October 2014

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October

2014

Vol. 40, No. 10 V

Contents Culture

32 Kanak warrior home from P Paris museum

Book Review 33 Sandalwood Blood

Viewpoint

34 New Dynamics in Regional Politics

Environment

35 Reflecting on the Third United Nations Conference on Small Island Developing States

Regular Features

6 Views from Auckland 7

We Say

12 Whispers Bainimarama storms home with massive victory: Eight years after leading the removal of FijiÕ s government, Frank Bainimarama is now the countryÕ s 6th elected Prime Minister.Ñ pages 16-21.Cover photo: MINFO

14 P Pacific Update 36 Business Intelligence

Cover Report

16 Bainimarama storms home with massive victory

Party wins political fight with rugby campaign-style approach

20 20 20 20

Bainimarama offers more of the same Security stays tight after win Focus on unity and inclusivity The thorns in his side

PNG

22 China lifts freeze to allow flagship PNG port project Common service facility for region

23 Air Niugini wary of flying into Qantas path National carrier to sell shares

Politics

24 Flosse loses power in French Polynesia Conviction drives veteran politician out

25 P Pacific voice grows in NZ

Islanders influence election outcome

Business

26 World Bank leads charge for reform Plans attempt to lift lifestyle

27 Vulnerable states qualify for special privileges Assistance packages support lending rates

Education Feature

28 Affordability raises tertiary student numbers 29 University makes its mark at regional showcase 30 V Vocational education boosts hospitality and fashion jobs Islands Business, October 2014

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

Graphic Design Dick Lee Virendra Prasad Main Correspondents Australia Rowan Callick Nic Maclellan Davendra Sharma French Polynesia Thibault Marais Marshall Islands Giff Johnson New Zealand Dev Nadkarni Jale Moala Ruci Salato-Farrell Duncan Wilson Niue Stafford Guest Papua New Guinea Baeau Tai P Sam Vulum Patrick Matbob P Peter Niesi Solomon Islands Evan Wasuka

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Column

National romps home for a third time The very design of New Zealand’s Mixed Member Proportional (MMP) electoral system is meant to ensure a good balance between different political persuasions. The system affords most segments of the political spectrum a share of voice in parliament subject to meeting well-defined, minimal electoral criteria. So, usually, even the party that wins the largest share of votes has to win the support of minor parties to ultimately get the numbers required to govern, ensuring a sense of pluralism.

The party winning the highest share of votes could still find itself out of power if a clutch of opposing smaller parties cobble together a coalition that tote up a share of vote bigger than the single largest vote-winning party if it cannot exceed the opposing coalition’s total even with its own coalition partners. Pre-election opinion polls can scarcely predict with certainty what the post election government could look like.

So even though Prime Minister John Key and the National Party continually scored high in the popularity stakes in repeated opinion polls in the run up to the elections, the complex dynamics of the MMP system meant that a win couldn’t be taken for granted. Wild speculation and political punditry were rife, as always, in the weeks before the polls and though everyone had an opinion, no one really made firm predictions.

Which is understandable because often, the formation of the government following elections finally depends on a minor party – a case of the tail wagging the dog – resulting in rich spoils for the party that plays kingmaker. Veteran New Zealand First Party leader Winston Peters has successfully played kingmaker before and was obviously hoping for a sense of de ja vu this time too, in what might well be his last elections, but that did not happen. Though eminently poised to be the kingmaker, the National Party’s thumping victory simply left him out in the cold.

For in last month’s elections, the Key-led National Party notched a victory of a scale that allows the party to govern on its own, without any need for support even of its traditional minor party allies. This is unprecedented not only in terms of the share of 6 Islands Business, October 2014

Views from Auckland

BY DEV NADKARNI

Prime time ... New Zealand Prime Minister John Key meets businesswomen during his recent visit to Samoa.

vote that it earned but also because no party has won on such a scale while contesting a third straight term in New Zealand history.

This absolute win, clearly an exception to the rule, goes against the very grain of the MMP system, shutting minor parties out of the ruling dispensation completely.

Wild, dirty campaign The win is all the more sweet for Key and the National Party because it came despite the unending barrage of wide ranging allegations that flew thick and fast at him and his party in the weeks in the weeks and months as the elections drew closer. A book titled Dirty Politics that sought to lay bare links between Mr Key’s ministerial colleagues and parliamentary staff to right wing bloggers, as also a host of other potentially show-stopping revelations did nothing to dent his popularity.

Neither did the $4 million plus efforts of German internet tycoon Kim Dotcom, awaiting a hearing for his extradition to the United States on copyright infringement charges, to dish out dirt on the Prime Minister. He has accused Mr Key of colluding and conspiring withUS authorities and Hollywood to facilitate his extradition to the US. Lack of a citizenship prevented him from contesting the elections personally but he formed and funded a political party months before the poll and allied with minor party Mana to form Internet-Mana.

A week before the elections, Dotcom organised US journalist Glenn Greenwald,

well known self exiled whistleblowers Edward Snowden and Julian Assange to address a public meeting in Auckland, where another barrage of allegations were leveled against Mr Key and his government about large scale spying on New Zealanders and the country’s overseas allies. Dotcom even produced a letter allegedly proving collusion between Mr Key and Hollywood moguls to extradite him, which was debunked by all concerned as a fake – something that the Dotcom group has left uncontested so far.

This unseemly brouhaha took all the attention away from the real electoral issues, proving to be the ultimate distraction in an otherwise keenly contested campaign between the two biggest parties, Labour and National. Labour leader David Cunliffe proved a worthy match for Key in all the debates, despite his abrasive and often impatient manner. Though the leaders steered clear of the dirty politics in their debates, the news headlines were squarely hogged by non-issues.

More about personalities This New Zealand election campaign seemed more presidential than ever before.

It seemed to be more about personalities than parties, manifestos and issues. Opinion polls showed even National’s own supporters heavily stacked against the party’s policies on overseas investments and asset sales, but in the end it did not seem to matter: they voted Mr Key back to power.

WESAY “Ill-equipped as they are to detect or forecast terror activities within their idyllic environs, Pacific Island states cannot afford to ignore the possibility of terror organisations and their sympathisers embarking on subversive activities in the islands”

T

he leader of a major western country while recently visiting a Pacific Island nation asked the host Prime Minister if his country could export some of the peacefulness of his country to the world. The Pacific Islands might not have a lot of the material comforts that developed western nations have but they have one intangible commodity that nobody can ever put a monetary value on: peace.

Peace is at a premium across the world. Media channels today carry more reports of killings, bombings, beheadings, rapes, abductions, wars and violence of every imaginable kind round the clock than at any time in the past. It is understandable, therefore, that when terrorism weary western leaders visit countries like those in the Pacific Islands region, the thing that strikes them first is the complete lack of the need for security and the peacefulness of the environment and the people.

But we live in a globalised world. Economies, trade, markets, labour movement are all increasingly becoming seamless. Political boundaries are being reduced to being just that – political. Everything else is becoming borderless. Consequently, distant developments are beginning to have their ripple effects across continents and oceans, thanks in good measure to information and communication technologies that are relegating notions of time and space to mere geographical incidentals.

Nothing in this world though comes without a double-edged sword. Environmental issues, economic crises and security have also become globalised. The Pacific Islands are bearing the brunt of the consequences of the western world’s environmental irresponsibility today. Sea levels are believed to be rising because of the continual pollution of the environment by western heavy industry for a century.

In the past decade, we have also seen how the financial contagion spread to the globe to create the phenomenon of the global financial crisis, which still grips many parts of the world.

Despite their remoteness, these events have adversely affected the Pacific Islands region and will continue to do so in many more ways.

A couple of developments of the past month are indicative of how close the peaceful islands are to the violence and mayhem that has gripped entire regions elsewhere on the globe. For one, the abduction of Fijian peacekeepers on United Nations duty in the Middle East brought home the point that even we in the Pacific are not immune to the menacing threat of global terrorism.

After days of captivity and frenetic negotiations with the captors by several nations and global agencies, the Fijians were let off thankfully with no loss of life or limb but the intervening days raised considerable tensions in the Pacific, particularly Fiji. Though the events were unfolding half the globe across, their ripples were felt and amplified by domestic developments in Fiji where mischievous elements tried to raise sectarian tempers. Threats were made on online forums about

possible retaliation against members of a certain religious faiths if the soldiers came to any harm. Saner counsels fortunately were quick to douse the flames that were being kindled.

The soldiers were let off without further tensions rising – though the terms that were negotiated to secure their release have not been made public – and that put an end to this potentially incendiary event in Fiji. But it went on to show how distant events linked to terrorism could affect places even as benign as the Pacific Islands region.

Just as innocent civilians, aid workers and journalists hailing from far and wide have been abducted and even beheaded, the dangers for all including Pacific Islanders are closer to home than ever before.

The other development that alerted the wider region last month was fast moving events in Australia. The predawn swoop on several New South Wales and Queensland homes around Sydney and Brisbane by Australian Federal Police and state police teams on suspicion of terrorist related activity highlighted the fact that global terrorism was now at the region’s doorstep. News reports after the raids, which followed the Australian government raising its national terror threat level to the highest, alluded to fears that Australian society was being polarised along sectarian lines. Just as authorities in Fiji, following the abduction of the soldiers announced that strict measures would be taken for any retaliatory action on religious communities or groups, the Australian authorities warned its citizens against retaliatory attacks on people based on their religion, appearance and on places of worship. Only a week later, police in Victoria shot dead a man who stabbed two police officers with a knife. He was known to the police as an active supporter of the Islamic State in Australia. These events simply go to show that globalised terrorism has well and truly arrived close to our shores if not already on our shores.

With terror events also unfolding in the Philippines with the reported beheading of German tourists in the southern Mindanao Province last month, the tentacles of global terrorism are well and truly stretching toward the region. The southern province of the Philippines has long been on the watch list of global anti terror forces as it has had a long history of militancy and suspected links to Middle Eastern terror organisations. In fact the recent beheadings have been claimed as being in support of the Islamic State in Syria and Iraq.

Ill-equipped as they are to detect or forecast terror activities within their idyllic environs, Pacific Island states cannot afford to ignore the possibility of terror organisations and their sympathisers embarking on subversive activities in the islands. In fact the islands would be ideal, safe havens to plan and launch terror activities elsewhere in the world. After all, it is because of their remoteness and widely perceived benign nature that the islands often unsuspectingly have been used Syrian crisis touches lives in the Pacific

Islands Business, October 2014 7

WESAY as conduits for human trafficking, drug trans shipments and money laundering over the past several decades.

It is a question of time before the hydra of terror raises one of its many heads in the region. It is not as though Western govern-

ments, particularly those of Australia and New Zealand, would have discounted these possibilities. But it is important for island governments to be extra vigilant and share information with the larger well-equipped neighbours on this looming threat.

“In line with Fiji’s legendary friendliness and the forgiving Pacific spirit, it is hoped that the newly elected government and its leaders will harbour no rancour toward the international institutions that had banned it during its suspension of democracy and will wholeheartedly reintegrate with them”

W

ith the successful completion of last month’s election process, Fijians have hit the reset button on their polity. They have elected their first democratic government in as many as eight years.

International observers who were in the country to oversee the electoral process have overwhelmingly opined that the election was credible and have put to bed any serious misgivings arising from the accusations of malpractice from a section of contesting political parties.

The road of Fiji’s economic progress since independence over four decades ago has been rocky, punctuated with speed bumps and roadblocks every so often. But despite all these periodic political upheavals, Fiji, its people and its economy have always held out promise to the outside world. This has helped it progress better than many other of its sister island countries in the region. Periodic coups certainly have applied the brakes on the country’s economic progress now and then but it has never ground to a complete halt unlike many places in other parts of the world that have been through similar circumstances.

Nor has the law and order situation in the country ever spiralled out of control in all these decades, which is a testament to the friendliness of the largely peaceable Fijian people, for which they are renowned the world over. Of course there have been an incident or two like the 56-day occupation of the parliament by a failed coup leader and the gunning down of armed forces personnel, but none of them have led to situations that could lead to long term turmoil. Fiji has repeatedly shown the determination and uncanny ability to bounce back to a semblance of normality after every political upheaval.

Despite all the tough posturing from the Australia and New Zealand governments since the December 2006 action and despite all the travel advisories and warnings, common folk from those two countries have continued to throng the alluring and welcoming shores of Fiji in ever larger numbers. That indeed is Fiji’s – and its people’s – goodwill as the world’s friendliest nation, a sobriquet it deservedly earned many decades ago.

The allure of Fiji for holiday makers and even the canniest of investors has never really faded in all these decades, though confidence levels might have understandably been running low because 8 Islands Business, October 2014

of the political situation and the perceived uncertainties around the independent functioning of democratic institutions. There are many longtime Fiji observers who believe that if Fiji could progress despite its many political upheavals, where could it have been today if it had had a smooth ride since independence.

For many observers, too, Fiji’s story is akin to the attractive lady who was all dressed up but had nowhere to go. But last month’s successful election that has ushered in a democratic government after nearly eight years might well be the long awaited ticket for a fast and smooth ride on the bus to greater progress. Fiji has all the ingredients for this journey that has been so long in coming. It has a sizable population. It has good infrastructure. It has excellent sea and air connectivity with the outside world. It has a good information and communications network. It has a hardworking business community and a reasonably well-trained workforce.

In fact Fiji has always had a lot going for it. The elections and the reinstatement of a democratic polity will bring a return to the confidence of the outside world to step up its dealings with Fiji. It will not only regain its international standing but has already earned respect for diligently following through on its promise of returning to democracy on a pre-determined time frame. All international bodies like the Commonwealth and the Pacific Island Forum have already begun to welcome Fiji back into their respective folds.

In line with Fiji’s legendary friendliness and the forgiving Pacific spirit, it is hoped that the newly elected government and its leaders will harbour no rancour toward the international institutions that had banned it during its suspension of democracy and will wholeheartedly reintegrate with them. That is because these institutions are the vehicles that bridge countries, continents, interest groups and trade blocs. We live in a globalised world and everyone is connected to everyone else in someway or the other. These connections are broken at our own peril.

The results of the elections prove that Fijians have expressed confidence on the same individuals who presided over the military led Elections will bring a return to confidence

WESAY regime of the past eight years to lead their country’s new democratic government. This points to the fact that they have endorsed the economic progress the country has made under the regime in the past eight years and expects those leaders to get the economy just as well if not better under a democratic polity. This brings great responsibility on the shoulders on the newly elected leaders.

