March 2014

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March

2014

Vol. 40, No. 3

Contents Education

37 Using footy stars to lure islands kids to stay in school Trial model hailed a

success in NSW

Interview

38 New SIVB boss outlines plans Family/romance markets

his targets

Sport

40 Leapai rallies Pacific for world fight Don’t judge a man by

his past but his potential

Health

42 Dengue outbreak raises questions in Vanuatu Is the health

ministry capable?

Environment CLIMATE LINE IN THE SAND: Setting the scene about climate change process. Cover report—pages 16-20. Cover photo: SPC

Cover Report

16 Climate line in the sand Setting the scene about climate change process

Politics

21 From Mexico to the Marshalls

Castaway survives 14-month Pacific ordeal

43 Weathering the storm together

Regular Features 5 Letter from Suva 6 Views from Auckland 7 We Say 12 Whispers 14 Pacific Update 44 Business Intelligence

22 At 60, legacy of Bravo still reverberates Unresolved issues remain to be resolved 27 Dual citizenship—just a money spinner? Govt hopes to raise over US$98m

28 New benchmarks for Australian aid Bishop announces ODA cuts and reviews 30 Fiji back from the cold?

MSG anticipates Fiji’s full Forum participation

32 PM Lilo on a cleanup footing But will he have the time to complete job? 33 Former AG convicted of public corruption Focus now shifts to former Gov’s extradition

Business

34 PNA decisions painful but necessary Several issues to iron out at Honiara meeting 36 Viewpoint Nurturing enterpreneurs: Key to economic growth Islands Business, March 2014 3


Managing Director/Publisher Godfrey Scoullar Group Editor-in-Chief Laisa Taga Group Advertising & Marketing Manager Sharron Stretton Staff Writer Robert Matau Graphic Design Dick Lee Virendra Prasad Main Correspondents Australia Rowan Callick Nic Maclellan Davendra Sharma Commonwealth of the Northern Marianas Haidee Eugenio Fiji Samisoni P Pareti Dionisia Tabureguci French Polynesia Thibault Marais Marshall Islands Giff Johnson New Zealand Dev Nadkarni Jale Moala Ruci Salato-Farrell Duncan Wilson Niue Stafford Guest Papua New Guinea Baeau Tai P Sam Vulum Patrick Matbob P Peter Niesi Solomon Islands Evan Wasuka Alfred Sasako T Tonga Taina Kami-Enoka T

Islands Business is published monthly by Islands Business International Editorial & Advertising Offices Level III, 46 Gordon Street, PO Box 12718, Suva, Fiji Islands. Tel: +679 330 3108 Fax: +679 330 1423

Printing: Oceania Printers, Raojibhai Patel Street, Suva, Fiji.

© 2014

Copyright © 2014 Islands Business International Ltd. All rights reserved. No part of this publication may be reproduced without the written permission of the publisher.

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Editor’s Notebook

Letter From Suva

BY LAISA TAGA, EDITOR-IN-CHIEF

Why I was sacked: Pokajam Members of the PNA (Parties to the Nauru Agreement) meet in Honiara on March 5-14 to discuss a number of important issues pertaining to their success. For instance what to do with the US$93 million—and that is how to distribute this pot of money resulting from last year’s successful conclusion of negotiations with the United States government and its tuna industry. But missing from this very important and crucial meeting will be PNG’s Sylvester Pokajam, former PNG National Fisheries Authority (NFA) managing director. Pokajam was ungraciously dumped from his job after he was sacked by the PNG cabinet. Letter from Suva was told that Pokajam’s sacking was to create a position for one of the leadership’s cronies. It is also being said that his relentless drive upset others in Papua New Guinea, and he was accused of having too much power and not following ministerial directives. He has been replaced by his former deputy, John Kasu. “I was told verbally on January 29 and officially on February 7, 2014. I was in Manila so I did not get a copy of the letter. The Prime Minister and his Fisheries Minister simply stated I have been with NFA for too long. “I feel that staying longer and being productive means stakeholders are more confident and it provides a stable environment for them and investors. ‘My sacking politically motivated’ “There is no law or policy in PNG stating that chief executives need to be replaced because they have simply been there for too long. Therefore, I believe my sacking was politically motivated.” The news sent shockwaves throughout the fisheries sector because the Pacific and PNG has lost a strong voice in terms of sustainable tuna management and the development of fisheries for local employment and better economic gains. Not many of the Pacific’s leaders have the guts to stand up to Distant Water Fishing Nations (DWFNs) like the United States and the European Union at international meetings and negotiations. You can say Pokajam, an accountant by profession, has been there and done that. It was only in December last year he told the European Union (EU) at the Western Central

Pacific Fisheries Commission (WCPFC) meeting in Cairns that if they did not want to recognise PNA’s Vessel Day Scheme, they should pack up and leave the Pacific. He was also instrumental in organising funding for PNA, an eight-member Pacific bloc of fisheries nations who own the most tuna stocks in the Pacific. At the Pacific Tuna Forum in Honiara last year, he was involved in a heated debate on eco-labelling of tuna products. He was told informally whilst in Manila in January this year that his contract would be terminated. This has come as a shock to a region that may have a majority in numbers (17 Pacific Islands Forum Fisheries Agency nations of which the PNA are also members) against (10 DWFNs) at WCPFC annual meetings but only has a handful of vocal advocates at the meeting. Pokajam would rank as one of the top vocal advocates of tuna in the region. Islands Business’ Robert Matau spoke with Pokajam after being told to leave an industry that he has helped develop. Can you summarise your career at NFA? “I started work with NFA on March 15, 2002 as Financial Controller. In January 1980, I started my first job with the Auditor-General’s Office of PNG as a junior audit clerk. Then in April 2004 to July 2008, I was NFA Acting Managing Director and from July 2008 I became Managing Director of NFA.” What are some of the highlights of your career at NFA? “In 2006, I was instrumental in giving fishing access to Japan purse seiners in PNG’s Exclusive Economic Zone. The Japanese fleets had not been in our waters for 19 years, so this was significant. Then I increased access fees revenue for PNG from US$90,000 per boat to now US$400,000 per boat. I was also instrumental in the establishment of the Frabelle and Majestic seafood processing plants in PNG. Now, five more are in the pipeline including Nambawan Seafood, Niugini Tuna Limited, Heilshing of China, DonWong of Korea and Sapmer of France. “I was also instrumental in establishing the US$5,000 benchmark price for PNA Vessel Day Scheme fee and master-minded the establishment of the fully integrated/interfaced web-based vessel monitoring scheme/VDS monitoring and

compliance. “When PNA wanted a secretariat, I was instrumental in securing the PNG capital injection of US$1 million.” What was your role in bringing the US back to the negotiating table in the US treaty talks and what were the implications of re-negotiating? “I was instrumental in convincing the then Sir Michael Somare Government through Fisheries Minister Ben Semri to withdraw from the US treaty. That meant the treaty was no longer in existence and we would have to renegotiate terms. This has resulted in the value of the treaty increasing from US$21 million to US$63 million. It has also resulted in US vessels complying with our FFA national laws when fishing in our respective Exclusive Economic Zones, which they refused to comply with before.” Last year, I recall you told the EU to pack their fleets up and leave the Pacific—what was that all about? ‘I told the EU this because they did not want to be subject to our national laws and they were arguing they were not party to the PNA VDS scheme.” What kind of future lies ahead for the PNA? “The future of the PNA is not steady because already there exists divisions amongst members. The recent one being the pooling of days by Federated Sates of Micronesia, Marshall Islands, Tuvalu, Tokelau, Nauru and the Solomons—leaving out Palau, PNG and Kiribati. This pooling was done in secret and there is also some disagreement among members in the distribution of parties allowable entitlement. It is very important to remain united but I feel members might be confused and will refuse to accept reality. Some of these issues are the vessel day scheme (VDS) and Party Allowable Effort. The distribution of party allowable effort (PAE) is based on 40 percent biomass and 60 percent actual effort. Biomass is calculated based on the size of the EEZ, which is nonsense because it is extremely difficult to prove that fish is there all the time. Also, each member continues to do their own thing especially when it comes to economic benefits. For instance, Kiribati signed a Fisheries Partnership Agreement with the EU (FPA) and under that deal, the EU is exempt from VDS. These are some of the issues that need ironing out.” So where to for now? “I have no plans for the immediate future but I am seriously looking at entering PNG politics in 2017.” If you were offered a job in fisheries, say in another regional capacity, would you continue the good fight? “If I am offered to work for someone like the PNA, I would accept and I would continue to fight for fisheries in PNG and the Pacific as it is in my blood.” Islands Business, March 2014 5


Column

Views from Auckland BY DEV NADKARNI

Climate Karma—chickens come home to roost? According to popular climate change lore, the continuous spewing of carbon and harmful greenhouse gases over nearly 200 years, primarily by western nations, is what has caused the earth to warm up irrevocably these past few decades. This warming has caused polar ice caps and continental glaciers to melt like ice cream on a hot tin roof. Different climate scientists have come out with different estimates at different times about how much this melting will cause sea levels to rise over the next century or so. Estimates vary from a couple of metres to several tens of metres. Scary scenarios have been painted about what the world map and the world’s demographics will look like in 100 years. Famines, water shortages, mass migration, wars, natural catastrophes, even apocalypse have all been predicted with all manner of scientific modelling. At climate change meets down the years, small islands states and countries that perceive themselves as being vulnerable to rising sea levels have repeatedly complained that they are being made to pay for the centuries long abuse of the environment by the industrialised world. Countries like Tuvalu have leveraged the emotive appeal of this argument to drum up support from governments and world development organisations. A few years ago, even Queen Elizabeth said in a speech that the world’s poor were suffering the effects of climate change for no fault of theirs and because of the industrial pollution caused by the relentless growth ambitions of the industrial western world. Rising sea levels have all along been seen as the single most devastating effect of climate change—and low-lying coastal areas and small islands states have been seen as those being the first to be affected. Poor countries to suffer The poor, impoverished, far flung, low-lying nations of the world are being made to suffer because of the careless, callous profligacy of the rich nations! What a travesty of the Karmic principle, if ever there was one. ‘Make them pay’—that was the refrain of the small nations at the receiving end of the effects of climate change. Under growing pressure and perhaps out of 6 Islands Business, March 2014

some desire to clean up the world after them and probably their conscience, large mitigation and adaptation funds were announced and pledged to help the soon-to-be inundated little people. The actual funds, however, have been long in coming for a variety of reasons—political, economic and scientific, besides others. But Karma might still be at work, as might be the wont of the fatalistically inclined to say. Over the past few years, freak wild weather largely attributed to climate change has affected the developed western world much more and immediately than the anticipated effects of sea level rise. Typhoons, king tides, polar blasts, heat waves, droughts unprecedented flooding and other unusually inclement weather have badgered much of the developed world. Changing weather patterns Many of these weather incidents have been described as once in 500 years events. The high temperatures caused by heat waves in California and Australia in recent times was predicted for the 2030s, according to climate change models. The flooding in the United Kingdom, particularly around London and the southeast, are the worst in recent history and authorities fear there might be even worse inundation coming. It seems as though climate change modelling, at least as reported in the world media, was hitherto too focused on sea level rise and the potential inundation of coastal and small islands’ population. Not much attention was paid to the rapidity of changing weather patterns and whether that is directly linked to climate change. With this rash of disasters in the past six to eight months almost on every continent, the threat of the effects of climate change seem much more urgent and all pervading rather than confined to attention paid to measuring a few millimetres’ rise of sea levels around far flung islands. If the link of these recent disasters with climate change is established beyond doubt for politicians and those inclined to deny climate change—whether natural or man-made—the approach to tackling climate change and the attitude of the industrial nations will undoubtedly change. For the first time since the climate dialogues began, the industrial world has been rattled by

such a first hand experience of climate change. It is no longer some distant bogey, which is going to affect tiny, idyllic islands in the middle of some ocean somewhere at some unspecified time in the future. These events are ferocious, threatening, and more importantly, happening in their very countries—that, too, repeatedly. The two polar blasts that have snowed out Canada, the United States and Japan in the northern summer seem counterintuitive— incessant snowfalls in -40-degree cold in the middle of summer? But it has happened. Not once but twice. Weather scientists are now saying there will be more unpredictable instances of wild weather. Weather patterns have changed so dramatically and suddenly that even the staunchest of climate change deniers will find it hard to delink such events with the effects of climate change. The question is no longer whether climate change is natural or anthropogenic or a bit of both. The fact is that it is happening here and now—whatever may be the reason, it is reality and it is devastating. Perhaps, there is little that can be done to stop it from happening so repeatedly. Perhaps, it is too late and whatever we might attempt to do now is too little. But what can undoubtedly be done is step up preparedness to meet the challenges that disasters will bring in their wake. “Money is no object,” said British Prime Minister David Cameron, when his government was accused of doing too little too late to prevent the never before seen flooding around London. The British Royals provided Social Media with viral fodder as they chipped in to sandbag towns threatened by the flooding. The wild weather both in the US and the UK have shown how poorly prepared even the industrialised west is to face up to sudden, calamitous events. These events as well as the ones that will inevitably follow, according to weather experts and climate scientists, bring a sense of immediacy like never before to the political and economic business of dealing with the effects of climate change. Natural disasters don’t follow the boundaries of political geography. Any preventative strategy has to be global and must encompass all regions and peoples. These extreme weather events of the past few months might yet prove to be instrumental in changing the way the rich nations look at climate change financing and mitigation and adaptation strategies for the world at large during future climate change meets. This may well be the time when the rich nations put the money where their mouth is, to walk the talk—time is clearly running out, if it hasn’t run out already.


WESAY ‘The consequences of turning up at a Papua New Guinea border without a valid visa could prove extremely inconvenient and expensive. According to a government advertisement issued in a local newspaper, if a person does travel without a visa, they may be repatriated to another airport and not necessarily where they came from’

S

tarting from the first March 2014, Papua New Guinea is implementing new rules for Australian nationals visiting the country. The visa on arrival regime will be discontinued. Visitors wishing to travel to Papua New Guinea will need to obtain their visas or entry permits before beginning their journeys. They will no longer receive visas at the point of entry, as has been the case before. The consequences of turning up at a Papua New Guinea border without a valid visa could prove extremely inconvenient and expensive. According to a government advertisement issued in a local newspaper, if a person does travel without a visa, they may be repatriated to another airport and not necessarily where they came from. For instance, an Australian national coming in to Papua New Guinea from Cairns without a visa could be repatriated to Singapore if that was the next available flight. While this new visa regime has been long in coming, it is finally in place this month and the Australian business community is not pleased. Australia and Papua New Guinea have had a special relationship for a long time and Australian nationals have enjoyed relatively free access into the country, all but needing their passports stamped at arrivals and departures without the requirement for any pre travel documentation. The new regime makes that a requirement. It is understandable that Australians, particularly Australian businesspeople, see the move as retrograde, as something that brings in an additional bureaucratic measure that could well be done without. An apex body of Australian businesses doing business with Papua New Guinea is making representations to the governments of both countries to ensure this new regime does not prove to be a bother. Countries generally like to have reciprocal arrangements for travel. It makes things simpler for the citizens of the two countries to interact with one another, to do business more easily. Visa on arrival, travel permits and visa free travel are some of the different arrangements countries agree on to facilitate easier travel for their citizens. But such countries usually have other strong agreements for cooperation in place with enough reciprocal safeguards to deal with any potential problems, especially legal, concerning the people that are travelling. These arrangements could mean close cooperation between their customs and immigration departments of the two countries, strong information technology systems where information is easily shared and quick redress to contentious cross border problems. In other words, the two countries in question must be friendly to each other

and share a broad understanding, have mutual respect and have similar legal systems. If any of these do not match, it becomes an unequal partnership. The relationship between most Pacific Islands and Australia and New Zealand in this regard is unequal. While Australian and New Zealand nationals have enjoyed visa free travel to most of the islands for decades, the converse is not true. Islanders must have visas before they start travel to the two Anzac countries. This incongruence in visa arrangements exists because of the rather stark inequality in the economic status between the islands and Australia and New Zealand. The islands cannot possibly ever think of introducing a visa before travel regime for the nationals of the Anzac countries since most of their tourist dollars come from these countries. Any move that makes travel difficult would see visitor numbers drop and severely affect the economy. That is the singular reason why the islands make do with visas on arrival, which is when they impose conditions such as those that prohibit employment or necessitate an endorsement for doing business. Papua New Guinea and Australia, though PNG: Land of they have had strong historical and more business recently a growing business relationship, the and opportunties former probably feels the need for the two countries visa regimes to be put on par with each other (Papua New Guineans need to avail of a visa before travel to enter Australia while Australians could get their passports stamped on arrival in Papua New Guinea until February 28). Port Moresby’s move is clearly more indicative of a demand to be treated on an equal footing, with its growing economic clout in the region and the deepening engagement of Australian businesses there. It’s a self assertive, purposeful signal that demands respect from a neighbour to whose economy it is not only adding great value but is also an increasingly important cooperating partner as is seen from the assistance it has offered to Australia in accommodating offshore processing centres for the boat people. Quite simply, Papua New Guinea wants its citizens to get visa on arrival in Australia if Australia expects the same for its own citizens travelling to Papua New Guinea. While this rationale is completely understandable from the point of view of nationalistic fervour, it has to be practicable at an operational level. Customs, border security, intelligence, immigration systems as well as a host of other departments of the two countries will have to be aligned, not to mention information technology systems. Islands Business, March 2014 7


WESAY The Australia Papua New Guinea Business Council is urging the two countries in considering working on these practicalities in the interest of continued business growth. Its representation says that Australian citizens should not be subject to discriminatory treatment vis-vis citizens of third countries especially since the two countries have a bilateral trade and commercial relations agreement, which specifically precludes discrimination in this way. One practical idea that the council suggests is to introduce something like a reciprocal online entry process with a sharing of data between the two countries as an immediate arrangement. Once this is established online applications for travel visas should be a virtual on demand process for the most part. Such arrangements exist between other countries. For instance, the United States has

the ESTA system, where applicants get almost instant turn around and entry clearance online for three years provided the online inputs are consistent with the data base records. The council is also urging the administrations of the two countries to waive visa fees to facilitate greater travel between citizens of the two nations to promote better understanding, tourism as well as increase business relationships. It is important for the two countries to sit together and find a practicable way forward in the mutual interests of their citizens and their economies rather than introduce retrograde punitive measures on the basis of a false sense of national pride in a schoolboy style tit-for-tat, which serves nobody’s interest and only causes unpleasantness and results in lost opportunities.

‘PNG is too big to go Nauru’s way but the size of a country is no challenge to a band of irresponsible and dishonest leadership that refuses to see beyond the tips of their noses, as has been repeatedly shown in history all around the world’

A

survey of businesses in Papua New Guinea published last month paints a damning picture of the state of the country’s governance both in terms of corruption and spiraling law and order problems. The country’s economy has experienced blitzing growth rates for more than a decade when compared to its other Pacific island sister nations. Its natural resources have been in great demand because of the runaway growth rates of the economies of China, India, Russia and Brazil, among others. Exploration and the mining of minerals and hydrocarbons both on and offshore have brought big ticket investments into the country like never before in history. In fact, PNG has been the holy grail of investors around the region, particularly from China, Australia and the oil and mineral giants from all over the world. Mega investments are accompanied by a surge in infrastructure growth, which is supposed to further lead to a spurt in jobs and in raising the general standard of living of the common folk of any country. Sadly though, this has not been the case in PNG. The country’s successive administrations have failed to trickle the benefits of this fiery growth in the economy down the social and economic pecking order. Neither has it done anything substantial in terms of building human capacity to keep more of its own meaningfully employed or equipped them with a system to upgrade their skills to go up the wage ladder. Worse, as the survey unsurprisingly indicates, governments have miserably failed to rein in corruption, looking the other way when its own carve out avenues to amass wealth by dubious means and salt it away in overseas haven. It is common knowledge that is discussed openly in PNG that a large number of elected representatives and senior officials in successive governments have amassed so much 8 Islands Business, March 2014

wealth, that a lot of it has left the country, well invested in prime real estate on the sunnier coasts of Australia. This state of affairs has unfortunately widened the gap between the rich and the poor, which is one of the other major concerns that have emerged in the survey spiraling law and order problems, with no measures in sight to reverse the worsening situation. Most businesses surveyed admitted that they had been victims of violent crime and had to employ private security guards, which is a clear indication of a lack of confidence in the government’s law and order machinery at the grassroots level. While this grim scenario is the perceived reality at ground level, the survey is not so despondent on other matters, which indeed is all credit to the PNG Government. Long time business owners have said that the administration’s reforms have considerably improved the business climate and enhanced the country’s conduciveness to foreign investors and their investment. There is no doubt that there have been vast improvements in telecommunications connectivity, banking facilities and to some extent the cutting of red tape in fast tracking larger projects. But that is only one side of the story. What business needs most is assurance of a peaceful environment at the operational level, the availability of quick redress mechanisms when victimised by the country’s rampant crime and long term political stability all of which have topped the list of concerns within the business community in the country. One more major concern is the continuity of policy. PNG’s successive governments are prone to being fickle about policy. This greatly undermines investor confidence.

Undermining investor confidence


WESAY A recent case in point is the removal of visa upon arrival regime that the country had for Australian nationals. This has caused consternation in the Australian business community that has invested in PNG. What is even more surprising is that this move on the part of the PNG government contravenes the spirit of former agreements signed between the two countries that were meant to avoid exactly these sorts of issues in order to facilitate better people to people and business to business interaction. The country’s infrastructure story has also been patchy and heavily skewed towards benefiting the well off in society. While there have been great improvements in mobile telephony, internet bandwidth and banking services, these have not uniformly filtered down to rural areas, where even if they were, they would not be affordable because rural poverty in the country remains nearly unaddressed. It comes as no surprise that the business community has commented that infrastructure is woefully out of sync with the country’s economic ambitions and is hampering business growth. If the elected members charged with running PNG are serious about realising the true potential that exists in the country to transform itself from low development levels to a higher quality of life not

just for the elite but for all including those in the most inaccessible areas of the vast nation, they must deal with these problems head on. In the league of Pacific island nations, PNG is looked up to for its leadership and economic dynamism. Among its Melanesian peers, it is undoubtedly a role model. Unlike many other Pacific islands nations, PNG has a lot going for it. Its leaders must not squander it away in narrow self interest and the relentless pursuit of personal pelf through corruption, nepotism and dishonest practices. The country is at a cusp of delivering a great future to its citizens on the back of the immense wealth locked up in its natural resources. Managing this great potential poorly and with short sightedness will rob future Papua New Guineans of a bright and fulfilling future. If it does not address these grassroots level problems, it runs the risk of going the way of another Pacific nation that spiralled down from one of the richest in the world to deep penury in the space of just a decade. PNG is too big to go Nauru’s way but the size of a country is no challenge to a band of irresponsible and dishonest leadership that refuses to see beyond the tips of their noses, as has been repeatedly shown in history all around the world.

