continues As the flag descended from poles across to do so close to half a century later. the territory, a new standard rose in its place So what was in it for the United States?

– the Morning Star of the independent nation At the time the Indoof West Papua. nesian authorities had On October 31 the first THE Morning Star flag is the symThat independence would be short-lived, sentenced to death a US Morning Star flag was bol of West Papuan Freedom. however, as a resource-hungry and recently presented to the Dutch It is illegal to fly the flag unless bomber pilot, Lieutenant independent Republic of Indonesia vied to governor and West Papua it is raised with that of the Indo- Alen Lawrence Pope, take hold of every possession of the departwas allowed to use this, nesian republic and remains on a who was shot down over ing Dutch.

Ambon while flying a the anthem and coat of lower pole.

Aided and abetted by the United States and arms.

The Morning Star – in white on mission for the Central Australia, Indonesia would annex West Papua The official raising of a red background – is usually seen Intelligence Agency. in 1962 with the world feigning ignorance of The CIA flew missions the flag took place on at the darkest part of night and just the blatant rape of democracy. in support of rebels who December 1 1961 and before the sun rises.

It reminds the West Papuan were fighting an insurThe Netherlands took possession of what Indonesia invaded the people that despite the darkness of gency against Sukarno’s it named the Dutch East Indies – what is now territory one month later.

Indonesia and the western portion of the island P a p u a n f i g h t e r s – oppression, dawn will bring inde- newly-independent Inpendence and freedom. of New Guinea - in 1660 and held the territory donesia demanding an trained by the Dutch to Design of the flag is attributed to through two world wars. equitable distribution of provide internal security Marcus Wonggor Kaisiepo.

But an independence struggle led by Gennational wealth and pofor the new nation – caperal Sukarno saw the Dutch agree to relinquish litical control. tured 296 of the 1429 control of all its possessions excluding Dutch It was the fear of rapidly developing cominvading paratroopers and handed them over New Guinea. munist influence in Indo-China which spurred to their colonial rulers. A further 216 of the Instead it agreed to grant independence to the US to back the insurgents. invading force were killed or never found. the ethnic Melanesians who lived in Dutch The US also had its eyes on the riches The Dutch feared heavy casualties would New Guinea separately from its deal with concealed beneath the lush green forests of eventuate from a protracted jungle conflict Sukarno. This was supported by Australia who West Papua – gold for the huge Grasberg Mine and sought the help of the United States as which continues to make millions of dollars under watchful Indonesian eyes.

Operated by PT Freeport – 90.6 per cent owned by McMoRan and 9.3 per cent by the Indonesian government - the mine pumps out up to 611,000 tonnes of copper, 58 million grams of gold and 174,500 grams of silver annually.

After taking control of mediation, the US designed a treaty in 1962 which – in essence – allowed Indonesia to march with impunity into West Papua a year later.

Needing no encouragement, Sukarno organised just over 1000 hand-picked Papuans in 1969 in what was termed an Act of Free MORNING Star.. Fijian university students protest against Indonesian occupation of West Papua Photo INVICTUS Choice to vote in favour of joining his repubPICTURES lic. And with that the dream of West Papuan controlled Papua and New Guinea to the east. independence ended. a mediator to prevent a drawn out war with In January 1961 after territorial elections, Or so the global powers thought. But they Indonesia. the Dutch governor swore in the New Guinea reckoned without the fierce desire of the inPresident John Kennedy – fully aware of the Council comprising 28 members and the coundigenous people for independence.

Dutch desire that the Papuans retain indepencil’s inauguration on April 1 of the same year Since 1969 the Organisasi Merdeka Papua dence – decided that it would be best for the was attended by Australia, Britain, France the (OPM or Free Papua Movement) has fought US to make Indonesia an ally.

Netherlands, New Zealand and other Pacific a guerilla war for independence.

The world’s newest independent state at Forum nations.

Amnesty International estimates that over that point became a pawn to be sacrificed for The Council appointed a committee to draft 500,000 Papuans have been killed by the the geo-political needs of the US. a manifesto showing their desire for indepenIndonesian military, some for merely raising Of course, the “threat” of communism was dence, design a flag and compose an anthem. the flag which first flew in 1961. invoked as justification for the US agreeing

by Netani Rika

World powers turn blind eye to indigenous rights

Islands Business, January 2015 11

Cover Report

Tears flow freely for lost freedom

by Netani Rika

A

12 Islands Business, January 2015

Cry for freedom ... West Papuan church leaders shed tears after singing their banned anthem at the World Council of Churches General Assembly in Busan, South Korea. Photo INVICTUS PICTURES

“

“

S the strains of the banned anthem Oh, My Land Papua faded away and tears streamed down the cheeks of the members of the Papuan delegation at the World Council of Churches 10th Assembly, the audience was left emotionally drained.

The reality had finally dawned.

Here stood a people, strangers for 52 years in the land of their ancestors, stopped from singing their hymn of praise of tanah – their vanua, brutally punished by the Indonesian security forces for daring to suggest that they wanted self-determination.

Here stood a people who had attempted for more than half a century to bring justice into their homes in the face of an international and church community which conveniently turns a blind eye to their struggle.

Two months earlier, then Australian Foreign Minister Bob Carr claimed the international community had no interest in the situation of the indigenous people of West Papua.

Australia and the United States may not be interested in the people but they have a definite interest in the gold and timber in the forests of West Papua, along with the potential gas and oil off the coast.

The United Nations – which shirked its responsibility in 1961 and failed to block Indonesia’s annexing of the former Dutch colony – has done nothing, possibly out of shame.

So they have remained blind and silent to the plight of these people who finally claimed a place on the international stage.

The world’s churches, complicit with the UN and the global powers through their silence – were forced to open that space by the Pacific delegation to the WCC 10th Assembly.

At this religious forum representative of more than 500 million Christians the irony of this forgotten people making a political statement was not lost.

That was what brought tears to the eyes of people who did not know the words of the West Papuan anthem.

Here stood a people singing their song in a strange land.

Psalm 137 tells of the lament of the Israelites being forced by their Babylonian captors to sing songs of praise to God while the captors laughed until their sides hurt and tears rolled down their faces.

“How can we sing in a strange land?” the Israelites asked.

But here stood a people for whom sing-

ing this song in their own the silence and hearts of the land would mean death, a audience.

How can we fate faced by more than Not an eye in the house sing in a strange was dry.

100,000 Papuans at the hands of the Indonesian A Papuan woman watching land? military in the last 52 off stage wept, her handkeryears. chief held to her face long after Here they stood, tears the anthem ended. streaming down their As thunderous applause cheeks, allowed to sing only in a strange land. broke out the Papuans turned to each other Tears of joy at being able to sing their and embraced in what must have been a bitanthem. Tears of pain, remembering the tersweet moment. struggles of more than half a century. Tears In Busan they had broken the ceiling of of gratitude to the Pacific community for alinternational isolationism but they must return lowing them space on stage. to a land which – although theirs in spirit – is The Papuan anthem was a surprise feature no longer their own. of the final performance of the Pacific OikIt belongs in essence to a foreign occupier. oumene Group.

After the brief euphoria of helping a forgotPacific church leaders stood with their ten people gain a political milestone, a new youth representatives, ready to sing the last reality dawned on the audience. item.

For the people of West Papua, the struggle Then they parted as the Papuan delegation is far from over. led by drummers and took the front row, Drained of emotion for fleeting seconds, dressed in grass skirts and wearing their Bird the vacuum in my soul started to fill with of Paradise headdress. anger and then – as it overflowed – a sadness Their backs straight, right hands held across so compelling a cynical journalist was forced their chests, the Papuans broke into song. to turn from the crowd, unable to see through They sang in unison – men and women the camera viewfinder.

– with a haunting male descant piercing Words failed me.

Politics

Former diplomat Tavola draws up regional issues plan

by Nic Maclellan THE last time an Australian Prime Minister attended the Pacific Islands Forum was in August 2012.

And a number of pressing issues will draw Australian attention to the region in 2015.

Following Fiji’s elections, Australian Foreign Minister Julie Bishop has been wooing the Bainimarama government to return to full participation in Forum activities. Over cocktails last October, Bishop and Prime Minister Bainimarama agreed to meet in Sydney to review the regional architecture, scheduled for February.

The deal between Suva and Canberra has caused some concern at the Forum Secretariat, which was not consulted before the summit was scheduled. The agenda is still in flux, because there have been a series of studies on the role and mandate of regional institutions, including the 2012 Winder review of the Forum Secretariat and the 2013 Morauta review of the Pacific Plan. Regional bureaucrats are unenthusiastic about yet another costly discussion about Pacific institutions, at a time when Canberra, Port Moresby and Suva are jousting over regional leadership.

Australia’s engagement with Fiji is also complicated by statements from Prime Minister Bainimarama and Foreign Minister Inoke Kubuabola that the Forum should be restructured to reflect new regional realities.

Former Fiji Foreign Minister Kaliopate Tavola has been developing an issues paper for his country’s Foreign Ministry, proposing a “New Pacific Islands Forum” that would see Forum Island Countries at the heart of the regional body and Australia and New Zealand in a new role as donors and development partners.

The Australian government will resist efforts to transform its current equal membership of the Forum, citing shared regional interests in stability, security and prosperity.

But the Abbott Government’s policies on trade and environment are increasingly at odds with its Pacific neighbours.

The deepest gulf between Canberra and Forum Island Countries is over climate policy, with small island states regarding this as a central threat to their security and prosperity.

By mid-year, countries must make significant pledges on post-2020 emissions reductions.

Ongoing action is crucial for the December 2015 UNFCCC Conference of Parties in Paris, which aims to finalise a global climate agreement.

Australia’s current commitment for a five per cent reduction of emissions from 2000 levels by 2020 must be strengthened, but

Changing tides ... Australia has been forced to address global warming issues such as tidal flooding in Honiara.

Photo: INVICTUS Pictures

Australia resists new-look forum the Abbott Government has boxed itself in, making it harder to commit to ambitious cuts.

Having destroyed the Gillard Government’s carbon tax, abolished the Climate Commission and begun negotiations to reduce Australia’s Renewable Energy Target (RET), Prime Minister Abbott is pinning his hopes on a “direct action” programme through an A$2.5 billion Emissions Reduction Fund.

But many analysts argue that “direct action” cannot be expanded in a cost effective way as Australia increases its emissions reduction targets beyond five percent.

At the G20 meeting held in Brisbane last November, Prime Minister Abbott gained kudos for hosting leaders from China, the United States, India, Britain and France. However the host government was angered as a meeting that was supposed to focus on jobs, trade and growth was diverted into debate about economic impacts of climate change.

The Abbott Government’s isolation was highlighted by public criticism from US President Obama, who stressed the threat to the Great Barrier Reef from ocean warming and acidification.

Last year, G20 members pledged significant funding to the Green Climate Fund (GCF): US$3 billion from the United States, $1 billion each from France and Germany and significant amounts from Sweden, Norway, Mexico, Korea and other nations (after initially refusing

support, even Canada’s conservative government pledged $275 million). After a year as the only OECD country refusing support to this global climate funding mechanism, Canberra’s embarrassment was finally too much.

At the UNFCCC negotiations in Lima last month, Foreign Minister Julie Bishop announced a A$200 million commitment to the GCF over four years, drawn from the Australian aid budget (Much of these funds are earmarked for rainforests and REDD+, which will benefit Indonesia and Melanesian nations but not smaller island states). In Lima, however, Australia continued to oppose AOSIS policy on issues like loss and damage and differentiated responses.