The senior leaders in the new government, who were also part of the previous regime, will also have to consciously alter their style of functioning since they are now accountable to the people that elected them as well as the democratic institutions, which they will have to revitalise if not rebuild and bring up to speed. Democracy means transparency, egalitarianism and inclusiveness. Indeed, the majority party has won the election on these very planks. It is up to its leaders to put their money where their mouth is by walking the talk.

Rebuilding and revitalising the bureaucracy, local government and the many democratic institutions that serve the people will be no easy

task and will require much effort, toil and financing. But it is worth investing in these as expeditiously as possible. For it is when these components of democracy work well that they build the confidence of overseas investors to bring funds into Fiji and of distant nations to step up business links, which have languished for so long.

The good thing is that Fiji has always had the wherewithal to pull it off in terms of human capacity and the willingness to give it a go.

It lacked the perception of a stable polity to turn it into a reality. The successful elections last month and the formation of an inclusive government augur well for the country and the world would sincerely be hoping that the country has turned the corner once and for all.

Fiji has the great opportunity to show the world that it can be done and encourage other developing countries with troubled polities to follow suit.

It’s time to take the covers off Fiji’s age-old tag line and bring it back into the limelight – Fiji, the way the world should be.

“The message here is clear: small and threatened islands need not wait for the big powers to ratify global treaties before action can begin. They need to well and truly help themselves by using their own indigenous knowledge, resources and a little financial help from any source that they can tap into”

S

amoa deserves all the credit for successfully pulling off the third United Nations Small Islands Developing States (SIDS) conference in Apia last month. It was the biggest event of its kind to be ever held in the Pacific with more than 3000 delegates from some 193 countries believed to have attended. Samoans commendably worked hard in a united manner to put up this big show and won praise from all quarters. Hosting of the conference successfully would have definitely given Samoans the confidence of comfortably organising big events in future.

Predictably, like all such events across the world, the conclusion of the conference produced a lengthy outcomes document, which by all counts teams have been working on months ahead of the conference. The document acknowledges all the pledges made in previous conferences for small islands, climate change, development issues, trade, sustainability, environment and renewable energy besides a host of other topics. It further promises to tackle challenges posed by these issues in the years to come.

The document, named the Samoa Pathway, calls upon all concerned around the world to take an action oriented approach to deal with the situation that small island states around the world are facing. Many of these relate to climate change and the maze of interconnected issues like sustainable economic development, alternative energy, threatened livelihoods and shelter and food and water security. Like

all documents, it is long on words and we can hope the action will be matched in the months and years ahead.

There is little doubt that most of the challenges that small island states face today stem from the effects of climate change. Other challenges are isolation, particularly in the Pacific Islands context, the tyranny of distances and the lack of economic scale because of their small populations. These problems have been known for decades and much has been promised all along in terms of measures, ideas, co-operation and funding. The Samoa Pathway also essentially makes these same promises. But will they be delivered in the fullness that the situation demands?

Unlikely, at least as long as most of these are tied to the issue of climate change, particularly anthropogenic climate change, on which there is hardly any agreement on how to tackle among the world’s big as well as emerging industrial powers. The answer to ten out of ten problems in life is money, goes an old adage, and the same holds true for the problems facing the small island nations. With no agreement on climate change issues especially among the emerging economies of China and India, which did not even attend last month’s climate summit in New York, money will always be hard to come by.

But despite these hurdles, it is heartening to note that many small island states, even in the Pacific Islands region, have risen to the occasion and carved out their own path toward sustainable developIslands Business, October 2014 9

WESAY ment. The one sector in which the most progress is noticeable is the field of renewable energy. In our region, we have the first country in the world that is fully powered by renewable energy – Tokelau. No other region or country anywhere in the world can claim this. Other countries like Tonga, Samoa, Fiji and Papua New Guinea have long been experimenting with organic fuel additives such as coconut oil.

Also, street lighting is increasingly being powered by solar energy, as in the case of Nauru and Kiribati and the power of gases from waste is being harnessed for various applications. On the margins of last month’s conference, the region’s largest solar array was also inaugurated in Samoa with assistance from the New Zealand Government. In fact, the strides that the Pacific Islands region has made in harnessing renewables in such a short time is nothing short of impressive and has been acknowledged as such by world agencies.

This goes to show that despite the intransigence of the big and developing industrial and economic powers on acting on climate change at the global level, much can be achieved with sincere, concerted efforts at the regional and local levels with whatever financial help that can be garnered from development and aid agencies. Many such small but successful and effective local measures were showcased at last month’s conference.

In fact much more interesting and engaging than the broad and general pronouncements made at the plenaries were the dozens of side events at the SIDS conference. While some were about harnessing local and indigenous knowledge to scientifically acquired knowledge in countering climate change, conservation and enhancing food

Small islands must help themselves

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and water security, others were about small experiments generating energy with unconventional materials such as a range of abundantly available agro waste.

The message here is clear: small and threatened islands need not wait for the big powers to ratify global treaties before action can begin. They need to well and truly help themselves by using their own indigenous knowledge, resources and a little financial help from any source that they can tap into. This could be development aid, corporate social responsibility funding, even funds raised by community efforts. Most of these successful small projects showcased at SIDS were not big-ticket projects that had the backing of the big funding initiatives; rather they were the initiatives of small, local efforts.

These were a working instance of the now famous adage of ‘Think global act local.’ It is a well-known fact now that bottom up initiatives tend to always work better than top down ones. A one size fits all approach thought up by an expert group using all sorts of statistics in a distant ivory tower can hardly be expected to work as well as a homegrown solution to a local or regional problem that is worked on by local groups with local and indigenous knowledge with the help of some committed funding source.

Indeed, this is the logical way forward if we are to see any meaningful action on the multiple problems faced by small island states.

Time is too precious to wait for the world to wake up and commit sincerely to addressing its problems seriously. They need to take up cudgels on behalf of themselves and embark on their own local solutions with local materials and combining local, indigenous knowledge with global knowhow.

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

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

Whispers Pigs can fly: Judging from the number of conspiracy theories that were being bandied about in Samoa last September during the country’s successful hosting of the United Nations Conference for small island developing states, one would be forgiven for thinking pigs could fly. The constant push to forge new partnerships with the world’s private sector on sustainable development led some to think that the governments of the world are conceding defeat in the battle for the wise management of finite resources. Some others likened the idea of getting profit-oriented entities to lead the push for sustainable development to that of asking Dracula to guard the blood bank.

Take the cake however was the real worry by some Pacific island leaders that the push to get them to graduate from least developed country classification to developing country status is only being done to relieve bigger and wealthier countries of the burden of pouring millions of aid money to their smaller and poorer southern neighbours.  Nauru’s furore: Word is out that the Pacific’s chair of the lobby group, the Alliance of Small Island States is vacating the top job prematurely. Ambassador Marlene Moses has been AOSIS chair since 2012, but the whisper is that her masters in Nauru want her out of the regional bloc, which has been a vocal group in international climate change treaty negotiations. Yet to be known is the fate of two Pacific islanders she recruitted to lead climate change negotiations for AOSIS. The lady ambassador is currently Nauru’s Permanent Representative to the United Nations based in New York.  Legal clatter: More than eyebrows were raised in the corridors of power in Honiara when two legal eagles clashed in a rather unconventional fashion. A high court judge reportedly told a seminar that their work has been hampered by the frequent overseas travels of a senior public lawyer. When told of this public criticism, the “learned” counsel retorted “erroneous, unfounded, provocative and threatening” allegations, followed up by a verbal warning of legal action. By the last count, the judge had responded to the threats 12 Islands Business, October 2014

Government Buildings in downtown Apia, capital of Samoa. Photo by Samisoni Pareti

Bank zeroes in on political interference: A new study has revealed gross political interference in the running of state-owned companies in the islands of the Pacific.

The ‘Finding Balance 2014: Benchmarking the Performance of State-Owned Enterprises (SOE) in Island Countries’ study was the work of the Manila-based Asian Development Bank.

The report particularly singled out Samoa and Papua New Guinea as countries where political decisions had badly affected SOEs. “While the SOE Act prohibits non-directors from influencing board decisions, ministers and cabinet have historically had significant operational control over the SOEs,” the ADB report said of Samoa. “The recent reforms should lessen direct ministerial control over SOE board deliberations and make Cabinet directions more transparent, yet early indications are that ministers – individually and collectively through Cabinet – continue to intervene in SOE matters. This is contrary to the SOE law.”

The ADB report highlighted three cases of what it termed as “inappropriate ministerial interference.” It included the Samoa Ports Authority where “Cabinet was active in supporting – if not driving – a series of non-commercial investments by Samoa Ports Authority. The resulting Samoa Tala 24 million (US$10.168m) debt burden, combined with the poor profitability of the investments, drove the company toward insolvency. It was rescued with a ST63 million (US$26.692) government transfer in 2012.”

Other two cases identified were Cabinet’s decision in March 2010 to direct the Agricultural Stores Corporation to transfer a ST2.7 million (US$1.143m) land to another state owned enterprise for ST0.80 million (US$338,000), and the directive to the Samoa Airport Authority in 2012 by the responsible minister to “discount the rent charged to a private sector tenant for a large section of airport land.” by using more verbal labels like “hysterical” and “pathetic.”  Frustrating six-year term: Did the outgoing SG of the Pacific Islands Forum really describe his six year term as frustrating? To be fair, the journalist who posed the question did ask Tuiloma Neroni Slade to describe his term as head of the region’s political body in “one word.” Slade took the bait and replied: “frustrating.” He however reneged and asked journalists in the room

to ignore what he had just said after he read a handwritten note that was hastily written for him by a senior aide who was also in the room! The Samoan ambassador and jurist will complete his term at the Forum by the end of the year.  Ocean (non) Alliance: The much talked about Ocean Alliance was launched with a lot of fan-fare in Samoa, although organisers are still not responding to questions about the leadership and make-up of the

Whispers new regional partnership. It’s the initiative of the Suva-based Pacific Islands Forum Secretariat and its Secretary General gets the Ocean Commissioner title. The Secretariat however would not answer queries from this publication as to why this role did not go to any other regional bodies that deal with the ocean as part of its work, organisations like the SPC, the FFA, or SPREP. Indeed when PIFS organised a high-level panel to talk about the Ocean and its resources in Samoa last month, most regional bodies that deal with the ocean were invited to speak although the non-inclusion in the panel of the Honiara-based FFA stood out like a sore thump!

the 3rd SIDS Conference last month only to depart as a Samoan prince! He could only stay for two days but it was enough to earn him the Samoan princely title of Tupua.

The UN SG was bestowed the princely title during a lavish Samoan cultural ceremony in the village of Saleapaga on the main Samoan island of Upolu. The village is where Samoa’s current PM comes from.

It could not be established however whether the title of Tupua now means that the UN Secretary General will have to contribute in the village’s fa’alavelave, the cultural or social obligations. 

 Exemplary leadership: Many things made Samoa’s hosting of the largest ever conference to be held in the Pacific the most successful. Hard to forget however was the scene one morning of the 3rd International Conference on Small Islands Developing States as delegates were being bussed into the Conference Village at the sprawling Sports Complex in Tuanaimato. A twin cab had stopped just before Gate 4, its hazard lights switched on, and the driver was seen picking up a fallen coconut tree leaf from the concrete sidewalk, and loading it onto the back of the vehicle. Immaculately dressed in the Samoan colourful puletasi (dress), the driver was none other than Faalavaau Maiava Perina Jacqueline Sila, the CEO of Samoa’s Conference Secretariat.

Thumbs-up Pacific Youth: Young Pacific Islanders who were flown to Samoa last month persisted in having their voices heard by world leaders and officials at the huge United Nations Conference. However it appears some of our young delegates had to put up with a lot more than their older delegates. Apparently some were flown in by a UN agency, only to be housed in a religious commune, almost 20 kilometres from the town centre and each given $50 as meal money for the entire two weeks of their stay. Transport to the conference venue left early in the morning and returned late in the afternoon. Those who missed the transport fended for themselves, looking for as much as T$25 to pay for a cab. Such a far cry from UN executives and world leaders who were billeted in 6-star rooms on the luxurious cruise liner the Pacific Jewel at US$350 a night!

  Fiji’s loss is Tokelau’s gain: Fiji’s well known artist Danny Rae Costello has moved his family to Samoa, lured no doubt by better opportunities that are on offer in the Polynesian island nation. One of those opportunities came by last month with the commissioning of a climate change song about Tokelau, one of the world’s smallest coral atoll nations, which lies north of Samoa.

Called My Tokelau, Costello composed and added his voice to the lyrics with the vocal backing of his own daughter. 

PNG interference: Constant interference by politicians in PNG Telikom didn’t go un-noticed in a recent regional study report.

Moves to replace the telecommunication company’s CEO, directing the country’s National Development Bank to reduce its interest rates and overturning the regulator’s decision to approve electricity tariff increases undermine the performance of these public utilities, the report says. It also proposes that Fiji’s power utility; the FEA should be reclassified from a non-commercial SOE to a commercial SOE.

His Highness SG: United Nations chief Baan Ki-moon arrived in Samoa to attend

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Islands Business, October 2014

Pacific Update

A deportation, a stateless person and u

By Tony Wilson

W

ithin days of Joe Natuman (pictured) becoming Prime Minister in May following a well-planned and executed takeover of power from Moana Carcasses that many did not see coming, rumblings of a Carcasses-led bounce back motion surfaced. And they have never gone away. So for many it was to almost a relief when the Carcasses motion was lodged with the Speaker Philip Boedoro on August 29, but he decided that the motion was not in order, declaring six of the 27 MPs signatures on the motion to be invalid.

Opposition leader Carcasses and his team took the matter to the Supreme Court. On September 8, Justice Stephen Harrop dismissed the Opposition’s application and found in favour of Speaker Boedoro.

In essence in an 83-point judgment, Justice Harrop said that there were simply not enough signatures to warrant the calling of an extraordinary session of parliament.

While the no confidence motion was before the court, it emerged that a former

Chinese citizen, Ruihua Yau, had been declared stateless by the Vanuatu government.

The Secretary General of the Citizenship Commission, John Enock Ware said that the agency revoked Yau’s certificate of Vanuatu citizenship in August. He said the Commission found Yau received Vanuatu citizenship in 2004 after just living in the country for seven years. Under Vanuatu’s Citizenship Act, a foreigner must live in Vanuatu for 10 years before being eligible to apply for citizenship.