‘The story of the media in the Pacific islands region has always been like the islands, summertime weather. Sunny, cloudy, stormy, cyclonic, destructive, followed by a period of rebuilding only to be threatened and devastated next summer by another unpredictable string of cyclones. Any calm is to be experienced only between storms, which everyone is certain that it will come but nobody can say when’

T

his appears to be one of those summers. And the region’s media seems to be in the middle of two cyclones. One in the region’s most substantial media organisation and the other in its media academia. Coincidentally, both these events happened last month and both, like weather events, quite suddenly catching everyone by surprise. For one, the Pacific islands region’s nearly three decades old media body, the Pacific Islands News Association (PINA), changed its spots. At its biannual summit last month in Noumea, New Caledonia, members of the association were told that the organisation had now been registered as a private company in Fiji. According to some members at the Noumea meet there never was any consultation ahead of as important a decision as turning the charitable organisation into a limited liability private company.

Everyone was taken by complete surprise. The media body was first registered in Apia, Samoa in 1986 as an association of media outlets from around the region with the noble ideals of upholding media freedom, building human capacity in the news media and engendering independence of the Fourth Estate free from the influences of the other three estates of democracy. Eleven years later, in 1997, it was registered as a charitable institution in Fiji, where its secretariat had since moved. And in 2003, it merged with the Pacific Islands Broadcasting Association following an acrimonious and turbulent phase of transition. PINA has received its funding from development organisations and over the period of its existence has run a news service, essentially compiling news articles from regional media and list emailing it two or three times a day to paid subscribers and association members. It meets at a bi-annual convention where it normally elects its board. However, over the past few years its membership has conIslands Business, March 2014 9


WESAY siderably dwindled, with few paying members on its rolls. The past few summits have witnessed clashes between the board and members, especially over issues of governance. One of the more contentious of issues is the one of the secretariat being located in Fiji, where the media is subject to a decree and has to follow a code of conduct enforced by a government that is not democratically elected. Regional members have also expressed concern at the perceived links of former board members of the association to the government. Such resentment has resulted in the formation of splinter organisations aiming to represent the region’s media, but they have not really gained any noticeable momentum as either a news aggregator and distributor or a training organisation the twin functions that PINA has been carrying out. In that sense, as an association of regional media PINA has no peers. The latest move of turning the charitable organisation into a private company registered in Fiji, has caused understandable consternation in the regional media whether or not these outlets are paying PINA members. The rationale for the changeover, according to the board which incidentally continues its tenure into the organisation’s new private company incarnation thanks to legal advice it has received is that as a private company PINA will be more transparent, filing its returns and accounts and statutory obligations in time every year. Does this imply that it wasn’t doing so, as it was required to just as all funded entities are, while being a charitable organisation?

Latest move causing some consternation

We’ve Got it!

Should the PINA board, which now is presumably called the new board of directors of the newly minted private company, can hit the reset button and start afresh as a strong entity enjoying the confidence of old and new funders by guaranteeing a free and independent media organisation, that would be a real coup. This would certainly have the potential to serve the regional media’s interests better. But will this happen? Only time will tell. Meanwhile, another coordinator of the University of The South Pacific’s (USP) Journalism Programme has left his position suddenly last month following what has been described in the media as an acrimonious falling out with the institution’s management over academic issues. The USP Journalism Programme has been one of the oldest tertiary level regional journalism training programmes and has turned out a number of journalists and media professionals over the decades. The latest coordinator to leave follows in the footsteps of his predecessor, who also left equally suddenly under similar circumstances falling out with the management over academic issues. The programme was effectively left with no teaching resources for a time until replacements were brought in hurriedly from Australia and New Zealand, without a proper selection process, as should be the case in an academic institution of any standing. It’s not unlike emergency aid being dropped on the islands in the aftermath of a cyclonic disaster. • We Say is compiled and edited by Laisa Taga.

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Islands Business, March 2014


VACANCY ANNONCEMENT Regional Programme

GIZ - Coping with Climate Change in the Pacific Island Region Advisor on Climate Change in Samoa The Pacific German Regional Programme Coping with Climate Change in the Pacific Island Region (CCCPIR) aims at strengthening capacities of Pacific Island Countries and regional organisations to adapt to and mitigate the impacts of climate change. The CCCPIR will achieve this objective through working in 6 thematic components, namely 1) Strengthening the regional advisory and management capacity; 2) Mainstreaming climate considerations and adaptation strategies; 3) Implementing adaptation and mitigation measures; 4) Sustainable tourism and climate change; 5) Sustainable energy management; and 6) Climate change education. The program covers 12 Pacific Island Countries (PICs) and has its main office in Suva. It is implemented by the Secretariat of the Pacific Community (SPC) and GIZ in close cooperation with the Secretariat of the Pacific Regional Environment Programme (SPREP). GIZ CCCPIR is looking for a highly motivated and suitably qualified individual for the position of Advisor on Climate Change to be based with SPREP in Apia, Samoa. The requirements for the position are as follows: A. Responsibilities The incumbent is responsible for the implementation of the programme’s activities and achieving its objectives with SPREP, partner/counterpart institutions, NGOs and private sector in Samoa. Essential qualifications and background to applicants Qualifications Essential: Minimum qualifications of a Masters degree in environmental / applied sciences / resource management or resource economics linked to climate change OR a Bachelor degree in lieu, with applied relevant work experience in excess of the minimum required relevant work experience Knowledge / Experience 2. At least 7 years relevant work experience, at least 5 of those at the senior advisory level, preferably within the Pacific islands region 3. Strong technical advisory, analytical and problem solving skills 4. Demonstrated understanding of relational databases, information systems with relating tools and software packages 5. Demonstrated ability to be creative, innovative, persistent and resourceful - to develop and build the cooperation amongst the regional agencies including a good understanding of and experience with regional organizations in the Pacific 6. Demonstrated experience in monitoring and assessment of professional work and/or projects 7. Demonstrated excellent oral and written

communications skills as well as excellent team building and interpersonal skills Key Behaviors All staff are expected to uphold GIZ’s and SPREP’s Organizational Values and Code of Conduct which are Key Behaviors forming part of the annual Performance Development: • Environmental Leadership • Team behavior • Service Delivery • Valuing Pacific Island People • Integrity B. Tasks Professional advice • provides technical assistance to SPREP with strategic orientation in the field of climate change; • assists SPREP with the development of its climate change portfolio; • assists SPREP to enhance its service orientation towards effective delivery to its member countries; • participates in identifying needs for external support and advice and elaborates on policy recommendations and develops a strategic approach; • assists Samoan government agencies in developing and implementing plans and activities under the CCCPIR; • assists in defining terms of reference, selection, and supervision of contracted third parties based in Samoa in carrying out CCCPIR’s activities, including performance evaluation; • conceptualises, prepares and implements workshops, seminars, and other events on subjects that are related to the programme’s field of activities. • ensures sound administrative and financial processes relating to the Project component are followed Networking and Cooperation • closely cooperates with colleagues in SPREP; • liaises regularly with SPCs climate change programme team to ensure close alignment and integration of SPREP and SPC country level technical assistance activities, including contributing to the production of country level activity matrices and integrated work plans; • assists in building and fostering effective collaboration and cooperation with other CROP agencies, especially SPC; • co-operates with and ensures regular contacts and dialogue with Samoan government agencies, local communities, relevant organizations, non-governmental bodies and persons within the programme’s environment in order to enhance and maintain good working relationships; • cooperates with other development partners and projects in Samoa and represents CCCPIR at development partner meetings in Apia; • communicates and channels local interests and aspirations and exchanges ideas and information for the benefit of the programme; • Contributes to GIZ internal and external communication.

Knowledge Management • assists SPREP in compiling information on climate change adaptation and ensures knowledge transfer; • assists SPREP to further develop the regional climate change portal; • develops strategies and technical concepts including guidelines, manuals, and procedures on climate change adaptation; • prepares reports and presentation materials; • compiles relevant information for collaborative activities and missions; • Prepares appropriate inputs to the various programme reports/ publications including annual reports required by the Programme Director and the GIZ Headquarters. Management and Coordination Tasks • represents the Programme Director and GIZ in Samoa; • assists SPREP to effectively coordinate climate change strategies, programmes and activities in the Pacific together with other main stakeholders (SPC, PIFS, USP etc.); • supports general project planning and develops project designs, including preparation, organization and moderation of planning exercises, implementation, management, monitoring, quality management, evaluation, communication, and documentation; • contributes to the CROP Officials Climate Change Working Group, including the preparation of meeting documents and coordination activities; • assists partners in coordinating, prioritising and implementing programme activities at local level; • assists SPREP in monitoring work on climate change adaptation and the provision of sound climate information in the region; • drafts, manages, monitors and documents CCCPIR budget in Samoa against funds available; • compiles relevant information for collaborative activities and missions; • Contributes to GIZ internal monitoring and knowledge management. Change of job description Tasks may be reviewed and changed, as and when necessary D. Duration March 2014 to 31 December 2015 (with possibility for further extension) E: Remuneration Remuneration package shall be negotiated with the successful candidate F. Reports to Programme Director CCCPIR G. Duty Station SPREP, Apia, Samoa All applications to include achievement oriented CV, letter of expression of interest and minimum of 3 referees. The deadline for submission of applications is 20 March 2014. All applications should be submitted by the deadline by email to the following: Ms. Kalpana Lal Email: Kalpana.lal@giz.de


Whispers The Pacific Islands Forum Ministerial Contact Group...in Suva. Photo: FijiÕ s Ministry of Information

hotel in the capital Suva, as well as bursting into the meeting room at the Forum Secretariat unannounced and demanded a room search as well. It was not clear what the detectives were after but it certainly caused a diplomatic storm as it seems the rights of visiting diplomats as protected under the Vienna Convention were not observed. Last whisper was that the bosses at the Forum HQ would be sending a stern protest note to Fiji’s foreign ministry! Wonder what the Fiji foreign minister will do in light of the cold relationship it has with the Forum HQ?

Red faced ministers...Media reports of recent but most probably final fact-finding mission of the Ministerial Contact Group of the Pacific Islands Forum to Fiji generated a positive vibe all around from both sides... Group leader and Foreign Minister of New Zealand Steve McCully was all smiles before the camera as was his Trans-Tasman counterpart and new-’kid’-on-the-bloc, Australia’s Julie Bishop. But beneath those smiles were some highly red faces the whisper goes. Apparently, the Fiji police mounted a search of the visiting Foreign Ministers’ hotel rooms at a top Threatening Aussie scribe...So what’s the real whisper about one veteran Australian journalist who reportedly waved his fingers angrily at a woman executive of the Pacific media body, PINA at their biennial conference in Noumea recently? Not only that, the whisper goes onto say that the big white veteran journalist threatened to use his influence to stop Australian aid for the struggling Pacific media body. It was not clear whether the so-called big fella scribe was under the influence of his government in Canberra or was it the red substance that comes in a bottle? Whispers hears the media body will be writing a letter of complaint to his employers and PACMAS.  Facebook goodbye: Well, remember that regional diplomat who was recalled by his govern-

ment and then returned to his duty station after some kind of deal was done? Well, the diplomat, who was to be the dean of the diplomatic corps in Fiji, has finally departed our shores without much fanfare. The only thing we knew about his departure were postings on his facebook page... saying goodbye to all his golfing mates...no official goodbyes to the foreign ministry and so forth. What a way to go.  PINA casualties...Still on the PINA conference in Noumea, it appears the meeting got so intense that there were more than one casualty spotting bruise faces and arms after the conference. Even Fiji’s media tribunal head did not escape unhurt. He was spotting a bruised shoulder when he delivered his address at the meeting. He apparently slipped in his hotel bathtub and

injured his shoulder. Another Fijian colleague was spotting an injured nose; apparently attacked by another colleague after a night checking out the lights and sounds of Noumea.  Of mistresses and phone messaging... So how true is the whisper that a high profile court case in Fiji recently all came down to evidence gleaned from a mobile phone—messages between a former military senior official and his young lover? This official, the story goes sneaked out of the country before the authorities got him behind bars, but he apparently got exposed when police got hold of his mistress’ mobile phone. And how did they get the young woman? Whisper is that in texting her lover, she ran out of phone credit, so she did what everyone tend to do in that situation; she asked the phone of a

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Whispers colleague, and continued texting. Cutting a long whisper short, from work the young lover went on a drinking party with work colleagues and the colleague’s phone still in her pocket. The authority’s intervention only came when the wife of the owner of the phone could not raise her husband, and in rescuing the phone, all the ‘sensitive text messages on the phone were exposed!  Speedy New Caledonia: The need for speed took a new meaning in New Caledonia for Pacific Islands News Association members touring the Northern part of the main island. On the fourhour journey, they encountered three accidents one of them really looked serious. What can one expect when the speed limit is 110 kmph?  Cleanliness, next to godliness: Whispers used to think the European Union was bonkers about cleanliness—until it visited the Noumea local fish market. One can almost sleep on the clean floor and the fish mongers wear gloves when touching the fresh fish.  Lote’s back: After years of being caught in cheating scandals, it appears Fijian-born Australian rugby legend Lote Tuqiri is back in the arms of his wife and family. “It’s a new year and a new start for Lote,” beamed Sydney Confidential. His wife, psychologist Rebekha, mother of their two children, took Lote back despite a string of cheating claims. His marriage to Rebekha hit the rocks last year after the public news of his affair with TV personality, Dr Danielle Meagher, while he was playing for Lester in Ireland. When the affair surfaced, Lote flew back to his family home in Balmain, Sydney’s west. Though the Irish are keen to renew Lote’s contract in 2014, will the Fijian flyer take his family?  Big-foot PNG mountain: From a national hero in Papua New Guinea to just another teenager with big dreams in the rugby league world—that is a monster athlete, Wellington Albert. A tough breed of a young man from the Southern Highlands of PNG, Albert ticks a lot of boxes. The 194-centimetre, 104-kilogramme mountain man could be the first PNG national to be offered a lucrative NRL contract. But his tastes and attire would need to be attended to as the 19-year old has extra, extra large shoe size. In PNG, they don’t make shoes with size 15 in mind so when Albert turned up at a schoolboys’ trip to Brisbane two years ago, he found a pair of boots that fit him perfectly. Penrith Panthers’ Phil Gould laid eyes on Albert last year when he played for the PNG Kumuls in the World Cup

where he made an impression against such teams as New Zealand and Scotland. Panthers already have another PNG playmaker, James Segeyaro and the two have aroused interest in PNG in the 2014 competition. “It was big news,” Albert told the media in Sydney. “Every day, I would be in the newspaper or on TV. All of the fans in PNG who watch NRL have favourite teams.” Gould himself is overwhelmed by Albert’s move to Sydney’s west after the mountain man was being chased by West Tigers and South Sydney. “He’s very tall, he’s got size 15 boots, hands as big as dinner plates and is the biggest PNG boy I have seen,” boasts Gould. “He’s very fast, quite powerful. He gallops like a gazelle and is a beautiful mover. He’s well-mannered and well spoken.” Albert is already being compared to as a replacement for former Fijian international and last World Cup captain, Petero Civoniceva, who played at Panthers in his primetime career.  Raw flesh, a gulp of urine: Eating raw flesh of birds and turtle and drinking his own urine, a Mexican national turned up at the shores of Marshall Islands last month after a 14-month stint. Who would believe that in an incredible journey of survival from Mexico to a remote atoll in Marshall Islands, Jose Salvador Alvarenga made his 12,500-kilometre trip on a 7.3-metre fibreglass boat? Local authorities in Majuro refused to believe Alvarenga’s version of events, saying no one could have survived the seas for more than a year. “When we saw him, he was not really thin compared to other survivors in the past. I may have some doubts,” said Marshall Islands acting secretary of foreign affairs, Gee Bing. But Alvarenga’s story gained credence from ocean specialists and his families—a mother, father and daughter, Fatima who were waiting for his return last month.  Aussie dollar vs Kiwi dollar: Forget the rugby game, New Zealand is about to get another edge on the Aussies in February. Their currency came close to fetching nearly NZ$1.04 for every Australian dollar. For years, the New Zealand All Blacks have dominated the Australian Wallabies by beating them in rugby union. They have kept the prized Bledisloe Cup for 11 unmatched years. But with the New Zealand economy rising in all circles, so too has the dollar. The Australians have become accustomed to enjoying a strong dollar against the Kiwi but all that is gradually changing. Such currency change is also encouraging more and more Kiwis living in Australia to head back home to enjoy rugby and a dollar. • Whispers is compiled and edited by Laisa Taga. If you have any Whispers, please contact us on editor@ibi.com.fj

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Islands Business, March 2014 13


Pacific Update

Nauru’s new lawman under the micr By Davendra Sharma

I

t could be a classic case of jumping from a frying pan into the fire for Nauru as the government fired its two top judicial executives in favour of another Australian with claims of “deceptive conduct”. After months of wrangling as the business executive arm of the government tried to seize control over the island’s impartial judiciary, Nauru President Baron Waqa caved in to demands by the cabinet to sack three Australians working in the capital, Yaren. Waqa rebutted reports in the foreign media that his government was illegally trying to shut off the largely-foreign-run judiciary and control it to suit its policies. But sackings aside, Nauru’s new star recruit, Andrew Jacobson—a Melbourne lawyer—has been found to have a questionable business record with claims of engaging in “misleading and deceptive conduct”. Jacobson’s company 1800 000 000 was dragged into the Australian Federal Courts and was under investigation by the Australian Securities and Investments Commission—being sued by clients claiming misleading and deceptive conduct and that the company had not performed as well as advertised. Jacobson failed to return media requests for details on his past business dealings in Australia as he flew to Nauru to become the country’s new resident magistrate. “Compromised their roles” Following a string of misdemeanors including improper conduct with staff, the first to go was the island’s lone magistrate, Peter Law. Next was Chief Justice Geoffrey Eames, who was denied a return visa to Nauru. There was more controversy—Solicitor-General Stephen Bilim quit his office in dissent. “For too long, some people appointed to key positions in Nauru—including people from overseas—have engaged in unacceptable conduct that compromised their roles,” Waqa declared as Australian media reported that the Nauruan government was overstepping its powers in keeping the judiciary independent of the executive side of the bureaucracy. “We will determine who comes to our nation.” Law and Eames labelled their sackings as atrocious and a breach of common law. Australia’s Department of Foreign Affairs joined in the furore, saying Canberra has “conveyed the concerns of the Australian government about the implications of these actions for the rule of law in Nauru” through its High Commissioner, Bruce Cowled. But Waqa was relentless. “Nothing could be further from the truth and we consider these accusations as an attack on our sovereignty,” he said. Another set of war of words were exchanged between Canberra and Yaren but in the end Waqa had the final say, “We will determine who comes to our nation, and those coming from overseas who do not act in our national interest will not be welcomed. “We would expect any other nation to act in a similar way to protect its borders.” What went wrong where? Apparently, Law was not capable of being a magistrate as time after time he had his impartiality challenged, alleged the Nauru government. His expulsion was prompted after the government lost faith in him especially “in his ability to

Nauru President Baron Waqa…”we will determine who comes into our country.” Photo: www.un.org

hear matters in a manner considered to be fair and equal.” An unspecified number of complaints were alleged against Law by “former governments, members of the public and judiciary staff”. Law was often drunk and disorderly, it was claimed. The government’s version of the truths was challenged by its former SolicitorGeneral Bilim, who quit his office saying that the Nauruan government was acting unethically. He argued that the government should not have expelled Law and that when Eames ignored an injunction against his deportation, his work status visa was torn apart illegally. “I think by staying, I would have endorsed what occurred. I made a difficult decision, but I think it was a difficult decision, which was the right one under the circumstances,” Bilim told the foreign media. “Effectively, the status quo continues, there is a continuation of the contempt that has been shown for the judicial process,” he said. Law himself denied he was being unethical in his conduct as the island’s magistrate, saying the claims were “outrageous and preposterous”. Asylum seeker trials It appears that both Law and Justice Eames were previously at loggerheads with the government regarding hearings to be held for fighting asylum seekers–held on the island by the Australian border control authorities. Both had opposed the government’s orders for the impending trials of asylum seekers to be called at the detention centre premises and not in an open court.

Samoan language finally official By Merita Huch

A

fter 51 years of independence, the government of Samoa has just made its mother tongue the official language of the country. Many did not know that since 1962 that the English language had always been Samoa’s official language. It was a decision made to ensure that development matters are dealt with swiftly and

14 Islands Business, March 2014

smoothly. The continuous pressure to preserve the language, however, has now seen legislations drawn up to endorse the Samoan language in many aspects of development. Samoa has always prided itself in the richness of its language with the majority of Samoans speaking Samoan. But if you look back say 30-40 years ago, you’d find that the Samoan language was actually banned in some of the schools in Apia.

