September Edition

September 2012

Contents

Vol. 39, No. 09 V

Business

42 Gambling Ô epidemicÕ threatens Pasifika

Normalisation of gambling to blame

43 When the going gets tough, the tough gets going AustÕ s Mincor Resources heads to PNG

Education

45 Educating for a sustainable future SPREP provides students with environment tips

Aviation

48 New focus on regional aviation SPC partners with ASPA

Regular Features

The Cyber Spectre. Cover reportÑp

ages 16-19. Cover photo: Computer generation by Dick Lee

Cover Report

16 The Cyber Spectre

New tech, development and dangers

Politics

4

Letters

6

Views from Auckland

7

We Say

12 Whispers 14 Pacific Update 52 Business Intelligence 54 RAMSI Update

20 From attorney-general to fugitive from justice Calls growing for governorÕ s impeachment

23 Marshalls pushes for US action on nucelar testing UN Special RapporteurÕ s report reveals all

24 OÕ Neill govtÕ s priorities

Fighting corruption top on the list

26 Islands rake A$1 billion at AustÕ s loss Is it unjust and inhumane?

Culture

28 First all-women fautasi crew

Showcasing skills at Teuila Festival

Solomon Airlines’ 50th anniversary 30 Ownership issue critical to future growth

Dedicated board, staff and strong management crucial

33 Celebrating 50 years of flying

How the airline will celebrate anniversary

38 Setting the foundation for a better future A new era for IE: ASPA

Agriculture

40 Innovative, sustainable food growing solution for the Pacific unveiled sustainable future Islands Business, September 2012

L E T T E R S Managing Director/Publisher Godfrey Scoullar Group Editor-in-Chief Laisa Taga Group Advertising & Marketing Manager Sharron Stretton Staff Writer Robert Matau Graphic Design Dick Lee Virendra Prasad Main Correspondents Australia Rowan Callick Nic Maclellan Davendra Sharma Fiji Samisoni Pareti Dionisia Tabureguci French Polynesia Thibault Marais Marshall Islands Giff Johnson New Zealand Dev Nadkarni Jale Moala Ruci Salato-Farrell Duncan Wilson Niue Stafford Guest Papua New Guinea Baeau Tai P Sam Vulum

Cooks women’s move slow and gradually educated women and families, to the levels we are at today. We are still far away from a fair representation in many respects.

The Cook Islands National Council of Women believes we are not moving as progressively as our nation deserves to move and be represented.

And we will continue to advise our government accordingly.

Assessing one’s performance from one’s own perspective is often a sign of impending complacency and glossing over real issues relating to climbing crime rates and social problems, neglect of the vulnerable, unstoppable depopulation and cost of living leaves no room to think of policy.

I commend your InformatIve I Ive pIece In your August issue, Changing the face of Cook Islands politics: Women step up in 2012.

On behalf of the women of the Cooks, may I provide some insight from our women’s viewpoint on this changing face.

The Prime Minister’s comment that he would not force changes in what he sees as a level playing field…and which he adds will require ‘a cultural shift needed before reserved seats helping to even the representation scale in Parliament can happen’, borders on naiveness.

Unfortunately, this continues to be the misrepresented view of many decision-makers in the country and the region.

The article describes the number gains made in various sectors of the economy, the public service, the Queen’s Honour’s List, and the selection of a woman as Speaker. The Cook Islands National Council of Women also these gains, but they are not Olympic gold medals yet.

We know that changes in our Pacific have either been quick and harsh (for example, the economic reforms of the mid-nineties), or gradual, the slow growing number of women on decision making tables that count. The latter may be the gradual shift the Honourable Prime Minister is referring to.

Government’s policy over the years has been influenced by the needs of our people. In this case then, that medal is reserved for women who took up the challenge of pushing the ratification and then the implementation of CEDAW in the country, and lobbied our passing governments,

—Vaine Wichman President, Cook Islands National Council of Women RAROTONGA

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Column the Pacific Islands region (readers might recall the mention of the aquaponics technique in this column). Last month, a demonstration site with three systems was unveiled during the Pacific Islands Forum leaders meeting in Rarotonga.

BY DEV NADKARNI The project is not only a successful demonstration of an environment-friendly, spray free food growing system that dumps no water while using nutrient from fish in tanks alongside beds growing greens and veggies, but also demonstrates a commercial model of public-private partnership.

Aquaponics is simple and natural: It uses water from fish tanks to irrigate plants, which absorb the nutrients naturally filtering the water, which is then returned to the tanks. So there is no water dumping; water loss is only through evaporation, which can be topped up with rainwater collected off the rooftop and stored in tanks. The technique uses no fertilisers and the power required to run the pumps is negligible and can be met with a Access to regular and affordable supply these activities unattractive at a time when new solar power set up. of nutritious food and freshwater for drinking alternatives and opportunities in ‘lifestyle’ caThe basic science behind this technology is and domestic use faces growing challenges on reers offered in the services industry abound for an effective balance of fish waste released to multiple fronts. We looked at food security and younger people. Getting young people interested plant nutrient uptake. And this refined scienaccess to freshwater situation in the Pacific Islands in agriculture is key to the future of food productific technique has been brought to the Pacific region in last month’s column. Let’s look at the tion, particularly, in the developing world, and the Islands region for the first time, with the project challenges this presents to vulnerable populations development agencies’ growing concern on this in Rarotonga. and possible ways to counter them. score is completely understandable.

This model addresses all the problems that face Necessities like food have come to depend Many Pacific Islands’ soils are not best suited food growing and distribution today. It is local, almost completely on global supply chains over for agriculture. Moreover, the long-term use of uses local materials, is easy to operate being placed the past several decades. This model of food profertilisers, pesticides and other chemicals has iron raised beds, does not require a large ongoing duction and distribution has shifted the emphasis revocably affected the soil conditions and its abiltime investment (making it attractive to people from small farmers growing food locally to large ity to grow healthy crops efficiently. This is apart from all walks of life including the young), is super farms, citing economies of scale, that almost from the harm that has been done over decades inexpensive to build and run and has a built-in completely depend on corporate-controlled to coral, coastal and littoral ecosystems because protein source in the form of fish, which can be logistics and distribution networks to get to end of the harmful chemical and fertiliser saturated farmed if necessary. users. The model was built on the availability of runoffs from non-organic soil-based agricultural Additionally, it uses no harmful pescheap energy, particularly cheap oil, not ticides, insecticides and herbicides nor taking into account the fact that oil was any hormones or artificial additives. It ultimately a finite source of energy. uses little water after the initial fill and Oil prices have fluctuated in recent has a low footprint being able to grow decades and the cost of moving esmore in a smaller space than in-ground sentials has increased many times. This farming. Produce also is known to grow has particularly affected small, remote faster than with traditional methods. populations like those in the Pacific Almost anything can grow in aquaIslands region. Rising costs of distribuponic systems. The technique is estion is but one factor that has threatened pecially suited to high demand, fastfood security. The others are depleting growing nutritional crops like herbs, populations, the lack of investment in leafy greens and fruiting plants. The food growing infrastructure and manproject has been handed over to two power, deteriorating growing conditions, local women entrepreneurs who have changing weather patterns and climate been trained in the technique. The change—and for low-lying islands naenterprise will be run as a public private tions, rising sea levels. partnership between the Cook Islands The Pacific Islands have seen a steady Aquaponics...lettuce plants growing in gravel beds irrigated by nutrient rich fish Ministry of Marine Resources and the flight of productive manpower away from water at PT&I’s Cook Islands project. Photo: Dev Nadkarni women’s enterprise. not just traditional agriculture-based acA range of agencies and organisations tivities but from the islands themselves. view the Rarotonga project as one that not just People have been leaving their island homes to practices and nutrient-rich water dumping from addresses food security bringing inexpensive, earn better wages overseas for decades, making hydroponic growing systems. nutritious food within reach of local popularemittances back home the largest foreign exAs if this were not enough, changing weather tions in the Pacific Islands region without the change earning channels for many islands nations. patterns have altered rainfall, bringing drought elaborate and expensive supply chain dynamic Agriculture is perceived as “unsexy” particuin some islands environments. In others, climate but also a potential small to medium enterprise larly by the younger generation in the developing change and rising tidal levels have waterlogged for individuals, communities and enterprises to world. International development agencies and coastal farming plots, increasing salinity to lederive a livelihood from. national governments have been struggling to thal levels for plants. It is not uncommon to see The Cook Islands imports nearly NZ$30 come up with ideas and strategies to attract young forlorn frondless coconut palms lining miles of million worth of fresh foods every year. Much people to agriculture. Almost every other month atoll shorelines because of the saltwater that has of this is salad greens and veggies to supply the a new programme is being announced to lure the infiltrated the freshwater from which they drew big tourism market, which has no continuous, young into agriculture-based activity. The success their sustenance. assured supply of good quality greens—a scenario has been low. that repeats itself in almost every island that is a The reasons are not far to seek. The lack of Farming with closed systems tourist destination. Small aquaponics farms could investment in infrastructure conducive to growThese past two years, I have personally been address this quite well, while being an attractive ing and equipment to decrease human labour in involved in a project that has brought an innobusiness proposition for local businesspeople. smaller, poorer economies has made pursuing vative closed system food growing technique to

Views from Auckland

Growing local is in everybody’s reach

6 Islands Business, September 2012

WESAY ‘How and why have Asian growers overtaken fruit and vegetable exports from the islands? The answers are not far to seek. What separates Pacific Islands and Asian grower exporters like those from the Philippines are economies of scale, reliable supply chain systems and management, investment in technology and strong partnerships in the end market besides intelligent pricing and marketing’

B

oats laden with fresh fruit from Pacific islands countries like Samoa and Tonga landing a couple of times every week on New Zealand’s shores is now a distant, fading memory. Fresh fruit and vegetables once comprised the bulk of exports from these countries into New Zealand.

As New Zealand’s population of Pacific Islanders grew in the 1950s through to the 1970s, fruit and vegetable exports peaked, with several would-be immigrants arriving on the same boats as the ones that brought in loads of banana, papaya and an assortment of other fruit. But in the decades since, the exports of fresh produce have nose-dived and inward trade is now but a shadow of its success back in the day.

A range of circumstances and developments has contributed to this precipitous decline. For one, New Zealand and Australia, the islands’ closest markets with any significant depth, have progressively raised the bar on quarantine requirements across the decades.

Expensive corrective measures following the importation of invasive species accidentally or otherwise necessitated strict entry requirements for fresh produce.

The bar was raised high enough for the islands to be almost totally excluded from exporting any fresh produce at all at one point because the small grower exporters could scarcely afford the equipment and procedures needed to get their produce export ready in the progressively stricter quarantine environment.

In the past decade or so, however, New Zealand has worked more closely with growers in the islands to set up better quarantine measures at the point of departure and the list of ‘allowable’ fresh produce has been steadily growing with dozens of fruit and vegetables that were off the list now growing progressively in recent years. But in the intervening years, the trade in fresh produce between the islands and New Zealand has been irrevocably damaged.

As well as the stricter quarantine measures, several other factors took their toll on this trade. Lack of investment on the part of both the produce growing private sector and the government to ensure quarantine measures at the departure point were installed and import standards met was a major factor.

The trend for global aid agencies also shifted from supporting agriculture financially to other social programmes. In fact, many of the problems of food security in the developing world and the

world’s poorest countries are traced to this shift in the aid agencies’ focus away from encouraging investment in agriculture.

Growing migration of younger, more productive people away from their island homes also brought down the availability of manpower for traditional farming, thereby taking away another important resource from the industry. A breakdown in the growers’ cooperative organisations in Samoa, Tonga and the Cook Islands only exacerbated the situation.

These factors have reduced fresh produce exports to a mere trickle despite the efforts of the Australian and New Zealand governments in recent years to help boost the sector.

Last month, the Cook Islands government criticised pawpaw growers for failing to take advantage of export opportunities. Inferior quality of fruit and poor quarantine and preservation measures were blamed for the situation. Its small wonder that from being the largest provider of pawpaw to New Zealand in 1991, the Cook Islands has ceased exports of the fruit in the past 18 months. Two decades ago, the Cook Islands supplied 62.5 percent of New Zealand’s pawpaw.

That is down to zero today.

Fiji, the other significant exporter of pawpaw, still managed some exports until the mfloods in January and March this year wiped out 81 acres of plantation. In the year to June 2012, Fiji provided NZ$316,068 worth of the fruit compared with nil imports from the Cook Islands. No exports of the fruit from Fiji, however, have been consigned to Australia this year.

If that is the situation for pawpaw, the case with other fruit like banana, which was also exported in great volumes in the past—as well as a range of other fruit—is quite the same.

The imperatives of real world commerce ensure that any vacuum is instantly filled and this is exactly what has happened to this trade.

The decline of fresh produce exports from the islands has brought in players from afar, who are now well established and make it nearly impossible for the islands to regain their former glory because of the trade’s new realities.

For instance, Fiji’s exports of pawpaw seem a pittance when compared to pawpaw imports into New Zealand from the Philippines.

With pawpaw imports from that country starting only in 2005, they touched NZ$1 million in 2006.

Changing donors’ focus

Islands Business, September 2012 7

WESAY Coincidentally, Cook Islands’ supplies dropped from NZ$90,821 in 2004 to nearly half in 2005 at NZ$46,200. Now, Philippines exports have surpassed NZ$1.4 million in the year to June 2012.

How and why have Asian growers overtaken fruit and vegetable exports from the islands? The answers are not far to seek. What separates Pacific Islands and Asian grower exporters like those from the Philippines are economies of scale, reliable supply chain systems and management, investment in technology, and strong partnerships in the end market, besides intelligent pricing and marketing.

A large banana grower and exporter from the Philippines, for example, has a strong partner and distributor in New Zealand that ensures distribution in several big grocery chains as well as specialty fruit shops.

This is possible because of the scale that helps establish reliability of supply constantly. This is almost completely lacking in the smaller islands because of their size and infrastructure.

The Filipino company, while being 100 percent owned in the Philippines, owns its banana farms, invests heavily in research and

development facilities, IT, marketing, and even has a fully integrated logistics division, including its own ships—something that is quite unthinkable for any grower and exporter from the islands. These are tough challenges for Pacific islands fresh produce exporters.

So how could this be addressed? It is quite evident that the islands cannot hold a candle to countries like the Philippines and from South America because of the size of their growing fields and the economies of scale they offer.

The answers, therefore, could lie in completely different strategies. Niche marketing, value added fresh food products with special characteristics unique to the islands they originate from and other such marketing initiatives might just make it all come together.

Profits could be designed to come from quality niche value added products rather than volumes, which the islands have simply no capacity to compete on. But with all that come knowledge, research, investment, hard work, imagination and marketing savvy.

The question then is, can the island growers develop capacities for acquiring these attributes?

‘The young grouping needs to get its priorities right.

It appears to have too many irons in the fire with little by way of a firm plan or strategy to give a meaningful shape to them’

N

ine months after it came into existence as a formal body, the Polynesian Leaders’ Group is still trying to find its feet as its leaders ponder over a number of elements around which to find their way forward. The leaders had their first formal meeting after the group’s formation ahead of last month’s Pacific Islands Forum leaders annual summit in Rarotonga. But at the time of writing, the group was yet to issue a communiqué even a few days after the meeting, scheduling it to be released at the end of the meet.

In November last year, leaders of the Polynesian islands nations got together in Samoa to formally sign on to the idea of a grouping that has been long in coming. Leaders from American Samoa, the Cook Islands, French Polynesia, Niue, Samoa, Tokelau, Tonga and Tuvalu signed a memorandum of understanding forming the Polynesian Leaders Group under the chairmanship of Samoan Prime Minister Tuilaepa Sailele Malielegaoi.

The idea of a grouping of Polynesian nations is not new. First mooted in the 1880s, there have been more than a couple of attempts to get it going, until last year’s formal launch in the form of the Polynesian Leaders’ Group. An attempt to get a Polynesian bloc going was initiated under Fiji’s first Prime Minister Ratu Sir Kamisese Mara but the move, which involved Samoa and Tonga, petered out only after a couple of meetings.

The Polynesian Leaders Group, despite having more countries and territories as members, comes well behind other such groupings like the successful Melanesian Spearhead Group (MSG) and 8 Islands Business, September 2012

the Micronesia Challenge. The MSG, formed in 1983 as a political affiliation, became a formal body only in 2007. It comprises Papua New Guinea, Solomon Islands, Fiji and Vanuatu and a political organisation, the Kanak and Socialist National Liberation Front of New Caledonia.

The Micronesia Challenge was formed in 2005 with the Federated States of Micronesia, Palau, Marshall Islands, Guam and the Northern Mariana Islands signing on as members.

A number of historical reasons have been cited for the late formation of the Polynesian Leaders Group but the real challenges for the delay in getting it up and running and its future course are more economic than anything else. Unlike the Melanesian nations, the Polynesian countries have far smaller populations, fewer land-based natural resources and are comparatively farther apart from one another across a vast swathe of the Pacific Ocean.

It is small wonder that the group, even so many months after its formation, is trying to find its feet and achieve the even more difficult task of finding its way forward. At last month’s meeting in Rarotonga, the leaders pondered a range of options for the young grouping.

From considering applications from ethnic Polynesian peoples around the region to join the grouping, to deciding on a location for a secretariat and from identifying ways and means to form strategies to move forward, to funding their future plans, a variety of topics

Get priorities right: Poly group told

WESAY were discussed at the day-long deliberations.

The young grouping needs to get its priorities right. It appears to have too many irons in the fire with little by way of a firm plan or strategy to give a meaningful shape to them. Representatives of as many as 56 tribes (iwi) from Aotearoa (New Zealand) travelled and met the group’s leaders to express interest in joining the Polynesian Leaders Group. There were also delegations from Easter Island (Rapa Nui), Tahiti and Hawaii.

Exercising this option of admitting Polynesian peoples across nations would tend to give the grouping a more cultural rather than political flavour. One may argue that the Kanaks are not a nation and yet find themselves in the MSG. But there is a difference. The Kanaks are organised politically and have a specific political agenda that has to do with self-determination, unlike the other ethnically aligned groups that the Polynesian Leaders Group is considering admitting.

Membership along the lines of common ethnicity across nations would make the group a completely different beast compared to the MSG and the Micronesia Challenge, which are firmly based on political sovereignty. While there is a lot that other countries in the grouping can learn from the success of New Zealand Maori in managing their enterprises, this could be done under a different framework that sits below the top layer of sovereign member nations.

The Polynesian Leaders Group can either be a grouping of sovereign nations and territories on a political footing or a grouping of ethnically similar peoples on the basis of culture and heritage.

It cannot be both.

The group will not be able to make a headway without resolving this issue. It is a real dilemma for the leaders that have formed the grouping. Which, in fact, perhaps explains best the delay in issuing a communiqué after the Rarotonga meeting.

Unless it defines itself and what it stands for and works out its aspirations and goals in a clear manner that it can communicate to the world, the grouping will find it harder to find its feet.

While yet trying to work out where its secretariat is to be located even nine months after its formation (it works out of the Samoan Prime Minister’s office at present), it has spelled out common challenges that bind the members: telecommunications, shipping, transportation, investment, climate change among several others.

Because of small populations, distances and weak economic environments, independent Polynesian nations struggle to be connected to the world digitally and logistically.

But having identified these common factors and putting them up-front is a welcome step in coming up with strategies to move the group forward.

All these issues are economic and are common to all member nations of the start-up organisation. But it is the economic and political agenda that the group must concentrate on in order to find its way forward. Cultural and heritage ties can come in later.

Allowing them to cloud out thinking strategies for moving forward, as has happened in last month’s meeting, will create an unnecessary distraction the new, poorly resourced group can ill afford.

The group needs to get its priorities right and be able to float before it even attempts to sail. Adding needless baggage at the outset is not the way to go.

‘The United States obviously realises it is already too late to catch up with China’s boat that is well into the waters of several Pacific Islands nations with a wide range of cooperation initiatives, including financial assistance and infrastructure projects. It will be interesting to see what measures it (US) will take to counter these and woo the small Pacific states back into its influence’

U

nited States Secretary of State Hillary Rodham Clinton’s 11-nation visit coinciding with the Pacific Islands Forum leaders annual meeting in the Cook Islands once again underscores the world superpower’s anxiety over making it known that it still means business in the region.

During America’s two decade-long engagement in the Middle East, the world’s fastest growing economic and military power, China, quietly but decisively spread and deepened its involvement

in the numerous small nations that dot the world’s biggest and least explored geographical feature—the Pacific Ocean.

Over the past several years, the United States has been seized of China’s growing influence in the larger Pacific region and has made several moves to raise its own profile. It has sent senior officials through the region and made statements reaffirming the region’s strategic importance to it. Clinton herself has travelled to the region and made statements about her country’s concerns and the need for it to deepen its involvement.

Islands Business, September 2012 9

WESAY The United States has also revived its geopolitical connections with the two western powers in the region—Australia and New Zealand—increasing its presence in Australia and asking New Zealand’s cooperation in understanding the region better through “New Zealand’s eyes”, alluding to the country’s long and deep associations in the Pacific.

Earlier this year the US held a joint armed forces exercise involving 22 countries in the region called PACRIM, out of Hawaii, tellingly excluding China. In recent years, it has raised the profile of its diplomatic presence in the region with a greatly expanded embassy in Suva and has added smaller outposts in other countries.

With last month’s hopping visit of the superpower’s senior most bureaucrat across 11 countries in the larger region in almost as many days, the United States was continuing on its strategy of making its intention to dig in its heels in the region.

Clinton’s entourage arrived in the Cook Islands at the fag end of the Forum leaders’ meeting after much uncertainty about the visit.

The ‘Will She, Won’t She?” uncertainty was obviously whipped up by the government’s great public relations machine to create a buzz around the region and to keep the speculation continuing in the media. Then, there was uncertainty of the time of her arrival.

Stories about the enormity of her entourage, layouts of her flying office, the fact that the plane ferrying her entourage’s effects had no place to park in Rarotonga so had to be parked in Tahiti appeared in the local and regional media.

The tiny eddies of stories making their way around the watering holes of Rarotonga ahead of the visit rose to a tidal wave of interest as people actually waited looking skyward for the entourage to arrive. This is all part of the United States’ time tested, awe-inspiring image-building strategies.

The brief visit to Rarotonga, from where Clinton began her 11-nation trip, was strategically timed to extract the greatest attention throughout the region. After all, she was descending on a

United States, China tug of war in region

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tiny country of 10,000 people where leaders, Prime Ministers and Presidents of nearly 20 countries would be present and the world’s media would be taking note of the event.