The Carcasses Government had appointed Yau as Vanuatu’s Deputy Ambassador in Beijing but this was terminated when Natuman became Prime Minister. A successful businessman in Port Vila where he employs around 30 people, Yau has re-applied for Vanuatu citizenship.

Natuman had made some general comments warning expatriates and investors not to become involved in Vanuatu’s politics.

Then the government dropped another bombshell, announcing they had deported Australian lawyer Robert Herd on September 3 because they had strong evidence that he had been involved in local politics – specifi-

cally in relation to the failed motion of no confidence. Herd, the principal of Herdlaw, a Brisbane-based firm, had been involved with the Vanuatu Government in the past, working on the Strata Title Act. Herd is known to be a good friend of Carcasses, so a pattern was emerging. Friends of Herd told Islands Business that he had no inkling about the deportation.

This deportation sparked a great deal of debate, but none more fiery than the riposte between political leaders. Carcasses launched a scathing attack on the government, describing the deportation as illegal under Vanuatu law and ‘one that sends an appalling message to the international investment community.’

“This disgraceful behaviour has singlehandedly destroyed our country’s international reputation and credibility for the international investment community, which is vital for Vanuatu’s future development and prosperity,” he said.

“The government in issuing the deportation order by the Minister of Internal Affairs claimed that the deportation was pursuant to a section in the Immigration Act that only empowers the minister to act where there is a threatened breach of national security, defence or public order.”

The response came from acting Prime Minister Ham Lini (while Natuman was attending a conference in Samoa), and it was equally explosive.

“Nothing will stop this government from

CNMI heads for 3 elections in November

By Haidee V. Eugenio

I

n yet another first in its history, the U.S. Commonwealth of the Northern Mariana Islands is headed for three elections in a single month in November with a recordbreaking 18,000 registered voters.

Election issues are centred on fixing the CNMI’s immigration, stabilising the utilities and hospital services, prolonging the retirement system’s lifespan, and fully reviving the tourism economy amid a US$3.14 billion exclusive Saipan casino to be built starting this year.

The CNMI will hold its general elections on November 4, 2014 to elect the governor and lieutenant governor, a nonvoting delegate to the U.S. Congress, members of the CNMI House of Representatives and

14 Islands Business, October 2014

CNMI Senate, mayors for the three islands, municipal councils and for the first time, an attorney general. There are 99 candidates for 44 positions.

Governor Eloy S. Inos also declared a special election to coincide with the November 4 general elections, saving the government nearly $100,000 just by holding the two on the same day.

That special election will fill a vacancy in the Senate, created by a constitutionallyrequired resignation of a senator representing Saipan after he was certified as a candidate for lieutenant governor. There are three candidates for this special election.

Besides declaring a special election, the governor also signed on the same day a bill that prohibits a person from running for more than one public office in a general, local

or special election.

“We find this bill to be an appropriate public policy and I therefore approve it into law,” the governor said before signing the measure.

A third election, which is a gubernatorial runoff race, is also “highly likely” in midNovember when none of the four gubernatorial teams gets at least 50 percent plus one of the votes cast during the general elections, Commonwealth Election Commission executive director Robert A. Guerrero said.

Governor Inos himself is seeking election in November under the Republican Party.

As lieutenant governor, Inos automatically became governor on February 20, 2013 in an unprecedented turn of events when then governor Benigno R. Fitial resigned. Fitial was facing an impeachment trial in the Senate after the House impeached him over charges

nease completing what we set out to do,” he said. “One of the biggest challenges of successive governments since the birth of coalitions 23 years ago has been the rise of special interest groups and individuals who have their own selfish interests and agendas.

“Such groups and individuals have no other objectives other than to live off the government as parasites while furthering their own ends through their political alliances and preying on so called leaders’ weaknesses and shortcomings.

“It is sad that Herd happens to fall into that category of people.

Vanuatu does not welcome such people because they do not appreciate the hospitality of our country, nor do they have any respect for our laws. People like Herd obviously do not care whether or not their action will compromise our future as a country.”

Under section 53A of Vanuatu’s Immigration Act, the Minister may remove any non-citizen who he believes is involved in activities that are detrimental to national security, defence or public order.

While the shockwaves from that deportation were still being felt, it was revealed Gilles Daniel, a former political adviser to the Carcasses Government, had his Vanuatu citizenship revoked on September 8.

Daniel, a French national, had already been deported from Vanuatu in 2005, but challenged his deportation with the court ruling in his favour and later the government awarded him US$370,000 in compensation.

Vanuatu Citizenship Commission secretary John Enock Ware told The Independent newspaper that the commission had revoked Daniel’s citizenship because it had been fraudulently obtained. They said his name had never been registered at the Citizenship office.

But Daniel, who is another close friend of Carcasses, described the decision to The Independent as ‘unfair and ridiculous.’

“The commission did not even call me to get my side of the story,’’ he said.

He said he has health issues and may leave Vanuatu.

Natuman warned that there could be further deportations if foreign investors were found to be involved in Vanuatu politics.

of corruption, neglect of duty and felony. The incumbent governor and his running mate are being challenged by a Democratic tandem and two independent teams.

The CNMI elections chief said even with nearly 18,000 registered voters, actual voter turnout in the general elections could be between mid-70 to mid-80 percent.

“We have averaged a voter turnout of mid-70 per cent to mid-80 per cent, higher than national average in voter turnout, most especially during gubernatorial elections,” he said.

The United States national election voter turnout averages only below 60 per cent since at least 1972.

In the 2009 general elections, there were 16,146 registered voters in the CNMI. During the 2005 general elections, the number was 15,118.

Guerrero said the election commission prepared 20,000 ballots for the general elections, and nearly 18,000 for the special election.

The CNMI’s elections are generally peaceful, smooth and well organised, and that’s exactly what Guerrero expects again this coming November.

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Islands Business, October 2014

Cover Report

POLLING Day .... voters prepare to cast their votes in the Fiji elections at Bhawani Dayal College, Nausori. Picture by Samisoni Pareti

Bainimarama with massive Party wins political fight with rugby camp

V

By Dennis Rounds

oting in Fiji’s 2014 General Election signaled overwhelming public support for incumbent Prime Minister Voreqe Bainimarama and gave legitimacy to his unelected rule over the last eight years and unprecedented endorsement to the future “roadmap” he has laid out for the country.

Prime Minister, Rear Admiral (retired) Voreqe Bainimarama played his political campaign like a veteran Sevens Rugby coach and the result was more than just a multitude of admiring fans. He won the 2014 Fiji General Election, some would say, almost single handedly for his Fiji First Party (FFP).

From the campaign sidelines, it was evident that Bainimarama’s game-plan was simple: Give Fiji First’s opponents the space to smother themselves in their own internal political turmoils while his party focused on its trump card – Voreqe Bainimarama himself and his vision of an all-inclusive Fiji – equal citizenry, equal contribution to the country’s progress and equal responsibility for its economic status.

16 Islands Business, October 2014

A sizeable portion of Fiji First’s campaign budget focused on television and newspaper advertising projecting Bainimarama’s leadership qualities and his now famous candidate number - 279.

With Fiji Labour Party (FLP) leader, Mahendra Chaudhry redcarded even before the start of the political race, Bainimarama’s only real foe was the Burebasaga confederacy paramount chief, Na Marama Bale na Roko Tui Dreketi, Ro Teimumu Kepa, of the Social Democratic Liberal Party (SODELPA).

As forewarned in our September issue, newcomer, Biman Prasad, of the National Federation Party (NFP) proved a point as the “dark horse” leading a team of new and untested players. To the surprise of many, he came out third best - well ahead of the Fiji Labour Party.

Political leadership As predicted in our September issue, voting in Fiji’s 2014 General Election focused largely around the person voters felt best equipped to lead Fiji into its “new political era.”

From the start of the vote count, it was clear that a large number of voters had put the events of December 2006 behind them and

Cover Report

storms home victory aign-style approach had chosen Bainimarama as the person they felt could best lead Fiji into the future.

Voreqe Bainimarama amassed the highest number of personal votes from the start and maintained his lead throughout.

Personal votes for Bainimarama amounted to 202,459 – a staggering 68.9 percent of his Fiji First Party’s total vote tally of 293,714.

Votes for Bainimarama alone, amounted to an impressive 40.7% of the total 496,364 valid votes counted.

The Social Democratic Liberal Party (SODELPA) leader, Ro Teimumu Kepa came in a far second behind Bainimarama at 49,485 personal votes (9.96 percent of total valid votes cast) and the NFP’s Biman Prasad even further back at 8097 personal votes (1.63 percent of total valid votes cast).

The NFP’s game-plan was to project itself as a party with a clean slate standing up against a “coup-maker.” The tactic paid off just enough to allow the party to come in from the cold and re-assert itself as a political force in Fiji. The party had failed to win any seats in the 2006 General Election.

SODELPA, on the other hand, continued to focus on issues such

MAN with a mission ... Fijian Prime Minister Voreqe Bainimarama with his grandchild at polling day at Vatuwaqa Primary School. Picture by Pacnews/PINA Islands Business, October 2014 17

Cover Report

OPPOSITION Leader ... Ro Teimumu Kepa of SODELPA with voters

as land security and promotion of the cultural identity of indigenous Fijians. The fact that the party’s voter support came largely from the indigenous population should serve as a reminder that these issues remain contentious. Despite this, however, it would be safe to say, from individual polling station counts, that a significant percentage of indigenous Fijians also voted for Bainimarama’s Fiji First Party.

COUNTING room ... Fijian poll officials count votes at the National Tally Centre.

their right to vote freely.

The Multinational Observers Group also described the Fijian Elections Office and election workers as “competent, professional and committed in performing their duties, sometimes under challenging circumstances.”

“Despite compressed timeframes, a complex voting system and some restrictions in the electoral environment, the conditions were in place for Fijians to exercise their right to vote freely. This was a credible election,” the MOG preliminary report concluded.

Allegations Given the “newness” of the Fiji 2014 General Election voting system, there were numerous administrative issues which surfaced early in the actual voting process. Some of these included Free and Fair Elections shortage of ballot papers at one polling station The MOG’s choice of the word “credible” and exclusion of voter names from some assigned rather than “free and fair” to report on the Fiji polling stations.

General Election was significant. The preliminary At least five political parties, SODELPA, FLP, report also said: NFP, the Peoples Democratic Party (PDP) and “Despite earlier restrictions on public meetOneFiji Party complained to whoever would ings, political parties were able to mobilise and listen that irregularities included alleged uncandidates were free to campaign. The campaign secured ballot papers, identical serial numbers period was peaceful. However, civil society paron different ballot boxes, broken seals on ballot ticipation in the process was restricted. boxes and “stuffed” ballot boxes. The allegations “The media in Fiji made good efforts to cover were dismissed by the Fiji Elections Office and the election and political parties were, to varying the Fiji Electoral Commission as baseless and an degrees, able to communicate their messages to unwarranted indictment against those who had the public. However, the restrictive media frameHOT seat ... Fijian Elections Supervisor Mohammed worked hard to maintain the integrity of the polls. Saneem. Photo by Invictus Pictures work, including potentially onerous penalties, The Multinational Observers Group (MOG), limited the media’s ability to examine rigorously comprising representatives from thirteen counthe claims of candidates and parties.” tries and two political groupings (the European Union and the MelaAny final report by the MOG, which might venture to label the nesian Spearhead Group), also found the Fiji elections “credible.”

Fiji 2014 General Election as “free and fair” will have to address in Invited by the Bainimarama government to observe the 2014 greater detail observations on the:  media environment in Fiji leading into the General Election General Election, the MOG delivered a preliminary report in the legal frameworks in place which may or may not have hindered midst of official vote counting declaring that: the outcome of the a more robust political environment 2014 Fijian Election is on track “to broadly represent the will” of the  “fear” factor, including the Fiji military’s choice to undertake Fijian voters, and; the conditions were in place for Fijians to exercise 18 Islands Business, October 2014

Cover Report

Photo by Invictus Pictures

Final say ... Fijian Elections Commission chair, Chen Bunn Young

routine public marches on the eve of the election and also  unwarranted fear of “civil unrest” should one particular party win the “financial level playing field” in terms of campaign ad vertising.

Kamisese Mara’s Alliance Party government.

The new political system in Fiji will also require a re-alignment of political party structures in which the Fiji Labour Party – dominant in Fiji politics since 1985 – will need to re-assess its future and consider burying the hatchet with former colleagues and now bitter rivals who Fiji’s Future political landscape lead the People’s Democratic Party (PDP).

Bainimarama’s unprecedented performance at the polls gives his Despite not winning a seat in Parliament the PDP attracted more Fiji First Party an absolute majority in Parliament – 32 seats in a 50 votes (15,864) in the election than the FLP (11,670), whose loss led seat Parliament, or 64 percent control over parliamentary decisionto leadership issues being aired publicly by at least one party member. making. The number, while affording BainiThere is a general acceptance that there will STATISTICS: marama the opportunity to pass new laws as have to be a “changing of the guards” within his government so wishes limits, however, Total registered voters: 591,101 the FLP in the near future if the Party is to his chances of amending Fiji’s 2013 Consti- Total valid votes counted: 496,364 remain a political force. tution should a need arise. Any change to Total invalid votes: 3714 (0.75%) It is also generally accepted that the surthe Constitution would require a 75 percent Percentage voter turn-out: 84% vival of individual political parties, henceapproval from members of Parliament and forth, will have to take on board the fact FFP % of total valid votes cast: 59.17% a further 75 percent of registered voters in that in the “new” Fiji, racial politics is now a national referendum. While the argument SODELPA % of total valid votes cast: 28.17% a thing of the past. has been made that there is no real need NFP % of total votes cast: 5.45% for Bainimarama to change the 2013 Con- Parliamentary Make-up: FFP – 32 seats; International Relations stitution, the reality is that the 75 percent SODELPA – 15 seats; NFP – 3 seats Most foreign governments, including requirement is now a double-edged sword.

Australia and New Zealand have welcomed In a media interview following a Thanksgiving service at Suva’s Fiji’s return to parliamentary rule. However, despite overtures National Stadium on Sunday 21 September, Bainimarama lamented towards more cordial ties in recent years, the Bainimarama governthe fact that his party did not win all 50 seats. And, while he had ment is expected to continue to keep its two larger neighbours at promised, in what was dubbed as his “victory speech” to serve as arms-length - at least for the foreseeable future. It is also unlikely that Prime Minister for all the people of Fiji including his opponents, Bainimarama will abandon his foray into the role of regional political he went on to say he was saddened that the country would have in leadership by dismantling regional structures he was instrumental in Parliament some people who had “won their seats through lies.” establishing such as the Pacific Islands Development Forum.