It was told with pride by many Samoans who attended these schools how they would be disciplined if they spoke Samoan in the classrooms. Upon entering the school compounds, everyone was expected to speak English. This took place only in the town area, however, the Samoan language still dominated communication then. Sunday schools and pastor schools made sure children were pushed to learn as much as they


oscope

MP’s jailing a warning By Patrick Matbob

Under Australia asylum settler programme, 543 Tamils from Sri Lanka, Iraqis, Sudanese and Iranians have been settled on the island. Last September, they caused a A$60 million worth of damages when they clashed with the local police and local residents. Police charged 119 men and if convicted they could spend life imprisonment in Nauru. Residents of Nauru under the asylum programme face an uncertain future as locals learn to adapt to unwanted foreigners from Asia and the Middle East. Was it a case of interference with judiciary? Bilim seems to agree. So too did the Nauruan opposition—but its calls for a vote of no-confidence in the government was rejected, 11 to seven in February. Nauru’s Law Society condemned the actions of the government. Australia’s Law Council and the Bar Association—which accredited both Law and Justice Eames raised their voice and urged Canberra to step in. But while Australian Immigration Minister Scott Morrison said actions of the Waqa government were pretty much for Nauru to sort out, his Foreign Affairs counterpart Julie Bishop had very little to add, saying it was “a domestic issue”. “It is very much about internal Nauruan politics,’’ said Morrison. Justice Eames argued that Canberra should put a hand in the matter as it had an ever-growing detention centre on the island. More sackings to follow It appears that there were more sackings of Australian citizens in key positions in the government in Nauru because of their links or allegiances to Law and Justice Eames. In an overnight sitting last month, the parliament repealed laws to allow the country’s Minister for Justice to deport any persona-non-grata at the request of the government without the provision for an appeal. This time it was the turn of former media adviser, Rod Henshaw, who became the first victim of the island’s revised Immigration Act. He was escorted to the airport where his flight was waiting for immediate departure to Australia. A former ABC broadcaster and media adviser, Henshaw who used to run a bar at the government-owned hotel in Nauru, said he was shocked. His lawyers requesting for a stay of the deportation order had no success. Nothing against foreigners Despite the sackings and possible more deportations, the Waqa government denied reports that his regime was being “irresponsible, arrogant and or racist”. A government declaration depicted a picture of the scene being “calm” and that the irresponsible reports were been sensationalised to suggest that Nauru was displaying “a culture of international bullying”. “This is exactly the sort of cronyism that the Nauru government is stamping out,” it said. Jacobson was the founding company secretary of a business he started with Gold Coast property developer, Dennis McIntyre. The business went under last year owing more than A$5 billion. His other company, the 1800 000 000 had claims challenged in a federal court though Jacobson denied any wrongdoing. The company has since wound up. In his resume publicised in the Australian media last month, Jacobson wrote he had been an “adviser regarding Nauru laws” to the Nauru government.

could on the language by conducting reading and writing classes within their schools. It has changed however, with so many young people opting to converse in English especially those living in the urban area. The influence of television and the internet has also contributed much to the change seen in the language. Parliament recently passed a law establishing a

T

he jailing of a Papua New Guinea MP, his rival and their supporters in Madang for contempt of court has sounded a warning to politicians and their supporters to strictly abide with the court orders. Last month, member for Usino Bundi, Anton Yagama, and his rival and former politician Peter Yama were jailed for nine and six months respectively by the Madang National Court. Both leaders served only 10 hours behind bars at Beon prison in Madang before they were bailed out by their lawyers who successfully appealed the decision before the Supreme Court. Their contempt conviction stemmed from the violence and disturbances that affected the recounting of the votes ordered by the court of disputed returns from the 2012 national elections for the Usino Bundi seat. The seat was won by Yagama, however his win was challenged by candidate Yama. The court of disputed returns ordered a recount of the votes. However, the recount period was marred by threats and violence between the supporters of the two candidates, resulting in presiding judge David Cannings ordering the candidates to control their supporters. Cannings had ordered in 2012 that no disturbances should occur especially within the precincts of the court. “I warned that if anything of this nature happened, the consequences would be serious,” Justice Cannings said. Despite his orders, supporters continued to cause violence resulting in Justice Cannings appealing to the leaders to control their supporters during proceedings in Waigani. Embarrassing He said: “It is embarrassing for me as a resident judge for Madang to see this sort of thing happening in the town I am responsible for and I implore the leaders Mr Yama and Mr Yagama to take control”. He said the damage to property and injuries to people are police matters and the law would take its course. However, he said with disturbances happening particularly in the precincts of the court in which he was presiding, he will not hesitate to charge everyone suspected of being involved with contempt of court. “I will not wait for the police to take the initiative; I will take the initiative. I will have people arrested and rounded up and imprisoned, put in remand awaiting their opportunity to be dealt with for contempt of court. I will not tolerate this sort of behaviour. It is very disappointing”. Despite his warnings, in September last year during one of the hearings, there was an incident outside the court room where supporters of Yagama threatened and exchanged words with Yama. Yama also criticised the police guarding the court house and threatened to shoot them with high powered weapons. As a result, the court began contempt proceedings against the two leaders and their supporters. In December, Justice Cannings found both Yagama and Yama guilty of two counts of contempt each. Yagama was guilty of failing to prevent his supporters from threatening violence against Yama, his lawyer, supporters and associates, and failing to prevent his supporters and associates from disturbing peace in the precincts of the court. Yama was also guilty of interfering with and harassing members of the police force and threatening to shoot them. The Supreme Court also released six supporters of Yagama who were jailed with him for contempt.

Language Commission to review the Samoan language, the addition of many borrowed words which are now becoming part of the daily spoken Samoan. All aspects of the language are being dealt with in this commission. The National University of Samoa (NUS) is now making the Samoan language a compulsory part of studies and nobody enters NUS without taking a Samoan paper.

Many in the country do not agree with this new policy saying that many of the degrees taken at NUS do not need the Samoan language and it’s unnecessary to have students take on Samoan studies when they’re studying for bachelor degrees in science, commerce and math for example. The Prime Minister says it was important that the commission was set up to ensure the language was preserved and protected.

Islands Business, March 2014 15


Cover Report

Climate ‘line in the sand’ Setting the scene about climate

By Sean Hobbs*

The 2007 IPCC report was rather a gamechanger in terms of people’s view of climate change,” says Dr Arthur Webb. His office is stacked high with maps of the Pacific, charts and technical reports. Seated behind a desk at the Secretariat of the Pacific Community’s (SPC) Applied Geoscience and Technology Division in Suva—he smiles past a computer that looks worn and tired, which seems fitting: keeping pace with Dr Webb’s schedule would challenge most mortals and machines alike. Dr Webb is referring to the Fourth Assessment Report (AR4) of the Intergovernmental Panel on Climate Change (IPCC), a document that provided a sobering wake-up call to the world when it was released. IPCC is currently in the process of releasing the next instalment, the Fifth Assessment Report (AR5). The first section of the report was released on September 27, 2013. On the basis of growing evidence, IPCC has revised upward the level of scientific certainty, stating: “It is ‘extremely likely’ that human influence is the dominant cause of the observed warming since the mid-20th century”.

16 Islands Business, March 2014

In the precise language of IPCC, the terminology ‘extremely likely’ is used to indicate 95–100% probability. In other words, “Human influence on the climate system is clear” according to IPCC. Two further sections of AR5 will be released soon: one at the end of March and the other in early April. “There is no other product in the world quite like it,” says Dr Webb. The assessment is an exhaustive scientific review process, with the final product subject to review and approval by the world’s governments. “There are ambiguities and there is confusion about the science of climate change. The Assessment Report is an internationally agreed line in the sand that says: ‘This is what we know at this time’. It is a massive effort, and I think it is hugely important. It sets the scene in terms of what we understand about the climate change process,” he says. Production of AR5 has involved just a handful of experts from the Pacific Islands region, among them Dr Webb. He is recognised for his work on sea level monitoring and coastal science, particularly tropical shoreline systems, and was invited to join IPCC’s Working Group II (WG II) in 2009. The commitment is substantial and voluntary but the sacrifice, he says, is worth it. AR5 will further strengthen and deepen our understanding of the situation. Dr Webb’s involvement with the process has fuelled his


change process conviction that considerably more scientific data need Obtaining reliable and appropriate evidence-based to be collected in Pacific Islands countries. Empirical information is critical to inform our responses to the facts deflate the role of opinion and bring rigour to threat. the argument, he says. Where countries simply don’t have the resources “It’s the only way to answer the fundamental questo improve scientific data collection and interpretations and that’s why it is important. You’ve got to be tion, the international community needs to consider able to collect empirical data that show how trends working in partnership to boost research efforts, says are changing over time, or not.” Dr Webb. Our understanding of the present and potential He describes some successful examples. One is future impacts of climate change in the Pacific needs SPC’s involvement in the Australian Governmentto be improved. Achieving this requires greater infunded Pacific Sea Level Monitoring (PSLM) Project. vestment in environmental monitoring systems in PSLM, established in 1991, is a network of sea level the Pacific Islands to obtain scientific data, according gauges in 14 Pacific Islands countries that provides a to Dr Webb. continuous stream of data, including sea level meaCollecting more empirical data will permit a more surements and sea-surface temperature. nuanced view of the situation and support strategic Dr Webb says the value of the information provided decision-making and allocation of resources in the Dr Arthur Web...troubled by the by PSLM to scientific research, including research into lack of data available in the Pacific. years to come. the effects of climate change, has been extraordinary. Photos: SPC Increasing investment in data collection and interAnother example is the contribution of the Pacific pretation may be difficult in the context of national Climate Change Science Programme (PCCSP), again development where there are many competing and pressing needs funded by the Government of Australia. vying for government resources; but where climate change looms This initiative included downscaling regional climate models as a significant threat to sustainable development it needs to be to provide improved climate information in 15 countries in the considered in the mix of development priorities. Pacific, including East Timor. (The success of PCCSP has been Islands Business, March 2014 17


Cover Report

A lot of countries...don’t have legislation and this makes it difficult for the private sector to have the confidence to invest because the legislation is not there.

continued through the newer Pacific-Australia Climate Change Science Adaptation Planning programme). Downscaling involves applying complex scientific method to larger scale predictions in order to generate locally relevant data. What this means in practice, explains Dr Webb, is that, previously, the grids (spatial units used in climate modelling) were primarily modelling the ocean environment and not the islands environment. “That might be okay for a small, low-lying atoll in the middle of a grid because they are so influenced by the oceanic processes, but plainly in the case of an island like Viti Levu in Fiji there are quite different weather patterns, depending on which side of the island you live on. “Previously, the projection models didn’t provide that level of subtlety. In other words, they treated both sides of the island the same, whereas downscaling is used to interpret these island-scale differences.” Dr Webb says there are a few key points to be made. Firstly, it is important that people differentiate between current observed impacts of climate change and projected impacts. Mixing the different concepts and types of information does little to alleviate people’s confusion and anxiety. Secondly, where observed impacts occur, it is important to test if they can be confidently attributed to climate change. He uses the example of climate change and sea-level rise across the Pacific. “It is occurring and our understanding is supported by high quality observational data. On a global scale it is also clearly understood that climate change is causing sea-level rise. However, sea-level rise is not consistent across the Pacific islands. Some have higher rates. “This is called ‘variability’ and at this time it is generally considered that the variability we see across the region in sea-level rise is mainly driven by ongoing natural processes. So we can’t necessarily attribute a higher rate in one location only to climate change; there are many factors at play.” The process The IPCC is a scientific body of the United Nations established to provide clarity on the state of knowledge within the international scientific community on climate change. It does not conduct research or monitor weather. Its main product is periodic Assessment Reports (ARs) released approximately every six years. These review and assess published peer-reviewed literature on the scientific, technical and socio-economic dimensions of climate 18 Islands Business, March 2014

change, including its potential impacts and options for adaptation and mitigation. Each AR contains four stand-alone components delivered separately. There are three full-length reports, each with a summary for policy-makers, compiled by three thematic working groups (WGs). The fourth component is a final synthesis report designed to compact the enormous wealth of knowledge compiled by the WG reports into one concise, readable and scientifically authoritative document relevant to policy-makers. The process is a monumental international effort. To give an idea of the scale of the work, the most recent WG I report, Climate Change 2013: The Physical Science Basis, available on the IPCC website, is 375 megabytes. The WG I core writing team consisted of 209 lead authors and 50 editors from 39 countries, assisted by more than 600 contributing authors. Together, they reviewed more than 9200 scientific publications, sifted over two million gigabytes of numerical data, and responded to 54,677 comments provided by 1089 expert reviewers from 55 countries, including 38 representatives of governments. Before the final report was authorised for release, it was approved line-by-line and accepted by a panel composed of IPCC’s 195 member governments. Following WG I comes the publication of WG II, Climate Change 2014: Impact, Adaptation and Vulnerability, in late March and WG III, Climate Change 2014: Mitigation of Climate Change in April. Together, these documents involved 581 lead authors and editors, joined by thousands of contributing authors and expert reviewers and these documents, too, must be approved line-by-line by the world’s governments. The final Climate Change 2014: Synthesis Report will be considered and approved for release in late October. Small islands states The ringtone has stopped and Dr Netatua Pelesikoti’s voice is clear on the line. She is talking from her office in the Secretariat of the Pacific Regional Environment Programme (SPREP) in Apia, Samoa. Her day job, as Director–Climate Change, is demanding and yet, like Dr Webb, she finds time to be a lead author for the IPCC’s soon to be published WG II report. Dr Pelesikoti, too, is convinced of the importance of the IPCC process. It summarises the evidentiary basis of climate change and how it occurs, both naturally and as a result of human influence, she explains. As it happens, both Dr Pelesikoti and Dr Webb are part of the same writing team, working on the chapter about small islands.


“It’s all about small islands, so the summary for policymakers in that chapter will be very appropriate to all of the governments of our Pacific Islands countries and territories.” Like Dr Webb, who was troubled by the lack of data being collected in the Pacific, Dr Pelesikoti points to a lack of peer-reviewed literature originating in the Pacific. Governments, academic institutions and intergovernmental organisations all have a role to play in addressing this gap. Part of the dilemma is resources. “There are differences in government. If we are talking about small Pacific Islands countries, they may not have the capacity to fund research. If we are talking about developed countries such as Australia, New Zealand, United States of America, United Kingdom and France that are members of various councils in the Pacific, then, yes, there is an opportunity there for them to support Pacific governments and research institutions to conduct more research. Dr Elisabeth Holland, Director for the Pacific Centre for Environment and Sustainable Development and Professor of Climate Change at the University of the South Pacific, is working to build capacity in climate change science in the region. She, in addition to the demands of her job, has also contributed to the production of the AR5 and has participated in the production of three previous ARs as well. Looking ahead, Dr Pelesikoti says, “It will be very important for the next phase of IPCC reporting (the future AR6) that we have a lot of published studies from the Pacific.” Importantly, there is an opportunity for intergovernmental organisations in the Pacific to be engaged here. “At present, much of the technical work that SPC and SPREP are doing is regarded as ‘grey’ literature because they have not gone through the process of peer-review and publication in a recognised academic journal.” While the IPCC authors are able to draw upon grey literature in certain circumstances and subject to special conditions, the situation is not ideal. “Changing this situation,” she says, “is not that difficult; it’s a matter of time and resources to complete these (peer-review) steps.” The peer-review process subjects scientific papers to independent scrutiny by other qualified scientific experts, or peers. It is an important means of maintaining quality control and accuracy within the scientific community. Peer-reviewed publication provides credibility for the author and confidence for other researchers to cite the material. Both Dr Pelesikoti and Dr Webb point to the peer-reviewed

2011 publication of Vulnerability of tropical Pacific fisheries and aquaculture to climate change by SPC to demonstrate that it can be done and that it pays dividends for the scientific and international community at large. Pacific solutions The publication of the WG II report examining impacts, adaptation and vulnerability in late March will be a significant occasion for the Pacific region. It will provide a new internationally agreed benchmark in our understanding of current impacts, projected impacts and the potential opportunities and challenges around adaptation to climate change. The WG III report on mitigation of climate change set for release in April will also be a significant document for Pacific Islanders, according to Solomone Fifita, Deputy Director of SPC’s Economic Development Division responsible for the regional Energy Programme. Fifita was a lead author for the 2011 IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation and has continued his involvement with WG III. Implementation of renewable energy solutions has significantly increased in recent years, says Fifita, “Yet if you look at the trend, it’s still less than what is needed to keep the global temperature to below the 2 degrees warming scenario by the end of the century.” Pacific Islands states are forced to reckon with the consequences of climate change on the one hand. With the other, they are actively pursuing an agenda for leadership in implementing renewable energy solutions, in spite of their own comparatively small emissions footprints. “I think that is what our leaders have been demonstrating recently, as we have seen in the Majuro Declaration for Climate Leadership, and if you look at the activities under that declaration it is all about renewable energy, energy efficiency targets and their translation to greenhouse gas mitigation targets—the reduction of greenhouse gases,” says Fifita. Renewable energy, energy efficiency in the transport sector and capacity building are three key areas for development in the Pacific, says Fifita. “We need to build local capacity to plan, maintain, and create an enabling environment that will allow renewable energy and energy efficiency projects to be sustainable.” An enabling environment, in many cases, depends on the adoption of appropriate legislation and regulations by government. Islands Business, March 2014 19


Cover Report “For example, there needs to be standards when you bring in the example, assisting capacity development in Pacific Islands countries private sector to generate electricity from renewables. It needs reguin the context of the international negotiations on climate change. lation to govern how they will operate. Secondly, it needs legislation “Both the European Union and the Pacific countries take climate to set the tariff, the price at which a private sector enterprise can sell change extremely seriously,” he says. “I think we can form important electricity to the grid. A lot of countries don’t have these, which strategic alliances when we’re trying to get, for example, legislation makes it difficult for the private sector to have the confidence to through on climate change,” he says, referring to the international invest because the legislation is not there.” push for legally binding targets on emissions to be agreed at Services are availthe COP meeting in 2015. able here in the Pa“I think that the European Union feels that the agenda of cific to assist counthe Pacific Islands countries, in terms of combating climate tries and territories change is very coherent with that of the European Union. meet their ambitious “On the one hand, the Pacific Islands countries are the energy targets, says most threatened by the adverse impacts of climate change Fifita. “SPC provides and, on the other hand, we, the European Union, are the comprehensive enmost ambitious block of developed countries in terms of ergy advisory services binding commitments. The Pacific and the EU are ‘natural on renewable energy, allies’ so to speak. energy efficiency la“The Pacific represents an important number of seats belling and standards, and votes in the UN and other international organisations. energy policies and “The EU and the Pacific share many core values and petroleum advisory positions on global issues. In its own interest and in the services, as well as interest of our Pacific partners, the EU leverages regional maintainig a regional partnerships towards achieving shared global objectives.” energy database.” Ambassador Jacobs says that, within the Pacific region, Like Dr Pelesikoti, the EU is committed to supporting Pacific Islands counFifita says he would like tries and territories to build resilience to the impacts of to see more Pacific Isclimate change. landers engaged with “Our priority recently has been working with comthe IPCC and the Unitmunities and governments on-the-ground,” he says. ed Nations Framework “We rely very much on Convention on Climate implementing partners, Change (UNFCCC). particularly on SPC to do “We see a lot of Pacific that. For example, we’ve set experts attending the anup an emergency operations nual COP meetings (UNcentre in Palau to help the FCCC Conference of Parcountry coordinate efforts ties) but very few are enwhen a disaster occurs.” gaged in other UNFCCC He points out that the and IPCC processes. EU has funded similar cen“This is another area tres in a number of Pacific where we can put forward Islands countries, as well as Pacific Islands’ views, exproviding focused sectoral periences and inputs to support in areas such as key UNFCCC and IPCC improving water resilience Solar PV panel installation...in installation...in outer islands of Marshall Islands. in periods of drought. technical and administrative Part of SPCÕ s North Pacific Renewable Energy and Energy Efficiency reports.” “Clearly, the Marshall Project funded by the EU. Islands was very badly afThe international sphere fected last year, so we have The updated AR5 report will provide critical information for provided more than 700 household catchment tanks in the Marshall the international negotiating process on climate change—the COP Islands and it has benefitted around 7000 people on Majuro. meetings of the UNFCCC. “Again in Tuvalu, we’ve provided one thousand tanks, catchIdeally, the knowledge condensed by the IPCC will also find its ment tanks for the families who are living on the outer islands in way into on-the-ground response initiatives. Funafuti. So I think it is a combination of working with the PaThere is an increasing flow of international assistance into the cific Islands countries to help them negotiate internationally…and Pacific region earmarked for greenhouse gas mitigation and adaptathen helping communities to deal with the immediate problems tion to climate change, including disaster risk management. that climate change is causing, such as more intense drought and There is a plethora of activities and a multitude of donors. One stronger cyclones.” of the biggest is the European Union (EU). IPCC will consider the WG II report in Yokohama, Japan, from “We currently have around 140 million Euros for ongoing pro25–29 March and the WG III report in Berlin, Germany, from grammes in Pacific Islands countries and territories, which is the 7–11 April. equivalent of around F$360 million.” Stay tuned to IPCC’s website (www.ipcc.ch) for updates, the release Ambassador Andrew Jacobs is seated in his office at the Delegation of the summaries for policymakers, and the full-length reports. of the European Union to the Pacific in Suva, Fiji. The support, • Sean Hobbs is SPC’s Climate Change Communications and Information Officer. he says, encompasses a wide variety of initiatives including, for Islands Business, March 2014


Marshall Islands

Politics

Small boat, long voyage...This is the seven-meter boat in which Jose Salvador Alvarenga survived for 14 months before drifting into Ebon Atoll in the southern Marshall Islands at the end of January. Photo: Duston Tarkwon

From Mexico to the Marshalls Castaway survives 14-month Pacific ordeal were times I would think about killing myself,” he said. His faith carried the day. Late in 2012, El Salvadorian He couldn’t stop dreaming about eating his fisherman Jose Salvador Alvarenga favorite foods, especially tortillas. “But then I and his Mexican companion Ezewake up and all I see is the sun, sky and the sea.” quiel Cordoba left southern Mexico All he had was raw turtle and bird in a 24-foot boat for a day of shark meat. Alvarenga said he had lost track fishing. They didn’t return. of time as the monotony of one day On January 29, 2014 Alvarenga and segued into another, the small boat his barnacle-encrusted boat washed swaying and rocking to the rhythm into Ebon Atoll in the Marshall of the waves that dwarfed the vessel. Islands. His 6,000-mile (9,650 kiWhen it rained, the bottom of the lometer), 14-month drift across the boat served as Alvarenga’s water catchPacific Ocean quickly made headlines ment. During one stretch of the voyworldwide. age, it did not rain for months, forcing The question at the top of most him to take desperate measures to people’s minds was simple: Could keep his body hydrated. anyone survive such a long ordeal at “The hardest thing I had to do to sea with no provisions other than what Tr a u m a t i c s h o c k survive was to drink my own urine,” ...Doctors said Jose they could catch? he said. Alvarenga alternated drinking Salvador Alvarenga But somehow Alvarenga had was suffering from what little urine he produced with washed into Ebon, and within a post-traumatic shock forcing down the blood of turtles to short time of his arrival, the owner following his 14-month, provide his body with some liquid of Alvarenga’s fishing boat and other 9,600km drift from during the drift. fishermen in the Mexican village of Mexico to the Marshall What probably saved his life was Photos: Giff Chocohuital, where he lived, con- Islands. a storage box for fish. He crawled Johnson firmed that they had searched for him inside for relief from the brutal when he disappeared in late 2012. tropical sun as he drifted inexorably west-southwest. Looking out from the The 9,600 kilometer drift fishing boat day after day, all Alvarenga could see Alvarenga and 23-year old Cordoba departed was dark blue waters stretching from horizon to Costa Azul in southern Mexico for a one-or, at the horizon. Two Christmases passed as he drifted most, two-day shark fishing trip in their 7.3-mefor over 400 days. ter fiberglass boat, “Camaroneros de la Costa”. But once out of sight of land, their single Lost, then found 75hp engine broke down and a storm blew them On the afternoon of January 29, 2014, Alvafurther out to sea. The pair caught fish, sea birds renga made land at Ebon Atoll, the southern-most that landed on the boat, and turtles—eating all outpost of life in the Marshall Islands. It is a small of it raw. While Alvarenga managed, he said his community of about 700, most of whom survive younger companion had difficulty eating raw by fishing and farming. bird meat. Alvarenga managed to drag his boat across the “I tried to get him to hold his nose and eat reef onto the rocky, wind-battered eastern shore but he kept vomiting,” said Alvarenga as he of the main island. He collapsed from exhaustion demonstrated how he physically attempted to and slept until early the next morning. When he force feed Cordoba while pinching his nose shut woke up, he saw a house across a short reef flat so he wouldn’t be nauseated by the smell of raw, and began yelling for help. decaying meat. But it didn’t work. Cordoba died Amy Libokmeto and Russell Laijedrik heard some weeks into the drift, Alvarenga said. shouting and spotted Alvarenga on the neighborAlvarenga’s faith in God sustained him. “There ing island’s beach. Scraggly looking and dressed