Following the merger of AusAID into the Department of Foreign Affairs and Trade, Australia’s aid budget is again under significant threat. Facing loss of revenue from falling commodity prices, Australian Treasurer Joe Hocke has announced yet another cut to the overseas aid budget, the third reduction in the past year.

In December’s Mid-Year Economic and Fiscal Outlook (MYEFO), Hocke announced an aid cut of A$3.7 billion over four years, on top of the $7.6 billion reduction in the May 2014 budget.

The Pacific has been partly insulated from past cuts, but the new policy will hit bilateral and regional initiatives.

Islands Business, January 2015 13

Politics

SECURE future ... PNG police maintain watch in Port Moresby. Photo Sam Vulum

Stable times ahead for PNG economy

by Sam Vulum PAPUA New Guinea’s fast growing economy is being supported by a stable government going into 2015.

Economically, Papua New Guinea is just seeing completion of 13 years of continuous economic growth and is about to enter another.

Supported by more stable and favourable policies and an upsurge in commodity prices from around 2004 PNG has maintained an unbroken chain of 13 successive years of economic growth and such growth is expected to be maintained in the medium term.

And with the surge in liquefied natural gas (LNG) exports is expected to nearly treble the pace of economic growth in 2015 putting the South Pacific island nation at the top of the league of fast-growing economies and helping it bridge a widening budget deficit.

The government estimated the economy will grow by 15.5 per cent this year, when it unveiled its budget in November. This follows estimates from the World Bank’s East-Asia Pacific Economic Update, published midOctober, that the economy will grow by 20 per cent next year, underpinned by gas exports from its $19 billion plant.

The bank noted that growth will more than offset the end of LNG-related construction, declines in copper exports, and weak cocoa and coffee production.

The Asian Development Bank (ADB) echoed this sentiment with forecasts of GDP rising by 21 per cent in 2015, up from six per cent this year, in its outlook published early December. The growth far outpaces regional peers with the next best performer, the Philippines, expected to post GDP expansion of 14 Islands Business, January 2015

$19b natural gas exports offset weak cocoa coffee trade 6.7 per cent.

However, growth in activity outside the resource extraction sector is likely to remain weak, with non-resource GDP projected to grow by 0.4 per cent in 2014, compared to the 9.2 per cent recorded during the peak of the construction phase in 2012, according to the World Bank. However, growth in the non-mining sector will recover to reach 4 per cent growth in 2015, which will provide modest support to employment growth, it noted.

This prompted calls in December from the IMF for a renewed policy focus on growth in the post-LNG construction in a bid to boost the non-resource sector. It said high priority areas include the delivery of frontline health and education services, including sufficient allocation of critical recurrent expenditure.

It also called on the government to introduce its sovereign wealth fund as soon as possible, an idea originally mooted in 2011.

The government has adhered to the call with the current Organic Law of PNG SWF being reviewed since its passage by Parliament in February 2012 to account for further refinements and technical issues of the constitutional law process. This law has been re-drafted with amendments to ensure it does meet all of the underlying policy objectives of PNG SWF and to further strengthen gover-

nance structures to ensure that the PNG SWF cannot be diverted in the future for purposes it was not intended for by Parliament.

The aim of the fund is to ensure PNG’s natural resource revenues are well managed, and support the economy and future development of our nation as envisaged in the PNG development strategies. The design of the PNG SWF is consistent with international best practice such as the SWF Generally Accepted Practices & Principles (Santiago Principles), the Extractive Industry Transparency Initiatives, and PNG’s domestic requirements.

Politically, the government led by Prime Minister Peter O’Neill is strong and stable with overwhelming parliamentary support.

The PM who is facing a leadership tribunal over alleged misconduct is confident of survival.

The government secured the passage of the largest budget in the nation’s history, with expenditure of K16 billion, and there are other important legislation before the Parliament, including the Sovereign Wealth Fund, that will strengthen the economic future of the nation.

Although there have been some political disturbances from outside the parliament this year that has caused some “confusion,” these have been just part of the robust nature of the country’s democratic political process. These have been addressed and dealt with by a very capable judiciary.

Prime Minister O’Neill said: “We are now well into our third year of benefiting from that certainty – and I am confident we will continue to do so until the people of Papua New Guinea have the opportunity to judge our government’s performance at the 2017 national election.”

Politics

Territories face difficult economic challenges in the year ahead

by Nic Maclellan LAST November, as French President François Hollande made his first visit to New Caledonia and Australia, he stressed that France would remain a Pacific power, welcomed by its neighbours: “That wasn’t always the case in past decades,” he said.

“But today, they ask us to remain present, because we can also help assure the future of the region.”

During his trip to Australia, Hollande was accompanied by the President of French Polynesia Edouard Fritch and the then President of New Caledonia Cynthia Ligeard.

By year’s end, this united front was under stress. Ligeard has lost office, French Polynesia’s assembly has criticised France over nuclear testing and 2015 will see difficult economic times for the governments of New Caledonia and French Polynesia.

In Noumea, there are bitter divisions between the three leading anti-independence parties - Calédonie Ensemble (CE), Front pour l’Unité (FPU) and Union pour la Calédonie.la France (UCF). Following last May’s assembly and congressional elections, the three conservative parties signed a “governance pact” and carved up positions in the Southern provincial assembly, the Congress and the Government of New Caledonia (with the presidency going to FPU’s Cynthia Ligeard).

In our June 2014 edition, Islands Business raised doubts about the longevity of this pact.

Just six months later, the government of New Caledonia is collapsing.

At the time, three CE ministers have resigned from the government, leading to a spill of the 11-member national executive. A new government will be chosen this month, opening the way for new directions at a crucial time for the Melanesian nation.

Throughout 2015, there will be a realignment of political forces as New Caledonia moves towards a decision on its political status, with a self-determination referendum scheduled in late 2018.

Disappointed by the lack of initiatives during President Hollande’s recent visit, members of the independence movement will be looking for greater involvement in New Caledonia’s decolonisation process by the United Nations, Pacific Islands Forum and Melanesian Spearhead Group.

Last month, members of the UC-FLNKS group in Congress stated: “It is in the interest of all New Caledonian political partners and the New Caledonian population, including citizens and non-citizens, that a stronger involvement of the UN be accepted in or-

POWER struggle ... Chinese warship in Papeete Harbour.

Photo INVICTUS Pictures

French enter rough waters der to resolve once and for all the colonial dispute. In 2015, it will make 40 years that the Kanak people and the pro-independence activists have formally declared their request for independence, and have claimed a selfdetermination referendum.”

The FLNKS will hold a Congress in February, to make crucial decisions about the future of the decolonisation struggle. One key agenda item is the potential to open the independence movement to a trade unions, churches and political parties that are currently outside the four-member coalition.

Meanwhile in Papeete, the government of French Polynesia under President Edouard Fritch faces a difficult economic challenge in 2015, as the business sector tries to improve tourism and investment, especially from China.

Fritch’s Tahoeraa Huiraatira Party holds a large majority in French Polynesia’s assembly, but politics is complicated by the ongoing influence of his former father-in-law, Gaston

Flosse (The long serving President was removed from his position last September, after Hollande refused to grant a pardon to overturn Flosse’s conviction for abuse of public office).

The disgraced politician continues to serve as an advisor to the Tahoeraa Party and Flosse’s influence extends beyond Papeete, with his former post in the French Senate taken up by his new son-in-law Vincent Dubois.

During this year, France will be looking to highlight its role as a partner on climate change, in the lead up to the December 2015 UNFCCC climate negotiations which will be held in Paris.

At the High Level Dialogue on Climate Change, held at the Secretariat of the Pacific Community (SPC) in Noumea last November, President Hollande pledged support for Pacific governments through France’s $1 billion contribution to the Green Climate Fund. France is also a member of the SPC and the Secretariat of the Pacific Regional Environment Programme (SPREP), providing more than 10 per cent of core funding to these regional technical organisations.

Beyond this development partnership, the French state has its own interests in the region.

After the recent SIDS conference in Samoa, Pacific governments are looking to harness and conserve the wealth of the oceans - but Paris also hopes to benefit from the “blue economy.”

In recent years, French corporations have been investing in research on seabed mining, while the French government has established an inter-ministerial committee for the oceans and a committee on seabed and strategic minerals.

With its far-flung colonial empire, France has the world’s second largest exclusive economic zone (EEZ). There are only 340,290 square kilometres of EEZ in Europe, but more than 7 million in the Pacific.

A 2014 report from the Overseas Commission of the French Senate highlights the importance of this international maritime zone for France: “Thanks to its overseas possessions, France is one of the countries affected - indeed the most affected - by this revolution in sharing the oceans. Its EEZ is in fact the second largest behind that of the United States and beyond this, the most diverse. Present in both hemispheres and at all points of the compass, the French EEZ is the only one on which the sun never sets.”

Australia has promoted France as a force for stability in the region, looking to closer security co-operation. But as independence leaders look for regional support throughout 2015, France’s desire to remain a Pacific power will come under increased scrutiny.

Islands Business, January 2015 15

Politics

COMMON goal ... Vanuatu’s factions have rallied behind the call for self-determination in West Papua. Photo: INVICTUS Pictures

Vanuatu seeks political stability

by Tony Wilson THE one thing Vanuatu craves and needs the most – political stability – failed to materialise again in 2014.

Any review of 2014 and a subsequent look forward for 2015 hits the same major stumbling block which is that no government has been able to last in power much beyond 12 months in recent years.

Certainly a government lasting a full term of four years – which was the norm in the first decade after Independence - is now the stuff of dreams.

The proliferation of political parties in recent years, from one at Independence in July 1980 to more than 15 today, has played a major role in that instability.

And this uncertainty of tenure by any coalition of parties cobbled together to grab power has cast a dark shadow over the nation and all of its goals and aspirations.

Police and fire officers unable to attend crime scenes and blazes because they have no fuel for their vehicles were embarrassingly common again in 2014.

Doctors, nurses and teachers threatening industrial action because of long periods of no pay continued in 2014 with the predictable result of a drop in standards in both critical areas.

Consecutive governments in Vanuatu have failed to realise how important it is to pour resources into emergency services, health and education before moving to other areas of critical need. And it is here that the criticism of the Ministry of Health kicks in, with claims the department should have been better prepared to deal with a major outbreak of dengue fever which affected hundreds of victims in the first half of 2014.

Insiders in the Ministry of Health have 16 Islands Business, January 2015

blamed poor administration for the magnitude of the dengue outbreak. These senior staffers, who could not be named for fear of losing their jobs told Islands Business that the damage was done following a major reshuffle in the Ministry of Health by the then Health Minister Serge Vohor and his acting Director General Dr Santus Wari last year.

The health insiders claimed the Ministry of Health had established a well functioning dengue programme during the past 20 years, but it failed to a degree at this outbreak.

In May Moana Caracasses lost the prime ministership and government in a well executed plan that saw Joe Natuman elected as Vanuatu’s 10th (different) prime minister, with 40 MPs voting for change. One of the key issues leading to the downfall of Carcasses was the fact that he was born in Tahiti and was therefore not Ni Vanuatu. Talk of another motion of no confidence emerged within days of Natuman assuming power and a motion materialised in September, but it was deemed to be invalid by the Speaker and this was later supported in both the Supreme and Appeal Courts.