The next four years will tell whether Bainimarama will transit Bainimarama’s overwhelming win at home will not go unnoticed beyond his last eight years as an unelected Prime Minister and his by his Pacific political peers. Whether this will lead to a weakening success in the 2014 General Election as one of the most popular Prime of Australian and New Zealand “influence” in the region is a chapter Ministers ever elected in Fiji to the status of being a real “statesman.” yet to be written.

The Fiji First Party line-up of elected parliamentarians gives Baini(Disclaimer: The author was contracted on a consultancy basis by Cardno, the Managemarama the opportunity to offer the country the most ethnically and ment Contractors to the Multinational Observers Group, to provide media support services. intellectually diverse Cabinet Fiji has had since the days of Ratu Sir His views expressed here are his own and in no way reflect the MOG’s work or findings).

Islands Business, October 2014 19

Cover Report

Bainimarama offers

By Netani Rika I f the people of F iji had expected a smooth, less confrontational political life after the September elections, they will be disappointed.

One day after being sworn in as Prime Minister, Voreqe Bainimarama was at his vitriolic best, heaping scorn on political rivals and mounting a scathing attack on the Methodist Church.

But at the United Nations in New York just days later he changed tack.

“I pledge that I will govern for the benefit of all our citizens, no matter who they are, where they come from or who they voted for,” he said.

“Mine will be an inclusive Government over the next four years. I will be the leader of all Fijians, for all Fijians. And as we move our beloved nation forward, I am determined to leave no-one behind.

“In that spirit, I extend a hand of friendship to my political opponents.”

In a pre-election interview the former army strongman who rose to power after removing Laisenia Qarase in December 2006 said he wanted a Parliament without an opposition. Indeed, he had hoped to win all 50 seats on offer in the elections. But it was not

The thorns in his side Fiji’s Methodist Church continues to influence close to a quarter of the population, much to the chagrin of the country’s now legally elected head.

In eight years Voreqe Bainimarama has been unable to end the church’s dominance in the lives of the iTaukei.

And while he has disbanded the Great Council of Chiefs in line with the university thesis of Finance Minister Aiyaz SayedKhaiyum, traditional leaders maintain a quiet presence in national politics.

In his push for a single national identity, Bainimarama has attempted to address the issues of land and religion, central to the iTaukei psyche.

While his policies have pleased the farming community and big business, the chiefs and the church remain unconvinced.

Unless there is a major shift in their values, these bastions of indigenous tradition will remain thorns in Bainimarama’s side throughout his term as PM. 20 Islands Business, October 2014

Melting pot of ethnicities ... Fijian voters at the Draiba Primary School polling station on Election Day in the capital, Suva. P

to be, with the far right Social Democratic Liberal Party (SODELPA) taking 15 seats and the centrist National Federation three.

Labelling all others “losers” or “liars” on national television and in radio and newspaper interviews Bainimarama has signalled that he intends to beat all opponents into submission.

For eight years Bainimara ma has had total control of Cabinet, the Civil Service and the media.

He has faced no scrutiny in the areas of governance and public accounts which are so crucial in democracies for simple accountability and transparency.

All that is about to change with a Parliament in which one third of members have waited close to a decade to raise their voices.

They will demand to know how development projects were allocated and where money was spent.

Contracts and tenders will come under

Security stays tight aft

By Netani Rika Despite a landslide election win and claims of nationwide popularity, the security cordon around Fiji’s Prime Minister Voreqe Bainimarama has not weakened.

In fact, once it became obvious that he had won the election, troops guarding his residence stepped up their alert levels. For several months they had stood at the gates to his Ratu Sukuna home with sidearms only. Now they maintain their posts in full battle gear.

His retinue of six to eight armed gurads continues to travel with Bainimarama as he remains Fiji’s most heavily guarded leader in history.

A similar human cordon surrounds Bainimarama’s closest ally, Finance Minister Aiyaz Sayed-Khaiyum.

Tight security was in place as Bainimarama was sworn in at Government Houselast

Security alert ... armed soldiers at Bainimarama’s swearing in at

month with armed soldiers patrolling the gardens and manning the three gates to the Presidential residence on Suva’s Queen Elizabeth Drive.

The usual single army sentry and orderly at the main gate were supported on the day by four police officers and three soldiers in

Cover Report

more of the same

Photo by Invictus Pictures

scruitiny allong with military spending, details of loans from mainly Chinese banks and the thorny issue of the salaries of the members of the interm Cabinet. These questions will be asked and responses given on live television and the Internet.

This is not a case in which - as has been in recent years - a journalist asks a question and then wilts as Bainimarama or (Finance Minister) Aiyaz Sayed-Khaiyuim berates the scribe for being “anti-government” or

ter win

“stupid.”

In Parliament Bainimarama will face his first real test as head of government.

Faced with a similar situation in 1992, Sitiveni Rabuka used all his considerable charm at home and abroad in a transformation which saw him become a suave, sophisticated statesman. A powerful orator, he debated well, was quick on his feet and a gracious host to foreign counterparts. Bainimarama has yet to show any of these traits.

His first hurdle - winning the elections was easy compared to the challenge ahead.

If he wants to win the 2018 election, Bainimarama will need a makeover. The time for bullying tactics is over. To be a prime minister for all, he will need to change course, at least in terms of personality.

During the election campaign Bainimarama goaded opponents into petty arguments and name calling. The opposition took the bait to its detriment. The challenge will be for the NFP and SODELPA to maintain a high level of debate in Parliament focussed on issues of national importance.

If Bainimarama continues with his streetfighter tactics, the integrity of Fiji’s parliamentary and governance structures will remain firmly in the hands of the Opposition.

The question is: Will it rise to the ocassion?

‘‘

I don’t want to meet liars in Parliament

full combat gear including helmets and live ammunition.

There have been no public threats to the safety of the two men or the government after the election.

No reason has been given for the high level of security.

‘‘

Government House, Suva. Photo by Invictus Pictures

– Fijian Prime Minister Voreqe Bainimarama

Focus on unity and inclusivity Fiji’s new government appears to be designed to support the governing Fiji First Party’s promises of inclusivity and unity.

With 20 ministers - 15 full and five assistants - it is by no means the largest in the country’s history although only 12 members of Fiji First will remain on the backbench after ministerial appointments.

Using the normal practice of restricting membership to full ministers, Prime Minister Voreqe Bainimarama’s Cabinet will comprise six former military officers (30 per cent), two women (10 per cent), five Indo-Fijians (25 per cent).

With a 15-member Cabinet, 46 per cent of elected Fiji First MPs will be full ministers and 30 per cent of Parliamentarians will sit in on Bainimarama’s decision-making processes.

A notable absence from Cabinet is former Health Minister Dr Neil Sharma, a casualty of poor delivery of services throughout the country.

Former Minister for Women Dr Jiko Luveni has been appointed Speaker of Parliament, Sharma has moved from the Health Ministry to the backbench.

Dr Jiko is one of eight women to enter Parliament - four Fiji First MPs , three from SODELPA and one National Federation Party.

Meanwhile the three main parties in Fiji’s election had women presidents, all of whom won seats.

With four women ministers making up 20 per cent of the Government front bench, and this will be highest number of females at this level of politics since Laisenia Qarase’s 2001-2006 government. Qarase appointed five women in a 28-member Cabinet.

Meanwhile, work has started on preparations for the first session of Parliament.

Three senior officiials from Australia’s parliament are in Fiji to train secretariat staff and the parliamentary whips on processes, procedures, tradition and rules.

The Parliament will be housed in chambers used by the colonial Legislative Assembly and by Fiji’s legislature until the 1987 coup.

Islands Business, October 2014 21

PNG

SHAPE of the future ... artist’s impression of the proposed port facilities in Madang, Papua New Guinea

China lifts freeze to allow flagship PNG port project Common service facility for region

By Sam Vulum Work on the flagship project of Papua New Guinea’s fisheries industry, the Pacific Marine Industrial Zone (PMIZ) in Madang will start after the China Export and Import (Exim) Bank agreed to lift its freeze on the US$74 million loan for the project.

The project, among its other objectives, aims to establish a competitive regional common service facility for all Pacific Islands Countries to consider as an investment opportunity that will serve as a major offloading center for tuna caught from within their respective fishing grounds.

For PNG, it aims to maximize the economic benefits of the marine resources especially tuna for the country and its proposed partners/stakeholders and create economies of scale good enough for the locators of the proposed marine industrial zone to be internationally competitive.

Project contractor China Shenyang International Economics and Technical Cooperation Corporation is mobilising and will proceed to complete the geo-technical studies within eight weeks and the design will be completed before PNG’s National Executive Council (NEC) can meet and agree to the final designs to allow the construction to start in early 2015.

The Chinese bank had frozen the loan because of a long court battle by Madang based landowners and other loan requirements that the PNG Government had to meet including meeting the loan counterpart funding requirements.

22 Islands Business, October 2014

The lifting of the loan followed representations made to the Chairman and President of the Exim Bank, Li Ruogu in Beijing by the Minister for Trade, Commerce and Industry, Richard Maru and his delegation which include PNG Ambassador to China, Christopher Mero, Trade, Commerce and Industry Secretary John Andrias and Treasury Officer, Damien Horiambe in September.

Minister Maru assured the chairman that PNG Government has met all the preconditions for lifting the freeze and will park K39 million (US$15.716m) in the 2015 budget to meet the counterpart funding requirements.

The loan was obtained in 2011 to enable the government to complete the project before the five year grace period for the loan expires in 2016.

“This was critical because the PNG Government needed to start generating income from its investment in PIMZ before it can start servicing the loan.

“We only have three years of the grace period left and need to commence the construction as soon as practical,” Minister Maru said.

Maru said he assured Chairman Ruogu that he and his delegation had met the President of China Shenyang International Economic and Technical Cooperation Corporation Limited, the contractor of the project and agreed on an action plan with a strong support from the PNG Government and other key stakeholders to assist the contractor to complete the project within 12 to 16 months.

Maru said both the PNG Government and the Exim Bank want to see the project

completed within the five year grace period.

The minister said that PMIZ project when completed and fully tenanted, is expected to create over 20,000 new jobs and will provide significant business opportunities for the impacted communities of Kananam, Rempi in Madang and other PNG Small and Medium Enterprises and State Owned Enterprises as well.

He said the completion of the landmark project will position PNG to stop issuing anymore fishing licenses to fishing companies that do not have onshore fish processing facilities in the country.

“Big winners who are harvesting all our fisheries resources are the licensed boat owners who are bringing all our unprocessed catch overseas to their processing factories as middlemen,” he said.

PMIZ is expected to house up to 10 tuna canneries and a fleet base that will rival anything in Asia.

The PMIZ will provide wharfing, berthing, processing and other facilities for national and regional fishing operators at a 215-hectare site 30 kilometres north of Madang. The zone will help mitigate against limitations currently hampering the industry, by creating economies of scale and greater efficiency.

The project represents a US$161 million investment over two phases. China Eximbank is providing the US$74 million concessional loan to finance the first phase of construction, while the PNG Government is contributing an additional US$23 million.

Niugini Tuna Limited—a partnership between the R D Tuna of the Philippines, Fairwell Fishery Group of Taiwan, and Tri Marine International of the US—has already signed an agreement with the PNG Government to operate at the zone. Its activities will include tuna fishing, tuna loining and canning, and fishmeal processing.

The operation is expected to employ 1500 people in its initial phase.

R D Tuna already bases its tuna canning facilities in Madang.

PNG

Air Niugini wary of f lying into Qantas path National carrier to sell shares

By Davendra Sharma As leading regional airline operators announced a disastrous past 12 months in profit trading, Papua New Guinea’s Air Niugini declared it will sell its ownership in an attempt to attract new investors.

Mega losses by Australia’s Qantas and Virgin Airways – the two main carriers of tourists to the region – has prompted a new round of price wars for traveller market as the airlines prepare for the busy Christmas period.

Government insiders in Port Moresby assert that the national carrier has potential to turn into profitability should Air Niugini inject some private sector funds. With the proposed move, the government will lose 49 per cent of Air Niugini to foreign and local investors.

New shareholders will ensure the national PNG carrier – one of four largest stateowned-enterprises along with PNG Ports, PNG Power and Telikom – stay afloat and remain “sufficiently viable and competitive to face similar challenges to Qantas and Virgin,” noted Ben Micah, Minister for Public Enterprise and State Investment Minister.

Australian flag carrier Qantas last month posted an unprecedented record loss of A$2.84 billion (US$2.65) billion amidst a global doom in aviation industry, plagued by high fuel costs and fierce competition from subsidised rivals. As part of its bid to turn around its fortunes, Qantas quickly moved to axe 5000 jobs, defer new aircraft purchases, cut routes and put on hold plans to expand its low-budget offshoot carrier, Jetstar.

Qantas has regularly complained that government restrictions prohibit the airline from sourcing capital from outside its limited shareholder base, unlike its rival Virgin – which is majority-owned by state-backed Air New Zealand, Singapore Airlines and Etihad – all of which are profitable in their own right.

But even with a wide spectrum of support from highly profitable airlines like Air New Zealand and Singapore Airlines, Virgin has not been able to generate dividends for its shareholders over the last 10 years since entering the Australian and South Pacific markets.

Blaming weak consumer sentiment and high taxes, Australia’s second largest carrier, Virgin copped a net loss of US$332 million this year, more than triple the huge loss of prior year.

Both Qantas – through Jetstar and its seatsharing alliances with regional carriers like Fiji Airways, Air Vanuatu, Air Tahiti Nui and Air Niugini – and Virgin are leading movers of tourists from Australia to the region.

Whilst tourist numbers have been growing over the years to the region, so too has been the cost components of the airlines.

“The 2014 financial year has seen one of the most difficult operating environments in the history of Australian aviation,” said Virgin chief executive, John Borghetti, echoing similar concerns raised by his Qantas counterpart, Alan Joyce.

On the contrast, Air New Zealand posted a big lift in profits and a comparable bottom line of US$220 million this year, the airline’s third consecutive year of profits and representing a hike of 45 per cent on last year.