By Giff Johnson & Suzanne Chutaro

Back to civilization...Jose Salvador Alvarenga steps off the Marshall Islands government’s marine patrol vessel in Majuro after being transported from Ebon Atoll.

only in his shredded underwear, Alvarenga collapsed. They helped him bathe, fed him pancakes, and alerted Mayor Ione deBrum to Alvarenga’s arrival. He only spoke Spanish and no one on the atoll was fluent in his language, so communication was spotty. Local residents stopped by the council house where he was staying to bring him coconuts, food and clothing, said deBrum, who alerted authorities in Majuro. The government’s marine patrol vessel was quickly dispatched, bringing Alvarenga to Majuro, where the world’s media was waiting to hear his story—though after giving one short interview, he clammed up and only a few details of his ordeal have so far emerged. His appearance of good health as he stepped off the boat in Majuro was misleading. His legs were swollen and he was in pain as he overnighted at Majuro Hospital, his first night in the city, undergoing a battery of laboratory tests and examinations by doctors. Although he suffered from dehydration and other ailments, he was cleared for travel after a few days and was flown home to El Salvador for an emotional reunion with his family. Dr. Kennar Briand, the hospital’s chief of medical staff, expressed surprise at Alvarenga’s relatively good health. “I don’t know if anyone has drifted for 14 months (and survived),” said Dr. Briand, who has examined numerous drifters over the years. But local resident Jack Niedenthal, who filmed an interview with Alvarenga at Majuro Hospital, believed his story. “My feeling is this guy has been through hell. This is a man of the sea. He didn’t go out sports fishing for the weekend—he’s spent his life fishing.” By the time he arrived home in mid-February, fishermen in southern Mexico had confirmed the details of Alvarenga and Cordoba’s departure in November 2012 and the unsuccessful search effort that was mounted when they didn’t return. University of Hawaii scientist Nikolai Maximenko and scientific programmer Jan Hafner conducted a computer model experiment on the drift and concluded that all scenarios showed a drifting boat would have passed by, or near, Ebon Atoll. No matter the questions that continue to swirl around Alvarenga, one thing is abundantly clear: he won’t be going fishing in the near future. Islands Business, March 2014 21


Politics

Marshall Islands

60 years later...March 1 marks the 60th anniversary of the Bravo hydrogen bomb test at Bikini. In the Marshall Islands, where the day is a national holiday, islanders marked the 50th anniversary with a parade in Majuro. Photo: Giff Johnson

At 60, legacy of Bravo still reverberates

He said in response to this lack of knowledge, “we have organized several events focused on utilizing Web 2.0 technologies to facilitate a social network among third generation hibakusha youth around the world.” In 2012, Jacobs organized a Skype dialogue between Marshallese youth and young people from Hiroshima, which experienced the first atomic bomb used in warfare in 1945. In Majuro, “young people will share histories and stories of their communities and will observe the commemoration of Nuclear Survivors Remembrance Day,” Jacobs said. In addiis needed. tion, the workshop will The U.S. continues help them learn how to fund limited health to conduct oral history care and medical prointerviews with their elgrams for people affected ders using inexpensive by the testing, as well cameras, cell phones as conducting ongoing or iPods. scientific research and “We feel that young monitoring. people will obtain A series of events and much more important workshops in Majuro oral history testimonies for Nuclear Survivors than will outsiders like Day will feature exourselves or other acachanges among people demics or journalists,” with nuclear experiences he said. “This will also from Japan, Australia, the Marshall Islands and Nuclear fallout...the Bravo test on March 1, 1954 was the encourage young peolargest U.S. hydrogen bomb ever detonated. It spewed elsewhere. radioactive fallout on hundreds of islands and many ple to begin to become community historians.” In addition, fisherman people in the Marshall Islands. The 60th anniversary Oishi Matashichi, who of Bravo will be front was aboard the Lucky and center at a ceremony at the Clinton PresidenDragon vessel that was fishing near Bikini on tial Center in Little Rock, Arkansas, on February March 1, 1954, will visit for exchanges with 28. A non-profit group known as the Marshallese local residents. An important aim of these exEducational Initiative, Inc., (MEI) is organizing changes is to connect youth with the story of the event in Arkansas where a large community their grandparents. of Marshall Islanders now lives. “We will be bringing two third-generation The Arkansas Nuclear Remembrance Day hibakusha (nuclear victims) students from Japan, event will “reflect on our shared nuclear legacy, two from Australia, and two from Kazakhstan honor survivors and victims, and educate the to join with local students there in Majuro for a public about the global consequences of the use of three-day workshop,” said Prof. Robert Jacobs, nuclear weaponry,” said Dr. Jessica A. Schwartz, who is based at the Hiroshima Peace Institute at MEI Cultural Programs Director. Hiroshima City University. Whether these events push action on outstand“When we visited Majuro two years ago, and ing nuclear clean-up, compensation and health also in our many visits to other radiation affected care needs, they will connect people to issues that communities, we heard much of the same thing 60 years after America’s largest hydrogen bomb from many of the community elders, and that detonation are still a concern of significance in was how difficult it was to engage younger people the Marshall Islands. with the community nuclear history.”

Unresolved issues remain to be resolved By Giff Johnson March 1 is a national holiday in the Marshall Islands marking the day the Bravo hydrogen bomb was exploded at Bikini Atoll, spewing radioactive fallout on islands around the Marshall Islands. This year’s 60th anniversary is being marked in Majuro—and other locations around the world. For most Marshall Islanders, it will be a time to reflect on the fact that the U.S. nuclear weapons test legacy has left numerous unresolved issues for their nation. One of the most important outstanding issues is the U.S. Congress’ lack of official response to a petition for more compensation submitted over 13 years ago to Washington by the Marshall Islands government. The point of the petition, which was submitted pursuant to the Compact of Free Association provisions, is to get the U.S. government to pay the awards adjudicated by the Nuclear Claims Tribunal, which was established by the Compact. The Tribunal’s awards for only four of the most seriously affected atolls is over US$2 billion. These have not been paid because U.S. funding provided under the 1983 agreement proved to be far short of the awards made by the Tribunal during its period of operations from the early 1990s to the late 2000s. A United Nations Special Rapporteur, in a report to the UN Human Rights Council in late 2012, urged the U.S. government to pay the awards issued by the Tribunal, as well as making numerous other recommendations to address ongoing problems caused by the nuclear test legacy. The U.S. government maintains that the Compact’s US$150 million compensation fund was “full and final” and that no further compensation 22 Islands Business, March 2014


TRADE MARK CAUTIONARY NOTICE IN NIUE & MARSHALL ISLANDS Notice is hereby given that SONY CORPORATION, of 11-7-1 Konan, Minato-ku, Tokyo Japan, is the sole owner and proprietor in the Marshall Islands and Niue and elsewhere of the trademark below:

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which is used in International Class 1 upon or in connection with the following goods: Chemicals used in industry, science and photography, as well as in agriculture, horticulture and forestry, unprocessed artificial resins, unprocessed plastics; manures, fire extinguishing compositions tempering and soldering preparations, chemical substances for preserving foodstuffs, tanning substances, adhesives used in industry, Acetate of cellulose, unprocessed, Acetates, Acetic anhydride, Acetone, Acetylene, Acetylene tetrachloride, Acid proof chemical compositions, Acids, Acidulated water for recharging accumulators, Acidulated water for recharging batteries, Acrylic resins, unprocessed, Actinium, Activated carbons, Additives, chemical, to drilling muds, Additives, chemical, to fungicides, Additives, chemical, to insecticides, Additives, chemical, to motor fuel, Adhesive preparations for surgical bandages, Adhesives for billposting, Adhesives for industrial purposes, Adhesives for paperhanging, Adhesives for wall tiles, Agar-agar, Agglutinants for concrete, Aggressor repellent chemicals, Agricultural chemicals, except fungicides, weedkillers, herbicides, insecticides and parasiticides, Albuminized paper, Alcohol, Aldehydes, Algarovilla (tanning material), Alginates (gelling and inflating preparations)other than for alimentary purposes, Alkalies, Alkaline iodides for industrial purposes, Alkaline metals, Alkaline-earth metals, Alkaloids, Alum, Alumina, Aluminium acetate, Aluminium alum, Aluminium chloride, Aluminium hydrate, Aluminium iodide, Aluminium silicate, Americium, Ammonia, Ammonia alum, Ammonia (volatile alkali)for industrial purposes), Ammoniacal salts, Ammonium aldehyde, Ammonium salts, Amyl acetate, Amyl alcohol, Anhydrides, Anhydrous ammonia, Animal albumen (raw material), Animal carbon, Animal carbon preparations, Animal charcoal, Anti-boil preparations for engine coolants, Antifreeze, Anti-frothing solutions for accumulators, Anti-frothing solutions for batteries, Anti-incrustants, Anti-knock substances for internal combustion engines, Antimony, Antimony oxide, Antimony sulphide, Anti-sprouting preparations for vegetables, Antistatic preparations, other than for household purposes, Antitarnishing chemicals for windows, Antranilic acid, Argon, Arsenic, Arsenious acid, Artificial resins, unprocessed, Artificial sweeteners (chemical preparations), Astatine, Auxiliary fluids for use with abrasives, Bacterial preparations other than for medical and veterinary use, Bacteriological preparations for acetification, Bacteriological preparations other than for medical and veterinary use, Balm of gurjun (gurjon, gurjan)for making varnish, Barium, Barium compounds, Barium sulphate, Baryta, Baryta paper, Barytes, Bases (chemical preparations), Basic gallate of bismuth, Bate for dressing skins, Baths for galvanizing, Bauxite, Beer preserving agents, Beer-clarifying and preserving agents, Bentonite, Benzene derivatives, Benzene-based acids, Benzoic acid, Benzoic sulphinide, Berkelium, Bicarbonate of soda for chemical purposes, Bichloride of tin, Bichromate of potassium, Bichromate of soda, Biochemical catalysts, Biological preparations (other than for medical or veterinary purposes), Birdlime, Bismuth, Bismuth nitrite for chemical purposes, Bleaching preparations (decolorants) for industrial purposes, Blood charcoal, Blueprint cloth, Blueprint paper, Bone charcoal, Borax, Boric acid for industrial purposes, Brake fluid, Brazing fluxes, Brazing preparations, Brickwork preservatives, except paints and oils, Bromine for chemical purposes, By-products of the processing of cereals for industrial purposes, Caesium, Calcined soda, Calcium carbide, Calcium cyanamide (fertilizer), Calcium salts, Californium, Camphor, for industrial purposes, Carbide, Carbolineum for the protection of plants, Carbon, Carbon black for industrial purposes, Carbon for filters, Carbon sulphide, Carbon tetrachloride, Carbonates, Car-

bonic acid, Carbonic hydrates, Casein for industrial purposes, Cassiopium (lutetium), Catalysts, Catechu, Caustic alkali, Caustic soda for industrial purposes, Caustics for industrial purposes, Cellulose, Cellulose derivatives (chemicals), Cellulose esters for industrial purposes, Cellulose ethers for industrial purposes, Cement for boots and shoes, Cement for mending broken articles, Cement for pneumatic tires (tyres), Cement (metallurgy), Cement preservatives, except paints and oils, Cement-waterproofing preparations, except paints, Ceramic compositions for sintering (granules and powders), Ceramic materials in particulate form, for use as filtering media, Cerium, Chemical intensifiers for paper, Chemical intensifiers for rubber, Chemical preparations for facilitating the alloying of metals, Chemical preparations for scientific purposes (other than for medical or veterinary use), Chemical reagents (other than for medical or veterinary purposes), Chemical substances for analyses in laboratories (other than for medical or veterinary purposes), Chemicals for forestry, except fungicides, herbicides, insecticides and parasiticides, Chimney cleaners, chemical, China slip, Chlorates, Chlorides, Chlorine, Cholic acid, Chromates, Chrome alum, Chrome salts, Chromic acid, Chromic salts, Chromium oxide, Cinematographic film, sensitized but not exposed, Citric acid for industrial purposes, Clarification preparations, Coal saving preparations, Cobalt oxide for industrial purposes, Collodion, Color-brightening chemicals for industrial purposes, Colour-brightening chemicals for industrial purposes, Combusting preparations (chemical additives to motor fuel), Compositions for the manufacture of phonograph records, Compost, Concrete preservatives, except paints and oils, Concreteaeration chemicals, Condensation-preventing chemicals, Coolants for vehicle engines, Copper sulphate (vitriol), Corrosive preparations, Cream of tartar, other than for pharmaceutical purposes, Creosote for chemical purposes, Crotonic aldehyde, Cryogenic preparations, Cultures of microorganisms other than for medical and veterinary use, Curium Currying preparations for leather, Currying preparations for skins, Cyanides (prussiates), Cymene, Damp proofing preparations, except paints, for masonry, Decolorants for industrial purposes, Defoliants, Degreasing preparations for use in manufacturing processes, Degumming preparations, Dehydrating preparations for industrial purposes, Detergent additives to petrol (gasoline), Detergents for use in manufacturing processes, Dextrine size, Diagnostic preparations, other than for medical or veterinary purposes, Diastase for industrial purposes, Diatomaceous earth, Diazo paper, Dioxide of hydrogen, Disincrustants, Dispersions of plastics, Distilled water, Dolomite for industrial purposes, Dressing and finishing preparations for textiles, Dressing, except oils, for skins, Drilling muds, Dry ice (carbon dioxide), Dysprosium, Earth for growing, Emollients for industrial purposes, Emulsifiers, Enamel-staining chemicals, Engine-decarbonising chemicals, Enzyme preparations for industrial purposes, Enzymes for industrial purposes, Epoxy resins, unprocessed, Erbium, Ethane, Ethyl alcohol, Ethyl ether, Europium, Fat-bleaching chemicals, Fatty acids, Ferments for chemical purposes, Fermium, Ferrocyanides, Ferrotype plates (photography), Fertilizing preparations, Filtering materials (chemical preparations), Filtering materials (mineral substances), Filtering materials (unprocessed plastics), Filtering materials (vegetable substances), Filtering preparations for the beverages industry, Finishing preparations for use in the manufacture of steel, Fireproofing • Continue next page


preparations, Fissionable chemical elements, Fissionable material for nuclear energy, Fixing baths (photography), Fixing solutions (photography), Flashlight preparations, Flocculants, Flour for industrial purposes, Flower preservatives, Flowers of sulphur for chemical purposes, Fluids for hydraulic circuits, Fluorine, Fluorspar compounds, Formic acid, Formic aldehyde for chemical purposes, Foundry molding (moulding)preparations, Foundry sand, Francium, Fuel for atomic piles, Fuel-saving preparations, Fuller’s earth for use in textile industry, Fulling preparations, Fulling preparations for use in textile industry, Gadolinium, Gallic acid for the manufacture of ink, Gallium, Gallnuts,Gallotannic acid, Galvanizing baths, Galvanizing preparations, Gambier, Gas propellents for aerosols, Gas purifying preparations, Gelatine for industrial purposes, Gelatine for photographic purposes, Getters (chemically active substances), Glass-frosting chemicals, Glass-staining chemicals, Glucose for industrial purposes, Glucosides, Glue for industrial purposes, Gluten (glue), other than for stationery or household purposes, Glutinous tree-banding preparations, Glutinous tree-grafting preparations, Glycerides, Glycerine for industrial purposes, Glycol, Glycol ether, Gold salts, Grafting mastic for trees, Grafting wax for trees, Graphite for industrial purposes, Grease-removing preparations for use in manufacturing processes, Guano, Gum arabic for industrial purposes, Gum solvents, Gums (adhesives)other than for stationery or household purposes, Heavy water, Holmium, Hormones for hastening the ripening of fruit, Horticulture chemicals, except fungicides, herbicides, insecticides and parasiticides, Humus, Humus top dressing, Hydrates, Hydrazine, Hydrochlorates, Hydrochloric acid, Hydrofluoric acid, Hydrogen, Hydrogen peroxide, Hypochlorite of soda, Hyposulphites, Industrial chemicals, Iodic acid, Iodine for chemical purposes, Iodine for industrial purposes, Iodised albumen, Iodised salts, Ion exchangers (chemical preparations), I ron salts, Isinglass other than for stationery, household or alimentary purposes, Isotopes for industrial purposes, Kainite, Kaolin, Ketones, Kieselgur, Krypton, Lactic acid, Lamp black for industrial purposes, Lanthanum, Lead acetate, Lead arsenate, Lead oxide, Leather glues, Leather-dressing chemicals, Leather-impregnating chemicals, Leather-renovating chemicals, Leather-waterproofing chemicals, Lecithin (raw material), Lime acetate, Lime carbonate, Lime chloride, Limestone hardening substances, Liquid rubber, Liquids for removing sulphates from accumulators, Liquids for removing sulphates from batteries, Lithia (lithium oxide), Lithium, Litmus paper, Loam, Lutetium (cassiopium), Magnesite, Magnesium carbonate, Magnesium chloride, Magnetic fluid for industrial purposes, Malt albumen, Manganate, Manganese dioxide, Mangrove bark for industrial purposes, Manure for agriculture, Masonry preservatives, except paints and oils, Mastic for leather, Mastic for tires (tyres), Meat tenderizers for industrial purposes, Mercuric oxide, Mercury, Mercury salts, Metal annealing preparations, Metal earths, Metal hardening preparations, Metal tempering preparations, Metalloids, Methane, Methyl benzene, Methyl benzol, Methyl ether, Milk ferments for chemical purposes, Mineral acids, Moderating materials for nuclear reactors, Moistening (wetting)preparations for use in bleaching, Moistening (wetting)preparations for use in dyeing, Moistening (wetting)preparations for use in the textile industry, Mold-release preparations, Mordants for metals, Mouldrelease preparations, Must-fining preparations, Naphthalene, Neodymium, Neon, Neptunium, Nitrate of uranium, Nitrate paper, Nitrates, Nitric acid, Nitric monoxide, Nitrogen, Nitrogenous fertilisers, Nitrogenous lime (manure), Nitrous oxide, Oenological bactericides (chemical preparations used in wine making), Oil dispersants, Oil-bleaching chemicals, Oil-purifying chemicals, Oils for currying leather, Oils for preparing leather in the course of manufacture, Oils for tanning leather, Oils for the preservation of food, Oil-separating chemicals, Oleic acid, Olivine (chemical preparations), Opacifiers for enamel or glass, Organic-bleaching chemicals, Oxalates, Oxalic acid, Oxygen, Palladious chlorides, Paper pulp, Peat (fertiliser), Peat pots for horticulture, Pectin (photography), Perborate of soda, Percarbonates, Perchlorates,

Persulphates, Persulphuric acid, Petroleum dispersants, Phenol for industrial purposes, Phosphates (fertilisers), Phosphatides, Phosphoric acid, Phosphorus, Photographic developers, Photographic emulsions, Photographic paper, Photographic sensitizers, photographic sensitizers, gelatine for photographic purpos sensitized photographicplates; Potash, Potash water, Potassium, Potassium dioxalate, Potato flour for industrial purposes, Potting soil, Power steering fluid, Praseodymium, Preservatives for pharmaceutical preparations, Preservatives for tiles, except paints and oils, Priming putty, Protactinium, Protective gases for welding, Protein (raw material), Prussiates , Purification preparations, Pyrogallic acid, Pyroligneous acid (wood vinegar), Quebracho for industrial purposes, Radiator flushing chemicals, Radioactive elements for scientific purposes, Radium for scientific purposes, Radon, Rare earths, Reducing agents for use in photography, Refrigerants, Refrigerating preparations, Renovating preparations for phonograph records, Rhenium, Rock salt, Roentgen films, sensitized but not exposed, Rubber preservatives, Rubber solutions, Rubidium, Saccharin, Sal ammoniac, Sal ammoniac spirits, Salicylic acid, Salpetre, Salt for preserving, other than for foodstuffs, Salt, raw, Saltpeter, Salts (chemical preparations), Salts (fertilisers), Salts for coloring (colouring) metal, Salts for galvanic cells, Salts for industrial purposes, Salts from rare earth metals, Salts of alkaline metals, Salts of precious metals for industrial purposes, Samarium, Sauce for preparing tobacco, Scale removing preparations, other than for household purposes, Scandium, Sea water (for industrial purposes), Seaweeds (fertilizers), Sebacic acid, Seed preserving substances, Selenium, Self-toning paper (photography), Sensitized cloth for photography, Sensitized films, unexposed, Sensitized paper, Sensitized photographic plates, Sensitized plates for offset printing, Separating and unsticking (ungluing)preparations, Silicates, Silicon, Silicones, Silver nitrate, Silver salt solutions for silvering, Size for finishing and priming, Sizing preparations, Slag (fertilisers), Soap (metallic) for industrial purposes, Soda ash, Sodium, Sodium salts (chemical preparations), Soil-conditioning chemicals, Soldering chemicals, Soldering fluxes, Solidified gases for industrial purposes, Solvents for varnishes, Soot for industrial or agricultural purposes, Sorrel salt, Spinel (chemical preparations), Spirits of salt, Spirits of vinegar (dilute acetic acid), Stain-preventing chemicals for use on fabrics, Starch for industrial purposes, Starch paste (adhesive), other than for stationery or household purposes, Starch size (chemical preparations), Starchliquifying chemicals (ungluing agents), Stearic acid, Strontium, Substrates for soil-free growing (agriculture), Sulphates, Sulphides, Sulphonic acids, Sulphur, Sulphuric acid, Sulphuric ether, Sulphurous acid, Sumac for use in tanning, Superphosphates (fertilisers), Surface-active chemical agents, Synthetic resins, unprocessed, Talc (magnesium silicate), Tan, Tannic acid, Tannin, Tanning substances, Tan-wood, Tapioca flour for industrial purposes, Tartar other than for pharmaceutical purposes, Tartaric acid, Technetium, Tellurium, Tensio-active agents, Terbium, Test paper, chemical, Tetrachlorides, Textile-brightening chemicals, Textile-impregnating chemicals, Textile-waterproofing chemicals, Thallium, Thiocarbanilide, Thorium, Thulium, Tire repairing compositions, Titanite, Titanium dioxide for industrial purposes, Toluene, Toluol, Toning baths (photography), Toning salts (photography), Toxic gas neutralizers, Tragacanth gum for use in manufactures, Transmission fluid, Tree cavity fillers (forestry), Tungstic acid, Tyre repairing compositions, Ungluing agents (chemical preparations for liquifying starch), Ungluing preparations, Unsticking and separating preparations, Uranium, Uranium oxide, Vine disease preventing chemicals, Vinic alcohol, Viscose, Vitriol, Volatile alkali (ammonia) for industrial purposes, Vulcanisation accelerators, Vulcanising preparations, Wax-bleaching chemicals, Welding chemicals, Wetting preparations for use in bleaching, Wetting preparations for use in dyeing, Wetting preparations for use in the textile industry, Wine finings, Witherite, Wood alcohol, Wood pulp, Wood vinegar (pyroligneous acid), • Continue next page