A Carcasses-backed no confidence motion was finally accepted in late November against an amazing backdrop of claims of bribery and corruption of opposition MPs. Carcasses admitted he had a VT30 million war chest (of his own money) for loans to opposition MPs to spend on improvements to their communities. Prime Minister Natuman ordered police to investigate and then tabled a motion to have 16 Opposition MPs including Carcasses suspended from Parliament on the grounds of bribery and corruption. It succeeded on November 25 with the MPs suspended until after the first ordinary sitting of Parliament at least March 2015.

However, Carcasses and the 15 other sus-

pended MPs challenged this suspension in the Supreme Court which ruled absolutely in their favour on December 2, saying the suspension was illegal. The motion of no confidence which was to be heard five hours after the court verdict was withdrawn, with Carcasses clearly not having the numbers and deciding to fight on another day.

One area where the entire country was united was in its vocal support for the independence of West Papua, which even prompted a threat from Indonesia late in the year, with the powerhouse Asian country telling Vanuatu of its ‘deepest concern’ for holding a conference on Papua.

Crime also made the news consistently in 2014 – particularly the vile sex crimes of rape and incest which appeared to be on the rise, but experts felt it was the fact that more cases were being reported than in previous years.

Debate also raged as to whether custom law should be used to deal with these types of crime – especially in the case of a husband raping his wife. Some chiefs supported the use of custom law in these matters, but the majority of chiefs and the community felt these crimes had to be dealt within the judicial system.

On the crime front, the nation was totally shocked in November when it was revealed that two men believed to be involved in witchcraft were tortured and then hanged in a community hall in Akam Island in South West Malekula. The accused black magic practitioners had been the subject of a lengthy village trial before their executions in front of most of the community, including women and children. The double murders prompted calls for the death sentence to be legislated for witchcraft. Police investigating the double murder charged 24 men including three senior chiefs with a range of offences including intentional homicide.

Politics

Marshalls 2015: Year of election

by Giff Johnson WITH its national election scheduled for November, the Marshall Islands is already in campaign mode. Stakes are high for a number of reasons, including an ongoing crisis in management at the Ministry of Health that has confounded the past three administrations, numerous reform initiatives that have been delayed by the parliament—ranging from telecom and state owned enterprise reform to a revamp of the social security retirement system—and the looming end of the grant funding that expires at the end of 2023 under the Compact of Free Association with the United States.

The RMI national trust fund, which has been capitalised mostly by the US and Taiwan, rebounded during 2013 and 2014 to get back on its hoped-for track. But with volatility of stock markets increasing as oil prices have crashed in recent months, there is no way to predict how the coming eight years of offshore investments will pan out. If the fund can earn about six percent a year going forward, the Marshall Islands can expect to have adequate funds for a smooth transition from Compact grant funding to trust fund interest

revenue in 2024.

The Marshall Islands membership in the Parties to the Nauru Agreement (PNA) has, since 2010, been the biggest factor increasing government revenue. Funds from PNA’s vessel day scheme has caused revenue to quadruple and fisheries revenue now accounts for nearly 10 per cent of the national budget — and it is expected to dramatically increase in 2015 as the fishing day prices rises from US$6000-$8000. The government maintains a ship registry, the third largest in the world, which produces a steady contribution, though more modest amount than fisheries, to the government treasury. But the Marshall Islands is nearly as financially dependent on donor funding as it was two decades ago, with over 60 per cent of its national budget accounted for by US and other donors.

Domestically, the key issue facing government is whether it has the political will to fix myriad problems in delivery of service. The government-owned national airline’s service in 2014 was poor, with planes on the ground almost as much as they flew.

Majuro Hospital services continued to decline, with the facility repeatedly out of key medicines and supplies, sparking complaints

from patients. Meanwhile, US-provided construction funding that averaged $12.5 million a year from 2005-2011 dropped dramatically in recent years as a result of the inability of the government to manage project work, reducing employment opportunities and hurting the private sector.

Major reform legislation to end the government telecommunications monopoly, revamp retirement fund benefits and eligibility to prevent the fund from going bankrupt in 10 years, replace the existing tax system with a new tax structure, and reform the operations of numerous poorly performing state owned enterprises are among many on the table for possible action in 2015.

Some bright spots: the government’s national power utility has greatly improved operations as part of a recovery plan adopted by its board several years ago. It has been able to obtain outside funding to fix generators, install power metres, and improve services.

The College of the Marshall Islands continues to improve its financial and academic situation, and has just hired a long-time Suva campus-based University of the South Pacific administrator, Dr. Theresa Koroivulaono, as its new president.

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Follow us on Islands Business, January 2015 17

Travel

Tanoa Tusitala is hotel of choice for many

Bit of leisure in business in Apia

by Samisoni Pareti WHEN United Nations chief Ban Ki-moon flew to Apia to attend the UN conference on small island developing states last September, he opted to stay at Tanoa Tusitala Hotel and not in a luxurious suite on board the elevendeck 1991 built Pacific Jewel P&O cruiseliner berthed on Apia Wharf.

The 4.5 star 95-room hotel situated along Apia’s Beach Road that runs along the shores of Apia Harbour could not have asked for any better endorsement.

Also staying in the hotel for this highpowered summit was Ban Ki-moon’s UN Development Programme Administrator, former New Zealand Prime Minister, Helen Clarke.

Then again attracting world-class guests is nothing new to the hotel. Its second name Tusitala is Samoan for “story-teller,” the name Samoan affectionately called the famous Scottish novelist and poet Robert Louis Stevenson.

Among his works are Treasure Island, Kidnapped and Strange Case of Dr Jekyll and Mr Hyde. His final resting place on Mount Vailima is visible from many points in and around Apia. The mansion that he lived in is now a museum and is one of the must visit attractions of the Samoan capital.

No doubt about it, Tanoa Tusitala is like an oasis in the urban jungle of Apia town.

With its Samoan-looking buildings built around a six hectare tropical garden and a large outdoor freshwater swimming pool, the hotel can almost literally becomes a haven from the tropical heat and dust.

Its guests have choices of relaxing in their air-conditioned rooms or in the relaxing sur18 Islands Business, January 2015

VILLAGE people ... Visitors are always welcome in Samoa. Photos www.samoa.travel

rounds of the bar or restaurant beside the outdoor pool and garden.

Other hotels around Apia that are listed in Samoa Tourism Authority’s website that offer services for business travellers include Hotel Elisa, Hotel Millenia, Insel Fermarn Hotel and Le Manumea Hotel. The first two are located on the same Beach Road as Tanoa Tusitala.

Not in the list was Aggie Grey Hotel as it was still closed for renovations by the end of 2014 and plans are that it would reopen under the Sheraton hotel brand.

If you happen to spend the weekend in Apia, travelling out of town is highly recommended, either to many of the resorts along the coast or if time permitting, taking a plane or a ferry to the next island of Savaii.

A good place to start in planning your weekend out of town is Samoa Tourism’s website, www.samoa.travel.

In brief: Websites: www.samoa.travel; www.tanoatustala.com Currency: Tala (By end of Dec 2014, T1 = 0.4236 USD, or 0.5206 AUD) Internet: Prepaid WIFI cards are available Mobile Telephone: Bluesky and Digicel Banks: ANZ and Westpac and they have ATMs too Local airlines: Polynesian Airlines and Samoa Air Want to drive? Get your drive licence validated at a small fee Rental cars: Available and a list can be accessed on wwwsamoa.travel Taxis: Cabs are not metered in Apia, so always good to ask for the fare before you get in.

Buses: Best way to see Apia especially in the unique Samoan timber buses

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Region expects stable growth

by Samisoni Pareti ANZ Bank’s Pacific Outlook for 2015 projects Pacific Island economies to achieve a positive growth this year with Papua New Guinea’s economy forecast to soar to a record 20% growth driven by exports of liquefied natural gas (LNG).

The Australia and New Zealand Banking Group’s (ANZ) Pacific outlook for 2015 is forecasting PNG’s growth at 20 per cent while the Asian Development Bank’s (ADB) estimations are 21 per cent.

Either way PNG’s economy will thrive this year on LNG production which started in 2014 but this year will be the first full year of production.

Fiji’s economic growth will be strong following last year’s elections with a forecast of a 4 per cent growth this year.

Both Samoa and the Solomon Islands economies will improve following last year’s natural disasters.

Samoa’s Gross Domestic Product (GDP) is at an optimistic 2.4 per cent while the Solomon’s will significantly improve from its 0.3 per cent in 2014 to 3.3 per cent this year.

Timor Leste’s economy is estimated to perform close to 7 per cent, Vanuatu below 4 per cent and Tonga is expected to remain sluggish and below 2 per cent.

of the world’s most influential leaders India’s Prime Minister Narendra Modi and China’s President Xi Jinping in 2014 has further propelled Fiji’s profile in the global community.

Although Fiji’s economic prospects look solid ANZ has recommended that the Reserve Bank of Fiji act pre-emptively and tighten policy in a measured manner to moderate demand pressures particularly credit growth.

enabled Kiribati to achieve budget surpluses equal to 10 per cent of gross domestic product in 2013. These unexpectedly high revenues helped the government shore up its Revenue Equalization Reserve Fund with deposits totaling AUD$10 million.

In 2012, Kiribati cleared its expensive commercial debt, which had restrained expenditure. Despite this fiscal consolidation, stabilising the reserve fund balance is per capita terms remains a challenge.

PNG The Pacific’s biggest economic boom will be in PNG, largely due to gas production. Its economic performance above 6 per cent in 2014 to 20 per cent this year will drive GDP to record levels.

However GDP is expected to drop below 4 per cent in 2016.

The ANZ outlook for 2015 states that the majority of growth this year will be accrued by foreign participants and non mineral growth is likely to remain slow. The 2015 budget exemplified constraints in spending, which may see further moderation in activity following the Pacific Games in July.

Over the past decade, the strong performance of PNG’s economy outside mining and petroleum has seen formal employment grow by an average of 6 per cent per year.

This has almost doubled the size of the private sector workforce and created new opportunities for an emerging middle class. However, recommendations have been made to prioritise other sectors to ensure that formal employment continues to expand.

Fiji Fiji’s return to democracy is a key driver of its economic growth above GDP trends. The elections last year in September, the country’s first since the 2006 coup has boosted confidence.

Economic growth is expected to Nauru grow at a robust 4 per cent and reRising government revenues and mains on track for a fifth consecutive increased consumer purchasing year of expansion. power from the liquidation of the Tourism which is the largest forSign of hope ... Indian Prime Minister Narendra Modi’s visit boosts Fiji’s regional Nauru Phosphates Royalties Trust eign exchange earner recorded a profile Photo INVICTUS PICTURE and the distribution of proceeds to strong performance in 2014 with landowners has suggested strong significantly more visitor arrivals Kiribati growth in 2015. from its key markets Australia and New ZeaEconomic growth is expected to narrowly Growth is estimated to be 8 per cent comland. Sugar and Mineral Water exports also decline to 2.7 per cent this year compared to pared to around 10per centlast year. attracted large export earnings.

3 per cent in 2014. Last year’s growth was Overall the economy will strengthen with fueled by public spending.

Samoa the reintegration and renewed engagement High revenues from fishing licence fees Samoa’s economy is in line to finally shake with development partners. The visit by two 20 Islands Business, January 2015

BUDGET ANALYSIS Bank /Insurance

December 2014

www.adb.org/pacmonitor

off the effects of Cyclone Evan which dev-

astated the island nation in December 2012.

The Monitor provides an update of Economic growth for 2014 wasand 2 per cent developments in Pacifi c economies and is expected to increase explores topical policy issues. to 2.4 per cent this year at the back of post cyclone rehabilitation, rising remittances inflow, hotel construction and renovations and the hosting of the 2015 Contents Commonwealth Youth Games.