More than any meaningful engagement with the leaders of these nations, it was yet another loud statement about its intent to stamp its presence all over the Pacific. It must be noted too that large delegations from China and other emerging economic powers like India were also present on the island.

China would doubtless watch this trip with great interest. Clinton’s visit will take her through many of the Pacific Rim countries that are in dispute with China over claims and counter-claims around numerous islands in the South China Sea as well as the Northern Pacific. China did not react in any significant way during and after the PACRIM joint exercises and it is unlikely to react to Clinton’s trip and any pronouncements she may have made during her visits to these countries.

The United States obviously realises it is already too late to catch up with China’s boat that is well into the waters of several Pacific Islands nations with a wide range of cooperation initiatives including financial assistance and infrastructure projects. It will be interesting to see what measures it will take to counter these and woo the small Pacific states back into its influence.

The Pacific Ocean will likely emerge as the next theatre of a race between the two major economic powers—the race for influence logically followed by the race for arms. Meanwhile, the nations of the Pacific will have to deal with a new dimension in their relationship with the western world hitherto restricted to Australia and New Zealand from whom they have been steadily drifting away from and towards China.

It remains to be seen how much of an influence the United States will wield in the tug of war between China and the western world in winning over the favours of tiny islands states, which, if they play their cards well, could gain in many ways from the battle of the giants, so long as it does not escalate into a conflict.

• We Say is compiled and edited by Laisa Taga.

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10 Islands Business, September 2012

Whispers China-US oneupmanship games: First, nobody was certain if Hillary Clinton was coming to Rarotonga. When it became certain, nobody knew on which day and at what time she would arrive. But as soon as it became clear that her plane was touching down at 10 pm on August 30 Cook Islands time, the Chinese government’s PR machine went into overdrive. It announced at a media conference at precisely 10 pm—rather late for a media conference by any reckoning— obviously in a bid to lure some reporters away from the lavish welcome that was arranged for the world’s most powerful government official.

No amount of haggling with the Chinese could get them to change the time, a journalist told Whispers. Judging by the media turnout at the airport to welcome Clinton, one wonders if the Chinese had any comers at all.  Bad undercover job: Amidst all the rumours about Hillary Clinton’s itinerary, a senior yankee wearing an island shirt showed up at the newly opened aquaponics facility in Rarotonga. Rumours had it that Clinton was due to visit the facility—but then nothing could be said with certainty, her boffins warned. The yankee in the flowery shirt asked all sorts of questions about the facility but the clever people who run the facility asked him a few of their own. He said he was from Hawaii. What did he do for a living? He was retired, he said. How come he was so muscular and fit and smart and looked years younger than how old he said he was...and the cat was out of the bag. He confessed being a former secret service agent who was on a mission in Rarotonga to case out places of interest including the aquaponics facility because it was on Clinton’s “maybe” list.

Rather amateur, say what?  Of fashion, fiascos, Fiji and foul plays: Too many “F” words in a month cannot be a good thing. Like the feathery fashion fiasco at the recent Miss World Pageant that had most Fijians furious. What a timing, when the nation was still trying to douse the word “Fijian” in the indigenous’ cultural psyche without stirring a furore. Then in the midst of a friction over Miss World Fiji’s owl costume, a major local pageant last month gets accused of foul play when crowning its 2012 queen. The sponsor of that category’s first runner-up pointed a finger at the panel of judges, one of whom, it said, is a relative of the successful candidate.  Hard habit to break: Fiji’s ‘mother of all festivals’ kicked off this year with a theme centered around Non-Communicable Diseases. Contestants were encouraged to focus on NCDs in almost everything they did during the week-long 12 Islands Business, September 2012

Winning cartoon: We talk a lot about climate change and its impact in the Pacific region. Biliso Osake from Goroka, PNG, draws about it. His cartoon on the theme of climate change won 1st prize in the Pacific Category of the Asia-Pacific Cartoon Contest.

The contest, organised by the United Nations Develoment Programme Asia-Pacific Regional Centre and the French Ministry for Foreign Affairs, encouraged people from the Asia-Pacific region to portray issues of concern related to climate change from a human perspective. The winning cartoon highlights the “life and death” realities of sea-level rise for people in small islands developing states in the Pacific and the need for stronger international support to these countries who have done little to contribute to rising emissions. Osake won US$1000 for his winning entry. fiesta. But you can’t break old habits, can you?

The biggest part of the festival, it appeared, was its throng of food stalls selling foodstuffs that ranged from assorted Indian sweets to oily Chinese and half-cooked barbecues, not to mention ice cream, candy floss and unregulated food vendors that sold home-made soft drinks and food parcels prepared in sub-standard hygienic conditions.

And the record crowd that came, needless to say, headed mostly to the food stalls.  Euthanasia anyone? So Fiji has refused a private overseas proposal to consider getting into the euthanasia business. That should get others in the region pondering. Now that global aid packages are being trimmed, business is tough and basically not every government, certainly not in the Pacific, is looking at a strong revenue collection year, maybe tapping into the euthanasia market is not such a bad idea. Those in Australia and New Zealand who claim their ‘right to die’ and prefer to do so via euthanasia methods have to fly all the way to Switzerland where clinics charge around A$12,000 per service. Euthanasia is illegal in Australia and New Zealand. That definitely can be a potential money-spinner for

governments in the islands. At least as far as morality goes, it’s not as bad as being bailed out of national debts by taxpayers’ funds, as happening almost everywhere else.  Changing tunes: Well, it seems the Pacific Islands Forum Secretariat (PIFS) keeps changing the rules. Do you know that PIFS somehow got PPAC to make recommendations to leaders on trade matters (PICTA, EPA, PACER Plus)?

Forum Islands countries tried to remove it but unsuccessfully due to the usual disunity. While none of the recommendations made are controversial, it creates inappropriate precedence for PPAC to make recommendations on trade, as these should have come from the relevant fora (PACPTMM and FTMM).  Disappearing act: The case surrounding the disappearance of three maritime surveillance police officers in a sovereign Exclusive Economic Zone in March this year, coinciding with the shooting of a Chinese fisherman, is still shrouded in secrecy. The officers were understood to be

Whispers patrolling their EEZ when they disappeared. It looks like the government involved has not found closure—particularly for the families.

Air success: One regional airline which seems to be doing well is looking for more destinations to fly to. Already it is flying to Singapore, Hong Kong, two destinations in the Philippines, Japan, Fiji and the Solomons. Now it is looking at flying to Malaysia again, Indonesia, New Zealand and Vanuatu, Whispers hears. Interesting to see what their recipe for success is.

been suspended from the Forum? Here’s what the leaders decision on Fiji contained in their communique said: “Leaders noted the Forum’s ongoing work to encourage and support Fiji’s return to parliamentary democracy in accordance with the Biketawa Declaration and reiterated the Forum’s intention to remain engaged with Fiji.

Leaders welcomed the successful visit of the Forum Minister Contact Group (MCG) to Fiji on 1 May 2012 and noted the Group’s report to Forum Leaders with its assessment of the situation in Fiji. Leaders noted progress made in 2012 towards elections in September 2014, including the registration of voters and the establishment of the Constitutional Commission, and the assurances given to the MCG that there would be freedom of speech, freedom of assembly and freedom for the media. Leaders reaffirmed their long standing offer to support Fiji’s early return to parliamentary democracy, including through the provision of appropriate assistance, consistent with the Forum’s underlying principles and values of respect for democracy, good governance and the rule of law. Leaders also noted the deliberations of PACP Leaders with respect to the involvement of Fiji in purely PACP related activities and the intention of PACP Leaders to consider the matter further at a special meeting of PACP Leaders to be hosted by Papua New Guinea in the near future.” With all those positive words, Fiji will still have to wait before it can be readmitted into the Forum.

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Talking about airlines...There is a move to set up an airline that will link eastern and western Polynesia. Recently, a business group in Niue along with advice from colleagues in Rarotonga have been trying to resurrect the connections between Rarotonga, Niue, Samoa and Tonga, thus connecting the whole of Polynesia from East to West. That is, from Easter Island and the Marquesas to Fiji. Niue is geographically positioned to be the ideal refuelling hub for such services and the New Zealand Government recognises this and has offered to underwrite assistance to Niue to help develop East-West links. But Whispers has been told the Niue Government has declined this offer. One explanation for the government’s response given: “Wellington and Niue are hoping for a second flight from Auckland to Niue next year when more accommodation and beds come on stream and they may feel that the East-West flights may jeopardise this fragile possibility.”

Interesting reading: The SPC review report provides some interesting reading. It talks about many things including which departments it should do away with, the role of the DG, and so forth. Talking about departments, the report recommends that SOPAC should remain a core function of SPC. But for RRRT (Regional Rights Resource Team), it says it should be moved to regional NGOs working in this area. And the Regional Media Centre? Well, the recommendation is for the unit to be downsized and only skills needed to support the enlarged SPC outreach capacity and the communications needs of the Office of the Director-General be retained. On organisational challenges, the report said with the additional responsibilities that came to SPC with RIF, SPC has become a large regional organisation. And because of that, it requires a series of adjustments. One such adjustment is the role of the director-general. Given the present size of SPC and the broad range of activities, the long-standing tradition of all senior management positions reporting to the DG is no longer viable.

The report recommended that a Senior Management Team be created to oversee SPC’s strategy development and implementation performance and other management issues. The senior management team will comprise the DG, the three deputy DGs and the director of SEPPF (Strategic Engagement Policy and Planning Facility).

 Business as usual: So if the United States was satisfied with the Australian military operations and its presence in the Pacific, why are the US troops in Darwin? On the bright side—business is back for the thriving nightlifers who normally line the airport when a new plane arrives.  TV woes: A certain island television station Whispers has been told has not been paying its workers properly. Apparently, the station has been claiming financial problems but the owners seemed to be lapping it up in luxuries like a new car. 

 Pictures say a thousand words: Whispers noted that at the Pacific Islands Forum meeting in Rarotonga, Cook Islands, last month, Fiji Water, natural artesian water from the Fiji Islands distributed worldwide, was on every leader’s table. One political observer joked, if leaders can admit Fiji Water, why not Fiji too, who has

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

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

E-mail: Advertising: advert@ibi.com.fj Circulation & Distribution Sandiya Dass sdass@ibi.com.fj Liti Tokona ltokona@ibi.com.fj subs@ibi.com.fj Regional magazine sales agents Pacific Supplies – Cook Islands Yap Cooperative Association – Federated States of Micronesia Hachette Pacifique – French Polynesia Kiribati Newstar – Kiribati One Stop Stores – Kiribati Robert Reimers Enterprises – Marshall Islands Pacific & Occidental – Nauru South Seas Traders – Niue Nouvelle Messageries Caledoniennes de Presse – New Caledonia Wewak Christian Bookshop – Wewak, PNG Boroko Foodworld – Boroko, PNG UPNG Bookshop – Papua New Guinea Lucky Foodtown – Samoa Wesley Bookshop – Samoa Panatina Chemist Ltd – (Honiara) Solomon Islands Friendly Islands Bookshop – Tonga Tuvalu Air Travel, Shipping, Trade and Consultancies – Tuvalu Stop Press – Vanuatu

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Islands Business, September 2012 13

Pacific Update

People with disabilities on the path to equality in the Pacific

By Ruby Awa*

P

eople with disabilities can experience discrimination, exclusion and neglect. This is true in the Pacific and around the world.

Consider the following true story.

Natasha (not her real name) is 20 years old and lives in a Pacific Islands country.

She has two older sisters who, when they reached puberty, were involved in discussions on relationships and sex with their parents and teachers.

Natasha did not receive a similar education because she was not considered a sexual person as a result of her disability.

But as a teenager, Natasha became involved in a sexual relationship and got pregnant. As the child grew inside her, no one talked to Natasha about ante-natal care or parenting.

When she gave birth to the child, it was immediately removed and given to another woman in the family.

There was no discussion about Natasha’s parental capacity and no consideration given to her role in caring for and interacting with the child that entered the world from her womb.

Following this episode, Natasha’s needs continued to be overlooked. After the birth, she did not receive any instruction on her body, sex, contraception or how to seek help. Natasha got pregnant again and gave birth to two more children over the next two years.

Natasha’s story is not an isolated example. People with disabilities may not have access to sexual and reproduction health information because their community and society tend to ignore their sexual capacity and their interest in sex.

It is estimated that people with disabilities account for around 15% of the population.

This translates to around 800,000 men, women and children living with some form of cognitive or physical disability in the Pacific.

In addition to their impairment, people with disabilities often find that their remaining capacities are underestimated.

As a result, these individuals routinely encounter discrimination that contributes to experiences of indignity, unfair treatment and impoverishment.

There is, however, growing momentum in the region to change attitudes and approaches to people with disabilities.

The Pacific Disability Forum, established in 2002, seeks to bridge the geographic distances of the Pacific and increase dialogue between Disabled Persons Organisations (DPOs).

The high incidence of disability in the region, according to the Forum, is aggravated by the relative poverty of communities and servicing agents.

With increasing recognition of the issues and challenges, and with a boost in funding for disability-related projects and initiatives coming from donors, notably the Australian Agency for International Development (AusAID), there is increased scope for the recognition of the rights and potential contributions of people with disability.

And this is increasingly happening at the country level. In Solomon Islands, Savina Nogebatu pulled together a group representing government, civil society and development partners in November last year to discuss a way forward for people with disabilities.

Nogebatu represents People With Disabilities Solomon Islands, and her goal is to have the needs of disabled people mainstreamed into the national development agenda, that is, considered in all development activities.

She says that people with disabilities have been denied their rights for too long, and it’s time they are included and treated as equal citizens.

Actions such as these are an important step because indicators show that people with disabilities receive less access to education, health and information services compared to those without disabilities.

Trobriand Island dancers...people with disabilities account for a round 15%

It is also well documented that people with disabilities, especially girls and women with disabilities, are over-represented as victims of crime.

In particular, people with disabilities are more likely to be victims of violence, fraud and sexual assault according to People with Disability, an Australian disability rights and advocacy organisation.

Studies in Papua New Guinea and Vanuatu have also shown that children and women with disabilities in these countries are at considerably higher risk of physical and sexual abuse and neglect.

They also face discrimination in terms of the response to acts of violence and abuse that they

Drug swoops worry authorities

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$500-million drug swoop in Australia and an undisclosed catch of cannabis in the Cook Islands in August have alarmed quarantine authorities and raised fears at how illegal drug traders have easy access into the region despite attempts to crack down on such illicit trade.

The Cook Islands—which hosted the powerful 43rd Heads of Government Pacific Islands Forum meeting in August—was woken up one morning last month to the news that a former police chief’s daughter was caught in the midst of a drug ring.

Three Rarotongan locals including a former senior policewoman Inano Matapo, her partner Giovanni Marsters, and a postal officer Sam Tangaroa were engaged in what was described as the island nation’s biggest drug bust.

Police claimed that 10 other locals were being investigated and could face imprisonment once the extent of their alleged involvement was ascertained.

Matapoa, daughter of former a police commis-

14 Islands Business, September 2012

sioner, confessed to selling cannabis in the Cook Islands.

She will spend two and a half years in jail and Marsters six years after being convicted of importing the drug.

Tangaroa, of the local government post office agency, was charged with intercepting drug imports from New Zealand, before police dogs could detect them. He will face four years.

As reported in Islands Business last month, the use and demand for cannabis has risen to exceptionally high levels in the Oceania region in the last five years.

Of particular alarm in the region are Fiji, Palau, Northern Marianas and the Marshall Islands— where according to the World Drugs Report 2012 —increasing percentage of youths were depending on drugs.

The annual report claimed that drugs could eventually lead to deaths or cause extraordinary bouts of rage among new users as well as addicts.

Drugs like cannabis, heroin and ice, an amphetamine derivative, have life destroying capacity.

The report was unclear whether drug use in the islands was derived from local plantations or from New Zealand, Australia and United States.

But the Cook Islands arrests directly linked the imports to New Zealand—where the Rarotonga trio were assisted by a former high-ranking Auckland policeman, Mark Franklin.

Franklin was a small time dealer, selling cannabis from a local bar.

Cook Islands Television quoted informants as saying that a joint effort by police in New Zealand and Rarotonga last year was key to resolving what has been regarded as the Cooks’ greatest drug bust.

Sydney pots $500m In early August, the US Drug Enforcement Administration and the Australian Federal Police clamped down on illicit drugs, with a street value of $A500 million—it was in Australia’s history the

els simultaneously.

Pacific Sisters stated that there is a need to advance anti-discrimination laws in the Pacific and public policies that secure the rights of women with disabilities to accessible health services, afford protection from abuse, provide mental health support, promote family planning and allow for dignified personal assistance in homes.

The recent 2008 UN Convention on the Rights of Persons with Disabilities reflects the evolving nature of perceptions on disability around the world.

The convention makes clear the human rights of persons with disability such as the right to life, education, suitable work, health, freedom of expression, and freedom from violence and degrading treatment.

It encourages better integration of persons with disability in society and makes governments responsible for ensuring that this happens.

The Convention has allowed disability advocates to shift from asking for charity handouts to negotiating with leaders for the respect, promotion, protection and fulfilment of their rights.

All Pacific states have signed the Convention on the Rights of Persons with Disability, but only Vanuatu, Nauru and Samoa have ratified it. Cook Islands has not yet ratified the Convention but has ratified the convention’s Optional Protocol.

count for a round 15% of the population in the region. Photo: Oseah Philemon

experience.

Regional policy initiatives The 2009 Pacific Islands Forum communiqué calling for recognition of disability as a regional issue paved the way for Forum Leaders to commit to the Pacific Regional Strategy on Disability for 2012–2015. This policy provides guidelines for governments to advance disability issues and is implemented by the PIFS Disability Coordination Officer.

The Biwako Millennium Framework and the Incheon Strategy are two key regional strategies on disability that have been developed in the AsiaPacific region. These are used as a policy guide by Pacific Islands countries.

The framework and strategy reflect the current global paradigm on disability: a rights-based approach and disability-inclusive development.

Gender and disability The publication of Pacific Sisters with Disabilities: At the Intersection of Discrimination by UNDP in 2009 revealed that in the Pacific, women are lower in the social hierarchy. Women and girls with disabilities have different life experiences to men and boys with disabilities.

While both genders share the same experiences and challenges, in many circumstances, women with disabilities face intersectional discrimination, that is, discrimination taking place on multiple lev-

•Ruby Awa is a Resource Trainer with the Pacific Regional Rights Resource Team—a Programme of the Secretariat of the Pacific Community.

third largest seizure—a haul of 558kg of heroin and ice.

Arrests were linked to Hong Kong-based syndicates with individuals aged between 29 and 61, operating out of western Sydney.

The cracks were imported in what police said was “unsophisticated wrapping” of 3200 terracotta pots. AFP deputy commissioner Andrew Colvin said their operation led to the largest single catch of ice and the third largest snatch of heroin.

Colvin said the drugs would have made its way to the streets in every state capital in Australia with popular nightlife and even abroad where Australian tourists frequently visit.

“Countless lives would have been affected had this seizure made its way to Australian streets.

Whether it be the users, the healthcare workers that deal with drug issues each and every day, or the family that has been torn apart through illicit drug use,” Colvin told reporters in August.

The illegal shipment contained 252kg of heroin

and 306kg of ice.

The use of such drugs by addicts as well as newcomers encourages thuggery and adds violence on the streets of nightclub scenes in Australia, New Zealand and the islands.

Australia’s border security officials argue that illicit drugs feed violence and anger in our streets and regional quarantine authorities should attempt to curb imports from Asian source countries.

The UN drug report noted that Oceania boasted one of the highest prevalence rates of cannabis use globally, peaking between 9.3% to 14.8% of the working population aged 15-64.

“Evidence suggests that cannabis and other cannabinoids can produce a range of transient psychotic symptoms and cognitive deficits, such as transient deficits in learning, short-term memory, working memory, executive function, abstract ability, decision-making and attention,” the authoritative UN report said. —By Davendra Sharma

Growing recognition of traditional titles—but who holds what?

R

ecognition of the role of traditional leaders in the Cook Islands took a turn for the better in July 2012, when the nation celebrated the inaugural national Ui Ariki Day. As a day set aside to celebrate the aronga mana or those with power in the social strata, Ui Ariki Day (The day for Chiefs) has also resonated strongly with Cook Islanders keen to celebrate a sense of cultural identity.

But for one of the most in-demand va’a tuatua, or orators for the chiefly titleholders, the issue of increased recognition has also unveiled a gap in knowledge.

The paramount chiefly titles are well known by the general public and are few in number— but for the rankings of mataiapo and rangatira beneath them, there is a growing knowledge gap between the history of a title and the person holding it.

“It’s alarming,” says Cultural Affairs official and orator Mauri Toa. “A lot of our traditional title holders here on Rarotonga holding mataiapo and rangatira titles do not have enough knowledge on the history of their title.

“They are unable to clarify simple questions such as the meaning of the name they carry, where the title is originally placed, its history and past title holders, and where this title sits within their own clans and districts.”

Even protocols for investitures have to be explained to those undergoing the traditional ceremonies formalising their change of name and status as title holders.

For Toa, who is often called upon to officiate at events like this and relies on the information to guide his oratory and chants, the lack of knowledge and reliable detail makes his work harder.

“Although some of these questions can be answered, sometimes different versions are heard.

Which is the correct one? It often is left unresolved,” he admits.

Toa is the orator serving Kainuku Ariki of Takitumu, Teaia Mataiapo of Muri, Ngatangiia and Kiriparu Mataiapo of Matavera.

He says his priority as spokesperson for his traditional leaders is knowing the story behind the titles, so that he can faithfully do the duties of his calling and perform the elaborate language skills demanded of the few orators who have reached the ‘taunga’ korero or master level, and gone on to be called on by government and clan members when anything involving traditional protocol and chants come to the fore.

“As va’a tuatua, if I didn’t have the knowledge of these titles, it will be hard for me to elaborate or korero well anytime I speak in relation to them. To avoid that problem, it would be great to see each vaka and village get involved and organise workshops aimed at gathering information on all existing titles in their midst,” he says. His concerns don’t end there.

He and others in culture are concerned at the need to build a generation of confident orators able to help preserve the tradition of the va’a tuatua, especially when it comes to issues of appropriate chants for different occasions and ceremonies. —By Lisa Williams-Lahari

Islands Business, September 2012 15

New tech, development and dangers

I

By Dionisia Tabureguci

f new Information Communication Technology (ICT) is best understood by Pacific Islanders as texting on mobile telephones, updating Facebook, checking e-mails, hashtagging on Twitter, uploading videos on YouTube or downloading music from the Internet, then, as the saying goes: ‘you ain’t seen nothin’ yet’.