Xenon, X-ray films, sensitized but not exposed, Ytterbium, Yttrium, Zirconia and in International Class 12 upon or in connection with the following goods: Vehicles, apparatus for locomotion by land, air or water, Aerial conveyors, Aeronautical apparatus, machines and appliances, Aeroplanes, Air bags (safety devices for automobiles), Air balloons, Air vehicles, Aircraft, Airships, Ambulances, Amphibious airplanes, Anti-dazzle devices for vehicles , Anti-glare devices for vehicles, Anti-skid chains, Anti-theft alarms for vehicles, Anti-theft devices for vehicles, Automobile bodies, Automobile chains, Automobile chassis, Automobile hoods, Automobile tires (tyres), Automobiles, Axles for vehicles, Bands for wheel hubs, Baskets adapted for cycles, Bells for bicycles, cycles, Bicycle brakes, Bicycle chains, Bicycle frames, Bicycle handle bars, Bicycle pumps, Bicycle rims, Bicycle saddles, Bicycle spokes, Bicycle stands, Bicycle tires, (tyres), Bicycles, Boat hooks, Boats, Bodies for vehicles, Bogies for railway cars, Brake linings for vehicles, Brake segments for vehicles, Brake shoes for vehicles, Brakes for bicycles, cycles, Brakes for vehicles, Buffers for railway rolling stock, Bumpers for automobiles, Cable cars, Cable transport apparatus and installations, Caissons (vehicles), Camping cars, Caps for vehicle petrol (gas)tanks, Caravans, Carriages (railways), Carrier tricycles, Cars, Cars for cable transport installations, Carts, Casings for pneumatic tires (tyres), Casters for trolleys (vehicles)(carts (Am.), Casting cars, Chairlifts, Cleaning trolleys, Concrete mixing vehicles, Couplings for land vehicles, Covers for baby carriages, Covers for vehicle steering wheels, Crankcases for land vehicle components, other than for engines, Cranks for cycles, Cycle bells, Cycle brakes, Cycle cars, Cycle chains, Cycle frames, Cycle handle bars, Cycle hubs, Cycle mudguards, Cycle pumps, Cycle rims, Cycle saddles, Cycle spokes, Cycle stands, Cycle tires (tyres), Cycles, Davits for boats, Delivery tricycles, Dining cars, Dining cars (carriages), Dinner wagons (carriages), Direction indicators for bicycles, Direction signals for vehicles, Dirigible balloons (airships), Disengaging gear for boats, Doors for vehicles, Dredgers (boats), Dress guards for bicycles, cycles, Driving chains or land vehicles, Driving motors for land vehicles, Ejector seats for aircraft, Electric vehicles, Elevating tailgates (parts of land vehicles), Engines for land vehicles, Fenders for ships, Ferry boats, Flanges for railway wheel tires (tyres), Fork lift trucks, Frames for bicycles, cycles, Freewheels for land vehicles, Funiculars, Funnels for locomotives, Funnels for ships, Gear boxes for land vehicles, Gearing for land vehicles, Gears for cycles, Golf carts, Hand cars, Handle bars for bicycles, cycles, Handling carts, Headlight wipers, Head-rests for vehicle seats, Hoods for baby carriages, Hoods for vehicle engines, Hoods for vehicles, Horns for vehicles, Hose carts, Hub caps, Hubs for vehicle wheels, Hydraulic circuits for vehicles, Hydroplanes, Inclined ways for boats, Inner tubes for bicycles, cycles, Inner tubes for pneumatic tires (tyres), Jet engines for land vehicles, Kick sledges, Ladle carriages, Ladle cars, Launches, Lifting cars (lift cars), Locomotives, Lorries, Luggage carriers for vehicles, Luggage nets for vehicles, Luggage trucks, Masts for boats, Military vehicles for transport, Mine cart wheels, Mopeds, Motor buses, Motor cars,

Motor coaches, Motor homes, Motorcycles, Motors, electric, for land vehicles, Motors for cycles, Motors for land vehicles, Mudguards, Non-skid devices for vehicle tires (tyres), Non-electric prime movers for land vehicles (notincluding “their parts”), Oars, Omnibuses, Paddles for canoes, Panniers adapted for cycles, Pedals for cycles, Pneumatic tires (tyres), Pontoons, Portholes, Power tailgates (parts of land vehicles), Prams (baby carriages), Propulsion mechanisms for land vehicles, Pumps for bicycles, cycles, Pushchair covers, Pushchair hoods, Pushchairs, Railway couplings, Rearview mirrors, Reduction gears for land vehicles, Remote control vehicles, other than toys, Repair outfits for inner tubes, Reversing alarms for vehicles, Rickshaws, Rims for vehicle wheels, Rims for wheels of bicycles, cycles, Rolling stock for funicular railways, Rolling stock for railways, Rowlocks, Rudders, Sack-barrows, Saddle covers for bicycles or motorcycles, Saddles for bicycles, cycles or motorcycles, Safety belts for vehicle seats, Safety seats for children, for vehicles, Scooters (vehicles), Screw-propellers, Screw-propellers for boats, Screws (propellers)for ships, Sculls, Seaplanes, Seat covers for vehicles, Security harness for vehicle seats, Ships, Ships’ hulls, Ships’ steering gears, Shock absorbers for automobiles, Shock absorbing springs for vehicles, Shopping trolleys (carts (Am.), Side cars, Ski lifts, Sleeping berths for vehicles, Sleeping cars, Sleighs (vehicles), Sleighs and sleds (Vehicles), Snowmobiles, Space vehicles, Spare tire covers, Spare tyre covers, Spare wheel covers, Spars for ships, Spikes for tires (tyres), Spoilers for, vehicles, Spoke clips for wheels, Spokes for bicycles, cycles, Sports cars, Sprinkling trucks, Stands for bicycles, cycles (parts of bicycles, cycles), Steering gears for ships, Steering wheels for vehicles, Stern oars, Stroller covers (pushchairs), Strollers, Studs for tires (tyres), Sun-blinds adapted for automobiles, Suspension shock absorbers for vehicles, Tailboard lifts (parts of land vehicles), Telpher railways (cable cars), Tilt trucks, Tilting-carts, Timbers (frames)for ships, Tipping apparatus, parts of trucks and waggons, Tipping bodies for lorries (trucks), Tires for bicycles, cycles, Tires for vehicle wheels, Tires, solid, for vehicle wheels, Torque converters for land vehicles, Torsion bars for vehicles, Traction engines, Tractors, Traction engine, Trailers (vehicles), Tramcars, Transmission chains for land vehicles, Transmission shafts for land vehicles, Transmissions, for land vehicles, Treads for retreading tires (tyres), Treads for vehicles (roller belts), Treads for vehicles (tractor type), Tricycles, Trucks, Tubeless tires (tyres) for bicycles, cycles, Turbines for land vehicles, Turn signals for vehicles, Two-wheeled trolleys, Tyres for vehicle wheels, Tyres, solid, for vehicle wheels, Undercarriages for vehicles, Unloading tipplers (for tilting railway freight cars), Valves for vehicle tires (tyres), Vans (vehicles), Vehicle bumpers, Vehicle chassis, Vehicle covers (shaped), Vehicle running boards, Vehicle seats, Vehicle suspension springs, Vehicle wheel rims, Vehicle wheel spokes, Vehicle wheel tires (tyres), Vehicle wheels, Vehicles for locomotion by land, air, water or rail, Waggons, Water vehicles SONY CORPORATION claims all rights in respect to the above trademark and will take all necessary legal steps against any person, firm or corporation counterfeiting, imitating, violating or otherwise infringing its rights in the Marshall Islands and Niue.

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


TRADE MARK CAUTIONARY NOTICE MICRONESIA MARSHALL ISLANDS, PALAU Notice is hereby given that TOTO LTD. of No. 1-1, Nakashima 2-chome, Kokurakita-ku, Kitakyushu-shi, Japan is the sole proprietor in Micronesia, Marshall Islands, Palau and elsewhere of the following trade mark:

Used in respect of:

TOTO

Class 6: Building materials of metal; boards of metal; tiles of metal; floor tiles of metal; frameworks of metal for buildings; claddings of metal; floors of metal; ceilings of metal; doors of metal; windows and window frames of metal for buildings; staircases of metal; roofings of metal; roof coverings of metal; gates of metal; fences of metal; shutters of metal; guard rails of metal; signs, non-luminous and non-mechanical, of metal; screens of metal; outdoor blinds of metal; tombs of metal; transportable buildings of metal; panels of metal; signboards of metal; containers of metal [storage, transport]; soundproof walls of metal; towel bars of metal; hooks made of metal; hand rails of metal; towel dispensers, fixed, of metal; washers of metal; drain pipes of metal; water pipes of metal; pipes of metal; pipe muffs of metal; junctions of metal for pipes; pipe holders made of metal; metallic drain traps; pipe work of metal; manifolds of metal for pipeline. Class 11: Water closets; toilet stool units; toilet bowls; bidets; toilet stool units with a washing warm water squirter; toilet seats; toilet seats with washing warm water squirter; portable bidets; sound generating devices used for toilet; parts of water closet tanks; urinals [sanitary fixtures]; flush valves; automatically flushing apparatus for toilets activated by a sensor; wash-hand bowls [parts of sanitary installations]; automatic wash-hand bowls [parts of sanitary installations]; wash basins; faucets; automatic faucets; aerators, namely anti-splash tap nozzles; water-supply pipes for sanitary installations; valves for sanitary installations; water purifying apparatus; water treatment tanks for household purposes; prefabricated bathrooms; shower booths, namely shower cubicles; bathtubs; showers; shower stands; shower tubs; shower pans; kitchen sinks; cooking apparatus and installations; extractor hoods for kitchens; counters [tables]; lavatory counters; toilet counters; kitchen counters; gas burners; solar water heaters; gas water heaters; heating boilers; drying apparatus; heating apparatus; air conditioners; stoves; electric apparatus installed in a bathroom for heating, drying and ventilating; electric hot air hand dryers for washrooms; scrub sinks; automatic toilet seat paper dispensers; Lamps and HID lamps. Class 20: Washstands; dressing tables; mirrors [looking glasses]; shampoo dresser [furniture]; furniture; bathroom furniture; sideboards for kitchen including sink but not gas burners; benches; baby seats [furniture]; baby chair [furniture]; towel bars, not of metal; hooks, not of metal; bolts, not of metal; drains traps of plastic; towel dispensers, fixed, not of metal; water-pipe valves of plastic; cushions; pillows; beds; bedding, except linen. Class 21: Toilet paper holders; toilet paper dispensers; holders of paper for toilet seat; boxes of metal, for dispensing paper towels; soap holders and boxes; soap dispensers; toilet cases; towel rails and rings; towel holders; hand rails, not of metal; dust bins; chamber pots; water apparatus for cleaning teeth and gums; cleaning instruments [hand operated]; baby baths [portable]; cloth for cleaning; cloths impregnated with anti-tarnishing chemicals for vehicle windows. The proprietor claims all rights in respect of the above trade mark and will take all necessary legal steps against any person or company infringing their said rights. DAVIES COLLISON CAVE 1 Nicholson Street, Melbourne VIC 3000, Australia Telephone: 61 3 9254 2777; Facsimile 61 3 9254 2770 E-mail: chrvoj@davies.com.au DCC Ref: 31108073


Politics

vanuatu

Dual citizenship—just a money spinner? Govt hopes to raise over US$98m By Tony Wilson* The creation of dual citizenship in Vanuatu through constitutional change has created two fiercely opposing camps in a debate that refuses to die. In one corner are the purists, led by senior government minister Ralph Regenvanu, who has championed the change in order to enable the descendants from the infamous blackbirders’ era to gain Vanuatu citizenship for the first time. Blackbirding was the coercion through trickery and (http://en.wikipedia.org/wiki/Kidnapping) kidnapping of people to work as labourers away from their homes. From the 1860s, blackbirding ships in the Pacific took workers to mine guano deposits on Chincha Islands in Peru. In the 1870s, the blackbirding trade focused on supplying labourers to plantations, particularly the sugar cane plantations of Queensland and Fiji. The first documented practice of blackbirding for sugar cane labourers occurred between 1842 and continued until 1904. It is believed that between 55,000 and 62,500 people were taken from this homeland during this insidious era. Many of these people never returned to their original homes. The other noble aspect to this historic constitutional change was that it also paved the way for dual citizenship for the French or Francophone indigenous people who fled Vanuatu’s shores in some numbers around the time of independence 33 years ago. Now living in New Caledonia since the republic was born, these people have had no rights to the land of their birth, until now. So December’s constitutional change allowing these groups dual citizenship, and therefore proper access to the land of their birth or their heritage, has been universally supported in Vanuatu. But mention dual citizenship and the government making money and the whole complexion changes dramatically, with opposition MPs claiming that making money was the real and sole reason for the constitutional alterations. The outcry relates to two programmes—one a few years old and one in its infancy, where the figures are still up for debate. Firstly, there is the Vanuatu Permanent Resident (PR) Visa Programme which began in Hong Kong in 2011. This programme has seen more than 700 people, mainly of Asian origin, pay around VT300,000 for a residency visa or a ‘non citizen identity card’. This is operated by a Hong Kong company with the Vanuatu Government sharing the profits—thought to be around VT214 million. It is aimed virtually exclusively at Chinese businessmen desperate to gain entry to Hong Kong to do business, who, to qualify must have

Ralph Regenvanu…championing the dual citizenship cause. Photo: Tony Wilson

“It is a clever, legal, money-making venture that is not harming anyone,’’ said a senior government MP who did not want to be named. citizenship other than just Chinese. Loud detractors, particularly from the Opposition benches in parliament, claimed this programme was illegal under Vanuatu law and was basically a scam that would see a massive influx of Chinese migrants. The Vanuatu Government has been able to prove it is operating legally and so far not a single migrant using the visa from this scheme has entered Vanuatu. “It is a clever, legal, money-making venture that is not harming anyone,’’ said a senior government MP, who did not want to be named. “It is ironical that many of those in the opposition ranks making the most noise about it now were part of the government when it was

established. “If there is any real criticism of the government in this matter, it is probably that they do not have a large enough slice of this lucrative pie.’’ The second programme under fire is the Capital Investment Immigration Plan (CIIP) under which foreigners can buy Vanuatu citizenship, but they won’t be allowed to own land, vote or run for public office. The government quite rightly points out these types of programmes are common in countries such as England, USA, Canada, Australia and New Zealand, and Vanuatu is merely coming online with the rest of the world. Senior Vanuatu Opposition MP Willy Jimmy said the CIIP plan goes against the wishes of the founding fathers. He said a citizenship application will cost US$310,000 but government insiders told Islands Business that this figure is not cast in stone and Prime Minister Moana Carcasses is keen to see a figure of around US$500,000 per application. Jimmy told the media that the new scheme is about raising massive funds for the government. “That’s the basic reason that the taskforce was set up by the government,” he said. “They think that the government can make a lot of revenue through the scheme of dual citizenship and selling passports.” Vanuatu’s Lands Minister Regenvanu said this is only part of the change and he highlighted the benefits to the blackbirder descendants and the ni-Vanuatu living in New Caledonia. “We see this as a very positive move to enhance our citizens’ rights and privileges and give them the normal rights you would expect coming from a country, that you don’t actually have to lose your citizenship or lose the citizenship you already have, simply to regain a national identity in Vanuatu,” he said. Details are just beginning to emerge about CIIP, which will also be based in Hong Kong and managed by a statutory body under the Finance Ministry. It is aiming at earning US$98.5 million from the first 500 applicants. Programme manager John Stephens Tougon said they are aiming at earning US$98.5 million for the first 500 applicants. He said each applicant will pay US$300,000 initially with US$260,000 being invested on their behalf for seven years, with US$40,000 going to costs. He said the first 500 applicants can waive 50 percent of their investment and pay it straight to the government, thus gaining their passport within weeks instead of three years. “If we manage to get 500 applicants going through a quick mode, which is allowed by law, then we should be hitting about VT9.5 billion for the government,’’ he said. “It’s a revenue initiative—the government is putting all its hopes and trust in the CIIP so we’ve said OK if that’s what you want, we could try a fast-track mode and a normal mode, so it’s up to the person to decide.” Obviously, this new class of citizen is likely to be seen fairly soon in Vanuatu, but Regenvanu said successful applicants will not be allowed to own land, vote or run for public office, and unlike ni-Vanuatu and naturalised citizens, their rights can be altered through legislation. • Tony Wilson is the Editor, Vanuatu Independent. Islands Business, March 2014 27


Politics

New benchmarks for Australian aid Bishop announces ODA cuts and reviews By Nic Maclellan As Australian Foreign Minister Julie Bishop joined members of the Pacific Islands Forum Ministerial Contact Group (MCG) in Suva last month, she highlighted Australia’s new policies for the region, including normalisation of relations with the Bainimarama regime. In recent years, Fiji has built new partnerships with China and other developing nations, but Bishop stated: “I want Australia to be the partner of choice in the Pacific and there is an opportunity with our new government to start afresh.” Australia’s partnership with the islands region, however, is being affected by significant changes to the Official Development Assistance (ODA) programme. The Australian government, led by Prime Minister Tony Abbott, has announced major cuts to this year’s aid budget, with the islands region losing more than A$60 million in pledged aid in 2013-14. With a new emphasis on the Australian “national interest”, countries of strategic importance like Papua New Guinea, Fiji and Nauru are largely exempted from the cuts, while smaller islands states lose millions of dollars. In recent years, Australia’s aid programme has been growing, and growing fast. Before the September 2013 elections, both the Australian Labor Party (ALP) and the Liberal Party and the National Party coalition had pledged bipartisan support for an increase in Australian aid to 0.5 percent of Gross National Income by 2015 (some A$8 billion). That objective started slipping under the previous Gillard government, with the target date set back to 2016-17. As well as reopening detention centres for asylum seekers on Manus and Nauru under the so-called “PNG Solution”, the ALP government reallocated A$375 million from the overseas aid budget towards the domestic costs of processing refugees in Australia. Since coming to power, the Abbott government has abandoned the objective of increasing the aid budget to 0.5 percent of GNI in coming years, pledging only to maintain the current level of funding. Bishop says: “What I have done is stabilised the budget at A$5 billion per annum. It will increase in line with inflation, so it will go up by CPI [Consumer Price Index]. This will provide certainty, predictability of funding for our partners, for the recipients and will put the aid budget on sustainable financial footing.” The government has also commenced reviews of the aid programme to Papua New Guinea, relations with Fiji and the benchmarks used to measure the effective use of aid dollars. Facing significant budgetary pressures, the Abbott government has confirmed cuts to the 28 Islands Business, March 2014

2013-14 development assistance budget issued in May last year by the previous Labor government, even though funds for many projects are already committed. On January 18, Bishop announced A$650 million of cuts to the global ODA programme, to be implemented before July this year. Cuts hit small islands states While the burden of these cuts has fallen on programmes in Africa, Latin America and global institutions, no region has been spared. Bishop has stated that “when it comes to our direct aid support, the focus must be on our region.” However, the 2013-14 budget for the Pacific islands region has been cut from A$943.7 million to A$882.2 million. Specific cuts are being made to regional programmes, bilateral programmes with Forum Islands Countries and support for multilateral organisations. This financial year, funding will be reduced for areas that benefit Pacific nations such as humanitarian and disaster response and global environment programes. Julia Gillard’s flagship “Pacific Women Shaping Pacific Development Initiative” is being maintained by the new government, with Natasha Stott-Despoja appointed as Australia’s new Ambassador for Women and Girls. However, some planned gender activities will be deferred into later years of the initiative. Cuts to the aid budget fall heavily on Pacific small islands states that have limited opportunities for trade and foreign investment. With tens of millions of dollars to be cut, a number of Pacific states will see the deferral or abandonment of programmes (although as we go to press, the final details are still under negotiation). Small islands states saw their allocation cut by almost 30 percent relative to the original 2013-14 budget (16 percent compared to the funds actually expended in 2012-13). Solomon Islands’ bilateral programme has lost A$12.3 million; Vanuatu fell by A$6.2 million; Samoa A$3.6 million, Tonga A$2.7 million and Kiribati A$2 million. Other small islands states combined were reduced from A$18.5 million to A$14.9 million, while A$20 million was cut from Pacific regional programmes, reduced from A$196 million to A$172.6 million. ALP foreign affairs shadow minister Tanya Plibersek accompanied Bishop on her December 2013 tour of Solomon Islands, Vanuatu and Nauru. Plibersek argues that the Foreign Minister has not been upfront about the looming aid cuts. “Every time it was raised, she reassured them… that there would be no cuts in our region. She said their aid budgets were safe,” Plibersek told Radio Australia last month. “I’m really quite shocked to see, in particular, the cut to the Solomon Islands. When we were

in the Solomon Islands, the Foreign Minister was quite clear she would protect funding in the Pacific region. She has clearly broken that commitment to those governments.” Overall, Papua New Guinea has maintained its allocation in real terms, while funding to Fiji increased slightly, compared to 2012-13. With Fiji’s elections scheduled for September and the Forum Ministerial Contact Group revitalising regional relations with the Bainimarama regime, Australia will continue to allocate resources that support Fiji in the crucial period. The Abbott government has begun a review of the entire development assistance programme to Papua New Guinea, worth A$520 million a year, looking at priorities for future engagement. Bishop visited Papua New Guinea in early February, and in a speech to the Lae Chamber of Commerce she said: “It’s my view that the relationship between Australia and Papua New Guinea has tended to be dominated by aid, on overseas development assistance. I think it’s time that we looked anew at our relationship and see it as an economic partnership.” Australia and Papua New Guinea are currently negotiating an Economic Co-operation Agreement and with A$19 billion already invested in Papua New Guinea, Bishop stressed the importance of trade and infrastructure links, especially in PNG’s booming LNG industry. During her stopover in Port Moresby, she added: “It’s time for Australia to move away from basic service delivery, for that must be the responsibility of the PNG Government… Economic growth and job opportunities have to be the outcomes that we are seeking. We are moving away from direct service delivery through our aid programme.” Nauru still gets funds Apart from Fiji, the only other country exempted from the cuts was Nauru, where Australia has established detention centres for the offshore processing of asylum seekers. There is no reduction to Nauru’s A$20.7 million aid allocation in 2013-14. Nauru is also benefitting from inputs to the economy through Australian funding to companies like Transfield, which has contracts worth hundreds of millions of dollars to manage and operate the centres.


australia

Part of the Ministerial Contact Group... in Fiji last month. Left: Tuvalu foreign minister Taukelina Finikaso and his Vanuatu counterpart Edward Natapei.