Highlights 1 A rebound in agriculture and the temThe economic setting 3 porary stimulus from spending associated Country updates 5 with the hosting of the United Nations Third Policy briefs International Conference on Small Islands Long-run growth forecasts for Asia: Developing States in September 2014 played Opportunities and challenges an important part in their economic perfor for the Pacifi c economies 18 mance last year.

Fiscal management challenges in Papua New Guinea and Solomon Islands Timor-Leste 21 by Last year’s economic upheaval caused Update scal modeling orts contracting floodsoninfiApril saw GDPeff growth intothe c but is set to climb to 3.3 26per 0.3Pacifi per cent cent this year.

Economic indicators 28

The elections in November provides a further impetus to rebuild the economy.

Highlights The floods severely damaged infrastructure z Robust revenue collections in smaller and crippled economic centres which resulted Pacifi c economies. undertoaany in adverse economicRising impactrates compared other natural in decades. regional vesseldisaster day scheme continue to The strong lack offimineral production from support shing license revenues Ridge addition tooflower commodity in Gold Kiribati, thein Republic the Marshall provides to the States 2015 outlook.

However Islands, therisk Federated of Micronesia, the growth this year is aheadeconomic of previous Nauru, and Tuvalu.

Increased expectations. activity and improved compliance are also pushing tax revenue collections higher in Timor - Leste Fiji, Palau, Tonga, and Vanuatu.

Their economy is dominated by the petroleum sector while the non petroleum sector z Limited 2015 expenditure growth planned shallow andHigh dependent on have governinremains larger economies. revenues ment spending. underpinned expanding budget allocations Timor-Leste’s non oil GDP which is excludin large resource-rich economies, but low ing the value of crude petroleum and natural implementation rates limit the development gas isFor projected to remain firm 6-7 gains.

2015, Papua Newbetween Guineaa plans per cent this year. fiscal consolidation to reduce its deficit,

while Timor-Leste is budgeting a minimal Tonga increase in total expenditure to bring The ongoing reconstruction from Cyclone budgeted and actual expenditures closer.

Ian which affected the island in January 2014 is expected to bump up growth this z Seizing new opportunities.

This year. Tonga’s economy is estimated to have issue’s policy briefs consider longeraccelerated to 1.5 per cent last year after 0.3 run peropportunities cent in 2013. and challenges facing PacifiThe c economies from changing external 2015 economic outlook is for GDP conditions.

Eff orts to utilize scarce growth to be less than 2 per cent. public resources more effectively in developing the infrastructure and institutional capacity Tuvalu needed to harness opportunities Growth forecastemerging for Tuvalu is projected to areremain explored—focusing on at 2 per cent this year.eff Inorts 2013 to GDP improve fi scal planning and management. growth was around 1.3 per cent increasing to 2 per cent in 2014.

Vanuatu The country is expecting growth this year and 2016 mainly driven by large infrastructure projects which started in 2014. This year’s projection is around 3.7 per cent.

22 Islands Business, January 2015

Asia is the Pacific’s next big thing WITH Asia projected to grow by 5.6 per cent per year for the next 20 years and expected to account for nearly 40 per cent of global

output by 2030, it makes good business sense for small islands of the Pacific to look to Asia • Continued on Page 24

For more information call 331 5955 or visit www.towerinsurance.com.fj

Providing insurance in Fiji since 1874

Bank /Insurance • From Page 22

as their next big trading and business partner.

That’s the assessment of a recent study done jointly by the Manila-based Asian Development Bank and the ADB Institute on ‘Leveraging the Benefits of Asia’s Integration and Growth for Pacific Economies.’

Although the full report is due for publication early this year, the bank’s quarterly Pacific Economic Monitor published snippets of the study outcome last December.

Statistics showed that trade – both in imports as well as exports -- between the Pacific and Asia had increased nine times from 2000 to 2012.

Trading in 2000 amounted to US$2 billion, but this reached $19 billion in 2012.

There is now a huge demand in Asia for Pacific traditional exports like crude oil (for PNG and Timor Leste), timber, cash crops and fisheries.

The priority therefore for PICs would be to develop policies and institutional capacity to manage resources and ensure their sustainable use, the joint ADB study says.

The second striking feature about future Pacific/Asia trading is Asia’s growing middle class.

By 2030, the ADB study is predicting that at 6.2 billion, over half of the world’s middle class will be in Asia. This will translate to greater demand for luxury goods and services and it would be prudent for PICs to invest now in transport, logistics, and other public infrastructure to enable producers to profitably export niche products and tourism operators to provide internationally competitive services.

Asia’s bulging middle class will be attracted to the islands’ unpolluted tropical environments that are ideal for tourism, as well as niche products of the Pacific as in South Sea pearls, artesian water, cosmetics, coffee and handicrafts.

This ADB and ADB Institute joint study also delves on Asian’s growing aging population and how this holds good business prospects for island countries.

By 2030, Asian population of over 60 years will rise to about 17 per cent of their total population, that’s about 400 million people.

The Pacific economies should therefore seize this opportunity by marketing the region as potential retirement destination and supplier of skilled eldercare labour.

Prioritising investments in public services particularly in healthcare systems and human resource development of doctors, nurses and other healthcare workers should start now.

To capture the full benefits of Asia’s projected rapid growth, the ADB report urges island countries to continue with the reforms of their business environments. – adapted from ADB’s December Pacific Economic Monitor.

24 Islands Business, January 2015

Financier Kina Group provides education loans for children of Papua New Guinea. Photo Supplied

Finance and education for future generations

by Syd Yates FOR almost 30 years, Kina has always provided convenient and affordable avenues for working class parents to assist them in providing their children a decent quality of education and a brighter future. We provide loans for school fees and education through our EsiLoan product, available to staff of preapproved employer groups or a personal loan through Kina Finance. Access to finance for all Papua New Guineans remains a key priority for Kina and its continuous endeavour to provide innovative products and services that will aid wealth creation for all Papua New Guinean’s.

We have also been helping every day Papua New Guinean’s with their every day financial needs. Aside from providing loans for education we also provide loans to customers who may want to buy a motor vehicle or their first home, help with investing in their financial future with competitive term deposit rates, assist with buying shares on POMSoX and overseas markets and of course we must not forget superannuation. The Kina Group manages funds and administration services to Nambawan Super and CTSL. We consider ourselves to be market leaders who provide

innovative and competitive products and this has been demonstrated through our EsiLoan Cash Card, which continues to gives our EsiLoan customers instant access (within 2 hours of approval) anywhere, anytime. We have also just recently launched our EsiLoan Android Calculator App which is now available on the Google play store, developed in-house by our very own IT team.

As part of the banking and finance sector, Kina stands not only to provide innovative products and services that will enhance the opportunities and lives of young Papua New Guineans, but to also to help educate and improve their financial education and understanding. This is to ensure that they are able to pass invaluable skills in managing money to future generations and encouraging the application of these skills to everyday life wherever they may be.

We want businesses, parents and children to ask us questions on how they can achieve their financial goals and ambitions because at the end of the day, it is in everyone’s best interest to do so. You are always welcome to visit us at our branches around PNG, make an inquiry by emailing kina@kina.com.pg or visit our kina website - www.kina.com.pg and EsiLoan website - www.esiloan.com.pg.

Papua New Guinea’s Leading Financial Services Company Founded in 1985, Kina has expanded to be one of the largest financial services companies in Papua New Guinea.

We can help you with:

Investment Management Business and Personal Lending Term Deposits Superannuation Services Wealth Management Stockbroking Corporate Advice

To find out more about how we can help you achieve your financial goals visit www.kina.com.pg

Growing your business is our business Islands Business, January 2015 25

Business

International Rugby Board’s Rugby Sevens Series which became the centre of a row between the world rugby body, Fiji TV and the Fijian Government. Photo Supplied

EMTV – for sale at what price

by Samisoni Pareti HOW much is EMTV, Papua New Guinea’s leading television company, being sold for?

The question has been the talk of town ever since PNG Telekom publicly announced its interest to buy out the TV company from its Fijian owners. Sale price that has been bandied about ranges from K$24 million to $30 million. Yet some people say this is too low.

“EMTV was the golden goose for Fijian Holdings,” an insider told Islands Business magazine. “It was churning out an impressive rate of return on investment; doubling and in some years tripling its ROR.” This corporate expert believes a sale figure of between $30m to $40m will be much more plausible. Late last month, owners of EMTV – Fiji’s investment company, Fijian Holdings Limited (FHL) say it was waiting to hold further talks with PNG Telekom about the proposed sale. The telecom giant was supposed to have concluded by then the due diligence it carried out on EMTV. For those familiar with FHL, selling a lucrative part of its portfolio is unsurprising.

26 Islands Business, January 2015

TV owner under siege in home country That’s what investment companies do. “Being an investment company, it makes it money by buying and selling off its investments,” another corporate executive told the magazine.

What is surprising some people though is the impact the proposed EMTV sale would have on its Fijian sister company, Fiji Television. Already struggling from overbearing government regulations, its highly profitable PNG business was an economic lifeline that offered the much-needed cash respite.

Indeed a former Fiji TV executive told Islands Business no business can survive for long under the six months operating licence cycle the Fijian Government currently offers.

With EMTV about to be sold and all capital investments of Fiji TV like its analogue to digital platform migration put on hold, the

Fijian company’s future is bleak.

Losing EMTV at this time will also hinder Fiji TV’s push into the bigger Pacific Island market through its Sky Pacific satellite network. Being TV leader in the region’s two largest countries makes it easier to extend its footprint into the other islands. And as pointed out by another former executive of the television company, all the expansions done to date by the two TV companies have been done without any public money. All were funded

by Fiji TV’s own funds.

“For example, when the company decided to bite the bullet in 2004 and embraced satellite technology to cover the entire Fiji and Pacific group of islands, it funded this highly costly investment through its own money, and not through a single cent from government,” said the former TV executive.

“It reached a point whereby we have to go to Amsterdam in Europe to force the satellite owners to deliver on its promise of offering Fiji TV space on its satellite. Twice we went to court in Amsterdam, and we won.”

A former employee of the company said an interesting feature about EMTV is the accumulated funds of K$11 million in its reserves.

Whether this is part of the sale is yet to be determined. Another former executive said PNG’s high taxation rate for repatriated profit may be fuelling sales in the PNG market. With a tax rate of 17c for every dollar, many foreign companies doing business there would rather use their money to re-invest in PNG instead of repatriating the cash home.

By late last year, EMTV’s owners in Fiji were however fighting another battle. Both Fiji TV CEO Tevita Gonelevu and his Head of Content Tanya Waqanika were sacked in controversial circumstances in a dispute over the Fijian Government’s cross-carriage television decree. Although Fiji TV had secured rights to broadcast International Rugby Union (IRB) Rugby Sevens series, the decree forced the company to share the broadcast rights with the government owned FBC TV. IRB immediately cried foul over the arrangement. It said the decree was in breach of the world body’s exclusive broadcast rights, and told the Fijian Government that it could not force Fiji TV to share the rights. This dispute forced the IRB to stop the TV feed of its second IRB 7s series which was held in Dubai in early December last year. IRB only lifted the ban following negotiations between all the parties.

As part of the settlement, the Fiji Government would remove the IRB from its crosscarriage TV decree, while Fiji TV will be able to sub-contract IRB games to FBC TV. This, the Fijian Government needs to do if Fiji’s TV viewing public is to enjoy live rugby coverage of the next IRB 7s series, which will be held in Wellington, New Zealand next month.