New Zealand is the second largest source of tourists for the South Pacific, where tourism and related industries are the biggest spinner of foreign exchange for the foreign aid-dependent economies.

Air New Zealand attributed its high profitability to introduction of new fuel-efficient aircraft like Boeing 787-9 long-range jet, growth in passenger market share and “forming alliances with the right partners in the right markets.”

Chief executive Christopher Luxon noted that its strategic links with Singapore, Cathy Pacific, Etihad Airways and Virgin, the airline has been able to tap into a range of Pacific Rim markets. “Strong alliances such as this provide us with a platform for sustainable growth, allowing us to open up new routes and markets across the Pacific Rim.” Through its links in the South Pacific – with code share agreements with Fiji Airways, Air Rarotonga, Air Tahiti Nui, Air Vanuatu and Virgin – Air New Zealand has become the envy of many competitor carriers.

PNG lags behind Fiji Despite a concerted effort to woo tourists through air travel and about a dozen cruise

ships every year, PNG has suffered from poor publicity and attacks on foreign visitors.

Fiji, the island nation destination for most foreign visitors to the region, attracts up to 345,000 Australians every year, followed by 115,000 New Zealanders, 58,000 Americans, a growing number of travellers from China, Canada, Japan and Europe.

Despite seat-sharing alliance with Qantas – Air Niugini has not been able to lure tourist in large numbers from Australia or other destinations. PNG attracts only around 165,000-180,000 tourists from Australia, New Zealand, Japan, China and Europe every year.

Australian travellers accounted for 46 per cent of visitor arrivals to PNG each other.

Aviation insiders believe that for Air Niugini to stay viable, it needs to focus not just on foreign markets but also domestic revenue. The airline’s 31 aeroplanes fly 10 international routes especially Australia and Asia in seven destination countries and 25 domestic spots.

Seats at half price To muster local support for privatisation, Air Niugini plans to offer 50,000 seats at half price on domestic routes over the next 12 months. Some towns and commercial centres are not easily accessible by road from Port Moresby, so air transport is the sole means to get across from one end of the country to another.

Airfares on domestic routes in PNG are among the most expensive in the world – thanks to a monopoly enjoyed by Air Niugini.

Micah told Australian media that privatisation of the national carrier will not only benefit the country’s tourist sector but also the economy as a whole. Companies like Air Niugini “which operate in a competitive business environment and have significant capital requirements, do not need to be wholly state-owned.”

ADB pushes for privatisation Air Niugini’s shift in ownership is also advocated by the Asian Development Bank, a regular donor to the region. In its latest recommendations to lifting economies, the ADB suggested that the SOEs contributed only per cent to the country’s gross domestic product, “suggesting inefficient capital utilisation.”

“Returns on assets and equity remain low,” it said in reference to PNG’s four main stateowned-enterprises.

Initially owned and back by Qantas and the national government in PNG, Air Niugini was founded in 1972 and now flies to Sydney, Brisbane, Cairns, Honiara, Manila, Hong Kong, Tokyo, Fiji and Singapore.

Islands Business, October 2014 23

Politics

WAY out ... French Polynesia’s Gaston Flosse has lost his seat. Photo by Nic Maclellan

Flosse loses power in French Polynesia Conviction drives veteran politician out

By Nic Maclellan After exhausting all avenues of appeal, President Gaston Flosse of French Polynesia has been removed from office following his conviction for misappropriation of public funds. The decision ends the career of the dominant figure in French Polynesia’s political life since the 1960s.

Flosse was a fierce opponent of independence for French Polynesia and a champion of France’s 30-year nuclear testing programme. In the post-nuclear era, he was a close friend and political ally of former French President Jacques Chirac, but the election of Presidents Nicolas Sarkozy in 2007 and Francois Hollande in 2012 weakened his political protection by the French state.

Flosse was convicted last year in a case of “ghost employees,” receiving a four-year suspended prison sentence, €125,000 fine 24 Islands Business, October 2014

and three years loss of civic rights. Because of his age, Flosse did not face imprisonment, but the loss of civic rights would make him ineligible to serve as President. Last April, the French Senate lifted his parliamentary immunity, opening the way for the application of his sentence.

After a legal appeal to the Cour de Cassation in Paris was rejected in July, Flosse appealed for a presidential pardon from President Hollande. However the Socialist Party leader refused to grant this pardon and on September 5, the French High Commissioner in Papeete announced that Flosse would be removed from office.

This was not the only legal case involving a politician who began life as a simple teacher and ended as a multi-millionaire. In recent years, Flosse has been under investigation or charged with offences over the misuse of public funds in the sale of Anuanuraro atoll and the construction of the Taaone Hospital; and the use of public funds from Pirae mu-

nicipality to provide water to his villa. In another case, he was convicted in the Office of Postal and Telecommunications (OPT) affair, involving the payment of nearly US$2 million of kickbacks from businessman Hubert Haddad.

Flosse was first elected as head of the district of Pirae in 1963, and continued as the mayor of this township until 2001. He served in French Polynesia’s local assembly from the early 1970s and came to office as the head of the local executive in 1982, after the electoral victory of his Tahoeraa Huiraatira party. When this post was transformed into the presidency under French Polynesia’s 1984 autonomy statute, Flosse served as President on and off for 30 years.

In 1978, he was also elected as a member of France’s National Assembly in Paris, serving in this position for a decade. In 1998, he was elected as a Senator in the French Senate. Last year, an unauthorised biography dubbed him “The man who would be King.”

In an unexpected electoral victory in 2004, Oscar Temaru of the Tavini Huiraatira party led the Union for Democracy coalition into office. However Temaru was unable to govern French Polynesia for an extended period, facing a combination of ministerial inexperience, systematic opposition from the French government and the economic blow of the global financial crisis in 2007-08. During the decade after the2004 Taui election, the leadership of French Polynesia changed 11 times, with the presidency passing back and forward between Temaru, Flosse and former Flosse ally Gaston Tong Sang.

Flosse’s return to office in May 2013 elections was a significant comeback, with the President launching a range of initiatives, including business deals in China and proposals for a $3 billion casino and hotel development at Mahana Beach in Tahiti.

But Flosse’s legal position was fragile and his political victory was overshadowed by the May 2013 decision of the United Nations General Assembly to re-inscribe French Polynesia on the UN list of nonself-governing territories - a striking victory in Oscar Temaru’s long campaign to obtain international recognition for the Maohi people’s right to self-determination.

Flosse’s former son-in-law Edouard Fritch has been proposed as the next leader for Tahoeraa Huiraatira, but the departure of “the old lion” will fundamentally transform French Polynesia’s politics.

Politics

NZ Prime Minister John Key with National MP Peseta Sam Lotu-Iiga on the campaign trail.

Pacific voice grows in NZ Islanders influence election outcome

By Peter Rees auckland: over 330,000 Pacific people living in New Zealand now have a bigger voice in parliament following September’s General Election which saw the National Party re-elected for a third consecutive term in Government. The campaign trail was littered with revelations, lies and “dirty politics,” but voters stayed faithful to Prime Minister John Key. Seven Pacific Members of Parliament will be sworn into the 51st New Zealand Parliament on November 20, the most ever Pacific MPs and one more than the six Pacific MPs elected in 2011.

Two Pacific MPs have departed: New Zealand First List MP Asenati Lole-Taylor lost her place after controversially being demoted down the party list and Labour’s Indo-Fijian MP Rajan Prasad has retired.

The new face is Labour’s Manukau East MP, Jenny Salesa, a former policy analyst who was motivated to stand after returning to New Zealand after nearly a decade living in the United States and finding Pacific communities were worse off than when she had left. She becomes only the second Tongan to enter New Zealand’s parliament following Labour’s Carmel Sepuloni, who returns to politics after narrowly losing her seat by recount in 2011. Sepuloni is one of five Labour MPs elected joining Salesa, Su’a William Sio (Samoan), Kris Fa’afoi (Tokelauan) and Poto Williams (Cook Islander).

National returns its two Pacific MPs, Maungakiekie’s Peseta Sam Lotu-Iiga (Samoan) and List MP, Alfred Ngaro (Cook Islander). The nature of New Zealand’s Mixed Member Proportional (MMP) system

The Maori/Pacific and youth (18-24 years old) demographic groups were mostly to blame for that damning statistic, even though the overall turnout was higher than in 2011.

While the election result was a big loss for the left, it was a small victory for them in regards to the Pacific vote. Pre-election polls predicted the Pacific vote was fragmenting.

There were big efforts by National and the Conservatives to sway the Pacific vote away from Labour and they campaigned hard in the traditional Pacific stronghold of South Auckland. However, Pacific voters stayed loyal to Labour. In Auckland alone where two thirds of New Zealand’s total Pacific population resides, 65.9% voted Labour against 15.8% for National. Su’a William Sio and Jenny Salesa won comfortably in the South Auckland electorates of Mangere and Manukau East respectively, while Carmel Sepuloni easily took out the new Kelston electorate in West Auckland.

Down South, Poto Williams held on to the Christchurch East seat which she won earlier this year in a by-election. In Wellington, Mana’s Kris Fa’afoi was re-elected for another three years. Reflecting on the increase in Pacific representation in parliament, the most senior Pacific MP Su’a William Sio said: “The fact we have these seats is a very significant achievement and reflects that this is our home.”

could see List candidate Fia Turner become National’s third Pacific MP depending on the outcome of the Special Votes which were still being counted at press time. Turner is 53rd on the National Party list.

National won 48% of the total vote giving it an overwhelming majority of 61 seats. So emphatic was the National Party’s winning margin, they can govern alone without their coalition partners from the previous term; the Maori Party, United Future Made in Fiji by and ACT Party, who have four MPs between them. New Finest Liquor Limited Zealand’s left leaning parties took a massive hit with Labour (24%) Handcrafted in Fiji suffering their worst defeat in 92 years.

The Greens (10%) and New Zealand First (8.9%) did not fare any better, failing to gain enough votes to form a coalition Government with Labour. The Internet Mana party also failed to get into parliament, polling well below the 5% threshold (1.3%) and their sole MP Hone Harawira lost his seat. Close to a Lot 29, Waqavuka Road, Namaka Industrial Estate, million New ZeaPO Box 2218, Nadi Fiji • Tel: (679) 6720499 • Fax: (679) 6720498 landers of voting age Email: triple3fiji@connect.com.fj • kingsfiji@connect.com.fj did not cast their vote.

Islands Business, October 2014

Business

World Bank leads charge for reform Plans attempt to lift lifestyle

By Davendra Sharma iMagine M a region where Mobile phones and inTerneT access are as common as public buses. Also for a moment picture a region where words like obesity, poverty, illiteracy and gender inequality do not get a mention in government annual budget platforms or development plans.

Then think of social issues like urban sprawl, domestic violence and inadequate jobs becoming a thing of the past. Even brain drain from the South Pacific shores to greener pastures abroad may not be a concern for island bureaucrats or the populations at large because lucrative opportunities will be generated at home.

If all these sound too illusionary, think again, asserts Axel van Trotsenburg, the World Bank executive leading the charge for leading donor countries and multinational agencies in lifting lifestyle standards in the South Pacific.

“We want to bring about a structural change in the South Pacific, not just for a few years but long term, for decades to come,” the World Bank Vice President of East Asia and Pacific Region told Islands Business.

With 30 per cent of its assistance directed in grants and about 70 per

Islands Business, October 2014

SOCIAL thinker ....

Axel van Trotsenburg Photo: Supplied

cent in credit with generous 40-year, zero interest loans, the World Bank has already made significant inroads in dealing with pressing issues in 12 countries.

In Canberra to sign off a new contribution of A$20 million (US$17.453m) from Australia for the World Bank’s Pacific Facility Four last month, van Trostenburg said he wanted to focus on accelerating growth and reducing poverty in Papua New Guinea, Samoa, Tonga, Vanuatu, Solomon Islands, Tuvalu, Kiribati, Fiji, Palau and new-comers, the Marshall Islands and Federated States of Micronesia.

Arm to the vulnerable Complementing Australia’s injection of aid in the region, the World Bank hopes to “achieve our shared priorities of economic growth, women’s economic empowerment, sustainable oceans and fisheries, disaster risk reduction and healthy populations in the Pacific” in an initial span of four years to July 2018.

Primarily aimed at continuing or complementing earlier World Bank-initiated projects in the region, the PF4 will be directed at “improving the living standards of the Pacific’s most vulnerable people.”

If you ask van Trostenburg what recent achievements the World Bank can relate to in the islands region, he quickly refers to cable connection between Tonga and Fiji, affordable internet access in Tonga, upgrading of aviation facilities in a range of countries, ensuring cheaper power cost through new energy power infrastructure in the Solomon Islands and a host of agriculture projects in PNG. But the next four years will be bring about more concrete results for the region: Fixing 250 km of roads and 15 bridges as well as maintaining 500 km of roads to ensure one million locals have better access to local produce markets, schools and health centres; mobile phones to 500,000 locals of which 60 per cent would be women would complement two million who under World Bank grants received mobile phones over the past five years.

Around 300,000 more residents will benefit from new broadband connectivity; new electricity access to 500,000 people in the islands, including women who struggle to make ends meet and where household incomes are in the bottom 40 per cent.

Since coming on board at the World Bank in February 2013, van Trotsenburg has uncovered amazing statistics about the Pacific islands – where he reckons there are communities living on just US$2 a day, there is no “one size fits all” way of fixing problems and that there can be cultural sensitivities in each country which needs to be addressed cautiously.

Being in charge of a portfolio of US$30 billion in loans, grants, credits and trust funds for East Asia and the Pacific regions, he reckons a four-shared approach to the region - natural disasters, poverty and equality, infrastructure and urbanisation and making governments work for people would drive the World Bank dollars further in the region in years to come.

Business

Vulnerable states qualify for special privileges Assistance packages support lending rates

By Samisoni Pareti Graduation of least developed countries is no conspiracy by bigger and wealthier developed states to absolve them from helping countries that are in need of special assistance, says the United Nations UnderSecretary General Gyan Chandra Acharya (pictured).

Agreeing that small island developing states (SIDS) which fall under the LDC classification have a special case because of the vulnerability of the environment they live in, reclassification though does not necessarily mean the loss of special privileges like lending concessionary rates and access to finance under the official development assistance (ODA).