Photo: Fiji’s Ministry of Information

On January, 29, Transfield told the Australian Stock Exchange that its existing A$175 million contract with the Australian Department of Immigration and Border Protection would be expanded “on an interim basis”, with the company negotiating contracts “for garrison support services and welfare at both Manus Island and Nauru” (The previous A$75 million contract to the Salvation Army for welfare services has not been extended after February). Both Australia and New Zealand are maintaining their aid funding to Nauru even as the three countries have been trying to manage a crisis over judicial independence. New Zealand Foreign Minister Murray McCully has agreed to continue NZ funding of Nauru’s judiciary, despite the recent sacking of a magistrate and the denial of a visa to Nauru’s non-resident Chief Justice Geoffrey Eames. In February, the Australian Human Rights Commission (AHRC) announced a review of the status of children in detention, but AHRC chair Professor Gillian Triggs has been advised that the commission has no legal jurisdiction over children detained in Nauru and she cannot travel to the island in an official capacity. Two weeks later, Australian Immigration Minister Scott Morrison approved the transfer of 10 unaccompanied children to the camps on Nauru, naming Justice Minister David Adeang as their official guardian. In a measure that has been widely criticised by media organisations, Nauru has also increased the cost of a journalist visa to A$8000, which will limit the number of media representatives able to travel to the island. During the Howard years, the aid program for Nauru was marked by an unprecedented lack of transparency (in both 2006-07 and 2007-08, the amount of additional development assistance allocated to Nauru was marked “not for publication” in the official budget papers). Canberra has a tradition of lecturing Pacific governments about good governance, accountability and the rule of law, but the ongoing chaos in the Nauruan refugee programme continues to undercut efforts for effective and accountable use of aid dollars. Foreign Affairs takes over In spite of these challenges, the new catch cry

is about the quality, not quantity, of aid. In her opening address to the Australasian Aid and International Development Policy workshop on February 14, Bishop stressed there would be a new focus on infrastructure, working with the private sector and creating the conditions for economic growth. She said that “Aid for Trade will be fundamental to our policy approach.” Noting that “aid is a powerful tool in our statecraft”, Bishop said: “We are refocusing our efforts, placing our aid programme more clearly in the context of Australia’s national interest. And that is why the aid program is now part of the Department of Foreign Affairs and Trade (DFAT). We have integrated the separate aid agency—AusAID —into the Department of Foreign Affairs and Trade. We have created a single department with responsibility for advancing Australia’s interest in diplomatic, trade and development context.” While Canada and New Zealand have undergone the same integration, development experts are concerned that the merger of AusAID into DFAT at a time of budget cuts has created a “perfect storm” that will disrupt effective delivery of aid in the short term. Robin Davies is the Assistant Director of the Development Policy Centre at the Australian National University (ANU) and a former head of AusAID’s international programmes and partnerships division. “The reintegration of DFAT and AusAID is an important process, but what is happening in Australia is different to what happened in New Zealand,” Davies told Islands Business. “There are three elements all happening simultaneously: the integration, the sudden mid-year cuts to the budget and the government’s determination to reduce staffing,” he said. “Doing this all at once is contributing to temporary chaos in aid administration.” In recent years, Australia has decentralised many development activities to its high commissions and embassies, but locally hired staff now face an anxious wait as discussions continue over DFAT staffing levels, to be finalised for the May 2014 budget. As DFAT takes over the aid programme, the government is reviewing benchmarks for effective delivery of aid and also looking at individual country programmes. Senator Brett Mason, Parliamentary Secretary to the Minister for Foreign Affairs, said: ‘The Government is committed to introducing performance benchmarks to improve the accountability of the aid program, link performance with funding, and ensure a stronger focus on results and alleviating poverty in the region.” Non-government groups have welcomed these reviews. Marc Purcell, executive director of the Australian Council for International Development (ACFID), told Islands Business “this review of the aid programme to Papua New Guinea is timely, due to the effective doubling of aid in recent years. There is a need for better targeting and effectiveness.” Funding reduced for environment and disasters In their submission to the benchmark review, ACFID stated: “If not appropriately targetted, benchmarks can reduce innovative approaches, stifle debate, and lead to over compliance and red tape. Benchmarks can also result in agencies only

seeking to invest in those activities that can be easily measured (e.g. vaccinations), as opposed to programmes that drive more transformational change (e.g. women’s leadership).” As the new government moves to implement a “direct action” climate policy in Australia—seeking to roll back the ALP government’s carbon tax—there have been significant cuts to international environment funding. This will not be welcome in the region, given the importance of adaptation funding for small islands states that are seeking to deal with the adverse effects of climate change. In opposition, Bishop was critical that Australia’s International Climate Change Adaptation Initiative (ICCAI) was included in the aid budget, providing the funds for Australia’s international climate financing obligations. In the latest budget revisions, the government has removed all funding for global environment programs, even as international health and education programmes have expanded. In 2012-13, Global Environment Programmes received A$74.6 million in the aid budget. The original budget for 2013-14 was just A$1.5 million and now even that amount has been reduced to zero in the revised budget! Robin Davies of the Development Policy Centre, told Islands Business: “I don’t think their position is likely to hold on cuts to climate change adaptation, which is a legitimate call on the aid budget. Small Asia-Pacific states will continue to state that this is a priority, so adaptation funding will come back onto the table at bilateral level.” As countries move towards negotiation of a global climate treaty in 2015, Davies says: “It will be very difficult for Australia to be the only OECD country not to contribute to the Green Climate Fund, the Adaptation Fund and the World Bank Climate Investment Funds.” Over the last year, Australia has contributed to international efforts to respond to natural disasters like Cyclone Haiyan in the Philippines and Cyclone Ian in Tonga. ] But just as the Ha’apai islands are recovering from cyclone damage, the overall aid budget for Humanitarian, Emergencies and Refugees is cut from A$339.6 million to A$264.2 million. ACFID’s Marc Purcell said: “Reducing the humanitarian contingency fund and the United Nations emergency response fund by A$64 million is at odds with the needs of the region. In the case of another natural disaster, they’ll have to find the money elsewhere.” Purcell said: “Given the increasing risks of disaster, this decision doesn’t seem tenable. There is also an urgent need for the review of funding for community-based disaster risk reduction— especially as the evidence shows that community based climate change adaptation work in the Pacific has been very successful.” The shifting priorities in Australian aid programming come at a time when Pacific governments are restructuring the frameworks for responses to natural disasters and the adverse effects of climate change, creating a new combined strategy called the Strategy for Climate and Resilient Development in the Pacific (SRDP). This new framework for action will succeed the existing two regional frameworks when they expire in 2015 (in that year, there is also supposed to be a new global climate treaty and new “Sustainable Development Goals” to replace the Millennium Development Goals. Islands Business, March 2014 29


Politics favoured candidates. Another is Kaliopate Tavola, the economist and former Fiji foreign minister. The restoration of Fiji was given a massive push by Julie Bishop, Australia’s Foreign Minister, who during her visit to Suva for the MCG, held a breakthrough meeting with Bainimarama, his first with an Australian minister for more than five years, during which mutual hostility grew. The Fiji leader described the meeting, which ran overtime, lasting an hour, as “fruitful”, and Bishop agreed “the atmospherics were warm. He was engaged. He laughed a lot.’” Bishop told him that Canberra is restoring links with Fiji unconditionally across the whole of government, including, crucially, defence ties. She said: “I have long wanted to take a different approach to Fiji. I want us to normalise relations ahead of an election. “I want Australia to be the partner of choice in the Pacific. And there is an opportunity with our new government to start afresh. We had to take the lead.”

Restoring relations…Australia’s foreign minister Julie Bishop and Fiji’s Prime Minister Frank Bainimara in Suva last month. Photo: Fiji’s Ministry of Information

Fiji back from the cold? MCG anticipates Fiji’s full Forum participation By Rowan Callick F iji is coming back in from the cold. Prime Minister Frank Bainimarama’s announcement that he would step down as military commander on February 28, then on March 1 provide details of the new party he would lead at the election in September, accelerated a regional move already under way following the registration of more than half-a-million voters. The Pacific Islands Forum’s Ministerial Contact Group (MCG) with Fiji, which was established when the country was suspended from the Forum following the December 5, 2006 coup, thus held its most positive visit so far to Suva in mid-February. Significant progress The foreign ministers of Australia, Papua New Guinea, Samoa, Tuvalu and Vanuatu, with New Zealand’s Murray McCully as chairman, issued a statement that anticipated “welcoming Fiji’s full participation in the Pacific Islands Forum” after free and fair elections, concluding that the country had made “significant progress” towards 30 Islands Business, March 2014

its return to democracy. The next Forum annual leaders’ summit is taking place unusually early this year, at the end of July in Koror, Palau. The leaders are then likely to agree with a mechanism to lift Fiji’s suspension swiftly after a government is formed in Suva. The return of Fiji is likely to trigger a reassessment of the range of costly regional organisations that have proliferated in recent years, largely because of the Bainimarama government’s fretting at its suspension from mainstream bodies—also including the Commonwealth. The Pacific Islands Development Forum, that Fiji itself principally funded, may fade away. And the Port Vila-based Melanesian Spearhead Group, which has retained Fiji as a full member and which has begun to create a parallel infrastructure to the Forum, is likely to find a more modest operational level. The Forum summit will appoint a new Secretary-General as Tuiloma Neroni Slade’s term expires. Jimmie Rodgers from the Solomon Islands, who recently completed a successful term as Director-General of the Secretariat of the Pacific Community, is one of the most strongly

Key Australian priorities Key among the priorities will be Australian travel sanctions, which banned anyone associated with the military regime from visiting Australia. Bishop said the bans had been ineffective and the policy was under review. Australians have been voting with their feet, holidaying in Fiji in greater numbers than ever, she said—300,000 a year. Bishop told Bainimarama that the past 56 requests for travel ban exemptions had been granted, with just one rejected on technical grounds. “Recently, we have been providing a significant number of exemptions on compassionate, humanitarian and national interest grounds.” Fiji’s Foreign Minister, Ratu Inoke Kubuabola, has come to Australia often and the government’s second most powerful figure, the AttorneyGeneral, Aiyaz Sayed-Khaiyum, was allowed to travel to Australia over Christmas. Bainimarama said he was gratified his son had been allowed to visit Australia to play in a school rugby competition, but he remained unhappy with the principle of the sanctions. Bishop said a review of the policy was almost complete, and the next opportunity to take it to cabinet would be very soon, when he steps down as army chief. Besides support for the election process, the new Australian package will include a twinning arrangement in strategic areas including foreign policy, finance and the Public Service Commission, with Fiji officials working in Canberra, and Australians in Suva. Australia has invited Fiji to send a defence representative to Canberra, and hopes to reinstate its own defence attache in Suva. Fiji will be invited to participate again in Australia’s Pacific Patrol Boat programme, through which its present three boats might be renovated, or it might receive two further vessels. A defence co-operation programme will be re-established to include joint exercises and staff college training. Australia’s seasonal workers’ programme that brings Pacific Islanders to Australia is set to be expanded to include Fiji, and Fiji is invited to be involved from next year in the New Colombo Plan to take Australian students into the AsiaPacific region.


FIJI Greg Pawson, president of the Australia/Fiji Business Council, said the council “has long supported and advocated to successive Australian governments the need for the governments to come more closely together irrespective of their differences. “Fiji serves as a hub for commerce in the Pacific. The movement of businesspeople between Fiji and Australia is the oil which keeps the mechanisms of trade turning, and removing the limitations on that movement will remove an impediment to business.” The MCG said in its statement that “it would be in Fiji’s interest that the election be judged on its openness and fairness according to accepted international standards” with observers assessing its legitimacy, and with access for international media “critically important”. A number of prominent journalists who focus on Pacific islands affairs, including the ABC’s Sean Dorney and Fairfax New Zealand’s Michael Field, have been barred from Fiji. But most other points of contention are now fast being resolved. The MCG met leaders of the four political parties registered so far in Fiji. Bishop said she had expected “a push-back” from them against the restoration of relations with Fiji, both bilaterally and regionally. But instead, “they agreed that it was a good time to build links, there was quite a warm engagement.” Non government organisations, she said, “were far more critical”, listing human rights failings of the government and urging caution until a free and fair election had been held. Bainimarama’s credibility Jon Fraenkel, a professor of comparative politics at New Zealand’s Victoria University, noted that Bainimarama “had gained much credibility within the region through the use of anti-Australian rhetoric, and made this a central plank of his diplomacy. That siege mentality also played an important role at home, particularly among the new elite that cluster around the interim government.” The rapprochement removes that plank. Now, Fraenkel said, Fiji’s return to the regional fold provides a further test—of “the Fiji coup leader’s ability to make the transition from a military strongman to a significant player on the international stage”.

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Islands Business, March 2014


Politics

PM Lilo on a cleanup footing But will he have the time to complete the job? ager, William Barile, who was earlier removed by the board. Gukuna’s problem was that the decision to reAs his NAtio NA N PrePAres for the instate Barile had backfired. From September last national general election later year, Barile was unable to draw a salary because this year, Solomon Islands Prime there was no board to approve the man’s contract. Minister Gordon Darcy Lilo, is a man whose In the meantime, Tokyo was pushing. leadership is under siege. In the first visible action to stamp his authority And he may not have the time to dust off the on his leadership, Prime Minister Lilo moved in rising tempo of criticisms being levelled at his last month to break the five-month impasse. The 25-month old leadership. Much of the criticism CEO was given his marching order while the is about his leadership style, which many say sacked board was reinstated. closely resembles that of former prime But by then, it appears the authorminister, the late Solomon Mamaloni. ity has somewhat been overtaken by Both men share a common leaderanother pressing issue involving two ship trait: giving their ministers a free traditional allies, Australia and the hand for the sake of keeping their job. United States of America. As a result, the public good becomes As part of their post-conflict assisthe victim. tance to Solomon Islands, Washington In the case of Lilo, self-created issues and Canberra have decided to inject just keep piling up. millions of dollars into building a In one case, multi-million dollar regional facility for training Pacific infrastructure projects to be funded by Islands nationals in bomb disposal the Japanese Government were on the techniques and skills. verge of being withdrawn before Prime Their interest is an area called Hell’s Minister Lilo steps in. The two projects Prime Minister Darcy Lilo...leadership under Point, just east of Honiara’s Henderson —one intended to address overcrowdsiege. Photo: File Photo International Airport. Members of ing at Point Cruz wharf—the nation’s the Solomon Islands Royal Solomon largest seaport in the capital—and the Islands Police Force (RSIPF) have been receivother to build an eight-kilometre road linking the ing training there for the last two years. Now, Ranadi Industrial area with Point Cruz. the United States and Australia want to expand It all began when Lilo’s Infrastructure Minthe facility to take in personnel from the region. ister Seth Gukuna with the support of Finance Inquiring about who owns the land, the HoMinister, Rick Hou, jointly signed an instrument niara government on Prime Minister Lilo’s watch for the mass sacking of the entire board of the told the two traditional allies that the government Solomon Islands’ Ports Authority (SIPA). had “resumed” the land from its original owner, Hou, a former governor of the Central Bank Levers Solomon Ltd (LSL). of Solomon Islands, later retracted his support, What followed stunned Canberra and Washciting legal reasons. ington. The High Court of Solomon Islands had The view from the nation’s Attorney-General’s ruled against the government on the resumption Chambers is that the board should be reinstated. process, saying it was not properly done. Gukuna refused. Instead, he reinstated SIPA’s In effect, the decision meant LSL is still the former chief executive officer and general man-

By Alfred Sasako

Islands Business, March 2014

SOLOMON ISLANDS legal owner of the land, not the government. Australia and the United States are fuming Now Washington and Canberra are demanding “a full and complete disclosure” of the truth or their funding commitment to build the facility would be withdrawn. The issue has put the Honiara government on the back foot. Officials are working behind the scene to salvage the situation and to save what has been described as a multi-million dollar project. All this comes on top of yet another debacle for the government this year. Local media reports had it that the government was forced to shave off SB$160 million (about US$26 million) from its Constituency (Electorate) funding in an election year. The shortfall represents 60 percent on last year’s funding. This means that instead of receiving SB$6 million apiece this year, the 50 constituencies will only receive only SB$2.8 million each this year. Since this was reported in the local media, the government has never owned up in confirming the story. Quietly, it said it had to do this in an election year to demonstrate prudence and restraint on public spending. The opposite appears to be true. In the last two years, the government used its executive powers to pull all donor funding from the nation’s Development Budget, giving politicians the ultimate say in how project funds were to be used. The result was that many technical staff could not go out in the field because their project funding had run dry. “We only come in to collect our pay for doing nothing,” one frustrated senior official said. Donors were furious. This year, donors appear to have retaliated by quietly putting on hold the release of tens of million dollars in project funding until after the election. “Why should we give politicians free rein on our taxpayers’ money,” one donor representative said quietly. Of course to avoid a diplomatic fallout, donors have avoided being openly seen to be involved in creating the budget crisis for the government. Whatever the outcome, one thing is sure. The government has a lot of dusting up to do in ensuring its tarnished image is not further damaged by the near fallout with Japan and the unfolding debacle with Washington and Canberra.


Northern marianaS

Former AG convicted of public corruption Focus now shifts to former gov’s extradition neth L. Govendo sentenced Buckingham to three-and-a-half years in prison, all suspended. He was also ordered to pay a US$14,000 fine In yet another “first” for the and placed on unsupervised probation for threeCommonwealth of the Northern and-a-half years. Mariana Islands and buoyed by a The judge also barred Buckingham from multi-year movement to rid the government employment within the CNMI government of corruption, former attorney-general Edward for 20 years. Taylor Buckingham III was found guilty on Feb. During the sentencing, the judge said he be19, 2014 of seven of eight public corruption lieves jail is not appropriate because Buckingham, charges against him. he said, is not a typical criminal that stole or emThese charges are in connection with Buckingbezzled a huge amount of money or committed ham’s hosting of a political candidate’s campaign sexual abuse or violent crimes. gathering in 2010, use of police and ports police Buckingham’s lawyer, Richard W. Pierce, also escorts to evade serving of penal summons in pointed out that Buckingham is 65 years old and 2012 as he was about to leave the CNMI, and use has poor health, so he should of government lawyers in be allowed to return to his his criminal case while he wife and family in Colorado. was already outside the Office of the Public AuCommonwealth. ditor counsel George HasNot only is 56-yearselback, who prosecuted old Buckingham the first the case, recommended a former CNMI attorneyone-year jail time without general to stand trial for the possibility of parole criminal charges, but also and the maximum fine of the first one to be conUS$14,000. victed and sentenced. He said imprisonment He was previously declared a fugitive from Former attorney-general Edward Buckingham would serve the two most imjustice for leaving the III...found guilty on Feb. 19, 2014 of seven of portant factors—punishment CNMI despite criminal eight public corruption charges against him. Photo: and deterrence, especially because Buckingham was summons served on him Haidee Eugenio the highest law enforcement in 2012, and was the subofficial in the CNMI sworn to uphold the law. ject of two extradition requests in 2013. Hasselback’s statement is echoed by some The extradition requests were addressed to the elected officials. governors of Iowa and Colorado in the United “Given the magnitude of the offenses and him States. He’s also the first former CNMI attorneybeing attorney-general when those acts were general to go through these processes. committed, one would expect there would be at Buckingham voluntarily returned to the least jail time,” Representative Ray Tebuteb (IndCNMI in May 2013, and the fugitive status Saipan) said. But he pointed out that he respects was cured. the judicial process. He went back to Colorado within days and The CNMI Office of the Public Auditor returned to the CNMI only for his February originally filed 12 criminal charges against Buck2014 trial. ingham in connection with violation of election “It’s a lesson for all government officials that laws and illegal award of a sole-source, almost no one is above the law, regardless of who you are US$400,000 American Recovery and Reinvestand what you are. We live in a society governed by ment Act management contract, among others. the rule of law,” said Representative Janet Maratita But the judge earlier dismissed four charges, (Ind-Saipan), within hours of Buckingham’s including those pertaining to the ARRA manageconviction. ment contract. Before the court handed down the sentence, Buckingham left Saipan, the CNMI’s capital, Buckingham read a brief statement apologizing after his conviction and sentencing. He is not for his conduct. He also thanked the judge for expected to ever step foot on the island again. conducting an expedited trial. Former representative Tina Sablan, who has Buckingham’s trial started on Feb. 10, 2014. been advocating a transparent and accountable The judge announced his verdict at 10:15am on government, said he hopes the Buckingham Feb. 19, and he was sentenced only a few hours case serves to restore some of the public trust in later or at 1:30pm. government that was lost. But many in the community felt that while Sablan told the local media that the Buckingthe former attorney-general finally had his day ham case “reminds us all of how important it is in court, the “no-jail time” sentence is not punito continue in our collective efforts to clean up tive at all. our government and hold our public officials CNMI Superior Court Associate Judge Ken-

By Haidee Eugenio

Politics accountable when they abuse the power we give them.” ‘Extradite former governor’ With Buckingham’s conviction and sentencing over, the focus now shifts to former governor Benigno R. Fitial, who resigned on Feb. 20, 2013 just days before the start of his impeachment trial at the CNMI Senate. Fitial is facing criminal charges related to the Buckingham criminal case. The CNMI House of Representatives, led by Speaker Joseph Deleon Guerrero (Ind-Saipan), impeached Fitial on Feb. 11 and 12, 2013 for a total of 18 charges of corruption, felony, and neglect of duty. The impeachment process was backed by CNMI voters, who wiped out almost all of Fitial’s political candidates in the November 2012 elections. The Senate was preparing for an unprecedented impeachment trial in the history of the CNMI or any other U.S. territory when Fitial resigned, making his then lieutenant governor, Eloy S. Inos, the new governor. Fitial allegedly masterminded the use of police and ports police escorts for Buckingham’s exit from the CNMI. The former governor allegedly instructed local authorities to block Federal Bureau of Investigation agents from serving Buckingham a penal summons during an early-morning flight out of the CNMI. Buckingham himself, during his February trial, told the court that it was Fitial’s idea to provide him with police escorts from the hotel where he was staying to the airport. Fitial’s own former escort/driver who’s a police captain, also testified during the Buckingham trial that Fitial instructed him not to allow FBI agents from approaching and serving a penal summons to Buckingham. On the one-year anniversary of Fitial’s resignation as CNMI governor, House vice speaker Frank Dela Cruz (Ind-Saipan) said he is prefiling a joint legislative resolution urging Governor Eloy S. Inos to “begin the process” of extraditing Fitial “to face the criminal charges against him.” Fitial is believed to be in the Philippines, his wife’s hometown. “It’s about time the former governor is brought to justice,” said Representative Mario Taitano (Ind-Saipan), who, along with Dela Cruz, also supported Fitial’s impeachment in 2013. Historian Don Farrell said Fitial’s “rise and fall” will have “a lasting effect on CNMI politics and government” and “will be remembered long into the future by both sitting as well as aspiring politicians.” Farrell told the local media that “despite all the good things that Governor Fitial may have done during his rise to power, it was not enough to absolve him of the perception of wrongdoing that pervaded his authoritarian style of governing”. “His resignation, just like the resignation of former U.S. President Richard Nixon and the conviction of Guam governor Ricardo J. Bordallo, brought disgrace on his people and the Commonwealth,” the historian added. Farrell’s new NMI history book’s last chapter covers Fitial’s impeachment, resignation, and replacement by his former lieutenant governor. “To not report it would be an error of omission,” he told the local media. Islands Business, March 2014 33


Business

Big bucks...The eight-member PNA has changed the face of fisheries over the past four years, more than tripling revenue for the islands. Can it continue to build on these successes? The organization faces pivotal decisions at its March annual meeting. Photos: Giff Johnson

PNA decisions painful but necessary Several issues to iron out in Honiara By Giff Johnson

Transform Aqorau, who is based at the organization’s Majuro headquarters.