Wait ‘til you get burnt. Like the growing number of Fijians these days who are starting to discover that the so-called ‘cyber-space’ or that virtual world that enshrouds the exchange of information over the Internet, can be a very dark, nasty and dangerous place to be.

Yes, you can now travel the world in a few megabytes but in very much the same fashion, can you also lose your bank savings, your Islands Business, September 2012

personal identification details, your children’s innocence, your privacy and even your safety.

All too suddenly in the last two months or so, Fijian media have aired a few “cyber-crime” articles where locals have lost money in thousands of dollars.

The thefts were linked to Internet banking. It wasn’t so much that hackers hacked into Fiji banks. It had more to do with unsuspecting, ignorant customers being tricked by online scammers to divulge key information like usernames and passwords.

Fiji’s relatively advanced telecom infrastructure puts it among the few countries in the Pacific that have been able to quickly roll out new tech-based services like Internet and SMS banking. In a short time too, locals who have signed up for these services have been targeted.

The Cyber Spectre It pays, say those who know the workings of this virtual world, to world—caught using Fiji’s banking system to carry out Internettake at least one basic step: alert and educate yourself, your children, based fraudulent activities will be prosecuted and put behind bars. loved ones and friends to the common dangers that lurk there.

That same month, the Consumer Council of Fiji voiced concerns More importantly, ensure at all times that your computer software over an apparent increase in Internet-fraud related complaints including Internet browsers are regularly updated. brought to its attention during the first quarter of the year. It highFor if it’s not the online fraudsters successfully duping illlighted three cases where complainants had lost a total of F$23,000. informed users for information through a process called ‘phish“In the first case, a single mother lost close to $7000 from her saving’, it is the very tech-savvy hackers designing ings account within a span of 10 days. The money ‘malware’ or malicious software to infiltrate a user’s had been transferred from her account through computer system.

Internet banking into four separate accounts.

These malware, commonly referred to as ‘troInvestigations revealed that the four local recipijans’, enter a user’s computer via the outdated ents had received commission before the money software and outdated anti-virus software. Once was remitted overseas. All four recipients did inside, they begin their sinister pilfering of valuable exactly as they were instructed through the email information such as one’s login details, whether by the so-called employer under the “work-fromthey are for Internet banking, social networking home” scams,” the council said. sites or one’s email account. Another form is the “In the second case, the complainant lost recruitment of local agents or “mules” by overseas F$6,000. In another case, an NGO lost F$16,000 fraudsters under the guise of “work-from-home” from these two accounts, which were transferred schemes. to overseas accounts using money transfer service.

These “mules” are paid a commission by the Market vendors assisted in the transfer of money overseas fraudster to use their bank accounts to through money transfer service. transfer stolen money overseas. In April this year, In all three cases, consumers lost money from the Fijian High Court handed down a seven‘work-from-home’ scams that assisted cyber crimiyear jail term to Fiji-based Vanuatu businessman Siaosi Sovaleni...SPCÕ smanager of the ICT nals to move stolen funds.”

Johnny Albert Stephen, who had been a “mule” Outreach Programme. Photo: community. in an online racket that stole over $38,000 from telecenter.org Awareness campaigns locals in 2009.

Fiji’s Consumer Council chief executive officer Premila Kumar then launched a national awareness campaign on Internet fraud an issue that had received very little attention by local authorities Three months after Stephen was jailed, Fiji’s Financial Intelliand press. gence Unit, which had been key to the initial investigation, issued “Online banking is not as simple and easy as it sounds when a warning that anyone—whether in Fiji or anywhere else in the promoted,” she warned. “It surely is convenient, however, if conIslands Business, September 2012

Cover Report sumers fail to take the necessary precautionary measures to protect the computer, it can become their biggest nightmare and regret.”

It would be naïve for Internet and mobile telephone users in other Pacific Islands Countries (PICs) to think that what’s happening in Fiji would not happen to them.

ICT is a tap that no one can turn off as its effectiveness in reducing service delivery costs and encouraging innovation makes it an integral component of any socio-economic development agenda.

Initiatives like tele-medicine, distance education and e-commerce, among many others, were spawned on the back of revolutionary ICT development and have benefitted millions of people in developing economies. They’ve helped in raising living standards, poverty reduction and put a new and positive spin on rural development.

Governments in the region had already recognised these potential when they drew up a Digital Strategy in their Pacific Plan in 2005, detailing their ambition to let ICT be the driver of their national development.

Since then, PICs have transformed, albeit at varying speed, their national ICT sectors, dismantling monopolies and encouraging market players to invest in infrastructure and bring the world to them.

As a result, more and more governments, government agencies, companies, institutions and individuals are going online, building a Pacific presence that is steadily growing.

While that is a plus for development, the general view is that as telecommunication infrastructures in the islands begin to improve and more people are connected, cyber-crimes will increase.

“More than 50 percent of PICs (Pacific Islands Countries) have 50 percent or more mobile teledensity, which basically means half of their population have access to ICT and are thus vulnerable to incidents like hacking, cyber-bullying and online scams,” said Siaosi Sovaleni, manager of the ICT Outreach Programme at the Secretariat of the Pacific Community’s Economic Development Division.

trend in hacking of banks was highlighted, one in which hackers were able to bypass the two-factor authorisation systems of banks through more sophisticated fraud automation techniques, involving banking malware and specific server-hosted scripts.

The hackers almost got away with plans to steal up to US$2.5 billion from high-balance business and consumer accounts in Europe.

“The new fraud automation techniques are an advancement over the so-called man-in-the-browser (MitB) attacks performed through online banking malware like Zeus or SpyEye,” reported www.computerworld.com.

Pacific not immune ‘Pacific Islands countries (PICs), one cyber-security professional told Islands Business, are not immune.

“PICs’ banks and foreign banks in PICs could definitely be successfully targeted by these attacks,” said Chris Hammond-Thrasher, a former systems librarian at the University of the South Pacific.

A one-time ‘white hat’ hacker—these are people hired by large corporations to test the security of their systems— Hammond-Thrasher is familiar with how “black hat hackers” (criminal hackers) gain access to people’s information.

“In fact, Internet users in numerous PICs have already fallen victim to the online banking malware mentioned in the article (Zeus and SpyEye, etc.).

“The one saving grace for PIC banks is that, to-date, they do not constitute a large enough target for the criminals to create ‘server-hosted scripts’ specifically targeting the online banking sites of PICs banks. To-date, there have only been scripted attacks against larger institutions in developed countries,” Hammond-Thrasher said.

That Pacific banks are spared doesn’t mean they are immune. How prepared they would be to counter such attacks in the future is a question that can also be posed to the individual user who uses the Internet on his mobile phone, computer and other gadgets to network with friends and family, play games, buy or sell, do banking or pay Digital strategy bills among other things.

The programme was birthed out of the realisaThe question of safety and security is also tion that while the Pacific had a Digital Strategy Bank theft...Pacific banks are.not immune from pertinent for companies, governments, governrecognising all the good things about ICT, it lacked hacking. Photo: Islands Business ment agencies and institutions who have moved a component to tackle the negative sides. services and information, including sensitive “Because of the benefits of using ICT for deones, onto digital storage devices such as servers that need to be velopment, the use of ICT is more pervasive and a lot of schools linked to some form of digital network in order to be accessed. now have access to computers and the Internet. These all add up How sure are they that information like state secrets, patients’ to a dramatic increase in our level of vulnerability,” Sovaleni told Islands Business. records, critical infrastructure, company secrets, military secrets Whether people are on mobile telephones or computers and and other information of the sensitive types are secure and cannot engaged in Facebook, Twitter, emails, Internet banking or SMS bill be compromised? How sure are they that the very computers in payment, the security of their information and their safety online are every employee’s desk in their very own offices are not infected issues that policy-makers in the region will be forced to address at by malware and are part of a network of compromised computers some point, if they haven’t yet, because of the dangers in cyberspace. called botnets, which are really controlled by hackers?

Recently, a senior officer at the United Nations Populations In the hacking world, botnets can be used by the hacker at any Fund’s Pacific Regional office in Fiji recounted a recent mission to time to carry out criminal intent.

Vanuatu where he noted concerns by locals over how pornographic Cyber- warfare and cyber-terrorism are terms that are increasingly materials were reaching Vanuatu’s young children through mobile being used these days as nations, especially developed nations, fear telephones. hackers who can cause wide-scale national disruption by activating Obviously, Mobile Pornography or “mo-po” is a million-dollar that network of computer viruses. industry worldwide, and in Vanuatu, the elders are blaming it for The Pacific has had its very own experience of cyber-terror when the increase in early teenage pregnancies, opening up another area in 2008, the Republic of the Marshall Islands crunched to a halt and of discussion on new technology and children. communication blacked out for several days.

In a recent report by Internet security company McAfee, a new Hackers had launched a Distributed Denial of Service (DDoS) 18 Islands Business, September 2012

attack on its sole Internet Service Provider, the government-owned National Telecommunications Authority (NTA).

The attack, it was later reported, had used virus-infected computers to inundate the ISP with spam at a volume that was four times higher than normal. This resulted in a total paralysis of the county’s e-mail system and the disruption affected local banks, government offices, business and people.

Clearly, in this era of rapid changes in ICT, PICs have been urged to drum up awareness—good, bad and ugly—over issues surrounding ICT for the average citizen, as well as other levels of the economy.

“PICs’ level of awareness is increasing but a lot more efforts and resources are needed,” said Sovaleni. “There are many stakeholders in combating cyber-crime and to provide effective interventions to PICs, we need to address their various needs.

“This can be through delivering joint capacity building programmes for practitioners (i.e. law enforcement, prosecutors, judges, etc). It can also mean establishing a national coordination

specifically addressing ‘child pornography’.

Important developments include the endorsement by the Commonwealth Heads of Government Meeting in Australia last year of the ‘Global Cybercrime Initiative’ to look at effective ways to deal with cybercrime, which would assist in legislation and capacity building; the signing by SPC of a Memorandum of Understanding with Netsafe from New Zealand to use their expertise to develop cybersafety programmes for PICs; and the signing of a declaration

by Pacific Chiefs of Police for a ‘Cyber Safety Pasifika, the aim being to equip police in various PICs with the knowledge and resources to educate their communities, including young people, teachers and parents, in all aspects of cyber safety.

At the moment though, the door is still very wide open for hackers, scammers and all those with malicious intent to exploit Pacific Islanders, institutions and governments because of lack of awareness and lack of appropriate laws.

“PICs need legislations that criminalise the use of ICT for criminal purposes. If countries do not have such legislations, then it will be harder to deal with some of these incidents.

In most cases, PICs won’t be able to prosecute people who have committed ‘cybercrimes’ even if they know who they are,” said Sovaleni.

“Another potential problem is that criminals, even organised crime organisations, may relocate some of their online activities to PICs due to lack of appropriate cyber legislation.”

The Pacific is already a known pariah in the ICT world for this very reason.

Most dangerous spaces “Cyberspaces of some (PICs) have acquired a reputation as among the world’s most dangerous and these economies are referred to as cybercrime havens or cybercrime capitals,” wrote Professor Nir Kshetri, of the University of North Carolina-Greensboro, in the US, in a paper he presented at this year’s annual Pacific Telecommunications Pacific Islands Countries...widely considered as amongst the most unsafe cyberspace behaviours that are internationally Council conference in Hawaii. notorious for high levels of cybercrime activities. Photo: Paradise Magazine PICs, he said, were “widely considered as economies among the most unsafe cyberspace behaviours that are internationally body which can be a government agency or even national Computer notorious for high levels of cybercrime activities.”

Emergency Response Team (CERT).

“In a study, a search of the domain name registry for top child “Such a body should ensure that the country can have timely porn site by BusinessWeek reporters showed that some of the most and effective response to incidents. Or even establishing a national notorious owners were based in Tonga. cybersafety (and cybersecurity) programme to identify the needs “Many organised crime groups have typically used (PICs) as and address priorities of the country. staging points for their operations. For instance, according to a “Building ICT capacity and expertise of your ICT professionals 2008 report published by the security company Sophos, in terms and may be more importantly educating your ICT users will go a of SPAM generation per capita, the world’s top three economies long way in mitigating problems associated with ICT such as cyberwere Pacific islands economies: Pitcairn Island, Niue and Tokelau. crime,” Sovaleni added.

“According to the Anti-Phishing working group, in the second half of 2010, the .tk domain name (belongs to Tokelau) came second Legislation only to .com in terms of malicious registrations.

Long ago, the need for legislation in PICs to criminalise the use “Another example of international cybercrimes associated with of ICT for criminal purposes were raised and some countries have PICs, in 2008, cyber-criminals created fake websites involving the begun work on this. .tk, which pretended to be of the UAE Ministry of Education and Fiji tackled it in 2009 with its amended Crimes Decree 2009 but Ministry of Labour to dupe unsuspecting job seekers. of late, has admitted the need to modernise it. Niue and Marshall “They lured teachers from all over the world to apply for job Islands have their drafted cyber-crime bills, according to Sovaleni, vacancies that did not exist and asked the potential applicants to while the Federated States of Micronesia has passed a resolution pay a visa fee,” said Kshetri.

Islands Business, September 2012 19

Politics a sole-source $400,000 ARRA management contract to an individual within days after resigning as a cabinet member.

Prior to these, the attorney-general also stood by the governor who received a massage from a federal inmate temporarily taken out of jail in the wee hours of the morning in January 2010.

Edward Buckingham...from attorney-general to fugive. Photo: Haidee Eugenio

From attorney-general to fugitive from justice Calls for governor’s impeachment growing

By Haidee V. Eugenio In less than 24 hours, Edward T. Buckingham went from being the Commonwealth of the Northern Mariana Islands’ (CNMI) attorney-general and highest law enforcement officer to a fugitive from justice with a US$50,000 cash bail imposed on him for not appearing in court in connection with criminal charges filed against him.

A day after leaving the CNMI using armed police and ports police officers allegedly to help shield him from being served penal summons, Buckingham rescinded his resignation to answer criminal charges. He resigned again about a week later.

Buckingham made these decisions while he was already in San Francisco, California, where he told the media it would be his and wife’s first destination when they leave the CNMI to spend his 30-day annual leave before his official term as attorney-general ends.

Another week later, documents were leaked to the local media showing that a day prior to his controversial “great escape” from the CNMI, Buckingham signed off on a no-bid 25-year power purchase agreement with a mysterious U.S.-based firm for a guaranteed price of US$190.8 million, on top of fuel and other fees 20 Islands Business, September 2012

the CNMI will have to pay.

CNMI Governor Benigno R. Fitial also signed off on the power contract, which was unknown to most of the taxpayers in the CNMI, including lawmakers that under the constitution should approve any public debt.

Resigning for family reasons Buckingham started serving as attorneygeneral in August 2009. Prior to that, he served as assistant attorney-general for the Office of the Attorney-General’s Civil and Criminal divisions for three years each.

Before coming to CNMI, he worked in Kosrae in the Federated States of Micronesia.

On Aug. 1, 2012, Buckingham told the media he was resigning for family reasons. He said he made a decision to resign months earlier, but he and the governor kept the plan under wraps until the last minute.

He said he’s leaving knowing that the CNMI Office of the Attorney-General has accomplished a lot in the last three years amid controversies involving other agencies, contracts and politics.

The controversies involving Buckingham started two years ago, when he allegedly hosted a political campaign at the governor’s private residence in August 2010.

That same year, the attorney-general approved

‘Criminal charges’ When the Office of the Public Auditor (OPA) learned on Aug. 1, 2012 that Buckingham’s last day of work as attorney-general would be Aug. 3, OPA raced against time to file criminal charges against him in connection with cases that it has been investigating since 2010—the political gathering hosting and the ARRA contract, among other things.

But OPA investigators couldn’t find Buckingham on Aug. 3, 2012 to serve him the penal summons ordering him to appear in court on Aug. 6.

OPA investigators camped for hours outside the attorney-general’s known apartment but to no avail.

Acting on a news tip, a television reporter went to the airport to confirm whether Buckingham would be leaving on a 6am connecting flight to Narita, Japan, on Aug. 5. That was a day earlier than what Buckingham earlier told the media.

At around 3:30am that day, six to eight armed police and ports police officers escorted Buckingham and his wife to the airport using marked and unmarked vehicles.

Police officers blocked the news reporter from interviewing Buckingham and prevented her from taping some of the events that unfolded at the airport.

Despite the blocking, enough footage was taken to show Buckingham was escorted by the deputy commissioner of the police force and the governor’s personal police escort, among others.

OPA sought the help of the FBI. An FBI agent was able to serve the penal summons to Buckingham shortly before his plane took off at 6am.

The footage of Buckingham’s departure and the use of on-duty police and ports police officers in an apparent attempt to block any penal summons from being served drew outrage from people and officials.

Senate President Paul Manglona said Buckingham and the agencies involved need to be investigated for possible “obstruction of justice and cover-up.”

‘No excuse’ “The attorney-general should know better than not to appear in court when there is an order for him to do so,” the Senate president said.

Florida-based human rights activist and former CNMI teacher Wendy Doromal described the airport incident as “a blatant abuse of public funds and yet another example of CNMI-style in-your-face corruption in an ever-growing series of corrupt and illegal schemes committed by CNMI government officials”.

“It is not acceptable that the deputy police commissioner and eight police officers who are charged with enforcing all laws are using government resources, equipment, and personnel to assist a high-ranking government official to break the law and become a fugitive from justice,” she said.

She said “Buckingham’s example and actions are not befitting the office he holds and is an insult to the good people of the CNMI.”

NORTHERN MARIANA ISLANDS A day after leaving CNMI, Buckingham informed the governor he was rescinding his original notice of resignation, to answer the charges filed against him by the Office of the Public Auditor. Fitial accepted the decision.

The governor issued a statement saying his biggest regret in life was appointing Public Auditor Michael Pai, whom the governor described as having a personal vendetta against Buckingham.

CNMI Superior Court Associate Judge David A. Wiseman issued a bench warrant for Buckingham’s arrest for not appearing in court despite the penal summons served on him by an FBI special agent.

The judge imposed a US$50,000 cash bail for Buckingham, saying he flagrantly disregarded the court’s lawful penal summons.

The judge also said he does not find any justifiable excuse for Buckingham not appearing in court.

OPA, at the time, filed an amended information adding two more charges against Buckingham.

The new charges obstructing justice: interference with service of process and misconduct in public office, both were related to Buckingham’s alleged use of police officers to escort him to the airport to avoid being served with penal summons between Aug. 3 and Aug 4.

O PA l e g a l c o u n s e l George L. Hasselback said Buckingham’s order for assistant attorney-general Gil Birnbrich to appear as his counsel is improper and another waste of public resources.

“Buckingham is a criminal defendant,” Hasselback said, adding that he believes it is improper for the Office of the Attorney-General to “represent a criminal defendant.”

Within days, lawmakers asked the governor to ask for Buckingham’s resignation. Lawmakers also initiated investigations into alleged abuse of power and misuse of government resources when police officers aided Buckingham in the commission of a law violation, by avoiding the serving of penal summons.

NMI Association, which also has the governor as its president and chairman. People are asking whether an attorney-general could be a political party official. Despite Buckingham’s absence from CNMI and his resignation effective immediately, investigations about him continue.

Hefty contract But just as when the public thought they had heard enough about the former attorney-general, they woke up to the news of a sole-source power purchase agreement signed by Buckingham on his last day of work on Aug. 3.

The contract could cost CNMI more than US$200 million in 25 years because taxpayers also have to pay for fuel, operations and maintenance fee, among other things.

The 25-year agreement with Saipan Development LLC, a mysterious company registered in Delaware five days before entering into an initial deal with the CNMI in March, is among the most expensive government contracts in CNMI’s history.

The 41-page power purchase agreement grants Saipan Development LLC an “exclusive right to develop a diesel-generated electric power plant” on Saipan.

Delegate Gregorio Kilili Sablan, outraged by the secret power contract, said “once again,” the governor “has shown that he has no respect for the people of the Northern Mariana Islands”.

“First, he declared a CUC emergency, then, using his emergency powers, he signed us all up to pay over US$200 million over the next 25 years. And for what?

Fitial apparently signed this sole-source contract under his emergency declaration. How can a project that won’t be shovel-ready for years, be considered a solution to a so-called ‘emergency’ and circumvent the normal CNMI procurement process?” Sablan asked.

...ordinary citizens have started pressing lawmakers to support impeaching the governor, a few months away from the November mid-term elections.

‘Resigned again’ About a week later, Buckingham resigned again, this time citing personal and medical reasons. The governor accepted Buckingham’s resignation and appointed attorney Viola Alepuyo as acting attorney-general for up to 90 days.

The acting attorney-general asked the public for prayers and patience as “the challenges are great and resources are limited”. But Alepuyo’s appointment as acting attorney-general is not without controversies as well. She is the wife of the political candidate that Buckingham allegedly hosted at a gathering at the governor’s residence in 2010. That delegate candidate is now a Superior Court judge, after he was appointed by the governor.

The acting attorney-general is also the national committeewoman for the Republican Party of the

Impeachment All these recent events prompted the House minority bloc to redraft a resolution they have been working on for months to impeach the governor mainly for corruption and neglect of duty.

The majority bloc, meanwhile, withdrew its resolution calling the governor to ask for Buckingham’s resignation because he had already resigned.

As of Aug. 22, minority lawmakers have yet to file that impeachment resolution.

But ordinary citizens have started pressing lawmakers to support impeaching the governor, a few months away from the Nov. 6 mid-term elections when most of the lawmakers allied with the governor are seeking reelection.

All these were happening while the governor was off island on a three-week trip to Hawaii, American Samoa and the U.S. mainland for business and personal reasons, including attending the Republican National Convention in Tampa, Florida.

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Politics

Redwing and 1958 Hardtack nuclear test series have remained shrouded in secrecy.

This is not the case for the 1954 Operation Castle that started with the 15-megaton Bravo hydrogen bomb test on March 1, the largest ever tested by the United States, and continued through May with five more high-powered tests.

A detailed Atomic Energy Commission report on Operation Castle fallout at dozens of islands in the Marshalls, islands in Micronesia, Japan, Hawaii and Alaska was issued on January 18, 1955.

This 79-page report, entitled “Radioactive Debris from Operation Castle—Islands of the Mid-Pacific,” remained secret until it was approved for public release in May 1994, nearly 40 years after it was written. But publicly released it was.