“Cape Verde is an example. When they graduated in 2007, their ODA was about US$190m. Now in 2011 and 2012, they are

still getting $300m in ODA. So it’s not reduced and there are no specific linkages between graduation and ODA reduction, absolutely no linkage. There have been cases where they have been getting better access upon graduation,” says Under Secretary General Acharya.

The UN senior official spoke to Islands Business magazine in the margins of the 3rd International Conference on SIDS that Samoa successfully hosted last month. He is also High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States. He’s originally from Nepal.

Much discussion at the Samoa conference centred on LDC graduation. Samoa has already done the move and the focus now is on smaller economies like Tuvalu and most probably Kiribati as well. Under Secretary

General Acharya agrees that in these small atoll nations, a vibrant private sector hardly exists. He disagrees, however, with the notion that in roping in the private sector to join UN member states for the renewed push for sustainable development, it was admission by governments that they have failed to resolve the problem on their own.

“This is the real nature of the private sector, how do we really balance this with the search for profit and social equity inclusiveness involving the communities, involving the women, the youth, the income generating activities and then also looking at sustainability.”

The senior UN official said the UN Conference in Samoa last month generated much interest from global companies interested in looking into investment opportunities in the Pacific. He said these included the Technical Centre for Agriculture and Rural Cooperation (CTA), Google in the area of marine park and ocean conservation, Matson Shipping in Pacific sea transportation, Royal Caribbean in cruise tourism, ANA on wave energy and Digicel in the field of disaster risk reduction technology. A SIDS Global Business Network has been established to pursue these interests, added UN Under SG Acharya.

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Islands Business, October 2014 27

Special Feature

GROWING numbers ... graduates of the University of the South Pacific Laucala Campus. Photo supplied

Affordability raises tertiary student numbers

By Samisoni Pareti Affordability of university education in terms of fees and easy access are a key objective of three universities in the Pacific.

Already, all three universities based in Fiji – the Fiji National University (formerly the Fiji Institute of Technology), University of Fiji (UOF) and the University of the South Pacific (USP) are reporting increasing student numbers due to affordable fees.

While not releasing any figures, FNU Vice Chancellor Dr Ganesh Chand says they have had a healthy increase in student numbers in all of their colleges and the national training and productivity centre. Projections are that enrolments would continue to increase in the next five to 10 years.

“We have seen good growth with around 2000 enrolments this year compared with under a thousand 5 years ago. Staff levels are now around 150 and financial health is good,” says Professor Richard Coll, Vice Chancellor of UOF, whose main campus is located in Saweni, between Nadi International Airport and Lautoka City on the west coast of Fiji’s main island.

Equally, the USP is reporting a swell in student enrolments. Said Professor Rajesh Chandra, Vice Chancellor and President of the USP: “As early September 2014, enrolment had increased by six per cent over last year, and the commencing enrolment was up by four per cent. The university now has a 28 Islands Business, October 2014

total of 28,165 students, as compared to the total enrolment for 2013 of 24,986. Back in September 2009, we had a total of 19,068 students.”

For Professor Chandra, a strong appeal of the USP is the quality of its programmes.

He says USP qualifications are recognised and highly regarded, making its graduates employable.

“USP is a widely respected institution, with strong links to governments, other universities, and businesses. Employers know of USP and trust that (its) graduates are capable, driven, open-minded, and have great English and ICT skills. Development partners also have confidence in the University. A growing USP Alumni Network also offers graduates access to job opportunities and insights into different markets and professions. We have over 44,000 alumni.”

Smaller class sizes and personalised teaching sets UOF apart, according to Professor Coll. FNU on the other hand says apart from delivering on quality education, accessibility is one of their stronger points.

“This means that we are delivering on the (Fiji) Government’s objective of accessibility to tertiary education for every child in Fiji,” says Dr Chand. “Accessibility also means that we are not an exclusive club - where only students from the rich and powerful families find entry and comfort. We will continue to deliver on accessibility for all at FNU. “Our interface with industry is (also)

unique. No student graduates from FNU without a period of actual work experience in industry. This period ranges from a minimum of 3 months, to 2 years, in some cases.

This process produces graduates who already know the industry, and are work-ready.

“We are (also) now in the process of ensuring that all graduates are able to communicate in the three languages in Fiji - English, iTaukei and Hindi, as well as have basic awareness of key life skills such as first aid and swimming.

This will produce people who will be better placed to tackle the challenges of living in a modern environment.”

All three universities say they put in a lot of work to ensure their curriculum stays relevant and in tune with the needs of the job market. FNU says it does regular and mandatory consultations with the industry through advisory group meetings as well as mandatory external review of all its programmes annually. UOF says it does the same thing, using external experts and professional bodies.

The regional university on the other says it has in house programmes like STAR – the Strategic Total Academic Review to initiate regular curriculum reviews.

“Reviews take place regularly and are used to update and improve our academic offerings. Most recently, Flexible Learning at USP was assessed by the Commonwealth of Learning, a widely-respected educational organisation based in Canada. USP has been a pioneer in the area of Open and Flexible Learning, so enabling thousands of learners to access a USP education from home or while continuing to work full-time. This Review will, like others, enable us to continue to improve and remain at the forefront of educational advances,” says Professor Chandra.

“It is important to note that USP, in its dual role as the region’s university and as a regional organisation, engages in all major regional meetings. These meetings are an opportunity to share USP’s work, especially in terms of research and policy analysis, and to find out more about the main and emerging priorities of member countries. Our curriculum is delivered with enthusiasm and insight by the academic staff who attend these meetings and are involved with regional and international developments in their fields of work.”

Education

University makes its mark at regional showcase

in Australia and New Zealand who are also part of the Australian Academic Research Network (AARNet).

With the connection to AARNet, USP’s students and staff have free access to a global network of research and academic materials.

This link through the AARNet is only available to certain universities and associated schools. expectations there are in the

By USP’s Development, Marketing & Other commercial telecomSIDS Accelerated Modalities of Communications Office munication providers will have to Action, known as the S.A.M.O.A pay significant funds to be able to Pathway and will determine how The University of the South Pacific is access these global networks for to engage with it. In this regard, clearly making its mark in the development research and academic learning. the University will work closely of the region across all aspects ranging from The second phase of this with the CROP organisations.

Education, Renewable Energy, Research, project will see a pilot project A Memorandum of CoopPacific Cultures, Agriculture, Learning and conducted on selected Tongan eration (MOC) for the Pacific Teaching and in Information Communicaeducational institutions that are Islands Universities Research tion Technology. connected to USP Tonga campus.

Network (PIURN) was also The USP’s most recent significant input These educational institutions signed in Apia, Samoa on 29 was its participation at the United Nations will include the Tonga Institute August 2014.

Conference on Small Island Developing Universities that endorse this USP Vice-Chacellor Rajesh of Education, Tupou Tertiary InStates (SIDS), held from 1-4 September 2014 stitute, Tailulu College Tongatapu MOC agree to use their com- Chandra in Apia, Samoa. and ‘Apifo’ou College. Students bined resources to strengthen A delegation from USP led by its Viceand staff from these institutions research and research training Chancellor and President Professor Rajesh will enjoy the same privilege as any other capabilities in the Pacific region without Chandra, took part in a number of significant USP student and staff who are connected compromising their autonomy or intellectual Side and Parallel Events at the SIDS conferto AARNet. property rights entitlements. ence.

In Kiribati, work has started on the conWith regard to USP’s regional campus In line with the Conference theme, “The struction of a new USP campus which is development, the connection of USP’s sustainable development of Small Island Developexpected to be completed by mid-2015.

Tonga campus to the Tonga fibre optic cable ing States through genuine and durable partPlans are also underway for a new Solonerships”, USP hosted two Side Events, mon Islands Campus which is expected on ‘ICT for Sustainable Development’ and to be completed by 2016. Considering ‘Culture and Development - Heritage and that the land area earmarked for USP’s Creativity in SIDS.’ Solomon Islands campus is 250 acres, USP hosted a Parallel Event as well on where lectures will largely be face-to-face, ‘Agricultural Research for Sustainable Develin a few years time, it will be another large opment and Intensification in Small Islands.’ campus.

The University participated in the In the Republic of Marshall Islands, Side Events organised by other agenGovernment has purchased a large hotel cies, which included the Ocean Policy REGIONAL diversity ... students at the University of the South Pacific which will soon be converted to a new Research Foundation (OPRF); Sustain- Laucala Campus. Photos supplied campus. able Energy for All: and Re-energising The USP is also in the process of fithe Pacific and the Pacific Islands Forum nalising the development of a new campus on 15 July 2014 by the Prime Minister, Lord Secretariat (PIFS). USP took part in the in Lautoka.

Tu`ivakano was a milestone. cultural performance at “Our Sea of Islands, Amidst growing support from its 12-strong In fact, it marked a realisation of the Prime Our Livelihoods, Our Oceania – The Pacific member countries and development partMinister’s vision for Tonga and its people Ocean Alliance Event and in the Main Culners, USP’s enrolments continue to grow to have the opportunity to access global tural Performances during the SIDS 2014 rapidly. networks of research and academic learning Opening Ceremony. In addition, USP’s Vice-Chancellor and President Professor materials. delegation was part of a function hosted by Rajesh Chandra recently said the institution USP Tonga campus is the first nonthe National University of Samoa (NUS) would continue to produce outstanding commercial organisation to connect to the for the Pacific Europe Network for Science, graduates and undertake relevant research Tonga Fibre Optic Cable.

Technology and Innovation PACE-NET recognised internationally, that made demonWith this added capacity, USP Tonga camPlus consortium. strable contributions to the development of pus students and staff can now access a wider The USP is a key partner in the PACEits member countries. range of materials for teaching and learning at NET Plus consortium, directly responsible “This is a pledge to our member countries, a much faster speed as well as better quality for liaising with stakeholders from the Pacific and to their citizens, who rely on USP for communications. This means that Skype, the Island countries. quality higher education that enables them use of Moodle and other forms of learning USP came out of the SIDS Conference to access the best jobs and rewarding, meanare much improved. with a high profile and credibility as a reliable ingful careers,” he said at the September 5, In addition, students of USP in Tonga and effective partner.

Laucala campus graduation at the Vodafone can also enjoy the same privilege as USP Moving forward, the University will now Arena, in Suva. students in Suva, and the university students examine in detail what opportunities and Islands Business, October 2014 29

Special Feature

Education

Vocational education boosts hospitality and fashion jobs

By Mere Nailatikau wiThouT forMal M Mal qualifica ions, pacific qualificaT Island workers can find themselves stalled on the career ladder. When work demands make it near impossible to study and attain qualifications – and the costs and accessibility of such opportunities are out of reach – it can become a demoralising cycle.

Recognising this, the Australia-Pacific Technical College (APTC) has sought partnerships with industry across its campus countries in Fiji, Samoa, Vanuatu, Papua New Guinea and Solomon Islands to give more Pacific Islanders the opportunity to gain Australian-standard qualifications, enhancing their skills, career prospects and earning capacities. Over 5800 men and women from 14 Pacific Island Countries have gained qualifications from APTC, taking back these skills to their workplaces, families and communities.

An initiative funded by the Australian

Government to deliver training and increase the supply of skilled workers in targeted sectors in the Pacific, APTC works with governments, educational institutions as well as private sector partners to ensure that the college meets labour market demands.

“APTC does not work in isolation,” says APTC CEO Denise O’Brien. “The success of our graduates and programmes is underpinned by the strong partnerships we have forged with the training institutions, employers and industries across the region.”

A Memorandum of Understanding between APTC and the University of the South Pacific, signed in March, will see the opening of new kitchen facilities and the Pacific Fusions training restaurant this month and the provision of Hospitality training at the university’s Laucala Campus in Suva. The APTC-USP partnership supports several of the University’s priority areas outlined in its Strategic Plan 2013-2018. Objectives of the partnership include enhancing the role

and potential of USP’s regional campuses, and rationalising and strengthening Technical and Vocational Education and Training provision at USP. “The partnership follows on from existing cooperation between APTC and USP at the regional campus level as well as through the development of APTC’s Literacy and Numeracy Bridging Programme in 2011,” Ms O’Brien adds.

The provision of courses like the Certificate III in Commercial Cookery will offer students the opportunity to further their skills and experience within the hospitality industry and obtain Australian qualifications in order to work as a qualified chef in a commercial kitchen. The course is also delivered in Samoa, Vanuatu and Papua New Guinea.

As well as learning to cook, the 20-week fulltime course covers customer service and staff relations, hygiene, health and safety, food preparation, presentation and menu planning. Having facilities in various countries means students do not have to travel abroad for training, and employers can sponsor them for studies near their place of work with minimal hindrance to productivity. In combination with employer and student contributions, Australian also subsidises the cost of the course including materials and consumables.

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PACIFIC FUSIONS RESTAURANT Pacific Fusions Restaurant is the training restaurant for the Australia-Pacific Technical College (APTC) and the University of the South Pacific (USP) Your patronage enables APTC & USP Cookery and Hospitality students to develop their skills in a realistic industry environment.

For further details on opening times and the menu for the day, contact Pacific Fusions Restaurant on the following details: Phone: 3343958/7021798 Email: kesa.paulo@aptc.edu.au Location: USP Laucala Campus (Suva) Pacific Fusions Restaurant

APTC also operates training restaurants in Samoa, Vanuatu and PNG CREAT I N G Islands Business, October 2014

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Culture

Kanak warrior home from Paris museum

By Nic Maclellan

A

fter 136 years, the skull of chief Ataï has come home. In a moving ceremony in Paris, the remains of this 19th century Kanak warrior have been returned to New Caledonia.

On August 28, France’s Overseas Minister George Pau-Langevin, Kanak chief Bergé Kawa and a crowd of descendants and dignitaries attended a ceremony at the Natural History Museum in Paris. The French state transferred the remains of Ataï and his companion “the sorcerer”, who were killed during a Kanak revolt in 1878.

After Ataï’s death, he was beheaded, with the head preserved in a bottle and transferred to the Anthropological Society of Paris. After examination of his brain, the skull was stored away. Transferred in 1951 to the Museum of Man, it was not revealed again until July 2011. During a 2013 visit to New Caledonia, French Prime Minister Jean-Marc Ayrault responded to the Kanak call for the

CULTURAL icon ... Chief Atai (left) is now home.

repatriation of Ataï’s skull: “The position of the French state is clear - this relic must be returned to New Caledonia and it will be returned.” Ataï has long served as a symbol of Kanak nationalism. Today, images of the warrior chief can be found as graffiti on the walls of Noumea or decorating the T-shirts of young Kanaks, alongside rebels like Eloi Machoro, the Kanak leader shot down by French police in 1985.