We should be so lucky to have the Parties to the Nauru Agreement (PNA) having such problems like this—what to do with US$93 million and how to distribute this pot of money resulting from last year’s successful conclusion of negotiations with the U.S. government and its tuna industry? This is just one of several pivotal decisions facing the PNA when islands fisheries officials meet in Honiara on March 5-14. Over the past four years, PNA has forced a paradigm shift in the commercial fishing industry in the region, giving islands the greatest control they’ve ever enjoyed over the US$7 billion business. By requiring foreign fishing companies to adhere to a “vessel day scheme” (VDS) and setting a minimum fishing day fee—now at US$6,000—while setting limits on days, PNA has more than tripled revenue accruing to its eightmember nations. But success has its downside. The challenging issues before PNA “reflects the success of PNA members,” says PNA CEO Dr.

Solidarity key to success The solidarity of the eight nations—Papua New Guinea, Solomon Islands, Nauru, Palau, Federated States of Micronesia, Marshall Islands, Kiribati and Tuvalu— has been the key ingredient to PNA’s early success. In addition to the tripling of revenues, PNA at the end of 2013 began successfully marketing internationally certified sustainably caught skipjack in Europe, generating a premium price for the product. More distant water fishing fleets are flagging domestically and more fish processing facilities than ever before are operating in the islands, offering significant employment opportunities. Still, cracks in PNA unity were evident in 2012, when Kiribati kept selling fishing days to foreign fishing fleets over its agreed-to limit instead of trading with other PNA countries for unused days. This resulted in a modest reprimand at PNA’s annual meeting last year and a promise by Kiribati

34 Islands Business, March 2014

not to do it again. The year just past saw different interpretations of non-fishing days, which has turned into a prominent loophole in PNA’s VDS. Pressure on the region for fishing days will only increase as the European Union has joined the lineup of foreign fishing fleets beating a path to the lucrative fishing zones of the PNA. “What we do as a group is contingent on what we do individually,” said Marshall Islands fisheries Director Glen Joseph in the lead-up to the March meeting. Important issues to resolve In Honiara, PNA officials will attempt to resolve these issues: • Distribution of US$93 million from the U.S. fisheries treaty Key to this is deciding which countries will provide days for the 8,000 promised under the new treaty. In part because the U.S. treaty includes provisions for 15 percent of the funding to be distributed equally among all Pacific Islands Forum Fisheries Agency members as well as a percentage for administration costs, the actual per day rate of U.S. payments to islands in whose waters tuna is caught will be below the new US$6,000 daily benchmark fee, making it less attractive for PNA members to offer days. “We have to decide once and for all where we get the days (for the U.S. fleet),” said Joseph. “We have an agreement with the U.S. we need to honor. We have to come up with an internal agreement in order to move forward.” • Defining non-fishing days Differing definitions of non-fishing days is causing “leakage” in the VDS that is intended to cap fishing days to create scarcity and maintain


the expense of domestic fleet developments and access to the region. “We need to address it with our domestic interests at the forefront,” said Joseph. The islands want to attract distant water fishing nation partners but “our domestic industry needs to be developed by us, not dictated by others,” he said. Synchronizing fishing rules at the national level with those at the regional level is crucial to the ongoing success of PNA, said Joseph. One key issue that doesn’t fit easily into a bullet point issue for resolution is the hurdle that fisheries access agreements between islands and distant water fishing nations pose to PNA nations maximizing the value of a fishing day.

Success breeds challenges...PNA CEO Dr Transform Aqorau and Marshall Islands fisheries Director Glen Joseph.

the price. Aqorau said allowance for non-fishing days need to be tightened so it is not abused by distant water fishing nations. The terms “transit” and “non-fishing days” need to be standardized, said Joseph. “How we are using days is creating loopholes,” he said. “It needs to be defined once and for all and enforced.”

• Domestic fisheries development PNA members are benefiting by foreign vessels gaining domestic designation by accessing licences through the FSM Arrangement, which allows vessels to fish multiple exclusive economic zones on a single licence. The number of foreign vessels seeking licences under the FSM Arrangement jumped last year, and Joseph is worried that it is being used as a vehicle for cheap licenses at

No bilaterals As conceived, the VDS aims to create a seller’s market, allowing PNA members to auction their days to the highest bidders. But bilateral agreements—where fisheries and foreign ministry officials from Asian or other nations come to town every year or two to negotiate deals with their islands counterparts—has been a mainstay of Pacific fisheries for more than a generation. Aqorau is encouraging fisheries officials to move away from bilateral fisheries access negotiations to selling days through the VDS, allowing the market to dictate the price—which he believes will punch the price well above the current US$,6000 a day benchmark. The question is how many of these critical issues can PNA solve in Honiara? Maintaining unity will, no doubt, be a continuing challenge but also the key to PNA’s ability to drive the industry as it has for the past four years.

Islands Business, March 2014 35


Viewpoint

Nurturing Entrepreneurs: Key to Economic Growth More than ever, given the dwindling government budgets and reduced foreign assistance dollars, the private sector—whether brave entrepreneurs, small- and medium-sized enterprises or well-established and deep-pocketed corporations—can play a critical role in fighting poverty and growing economies in the Pacific region. The private sector must be a critical partner if we are to create jobs and sustainably lift people out of poverty. Too often, however, inept bureaucracy, poor or poorly enforced regulation, interventions by government and endemic corruption get in the way. These challenges of the “little bric” may well be a longer-term constraint to growth and one of the biggest impediments to building better lives for people everywhere, including across the Pacific Islands nations. With well-thought-through partnerships, public-private efforts can be done in a way that are good for business and more sustainable than aid

ago in Mogadishu this past October. Ryu told me, “It was, and still is, our hope that by showing it, it is possible to do business in Somalia in a smart, knowledgeable way, others By Curtis S. Chin* will follow our example.” Indeed, whether in Asia, Africa or the United States, it will be small businesses and entrepreneurs—regardless of nationality—who will drive cross the Asia-Pacific region, the news long-term change and job creation. is mixed when it comes to ease of doing “Business investments that can make money business, but at least the Pacific Islands and simultaneously empower communities at the are better than the likes of Burma and Somalia. grassroots level is key to economic growth and the Or, are they? reduction of poverty-related violence in Somalia When it comes to doing business, there are few and everywhere else in the world,” Snelson says. places worse, it seems, than Burma, also known For nearly four years, I served as U.S. Amas Myanmar. bassador to and board member of the Asian That’s at least according to the World Bank, Development Bank (ADB), a role that took me which ranked the once pariah state as worst in to numerous Pacific Islands nations. Asia and the Pacific—at 182nd of 189 rated econoThe ADB is an international financial institumies—on the ease of doing business. tion focused on poverty reduction and infraFrom the nations of Melanesia to Micronesia structure investments—and there too, Ryu and and on to Polynesia, though, Snelson’s message would no one should take heart have great relevance. in the retort, “Well, at least While development we’re better than Burma, let banks and aid agencies can alone Somalia.” provide incremental good, Nor should governments it is good governance and in the region see investa strong rule of law that are ment from a relatively more critical to businesses and risk-tolerant and resourceessential to job creation and hungry China, or continued long-term growth. assistance from the United Indeed, Singapore and States, as long-term, sustainHong Kong are Asia-Paable solutions to the chalcific examples of how ecolenge of creating jobs and nomic freedom and busigrowing economies. ness growth can go hand Rounding out the “Top in hand. 5” for worst in the AsiaGovernment policyPacific region in The World Kiribati...ranked 122 in the World Bank’s 2014 Doing Business in the Asia/Pacific region. Photo: SPREP makers across the Pacific Bank 2014 Doing Business region—as well as in key report—the latest annual ascapitals elsewhere, includsessment of the ease of doing ing Washington and Canbusiness in economies around the world—are and assistance packages subject to donor fatigue, berra—should well consider what it takes to move Timor-Leste (179th); Afghanistan (164th); Laos legislative gridlock, politics and budget cuts. the diversity of Pacific islands nations up the ranks (159th); and the Federated States of Micronesia Just ask Alisha Ryu and David Snelson, two for ease of doing business, and what that might (156th). American business pioneers first spotlighted by mean for further job creation, economic growth Other Pacific islands nations likewise fared me in Fortune. and equality of opportunity everywhere. poorly. Kiribati ranked 122nd; the Marshall IsThe two entrepreneurs are behind a MogadiFew may have the nerve, or the heart, to do lands, 114th; Palau, 100th; the Solomon Islands, shu guesthouse and security firm, which employs what Ryu and Snelson are trying to do in So97th; and Vanuatu, 74th. Best of the lot were nearly 40 Somali men and women, and by a malia—building a business that can turn a profit Tonga at 57th; Samoa at 61st; and Fiji at 62nd. conservative estimate, indirectly supports another while promoting economic growth. Clearly, investing in the islands nations of Asia400 extended family members. But by creating jobs for three dozen Somalis Pacific is a world away from Somalia. Ryu, a former combat journalist, and Snelson, who would otherwise be prey for pirates and reliThat nation is quite literally off the charts, with a retired U.S. Army warrant officer, have been gious extremists, perhaps they offer a bit of hope the World Bank report, once again skipping Soliving and running their business in Mogadishu and an example that a small business can have an malia completely. Lawlessness and lack of reliable fulltime since 2011. impact, regardless of how long or how fleeting, data are no doubt two of the factors why Somalia Last year, the US news programme 60 Minutes even in the most difficult places to do business continues to be absent in the rankings. described their role in digging up and returning in the world. That’s as true as in the Pacific as it Yet, just as in the Top 5 ranked economies for to the United States the remains of a helicopter is on the East African coast. ease of doing business—Singapore, Hong Kong, shot down and made famous in the book and • Curtis S. Chin served as U.S. Ambassador to the Asian New Zealand, the United States and Denmark— blockbuster Hollywood film “Blackhawk Down.” Development Bank under Presidents Barack Obama and there are lessons to be taken even from Somalia Both recount the U.S. military raid to capture George W. Bush (2007-2010). He is a managing director with on how best to grow economies and address pera Somali warlord. A deadly battle ensued, killing advisory firm RiverPeak Group, LLC. Follow him on Twitter sistent poverty, whether in Africa or the Pacific. at @CurtisSChin. hundreds of Somalis and 19 Americans 20 years

A

36 Islands Business, March 2014


Education troublesome academic students absolutely adored and looked up to popular footballers. His strategy was to forge links with such star players and bring them to the school and engage them with student admirers.

The bait...using footy stars to lure Polynesian students to remain in school. Photo: resources0.news.com.au

Using footy stars to lure islands kids to stay in school Trial model hailed a success in NSW By Davendra Sharma What should teachers do with students when suspension and poor report cards fail? Reporting problem kids to their parents may not work because often they are as clueless as the high school teachers in dealing with truancy and unacceptable behaviour, as schools with high Polynesian students intake in Sydney suburbs in the south and west regions have found out. Some schools with headache students have been plagued with such chronic problems for years. But a trial model of giving in to students’ expectations is turning plunders to wonders. Taken on as a challenge, a school principal began luring Polynesian truants back to school— thanks to sweet talk from community elders and professional footballers from Australian rugby league teams. Acting in desperation, Principal Neale Harris of the Georges River College’s Oatley and Peakhurst campuses in Sydney’s south-west took the bull by the horn. He summoned a staff meeting to seek support to change his school’s approach to suspending or failing students who were not attending regular classes. Teachers blamed cultural and language barriers for students becoming disengaged at school. Ethnic Polynesians accounted for 15 percent of its total student numbers and the general consensus among the school teachers was that education was not regarded as a priority with family members of this community. “Many family members never finished high

school,” noted Harries. Education hardly a priority amongst Polynesians Harries solicited two Samoan community elders, James Munroe and Fred Sevealii in 2011, to work with the surrounding affected Polynesian families to convince them that educating their children was as vital as any other aspect of their lives. Samoan community elder Sevealii was enlisted and then promoted to assume the role of a principal at the college’s Year 7-10 Peakhurst campus. “We had tried a lot of things to deal with this issue. “A big problem was the families—we’d tell them their child was not coming to class but they weren’t really engaged, or they said they didn’t know how to make their child come to school,” noted Harries. Munroe and Sevealli began working with grassroots family members to enlighten them the importance of quality education for their children and instill among them that sports was not the only reason for them to be at school. Footballers from nearby St George Illawarra club whom some Polynesian students idolised were also approached by the school to have pep talk with students. “Many of them, coming from the Pacific Islands, hadn’t had good education themselves and so didn’t have much of an idea of what it was all about. “We used to joke that the only days the kids were interested in turning up was sports days.” Munroe established that certain messy and

Free items from canteen A three-pillar approach was taken— families, footballers and fiery students. Each student was isolated and individual issues were addressed, Munroe told the media as the NSW State government gave the thumbs-up to the school’s campaign to woo back truant students amongst the Polynesian community in Sydney. The Munroe-Sevealii team offered students free items from the school canteen for acceptable behaviour, visits by St George Illawarra players during sporting matches and bringing natural leaders from their islands communities to set examples. When his school’s proud achievements became talk of the town among education bureaucrats last month in Sydney, Munroe singled one Samoan student, Tapa, who turned his life around and brought new light to his family and the broader community. Football-mad Tapa was a constant grief to teachers at the school—who had all but given up on him. “Tapa, who last year became the first in his family to complete the HSC (Higher School Certificate, a pre-requisite for tertiary students in Australia), not only began attending class but signed the entire school up to the White Ribbon domestic violence campaign,” Munroe told media. Ethnic rivalry ironed out Tapa also led the charge by his Samoan peers to help eradicate ethnic rivalries between Polynesian students and other ethnic groups at the problem school, which is now being emulated across the state for its success in moulding issue-laden students into star performers. “He also helped forge links between students of other ethnicities and community elders to change attitudes towards school,” said Munroe. State Education Minister Adrian Picccoli declared that his department has learnt a new lesson from Georges River school on how handing authority to local principals and community elders can get results from the worst of the students. “Discipline is just one area where schools are benefitting from our reforms which puts more power and responsibility in the hands of principals, who ultimately know what is best for their schools,” Piccoli was quoted as saying. “Ultimately, all schools and all students will be best served by a system that empowers local school and communities.” Polynesians from Samoa, Tonga, the Cook Islands and Fiji have made huge impact on international rugby arena—especially in New Zealand where they account for 17 percent of the national player base, Australia, England, France, Japan and Wales. Dr Horton—who started his research on excellence of Pacific islanders in international sports in year 2000—said Polynesian men generally place family, church and rugby at par in terms of level of priority in their lives. “Rugby is one of their passions, second probably after the church and of course ahead of their family.” Islands Business, March 2014 37


Interview

New SIVB boss outlines plans Family/romance market his targets

Josefa Tuamoto…Solomon Islands has great potential for tourism. Photo: Jo Tuamoto

By Robert Matau

J

osefa Tuamoto once Fiji’s top tourism marketing official is now taking his vast years of experience to the Solomon Islands. Last month, the Solomon Islands Visitors Bureau (SIVB) announced Tuamoto’s appointment as the new General Manager of SIVB, replacing local Michael Tokuru. Solomon Islands Visitors Bureau board chairman Moses Tepai said the appointment represented a major achievement for their tourism aspirations and is intended to play a key role in the Solomon Islands increasing its annual international visitor intake. “We are extremely fortunate to have someone of Jo’s calibre on board. “Jo is highly regarded on the international tourism stage, his reputation and the huge success he has achieved for Fiji’s tourism precedes him. “This is especially the case in those visitor source markets we see as being critical to the future growth of our tourism industry and in particular, Australia, New Zealand and the United States.” South Pacific Tourism Organisation chief executive Ilisoni Vuidreketi said Tuamoto will assist and contribute to the initiatives and undertakings by the Solomon Islands Government to grow and harness the potential of the industry to improve employment opportunities, develop small tourism businesses and increase its contribution to the economy. 38 Islands Business, March 2014

Islands Business spoke to Tuamoto, Fiji’s first tourism executive to head another Pacific Islands tourism bureau, about his vision for the Solomons. While it is early times yet, can you briefly outline what areas you hope to address as you begin your new assignment? The Solomon Islands has great potential for tourism given its natural beauty and the range of products it currently has. I also know for a fact that there is no one silver bullet that will fix the tourism issues here but rather a committed effort by government (and the people of Solomon Islands), as well as partner airlines, tour operators, accommodation providers, overseas trade and the media that can push this through. The destination is very strong in the dive and fishing market and other adventure activities. But I feel this needs to be broadened and I am hoping to be able to attract the family and romance market into the Solomon Islands in the not-too-distant future. The war memorials here are an asset and I would like to place more marketing prominence in that area. If you hope to bring romance into the Solomons, you are probably tapping into a wider market than before. How do you hope to bring tourists in with the current connectivity (flights to and from Solomons) that you now have? We need to take a step change in our approach. The market segments that we currently have have been producing mediocre numbers for the destination and so we need to start to develop other potential high yielding segments. One of this is the romance market. We will also try and cultivate the family market, which is non-existent here. There are challenges that we need to work around but we need to have a strategic shift in our thinking particularly in how we position this country in our key source markets. Will you also consider relooking at the rates offered by local hotels to attract tourists to your shores? Pricing is just a part of the mix and it will not be our main focus. We need to work on our image and create that aura that will drive demand. In essence, our focus is creating a value proposition that will dictate the state of play in the market.


Uepi…a diving a haven in the Solomon Islands. Photo: Nigel Marsh

The last thing we want is to adopt a strategy that is price driven—we will let the big boys in the region to play in that space. When you get occupancies that are right up there—then simple economics will dictate your pricing policy. How would you tap a market like the US and how would you fly a traveller from the US to the Solomons and then to the outer islands in the Western Province? The US and Japan are part of our medium term strategy - we are already getting visitors from these countries and we will explore other avenues to maximise on these markets. One of the key issues I have mentioned is to identify that segment that has the time and money to make that commitment to travel. The seniors market matches that description—and we have those seniors that have an affinity to the Solomon Islands because of World War II. We are hoping that not only the veterans will come but more importantly their families and so we can develop inter-generational travel into the country because of that unique proposition of the World War II memorial offering. With your experience, how do you intend to promote the Solomons? I bring with me a network of professional colleagues that we will use here in the Solomon Islands. I have already started this and will be engaging some of them in certain key strategic areas. I have started visiting the regions here and explaining to them the role of SIVB but more importantly to get them in our plans for 2014 and beyond. This forum, which is similar to the TEY (Tudei E na Yalayala which means stick to my promise in Fiji), provides the industry with a platform to raise issues with us as we work together as partners in promoting the destination. Do you feel the lack of flights from your traditional markets to the Solomons will be a problem and if so how would you seek to resolve it? Flights will always be an issue in all islands destinations. For us here, Solomon Airlines is doing a great job in providing access to our key source markets with the equipment they currently have. We are working closely with them to see if there are other potential regions to develop. I also believe that tourism in the Solomon Islands can be a major foreign exchange earner in the medium to long-term and adequately replace the resource sectors of mining and logging.

SOLOMON AIRLINES

Bridging the Paciic www..ysolomons.com

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

Follow us on Islands Business, March 2014 39


Sport

Leapai rallies Pacific for world fight Don’t judge a man by his past but his potential reign since 2006 and he is just come off a shutout decision victory against Alexander Povetkin of That is the clear message Samoan Alex Russia last October. Leapai would like the boxing world to believe His clash with Leapai is his 16th title defense as he readies himself for what is deemed as the as the Ukrainian has held the title longer than biggest fight on earth on April 27. anyone in boxing history other than Joe Louis Leapai is destined to make history not just (nearly 12 years). for his native Samoa but also his adopted AusSome boxing insiders are billing this fight as a tralia when he takes a crack at the heavyweight possible upset win for Leapai—capping it as the championship of biggest surprise the world next the world of month in Oberboxing has since hausen, Germany, James Buster against reigning Douglas beat champion WladiTyson in Tokyo mir Klitschko of in 1990. Ukraine. If Leapai Leapai is a does turn his man with a comiracle run to lourful past of all stardom into sorts—misdeeds, another milecriminal records, stone, then the stretches in prisLionheart—as on and a habit of he is commonly munching pies referred to in and coke before Sizing each other…reigning world heavyweight champion Wladimir his much-loved Klitschko of Ukraine and Samoan Alex Leapai. They battle each other on Queensland training. At his prime April 27 in what is deemed as the biggest flight on earth. Photo: www.tz.de town—will find in fitness, Leapai himself staring is now 34 with a down the shot comparable record of 30-4-3 with 24 knockouts of a lifetime. since turning professional in Queensland in 2004. Leapai is riding high in confidence, pleading He was installed as the number one contender with Samoans, Pacific islanders and Australians for the world challenge after he knocked out the to join in his campaign. previously unbeaten Denis Boytsov in a WBO “All the people that back the Lionheart, make fight last November. sure you stay tuned. Because we’re going to make Leapai was handpicked to fight Boystov—who history,” Leapai boasted to the local media in Austhought the six-foot Samoan would be an easytralia as news spread about his world challenge. beat and a routine victory as he himself was “It ain’t going the distance. I promise you one preparing to take a shot at Klitschko. of us is going to be knocked out, but it isn’t goLeapai roughed up Boystov, knocking him out ing to be me.” twice in the fight and went on to score a major Klitschko, dubbed Steel Hammer for his caupset in what was not even an official elimination reer’s efforts which has fetched him a net worth fight for WBO. of US$24 million, is impressed with Leapai’s heavy hands. “It won’t even be my toughest fight” “I’ve never heard of Alex Leapai until the fight Now on a strict disciplinary food and training with Boystov,” Klitschko told European news regime for the big clash, the beefy Samoan has agency, ESPN.com last month. suddenly got the world at his feet—Klitschko “I think he did a great job to win that fight will defend his WBA, IBF, WBO and IBO heavyand become official mandatory for WBO title. weight titles against Leapai. I’m looking forward to that challenge from Alex The winner on April 26 will wear the very same and I’m sure he will give his best in that fight crown donned by Mohammed Ali, Joe Frazier, against me.” Larry Holmes, George Foreman and Mike Tyson. Leapai will start the fight as an underdog as “I’ll beat Wladimir and it won’t even be my apart from Boystov he has never beaten a world toughest fight,” Leapai told a world boxing contender though the defending champion said magazine. he will be taking no chances with the SamoanThat’s easier said than done—Klitschko’s reAustralian. cord speaks miles about the world champion. He “He has shown strong punching power and a has 51 knockouts from his 61-3 outings. lot of heart. But, moreover, he can take a punch The 37-year-old Klitschko has had the title and feels confident in the role of the underdog.

