November 2014

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November

2014

Vol. 40, No. 11 V

Contents Sports

31 Down but not out Pacific unions respond to new IRB player rules

Fishery

32 Pacific seals historial tuna fishing access deal Kitibati accused of jeopardising US treaty

Viewpoint

34 Controlled fertility rates linked to economic growth patterns

Environment

35 Protocol aims to protect traditional knowledge from exploitation

Regular Features

5 Views from Auckland 6 Disasters do happen, but are Pacific P countries pointed in the right direction?: Development partners have invested a lot on disaster risk reductions, but is the Pacific disaster ready? Ñp ages 14-20.Cover photo: Casey Deshong

We Say

10 Whispers 12 Pacific Update 36 Business Intelligence

Cover Report

14 Disasters do happen, but are Pacific countries pointed in the right direction?

16 Q&A with Taito Nakalevu of the ACP-EU/SPC BSRP Prroject 18 We need to do more in disaster risk: Tuvalu PM 20 Private sector plays key role in dissaster risk reductions

Climate

21 Study demonstrates value of sustainable forestry Training, acceptance to boost profits

Fiji

22 Audit report reveals worst kept secret

PNG

24 Crime restricts PNGÕ s economic growth Businesses operate at half potential: Report

Politics Tonga

26 TongaÕ s freedom Fighter aims for election victory

Solomon Islands

28 Women candidates impact on election line-up Husband and wife bid for parliament seats

30 Forum allows Fiji back into regional group But Fiji wants Australia, New Zealand out

Islands Business, November 2014

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

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

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Column

What does a regional seat at the top table bring?

New Zealand’s long campaign to get itself a seat on the coveted United Nations Security Council came to fruition last month, when it quite comfortably won votes from 145 of 193 UN member states. It needed just 129 on the day. Turkey and Spain were the two other contenders. Spain won the second of the two seats up for grabs this year, with Turkey losing out. Both Spain and Turkey have each held seats only a few years ago but New Zealand has regained a seat after two long decades.

The Security Council is made up of 15 seats, with five of them being permanent seats. These are the United States, the United Kingdom, France, Russia and China. These were the five biggest nations on the Allied side in World War II, immediately after the conclusion of which the United Nations was formed.

The five can also be seen to represent each of the post-war but now anachronistic classification of first, second and third worlds (though many ‘first’ worlders still use ‘third world’ in mostly a disparaging way, while the almost never-used ‘second world’ has completely vanished behind an imaginary iron curtain, as it were).

The 10 non-permanent seats are rotated every two years, across groupings of countries – so New Zealand will hold the seat for 2015-16 (Angola, Malaysia and Venezuela were elected unopposed in their respective groupings last month). New Zealand belongs to the ‘Western Europe and Other States seats’ grouping, and is the smallest among the three countries that contested in that grouping.

Countries are known to splurge millions of dollars to garner votes from UN member states to get themselves on the powerful council.

The New Zealand Government, though, has been at pains to stress that it has run its own campaign on a shoestring, throwing in a junket or two for a few leaders from around the world in its salubrious destinations around the country. It has also been actively canvassing its most trusted friends in its very own neck of the woods – the Pacific. Over the past few years it has worked hard in the

Pacific Islands region, where so many tiny UN member states make up a neat bunch of votes.

Pacific Island support Evidently, these Pacific Island friends did not let New Zealand down. The handsome margin of the win underscores that. New Zealand has good reason to be grateful to the Pacific Islands. In celebrating New Zealand’s win, Prime Minister John Key said it was also a win for the small countries of the world. He said New Zealand would be the voice of the small countries on the Security Council. No small country can really muster the resources to run a campaign for a seat. In the Pacific Islands region, perhaps Papua New Guinea is the only country that could possibly make a bid at some future stage. The rest are too small and would lack the resources to even contemplate making a bid.