The significance of this report, aside from confirming that the US weapons testing program kept careful measurements of airborne fallout throughout the Marshall Islands and the north Pacific, is that it demonstrates the inadequacy of US governmentprovided compensation.

The US has maintained since Calin Georgescu...UN Special the 1950s that only four atolls Rapporteur on nuclear testing in the were exposed to the fallout: Marshall Islands. the test sites of Bikini and Enewetak, and the downwind atolls of Rongelap and Utrik. But this 1955 report shows that the fallout from Bravo and other megaton level hydrogen bombs, tested as part of Operation Castle, deposited nuclear fallouts on To a safer place...Bikini Islanders were evacuated from their home atoll in March 1946 for the 22 inhabited atolls, and some of the “smaller” start of the United States’ first post-World War II nuclear weapons tests at Bikini. Photos: Giff Johnson hydrogen tests doused nearby islands with more fallouts than the infamous Bravo test.

A point made by Marshall Islands officials as they compare eligibility for nuclear test compensation in the United States with the Marshall Islands, a program started in 1990 for “Downwinders”—people living near the US Nuclear Test Site in Nevada—compensates Americans whose highest radiation dose is less than the lowest dose received by Marshall Islanders, most of whom are classified as “unexposed” by the US government.

When Marshall Islands leaders were negotiating with the United States in the early 1980s for nuclear test compensation, they had no access to this 1955 report and so had no basis for negotiating a fair nuclear compensation agreement. The ments, a report reviewing the US nuclear testing

By Giff Johnson agreement approved by Marshall Islanders in program at Bikini and Enewetak through the lens 1983 and the US Congress in 1986 provided a of human rights can only be sympathetic.

A United Nations Special Rap$150 million trust fund and named only the four The report is expected to comment on the fact porteur will release his report on atolls as exposed. that more than 50 years after the last nuclear test, the United States nuclear testing Meanwhile, the fact that information on the information on fallout exposures still remains in the Marshall Islands when the UN Human fallouts from the 1956 and 1958 tests remains a classified. Since the beginning of this year, the Rights Commission opens its session in midsecret continues to prevent Marshall Islanders Marshall Islands government has begun hamSeptember in Geneva. from knowing the full extent of the impact of mering on Washington to open up its files as the That report, as Special Rapporteur Calin US nuclear testing. In 1956, the US exploded 17 Clinton Administration did beginning in 1994.

Georgescu made clear in a summary briefing after nuclear weapons as part of Operation Redwing What is remarkable is that the US governa visit to Majuro in March this year, will show (all tests in this series were named after American ment has never released fallout dose data for the the problems from the US nuclear testing in the Indian tribes). Redwing extended from May 4 to majority of the 67 tests conducted at Bikini and Marshall Islands have yet to be fully addressed July 21, 1956.

Enewetak. and vision is needed “to tackle the residual conThis was followed in 1958 by Operation HardDespite the release of thousands of classified sequences of the nuclear testing program”. tack I, which featured 33 nuclear weapon tests nuclear test-era documents following a directive For Marshall Islanders who have been upfrom April 28 through to August 18, 1958—the

by President Bill Clinton beginning 1994, inrooted repeatedly, exposed to nuclear fallout last US test conducted in the Marshall Islands. formation about the fallout doses from the 1956 and re-exposed to fallout contaminated environ-

Marshalls pushes US for action on nuclear testing

UN Special Rapporteur’s report reveals all

Islands Business, September 2012 23

Politics Although the six tests in Operation Castle in 1954 accounted for nearly half of the megatonnage of all 67 tests conducted in the Marshall Islands, Redwing and Hardtack I accounted for 75 percent of all tests carried out at Bikini and Enewetak.

According to the Marshall Islands government and Nuclear Claims Tribunal officials, no document has been released by the US government on Redwing or Hardtack I that is similar in nature to the January 18, 1955 fallout dose report on Operation Castle.

Marshall Islands’ Foreign Minister Foreign Minister, Phillip Muller, at an annual meeting with US Department of Energy officials in June put them on notice that his government wanted the release of more nuclear test era documents.

“There can be no closure without full disclosure,” Muller said. Separately, the Marshall Islands Journal, the weekly newspaper published in Majuro, has requested the US government to provide fallout dose studies from the 1956 and 1958 tests.

“The United States is committed to a full and open collaboration with the Republic of the Marshall Islands regarding radiological monitoring, rehabilitation of affected atolls and nuclear-related health care assistance,” said a US interagency response to the Marshall Islands Journal earlier this year.

“As part of our commitment, we have released all documents related to the nuclear tests. All documents were reviewed, redacted and released to the government of the Marshall Islands.”

Many formerly classified US government documents from the nuclear test period had words, sentences, paragraphs and in some instances, entire pages deleted or blacked out by magic marker.

But the newspaper, working through the US Embassy in Majuro, pressed Washington: “Will the US release fallout data and radiation dose information for the 1956 and 1958 tests similar to those provided for Operation Castle?”

In late July, the US Embassy provided another response from Washington. This one was longer, but an important sentence in the reply suggests the possibility that the public release of the 1955 Operation Castle fallout dose report in its entirety was, in fact, a mistake.

“Disclosure of un-redacted documents for Castle Bravo does not imply that records for other test series can be released in their entirety or whether the US will do so in the future given the provisions of the Atomic Energy Act,” said the US government interagency reply to the Journal.

“To-date, all historical data under the control of the Department of Energy concerning nuclear testing have been released. However, parts of some documents were redacted or ‘deleted’ to protect information about individuals and some to comply with the Atomic Energy Act. Of 1954.

“As always,” the US government’s response said, “the United States is committed to releasing all information possible while complying with established policies and in accordance with US law.”

Whether it is the impending release of the UN Special Rapporteur’s report, or the obvious legitimacy of the Marshall Islands asking for classified nuclear test information to be released, US Secretary of State for East Asian and Pacific Islands Affairs Kurt Campbell told Marshall Islands leaders he would initiate a review of the data available for public release after his early August island-hop through the Pacific.

“Some documents provided in the past were so heavily redacted as to make them unreadable,” said Campbell at a media conference after meeting with President Christopher Loeak in Majuro on August 2.

“It is fair to ask the United States to see if we’ve provided the Marshall Islands with information it needs to understand more fully (the nuclear test legacy).

“The government was very clear,” said Campbell at the media conference following the meeting. “It is an issue of concern and the government expects it to be addressed.”

He said while the US government believes “we have provided generous resources (for nuclear testing compensation) over the course of many years,” the US government is prepared to make available classified information from the test period.

During Campbell’s visit to Majuro, Muller recalled a 1986 video of a talk by President Ronald Reagan for the Marshall Islands and Micronesia as they were about to begin the Compact of Free Association relationship with the US. Reagan referred to the islanders as “family”.

“President Reagan was right, we are family,” Muller told Campbell. “But, as in any family, there have been times when each of us could and should have done better. There are several areas and issues where a better understanding and dedication of more resources are needed. I have no doubt that we can find solutions to the unresolved matters in those areas and, on behalf of the government and people of the Republic of the Marshall Islands, I look forward to working with you and the US government towards creating such solutions.”

As he ended these remarks, Muller pulled out a small electrical box with three buttons on it.

“Having embarked on the second quarter century of free association between our two nations,” said Muller, “I propose that we mutually commit to doing better for each other in the future. And, in order to memorialize that commitment, let us together push this reset button to signify a shared hope for better relations.”

The Marshall Islands has high hopes the UN Special Rapporteur’s report will prod the United States to accept the need to work with it on what it considers to be outstanding compensation needs for personal injuries and land damage, as well as nuclear clean-up issues, and the need for expanded medical care.

The report will be available at the UN Human Rights Council’s website, http://www.ohchr.org/ EN/HRBodies/HRC/Pages/HRCIndex.aspx, once it is issued in mid-September.

The Marshalls has high hopes the rapporteur’s report will prod the US to work with it on what it considers to be oustanding compensation needs.

24 Islands Business, September 2012

O’Neill govt’s priorities Fighting corruption top on the list

By Oseah Philemon The new PNG Government of Prime Minister Peter O’Neill plans to make the fight against corruption central to its new set of development policies which it will pursue over the next five years.

The policies were outlined by GovernorGeneral, Sir Michael Ogio, when addressing the Ninth Parliament in Port Moresby last month.

The O’Neill regime will start with a major legislative programme which includes repealing laws it passed last year to prevent former prime minister Sir Michael Somare ever becoming prime minister again.

O’Neill has also written to Police Commissioner Tom Kulunga to have sedition charges against Chief Justice Sir Salamo Injia and Justice Nicholas Kirriwon and charges of interfering with political liberties against senior police officer Fred Yakasa dropped, “in the best interest of the country and the people”.

The three men were arrested and charged by police on a complaint laid by the Prime Minister during the impasse about a month before the 2012 National Elections.

Some of O’Neill’s policies announced by Governor-General Ogio include: Legislative Programme O’Neill will review the provisions of the constitution to ensure stability. While details have not been revealed, it is likely to include laws relating to the election of the Prime Minister, parliamentary terms, and so on.

The Organic Law on National and Local Level Government Elections as well as the Organic Law on the Integrity of Political Parties and Candidates will also be amended to make them more effective and relevant.

O’Neill is also working on passing a new legislation to remove political uncertainty. This will allow the government to remain in office for the entire five-year term.

In a move to promote reconciliation and unity and to build respect and independence among the three arms of government, the government will repeal the Judicial Conduct Act, the Supreme Court Amendment Act, Parliamentary Powers & Privileges Act and amendments to the Prime Minister & NEC Act. “We will also pass an Act of Indemnity to indemnify all persons affected; similar steps have been taken in other parts of the world. These laws were passed last year by the O’Neill-Namah

Politics

PAPUA NEW GUINEA

under negotiated service agreements.

LNG Projects The government will ensure that the PNG LNG Project will be delivered on time so that revenue flows will begin 2014.

The Inter-Oil LNG project will also be given priority support to ensure the delivery of this project during the term of this government.

In this regards, the government will immediately establish a state negotiating team. This will comprise key agencies to negotiate a gas agreement with Inter-Oil and its partners. The team will work with Petromin, the State nominee, to ensure the best gas agreement is negotiated.

Specific consideration will be given to increased benefits for landowners, local level governments and provincial governments. These two projects will underpin our economy for the next 40 years.

PM Peter O’Neill (left)…wants to ensure political stability is maintained. Photo: Oseah Philemon

Government.”

The O’Neill government also plans to promote increased investment and free travel between Australia and New Zealand by allowing for Dual Citizenship under a new law to be introduced.

The Public Service Management Act will also be reviewed to make the civil service more effective.

Legislative changes will also be made to laws relating to public finances, mining, police, correctional services, defence and oil and gas.

5-year Development Programme Apart from the legislative programme, O’Neill will review the government’s Medium Term Development Plan (MTDP) to bring it in line with the requirements of the annual budgets.

Under the revised Medium Term Plan, the government will focus on the following areas: • Education The government will extend the tuition fee free education and subsidy policy to Grade 12, provide infrastructure development support to tertiary institutions including housing for teachers in rural areas.

Training for teachers will be given priority to achieve maintenance of standards and quality education. A major review of conditions of teachers will also be undertaken.

The government will provide IT infrastructure to rural schools so children in remote areas can access or develop skills in IT. Technical and vocational training will also receive special attention.

• Health care The government will maintain its commitment to accessible and affordable health by providing free primary or basic health care and subsidised specialist health care.

Private health care services will be encouraged.

This will be achieved through the introduction of a National Health Insurance Policy in partnership with private health care providers.

At the same time, the government will also increase training of health care workers, re-open all closed aid posts and improve the management of medical supplies and equipment throughout the country.

The government will undertake a review of the National Population Policy with the aim of bringing the population issue as a major development agenda for the country.

Special attention will be given to containing the HIV/AIDS and TB epidemics, noncommunicable diseases and reducing maternal, childhood mortality rates and cancers, particularly in women.

Corruption The O’Neill Government is committed to continuing the fight against corruption by providing funding and the institutionalisation of the inter-agency committee against corruption, in particular, the Task Force Sweep.

In addition, it will introduce a bill to establish the Independent Commission Against Corruption (ICAC).

Infrastructure A major review of the way infrastructure development programmes are organised in PNG will be undertaken.

A new-look authority will be set up to mobilise and negotiate financial resources and technical expertise both in-country and offshore.

The authority will oversee the administration and management of nominated major roads to link provinces with the aim of opening up the country and major economic and social infrastructure projects during this parliamentary term.

Similar attention will be given to all maritime provinces in the maintenance of jetties, wharves and provision of shipping services in partnership with the private sector and other service providers.

Air services to rural areas will be negotiated with private providers with a range of incentives

Law & Order Priority will be given to the restructuring of the Royal Papua New Guinea Constabulary (RPNGC) by creating the Office of the Secretary for Police, while reviewing the process of the appointment of the Police Commissioner and his deputies.

This restructuring will allow the police chief to focus on the effective operations of the Police Force, whilst the Secretary of the Police Department will focus on the administration and management of the police force.

A vigorous training programme to increase the size of the police force will be undertaken, and the government will fully fund the police to undertake their duties including improving their employment and living conditions.

The government will undertake a similar approach to both the defense force and correctional services.

Public Sector Reform The government will overhaul the public service for improved efficiency and accountability.

A performance-based and outcome-orientated policy will be undertaken for all levels of the public service from Waigani right down to local level governments.

It will review current arrangements of the Department of Personnel Management and the Public Service Commission.

The government will also introduce incentives for public servants such as improved salaries, affordable housing in urban and rural areas, and rewards for performance including penalties for poor performance.

Public Private Partnership Under the government’s Public Private Partnership Policy, the private sector will be invited to partner with government with the aim of ensuring efficiency in the State Owned Enterprises, creating employment for our citizens and increasing income earning opportunities for our people.

A negotiated partnership arrangement will be undertaken. Citizens, local and provincial governments, national financial institutions, unions, NGOs and churches will be invited to buy shares in this arrangement.

Islands Business, September 2012 25

Politics

AUSTRALIA and Manus Island—despite the high costs of more than A$1 billion. “Onshore processing encourages people to jump on boats.”

The Solomon Islands was also considered by the Houston Report but was not taken to be as feasible. Similarly, the Gillard government’s plan to send refugees to Malaysia was rejected.

Nauru president Sprent Dabwido (left)...receptive to the Australian move. Photo: Lisa Williams-Lahari

Islands rake A$1 billion at Australia’s loss Is it unjust and inhumane?

By Davendra Sharma Lobby groups are crying out describing it as harsh but the Australian government argues it is the only way to deter foreign refugees from finding easy passage into Australia.

From August 13, boats carrying illegal immigrants and heading towards Australia were turned away and sent to Nauru and Papua New Guinea’s Manus Island.

It follows recommendations of an expert independent panel, which said Nauru and Manus Island should be accepted as part of the “Pacific Solution”, as a deterrent to the thousands of refugees who turn up on Australia’s shores yearly.

Australia’s Prime Minister Julia Gillard accepted the plan was harsh but the solution was better than what the Opposition in Australia had suggested—turn the boats back—saying this would require significant operational, safety-oflife, diplomatic and legal conditions.

Gillard said refugees were committing suicide on boats once they are turned back to their homes. “I’ll tell you what’s harder; watching people drown.”

Increase refugee intake to 27,000 by 2017 The panel investigating Australia’s refugee crisis—which involves groups of asylum seekers travelling to Australia in small boats from mainly poor Asian countries and at times from the Middle East—was headed by Australia’s former Defence Force chief Angus Houston; refugee 26 Islands Business, September 2012

expert Paris Aristotle; and former diplomat Michael L’Estrange.

Under the UN Convention on Refugees, Australia is obliged to accept refugees with genuine concerns of safety in their home countries.

The report said Australia should increase its refugee intake under humanitarian grounds from 13,750 to 20,000 a year, and then to 27,000 in five years.

“Boat arrivals would no longer be able to sponsor family members under a special humanitarian programme,” the report recommended.

Since 2007, when Labour’s Kevin Rudd swept into office, Australia has seen the arrival of 22,458 refugees on 385 boats. A further 602 refugees had died at sea.

A$1 billion a year in cost to Australia, gains to islands When Nauru and PNG’s Manus Island were used previously by Australia to house illegal immigrants, it was costing Australia’s $1 billion a year to maintain.

Nauru has been used as an offshore processing centre since September 2001 with 1637 detainees held there—of which only 705 were allowed to settle in Australia. Nauru is about 4000 kilometres from Sydney and Manus Island is 3500 kilometres from Australia.

Manus Island was used from 2001 to 2004 and the Gillard government preferred the PNG point last year but due to internal conflicts and political struggles there, the plan was shelved.

The report stated it would be wise for Australia to keep asylum seekers at such centres like Nauru

‘Patronising attitude towards PNG’ While Nauru president Sprent Dabwido was receptive to Australia’s move, there were questions asked in Port Moresby after the new government of Peter O’Neill was sworn in.

Dabwido told the media that Gillard’s offer to Nauru was “very positive and productive”.

“While the broader solution rests with the Australian government, Nauru is only too keen to play any role that will contribute to reducing this unacceptable situation,” he said.

PNG insisted on a new Memorandum of Understanding whereas Nauru was willing to resurrect the previous arrangement.

O’Neill had officially accepted Australia’s offer to open Manus Island as a regional processing centre but there were cries of opposition from the Catholic Church and some local politicians in PNG. Father Victor Roche, the General Secretary of the PNG and Solomon Islands Catholic Bishops Conference, told reporters that they were against the plan.

Former PNG attorney-general Sir Arnold Amet also warned that Australia was being presumptuous by debating on a legislation to send refugees to PNG and Nauru without even asking PNG. “Australia has debated this over many years as to whether they go to Malaysia or Nauru or come to Papua New Guinea,” he said.

“We cannot overnight be expected to rubberstamp it (decision). It’s like a patronising attitude towards Papua New Guinea and we cannot simply be expected to do this. I think Australia has handled this very poorly.”

He said the problem was Australia’s to solve as the refugees really wanted to go to Australian shores.

“Struggling Pacific islands states cannot be presumptuously treated like Australian territories with the token gestures of development dollars for removing this problem from Australian soil,” he said.

“This is a moral dilemma. We can’t simply be forced upon to take these people.”

The International Organisation for Migration (IOM) has agreed to requests by the Gillard government to run the facilities in Nauru and PNG. A team of Australian Defence and Immigration Department officials went to Nauru and PNG in late August to assess the readiness of the utilities, such as water and power. IOM’s chief of mission in Australia, Mark Getchell told the media in August that his organisation’s head office in Geneva has given an in-principle agreement to Canberra about its Nauru and PNG options.

Getchell said Gillard’s offer was on the face of it, “much more inclusive” than the old Pacific Solution, with a greater role for NGOs and refugee advocates.

FIVE YEARS OF ACHIEVEMENT

the skills they have acquired through that can open the doors of opportunity in other countries.

July 2012 marked the completion of the first five years of the Australia-Pacific Technical College. They have been five years of achievement in which the APTC has seen nearly 4000 students graduate from across 14 Pacific countries with a wide range of trade, hospitality and health and community services qualifications after completing their courses at its campuses and teaching centres throughout the region.

From the start in 2007 training in the APTC has been allocated to five industry areas offering courses and qualifications in subjects considered essential to economic growth in the Pacific: automotive, construction, electrical, manufacturing, tourism and hospitality and health and community services.

In recent times, more training has been provided in areas where there is high demand for existing skills and also new and emerging areas of work opportunities. So many new courses have been added to the training profile with a view to making APTC a demand-driven training institution.

Barry Peddle, Chief

Executive Officer of The qualifications, skills and knowledge these the Australia-Pacific students now have will provide them with better Technical College. career and employment opportunities locally and regionally. They will also have greater career mobility to places like Australia to work in high demand skill shortage areas if that is a career path they seek.

The APTC has proved to be among the most imaginative education and training ventures in aid and development undertaken byte Australian Government. Imaginative because it was conceived not on the principle of simply offering a grant to a developing country but of a donor country sharing its skills to help less developed economies to help themselves.

Imaginative too because it was designed to offer its Pacific region students an Australian vocational qualification in their field, thereby widening enormously the opportunities available to skilled Pacific workers.

APTC alumni throughout the Pacific are now equipped with skills that have led to improved work opportunities in their own countries, and – thesis very important in the case of smaller Pacific economies – elsewhere.

Where there are few opportunities at home, these alumni are finding that

From the time the concept of an Australian technical college in the Pacific was first publicly raised, in 2005 at a meeting of the Pacific Islands Forum in Papua New Guinea, through to today, the APTC has worked closely with the government and educational institutions in its host countries. It has also entered into close and productive partnerships with local industries, training the staff they need for expansion and often receiving the hospitality of its premises and facilities for its teaching programs.

Of particular pride to the APTC are the scholarships sponsored by the Australian Government. These have meant that all eligible citizens of Pacific Islands Forum countries have had the opportunity to enrol in APTC courses, not just those who could afford to pay. The APTC was designed to fulfil three goals, the second and third deriving from the first: training, employment and prosperity.

Training produces the skilled workers needed for expanding industries.

Training gives these workers the qualifications to gain employment. And employment leads to prosperity, of individuals and national economies. It is fair to say that helping Pacific countries grow, through capacity building and knowledge transfer has been the real success of the first five years of the APTC.

Interested in achieving an Australian Qualification Interested in has achieving an Australian Qualification The Australia Pacific Training College (APTC) is an Australian Government aid program and been established to deliver a range of qualifications from Certificate III to Diploma. It has been providing vocational training and Australian qualifications in the Pacific with campuses in Fiji, Samoa, Vanuatu and PNG. The APTC is aimed at skilling and qualifying Pacific Islanders for a range of vocational occupations needed throughout the Pacific The Australia Pacific Training College (APTC) is an Australian Government aid program and has been established to deliver a range including, health and community services, hospitality and tourism , automotive, manufacturing, construction and electrical trades. of qualifications from Certificate III to Diploma. It has been providing vocational training and Australian qualifications in the Pacific with campuses in Fiji, Samoa, Vanuatu and PNG. The APTC is aimed at skilling and qualifying Pacific Islanders for a range of vocational occupations needed throughout the Pacific Applicants will need submit the following with their application form: including, health and to community services, hospitality andcompleted tourism , automotive, manufacturing, construction and electrical trades.