By Davendra Sharma

40 Islands Business, March 2014

“I will be very focused and prepare myself 100 percent as always and will look forward to this next challenge.” For Klitschko, whose current reign began in 2006, the German outing will be another challenge for he is a former Olympian, heavyweight gold medallist from 1996. It is a comparison of all sorts between the two competitors—Leapai rose to fame through the doldrums of boxing in Samoa and then in Queensland. Leapai is a father of six who drives a Holden and is sponsored by a local property agent. This will be the first time he will train full-time for a bout. Klitschko dates Hollywood actress, Hayden Panettiere and has sponsorship deals with Mercedes Benz. His brother, Vitali—a former champion boxer—is now the opposition leader and could be the next president of Ukraine. Leapai promises to wipe out Klitschko’s image and his career. “People talk about how great Wladimir is and the 61 victories he has had in his career. “I, on the other hand, think of the fact that he has been KO’d three times by people who cannot punch nearly as hard as me. I will break Wladimir.” Mega dollars await Leapai for just showing up for the world title fight, US$1.5 million with the scope of much more if he keeps his winning momentum, says Noel Thornberry, who first laid eyes on him at a Queensland gym in 2004. The Samoan began sparring at Thornberry’s family fight factory in the food-town of Gatton, Queensland, 10 years ago and not everyone could catch Leapai’s potential. After his loss on points at Brisbane’s Mansfield Tavern in his debut fight representing Thornberry’s joint, his trainer declared: “That bloke could fight for the world title one day.” “Everyone said: ‘Are you kidding? He just lost’ But he had all the potential in the world. He had power in his hands and can really crack Steel Hammer.” “Some blind faith in our destiny” Both Thornberry and Leapai want boxing enthusiasts from the region and Australia to appreciate what Leapai hopes to accomplish. When Leapai knocked on Thornberry’s doors, his ambition was to become the heavyweight champion of Queensland only, not the world but now he is one win away from boxing’s holy grail. “Whether he wins or loses, this is the most significant fight an Australian (or Samoan for that matter) has been involved in,” Thornberry asserted. “This is the dominant heavyweight champion of our era. “I had some blind faith that this was our destiny.” The former truck driver, now residing in Logan, Queensland, who used to only train between shifts, hopes to visit Samoa before his big gig so he can invoke the blessings of his ancestors. He also hopes there would be a national holiday in Samoa should he pull off a mighty win. “It’s just massive,” he said. “I get phone calls from everywhere from my family down in Sydney, New Zealand, Samoa— they’re just real supportive and wishing me all the best in trying to make history as well.”


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Health said another key health department employee. “We have heard that the health bosses panicked and raced to set up a new public health response team—so much for these wide sweeping health reforms.’’ The acting National Nurses’ Association president Anne Pakoa supported the unnamed health department workers’ concerns about the health department changes. She said the Health Department has been restructured and stripped back so far that a lot of expertise has been lost. “There has been so much reshuffle, there has been abolishment of some departments in the public health sector, can we trust that the new personnel that have been taken out from other departments can manage this epidemic? Are they Dengue outbreak...in Vanuatu with several hundred cases recorded in Port Vila and Luganville. Photo: Fiona Harper capable,” she said. “If we’re not careful, we’re going to have a huge outbreak.” A government spokesperson said there had been no panic and the response team had gone about its work as it has done in the past without any adverse effects from any departmental reshuffle. One of Vanuatu’s leading medicos, Dr Jean Philippe King, who is now dealing with his sixth dengue fever outbreak, said it is extremely difficult for any public health department to really achieve much in any nation where dengue fever exists. (In the 1970s, there were only about nine countries where dengue fever existed but now the number is closer to 60 countries.) “There is no cure and no real treatment, so apart from a public awareness on prevention and destroying the breedBy Tony Wilson* campaign and the eradication of mosing sites.” quito breeding places in urban areas, Dr Boe said there have been recent A major dengue fever outbreak in Vanuatu, little else can be done,” he said. outbreaks in Fiji, New Caledonia and with several hundred cases recorded in Port Vila Dr King, who previously worked in other Pacific islands. and Luganville, has opened serious allegations Noumea and Martinique in the CaribAnd it is here that the criticism of the about the state of the Ministry of Health. bean, said although this was not the Ministry of Health kicks in, with claims The Vanuatu Ministry of Health is now spearworst outbreak he had faced, he had the department should have been better heading a campaign to eradicate mosquito breedmore than 30 dengue fever patients prepared given recent outbreaks around ing sites around Port Vila and Luganville, plus attend his surgery since the outbreak the Pacific. educating people on how to protect themselves began in January—aged one to 60 Insiders in the Ministry of Health from contracting the virus. have blamed poor administration for Dr Jean Philippe years old. But there have been claims that the governKing…his sixth dengue “I have seen worse in Martinique the magnitude of the dengue outbreak. fever outbreak. Photo: ment health team was slow to react and get itself because their island is about the same These senior staffers who could not organised. Tom Wilson size as Efate, but their population is be named for fear of losing their jobs The outbreak, which began in early January, around 300,000, which is well above Vanuatu’s told Islands Business that the damage was done has seen more than 30 people a day presenting national population,” he said. following a major reshuffle in the Ministry of themselves at the hospitals and private clinics with “One of the positives here in Vanuatu is that Health by Health Minister Serge Vohor and his symptoms of the untreatable virus. we do not have really high population densities acting Director General Dr Santus Wari last year. One the Ministry of Health’s early ‘initiatives’ where the virus spreads far more rapidly.’’ The health insiders claimed the Ministry of was to hand out mosquito nets—a fine deterrent He said the dengue mosquito is a real ‘home Health had established a well functioning dengue against malaria, but basically irrelevant against body’ that only travels about 300 metres from its programme during the past 20 years. dengue which is carried by a day-time mosquito breeding place. “This included a dedicated staff member, most dangerous around dawn and dusk. “If you shake curtains, beds and sofa cushions a dengue early warning system and dengue A spokesman said the problem has been exacaround your home you will see them appear. intervention standard operating procedures to erbated because of the four strains of dengue fe“So you can see how difficult it is for any public international standards,’’ said a health officer. ver, the one behind the outbreak in the country’s health unit to really do anything significant.” “This system has worked nationally and kept two major towns has not been seen in Vanuatu for He said one of the problems with dealing a dengue fever outbreaks under control since the around 20 years— which has reduced the chances dengue strain not seen on Vanuatu shores for 20 beginning of this century.’’ of potential immunity among the population. years is that around 50 percent of the nation’s They said under the sweeping 2013 reforms The leader of the government’s anti-dengue population is under 17 years old. by Minister Vohor and Dr Wari, which included campaign Dr Laurence Boe said they have mo“So obviously they have not had any opportuthe integration of services, massive, planned debilised the Ministry of Health and Vector Control nity to build any immunity,” he said. centralisation and the dismantling of the public and Environmental Health to do public awareDr King said he felt the current dengue outhealth structure, outbreaks like this dengue one ness and education. break in Vanuatu was around its mid-point. were bound to occur. “We have basically divided them into groups “It should end naturally when the weather “One of the results of these crazy reforms is which are visiting different communities in Port changes at the end of March and the optimum the escalation of dengue cases in Port Vila and Vila and Luganville,” he said. mosquito breeding conditions cease until the next now Luganville which is largely because there “And especially those areas where there are wet season,” he said. is no dedicated public health team to lead the a number of cases and there are education and national response at the outset of the outbreak,’’ awareness campaigns advising the community • Tony Wilson is the Editor of Vanuatu Independent.

Dengue outbreak raises questions in Vanuatu Is the health ministry capable?

42 Islands Business, March 2014


Environment

SPREP with David Sheppard

I

Weathering the storm together

food security, and lower risk of diseases correlated n January 2014, Tropical Cyclone Ian devto weather and climate, such as water borne astated a number of islands in the Kingdom diseases after floods. of Tonga, a brutal and sobering reminder of The Pacific islands countries targeted by how extreme weather affects our islands homes. FINPAC include Cook Islands, Federated States On behalf of SPREP, I extend our deepest of Micronesia, Fiji, Kiribati, Marshall Islands, condolences to our brothers and sisters in Tonga Nauru, Niue, Palau, Papua New Guinea, Samoa, as they work to recover from the damage caused. Solomon Islands, Tonga, Tuvalu and Vanuatu. We are truly sorry for your loss. The project will improve the delivery of What really struck home during this event was weather and climate information to benefit the fithe strong role our Meteorological Services play nal end users, such as the fishermen, farmers and on a day-to-day basis as we face the challenges villagers on main and outer islands who depend of protecting the lives and properties of Pacific on the weather and climate for their livelihoods. people during extreme weather events. By using weather and climate information In the case of Tropical Cyclone Ian, the meteotailored to key social and economic sectors it rological services in Tonga and Fiji collaborated is possible to minimise the adverse impacts of very effectively to ensure that people in harm’s hazardous weather events now and in the future way were aware of the impending threat. where a changed climate regime is very likely. It’s our weather conditions that impact how Better understanding of the science regarding we live and what we do, whether there are strong our weather and climate is of little use if we are winds, cyclones, heavy rain, floods, strong sununable to offer real and practical uses for this shine, drought or just your normal blissful day information to communities. in the islands. Effective and timely weather forecasts and warnings can minimise loss of life and property, and alleviate some of the hardship following extreme events such as tropical cyclones. The Secretariat of the Pacific Regional Environment Programme (SPREP) is home to the Pacific Meteorological Desk Partnership, which has answered The mess...after Cyclone Ian. Photo: File Photo the call from Meteorological Services across the region Bridging the gap from science to users is the to develop the Pacific Islands Meteorological benefit that will come from the FINPAC project. Strategy (2012-2021). The project will assist National MeteorologiThe Meteorological Strategy outlines critical cal Services in the region to better communicate meteorological priorities and actions for the with stakeholders and users in cooperation with region. It includes calls for action to strengthen key partners. critical sectors such as aviation, marine and public Further, we will assist our National Meteoforecast and warning services, as well as addressrological Services to improve their collaboration ing ever critical climate services required in our with partners and users to develop a better underregion such as harmonising climate change and standing of weather and climate through village disaster risk reduction activities. training projects, and pilot projects on climate A number of these calls for action will be change and hazardous weather in particularly directly addressed by a newly established project vulnerable villages. funded by the Government of Finland that aims A key part of this will be to assist communito reduce the vulnerability of our Pacific islands ties develop village-level integrated disaster risk to the effects of climate change. management plans. The project, known as FINPAC, will strengthBy working together on project activities withen links between islands communities and in villages and communities, technical language meteorological services in the region so that comand information will be communicated in such munities not only benefit from timely warnings, a way that is culturally relevant, understandable, but are able to use everyday forecast information and practical for the end users. to improve water management, strengthen their

Consequently, this can be better applied by villages for adaptation and mitigation planning. Other outcomes are to develop the capacity of the National Meteorological Services in producing and communicating weather warnings and to raise visibility and sustainability of the National Meteorological Services through a regional ministerial level meeting. This will allow the timely sharing of important information across the region and demonstrates the key role of the Meteorological Services in development and planning functions, both nationally and regionally. By improving the weather and climate services in your country, including early warnings to the most vulnerable groups in the Pacific, we anticipate there will be greater water and food security. Because of their unique place in the community, the important role played by women is given emphasis by the FINPAC project. As well as ensuring the voices of women are heard in the formulation of products and services for the communities of the region, the project also aims to promote meteorology as a potential career for Pacific women. It will also establish a Pacific Women in Meteorology network of existing professionals to provide support and a platform for them to voice their needs and visibility. While the FINPAC project has identified these activities, the onus is also on the National Meteorology Services to work on inspiring change in the workplace to encourage gender equity in their offices. We hope that partnerships and working together will ensure the success of the FINPAC project. We all have a role to play, whether it be constructive feedback or support to your National Meteorological Service, or if you’d like to help inspire change by learning more about what one does in the Meteorology Office at home. Let’s make time this month to commemorate International Women’s Day and World Meteorological Day, both taking place in March. Together, we can make our Pacific communities safer, more resilient and better prepared to weather any storm. My team and I look forward to working with you to make this a Pacific reality. • This month’s column is in commemoration of World Meteorological Day and International Women’s Day. Islands Business, March 2014 43


Business Intelligence

Toyota joins H By Davendra Sharma

O

Power debate...Prime Minister Tuila’epa Sailele Malielegaoi (left) with Leader of Opposition Palusalue Fa’apo II. Photo: www.samoaobserver.ws

Debate over proposed power increase By Merita Huch

T

he proposed 10% increase in electricity tariff in Samoa has received negative responses by the Samoa Chamber of Commerce and the country’s Opposition. While it’s still in its consultation stage, the proposed increase has already caused heated arguments between the country’s Prime Minister, Tuila’epa Lupesoli’ai Sa’ilele Malielegaoi and the country’s Leader of Opposition, Palusalue Fa’apo II. Palusalue says the whole purpose behind this increase is to find funding to repay the US$100 million debt the Electric Power Corporation (EPC) owes the Asian Development Bank for the establishment of the new main power plant at Fiaga. This plant was opened last year. “The government should pay for this debt instead of passing the burden to the country’s businesses and consumers, members of the public”. The Prime Minister in response has hit back at the Opposition Leader labelling his latest complaint as stupid. “Cabinet hasn’t even received anything on this plan and yet he’s jumping to conclusions already. These changes often take years to implement so I don’t understand why the Opposition is even mentioning this increase when it hasn’t even taken place,” the Prime Minister told the media. A feedback from Samoa’s Chamber of Commerce recently shared publicly has prompted the Opposition Leader to raise the matter now. The chamber’s submission to the Office of the Regulator argued that EPC’s proposed price increase is too much. The Office of the Regulator invited the Samoa Chamber of Commerce to review the Electric Power Corporation’s plans to increase tariffs on electricity bills. In its report, the chamber wrote that, “...As the national private sector organisation, the chamber considers that not only would the proposed cost increase place a significant burden on businesses, it would also jeopardise the very industries that contribute the most revenue to the country’s GDP, as well as EPC itself. “ 44 Islands Business, March 2014

Chamber members have continuously expressed their views through consultations and surveys that the high cost of utilities is a significant constraint to doing business. At the same time, the government expects the private sector to drive growth and development, but it penalises those who venture into business by applying high commercial tariff rates on essential services. This situation is counter-productive to the goal of reducing reliance on donor assistance and encouraging sustainable economic growth, the chamber said. To further argue its views, the chamber had spelt out the costs that will be incurred from small businesses to big companies as a result of this increase. The chamber suggested that the national power supplier restructures its tariff increase if it wants less negative impact on the different industries especially tourism if this proposed 10% increase goes ahead. In a simple example, the chamber laid out costs if the proposal is implemented this year from the small business that uses between 2000 and 3000kWh of electricity each month. For every tala paid to EPC in 2012, a business will need to spend 1.035 tala in 2013, 1.081 tala in 2014, 1.181 in 2015 and 1.268 tala in 2016. The chamber’s submission shows that EPC’s own calculations haven’t take into account the price impact on medium and bigger businesses. “Based on the actual electricity usage of a sample of Samoan businesses, medium sized businesses will be liable to pay an additional T$2444 per month comparing 2012 and 2015 prices, and large businesses will cop an increase of between T$12,220 and T$37,600 per month over the same period. “We appreciate that EPC has to pay its debt, but it’s not businesses or consumers’ fault that EPC hasn’t increased prices more gradually over the past few years,” says Chamber CEO Ane Moananu. “That’s why the chamber has recommended that government restructures EPC’s loan with the Asian Development Bank to allow EPC to implement tariff increases in a more incremental manner.”

nly two months after Holden pulled out of manufacturing cars in Australia, Toyota—the highest selling vehicle in the South Pacific region—has followed suit to do the same from 2017. The withdrawal of Toyota—the last remaining car manufacturer in Australia since the 1940s— would almost certainly sound a death knell for Samoa’s Yazaki Corporation. Like Yazaki, thousands of such component supplier companies producing for the three main car manufacturers now risk going under and closing shop. “The shockwaves of this economic tsunami are unprecedented in terms of employment,” cautioned Australian Labor and Opposition leader, Bill Shorten. Not just Australia, where an estimated 50,000 jobs could disappear but also Samoa where up to 1,000 locals face a bleak future as demand for their export products drop. Yazaki Samoa cuts staff hours Yazaki owns Australian Arrow (AA), a large business outfit in Samoa that manufactures and supplies electrical wiring and harnesses to Holden and Toyota in Australia. The Samoa factory makes some of the parts before they are re-assembled in plants in Victoria—which used to be the hub of car manufacturing in Australia. Islands Business reported in January that the departure of Toyota from the region will have a severe bearing on the Samoan economy, which Yazaki’s exports and employment accounted for six percent of the national Gross Domestic Prod-

Give preference to local By Robert Matau

P

acific Islands governments have a responsibility to control tuna fishing in their waters, and should be giving preference to local fishing fleets instead of granting more licences to foreign fishing vessels. Parties to the Nauru Agreement Secretariat’s Commercial Manager Maurice Brownjohn made the comments when asked about the current status of local fishing fleets in the South Pacific states. Brownjohn said government tuna fishing policies should benefit domestic not the subsidised foreign fleets. “The biggest hurdle is this misconception that just one more licence issued is more revenue, when in reality one less licence issued means better catch rates, higher market prices and a better prospect to survive in the domestic industry,” he said. Brownjohn said overfishing was naturally going to affect the supply and demand equation and this had driven all tuna prices down compared to the record prices as recent as last year. “In recent years, even when the purse seine


olden exodus uct. “The demise of the automotive industry in Australia would have a significant effect on the people and economy of Samoa and is a critical aspect of the Australian Arrow (AA) operation which is often overlooked,” said Craig O’Donohue, managing director of AA. The company also announced it would close four days at the Yazaki EDS Ltd premises in Vaitele and following that, all employees from management to line workers will only work for 12 hours a week. Yazaki Samoa’s managing director Funefe’ai Vaai said without trimming back on staff hours, “the company would experience negative impacts in the long term”. Yazaki Samoa’s only hope now will remain with AA’s export business onward sales to Asia and Europe—where the component supplier sells electrical distribution systems. Aussie costs too high Some years back, when Yazaki production was in full swing as it catered for demand for electrical systems from Ford, Holden and Toyota, the company employed double its current workforce. Analysts in Australia estimate that Toyota’s departure from 2017 will create a vacuum of A$21.5 billion in Australia, as well as Samoa. In February, Toyota’s global president, Akio Toyoda and Australian boss Max Yasuda, announced the closure of their Australian operations from 2017, citing the cost of producing in Australia was too exorbitant. They said the “sad truth was that the cost of producing cars was too high”. Since the mid-1970s, real threats began to emerge for the Australian car industry with spiralling inflation, a global oil crisis and the introduction of new

Toyota manufacturing…winding down in Australia. Photo: www.forcegt.com

safety compliance rules. It was then that Canberra stepped in to hand out protection with huge tariffs being placed in cheap imports from Asia, especially Thailand and Japan. However, huge labour costs in Australia have had a huge impact on Ford, Holden and Toyota as they announced their exit from the region over the next three years. Also compounding Australia’s manufacturing and export capability is the high Australian dollar, which shot up to US$1.06 last year and stabilised at US$0.90 in February.

New Prime Minister Tony Abbott has refused further support for the ailing car industry arguing that businesses—be it car manufacturing or airlines (in reference to Qantas and Virgin, who are struggling to make ends meet)—need to learn to stand on their own and not be dependent on subsidies. “Governments don’t create jobs, businesses do,” he told parliament, in stark contrast to his pre-election pledge when he promised to create one million jobs in five years.

spinoffs for the local economy. Brownjohn said the actual fish catch had risen slightly in recent years but the catch per effort has fallen because there were too many boats hunting for the same fish. And this applies to both the purse seine fishery which targets skipjack and longline fishing which targets albacore. “These stocks are not overfished, although localised seasonal depletion is likely with albacore, but overall, the stock needs some governance now before it is too late,” he said. “This is largely in the hands of the islands governments and region themselves. “The additional factors are the United States market for canned tuna including the premium albacore has been declining in recent years, and not just the South Pacific fleets targeting albacore, but Indian ocean and Atlantic albacore fleets are also supplying albacore into this region for processing for the same end markets. He said thus oversupply influenced a fall in prices, thus compounding the economic problems of our domestic industry. Brownjohn said his conclusion in the debate with over capacity and subsidised foreign effort was that foreign fleets could move on to other grounds,

even other oceans, domestic economies and their fleets had few options. “Compounding the issue of growing albacore catch has been the impact of falling catch rates for sashimi long-liners traditionally targeting large sashimi grade yellow fin and bigeye, the weak Japanese market, high fuel and freight costs. “So this has driven both domestic and foreign fleets to shift their focus to albacore where although they are of lesser relative value, catch rates are relatively higher. “It is also frozen at sea and not landed fresh and freight by sea or processed locally, making it cheaper and an economically viable option.” Brownjohn said PITIA and individual domestic industries could be more vocal for the region’s industry promoting domestic benefits to the region’s governments. “The problem is really in the hands of our governments, he told Islands Business. “If they continue to issue more and more foreign licences, and don’t manage foreign access or foreign direct investment companies using “domestic licences” they may enjoy the extra licence revenue, but lose out on the other benefits.”

fishing fleets benchmark was US$5000 a day, some fleets paid US$8000 per vessel per day, especially once days got scarce in a fishing zone. “This year, with prices down, some fleets paid well above the US$6000 benchmark even though due to excessive days available last year and a high supply of catch in the market globally, prices have crashed in the last six months to almost half. “With expenses remaining largely constant, the collapse in recent record price is a collapse in super profits, yet foreign vessels still fish profitably and can still afford to pay more especially when days become scarce,” he said. Brownjohn said fisheries officials were not businessmen and they had a tendency to listen more to the lobby of foreign fishing interests who were keen on getting access at a cheaper rate. “They undermine the domestic interests.” Brownjohn said a good idea would be to extract a fair rent from foreign fleets to the advantage of domestic fleets, or ideally use the fleets to harvest your fish, not let them do as they like. He said the region should give more preference to licencing genuine domestic ventures that actually create jobs and employ locals, which create other

Islands Business, March 2014 45


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