Energy

ExxonMobil’s LNG plant in PNG’s Southern Highlands is expected to begin its first delivery of gas in June 2014. Photo Supplied

Oil price impacts PNG revenue

by Davendra Sharma A wave of optimism was about to sweep through the finance sector in Papua New Guinea in 2015 as the country appeared to be on track to reap a revenue windfall from sales of oil this year.

But falling world oil prices in December have put pressure on the profitability of PNG’s new US$19 billion LNG project, which began churning out exports last year to China and Japan, the world’s second and third largest economies.

Last month oil companies associated with energy prices and which have heavily invested in PNG’s LNG project, took a battering on the stock market due to collapsing oil prices. The 3.5 per cent fall in global oil prices hit those companies involved in oil and gas projects as the stock values were wiped off like never seen in the past five years.

Australian companies with interests in energy mining or production like Santos and Oil Search in PNG were massively targeted. Santos lost 17 per cent of value in early December and Oil Search, a company that explores and develops oil and gas deposits in PNG LNG lost 8.5% in just one week in December.

A weakening world economy compounded by increased production of shale oil in the United States in the past six months prompted a marked drop in world oil prices last month.

From a top of US$111.87 per barrel of brent crude in June to a low of $78 in early December and $69 before Christmas, the steep decline has raised profit prospects in all industries which are oil-dependent in the world.

But the oil producing countries like PNG and Australia have been pushed into the raw end of the trade – with low prices against unchanged cost structure of preparing and carting the oil to the consumer countries.

Since construction of the new LNG in PNG, the industry has being touted as the next big mining boom – fuelling renewed interest at a time when investment in mining has been 28 Islands Business, January 2015

Investors brace for LNG shock dwindling in the resources-rich country.

PNG’s principal buyer for LNG has been Japan, where the price of the LNG in Japan is intricately linked to the oil price and consequently the falling oil price has put pressure on the viability of the LNG projects in PNG. Low prices improve inflation Low oil prices aid industries that are directly dependent on it like airlines, farming, motoring and manufacturing – allowing them to keep their overall costs down and minimising effect on inflation in all island countries.

By the middle of December, no major airline around the region had moved to lower their fares which they took out when the oil prices were at a high.

If their costs are lowered and earnings are still at the same levels, then their profitability is enhanced in the current oil price turbulence around the globe.

Oil prices hit PNG most As oil has flow-on effect on many associated industries, falling prices will have an overall impact of keeping their inflation down and possibly encouraging reserve banks around the region to cut interests further – which in turn could stimulate the vulnerable economies from around the region.

Analysis from the annual reports of prospectors involved in the PNG LNG venture, highlights that future bountiful riches from the LNG sector are in doubt as factors such world oil trends change.

“Falling oil prices, new competition from the US and lower than expected demand, all serve to highlight that the exports of LNG will be subject to more uncertainty than was the case with mining investment during the early-mid 2000s mining boom,” Energy

Grogonomics analyst Greg Jericho observed in December.

“And in light of the expected massive downgrades in revenue to come in the midyear economic and fiscal outlook, it means governments will need to be very cautious when predicting booms in revenue to flow into their budgets from the LNG industry.”

With much of PNG’s government outlays budgeted on possible income to be derived from LNG project, Port Moresby could find itself in dire straits trying to juggle its development plans in 2015 for the country.

It also has loan repayments tied down to revenue from the LNG development.

The PNG government borrowed $1.2 billion from UBS bank to buy a 10 per cent stake in Australian Oil Search, a principal player in the Exxon-Mobil PNG LNG project. Oil Search has been around in PNG for 85 years and it has 29 per cent stake in the PNG LNG project.

Oil Search’s managing director Peter Botten has said that his company would assist in the government’s plans to deliver roads, schools and hospitals once revenue flow would start from 2015.

How far and fast oil prices can go has truly been tested in 2014, when the Organisation of Petroleum Exporting Countries decided to let the world market forces determine what the analysts said is the first free-fall in prices in decades.

To arrest the decline in prices, OPEC members could have decided to scale back production so as to restore higher prices, but the member countries kept production flowing at the same pace.

The result was that oil was trading at US$69.07 per barrel – a 38 per cent fall in the past 12 months.

While Peter O’Neill’s gamble investments in Oil Search paid dividends right away, it now appears that the share prices of all partners involved in the LNG project would also be hit alongside demand and prices for oil.

Sport

Netball, rugby to dominate 2015

R

by Peter Rees

ugby, netball and the Pacific Games are set to dominate sporting headlines in 2015. Further afield, all eyes will be on a 21 year-old gridiron player of Samoan descent who is being hailed as the next big thing in the United States.

Marcus Ardel Taulauniu Mariota made history on December 12 when he became the first Samoan and Pacific Islander to win the prestigious Heisman Trophy, which is awarded annually to the best US college football player. It is one of the most coveted prizes in American sports.

The Oregon University student is still undecided on making himself available for this year’s NFL Draft. But he will almost certainly skip his final year of college to chase the millions, given he is the now the favourite to be the number one draft pick. The Tampa Bay Buccaneers are the favourite to draft Mariota on April 30.

This year, Mariota led the Oregon Ducks to the Pac-12 title, a spot in the national championship playoffs and a 12-1 record. He accounted for 53 total touchdowns against only two interceptions.

Mariota finished with a passing efficiency rating of 186.3, t h e h i g hest in the country.

These stats helped Mariota become a unanimous Heisman winner receiving 2534 points, or 90.9 percent of the maximum vote possible for a winner — the second-highest percentage of the modern era.

The winner of the Heisman is selected by votes that are cast by sports journalists, previous Heisman Trophy winners, and fans.

Mariota’s rise to stardom is a ragsto-riches story that has captivated the Pacific communities in the diaspora.

Born and raised in Hawaii to a Samoan father from the village of Laulii, American Samoa, Mariota last visited the territory for his grandfather’s funeral in 2011.

A teary Mariota showed the humility and respect which he learned from his Pacific heritage during his acceptance speech.

“To the Polynesian community I hope and pray that this is only the beginning. Young Poly athletes everywhere you should take

this as motivation and dream big and strive for greatness. Faafetai tele lava, god bless,” he said.

While Mariota is set to join a growing stable of professional athletes of Pacific heritage excelling at the highest level in America, rugby and netball are set to take centre stage in 2015.

Closer to home England is hosting the Rugby World Cup from September 18 to October 31 while the current World Rugby Sevens series has been the most competitive in years with qualification for the Rio Olympics in 2016 at stake. It is a big year for netball fans as well with Sydney, Australia hosting this year’s Netball World Cup on August 7-16.

For rugby mad fans in Fiji, Tonga and Samoa, 2015 is shaping up as a do-or-die year for their national teams. Fiji and Samoa are vying to finish the World Sevens Series in the top four ranking teams to earn direct qualification for the Olympics next year.

After the first three legs of the 2014-2015 series, Fiji lies in second place with Samoa dropping to seventh after a disappointing result in South Africa. With six legs remaining in the series and the next one in Wellington, New Zealand on February 6-7, coaches Ben Ryan (Fiji) and Fuimaono Dicky Tafua (Samoa) are dealing with two separate problems.

Fiji has been affected by a player drain to overseas contracts, particularly to clubs in France and Sri Lanka. IRB Sevens player of the year Samisoni Viriviri recently signed a contract with French club Montpellier, while key forward Pio Tuwai decided to put his family first and moved to Sri Lanka.

His decison was simple economics – he was being paid about US$10,000 a year to play for Fiji but could earn more than US$8,000 a month in Sri Lanka. “I love to play

Fiji’s Matila Waqanidrola ... in action against NZ at the 2011 Netball World Champs.

Photo Peter Rees

KEY DATES:

Oceania Netball Series, Suva January 19-22 World 7s Series - Wellington 6-7 Feb; Las Vegas 13-15 Feb; Hong Kong 27-29 Mar; Tokyo 4-5 Apr; Glasgow 9-10 May; London 16-17 May Cricket World Cup, Australia & New Zealand - February 14 March 28 15th Pacific Games, Port Moresby PNG - July 4-18 Pacific Nations Cup, Hawaii/ San Francisco/Ottawa - July 18-28 NFL Draft, Chicago - 30 April - 2 May Netball World Cup, Sydney Australia - August 7-16 Commonwealth Youth Games, Apia Samoa - September 5-11 Rugby World Cup, England September 18 - October 31

for my country and played for it for many years, but I also need money to feed my family,” he told media.

Samoa is embroiled in a standoff between senior players and the union’s administrators over alleged corruption and mismanagement. A damning audit report kept from the public for the past three years has revealed a number of discrepancies and unaccounted for donations towards Samoa’s last World Cup campaign.

The issue almost came to a head on the Samoa national 15s team tour to Europe last November when players almost boycotted their test match with England.

The other big event this year is

the Rugby World Cup with Tonga, Samoa and Fiji aiming to make the knock out rounds of the tournament which is set to be the most competitive since the inaugural event in 1987 given the success of the European nations last November.

Tonga’s Ikale Tahi is aiming for its first ever quarterfinal appearance and will fancy its chances of upsetting Argentina with New Zealand’s All Blacks favoured to take out Pool C. Fiji has a tougher route in Pool A, dubbed the pool of death with England, Wales and Australia the favourites to fight out the two quarterfinal spots. Samoa has not made the quarterfinals since 1995 and will be desperate not to make the same mistake from 2011 with player selection. South Africa are favoured to take out Pool B with Samoa likely to fight it out with Scotland for a quarterfinal spot.

The Pacific teams last hit out before the World Cup will be the Pacific Nations Cup in July. Samoa is also hosting the All Blacks in a historic game in Apia on July 8.

Fiji and Samoa’s national netball teams are also set for a big year starting with the inaugural Oceania Tri series in Suva from January 19-22.

Samoa and Fiji will be joined by New Zealand’s Silver Ferns for the series which will assist the preparations of the island teams for the World Cup in August 2015.

The 2015 Pacific Games are being hosted in Port Moresby, Papua New Guinea from July 4-18. For the first time Australia and New Zealand will take part in the Games since they started in 1963.

Islands Business, December 2014 29

Environment

by David Sheppard

B

The Pacific Voyage to Paris

efore we look forward, we must reflect on one of the most Following lengthy negotiations on a draft decision for advancing crucial international conferences for the Pacific islands - the Durban Platform for Enhanced Action, COP 20 adopted the the UN Climate Convention hosted in Lima, Peru from ‘Lima Call for Climate Action,’ which sets in motion the negotiaDecember 1-12 - a challenging time for many. tions in the coming year towards a 2015 agreement, the process Bringing together over 190 parties to agree on text is no easy for submitting and reviewing INDCs, and enhancing pre-2020 feat - given the different dynamics and circumstances of each ambition. party, however optimism is always present at the start, along with The Secretariat of the Pacific Regional Environment Programme the coming together in the spirit of negotiations for the common (SPREP) was represented at the COP with an effective and focussed good of all mankind. team and supported Pacific Island Countries on issues such as In the end the Climate Change Conference in Lima, Peru went climate change finance, adaptation, loss and damage and the agreedown to the wire. ment on what mitigation measures should be reported by countries Despite a fervent undertaking by the COP President Manuel in the context of the new agreement.