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over 20,000 prisoners to the other side of the globe. After popular revolts in Paris and Algeria in 1871, the survivors of the Paris Commune and Kabyle rebels from the Sahara were also transported to the South Pacific.

From the 1860s, France sent free settlers to the main island of New Caledonia, with 110,000 hectares of land seized for distribution in 1864. After 1868, Kanak clans were pushed onto reserves in the narrow valleys of the central mountains, where yam and taro gardens were harder to maintain.

Ataï’s revolt was driven by concerns over the growing loss of land and livelihoods. Some Kanak clans had sporadically resisted the theft of their land, but these new policies contributed to a wider uprising in 1878.

While the revolt was led by chiefs from a number of clans, Ataï was the most famous.

In legend, he challenged French General Olry by presenting him with two sacks, one full of soil and the other of stones: “Here is what we used to have and here is what you are leaving us.”

With many clans following Ataï, the 1878 rebellion began around rural towns like La Foa, Bourail and Bouloupari. After 200 settler casualties and 1200 deaths amongst the rebelling tribes, Ataï was betrayed. The high chief, his son and a bard or sorcerer were killed by a warrior named Segou, then beheaded.

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32 Islands Business, October 2014

Book Review

Sandalwood Blood:

A tiny glimpse of history For the ex-convict, Simeon Lord, one way to redeem himself and move up the social ladder is through he sandalwood trade flourished in Fiji in the wealth. To achieve that, he needed someone to put 19th century with China being one of the his plan into action, enter, Captain Lovat, who also main recipients of the much desired wood. had his own ideas of climbing the social ladder.

Without a doubt this period of Pacific history is But business back then was not as straightforward as one would have hoped and given the lucrative trade both intriguing and fascinating against a backdrop in sandalwood, the buying and selling fetched such of political turmoil and maneuverings of the local good prices that it surpassed other commodities and aristocracy particularly in Polynesia, including Fiji. large ships were sought to ship the product from Fiji Stories abound of treachery and violence and the quest for supremacy, tribal wars was a way of life. across the Pacific and Asia to China.

Sam Lala’s, Sandalwood Blood tries to provide an Enter Europeans in search of a commodity that will essence of that period and weaves a good and in- bring them wealth. How do they extract this ‘wealth’? teresting tale of trade and mutiny and a love story That aspect is not covered in the book. Suffice to say that the journey towards that, begs the that blossoms on the high seas under question, why? Where there is wealth, a strange guise! there is ‘adventure’ and where there Captain Lovat Mellon in charge of is adventure there is danger! the brig, Fair Wind owned by one John There is the danger when depicting Stewart-Kerr is given a proposition history through fiction that confusion by an ex convict in Botany Bay, Mr can arise as fiction and facts can be Simieon Lord to collect sandalwood distorted. Sometimes history is best from Feejee (Fiji) but first they have left to be told and narrated in its own to stop in Tongataboo (Tongatapu) to form. The argument against that is pick up an interpreter to accompany that the reading of it is dull and borthem to Fiji. Captain Lovat informs ing. Yes and no, depends on how it is his boss of the lucrative trade and while written. On the other hand writing Stewart-Kerr shows some interest it fiction based on history, is not easy. remains just that, nothing further.

Firstly, what should remain and what Captain Lovat has other plans which Tongan author Sam Lala is to be left out? Secondly, the form he later puts into action. In his quest and style. Sometimes it is best to write for adventure and more money he sells John Stewart-Kerr’s ship and purchases another, fictional accounts of a period of history without getPortland, using the additional funds from what was ting caught in the details of facts. Many good writers have achieved this, leaving the reader fascinated that given to him to purchase more goods.

Julian, the son of Stewart-Kerr’s business partner, history could be so captivating! Lala has given us a John Boston, is also on board the Fair Wind to sail and book that is written well although there are moments gain some experience of the trading business. His when he tends to ‘tell’ you what is about to happen. girlfriend is Edaline, daughter of John Stewart-Kerr. This can kill the suspense. What is good however, On discovering that the love of her life will be away is that he has written a story and woven it with an she disguises herself as a man and goes on board. aspect of Pacific history that some have heard about yet many know little about. There need to be more When the discovery is made it’s too late.

To complicate matters, Captain Lovat has also books not only about our history but fictional work agreed to take on board two female passengers, Pacific islanders can relate to and enjoy. Lala has tried Elizabeth Morey and her (black) slave Eliza to deliver to do this and one hopes that he won’t stop here them, to the North-West Coast of America. The crew, but continue to write and recount our own stories. are none too pleased about this arrangement but no This book is a good start but it would be good to one can question the Captain. Much later do we dis- also hear the perspective of the islanders rather than cover why he agreed to take on his female passengers. only seeing them as cunning cannibals. They also The question that is often asked, why did a large need to be seen and heard from a point of view that number of European men come to Fiji or the Pacific is not so negative. History allows us to appreciate for that matter? There a number of reasons; escaping and understand the present as there are many events from something, the search for adventure or trade and stories that we need to hear about, to broaden with intentions to grow rich of course. I don’t think our knowledge and know that the Pacific had its fare tourism was quite big back then, not too many white share of drama colored by intrigue, treachery, villainy, people were keen to visit the savage, cannibal Pacific, passion and Sandalwood Blood has just given us a tiny especially Fiji renowned for its ‘people eating habits’! glimpse of that.

By Larry Thomas

T

Islands Business, October 2014 33

Viewpoint

New Dynamics in Regional Politics

O

ne of the stand out features of this year’s Forum By Dr Transform Leaders Summit in Palau Aqorau was the decision to appoint Meg Taylor, a female to head the Pacific Islands Forum Secretariat.

It is not ground breaking though in so far as having a female head of a regional organisation. That honour belongs to Lou Pangelinan of Guam who was Director-General of the Secretariat of the Pacific Community. It is however ground breaking for the Forum Secretariat because for the first time in its history, it will be headed by three females.

It is paradoxical that this decision was made by an all male Forum Leaders Summit. Our male leaders have no problems doing this at the regional level, but qualm at having more women represented in their national Parliaments where real decisions concerning the social and economic development of our countries are made. Why are they willing to make this structural change at the regional level but not at the national level?

The reason is that the Forum does not, in and of itself, make legally binding decisions.

Indeed, someone commented that Forum Summits are a holiday for our leaders. Their work is done for them, programmes of consultations are prearranged with bilateral partners and donors, and the communiqué is pre-developed. So apart from the Retreat where Leaders have space to themselves, most of the work is done before they even arrive for their Summit. Indeed, I was given an advance copy of the draft Forum Oceans Declaration a few weeks before this year’s Forum Summit. My reaction was it was good piece of work by an NGO; another important changing feature of the regional architecture.

The language in the draft Forum Oceans Communiqué was not typical Forum parlance. The alignment of some Forum Leaders with certain NGOs is reflected in the causes that gain prominence in Forum discussions.

In the Marshall Islands last year, it was with a coalition of climate change NGOs and advocates. In Palau this year, it was Oceans related NGOs and advocates. That NGOs should attach themselves to champions for their cause comes as no surprise. Pew and Conservational International seemed to have been able to weave themselves to causes advocated by President Tommy Remengesau.

Thus, at this year’s Forum, “Oceans” issues dominated the Forum Communiqué. In the Marshall Islands, Senator Tony De Brum’s close association with several climate change coalitions is reflected in the Majuro out34 Islands Business, October 2014

comes weighing heavily on climate change.

There is no doubting the importance of these issues. Our peoples are impacted by climate change. Islands are being denuded by erosion, and impoverished by having most of our tuna stocks exported outside our shores when they should be landed to create jobs.

Even if the weight to which people attach the same level of importance of such issues as climate change might not be the same level of vociferousness as that advocated by some of our leaders, the underlying message of urgency and plight is also a good means of attracting funds.

Read Chris Pala’s columns wherein he raises disconnects between the rhetoric at the messages at the international level and the realities on the ground. Some of our Leaders are learning, like some NGOS who have attach themselves to causes to sell a sorry story because it is also a good means of raising funds. After all, that is what organisations in the region do. They will say, see our leaders have given importance to climate change, to oceans, so you must give us funds to support the islands. The NGOs also operate in a similar modus operandi. They also show their benefactors that the Leaders of the Pacific have given prominence to climate change, oceans etc and therefore they need more funds. Whether these funds end up in community support is another story! There is a confluence and merging of interest between the Forum and some NGOs. A mutual dependency on highlighting issues that ultimately leads to attracting funding support. That the intertwining of interests between some NGOs, advocates and Pacific Leaders, succeeded in 2013 and 2014 does not mean that this will invariably be the case. It is known that the President of Palau has a close working relationship with certain environmental NGOS, and Senator Tony De Brum has long been known to have association with environmental advocates, particularly, antinuclear advocates. There is nothing intrinsically wrong about that. There has to be some element of this association for such issues and causes to be given prominence, particularly in this day and age where the message can be carried across the globe at the press of a button. It is unlikely that you will find this close nexus between Politicians and NGOs in the southern countries. The relationship between Political Leaders and NGOs in the South is not always a working one. An exception is the IUCN which has found a niche in advocating green growth, and aligned itself with the Melanesian Spearhead Group (MSG). More significantly, green growth has

weaved its way into development parlance advocated by the Pacific Islands Development Forum (PIDF), a newer, integrated Development forum where Island Leaders and Civil Society and Donors can engage.

Although only in its infant stages, it has the potential, if led well with vigour, vision and dynamism, to connect leaders, civil society, and communities. Its problem is that it must move way from being viewed as dominated and controlled by Fiji, to an organisation that is a bastion of ideas, creating, and visualising solutions for the problems our people face.

More broadly, the emergence of the new players in the regional architecture arises from the need for space; space to think, reflect, and find solutions for themselves.

Pacific Leaders need to have their own space, and freedom to speak on development issues affecting them. The Forum process has become a stifled process. There are too many side meetings, side shows, bilateral meetings, agenda and outcomes are pre-arranged, and as one friend who was at the Forum recently told me, “too many side meetings and no substance.” The Forum Leaders Summit has been highjacked by donors, dialogue partners and NGOs. It is about them, the interest of donors, the interest of dialogue partners and increasingly less about us, the people of the Pacific. Millions of dollars are spent to host these Forum Meetings, but where are the results? What tangible benefit can anyone demonstrate to a person from my Village at Kehehe, Munda, Western Province, Solomon Islands that these meetings mean something to them when they do not have running water!

Can our Leaders say, that because of the Forum Meeting, and the SIDS International Conference, we will now have piped water for Kekehe Village? This is the inherent complexity, paradox and deception about regionalism. It serves some purpose, but not all. It can serve some countries’ interest but it does not serve all the countries’ interest.

The myth that the Pacific is a single, homogenous, harmonious, amicable and unified unit has been sold for a long time.

It is wrong. The Pacific Islands is not a homogenous region. There are huge differences across the regions, and even within subregions. That is the inconvenient truth about the region. It is not a singular region, but a body of many different parts. And these different components are beginning to realize that now. This is the new dynamics that is influencing, shaping and reshaping the regional architecture.

Dr Aqorau is the outgoing CEO of Parties of the Nauru Agreeent Office and these are his own personal views.

Environment

Reflecting on the Third United Nations Conference on Small Island Developing States

S

amoa showcased to the world a people united when they hosted over 4,000 delegates to the Third United Nations Conference on Small Island Developing States By (SIDS). Hailed as the best David United Nations conference Sheppard ever, UN SIDS was an outstanding success on many fronts.

Samoa proved an excellent, warm and welcoming host country with smooth and effective logistics, at all levels.

The main “Outcomes Document” adopted by the Conference was the SIDS Accelerated Modalities Of Action (SAMOA) Pathway Outcomes. This landmark document sets the framework for sustainable development for small island countries and makes a powerful case for small islands at the international level. In fact, the Outcomes Document will be recommended for endorsement by the UN General Assembly at its 69th Session (September 2014).

The conference also produced separate outcome documents from the four preconference forums: Youth; Renewable Energy; Private Sector and Major Groups and also the six multi-stakeholder partnerships dialogues: Sustainable Economic Development; Climate Change and Disaster Risk Management; Social Development; Sustainable Energy; Oceans, Seas and Biodiversity; Water, Sanitation, Food Security; and Waste Management.

SPREP was very active at UN SIDS in support of Samoa and our Pacific island members. We were directly involved with 23 side and parallel events at the conference including eight events hosted on the SPREP campus. The majority of these events were implemented jointly with SPREP members and partners. SPREP also fully participated in the pre-conference forums, multi-stakeholder partnership dialogues and at other relevant UN SIDS events. There were many highlights for SPREP at UN SIDS but I would like to highlight four major achievements.

Firstly, the United Nations Environment Programme (UNEP) launched their Subregional Office hosted at SPREP, together with the signing of the Host Country Agreement between the Government of Samoa and SPREP. This office was launched by the Executive Secretary of UNEP, Achim Steiner, as well as the Prime Minister of Sa-

Fourthly, our strengthened partnerships moa Tuilaepa Lupesoliai Sailele Malielegaoi. held several key activities aimed towards This is the first UNEP Sub-regional Office saving lives, livelihoods and properties in to be established anywhere in the world. all small island nations. Working in colAs stated by the Prime Minister of Samoa: laboration with the World Meteorological “The UNEP Sub-regional Office based Organisation (WMO), SPREP and National in Samoa is an indication that the needs Meteorological Services we conducted a and realities of the Pacific region are better global “Small Islands Weather Together” campaign served when viewed from perspectives on the which is designed to promote the role of improved ground and not from a distance and we look weather and climate services to forward to seeing the benefits achieve this aim. of this in our region.”

As part of this campaign the Secondly, the launch of the WMO and SPREP launched “Framework for Nature Cona new website called www. servation and Protected Areas weathertogether.org and coordiin the Pacific Islands Region nated a BBC-facilitated high 2014 – 2020, was the culmilevel panel side event, this enables nation of major efforts by global audiences to hear the real governments and civil society stories of climate variability and over many years. This Frameclimate change impacts from work identifies priorities and small islands. actions for the protection and Adaptation to climate management of our precious change and disaster risk Pacific biodiversity, both on management is a powerful land and at sea. tool that builds resilience in This was developed after one of the most extensive consulta- Prime Minister of Samoa Tuilaepa the face of hazards and other Lupesoliai Sailele Malielegaoi. Photo pressures. tion processes in SPREP’s his- Supplied The benefits of a more tory, involving governments, systematic and integrated approach to civil society and other stakeholders, over a reducing climate and disaster risk are two-year period. recognised in the proposed “Strategy for This consultation also involved a major Climate and Disaster Resilient Development meeting of over 800 stakeholders from the in the Pacific” (SRDP).