• Passport or birth certificate (copy only) or a certified statutory declaration listing your full name, date & place of birth and the full names of your parents • Certificates/Awards have received (copy only) application form: Applicants will need to submitthat theyou following with their completed • Your resume/CV Passport or birth certificate (copy only) or a certified statutory declaration listing your full name, date & place of birth and the full names of your parents • 2 Passport sized photos yourself Certificates/Awards thatofyou have received (copy only) • Your resume/CV Successful will be contacted for a skills assessment/interview.

• 2applicants Passport sized photos of yourself Successful will be contactedTechnical for a skills College assessment/interview.

Studying applicants at the Australia-Pacific can open a world of opportunities. We have international trainers who are supported by national tutors with local industry experience.

Studying at the Australia-Pacific Technical College can open a world of opportunities. We have international trainers who are supported by national tutors with local industry experience.

If you’d like to know more about the APTC, the courses we offer and qualifying criteria please visit our website at www.aptc.edu.au. If you’d like to submit an application you can download forms from the website or obtain If you’d like to know more about the APTC, the courses we offer and qualifying criteria please visit our website at further details by phone +679 672 8777, fax +679 672 7981 or email enquiries@aptc.edu.au www.aptc.edu.au. If you’d like to submit an application you can download forms from the website or obtain further by phone +679 8777, fax +679 672 7981 email enquiries@aptc.edu.au APTC candetails also deliver training for 672 industry in your workplace.

If yourororganisation is interested in talking to APTC about options, please contact us.

APTC can also deliver training for industry in your workplace. If your organisation is interested in talking to APTC about options, please contact us.

Do you work or have studied in the hospitality and tourism industry as a cook, food and beverage attendant, room attendant, housekeeping, pastry cook, patissier, stewarding, Do you work or have studied in the hospitality and tourism industry as a cook, food and tour guide, tour operator or tour manager?

Or do you work or have studied in the health beverage attendant, roomfield attendant, housekeeping, pastry stewarding, and community services as a community worker, agedcook, carepatissier, attendant, disability tour guide, tour operator or tour manager?

Or do you work or have studied in the health support or youth worker? and community services field as a community worker, aged care attendant, disability support or youth worker? and Community Services is currently taking applications for the APTC School of Hospitality following certificate programs commencing in 2013: APTC School of Hospitality and Community Services is currently taking applications for the certificate programs commencing in 2013: -following Commercial Cookery (Rakiraki, Fiji) - Hospitality Supervision (Rakiraki, Fiji) - Patisserie (Namaka, Fiji) - Hairdressing (Suva, Fiji) - Tourism Commercial Cookery (Rakiraki, Fiji) Hospitality Supervision(Namaka, (Rakiraki, Fiji) Fiji) Operations (Namaka, Fiji) Operations Patisserie (Namaka, - Hairdressing (Suva, - Community Services Fiji) (Suva, Fiji) Disability (Suva, Fiji)Fiji) - Tourism Operations (Namaka, Fiji) - Hospitality Operations Youth Work (Suva, Fiji) Home/Community and (Namaka, Aged CareFiji) (Suva, Fiji) - Community Services (Suva, Fiji) - Disability (Suva, Fiji) - Youth Work (Suva, Fiji) - Home/Community and Aged Care (Suva, Fiji)

Do you work or have studied in the trade industry as a carpenter, floor and wall tiler, automotive mechanic, fabricator, welder mechanical fitter, electrician, diesel fitter, Do you work or have studied in and the air-conditioning trade industry as a carpenter, floor and wall tiler, painter, plumber or refrigeration mechanic? automotive mechanic, fabricator, welder mechanical fitter, electrician, diesel fitter, painter, plumber or refrigeration and air-conditioning mechanic?

APTC School of Trades and Technology is currently taking applications for the following certificate programs commencing in 2013: APTC School of Trades and Technology is currently taking applications for the following programs commencing in 2013: - Carpentry (Fiji and PNG) -certificate Automotive (Fiji and PNG) - Diesel Fitting (Fiji and PNG) - Fitting and Machining (Fiji, Samoa and PNG) Automotive (Fiji and PNG) Carpentry (Fiji PNG) (Samoa and PNG) - Plumbing (Samoa) - Fabrication andand Welding Diesel Fitting (Fiji and PNG) Fitting Machining - Painting and Decorating (Fiji) - Wall & and Floor Tiling (Fiji)(Fiji, Samoa and PNG) (Samoa) - Fabrication and Welding (Samoa(Samoa) and PNG) - Plumbing Electrical (PNG and Fiji) Refrigeration & Air Conditioning - Painting and Decorating (Fiji) - Wall & Floor Tiling (Fiji) - Electrical (PNG and Fiji) - Refrigeration & Air Conditioning (Samoa)

Culture Moefaauo Tanya Toomalatai, the fautasi captain and oldest member of the team.

Training is tough and to compete against men in this race is a challenge the women know all too well. Training has been focused on building their strength and ensuring they are familiar with the course taken during this competition.

The women have had to sacrifice much to be part of this event—they’ve moved to the church hall, away from their families, to concentrate on training which is carried out three days a week.

They’ve also had to undergo tougher challenges including a smoking ban, exercise routines which many had not taken up, and being away from their Making history...An all-women crew in Apia preparing for the fautasi race. Inset: Captain Moefaauo Tanya Toomalatai. Photos: Merita Huch husbands and children.

When the long boat was built, there was a thinking that men in the church would be rowing it for the Teuila Festival but one of the church leaders suggested if the women, who’ve been instrumental in many church developments in the country wanted to give this a try.

The women said the captain had wanted to compete in the kulula (smaller boats) competition but the Teuila Festival this year is only holding the fautasi race so there was no option but to try out for this popular competition.

“It’s brought the women closer and healthwise, many have stopped smoking since training started and I hope the women will maintain will be many cultural activiBy Merita Huch that after the race,” says ties on showcase such as the sInce the hIstory of long boat (fautasI) race Moefaauo. choir hymnal exhibition, in Samoa, there had never been an all-women There are many housea variety of traditional encrew competing in this tough competition. keeping rules which the tertainment including fire However, this year’s Teuila Festival will see women have to follow to knife dancing, traditional the first ever group of women take on the likes be part of the crew but the sports including the fauof Digicel Segavao I and II—the famous Aiga i enthusiasm shown during tasi race (long boat used as le Tai long boats who’ve held championships in training is proof enough means of transportations the past tournaments—and, of course, the only of the commitment these across the islands of Samoa fautasi from Savai’i, Tolotolo o le Tama Uli. women are now making in the olden days), wood It’s a proud tradition for men in this country to be part of this proud carving, tattooing and two to display prowess in the ocean when it comes tradition in fautasi comnights of variety shows. to fautasi racing and while women are allowed to petitions.

Like many of the areas compete in races for smaller boats, there has never There are many skeptics where women have tribeen a women’s team to challenge the fautasi. who say fautasi racing umphed in gaining memA total of 48 women ranging from the ages of should be a “man’s” race, bership into predominantly 18 upwards have been undergoing training for not for women who are “men’s societies”, the first over a month for the Teuila Festival race. not physically built to withstand the five-mile reaction is that of mockery.

Not much fuss has been made over the team. gruelling competition.

The top prize for these races start from the The dailies and broadcast news services have Moefaauo says it’s why they’ve decided to take winning fautasi collecting 25,000 tala, except for been focusing most of their coverage on the only to the water earlier than any other fautasi crew. the winner of the recently held independence fautasi from the big island of Savaii, who are the Due to the strong interest in this competition race which collected 50,000 tala. It’s enough to defending champs of the Teuila Fautasi race. as seen in this year’s independence celebrations, encourage any village to compete.

The Teuila Festival is one of Samoa’s most there are now preliminary rounds to decide those The women in this crew are members of the celebrated annual events, promising to be as who would make it to the finals on the final day Taufusi Catholic Parish and they’ve asked women exciting and entertaining this year as in the past. of the Teuila competition. from the neighbouring Apia Parish to help. They There are many activities and shows being held The women know this all too well, so they’ve need 48 women to row the long boat. particularly in Apia, Samoa’s capital city. taken to the water with renewed interest to try “Many of these young women have never Throughout the week (September 2-8), there and make it to the finals. sat on a fautasi before let alone row one,” says

First all-women fautasi crew

Showcasing skills at Teuila Festival

Like many of the areas where women have triumphed in gaining membership into predominantly “men’s societies”, the first reaction is that of mockery.

Islands Business, September 2012

SOLOMON ISLANDS Head Office PO BOX 23, Honiara Tel : (677) 20031 Fax : (677) 23992

PAPUA NEW GUINEA Port Moresby Solomon Airlines, Jacksons Airport Tel : (675) 76492401 email : png.ops@flysolomons.com

SALES Panatina Travel Centre Panatina Plaza, Honiara, Solomon Islands Tel : (SI wide) 177 Tel : (outside SI) (677) 23561 Fax : (677) 38092 email : sales@flysolomons.com.sb

FIJI Nadi Solomon Airlines PO BOX 10229, Office 27, 1st Floor, Arrival Concourse Nadi International Airport, Fiji Tel : (679) 672 2831 Fax : (679) 672 2140 email : solomon@connect.com.fj

Corporate SI Printery Building PT Cruz, Honiara, Solomon Islands Tel : (677) 20152 Fax : (677) 23992 email : corp.sales@flysolomons.com.sb

AUSTRALIA Administration Solomon Airlines, Level 1 International Terminal Brisbane Airport, Eagle Farm, Quuensland, 4007 Tel : (AUS wide) 1300 894311 Tel : (outside AUS) (61 7) 3860 5883 Fax : (61 7) 3860 4351 email : reservations@flysolomons.com Operations: email : apt.bne@flysolomons.com

UNITED STATES OF AMERICA California Mr. Kerry A Bird, Solomon Airlines North America Sales / Marketing 5000 Birch Street -- #3000 Newport Beach, California 92660 Tel : (949) 752 5440 Fax : (949) 476 3741 email : flysolomons@gmail.com UNITED KINGDOM & EUROPE London Flight Directors Flighthouse, Fernhill Road Horley, Surrey RH6 9SY London, UK Tel : (44 0) 8717 44 0336 Tel : (Intl) (44 0) 1293 874941 Fax : (44 0) 8702 402208 web : www.solomonairlines.co.uk

Solomon Airlines’ 50th Anniversary

Queen of the fleet...Solomon Airlines’ Airbus 320 at Nadi International Airport. Photos: Solomon Airlines.

Ownership issue critical to Solomon Airline’s future growth Dedicated board, staff and strong management crucial to success

By Evan Wasuka The man at the helm...Captain Ron Sumsum, CEO of Solomon Airlines.

As one of the longest running airlines in the region prepares to celebrate its 50th anniversary in October with a new Dash 8 aircraft, the stage is set for what Solomon Airlines’ chief executive Captain Ron Sumsum believes will be a critical period in determining the future of the national carrier.

Even the airline’s harshest critics—and there have been many—can’t deny that Solomon Airlines today is a far cry from the struggling airline of six years ago.

Since joining the national carrier in 2006, Sumsum has steered the airline back from the brink of collapse into a professional outfit with a strong corporate structure; an Airbus A320 to service its international route; and a new Dash 8 aircraft for its domestic service, set to arrive on the 50th anniversary date in October.

On top of this, there is a new corporate office at Honiara International Airport and a second branch at Panatina Plaza.

All these, Sumsum is quick to point have been done with the support and professionalism of a dedicated airline’s board of directors, strong management team and loyal airline workers.

Ownership For Sumsum, who was recently re-appointed CEO for another three years, the one key over-

30 Islands Business, September 2012

Workhorse...Twin Otter which operates on the domestic route.

Negotiating for destinations...Solomon Airlines’ Gus Kraus (left) discussing possibilities with PNG officials.

riding issue that will determine the airline’s future is ownership.

It’s an issue Sumsum believes is fundamental to the well-being of the government-owned airline.

“You can talk about new routes, new airplanes, new assets but all that is secondary to ownership.”

Over its 50 years, Solomon Airlines has had a colourful history with the airline going through three owners before being fully acquired by the Solomon Islands government in 1987, from Papua New Guinea’s Talair.

Under the State Owned Enterprises Act, the Investment Corporation of Solomon Islands (ICSI), through the Ministry of Finance, is the airline’s shareholder on behalf of the government.

“There are advantages and disadvantages to this…we have a shareholding make-up of govern-

ment with very limited funds available.

“Any normal shareholder would look at a business plan and allocate capital to do it.

“We’re in a situation where we have a shareholder who is unable to do that. Basically, you’re on your own and at the end of the year provide them (government) with a financial report.”

Sumsum says the ownership issue needs to be addressed by the shareholders, the airline’s management and the Solomon Islands government, either through privatisation, partner investors or even a public listing.

At the end of the day, capital injection is vital for future development in an industry he describes as dynamic and fast moving.

“If there is one thing I know, it is that if you sit quietly like we are at the moment, you won’t be around in business for too long. You need to keep

moving and diversifying into other avenues.”

He says any solution would have to cater for the domestic market which apart from the Munda and Gizo routes are almost non-commercial.

While the prospect for change, especially privatisation, may cause anxiety within the airline, the CEO is adamant it’s the performance of the workers that counts.

“Just because you privatise doesn’t mean that you lose your job. If you’re proficient and quick and you’re good at your work, it doesn’t matter who owns you.

“If you can follow a business plan, making sure you can achieve key performance indicators within a certain job, that’s the kind of corporate discipline we can instill in Solomon Airlines.

“It’s easier for you to keep that experience rather than rebuild it. Change is not something Islands Business, September 2012

EXPRESSION OF INTEREST PETROLEUM PRODUCT SUPPLY (2013 – 2018) The FSM Petroleum Corporation is a progressive state owned enterprise that is challenged with meeting 85% of the commercial energy requirements of a growing island economy. We have operations throughout the FSM and Guam, and are involved in the inland commercial, international aviation, international marine, and retail service station sectors. Our primary mandate is to ensure a secure supply of petroleum products at the lowest long-run-average-cost for the Nation.

The Company engages efficiently, responsibly and profitably in the sector. This ensures that we have sufficient resources to maintain assets, train people, hold strategic oil inventories, and provide energy products in full, on-time, and to international specifications.

In 2013 our Fuel Supply Agreement (FSA) with our current supplier is due for renewal, and we now seek Expressions of Interest from qualified, experienced, and reputable Suppliers to meet our fuel requirements from 2013 through 2018.

Summary of Product Requirements Automotive Diesel Oil (ADO) 0.5%S Unleaded Petrol (ULP) 91RON Dual Purpose Kerosene (DPK) Liquefied Petroleum Gas (GAS) Lubricants Annual Requirement 5 year Requirement

300,000 bbls per annum 120,000 bbls per annum 45,000 bbls per annum 4,500 bbls per annum 6,000 bbls per annum 475,500 bbls per annum 2,377,500 barrels

Port and Tank Capacity We are currently supplied by Local Coastal Tanker (LCT) with a Gross tonnage of 5,489 tons, Summer DWT: 9,091 tons, Length: 120 m, Beam: 18 m, Draught: 5.7 m.

We import products into four (4) international ports and terminal facilities with shipping cycles that vary depending on the Port and onshore capacity.

What are our challenges? What are we looking for in a Supplier?

We have inherited a small, complex distribution chain that has a high degree of dependence on, and exposure to regional externalities.

We seek a Supplier that is a recognised leader in their field, is willing to challenge the status quo, and to take a strategic view to energy supply to the Nation. We are committed to investing in onshore improvements such as storage capacity, port, berth and channel upgrades, and inter-island shipping if this provides the Nation with enhanced security-of-supply, increased choice of supply sources, and a more efficient supply chain when assessed over a ten (10) year period.

The award of a FSA shall be based on the assessed value-for-money of Proposals that we receive. We will consider, amongst other things:

• qualifications, experience and reputation in the field and the region;

• supply philosophy and supporting supply related infrastructure;

• proven ability to deliver your promise;

• proposed supply modality and its long run average cost; and

• the exposure of the proposed supply modality to externalities such as port fees, transhipment costs and taxes.

Please note the following:

• This is not a Request for Proposals.

• This EoI is not indicative of any Company obligation to any one providing a response to this advertisement, nor is it a basis for negotiation.

• The Company hereby reserves the right not to consider any or all identified in response to this advertisement.

• The Company reserves the right to consider Suppliers identified by other means.

• The Company shall not pay any commissions or broker fees associated with this transaction.

All interested parties are to submit electronic copies of your EoI, attention the Chief Executive Officer at rfp@fsmpc.com by 30 September 2012.

Solomon Airlines’ 50th Anniversary

Planes of yesteryears...used by the then Solomon Airlines.

to be afraid of.”

Whichever road the government chooses to take, Sumsum is adamant discussions with stakeholders must start now.

“At the end of the day, I’m just the CEO of the airline and it’s not up to me to say what happens— all I can do is recommend, put options for the government and authorities to consider. If they want us to go a certain direction, we’ll do that.”

Partnership A key area that the airline’s chief executive officer is looking to develop is the airline’s partnership with other stakeholders in the aviation/ tourism industry.

“Out there, we can’t compete as an airline by itself—you have to compete as a country, a destination. We have to go out there and tell people to come to Solomon Islands with one voice.

“When someone turns up at Brisbane in Australia and other countries like Fiji and Vanuatu,

they sell themselves as a product. You have to do the same thing as a country.

“There’s no use for Solomon Airlines getting a nice looking plane, if the other stakeholders don’t follow.

“I would like to see a lot more cooperation, a lot more discussions...it has to be a joint approach. We need to identify what is our product and everyone work towards the product.

“At the moment, it’s still disjointed and there are a lot of things we need to do but I’m still very optimistic.

“This is the most beautiful country in the Pacific and we need to create a well defined product for people to come here.”

Return to profits In October, Solomon Airlines will be the toast of the country as it celebrates its 50th anniversary.

But not that long ago, the national carrier was facing mounting debts and struggling to pay its staff.

The period of 2000 to 2007, known within the airline as the hardship years, was a constant struggle to make ends meet. It was operating with one aircraft and juggling a growing mountain of debt.

For the public, Solomon Airlines return to full operation would be in August in 2011 when the airline finally got its own jet, an Airbus A320.

From a company that once struggled to pay for its staff, now to one spending millions on aircraft and assets, Sumsum says the key has been the corporatisation of the airline, starting with a professional and stable board of directors.

In his early days, he had to fight hard to choose the right people to oversee the airline with the public standoff between government and the airline management team covered extensively by the local media.

“In my short tenure, I’ve had six boards with one lasting just 10 days—it’s a matter of the authorities in the country really sitting down

Looking back with Napoleon Padabela the longest servI serv ng employee of solomon Airlines believes the airline owes a lot to the man currently steering the airline’s operations.

He is Captain Ron Sumsum, CEO of Solomon Airlines.

Napoleon Padabela, who has been with the airline for 33 years, remembers the days when the airline flew into a number of problems and there seemed to be no end or solution in sight, particularly during the ethnic tensions when the aircraft that Solomon Airlines had leased from Qantas was withdrawn.

As General Manager Sales and Marketing then, he had to find, and very fast, an aircraft to service their routes. “It was difficult to try and get an aircraft from the airlines to help us out.

I got on the phone and spoke with Air Vanuatu to see if they could help salvage our operations,” Padabela said.

“I managed to speak with their (Air Vanuatu’s) General Manager Flight Operations at

militants. The pilot was held captive the time, Captain Ron Sumsum. for nearly two weeks before he was “I begged Captain Sumsum to help released,” he said. us as the situation was critical since no Padabela still remembers the days operator in the region was willing to when he used to order a lot of paper come to Honiara. Air Vanuatu came to tickets (manual) and Cargo AWB our rescue with their B737-300.” documents papers from Singapore.

He recalls how Sumsum would call “The cost was exorbitant but now up to ask, “How now ia brow runaway people are travelling on e-tickets lights hem ok? (How are the runway which makes life easier for our cuslights?). I would reply, “hem olright” tomers and a saving for Solomon (they are alright).

“Sometimes we joked about stray Napoleon Padabela... Airlines.

Now Corporate Safety, Security and bullets hitting his aircraft and I simply longest serving staff audit administrator, Padabela wears said, “not at all bro, everyone respectem member. three hats looking after the airline’s aeroplane belong Melanesian Barata— safety, security and audit administration funcmeaning no one will shoot a plane belonging to tions. His message to the staff on the 50th a Melanesian brother.” anniversary is to work hard and maintain the Padabela also remembers the hijacking of one airline’s standards and procedures “so that we its planes during the peak of the ethnic tension. can make Solomon Airlines a better and ef ef“One of our Islanders H4-AAH was hijacked ficient operator” at Mbabanakira airport, and was blown up by Islands Business, September 2012

Solomon Airlines’ 50th Anniversary

Solomon AirlinesÕ Airbus A320...operates to Brisbane and Nadi.

and saying let’s leave this business concept and move forward.

“I think the crucial thing the board needs to do is to settle the management team down and provide the policy direction and then become hands off, and let the management team run the company.

“If the management is incompetent, then the board removes them and keeps going. I think when we’ve a situation where the board wants to manage the airline, it becomes impossible to run.

“The other key area in moving the airline forward was the settling of its debts.”

Sumsum says much of his early work was about getting the house in order, involving a lot of boring but fundamental paper work. It was these activities behind the scene that set the path for the airline’s developments such as the acquisition of the Airbus A320 and now, the new Dash 8.

“March 2009 was the key time when we settled

Undergoing training...the new flight attendants.

Islands Business, September 2012

the airline’s debts and we could start growing again.

“We operated with a bit more breathing space so we can concentrate on business rather than on issues surrounding a business with uncontrollable debt.”

The support and loyalty of the airline staff through the dark years of the tension, Sumsum says has shown the dedication behind the national carrier.

“The staff members of the airline are very good—you’ve got some of the most excellent people in the airline industry. There are some people there that were in there when it wasn’t doing so well and it’s the same people that are there when it’s doing well.”

At 50 years, Sumsum says the airline has now come of age and the fundamental issue of ownership needs to be addressed, so the airline can move forward to its next stage of development.