Pulgar-Vidal of Peru to finish the agenda items on time, the COP Preparatory work for the Conference was supported by Climate didn’t complete its work until 3am on Sunday 14 December, almost Analytics; Charles and Associates, and Independent Diplomat, entwo days late. abling SPREP to implement in depth capacity building After intense negotiation in small groups, with on climate negotiations for Pacific island Ministers and Ministers meeting the COP president throughout the senior officials in Majuro in October and also prior to night, in the end a workable compromise was drawn the COP itself in Lima. up. The Ad Hoc Working Group on the Durban PlatBeing well prepared for these climate change neform, also known as the “ADP” had been charged gotiations is vital, and Pacific negotiators had a high with developing a draft text that would be the basis profile in the conference as a result. for a new climate change agreement to be completed Discussions on elements for a draft negotiating in Paris next year. text and on the draft decision advancing the Durban With a fair amount of brinksmanship being exPlatform were both underpinned by a number of broad hibited by some countries, in the end it was skilful political issues. These included differentiation, the role diplomacy on the part of the President that brought of the Convention and its principles and provisions about a conclusion. in the future agreement, and the issue of legal parity Pacific delegates should be congratulated for their Minister Tony deBrum of Marshall between mitigation and adaptation, on the one hand, fortitude in staying the course and keeping a positive Islands. Photo Supplied and mitigation and financial and other means of supspirit going. In particular Tuvalu, on behalf of the Least port, on the other.

Developed Countries remained in the negotiations unThe question of how differentiation will be reflected til the very end and was instrumental in ensuring that in the Paris agreement permeated the ADP negotiaLoss and Damage was not ‘locked out’ of the final ADP agreement, tions. Most developing countries maintained that there should be and also would not be excluded from the new agreement proposed differentiation, both in the 2015 agreement and the INDCs, in for adoption in 2015. accordance with parties’ obligations under the Convention, and We also acknowledge the role of the Lead Negotiator of the reflecting the principles of Common But Differentiated ResponsiAlliance of Small Island States (AOSIS), Ngedikes Olai Uludong bility (also known as CBDR) and equity. and the AOSIS team for their work and commitment in helping to On the other side, the US advocated differentiation in accordance achieve the above and other accomplishments at this conference. with the principle of common but differentiated responsibilities and AOSIS was chaired by Nauru at the Lima Climate Convention. respective capabilities in line with varying national circumstances.

Marshall Islands Foreign Minister Tony deBrum received a Some developing countries also strongly opposed the formulation standing ovation for his impassioned plea to accept the compromise “parties in a position to do so” in relation to providing support to offered by the COP President. Negotiations in Lima focused on out- developing countries for the preparation and implementation of comes under the ADP necessary to advance towards an agreement their INDCs, and to providing additional resources to the Green in Paris at COP 21 in 2015, including elaboration of the informa- Climate Fund, the Global Environment Facility, the Technology tion, and process, required for submission of Intended Nationally Mechanism and the Adaptation Fund, arguing that such language Determined Contributions (INDCs) as early as possible in 2015 disrupted Convention-based bifurcation, effectively dismantling and progress on elements of a draft negotiating text. the wall between Annex I and non-Annex I parties.

30 Islands Business, January 2015

Opinion

Islands assert Asia Pacific role

W

hen the western business world refers to the ‘Asia Pacific’ as a region, the focus is usually on the fast growing economies of Asia and those of the Pacific Rim nations, including Australia and New Zealand. The heart of the Pacific Ocean – the Pacific Islands – is rarely part of the discourse, if at all. Even for the tiger economies of Asia and the Pacific Rim, the Pacific Islands have traditionally been a bit of a blind spot, so to speak.

We know only too well why this has been the case: the tyranny of distance, small populations, high logistics and communications costs all tend to put doing business with the islands in the ‘too hard’ basket for many advanced nations. But what is not apparent to many countries is the growing range of trade and investment opportunities that the islands offer to countries in the Asia Pacific region.

A major stumbling block in promoting trade and investment between the Pacific Islands and Asia is the sheer lack of opportunity for interaction and information exchange. Over the past couple of years, however, the Pacific Island private sector is being represented at one major business event in the wider region: The Asia Pacific Business Forum.

Every year, the Bangkok headquartered United Nations Economic & Social Council for Asia Pacific (UNESCAP) hosts the Asia Pacific Business Forum and the annual EBAC (ESCAP Business Advisory Council) meeting in a different Asia Pacific member nation. Private sector businesses from several Asia Pacific member nations, representatives of world development organisations, funding bodies and financial institutions attend the event. It was held in Bangkok in 2013 and last year, the venue was Colombo, Sri Lanka.

EBAC was set up ten years ago at the behest of former UN Secretary General Kofi Annan, who underscored the importance of the role that business plays in development. This echoes a tenet of the Pacific Islands Forum Secretariat’s Pacific Plan, where the private sector has been recognised as one of the cornerstones of development. In 2013, EBAC invited the Pacific Islands’ participation for the first time. In November 2014, the region was recognised as an Associate Member of EBAC. Pacific Islands Trade & Invest, the Pacific Islands Forum Secretariat’s trade and investment agency represented the region at EBAC in Colombo. Newly appointed Trade Commissioner based in Auckland, Michael Greenslade, was appointed a member of the UNESCAP Business Advisory Council (EBAC) Task Force on Sustainable Trade and Investment. The task force comprises businesspeople from several countries in the Asia Pacific region and undertakes projects that help private sector development across the region. The Sustainability Task Force is one of EBAC’s six task forces.

“The Pacific has a low profile in Asia in terms of Trade presence. Our region is often wrongly narrowly defined as Australia

by Dev Nadkarni

and New Zealand – something we are systematically addressing by our membership and increasing participation in Asia Pacific bodies such as UNESCAP and EBAC,” Mr Greenslade says.

“It is our goal to increase Pacific based membership in such bodies. We also need to ensure the Pacific are actively represented on the advisory board’s Taskforce-driven projects with at least a virtual presence and, over time, to develop participation by businesses throughout the Pacific in EBAC’s Sustainable Business Network,” he adds.

Welcoming the Pacific’s participation at the event and Mr Greenslade’s appointment, UNESCAP Director of Trade and Investment Division Ravi Ratnayake said the Pacific Island region’s importance to Asia Pacific business is vital and that the larger region would greatly benefit by building on this relationship, thanks to closer alignment with EBAC. UNESCAP Economic Affairs Officer Masato Abe also welcomed the appointment and the Pacific Island region’s participation.

Potential outcomes Pacific Island participation at the event was highlighted with Pacific participants wearing ‘Bula’ shirts at the venue. “Our presence has been widely noticed and our wearing of Pacific shirts certainly highlighted our presence and in many ways helped change the thinking of many of the key speakers who deliberately modified their Asian centric views to include the Pacific Islands region in their presentations,” Mr Greenslade said.

Networking opportunities at the events have already brought potential outcomes for Pacific Islands businesses to partner with Asian companies. For instance, Ricky Cordova, President and CEO of Edward Marcs Philippines, Inc., a Manila-based member of the EBAC said he planned to set up a branch office in Fiji and eventually spread out to the Pacific Islands for his renewable energy business.

His company’s innovative modular solar thermal power system can generate power at relatively lower costs of production. This reduces carbon emissions and improves the bottom line for businesses. This would be of interest particularly to the Pacific Island tourism sector as well as commercial buildings, schools, supermarkets, malls, and other business establishments.

A major Singapore based business association has also expressed keen interest in stepping up interaction with Pacific Island businesses and participating in a business mission to the Pacific Islands region some time this year.

In a bid to step up interaction between Asia and the Pacific Islands region, the trade commission is working toward hosting a future EBAC meeting and Asia Pacific Business Forum in the region.

Dev Nadkarni is Stakeholder Relationships Advisor at Pacific Islands Trade & Invest based in Auckland, New Zealand.

Islands Business, January 2015 31

We Say AT this point in his life, Tonga’s new Prime Minister, Samuela ‘Akilisi Pohiva, deserves unreserved recognition on any world stage that may have been graced by the likes of revered trail-blazing leaders such as the African continent’s late Nelson Mandela.

Although a world apart, both men travelled similar roads in their lifetime and despite the obstacles placed in their paths persevered in their determination to ensure greater democratic reforms in their respective countries.

Although probably not their primary aspirations, the two also rose to the highest pinnacle of political leadership in their respective domains - Mandela as President of South Africa and Pohiva as Tonga’s first elected commoner Prime Minister.

Tonga’s only other commoner Prime Minister was Dr Fred Sevele who was appointed to the position by the King. He has subsequently become a Noble.

While Mandela’s struggle was against apartheid, Pohiva’s was against a rigid system of rule where government was managed by the island’s monarchy and representatives of the Kingdom’s nobles.

And, just as Mandela was revered by millions and scorned as a villainous outcast by just as many of his countrymen, ‘Akilisi Pohiva has faced similar taunts and persecution in his 30 odd years of questioning the lack of checks and balances in the Tongan bureaucracy.

As Tonga’s longest-serving People’s Representative in Parliament, Pohiva began his working life as a teacher only to be dismissed from the Tongan civil service as punishment for his criticism of what he has consistently claimed to be a non-transparent monarchy and for his activism in promoting greater democracy.

Pohiva was first elected to the Tongan Legislative Assembly in 1987 and in the years since then, has fought several political battles with the Tongan monarchy over democracy, transparency and corruption.

He has faced numerous charges of sedition and was imprisoned in 1996 on a contempt of parliament charge after reporting on Parliamentary proceedings. He was subsequently acquitted.

He was also acquitted in 2002 of a charge of sedition after accusing Tonga’s monarch of amassing a secret fortune.

He was also investigated in connection with the 2006 Nuku’alofa riots which claimed the lives of eight people and reduced to ashes shops, offices and a bank. Damage estimated at the time was as much as US$60 million.

Pohiva has, however, remained steadfast and committed to his goal of introducing democratic reforms in Tonga. As he once said: “I am confident in what I am doing. It’s my contribution to the country. I’m proud of it. I’ve been doing it for so long I am prepared to pay the costs. If something happens, I am prepared to stand up to it.”

Following constitutional reforms in Tonga, Pohiva formed the Democratic Party of the Friendly Islands and secured twelve of the

17 seats reserved for People’s Representatives in the 2010 elections.

He amassed a staggering 62.5% of the vote in the constituency of Tongatapu 1.

Seizing the opportunity constitutional reforms he had advocated afforded him, Pohiva stood for the Tongan Prime Ministership but lost to Nobles Representative Lord Tu’ivakano, twelve votes to fourteen.

He then accepted a Cabinet position as Minister for Health only to resign in protest against the inclusion in Cabinet of non-elected members.

In December 2013 the international network Parliamentarians for Global Action named Pohiva as the first Pacific Islander to be granted the organisation’s Defender of Democracy Award.

Pohiva’s end-of-December-2014 election as Prime Minister provides him the opportunity to introduce reforms he has fought valiantly for over the last three and a half decades.

Attempting to fasttrack reforms could, however, cut short Pohiva’s new reign as the island Kingdom’s Premier.

His Democratic Party numbers only 10 in a Parliament of 26. The fact that he was able to garner support in a secret ballot from five non-party members of Parliament for the Prime Ministership means he

Pohiva’s end-of-December-2014 election as Prime Minister provides him the opportunity to introduce reforms he has fought valiantly for over the last three and a half decades

32 Islands Business, January 2015

‘Aklisi Pohiva with supporters following his election as Tonga’s new Prime Minister.

Photo Matangi Tonga

has to tread a political tight-rope in the Legislative Assembly.

Pohiva himself has admitted in the past that while Tongans want reforms they also remain loyal to the monarchy.