Pacific region and beyond in Suva in DeThis culminates the shared aims of cember last year. reducing the vulnerability of individuals, Actions implemented through this framesocieties, economies, the environment and work will link to global efforts for nature natural resources to the consequences of a conservation. SPREP embraces and looks full range of current and anticipated hazards forward to the positive outcomes that will and other adverse stresses, whether these are stem from implementation of this Framerapid or slow onset. work that we designed collectively as a Ms Margaret Wahlstrom Executive Pacific family.

Director of the United Nations International Thirdly, SPREP signed a 5 million Euro Strategy for Disaster Reduction facilitated a Agreement with the German Government SRDP side event to raise the profile of the on a new five year project: “Natural Solutions first Pacific integrated strategy. to Climate Change in the Pacific Islands ReI believe the Pacific is well prepared for gion.” This project will identify threats and the post Hyogo Conference in Japan next ecosystem services that are vital for long term year to ensure not only linkages with the environmental and social resilience to cliglobal process but to ensure the access to mate change and sustainable development, at resources are facilitated for on-the-ground all levels. This exciting project will reinforce implementation in each of the Pacific island the role of Ecosystem-based Adaptation as a countries and territories. key front line response to climate change, risSPREP’s work in the Pacific region has ing sea levels and environmental disturbance been considerably strengthened through in the Pacific islands region. It will involve the genuine and durable partnerships deactivities in Fiji, Solomon Islands and Vanuveloped and signed during the landmark atu and will also support capacity building at conference. national, sub-regional and local levels.

Islands Business, October 2014 35

Business Intelligence

Marshalls will showcase power plant ene

By Giff Johnson

W

hen over a hundred Pacific island power utility officials meet for their annual conference in Majuro next year, they will see new heat recovery generators in action at the capital city’s power plant.

Majuro is the first island in the Pacific to see an investment in waste-heat-to-power equipment by General Electric’s Power and Water Heat Recovery Solutions. An agreement signed at the beginning of September

by Marshalls Energy Company and GE Power and Water Health Recovery Solutions officials paves the way for GE’s US$2.4 million investment at the Majuro utility company’s main power station. It is not only GE’s first energy efficiency investment in the island region, it is the first United States company to invest in the Marshall Islands in decades.

The new equipment will reduce the utility’s fuel costs while cutting its carbon emissions, said Marshalls Energy Company General Manager David Paul. He touts the investment as a key demonstration that small islands can and should take steps to curb carbon emissions, even if the pollution generated by tiny population is miniscule by world standards.

Paul says the deal will improve the utility company’s financial outlook, while showing the rest of the world that the Marshall Islands is taking steps to reduce pollution that is causing global warming.

The new system, expected to be up and running by early 2015, will: • Generate about 1.6 million kilowatt hours per year, which translates into potential

to use waste heat produced by its generators to create more energy without any additional fuel expense or environmental emissions.

Marshalls Energy Company Board Chairman and Minister of P u b l i c Wo r k s Hiroshi Yamamura signed the contract with GE Heat Recovery Solutions PresiClimate response ... Heat recovery generators will reduce carbon emissions and cut fuel dent Brad E. use at Majuro’s power plant, generating additional power for the capital city.

Garner.

The clean cyelectricity revenue of US$725,000 a year. cle units are assembled by the GE Electric • Result in reducing fuel use at the power Power and Heat Recovery Solutions facility plant of up to 100,000 gallons a year, a savings in Costa Mesa, California. of over US$300,000 at current fuel prices.

A factor motivating GE’s interest is that the The U.S. company is financing the entire Marshall Islands is hosting next year’s annual $2.4 million cost of equipment and instalmeeting of the Pacific Power Association, lation, which will also involved Marshall which will bring several hundred energyIslands power plant engineers. The utility related delegates to Majuro in July. will pay GE 85 percent of the fuel savings up “This system is fully compliant with to a maximum of $20,000 per month for the the Marshall Islands’ climate change treaty next 10 years. A key element of the deal is GE obligations, does not create any emissions, is guaranteeing performance of the system, and does not require any additional fuel or with financial benefits to the Majuro utility power,” said Paul. “Importantly (the technolif it under-performs. ogy) is proven to work in an efficient and Officially, the equipment is known as commercially viable manner.”

Clean Cycle Heat Recovery Generators.

He said the clean cycle heat recovery units The heat recovery units will allow MEC will benefit MEC customers, save money on

Regional food and beverage exhibition creates growth poss Dev Nadkarni

F

ine Food Australia is the region’s biggest annual food and beverage trade show. Featuring hundreds of exhibitors and thousands of visitors and buyers from around the world, potentially millions of dollars worth of deals are discussed and finalised at the show. The 30-year-old show is possibly the best platform for Pacific Island food and beverage manufacturers to display their wares.

Collectively, the Pacific Islands have been a comparatively recent entrant. Over the

36 Islands Business, October 2014

past four years, a number of food and beverage manufacturers from island nations as well as companies that import island produce and package them in Australia and New Zealand have participated at the show under a collective Pacific Island banner.

The Pacific Islands Forum Secretariat’s trade arm, Pacific Islands Trade & Invest, has been facilitating the participation of island food and beverage exporters mainly by sponsoring a large-sized stand at the venue, collectively used by up to eight exporters displaying their products. Promotional and logistic assistance is also provided to the

participants. This was the fourth year that the trade arm helped coordinate and host island participants.

At last month’s show at the Melbourne Convention and Exhibition Centre, exporters from Fiji, Vanuatu, Papua New Guinea, Solomon Islands and Niue participated. A continuous stream of potential buyers, new business contacts and interested parties thronged the Pacific Islands stand that hosted eight companies at the show that ran between September 15 and 19.

Pacific Island exhibitors at the Pacific Islands booth ranged from coffee and cocoa

rgy savings fuel costs, and operate “in a manner that fulfills our climate change treaty commitments.”

The units use the waste heat that would normally be emitted as exhaust into the air, and instead recycles it through a clean cycle heat recovery process that uses no additional fuel or energy to produce more power at the same level of fuel consumption, or at the utility’s option, maintain current power levels with less fuel consumption.

“Much is said about our energy issues and commitment to take action to reduce global warming, but often it is just talk,” said Yamamura. “I am pleased to see the Marshalls Energy Company take the lead in this important endeavor and do something that benefits the environment and the Marshallese people.”

Paul said the contract also virtually eliminates major financial risk to the utility because GE is providing a performance guarantee that will result in lease payment refunds to the utility should the system not operate as expected.

Paul said the utility was happy to be dealing with GE because it pioneered waste heat to energy technology.

Aside from money savings for Marshalls Energy Company, the new system is a practical application of technology to reduce carbon emissions that are contributing to the temperature rise globally. “This is as real as it gets,” Paul said. “With this technology, we are cutting our own emissions. This is a way to show the world that we are doing something about climate change.”

The Majuro power plant’s carbon footprint will be reduced by an estimated 1,160 tonnes annually by the waste heat to power equipment.

Coca Cola suffers but PNG, Fiji shine

By Davendra Sharma

C

oca Cola Amatil reported a 15 per cent decline in profits this year to A$182 million (US$158m)but the figure could have been worse if its outlets in Fiji and Papua New Guinea had not performed exceptionally.

Its operations in Australia and New Zealand were challenging “across all channels” in the financial year just past, the CCA group managing director Alison Watkins told media in Melbourne last month.

“The decline was exacerbated by reduced promotional activity to the channel, a decline in sales headcount and reduction in call frequency during 2013-14, which resulted in below required service standards,” she noted. Of the multinational’s PNG operations, Coca Cola noticed “strong growth in volumes and earnings” in all sectors of trading during the year.

While neighbouring Indonesia was plagued by falling currency and a chronic competitive market, PNG managed to power away to high growth with a recent upsurge in investments in the resources sector in 2014.

PNG delivered a volume growth of 22.2 per cent during the year.

Earnings in Fiji for the country’s rum production and sales of imported Australian soft drink sector increased by 12 per cent during the same period while New Zealand experienced a poor, weather-affected start to the year and as such faced a downturn in trading.

Focus on competitive advantages Watkins announced that the company now realised that it needs to strengthen the Coca Cola brand portfolio. It needs “to improve brand equity of the existing portfolio to broaden and increase our appeal to a wide range of consumers.”

“The review process we have embarked on across the group is comprehensive, structured and well-resourced and has confirmed our significant strengths and clarified our competitive advantages,” she said.

Watkins cautioned that to drive revenue growth, the company needs to address the issue of cutting its cost base across the board.

Cut current costs, few new investments Over the next three years to 2017, Coca Cola hopes to save US$87 million in cost outlays. “The savings will be primarily driven from improved procurement, streamlined support costs and driving greater efficiencies from the investment made in our supply chain over the past five years,” she said.

Coca Cola will also invest in new marketing schemes as well as innovative techniques to gain a competitive market position in its South Pacific markets of Australia, Fiji, Indonesia, New Zealand and PNG. Of the $279 million set out for capital investments in the years to come, half of it is reserved for PNG and Indonesia in 2015-16.

ibilities for growers and manufacturers growers, chocolatiers, honey producers and coconut product makers to manufacturers of packaged foods, bottled water, beverages and even alcoholic drinks.

Exhibitors said that this year’s participation brought excellent dividends, having resulted in several new contacts, even orders and ideas for product development to suit the target market. It is important to see how buyers and potential distributors view the product and suggest a few tweaks to make it more suitable and saleable in their markets.

Several exporters featured this year have participated in the show before – a testimony

to the value of participating at Fine Food – while there were some that were first-timers.

At least one participant of previous years has grown enough to warrant a stand alone booth. A couple of others are likely to follow suit in the next two or three years.

Many buyers were also keenly interested in the stories behind the product, about where the produce was grown and about the people growing them. Potential buyers engaged the Pacific exhibitors in long exchanges as regards place of origin and product knowledge. There was considerable interest among visitors about the Pacific Islands region and

the fact that it had more to offer than just tourism.

Repeat participants said that this year’s outing was the best so far in terms of contacts made, business transacted and potential deals discussed. Some were already speaking in terms of increasing growing and manufacturing capacities to meet potential demand, based on their discussions with potential buyers.

One Fijian grower said if half the serious enquiries they received at the show came to fruition, they would have to double their output.

Islands Business, October 2014 37

TRADE MARK CAUTIONARY NOTICE IN PALAU

TRADE MARK CAUTIONARY NOTICE IN NAURU

Notice is hereby given that DIAGEO IRELAND of St James Gate, Dublin 8, Ireland, is the sole owner and proprietor in Palau and elsewhere of the trade mark below:

Notice is hereby given that CBS Broadcasting Inc., a New York corporation of 51 West 52nd Street, New York, New York, 10019, United States of America, is the sole proprietor in Marshall Islands and elsewhere of the following trade mark:

GUINNESS which is used in International Class 32 upon or in connection with the following goods: Beer, ale, stout and porter; low alcoholic beverages; non-alcoholic beverages, mineral and aerated water, soft drinks, non-alcoholic drinks containing fruit juices; preparations for making beverages DIAGEO IRELAND claims all rights in respect to the above trademark and will take all necessary legal steps against any person, firm or corporation counterfeiting, imitating, violating or otherwise infringing its rights in Palau.

MUNRO LEYS Lawyers & Notaries Public Pacific House, Butt Street, PO Box 149 Suva, Fiji Tel: +679 331 4188 Email:trademarks@munroyleyslaw.com.fj www.munroyleyslaw.com MUNRO LEYS

Used in respect of:Broadcasting services; cable and satellite transmission services; providing video images and information for wireless mobile communication devices; providing wireless transmission of uploading and downloading video images, information and news via a global computer network to a wireless mobile communication device; Internet services which should be understood to include communication services, namely transmitting streamed sound and audio-visual recordings via the Internet; providing access to information in the field of entertainment. Audio and video broadcasting services over the Internet or other communications network, namely, uploading, posting, showing, displaying, tagging and electronically transmitting information, audio, and video clips; providing access to information, audio, and video via websites, online forums, chat rooms, list servers and blogs over the Internet; providing on-line chat rooms and electronic bulletin boards for transmission of messages among users in the field of general interest.

Entertainment services, namely, production and distribution of motion pictures, comedy, musical, reality, news and dramatic television series, documentaries, and television series featuring sporting events rendered through the media of television, cable, satellite, radio, telephone and broadband systems, and via the internet, and portable and wireless communication devices in class; providing information in the field of entertainment rendered via the internet and portable and wireless communication devices.

DAVIES COLLISON CAVE Patent and Trade Mark Attorneys 1 Nicholson Street, Melbourne, Vic, 3000, Australia Telephone: +61 3 9254 2777 • Facsimile: +61 3 9254 2770 E-mail: clowe@davies.com.au

Drive change in public health in the Pacific Director, Public Health Division SPC is an intergovernmental development organisation that supports the development efforts of Pacific Island countries and territories through scientific and technical assistance. Its Membership comprises 26 Members, including 22 Pacific Island Countries and Territories and Australia, New Zealand, France, and the United States of America.

For details of the position and how to apply, please visit:

Role – Based at our headquarters in Noumea, New Caledonia, the Director is part of SPC’s Senior Leadership Team and is accountable to the Deputy Director-General (Programmes). The position is responsible for providing vision, leadership and management of the Public Health Division, and sound, accountable and ethical management of its financial resources.

Profile – Innovative, outcomes driven leader with a track record in strategic thinking, policy analysis and development in the disciplines covered by the division. The Director will have the skills to lead and manage a multidisciplinary team; be an advocate, communicator and negotiator; be able to work with stakeholders and partners, particularly in the health sector; have excellent representational skills, and the ability to influence others and deliver results.

Benefits - SPC provides subsidised housing in Noumea. An establishment and relocation grant, removal expenses, airfares, home leave, medical and life insurance. Employees are also entitled to annual, carer and sick leave www.spc.int/en/international-positions and access to SPC’s Provident Fund. Education and other allowances are Deadline for applications: 03 November 2014 available for eligible employees and recognised dependants.

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