Timeline * 2012: Solomon Airlines celebrates 50th anniversary, official carrier for 11th Festival of Pacific Arts. * 2011: Acquires Airbus A320; service commences August. * 2006: Ethnic tension ends. * 2001 (July): Solomon Airlines codeshares with other international operators. * 2001 (June): Ethnic crisis forces jet operations to cease; Domestic operations continue throughout crisis. * 1999: Ethnic crisis breaks out. * 1994 (Sept): Boeing 737-300. * 1992 (April): Boeing 737-400. * 1990 (June): Solomon Airlines’ first Boeing 737-200 jet begins. * 1990 (Jan): Solair becomes Solomon Airlines Ltd. * 1989: Codeshare arrangement with Fiji ceases due to fleet change. * 1984: Solair is 100 percent owed by government; Acquisition complete by 1987. * 1976: Solomon Islands government buys 49 percent Solair shares. * 1975 (July): Talair, PNG, takes over Macair (and Solair). * 1970s: Solair is IATA full member; IATA code - IE/193 & ICAO code—SOL. * 1968 (March): Macair, PNG, takes over Megapode Airways; Name change to Solomon Island Airways Ltd (known also as Solair). * 1963 (Nov): Megapode Airways adds Dove & Piper Apache aircrafts to fleet. * 1962 (Oct): Laurie Crowley establishes Megapode Airways (known now as Solomon Airlines).

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Solomon Airlines’ 50th Anniversary on the first Dash 8 flight.

Among corporate houses that are supporting the initiative is Credit Corporation.

“We are trying to time the arrival of the Dash 8 in our full colours with our celebrations,” said Kraus.

The Dash 8 will be a major milestone for Sumsum who took control of the airline in 2006 and continues to court media attention during his time at the helm of the airline.

Sumsum, who was recently re-appointed CEO for another three years, ranks the arrival of the Dash 8 with the lease of the Airbus A320, as significant achievements for the company.

The arrival of the Dash 8 will be a time of celebration for the staff of the national carrier.

For the airline CEO, the dedication and loyalty of the staff in keeping the national carrier operational during the troubles of the ethnic tension days is a key feature of the Giving back to the people: Solomon Airlines is slashing both local and international airfares as part of its 50th anniversary company’s history.

“The staff members of the airline are very celebrations: Photo: Tom Perry good —you’ve got some of the most excellent people in the airline industry. They’re some of the same people that were in there when it wasn’t doing so well and it’s the same people that are there when it’s doing well.”

From surviving the airline’s financial woes between 2000 and 2007, including stories of staff being paid in bags of rice and tinned fish, to the airline’s re-growth back into profitability—the staff have been key to the airline’s development.

The third part of the anniversary celebrations is promotional fares for the public.

The airline has slashed by 50% fares to Nadi and Brisbane—and also on all domestic routes— with travel from September 3 to October 22.

As part of this programme, the airline has been “We want to give back to the community and

By Evan Wasuka providing supplies for Friday sausage sizzles, the travelling public,” Kraus said. organised by the airline’s 50th anniversary com“In my research, Solomon Airlines has probIt was In october 1962 that australIan I avIa avI Iamittee. Money raised will be presented to the ably one of most interesting histories of any tor Laurie Crowley conceived the idea of Megahospital in October. airline around, it’s good that people read about pode Airlines—a charter service flying between The airline is also engaging with the business it, to know about the unique story behind the the Solomon Islands and Papua New Guinea. community by challenging them to contribute to airline. It’s an interesting one, one that future Solomon Airlines’ CEO Captain Ron Sumsum the hospital appeal in return for a historical trip generations can appreciate,” said Sumsum. says the single Piper Aztec charter service 50 years ago marked the birth of what is today the Solomon Airlines.

“Crowley was sitting at Mendana Hotel, looking out across to Savo Island when a local told him that the megapode bird, native to that island, always flies home. It was based on this idea that he named the company Megapode Airways.”

Three owners later and several name changes along the way, Solomon Airlines will mark its 50th anniversary in October with the arrival of a Dash 8 aircraft.

The 36-seater aircraft will add much-needed space on the airline’s domestic route.

“For an airline to reach 50 years of service is a huge achievement and for Solomon Islands and especially the airline staff, it’s quite a significant milestone,” Sumsum told Islands busIness.

To mark this milestone, the airline is taking a three-pronged approach which includes the arrival of the new Dash 8, the showpiece of the celebrations, says Solomon Airlines’ General Manager, Commercial Services, Gus Kraus.

“First, is our Corporate Good Citizens programme which has been ongoing in the build-up to the anniversary. This is a staff initiative to raise money to improve the gynaecology and emergency wards at the National Referral Hospital in Honiara.”

Celebrating 50 years of flying

How the airline will celebrate anniversary

Islands Business, September 2012

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Solomon Airlines’ 50th Anniversary

At work....Solomon Airlines pilots. Photo: Solomon Airlines

Setting the foundation for a better future A new era for IE: ASPA

By George Faktaufon achIevI ev ng a vI evI v able and lastIng structure for the provision of air services for passengers and cargo has been a huge challenge for airlines of the South Pacific.

But try, they must, because for many of them, the cost of not having their national airline far outweighs the cost of keeping them going.

In all of the more than 10 regional air transport studies that had been carried out during the past four decades, none of them explored the economic costs and benefits of a national airline to the country.

Many of the countries have done it themselves and decided it was worth having one, because no other foreign airline can do the job cheaper and better, and until someone can offer a satisfactory solution, the countries will continue to support their national airlines.

Solomon Airlines is one such carrier. This year, Solomon Airlines will celebrate 50 years of continuous service to the people of Solomon Islands, as well as to the visitors from countries that it served, since it began regional services in 1968.

Like many other South Pacific airlines, Solomon Airlines began as a small domestic operator with one aircraft.

In fact, Solomon Airlines started as a charter operator in 1962 as Megapode Airlines Islands Business, September 2012

Buchanan was also involved in Vanuatu after purchasing Air Melanesia, the forerunner to Air Vanuatu.

He also operated and owned Velengeair, a domestic airline that operated within the Kingdom of Tonga in 1984.

Buchanan was at one stage very keen on Fiji and seriously explored the prospects of getting involved in Air Fiji.

He passed away in 2001 in Queensland. In his obituary, he was referred to as “The former king of the PNG Skies.”

“In pre-independence PNG, Buchanan was the official spokesperson for the Administrator’s Executive Council, the “cabinet”.

Solomon Airlines’ early beginnings strike some similarities with most other regional airlines in the South Pacific.

They were started by individuals, mostly with some aviation background and pioneered into unchartered waters.

They all had humble beginnings and gradually expanded their wings to other parts of the South Pacific and Australia and New Zealand. Some moved further afield to Asia and North America.

Solomon Airlines, together with 10 other South Pacific airlines, were the founding members of ASPA (Association of South Pacific Airlines), when it was established in 1979.

Interestingly, six of the founding member airlines have ceased to exist. The remaining founding members are Solomon Airlines, Air Pacific, Air Caledonie (Domestic), Polynesian Airlines, Air Niugini and Our Airline.

Over the years, Solomon Airlines has gone through some turbulent times, but has managed to come out and survive.

It has tried working in partnership with other ASPA members through aircraft leasing and codesharing, but the challenge of operating a single jet operation can have some detrimental impacts on shared aircraft operations, particularly, during unscheduled aircraft downtime.

These are some of the challenges faced by many ASPA members particularly in their endeavours to work together.

I have observed Solomon Airlines resolve to improve its operations, both its services and economic efficiency over the years and I can only admire their determination to succeed.

Solomon Airlines has committed to developing its local staff by investing in training and this should augur well for the future.

With its new Airbus A320, Solomon Airlines is beginning a new era which it hopes will set the foundation for a better future, not only for the airline but also for the economic and social development of the country.

I wish them every joy as they celebrate their 50th anniversary and a very successful future.

I have observed Solomon Airlines resolve to improve its operations and its economic efficiency over the years and I can only admire its determination to succeed.

with a single Aztac plane, owned and operated by PNG entrepreneur, Laurie Crowley.

Since then, ownership changed three times, and its name also changed to Solomon Islands Airways in 1968 after it was bought

by Macair of PNG. The Solomon Islands Government finally bought the airline and became the sole owner in 1984, from TALAIR, which acquired the airline from Macair in 1975.

TALAIR was another Papua New Guinea privately owned airline and had the largest fleet of third level aircraft in the world in the 70s. It had more than 70 planes.

TALAIR was owned by the late Sir Dennis Buchanan.

He was famous for closing down TALAIR after a bitter dispute with the PNG Government and moved to Queensland to establish Flight West Airlines.

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Air Terminal Services (Fiji) Limited wishes to Congratulate “Solomon Airlines” on the occasion of your 50th Anniversary. This is indeed a milestone to celebrate. Solomon Airlines is growing into one of the region’s leading airlines and ATS (Fiji) Ltd is proud to be your total ground handling service provider at Nadi International Airport.

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Agriculture water-filled channels; soil is not used and the fish develop in grow-out tanks as is done in standard aquaculture.

Fish and plant growth and production rates have been scientifically shown to equal that of the two associated industries – recirculating aquaculture and hydroponics, the highest producing approaches in the two fields.

As well as a range of vegetables and fruit which aquaponic systems can successfully grow, the technique also provides a protein source – fish.

Fish in these tanks are regularly fed and ideal water conditions are maintained to ensure optimum nutrient absorption by the plants in the grow beds into which the water is pumped. Photos: Pacific Islands Trade & Invest.

Innovative, sustainable food growing solution for the Pacific unveiled Aquaponics – an innovative, sustainable, environmentally friendly and scientifically proven food growing technology that is also commercially viable has been unveiled in the Pacific Islands region last month.

A project spearheaded by the Auckland offices of Pacific Islands Trade & Invest (PT&I), the trade and investment arm of the Pacific Islands Forum Secretariat and co-funded by the New Zealand Aid Programme, a set of three aquaponics systems were formally inaugurated in Rarotonga in the Cook Islands on the margins of the Pacific Islands Forum Summit.

Combining the best features of aquaculture and hydroponics, in which nutrient rich fish water is used to grow plants, aquaponics addresses the region’s food growing challenges and the general food security situation more efficiently than any other agricultural method.

The basic science behind this technology is an effective balance of fish waste release to plant nutrient uptake. This unique knowledge, scientifically developed over seven years of research and field testing, is being brought to the Pacific Islands region by Melbourne based scientist Wilson Lennard, PhD, and Adam Denniss, PT&I’s Auckland based Trade Commissioner.

The Pacific is the first to see and use this leading research fine-tuned over 12 years.

How aquaponics works Aquaponics uses highly nutritious fish water 40 Islands Business, September 2012

that contains almost all of the required natural elements for optimum plant growth, therefore eliminating the need for chemical additives for growing the plants.

Rather than discharging the nutrient-rich waste water into the environment, as is done in aquaculture, aquaponics uses the plants to clean and remove nutrients and then re-establish the water balance which is then returned back to the fish tank.

The water in aquaponics systems can constantly be re-used, needing additions only when moisture is lost through transpiration and evaporation.

The plants are grown in either media beds (gravel, in the case of the Rarotongan systems) or

Getting the science right Aquaponics is indeed a natural, simple system, which is easy to run and manage. For it to run efficiently and deliver optimal results though, it is important to get the science right – as basic and simple as that may be.

There have been many systems built using a variety of concepts around the world but rarely do we see systems that utilise the most advanced and up to date science. And rarely is that science made easily available. Most projects often start as an “experiment” and don’t share results from findings.

However, this project has captured the leading science from the world’s best and placed it into systems that are robust and simple to run. Systems that require limited labour and minimal energy. Systems that can withstand the often difficult conditions that exist in isolated communities and yet out-produce all other growing concepts.

Dr Wilson Lennard’s painstaking research in a variety of environments and differently sized systems over 12 years has helped him evolve an evenly balanced equation that helps optimal production, both in terms of quantity and quality.

Dr Lennard is making available this unique knowledge, which forms the backbone of the efficient utilisation of the technology, to the people of the Pacific Islands region. This information has never been released to the general public before. The Pacific Islands region is the first.

High yield but no environmental impact Adam Denniss, PT&I Trade Commissioner says, “Show me a growing solution that improves yield without clearing more land, gives me a protein and vegetable crop, uses 90% less water is environmentally sustainable and economically viable whilst reducing the need for expensive fertilizers and I’m happy to look at it. Until then, I believe this may be a solution.”

Rarely do we find growing techniques that increase yield without having some negative impact such as increased land clearing or chemical

The Cook Islands project The Rarotonga site comprises three stand-alone aquaponic systems of different sizes to show capability and scalability. The biggest of them, the 12-bed system, has 50sqm of plant growing area. This would grow produce the equivalent of at least 250-300sqm of soil. The 12-bed system represents a smaller system in a commercial production context.

The system can produce the equivalent of about 350-450 heads of lettuce per week in just 50sqm.

At an example price of $3.00 per unit, that amounts to an economic turnover of between $1050 and $1350 per week.

The other two systems are smaller 4-bed and 2-bed systems with their own separate fish tanks. The fish are species of Tilapia, which are part of freshwater environments in many Pacific Islands.

The system is being run and managed by local businesswomen. The program includes comprehensive coaching and training on managing the system by Dr Lennard and the Trade Commission’s team for a period of time beyond the commissioning of the site.

Aquaponics ticks all the boxes  Can grow almost anything with an optional protein source – fish  Is gender and age group non-specific – ideal for women and suitable for the elderly  Is scalable and transportable – can be dismantled and transported if necessary, and can be set up almost anywhere  Uses no fertilisers or pesticides – completely spray free  Has 100% nutrient usage – zero wastage  Has zero nutrient rich effluent discharge – no nutrient-rich water dumping  Has low water usage – up to 90% less than soil based agriculture; stored rainwater can be used to top up  Has low power consumption – can be powered by Renewable energy;  Has low environmental footprint – almost zero, in fact  Delivers higher productivity per sqm – up to four times compared with in-ground growing  Easy to set up, operate and use – can be up and running in a matter of weeks  Is commercially viable with low running costs – opens avenues for small business and value addition of nutritious food products  Helps import substitution – conserves valuable foreign exchange  Creates employment and self-employment – boosts local economy  Addresses region’s nutritional deficiencies – contributes to good health and wellbeing of Pacific Islanders Why would you not look at using this technique in your community?

use. None of this is the case with aquaponics.

The technique addresses soil erosion, freshwater shortage, productivity issues, environmental impact and tackles many of the existing biohazard issues within the Pacific’s agricultural export industry related to soil. Aquaponics uses no herbicides, pesticides or hormones and it utilises 100% of the nutrients added, which makes it exceptionally efficient.

Almost anything can grow in aquaponic systems. The technique is especially suited to high demand, fast-growing nutritional crops like herbs, leafy greens and fruiting plants.

The Pacific’s precarious food security situation Food security is one of the Pacific’s most pressing problems. As a single issue, food security – secure access to affordable and nutritious food – has a direct impact on health, poverty, the environment and the economy.

The Pacific islands find themselves at a tipping point. Scattered isolated communities are increasingly affected by growing fuel costs, climate change, declining fresh water reserves, and a struggling private sector – all of which have an adverse effect on sustainable agriculture development.

In addition, the region suffers effects from fluctuating world food prices, supply constraints, world trade rules, escalating fuel costs and longterm neglect of investment in agriculture from aid donors and government institutions. The Pacific is rapidly feeling the effects of inefficient world food systems that have developed around access to cheap energy.

As a growing system, Aquaponics tackles these issues head on.

Aquaponics addresses agriculture challenges The Pacific Islands are made up of three major geographies: volcanic islands, sand islands and coral atolls. Atolls and sand islands provide little by way of suitable soils for traditional agriculture.

Current Pacific agricultural practices are restricted to islands with volcanic soil structures.

While traditional soil-based agriculture is appropriate for islands with volcanic soils, it can produce negative environmental impacts,

especially on smaller islands with high human populations. Many Pacific Islands also have little infrastructure and basic agricultural support systems like freshwater storage, further compounded by unreliable rainfall that makes freshwater availability low and uncertain.

The majority of the water, nutrients, pesticides and herbicides added to facilitate crop production never reach the crops and are lost to the surrounding environment. Those losses, often in highly concentrated forms, also have a serious impact on the surrounding marine environment as most water tables are directly linked hydrologically to the surrounding aquatic marine and littoral environment.

This is especially true in the case of coral reef ecosystems, which are already under stress from increasing oceanic acidification and the effects of climate change. Aquaponics can help change this.

Ecologically sustainable, economically viable Aquaponics is economically viable. Independent research undertaken by University of Auckland graduate researchers has shown that aquaponics is commercially viable and is scalable to suit any level of operation or population. Their research on the Cook Islands Aquaponics Project has shown an internal rate of return of 61% and a payback period of just 2.28 years.

As an addition to traditional cropping it proves to be an excellent solution to growing high value, crops that are highly nutritious and costly to import. Being relatively inexpensive to build and maintain, it can be used in a home-based approach by Pacific families to feed themselves. It can be adapted for large scale commercial production – it is completely scalable and adaptable.

The system requires an initial sunk capital cost to set up with the normal economies of scale applying. However, these costs can be managed to very low levels with an early breakeven return on investment.

It has been proven to save costs by reducing the need for chemicals and fertilisers, reducing the labour and machinery required to manage the land and increased yields on smaller lots.

A row of basil plants growing in beds irrigated with fish water at PT&I’s Cook Islands aquaponics project site.

Lettuce plants growing in gravel beds irrigated by nutrient rich fish water at PT&I’s Cook Islands project

The first crop of cabbage and lettuce at PT&I’s Pacific Islands Aquaponics Project in the Cook Islands

Aquaponics is ready to be used throughout the Pacific and global communities. It is a sustainable, economically viable technology addressing food security, working with local business people. Dr Wilson Lennard is already helping regional institutions in the Pacific as well as in the United States of America – where he is a sought after mentor – with his knowledge of the science and techniques of building systems.

If you are interested in knowing more, email Adam Denniss at adam.d@pacifictradeinvest. com or Wilson Lennard at Aquaponic Solutions (Email: willennard@gmail.com)

Level 3, 5, Short Street, Newmarket, Auckland, New Zealand.

Islands Business, September 2012

Business

Pokie machines…popular with islanders in New Zealand. Photo: Peter Rees

Gambling ‘epidemic’ threatens Pasifika Normalisation of gambling to blame

By Peter Rees There are fresh fears a gambling “epidemic” impacting New Zealand’s Pacific community will only worsen if the construction of a controversial NZ$350 million international convention centre is given the green-light in Auckland.

Prime Minister John Key unveiled the proposal to build the centre earlier in the year, claiming it will benefit the New Zealand economy by NZ$85 million in tourism dollars and create hundreds of new jobs. In return for building it, SkyCity would be allowed 500 new pokie machines.

The news caused uproar among sections of the public and anti-gambling agencies. Mirroring this development in the Pacific region, the Samoan government also revealed plans to build the country’s first casino in an effort to boost its tourism profile, despite vehement opposition from the National Council of Churches.

Criticism of the SkyCity deal came amidst public outcry over the parents of five children, who were charged with abandoning their children in a locked van while they were gambling in SkyCity Casino in February. Both parents were charged in June.

As shocked as the New Zealand public were when it made the news, agencies fighting gambling addiction were not surprised. One hundred and nineteen children have been abandoned at the 42 Islands Business, September 2012

SkyCity casino in the past three years, according to statistics released by Internal Affairs.

The SkyCity Casino already has 1647 pokie machines in Auckland, with community returns at 2.5 percent. Pokie machine use is the most popular form of gambling among Pasifika peoples, followed by non-casino venues such as housie.

Problem Gambling Pacific Manager Pesio Ah-Honi Siitia is concerned by the development.

“Pasifika and Maori people are most at risk of problem gambling,” she says. “You just go into SkyCity and see. It’s our people in there.”

Damning stats About 100,000 of New Zealand’s 4.3 million residents is a problem gambler and Pacific islanders are the most at-risk ethnic group to develop problem or pathological gambling behaviours.

Pasifika peoples are four times more likely to be a problem gambler than any other ethnic group.

The 2006/2007 New Zealand Health Survey states that although Pasifika peoples make up 5.3 percent of the New Zealand population, they make up 21.1 percent of problem gamblers. The situation hasn’t improved since that survey.

Despite an increase of those seeking help through government-supported intervention programmes, Pasifika peoples are still the most frequent visitors to casinos. They also spend the most amount of time at gambling venues.

Statistics further show that Samoans, followed

by Tongans are the most at-risk population within the Pasifika demographic, which tops all ethnic groups in national problem gambling statistics.

Almost NZ$2 billion was spent on gambling activities in New Zealand in the past year and Pasifika gamblers were the biggest spenders. On average, they spend NZ$13,468 (per person) compared to Europeans ($1,761), Maori ($1,908) and Asians ($2,829).

Traditionally in New Zealand, gambling activities were the domain of the working class and low-income families. The influx of Pacific migrants in the 1980s and 1990s changed the demographics of the working class. The primary gambling activity then was TAB horse race betting.

Lotto was introduced in 1987 and soon after, there was a rapid expansion of gambling opportunities, especially ‘pokie machines’ or electronic gaming machines during the 1990s and 2000s. In 1997, the SkyCity Tower and Casino was opened in Auckland.

Harmful gambling behaviour and addiction rates rose during this period. NZ$40 million was lost in New Zealand casinos in 1995. In 2010, the losses were almost $440 million. That was an increase of 1100% in 15 years.

This led to the introduction of the Gambling Act 2003, which was passed in September 2003 to control, regulate and monitor gambling and to minimise gambling related harm.

Problem gambling was declared as a public health issue in the Act and as such, the Ministry of Health began developing a strategy for public health, prevention, treatment and research. This work is funded by a levy on the gambling industry.

Social epidemic The stats against the Pasifika community are so glaringly one sided, community leaders are calling the rising gambling problem a social epidemic.

Gambling addiction has been blamed on rising rates of family violence, drug and alcohol use, crime, relationship breakups, child abuse and poverty.

The global economic recession, rising unemployment and recent reform of the social welfare sector by the current national government since its re-election last year, has only augmented the situation.

“Gambling is a drug—there is no other label for it except it is a sickness and people are addicted to it. I’ve seen its devastating effects on the Pacific community here in Auckland and it is very sad,” said manager for Pasifika-Ola-Lelei intervention programme, Sunita Nua, in a media interview.

“I have walked through a trail of broken marriages, repossessed cars, mortgagee sales, neglected children, and human despair. You name the many different types of human suffering and you will find them in the families of problem gamblers in south Auckland.”

Even high profile Pasifika role models are not immune to the gambling epidemic. Well-known hip-hop rapper Scribe (real name Malo Luafutu) came out publicly to admit his gambling addiction as one of the high profile ambassadors for the Choice not Chance campaign, which spearheads the Ministry of Health’s six-year strategic plan (2011-2016) to prevent and minimise gambling harm.

As one of New Zealand’s most successful musicians, whose debut album, The Crusader, sold 85,000 copies on its release in 2003; it came

Business as a surprise to many when the Samoan rapper came out.