As prominent Tongan publisher Kalafi Moala said after Pohiva’s election, the Democratic Party of the Friendly Islands will have to re-adjust to its new role in government.

Like Nelson Mandela, ‘Akilisi Pohiva will have to work closely with some of his former “enemies” to realise his own dreams for true parliamentary democracy through elections.

For the moment, he appears to have the support of the other five Independent People’s Representatives.

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

Guest Column

GOOD on OCI for action on World Bank report

by Giff Johnson

Editor, Marshall Islands Journal in Majuro

THESE days, major governments and international organisations issue many country reports and rankings. These report cover things such as the “ease of doing business” in countries, media freedom, religious freedom, human development indicators, trafficking in persons, money laundering and more. Many of these are issued on an annual basis and require engagement of each country being evaluated.

Often, a poor ranking can negatively affect a country — either in the media with negative publicity, or in access to future donor support.

This is why we’d like to commend the Office of Commerce and Investment (OCI) for hosting meetings of government ministry and agency representatives and for mayors to review the World Bank’s Doing Business report 2015 on the Marshall Islands. In our admittedly limited knowledge, we think this is the only time since the Marshalls was on a global money laundering blacklist in the late 1990s that an inter-agency group was pulled together to review an international report about the RMI with the goal of addressing deficiencies to improve the Marshall Islands’ ranking.

When the Marshall Islands was placed on the money laundering blacklist many years back, the government mobilised its forces, bringing together such entities as the Banking Commissioner, local banks, National Police, Attorney General’s office, Trust Company of the Marshall Islands, and others to address the problem. It took several years of concerted work, updating laws, putting various anti-money laundering mechanisms in place, engaging with the international community on the issue, and so on. It produced a positive result: the RMI was removed from the blacklist and has stayed off. The RMI maintains ongo-

“The Marshall Islands ws placed on the money laundering blacklist many years back...” Photo Supplied

ing engagement on the issue so it doesn’t slide back into money laundering blacklist territory.

There is no reason the Marshall Islands couldn’t have a better ranking in the World Bank’s Doing Business report. But government legislation, policies and actions are what determine the ranking. What businesses need is not more rhetoric from government about how it supports the private sector. They need government agencies and departments to

work together to streamline and improve their operations to make life easier for businesses, and put the needs of the private sector, not government offices, as the priority.

The OCI-sponsored national and local government meetings were a positive first step to improving the business climate. “Yes we can” is a good basis on which government representatives can proceed. -- Marshall Islands Journal editorial November 21, 2014.

The Marshall Islands Journal Phone: (692) 625-8143/6 • Fax: (692) 625-3136 • email: journal@ntamar.net • www.marshallislandsjournal.com

THE Marshall Islands Journal is a dual language, once a week publication of the Micronitor News & Printing Company.

It has been the newspaper of record for the Marshall Islands since 1970.

Islands Business, January 2015 33

Pacific Update Solomons’ Sogavare forms 23-member cabinet

Third-time around as Prime Minister of Solomon Islands Manasseh Sogavare has settled into office with the appointment of a 23-member cabinet. The new government included three former prime ministers ministers; namely Danny Phlip who is now Minister for National Development Planning and Aid Coordination; Dr Derek Sikua whom Sogavare has named as his education and human resources minister and Synder Rini who becomes the Finance and Treasury Minister. Rini is no stranger to this portfolio as he has been finance minister on two previous occasions. The sole woman cabinet member holds the rural development portfolio, and out of the 31 pro-government members in parliament, 74 per cent are in cabinet.

Other members of PM Sogavare’s cabinet are; Douglas Ete – Deputy Prime Minister & Minister for Home Affairs; John Dean Kuku – Minister for Public Service; Ishmael Avui – Minister for Justice & Legal Affairs; Dr Tautai Aqikimua Kaitu’u-Minister for Health & Medical Services; Milner Tozaka – Minister for Foreign Affairs & External Trade; William Bradford Marau – Minister for Culture & Tourism; Augustine Auga – Minister for Agriculture & Livestock Development; Andrew Manepora’a – Minister for Lands, Housing & Survey; Festus Sofu – Minister for Infrastructure Development; Commins Mewa - Minister for Communication & Aviation; Bodo Dettke – Minister for Forestry & Research; John Maneniaru – Minister for Fisheries & Marine Resources; Samson Maneka – Minister for Mines, Energy & Rural Electrification; Dudley Kopu – Minister for Provincial Government & Institutional Strengthening; Jimson Fiau Tanagada – Minister for Women, Youth, Children & Family Affairs; David Day Pacha – Minister for National Unity, Reconciliation & Peace; Freda AB Tuki Soriacomua – Minister for Rural Development; Samuel Manetoali – Minister for Environment, Climate Change, Disaster Management, Conservation & Meteorology and Peter Shanel 34 Islands Business, December 2014

Papua New Guinea’s Fisheries Minister Mao Zeming (in blue jacket) with his country delegation at the Western and Central Pacific Fisheries Commission meeting in Samoa. Photo FFAmedia

Winners and losers in Big Samoa Tuna

by Samisoni Pareti* WATCH Pacific island countries enforce their own measures against overfishing of local tuna fishery following the dramatic failure by the Western and Central Pacific Fisheries Commission (WCPFC) to agree to a reduction in fishing efforts at its annual negotiation sessions in Samoa last December.

Already the eight island countries that are members of the powerful Pacific sub-regional grouping of the Parties to the Nauru Agreement (PNA) comprising the Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau, Papua New Guinea, Solomon Islands and Tuvalu are threatening to enforce reductions in fishing efforts in their own waters.

Angovaka – Minister for Police, National Security & Correctional Services.

Cook’s PM resists calls to resign

Cook Island besieged Prime Minister Henry Puna is resist-

Especially worrying for PNA member countries is the fast declining stock of the much sought after Bigeye tuna, in high demand for the world’s sashimi (raw fish) market. Scientists are warning that Bigeye stock is at 16 per cent of its historic population, and PNA members, teaming up with their nine other Pacific island neighbours that together are members of the Pacific Forum Fisheries Agency had wanted the WCPFC to reign in overfishing in the four high sea pockets it manages in the Pacific Ocean.

However, five days of negotiations in Apia’s sprawling but modern convention centre in Faleata, a suburb of Samoa’s capital, produced zero consensus on reducing fishing efforts on bigeye in the high seas. Foreign countries that fish in the Pacific

are referred to as Distance Water Fishing Nations (DWFN), and one of them, Japan was identified as the country that shot down the PNA and FFA proposal.

“Once again the interests of the small Pacific Island nations have been railroaded at this high level meeting raising questions of the ability of the commission to address the overfished stocks and put a limit on stocks that are nearing overfishing,” a disappointed CEO of the PNA Office Dr Transform Aqorau said at the end of the failed WCPFC negotiations in Samoa. “The PNA will regroup and revise its strategy to work outside the ambit of WCPFC and use the existing commercial arrangements to address overfishing in our waters.”

Most probable strategy Dr Aqorau said would be to use the

ing calls to resign after his Cook Islands Party lost its majority in parliament due to successful appeals to the islands’ high court.

Press reports are saying Teina Bishop is the most likely MP to replace Puna as PM. Bishop is leader of the One Cook Islands

Party. His party of 2 MPs has teamed up with the Cook Islands Democratic Party to claim majority numbers in the Cooks 23 seat parliament.

With Bishop’s 2 MPs, the Democratic Party claims is has 12 seats in parliament as opposed

“

Once again the interests of the small Pacific Island nations have been railroaded at this high level meeting raising questions of the ability of the commission to address the overfished stocks and put a limit on stocks that are nearing overfishing,

“

CEO of the PNA Office Dr Transform Aqorau

Meeting PNA’s highly successful Vessel Day Scheme to better manage and conserve the highly threatened Bigeye stock. VDS is a marketplace where allocated fishing days of each PNA members are sold to the highest bidder. When it was introduced, one fishing day was being sold for around US$500 to $2500. Today some PNA members are selling theirs’ from US$10,000 to over $12,000 a day.

Since all boats that fish in the high seas need to participate in the VDS in order to fish in any of the PNA member countries’ territorial waters, experts say there is nothing stopping PNA member countries from only dealing with buyers who will observe reductions in fishing for Bigeye in the high seas. Enforcing its own conservation measures outside the ambit of the WCPFC is nothing to Puna’s 11 seats. Puna has however rejected calls for him to step aside, saying he would await the outcome of the Aitutaki seat by-election scheduled for 17 February.

He also hit out at the One Cook Islands and Democratic Party

new for PNA. After setting up its own secretariat in Majuro, capital of the Marshall Islands in 2010, PNA members had taken unilateral action in closing high seas pockets, seasonal bans on the use of Fish Aggregating Devices (FAD), satellite tracking of boats, 100 per cent coverage of purse seiner fishing vessels and many more. Then WCPFC had no choice but to play catch up, and by the look of things, it will probably do playing catch up too this time around.

It helps that the 8 PNA members collectively controls the world’s largest tuna purse seine fishery and supplying 50 per cent of the world’s skipjack tuna and valued in today’s prices at around US$4 billion. Putting that in perspective, the Pacific’s largest economy Papua New Guinea got its parliament to pass its 2015 budget of US$6 billion. Fiji on the other hand has a US$1.7 billion budget for the same year.

The culprits that put bigeye tuna stock at risk are the longliners.

While 300 purse seiner boats are believed to be fishing in our waters, longliner fleet is said to be 4,000. PNA had wanted the WCPFC in Samoa to reign in the operations of longliners in the high seas by; • Banning the transhipment at sea of bigeye tuna as this would improve the monitoring of longliners’ catches • Periodic closure of fishing by longliners in the high seas to address the excessive longline effort in the tropical longline fishery • Limiting to manual reporting by high seas longliners in the event of Vessel Monitoring System failing exactly parallel to limits on purse seiners • Clarifying the requirement for high seas longliners to carry independent observers • Alternative proposals to im-

prove longline management • A range of proposals to improve the effectiveness of the FAD closure It was however not all doom and gloom at the WCPFC’s 11th session in Samoa last December. On the eve of the start of WCPFC negotiations, the Tokelau Arrangement came into force after nine FFA member countries have signed up. Fiji became the 10th FFA member country to sign into this fishing effort initiative, aimed at better managing the islands’ southern albacore fishery.

FFA’s deputy director general Wes Norris said the Tokelau Arrangement came into force in record time as it was conceived and came into being in just six months.

Clear wins for Pacific members of the WCPFC were the appointment of long time regional bureaucrat, himself a former FFA Director General, Feleti Teo as the new Executive Director of the Commission. Teo was serving as the interim Secretary General of Fiji’s Pacific Islands Development Forum (PIDF), the regional body Fiji had established to rival that of the long existing Pacific Islands Forum Secretariat (PIFS). He had joined the PIDF after completing his maximum two terms of six years at PIFS as a co-Deputy SG. The Pacific’s nominee for WCPFC chairperson Rhea Moss Christian was also endorsed in the Samoa meeting. Although from the Marshall Islands, Christian has been working for the FSM Government in Pohnpei as fisheries adviser to the FSM Congress.

coalition, saying its an act of desperation to appoint as PM the leader of a party that has only 2 MPs in parliament.

new head of the African, Caribbean and Pacific Secretariat to be based in Brussels. Dr Patrick Gomes was elected new SG at a meeting of ACP-member countries in Brussels last month.

He was serving as Guyan Ambassador to the European Union.

Caribbean heads ACP Secretariat

A diplomat from Guyana is the

* Pareti’s coverage of the 11th Session of the WCPFC in Samoa was made possible through funding support from the Pacific Forum Fisheries Agency.