He says he played pokie machines nearly every day. He realised he had a problem but was unable to stop gambling or lying about it to his family and close friends. He hit rock bottom when his partner left with the children.

Why? A number of social factors contribute to the high rate of Pasifika with gambling problems.

The ‘normalisation’ of gambling has seen gambling activities gradually woven into the social fabric of the Pacific communities over the past two decades.

This is evident with the proliferation of noncasino activities such as housie, which is mostly run by Pacific church organisations on a daily basis. Housie is among the most popular gambling activities next to pokie machines. There are 21,127 pokie machines in New Zealand and they’re housed in casinos, hotels, bars, restaurants and clubs all over the country. That is one pokie machine for every 206 people.

Research also points to personal stress and financial reasons as a factor in gambling addictions. Stress was related to meeting family and village financial obligations.

Gambling was almost a socialisation technique for recent Pacific migrants to help them combat the isolation they experienced when they arrive in New Zealand. Low wages also made it more tempting for Pasifika peoples to gamble their earnings in the hope they would “win big”.

There is a high expectation of winning and that mentality has trapped many addicts looking for a quick fix. The motivation ranges from paying back debts to improving lifestyle. What usually follows is uncontrolled spending.

The 2006/2007 New Zealand Health Survey says Samoan people “often gamble because they are under stress when unemployed and need money to fulfill traditional obligations.”

Perhaps the greatest determining factor is location and accessibility to gambling activities and exposure to advertising. Stats show two-thirds of gamblers live in the most socio-economically deprived areas. There are more pokie machines per head in low socio-income areas. There is one pokie machine for every 75 people in south Auckland compared to one in 465 in the affluent Auckland central suburb of Remuera.

In Manukau alone, gamblers spent NZ$15,994,318 at the pokie machines from January to March 2012, which represents a quarter of all gambling machine takings for the Auckland region, excluding SkyCity.

These wide ranging social factors make it difficult for intervention programmes and government agencies to make any significant inroads in their awareness campaigns. Pasifika gambling addicts are increasingly seeking help, as the statistics demonstrate. But not enough is being done.

Pacific church and community groups have been asked to take the lead and champion the campaigns, while parliament has been challenged to introduce tougher legislation to restrict gambling activities and loan companies that prey on the Pasifika community. Role models such as Scribe are already doing their bit.

“I’d like people out there to know there is a way out and avoid making my mistake. Talk to someone, get help early—don’t bottle it up and keep it a secret like I did,” Scribe says.

Mincor nickel mine...in Kambalda in Western Australia. Photos: Mincor

When the going gets tough, the tough gets going Mincor Resources heads to PNG

By Davendra Sharma Not all mineral prices suffered as much hiding as nickel did in the wake of the global financial recession of the last four years.

From a potential US$12 a pound in 2009, the metal’s demand dwindled and so did its price to US$5 a pound during the global financial crisis.

It is common economics that if world prices are down and the total revenue income is lower, a company needs to check and balance its cost structure.

That is exactly where a small-time Australian nickel producer Mincor Resources has done itself wonders by slashing production costs over the last 12 months.

Armed with A$42.3 million profit, Mincor is now headed to Papua New Guinea, where it says is “one of the most prospective places on earth”.

Amidst all the gloom and doom in the world about future prospects of nickel demand and profits—which saw the world’s largest miner BHP Billiton write-down A$425 million in its nickel business in Western Australia in August— the Perth-based Mincor is expanding, and PNG is its main target.

“I’m really excited about the potential in PNG, which is one of the most prospective places on earth,” says Mincor managing director, David Moore.

“We managed to get hold of some seriously good ground (in PNG) which could easily deliver world-class discoveries that would change the face of Mincor.”

Just 60 kilometres from the Bougainville’s Ok Tedi mine, Mincor believes there are huge deposit stacks of nickel to mine. In the financial year,

July 2012 to June 2013, Mincor will inject A$10 million into PNG. Drilling has already started.

Although the world’s major players like BHP are assuming that demand is much lighter than supply at the moment, Mincor is not looking at the gloom side of the coin. It’s hoping new demands will open up in cash-rich countries like China.

“Importantly, we have the cash, the people and expertise to apply a systematic approach to exploring them,” said Moore, who is also a geologist, last month. “So if the mood of investors is currently negative on nickel, by all means look at us as being a self-funding exploration company—one that gives you money via regular dividends rather than takes your money via regular capital raisings.”

Mincor’s rich dollar for PNG For Mincor, it’s no turning back in PNG. Moore says world prices are bound to recover sooner than later, possibly as late as 2014.

He said a lot of the world’s major nickel producers are reverting to lowering operations, minimal expansion and little, if any, new investment.

He expects drilling in PNG to take the full course this year and early 2013.

“We will inevitably bump into a shortage in due course. My guess is that demand will start to outpace supply during 2014.”

Mincor is marching into PNG with a lot of enthusiasm as cost structures in the island country will allow the Australian miner to minimise production expenses—something all smart companies need to factor in when analysing the future of a new investment.

PNG’s low tax initiatives and cheaper labour compared to the Australian mines will be a major Islands Business, September 2012 43

Business

“

“

If you believe the way to make money is to buy low and sell high, then buy us because we are a nickel miner, and reap the rewards when the nickel price recovers.

1945, with grades of 11 grams a tonne gold and linchpin in Mincor’s move into the resource-rich 100g a tonne silver discoveries. country.

“Mincor is out to assess the depth extent of the Having mined 135,000 tonnes of nickel in prospect’s vein sets,” one PNG mining observer the Kambalda region in Western Australia over cautioned Mincor. the last decade, the publicly-listed Mincor is no “It won’t take much to have a mining operastranger to market fluctuations. tion on its hand, thanks to the road and power “If you believe the way to make money is to infrastructure built for Hidden Valley.” buy low and sell high, then buy us because we Edie Creek will be followed are a nickel miner, and reap the up by a drilling programme rewards when the nickel price early in 2014 to test a big coprecovers,” says Moore. per-gold geochemical anomaly Nickel is a stainless steel incalled Bolobip, about 60 kigredient. At its peak, the metal lometres east of the Ok Tedi was fetching US$12 a pound copper-gold mine. but is currently down to US$7 a pound.

PNG’s losses, With his innovative and review tax regimes smart business tactics, Moore is Despite the prosperity that the envy of many in the mining PNG offers to the outside inworld of Perth. vestors, its own coffers do not When the going got tough, get as much, argues the Asian the tough gets going for Moore.

Development Bank in its latNickel led the rest of the metals into the downturn and it est Pacific Economic Monitor could well be one to lead them (PEM). out of it, believes Moore.

PNG has a very low income “Ever volatile, should con- David Moore...excited about potential tax on working individuals— ditions provide reasons for a in PNG. representing just 10% of the breakout to the upside, nickpopulation. It also has one of el can be relied on to move the lowest taxes when it comes strongly,” wrote one mining commentator last to the resources sector. month.

“As a result of tax concessions and the removal But pessimism is high as the nickel doldrums of the additional profits tax in 2003, the average of yesteryears show little signs of recovery in the effective tax on PNG’s mining, oil and gas comnext 12 months, or so. panies is now on the low side of fiscal regimes In PNG, Mincor will first have a crack at the across the world,” the PEM report stated. high-grade epithermal gold-silver opportunity As such PNG is likely to face an austere period at Edie Creek, which is five kilometres from over the coming three to five years with economic the Hidden Valley gold-silver operation of the growth slowing down from 2013. The recently Newcrest-Harmony joint venture. opened nickel cobalt mine in Ramu has been It was mined underground at a small scale until granted a 10-year tax holiday. Similarly the new

multi-billion kina Liquefied Natural Gas—which though will create thousands of jobs—will not contribute to government coffers until year, 2020.

The ADB report warns that as the LNG project begins operations next year, the government faces a dilemma of where the currently-employed 8000 locals will find work when they are retrenched in 2013.

Economic growth will drop to 4.5% next year as government forecasts declining revenue from mines and oil companies.

ADB strongly recommends that PNG review its tax initiatives for mining and oil corporations, especially when new deals like the one with Mincor is being negotiated.

“More broadly, addressing the business constraints identified by the country’s CEOs will be crucial in diversifying the PNG economy, increasing private sector employment, and expanding the revenue base with which to finance future public investments,” the ADB report suggested.

Per capita worse than Fiji, Samoa, Tonga It said PNG had one of the lowest per capita incomes in the Pacific Islands Forum region, lower even to that of Fiji, Samoa and Tonga— which do not have as much manufacturing and mining prospects as PNG. ADB said that even when the LNG project reaches its peak of production in 2028, PNG’s per capita income would still be below that of Fiji, Tonga and Samoa.

PNG has the largest population in the South Pacific, that of 7,059,653 in April this year—a jump of 1.8 million from 10 years ago.

The ADB said to match population growth with economic growth, governments like the new Peter O’Neill administration in Port Moresby needs to become aggressive in their approach towards tax regimes and tax collection.

Island Brewing’s ‘Green Turtle’ travels globally Island Brewing Company has added three new export markets—Japan, Hawaii and California—taking the number of export markets to a total of six. These partnerships are pivotal for the company and will increase export production ten-fold over the next five years.

“We have been working on our export programme for sometime and are thrilled to have signed two of the most significant distributors in America; the sheer size of their market opens up substantial opportunities for us,“ said company founder and director Jonathan Ullrich.

“The global demand for our product, from some of the biggest, most competitive premium beer markets in the world, speaks volumes about the confidence they have in the Vonu brand.”

Island Brewing Company was established by New Zealand brothers Jeremy and Jonathan 44 Islands Business, September 2012

Ullrich in Nadi, Fiji in 2009.

The distinctive brand, made with pure Fiji water and featuring the Green Turtle (Vonu Dina) on its bottles, has gone from strength to strength.

In just three years, it has achieved phenomenal export growth, with plans to enter more markets in the pipeline.

Recent distribution deals include: • Japan—Yuwa trade, distributors of Kona Beer, was appointed earlier this year. The first full container has been shipped and Vonu launched on shelves in Japan in August.

• Hawaii—Paradise Beverages was signed to distribute Vonu Pure Lager in June of this year.

This is the most significant deal Island Brewing has signed to date with Paradise dominating the vast Hawaiian market distributing top brands Miller, Coors, Heineken and Corona. Owned by Topa Equities, the ninth largest beer distributor

in the US, Paradise opens us access to the entire on and off premise market in Hawaii.

• California—Island Brewing recently appointed leading distributors Harbor Distributing in Southern California. Owned by the Reyes Group, the largest beer distributors in the USA, this deal opens up a potential market of 2.5 billion litres per annum. Vonu expects to ship to the US market in early 2013.

Ullrich says he expects the international interest to continue and attributes its success in part to the great reputation of Fiji to produce world-class products.

“We are incredibly proud of the fact that our brand is competing on the international stage and is being recognised for its exceptional quality.” Island Brewing expects these new export deals will lead to the creation of more jobs and boost the Fiji economy.

Education

Environment education: School students in Apia, Samoa, learning about the environment during the open day year. Photo: SPREP

Educating for a sustainable future Environmental education at SPREP

By Seema Deo & David Sheppard Our islands continue to be threatened by so many issues—waste and pollution; degradation of natural ecosystems; invasive species; overfishing; and of course, climate change and natural disasters. At times, it just appears to be overwhelming.

At the same time, Pacific islands are exploring new opportunities for economic growth in areas such as deep sea mining and a renewed interest in gold and copper mining. Resource owners, policy-makers and investors must manage these challenges and opportunities so that all people will benefit from resource exploitation while ensuring it does not destroy the environment and our precious biodiversity.

Achieving this will require a society that firstly, shares this vision and secondly, where decisionmakers, resource owners, consumers and business owners are committed, motivated and have the appropriate knowledge and skills necessary to achieve this vision.

How will we get there?

We believe the answer lies in education—in a form that cuts across all levels of society and aims to equip individuals with the ability to question and critique ideas and information while learning new knowledge and skills.

This form of education will help us to think outside of our sectoral silos and look more holistically at dealing with the broader environmental, health, gender, economic and equity issues.

Education is essential for encouraging people to take responsibility for a “sustainable future”.

Environmental educators have long—since the early 1970s, in fact—recognised the need for a reinvigorated educational approach to transform society.

The World Summit on Sustainable Development (“Rio+10”) in 2002 provided much needed momentum through endorsing the DESD—Decade of Education for Sustainable Development (2005-2014).

Subsequently adopted by the United Nations, this strengthened education efforts for “sustainable development” and, somewhat controversially recognised the need for “values education”.

Building on lessons from environmental education efforts, the decade sought to challenge “individuals, institutions and societies to view tomorrow as a day that belongs to all of us, or it will not belong to anyone”.

SPREP has been involved in environmental education in the Pacific since the 1980s and we have learnt many lessons on what works and what does not. Over the years, we have worked

with our member countries and territories to develop a variety of tools and resources to place environmental concerns at the forefront of decisionmaking processes.

These include an environment education manual; a series of teachers’ and student guides and workbook for specific issues; comic books; children’s readers; as well as films and music videos. We recognised early on the need for country-appropriate material, and as resources became available, worked with our members to develop country-specific material in local languages.

DESD presented an opportunity to further improve our approach to environment education, and in 2007, we revised our Action Strategy for Environmental Education and Training to align it with the principles of Environmentally Sustainable Development (ESD) and with the objectives of the Pacific Regional Action Plan for ESD. Our educational resources now incorporate ideas of participatory learning, dialogue and critical reflection, while encouraging an appreciaat SPREP this tion of nature within the context of sustainable development.

We have also recognised, together with our members, the power of the media as “public educator” and work with media groups across the region to help develop understanding and awareness on environment and sustainable development issues, including climate change, among media personnel in the region.

All these efforts however, are only as great as those who will choose to use the resources and tools and apply them in their own situation. This brings us to our unsung champion—the educator.

It is the educator, after all, who decides what we will learn and how this will be achieved.

The teacher in the classroom chooses to use student-centred, discovery learning methods over the more traditional instructive methods.

The educator from the local civil society organisation chooses to sit with a group and hear from the women in the community before attempting to discuss the science of climate change.

The tutor at the vocational college chooses to use materials from certified sustainable sources.

The media trainer chooses to encourage journalists to question information and information sources before sharing this with the public.

In fact, we can probably, quite confidently say that it is the teacher who helps shape our society. What she or he models and shares with the student, at whatever level, remains with us.

October 5 is World Teachers’ Day set aside by the United Nations to honour the role of teachers in providing quality education that enables people of all ages to participate in society, both locally and globally.

At SPREP, we salute all teachers and especially pay homage to those who are tirelessly working to build a society of Pacific islanders who will share our vision for an environment that truly sustains our livelihoods and our natural heritage in harmony with our cultures—well into the future.

•Seema Deo is SPREP’s Communications and Outreach Adviser, and David Sheppard is SPREP’s Director-General.

Islands Business, September 2012 45

Air Terminal Services Advertorial

AIR TERMINAL SERVICES (FIJI) LTD getting it “RIGHT” through International milestone achievements at the Nadi International Airport in Fiji

Air Terminal Services (Fiji) Limited (ATS), Fiji’s premium ground handling service provider at Nadi International Airport Fiji has become the first ground handling company in the region to enter the IATA ISAGO registry.

to ISO 9001:2008, Food Safety Management System Requirements according to ISO 22000:2005 and Health and Safety Labor according to OHSAS 18001:2007.

ATS was awarded the ISAGO registration following the successful completion of its headquarters and station combined audit in October 2011 and was informed of their successful registration in February 2012.

While majority of our airline customers have successfully adopted the IATA Operational Safety Audit (IOSA) program and with ATS (Fiji) Ltd gaining ISAGO registration, we are sharing their commitment to continuing to improve Quality, Safety/Security and Efficiency.

ATS Registered Services include; • Organization and Management • Load Control • Passenger Handling • Baggage Handling • Aircraft Handling and Loading • Aircraft Ground Movement • Cargo and Mail Handling To respond to the diversity of ground services a decision was made for ATS to build an Integrated Aviation Management System (IAMS). ATS (Fiji) Ltd’s Integrated Aviation Management System is implemented according to ICAO Safety Management Requirements (SMS) defined in Document 9859, ICAO) Aviation Security Requirements, according to Annex 17 and 18, Quality Management System Requirements according

It is paramount that as a ground service provider our processes; comply and exceed requirements to avoid defects and non-compliance, prevent and control risks to avoid damages, and monitor and control effectiveness to avoid waste.

ATS’ ISAGO registration is authentication to existing and potential customers of our commitment to continuous improvement of our safety standards here at the Nadi International Airport, Fiji.

Additionally the Certification Audit of ATS (Fiji) Limited’s Management system in February this year by SGS Systems & Services Certification Pty Ltd, demonstrates that our system in operation conforms to the requirements of AS/NZS ISO 9001:2008 and AS/NZS ISO 22000:2005 authorized by JAS-ANZ.

The AS/NZS ISO 9001:2008 certifies the following activities of ATS (Fiji) Limited at the Nadi International Airport: The design, development and provision of Catering Services • Cargo & Ramp Services • Passenger Services • Technical Services (excluding Aircraft Maintenance) • Fixed based Operations While ISAGO applies principles to the operational aspect of our business, ISO 9001:2008 benefits also include our support areas of Administration, Finance, Human Resources and IT. ISO 9001:2008 Quality Management System certification enables ATS (Fiji) Limited to demonstrate our commitment to service quality and customer satisfaction, as well as continuously improving our quality management systems and integrating the realities of a changing world.

The AS/NZS ISO 22000:2005 certifies the following activities of ATS (Fiji) Limited at the Nadi International Airport: • The design, development and provision of Catering Services ISO 22000:2005 demonstrates ATS’ Flight Catering Department’s ability to control food safety hazards in order to ensure that food is safe at the time of human consumption.

benchmark to Global Aviation Industry standards by attaining and maintaining our International Certifications; and ensuring a safe work environment through the use of modern technology and practices friendly to the environment.

We strive to accomplish and exceed our customer’s requirements through our defined Values and Principles as get it “RIGHT”!

R- Respect – We demonstrate mutual respect for Our Customers Property, Our People and Our Environment; I-Innovation – We encourage innovative ideas and the implementation of best practises throughout our organization; G-Growth – We recognize and develop talent from within and applaud initiative and innovation; H-Honesty – We act honestly and with integrity at all times. We treat others with dignity and conduct ourselves in a manner that instil and foster trust; T-Teamwork – We value teamwork and partnerships by promoting inclusivity. We recognize that our success depends on effective communication and consultation with our Customers, Employees and Stakeholders.

Furthermore, our Line Maintenance division is approved under ANR145 C regulation. We are also an approved FAA Repair Station (GK4Y209M).

ATS operates 24 hours a day, seven days a week to ensure customer airlines and the travelling public are served on a continuous basis and their demands are fully met. We provide a one-stop shop service in the business of ground handling and in-flight catering, serving 1.2 million passengers per year.

We have a highly qualified team of 470 personnel who provide the highest degree of accuracy and discipline, and apply international practices to assure a distinguished level of ground safety. In line with our customer’s requirements, We provide service excellence, through competent personnel and quality, safe and efficient practices. We continuously

It is paramount that as the premium ground service provider at Nadi International Airport, Fiji, we develop a strengthened professional association with our customers and fulfil a shared common goal to support the aviation industry agenda to enhance quality, safety, security, sustainability and competitiveness.

Aviation communications network across its 22 Pacific Islands member countries and territories and founding members Australia, New Zealand, France and the USA. Since the signing of the MOU between ASPA and SPC, two initiatives have been put in place.

Passengers boarding at Pohnpei International Airport, Federated States of Micronesia. Photo: SPC

New focus on regional aviation SPC partners with ASPA

By Stuart Valentine as well as provI prov dIng the most convenIent way to travel in the region, aviation has a significant footprint in Pacific Islands economies.

Figures from an Oxford Economics study commissioned by the International Air Transport Association (IATA) in 2010 show that aviation supports around US$261 million (1.5%) of Gross Domestic Product and 29,800 jobs (7,700 of which are directly supported) or 0.9% of the regional workforce.

The Secretariat of the Pacific Community (SPC) added aviation to its transport responsibilities in 2010, following the reform of regional institutions directed by Pacific leaders.

Its work in the aviation sector is gaining momentum following the appointment of an aviation research officer at the end of 2011 and development of partnerships with key aviation bodies in the region, in particular with the Association of South Pacific Airlines (ASPA).

Effective air transport services underpin all aspects of socio-economic development. However, achieving economies of scale in transport service provision in Pacific Islands countries and territories is complicated by the fact that small populations spread over a very wide area.

SPC’s role in aviation SPC’s work in aviation is guided by the Framework for Action on Transport Services which was endorsed by Pacific transport ministers in April 2011.

Islands Business, September 2012

The secretariat’s role is to support current efforts to develop safe, secure, reliable and affordable aviation transport services in Pacific Islands countries and territories, especially smaller islands states. Emphasising SPC’s ‘many partners, one team’ approach, SPC has signed memorandums of understanding with partners such as ASPA and the Pacific Aviation Safety Office. These strategic agreements have the common aim of strengthening collaboration in improving regional aviation services.

Pacific Skies magazine One of the key priorities emerging from the MOU with ASPA is better communication on aviation sector issues through the development of an aviation magazine for the region, in essence reviving ASPA’s former South Pacific Aviation Magazine, which ceased publication in 2006.

The first edition of Pacific Skies aviation magazine was launched at the 56th General Session of ASPA on July 19, 2012. The magazine provides a new voice for the aviation sector. It is hoped it will play a key role in communicating aviation issues affecting the region to industry, governments, international organisations and donor agencies. The second edition of the biannual magazine will be published at the end of the year.

Subregional airline concept Developing a subregional airline policy is another focus of SPC’s partnership with ASPA. Reflecting its credentials in the policy arena, SPC’s input was sought to a subregional airline concept for smaller islands states.

Working with ASPA Secretary-General George Faktaufon, who was able to provide much needed ‘corporate memory’ on this long-standing issue, the team took a fresh look at the problem.

Many will be aware that a sub-regional airline has repeatedly been considered as a means to improve air transport for smaller islands states including Kiribati, Nauru, Tuvalu and the Republic of the Marshall Islands. Previous proposals have failed to provide solutions with geographic, economic and political contexts, all playing a part.

One possible way forward may be to call for competitive tenders either individually or collectively for the provision of air services on selected intraregional routes.

Following consideration of this option at the meeting of Smaller Islands States Officials on July 30, the issue has been placed on the agenda for further discussion at the Smaller Islands States Leaders’ meeting in the Cook Islands on August 27. SPC looks forward to continuing its work with ASPA and other partners in supporting the development of a strong aviation sector able to provide reliable, affordable and safe transport across the region.

...a sub-regional airline has repeatedly been considered as a means to improve air transport for smaller islands. But previous proposals have failed to provide solutions.

SPC and ASPA SPC is particularly proud of the MOU negotiated with ASPA in May this year. Building on common goals and interests, the MOU formalises the existing partnership, cooperation and collaboration between SPC and ASPA. Established in June 1978, ASPA is the peak airline association in the South Pacific. Representing the interests of 16 member airlines, together with 24 service provider members, ASPA is uniquely placed to advise and advocate on a wide range of issues affecting the aviation industry in the South Pacific.

SPC brings to the partnership an extensive

• For more information, contact Stuart Valentine, Aviation Research Officer, Economic Development Division, SPC, Suva, Fiji (Tel.: +679 337 9329; email: StuartV@spc.int) or visit the SPC website: www.spc.int

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In many violent situations in the Pacific region, women and women’s organizations have demonstrated their capacity to contribute to solutions, whether as mediators or as part of groups working to improve conditions in local communities, or as providers of safe havens for women and children affected by violence and demanding accountability and respect for human rights. Women have generally been the first to actively work across ethnic divides at considerable personal and organizational risk. For example women have: organised peace vigils, rallies and silent marches, as well as dialogue; held negotiations across crocodile infested rivers with armed combatants; developed peace education methods; encouraged voting through advocacy, awareness raising and education; mediated community disputes; supported soldiers returning from peacekeeping operations; provided technical inputs into defence reviews and national security policy development and; have lead significant efforts across the region to prevent and respond to sexual and genderbased violence. These are only a few examples of responses to conflict or perceived threats to human security that women leaders and women’s organizations have developed and sustained over the years (Draft Regional Action Plan on Women, Peace and Security 2013 – 2015)

The Global Partnership for the Prevention of Armed Conflict advocates for the full implementation of UN Security Council Resolution 1325 (UNSCR 1325): “Prevention of armed conflict is a foundation to securing the rights of women as it prevents the creation of conditions that result in abuse of women and provides spaces and opportunities for governments and communities to prioritize development. Conflict prevention enables resources to be prioritized for the social sector and for economic productivity instead of military expenditures. Enhanced participation of women complements successful conflict prevention and peacebuilding approaches, which is emphasized in UN Security Council Resolution 1325 (2000)…. By advocating for the integration of women’s experiences in conflict prevention, GPPAC seeks to steer the global debate back to its original focus. This focus of GPPAC’s advocacy and outreach work is part of the network’s overall drive to bring different stakeholders in line with each other’s activities to benefit governments, UN and civil society actors alike.”

On September 21st, make it a point to join with

GPPAC Pacific believes that the freedom of expression

millions of other individuals and groups around the

and free speech: are essential components for

through community prayer and other spiritual

press, broadcasting institution and other news media

world in honoring the International Day of Peace

observances. In 1981, the United Nations General Assembly established the International Day of Peace (IDP). It was twenty years later that this same body modified its resolution by fixing September 21st as

the annual date for its novel, but lofty and compelling notion to set aside strife for just one day. Although

most UN resolutions seem modest and mundane, this

one has truly noble aims. It seeks no less than to have

the entire world observe 24 hours of global ceasefire and nonviolence. This is the vision behind the United

Nations’ resolution for an International Day of Peace.

Building peace one day at a time.”

Peacebuilding: “We believe, a strong and independent organizations are critical for achieving sustainable peace and credible governance, especially in post

conflict countries. We stand in solidarity with Pacific media organizations advocating for media freedom in the Pacific, and the safety and protection of media

personnel. An independent and free media can assist in informing, motivating and mobilizing populations and communities emerging from conflict, and

provides an important channel of increasing public

participation in Peacebuilding by making the process inclusive for all.”

GPPAC PACIFIC is a group of civil society peace and security experts working in partnership to promote, enhance understanding and advocate for human security, peace education and conflict preventive actions. GPPAC Pacific reaffirms that a human security approach to security would enhance a shift from reaction to preventive actions, and greatly assists in eliminating tensions and instabilities in the Pacific Region.

Business Intelligence

Virgin on a warpath

B

eware regional airlines. Virgin Australia is on a warpath trying to woo travellers with super light fares and alluring travel packages one could imagine.

“We deliberately entered that market and we know the fares were very high and we could bring competition at lower fares with better service and that’s exactly what we have done,” says Virgin Australia’s chief executive, John Borghetti.

Virgin is now the most popular airline in the Oceania region with flights daily from Australia into numerous South Pacific islands spots such as Apia, Honiara, Nadi, Nuku’alofa, Port Moresby and Port Vila. From New Zealand, Virgin similarly scoots to Apia, Honiara, Nuku’alofa, Port Moresby, Port Vila and Rarotonga.

No other airline has direct and as frequent access to these destinations from Australia and New Zealand—the source of the region’s most foreign tourists —as does Virgin.

Fiji-based Air Pacific is Virgin’s closest rival with direct or connecting flights to Apia, Funafuti, Honiara, Nadi, Nuku’alofa, Port Vila and Tarawa from the major ports in Australia and New Zealand.

Borghetti is on a mission to build a solid customer profile in the region—in both economy and business class.

He said the lucrative business class sector in Australia and New Zealand has already taken a 25% drop in prices since Virgin began its campaign this year.

Virgin which has strategic alliance with Air New Zealand operates separate routes to the South Pacific from New Zealand.

Frequent travellers prefer cheaper fares and attractive holiday packages incorporating hired cars, airport transfers and hotels along with airfares to the Pacific islands—most of which are only four or five hours away from both Australia and New Zealand.

Borghetti said business class fares in Australia have dropped by 25% as price wars between carriers have escalated over recent years. Virgin is out to steal at least 20% of the business class market from Qantas, which is Virgin’s principal competitor in the Australasian market.

He said prices had remained very high in business class, increasing at the top end as economy fares have dropped by more than half in the past decade.

He said while airlines needed to be profitable, they also should be competitive in both their products and prices.

“There was no competition at the top end since Ansett stopped flying,” Borghetti told ABC TV’s Inside Business, adding that it was right there was a price war.

“We’re comfortable with that level, but we’ll be competitive and if the fares drop further, we’ll be competitive in that market.”

Virgin would still be profitable if it was to offer a 25% discount in their regime of current airfares.

“People forget that there is the halo effect of the product and brand that brings profitability as well,” Borghetti said.

Under Borghetti, who worked at Qantas for 35 years, Virgin is planning a club for VIP travellers as a companion to its frequent flyer membership club, The Lounge.

—By Davendra Sharma

52 Islands Business, September 2012

Port Vila market..Vanuatu, a world tax haven centre. Photo: wilkimedia.org

$21 trillion JUST treasure tip

By Davendra Sharma

M

erge the worthiness of the world’s two mega-huge economies—the United States and Japan—and you won’t still collect A$20 trillion.

But the world’s wealthiest individuals are hiding more than that—a whopping $21 trillion—$32 trillion in assets in offshore tax havens like Vanuatu, a tax transparency report sourcing data from the International Monetary Fund and Bank of International Settlements disclosed in August.

Vanuatu—which has been at the forefront of a global hunt for nearly 500 million pounds in August by the disgraced Quinn family from Ireland— has been named in the English report, commissioned by campaign group, Tax Justice Network (TJN).

TJN report author James Henry argued that the headline figure of A$21 trillion was probably a conservative estimate, adding that up to A$32 trillion may have been siphoned off to popular world tax havens like Cayman Islands, Switzerland and Vanuatu.

It said individuals and entities who swindled money into foreign havens were being assisted by professional bankers and tax accountants.

“These assets are protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy”.

The report said it was the price the world had to pay for encouraging a free and open global business world.

Recent statistics indicate that the world’s top 10 private banks now manage in excess of A$6 trillion on behalf of clients held in such world tax haven centres as Vanuatu—far higher than A$2.3 trillion they catered for five years ago.

British tax analyst and government advisor John Whiting said the question that should be asked is what is being done with those hidden stashes.

“If it really is that size what is being done with it all?” he asked.

Last month, Islands Business reported that overseas enforcement agencies like the Australian Tax Office and the Anglo Irish Bank suspect that money laundering is rife in Pacific—especially in Papua New Guinea and Vanuatu.

Investigators from the former Anglo Irish Bank— now the Irish Bank Resolution Corporation—were in Vanuatu searching for nearly 500 million pounds it claims is being stashed there by the fallen Quinn family empire.

The Irish bank hopes its investigations in Vanuatu would help uncover fortunes held by the Quinn family—which is being sued for debts of 2.8 billion pounds.

Sean Quinn, his son Sean Junior, and his nephew Peter were found guilty of contempt of court in trying to thwart the bank’s operations.

The Quinn group, which started in Derrylin, Northern Ireland in 1973, quickly spread through Europe with manufacturing outlets in the United Kingdom, Germany, Belgium, France, Spain and Slovakia. The empire came to a sudden halt on January 16 this year, when its founder was declared bankrupt.

As attempts were still being made in Port Vila to retrieve some of the Quinn fortunes, the Irish high court jailed Sean Junior for failing to comply with court orders enforcing the Quinn family to disclose details of where assets worth millions of euro were being held from the Quinn’s family international property group.

When Seán Junior was asked by his father if he would go to jail, “he said he’d go if that was in the best interests of the [Quinn] group”, Peter Quinn told reporters in August.

Another Vanuatu high-flyer and professional accountant, Robert Agius was convicted and sentenced on August 9 as Australian authorities found him guilty of conspiring to defraud the Australian government.

Agius, a Vanuatu resident since 1979, was arrested in April 2008 in Perth along with three other accountants—Carol Abibadra, Kevin Zarafa and Deborah Jandagi.

They were accused of working closely with the now-deceased accountant, Owen Trevor Daniel, helping companies transfer monies away from Australia into Vanuatu’s tax haven facilities.

Some of those who took up Agius’ offers to move money from Australia have already been charged with tax fraud and were in jail. Up to 65 fraudsters have been charged and 22 of whom have been convicted.

It is estimated that A$1.275 billion is under the microscope in tax liabilities by these convicts, accused of money swindling cases.

Agius’ defence lawyers argued that international accountants did not regard helping overseas clients invest in havens like Vanuatu as being illegal or dishonest.

“Tax schemes were a relatively common occurrence,” said Peter Hastings, QC representing the accountants, in Sydney last month. He said we live today in “a different era” where schemes to avoid paying tax “were not on any alert that there was

something unlawful about this form of arrangement”.

The convictions in Australia of Vanuatu-linked tax evasion masterminds emanated from years of involvement of the Australian Federal Police (AFP) stationed in Port Vila, who have been suspended from Vanuatu on claims of over-stepping their authority.

The AFP through its Project Wickenby found that some expatriate Australians like Agius acquired Vanuatu residential status and then start operating out of Port Vila by trying to solicit monies from businesses and individuals seeking taxevasions. Agius’ PKF Vanuatu is one of a dozen of accounting firms which specialise in offering their cash-rich overseas clients.

Vanuatu Prime Minister Sato Kilman’s private secretary Clarence Marae was arrested last May in Australia over allegations of being linked to a money-laundering scheme, which was costing Australia millions of dollars each year.

The Australian Tax Office estimates that A$5 billion depart Australia to global tax havens each year with nearly A$350 million landing in Vanuatu. But according to the 1993 Act of Parliament in Vanuatu, the country’s tax haven administrators are not allowed to check how much investments were held being held in the country by foreign entities.

Commissioner George Andrews of the Vanuatu Finance Services Commission told Australian media lately that he had “no idea” how much cash filtered to Vanuatu each year because of the inher inherent secrecy provisions that restrict authorities from citing the company cash flows.

“At the moment, our laws don’t allow us to look into company books, which means we cannot get information from industry,” Andrews said.

He added that moves are afoot by Vanuatu to make the country’s tax haven facilities more transparent. “(This) is why we are changing these laws so we know exactly who and what we are dealing with,” he said.

Operation Wickenby taskforce commander War Warren Gray points out that Agius has over the years received commissions from tax avoiders who were predominantly “from the high-end of town”.

“We are talking about professionals, quite wellknown people, people at the top echelons of business right through to small business operators who want to hide money,” he said.

False invoicing and easy access to accounts were some of the lures given by Agius company for an establishment fee of US$8000 and an annual fee of US$1380. PKF Vanuatu would then provide an Australian company or director with false invoices from an overseas-registered company that had a bank account in New Zealand, the AFP claims.

The invoices charged “consultancy fees, management fees or insurance premiums” to the Australian companies, which could be treated as tax expenses in Australian tax reporting regimes. It is understood that once payment for the false invoices had been made, the money would be transferred through a series of bank accounts and end up in the account of another offshore company controlled by Agius—and often registered in Vanuatu, Britain, Ireland or the United States.

As the new government of Prime Minister Peter O’Neill takes charge in Port Moresby, the Asian Development Bank warned that the country had poor tax compliance and enforcement mechanisms.

The ADB country economist Aaron Batten says lax laws in PNG could pave the way for foreign com-

panies wishing to take advantage of investments in the resource-rich country.

“PNG suffers from poor tax compliance and enforcement. The PNG tax office lacks the manpower and resources to effectively pursue individuals, firms and industries it suspects of not paying full tax obligations,” said Batten.

He outlined that foreign entities and individuals were reaping PNG of potential revenue because of the government’s inability to accurately trace and solicit dues from investors.

Batten mentioned that PNG’s lure of attracting foreign investors with low-tax regimes was depriving the economy of potential revenue and its residents of a better standard of living.

“Strengthening revenue compliance and reviewing resource sector taxation arrangements would help alleviate some fiscal pressures over the medium term. Improving the inclusiveness of economic growth over the next decade will require reinvigoration of the micro-economic reform agenda to strengthen competition, lower barriers to new business and stimulate growth in the non-mineral economy,” he said.

Batten’s word of caution comes only a month af after another Asian consultant, Dr R Bhaskara, who alerted the PNG Institute of Banking and Business Management (IBBM) of risks of money laundering from undetected criminal activities.

Bhaskara of the Indian Institute of Banking and Finance said although PNG had an anti-money laundering centre and the Financial Intelligence Unit in place, cases of domestic corruption and money laundering was rife in the country. As reported by Islands BusIness I Iness last month, Bhaskara warned that misappropriation of government funds was costing PNG immensely.

TUVALU GOVERNMENT Ministry of Finance and Economic Development Invitation to Tender for the Supply of Waste Management Equipment, Plant and Material to Funafuti, Tuvalu and Seven Outer Islands Supplies to be Provided: Supply and delivery of waste-related equipment and material, including but not limited to: Machinery (e.g., excavator, loader, tractors); trailers; waste cages; vehicle; vegetation chippers; sheds (e.g., for vehicles, machinery, equipment storage and waste operations); can/metal bailer; tools (e.g., air compressor, metal cutting saws, grease guns, water blasters, welding units, workshop tools; and waste bins and containers (domestic, medical, waste oil). The tender is offered in six (6) lots. This process across a range of diverse items is considered to provide effective contract provision in consideration of the complexity of delivery of items to eight (8) islands in Tuvalu, which includes the capital, Funafuti, and seven outer islands. The process provides for submission of tenders from a single firm, joint venture, or consortium.

Financing: This project is fully financed by the European Union under the 10th European Development Fund’s A-Envelope, Tuvalu Water, Waste and Sanitation Project (TWWS, Identification No. TV/001/09).

Contracting Authority: Mr. Minute A. Taupo, Secretary of Finance / EDF National Authorising Officer, Ministry of Finance and Economic Development, Funafuti, Tuvalu; Tel: (688) 20202; email: mtaupo@gov.tv; mtaupo@yahoo.com.

Publication Reference: Contract Forecast No.: EuropeAid/133095/D/SUP/TV Terms of Participation: Participation in tendering is open on equal terms to natural and legal persons (participating either individually or in a grouping [consortium] of tenderers), which are established in one of the Member States of the European Union, ACP States or in a country or territory authorised by the ACP-EC Partnership Agreement under which the contract is financed. Participation is also open to international organisations. All goods supplied under this contract must originate in these countries.

Following the entry into force of the second revision of the Cotonou Agreement, from 1 November 2010 the eligibility of tenderers to procurement or grant contracts financed by the EDF projects benefitting countries within the list of Least Developed Countries – of which Tuvalu is one – has been extended to natural and legal persons also established in the following countries: Australia, Canada, Croatia, Former Yugoslav Republic of Macedonia, Iceland, Japan, Korea, Lichtenstein, New Zealand, Norway, Switzerland, and United States.

How to Obtain the Tender Dossier: The tender dossier is available from the following Internet address: https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?do=publi.welcome. The tender dossier is also available from the Contracting Authority.

Tenders must be submitted using the standard Tender Form for a Supply Contract included in the tender dossier, whose format and instructions must be strictly observed. Deadline for submission of tenders is 7 Nov. 2012, at 16:00 local Tuvalu time.

Islands Business, September 2012

RAMSI Update

RAMSI: Why transition now?

RAMSI Special Coordinator Nicholas Coppel recently took the time to explain why and how the mission is transitioning into its next phase. This is an extract of his paper given at the Australian National University in Canberra.

I

n early April 2012, rumours spread briefly but quickly in Honiara of a return to tension-era conflict. The rumours were that members of the Isatabu Freedom Movement (the Guale militant group during the 1998–2003 period of civil unrest) were threatening to chase out Malaitans in communities around Guadalcanal plains.

But these rumours were quickly dispelled.

The April 5, 2012 Solomon Star cover story reported that both Isatabu Freedom Movement and Malaita Eagle Forces members had issued a joint statement denouncing the rumours as false.

A photograph of members from both groups standing together accompanied the article.

What the rumours show is not so much the fragility of the peace, but the fragility of confidence.

The willingness of so many people to believe the rumours and accept that tension-era behaviour could return is one reason why most Solomon Islanders want RAMSI to stay.

stagnant is booming; the social services that were very weak have improved; and the culture of cronyism is no longer so blatant nor accepted by the general population.

RAMSI, however, is not the ideal means for assisting the Solomon Islands Government address the full range of development challenges facing the country in the long-term: it is a short-term intervention while development challenges require long-term assistance; its mandate is limited and was never intended to cover all of the major challenges the nation faces today; and it is an expensive model of assistance.

Not too soon but not too late In September 2011, the United Nations Secretary General, Ban Ki-moon, made an historic visit to Solomon Islands, including RAMSI. During this meeting, we exchanged views on the

Many things have changed in the past nine years, but it is also true that it is not possible to eliminate all the factors contributing to the tensions. Many of them require long-term measures and commitment from the Solomon Islands Government and civil society. A functioning law and justice sector, including a strongly performing Royal Solomon Islands Police Force (RSIPF) and better planning and management of Honiara’s urbanisation, are essential.

Improved access to other government services is also important to alleviate feelings of social injustice and exclusion that are the common drivers of conflict, worldwide. Particularly important will be access to universal basic education that gives every citizen a chance to escape the social and economic limitations of village life.

Successful Transition In the face of RAMSI’s transition and drawdown, the key question is not whether all the causes have been addressed, but Perceptions are there incentives to maintain peace and The RAMSI-funded People’s Survey oppose the resumption of violence, and 2011 which surveyed around 5,000 Solohow robust are the critical institutions of mon Islanders—more than one percent the state, especially RSIPF? of the country’s entire adult population The key to a successful transition will —shows that only 19 percent of those be the maintenance of confidence in both surveyed thought it was time for RAMSI the security environment and manageto scale back its activities while 86 percent ment of the economy. Success to-date and supported the presence of RAMSI. The in the long-term is dependent on governsurvey’s focus group discussions sought ment, business, investors, the people and to get a better understanding of why donors all feeling safe and able to operate people wanted RAMSI to stay. The range free from intimidation. of responses covered both social needs and This means continued support from infrastructure requirements and included RAMSI for the development of capacity some suggestions that reflected a lack of and capability in the RSIPF, and continued understanding of RAMSI’s mandate.

In addition to wanting RAMSI to mainsupport through other donors for sound tain law and order, some wanted RAMSI to economic management and further reresolve land disputes, build more schools Solomon Islands Prime Minister Gordon Darcy-Lilo...inspects a parade of form. The proposed withdrawal of the and clinics, provide financial assistance to the Royal Solomon Islands Police Force’s elite Police Response Team earlier military next year should also help restore rural people, and provide advice to farmers. this year. Photo: RAMSI a positive image of the security outlook With the range and depth of socio-ecoamong overseas investors and visitors, nomic challenges facing Solomon Islands, and help restore self-confidence among challenges of peace keeping missions. We agreed it is not surprising that respondents see RAMSI as Solomon Islanders. that the two main risks were: leaving too soon or their best chance for addressing these problems Transition does not mean RAMSI is coming staying too long. and the very real successes of the mission have to an end. Transition is about the next four-year Too soon might result in a return to violence. only reinforced such a mindset. phase of RAMSI to start on July 1, 2013. It is Too late would be characterised by a dependency The rapid removal of weapons from the comproposed that RAMSI’s main role will be to on donors, a lack of national self confidence and munity was only one of RAMSI’s early and most work with RSIPF to strengthen its capacity and a self-interested political elite operating on the significant achievements. With assistance from further develop it as a modern and effective pobasis that responsibility for the core functions of RAMSI and its Participating Police Force, the lice force. It will remain a partnership with the government—law and justice, economic manageRoyal Solomon Islands Police Force has been people and government of Solomon Islands, and ment and the machinery of government—had cleaned out and rebuilt, and law and justice— a regional mission drawing police from all Pacific been conveniently subcontracted to outsiders. certainly for the more serious offences—is being Islands Forum countries. Close consultation with Even when considering these risks, the timing delivered. Off the back of this rapid improvement Solomon Islands Government, the Pacific Islands of RAMSI’s transition is a matter of fine judgin the security environment, Solomon Islands Forum and all other stakeholders will remain ment so separate decisions are being made about institutions and functions of the state have also central to the way RAMSI operates. the timing of the mission’s civilian, police and been rebuilt. Today, there is a vastly improved Solomon Islands has improved greatly over the military components. capacity in the Solomon Islands Government to past nine years. Transition is the way to recognise There were immediate and underlying causes deliver services. The apparatus of government these improvements. Transition is providing and key players in both the tensions and peacewhich was once described as ‘unravelling’ has the opportunity for Solomon Islanders to step making that has taken place in Solomon Islands. largely been restored; the economy that was forward, as RAMSI steps back.

54 Islands Business, September 2012

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