PM Pohiva’s 12-member cabinet TONGA’S Prime Minister-elect ‘Akilisi Pohiva has named a 12men strong cabinet line-up after his landmark win as the country’s prime minister.

He beat the nobles’ nominee for the job, Samu Vaipulu, collecting 15 votes to Vaipulu’s 11 when Tonga’s Legislature met on December 29, 2014.

As PM, Pohiva has given himself the education and foreign affairs portfolio. He’s named the former Secretariat of the Pacific Community IT director Siaosi Sovaleni as his deputy PM who will also look after the information and communications ministries.

The only noble in cabinet is Lord Ma’afu, whose got lands and survey as well as the defence ministry. Lord Ma’afu held the same portfolio in the previous government of Lord Tu’ivakano, and it is widely believed that Pohiva is rewarding him for being the only noble that voted for the long time pro-democracy campaigner. Lord Tu’ivakano is now Legislative Speaker.

Other members of the new cabinet are Dr Sala Piukala as the Minister for Health; ‘Aisake Eke as Minister of Finance & Planning; Semisi Fakahau as Minister of Agriculture, Forestry, Food & Fisheries; Pohiva Tuionetoa as Minister of Police, Fire Services, Prisons and Minister of Revenue Services; Vuna Faotusia as Minister of Justice; ‘Etuate Lavulavu as Minister of Infrastructure; Feao Vakata as Minister of Internal Affairs; Poasi Tei as Minister of Public Enterprises and Tevita Lavemaau as Minister of Customs.

Pohiva’s accession of the top position in Tonga marks the culmination of a political journey that spanned almost four decades.

He got sacked from the civil service where he was working as a teacher in the early 1970s because of his public calls for changes in the kingdom’s political system.

He contested and won a seat in the Legislative Assembly in 1987 and has been in parliament ever since.

Islands Business, December 2014 35

Business Intelligence

SWEET deal ... the new Punjas biscuit factory in Lautoka Photos Punjas Biscuits Ltd

US$12 million biscuit factory opens

by Samisoni Pareti

FIJI’S biscuit exports to the Pacific Islands will increase significantly following the opening of a $25 (US$12.41) million biscuit factory in Lautoka last month.

The venture by Lautoka based business Punjas Group of Companies is part of their latest expansion to their growing chain of enterprises not only in Fiji but around the Pacific Islands.

Punjas has already established itself in seven regional countries including New Zealand and more than fifty percent of its biscuits produced in Fiji will be exported to these countries.

The biscuit factory has been four years in the making, with biscuit production seen as a natural progression for Punjas.

Managing Director of Punjas Biscuits Nitin Punja said they boast having the most modern and state of the art biscuit factory that can be compared to anywhere in the world.

“The popularity of our Fijian made biscuits will help boost the export sector and Fiji’s long term prosperity in the export world,” 36 Islands Business, January 2015

he said.

The factory’s entire manufacturing line has been purchased from Italy with a 70 metre long hybrid oven and packing system.

Apart from breakfast crackers the facility will also produce sweet biscuits such as Scotch Fingers.

Prime Minister of Fiji Voreqe Bainimarama who opened the Punjas biscuit factory said he was impressed with the investment.

“The really impressive dimension about this project is that more than half of the biscuits produced here will be exported.

The quality of those biscuits demonstrates how far we have come as manufacturers in Fiji.

We’re no longer merely exporters of cabin crackers for the Pacific market which we have been for many years but of high grade biscuits destined for the morning and afternoon tea tables of Australia, New Zealand and other countries,” Bainimarama said.

“Here in Fiji we are now making a range of products that we used to import. Not only biscuits and other stuffs but items like exercise books and copying paper

and we are constantly looking for further opportunities to become self sufficient. To keep creating jobs in manufacturing and to identify new opportunities to improve our balance of payments by opening new export markets.”

The opening of the new biscuit factory has created over 100 new jobs and a further 200 will be employed over the next two years.

Punjas started as a small country store at Cuvu in Sigatoka in 1935, from this humble beginning the company has now grown to being one of the largest privately owned companies in the South Pacific region.

It has offices in Kiribati, Papua New Guinea, New Zealand, Samoa, Solomon Islands, Tonga and Vanuatu.

“80 years ago we humbly began with a small grocery store in Cuvu where my grandfather and grandmother worked very hard. My grandmother’s job was to make tasty lemon juice for those who travelled near and far to shop at our grocery shop.

My grandfather’s job was to get ice for the tasty lemon juice.

Together they would serve lemon

juice to their customers,” Nitin Punja said.

“The opening of Punjas world class biscuit factory is a milestone for our company, the nation and the wider Pacific region.”

Today Punjas has 15 different types of companies making soap, flour, rice, spices, tea, and oil to now making biscuits.

This year the company will celebrate its 80th anniversary.

The Punjas breakfast crackers were released to the market on the day the factory was officially opened on December 13.

It will compete both locally and regionally against one of its fiercest rivals Flour Mills of Fiji whose biscuit business has thrived over the years.

FMF has been making biscuits since 1991 and their products are being exported to more than 20 countries including Australia, New Zealand, USA, Tahiti, Samoa and other Pacific Islands.

They have more than 200 employees operating the automated ovens in two shifts seven days a week. The biscuit sector has become a highly lucrative business for Fijian companies.

Free Trade Pact Negotiations Stalled

by Samisoni Pareti

2014 has come and gone and the Pacific is still no way near sealing trade agreements with their closer and bigger neighbours of Australia and New Zealand, nor that of the European Union.

Negotiations have stalled for both PACER Plus (the Pacific Agreement on Closer Economic Relations with ANZ) and the Economic Partnership Agreement Pacific countries of the African, Caribbean and Pacific bloc have been trying to negotiate with the EU since 2003 and there are no signs as to when compromises on the part of both parties would lead to settlement.

Status of PACER Plus Negotiations – Pacific Island Countries versus Australia, New Zealand

The last inter-sessional between Pacific Island Countries which are members of the Pacific Islands Forum on the one side, and Australia and New Zealand on the other was held in Nadi last December. Still no breakthrough came out of it.

The next session is scheduled for March in Vanuatu. In a statement released at the end of the Nadi meeting, Pacific Islands’ Chief Trade Adviser Dr Edwin Kessie confirmed that labour mobility and development assistance continued to be impediments in the negotiations. He said the differences in the positions of the two parties are “significant.”

He also confirmed that the new deadline for the conclusion of PACER Plus is end of 2015.

Initially he had told this magazine that he hopes to wrap up the

by Davendra Sharma

Non-state actors in the Pacific at their December information session on PACER Plus in Nadi, Fiji. Photo Supplied

trade pact talks by end of 2014 or early 2015 at the latest. No breakthrough in the talks caused the Pacific trade watchdog, PANG to call for the suspension of PACER Plus negotiations and the release of the text of the trade agreement to non-state actors in the region.

Responding to PANG’s calls for the release of the text of PACER Plus, Dr Kessie said: “As you are well aware, negotiating texts are confidential and cannot be released to anyone until they are finalised.

This is the practice anywhere in the world. This is mainly because of the fact that nothing is agreed until everything is agreed. Texts keep on evolving, so it is not be advisable to release texts which can change.

To keep NSAs abreast of developments in the negotiations, we hold dedicated workshops for them.”

Status of EPA negotiations – Pacific ACP countries versus European Union

Still no signs of movement in negotiations for an Economic Partnership Agreement (EPA) between ACP member countries in the Pacific with that of the EU. Pacific ACP say the EU is stalling negotiations by refusing to respond to the islands’ counter-proposals,

while the EU is insisting that the islands take their cue from their bigger neighbours of Papua New Guinea and Fiji and go for an interim EPA. The two countries have defended their actions saying an interim EPA was the only way to save their exports to Europe; namely tuna for PNG and sugar for Fiji. While PNG has signed and ratified its interim EPA, Fiji has only signed but not ratified the agreement. Before its general elections last September, the government of Frank Bainimarama said it would provisionally ratify its IEPA, a decision good enough for the EU to continue to buy Fiji’s sugar at a price slightly above world market prices. But Fiji needs to follow up this intent to ratify by actually doing it, which would mean taking the IEPA for endorsement in the Fijian Parliament.

Other members of the Pacific ACP are disillusioned however by the slow progress in the negotiations for a comprehensive EPA. At their meeting in Brussels last December, Pacific countries accused the EU of being inflexible.

They say the Europeans are trying to bring in fishing conservation measures into the negotia-

Fiji exporter hit with million dollar scam A leading food conglomerate in Fiji has been hit by a million dollar scam supposedly involving some of its own employees.

Police in Fiji have confirmed receiving a report on the fraud lodged by the company itself.

The company’s products are exported to 14 countries in the

Bright future for select three

Pacific and further abroad.

Its website says FMF products are available in most islands in the Pacific including the French and American territories.

Its products are also available in the United States, Australia and New Zealand.

Business Intelligence has

been told more than 20 workers were allegedly part of the fraud, which had been going on for a number of years.

A sum of F$4 million was reportedly involved.

Repeated attempts to get the chairman of the company were not successful.

FIJI, Palau and the Solomon Islands have been singled out as countries with bright prospects of high economic growth in 2015 against a backdrop of lower world oil prices.

“While growth in the first three quarters of this year were somewhat softer than we had expected,” says ADB Chief Economist Shang-Jin Wei, “declining oil prices may mean an upside surprise in 2015 as most economies are oil importers.”

While forecast for growth in parts of Asia have been adjusted downwards, the islands region have been given the upward thumps up by the region’s leading lender, Asian Development Bank.

Though Papua New Guinea is expected to lead the region in terms of growth, the ADB reckons PNG’s forecast of 13.4% risk being shattered by the dilemma surrounding dwindling world oil prices as PNG. “The subregion is forecast to grow 5.4 per cent, modestly higher than expected as prospects have improved in some economies,” Wei said.

Fiji and the Solomon Islands have had election of new governments in 2014 and as such are likely to implement new and alternative policies promoting growth and attracting development from donors.

Wei asserted that low prices would trigger off low inflation and low interest rates and provide opportunity to countries to develop their manufacturing sectors. He emphasised. “On the other hand, oil exporters can seize the opportunity to develop their manufacturing sectors as low commodity prices tend to make their real exchange rates more competitive.”

Islands Business, January 2015 37

TRADE MARK CAUTIONARY NOTICE in MICRONESIA, MARSHALL ISLANDS, and PALAU

Islands Business Magazine

Notice is hereby given that Asahi Group Holdings, Ltd, a jointstock company duly organised under the laws of Japan, Manufacturers and Merchants of 23-1, Azumabashi 1-chome, Sumida-ku, Tokyo, Japan, is the sole proprietor in Palau, the Federated State of Micronesia, the Marshall Islands and elsewhere of the following trade mark:

Advertising Rate Full page (205mm width x 275mm height trim size) $2400.00 Half horizontal (180mm width x 120mm height) $1560.00

Used in respect of:Beer – Class 32 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

Quarter page vertical (89mm width x 120mm height) $850.00

For all your advertising needs, contact: Abigail Covert-Sokia (acovert-sokia@ibi.com.fj) or Phone: 679 3303108 Fax: 679 3301423

TRADE MARK CAUTIONARY NOTICE IN NAURU Notice is hereby given that British American Tobacco (Brands) Inc, of 2711 Centerville Road Suite 300 Wilmington Delaware 19808 United States of America 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 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

38 Islands Business, January 2015

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