But can the small nations of the Pacific take a vicarious delight in New Zealand’s win? Because of its proximity and long and deep historical relationships with many of the countries, especially in Polynesia, and by virtue of being a small nation itself, the Pacific Islands states can well see a bit of themselves being represented by New Zealand at the UN’s top table.

New Zealand undoubtedly understands and appreciates the islands’ collective concerns: the tyranny of distance, the growing effects of climate change, the need for sustainable energy solutions and the need to put in place strategies for survival in the face of natural disasters. In that sense, New Zealand is the best bet of the UN’s member states in the Pacific Islands region. In fact, New Zealand could take on board concerns even of non-UN regional members like the Cook Islands and Niue.

But is the UN Security Council as a platform relevant to these real concerns of the Pacific Islands? The powerful body essentially concerns itself with the maintenance of international security and peace. It tries to mediate between warring nations and factions in the world’s security hotspots. It works hard with stakeholders to try to put an end to conflicts that invariably cost hundreds

Views from Auckland

BY DEV NADKARNI

of thousands of lives every year and cause injury and misery to many times more. By its very nomenclature, it is involved almost solely in the business of security.

Fortunately for Pacific Islanders security is not a concern in the same sense as it would be for Syrians, Iraqis or the citizens of several other troubled nations in the Middle East and parts of Africa. In fact, a visiting Middle East leader recently asked the Prime Minister of a Pacific Island country if he could export peace to the trouble torn regions of the world. If at all, the Pacific could teach a thing or two to the bigger nations only if they had the willingness to listen. But that is an opportunity that will never come to pass.

Risk of displeasing big boys Over the next two years, New Zealand will have the eyes and ears of the world’s most influential powers as it helps guide security policy in the world’s worst security hotspots.

In the process it also risks incurring the wrath of the permanent members, the big boys who more often than not disagree on the most important issues. Policy paralysis due to disagreements has come in for well-deserved criticism in the recent past and countries have been forced to act in conflicts even without consultations with the Security Council.

For New Zealand itself, there is little more than prestige that this new seat on the UN Security Council brings. As one commentator said, it will not help the country export even a kilo more of cheese or beef. But that is not the point of acquiring the coveted seat for just two years, as it happens to be. Rather, the stakes are long term. A couple of years on the top table will potentially bring tremendous influence to New Zealand. Its leaders will have the opportunity to rub shoulders with the world’s most powerful political elite in that short time frame – something that would have been impossible without the coveted seat.

That is the real opportunity: to build future influence for the benefit of its own economy and the wider region – assuming it feels grateful to the little Pacific Island nations, which helped in no small measure to get it there.

Islands Business, November 2014 5

WESAY “As well as insurance schemes designed at addressing immediate post disaster mitigation, there has to be a wider scheme to help countries get back on their economic footing. Neglecting that will still need extra aid funding to address economic issues later”

I

t’s that time of the year, again, when much of the Pacific ning, knowhow and, of course, a source of instant funding following Islands region braces for what everyone calls the ‘cyclone the disaster – not waiting for the international community to send season.’ Over the next several months, weathermen and in handouts across several weeks. None of these have been evolved weatherwomen across the region will keep their eyes peeled within the islands in all these decades. Any help in developing these on the dynamic graphic representations of weather on their has come from the outside. But it is heartening to note that serious computer screens to predict which complex weather system will hit steps are now being taken in this direction over the past few years. which island nation, when and with what intensity. It is a rare year Much of the western world has institutionalised insurance schemes when the region is spared of severe weather phenomena. to deal with natural disasters. New Zealand’s Earthquake CommisWeather related destruction on an annual basis is more the norm sion (EQC) is a good example. The organisation paid out hundreds than the exception. Such are the wages of being situated in a zone of millions of dollars to affected citizens who lost their homes during that denizens of temperate climes have long called paradise. As we the Christchurch earthquakes. Not that the disbursement was smooth in the islands know so well, Paradise is Janus faced. One of the faces and trouble free. It was fraught with all sorts of problems and has graces the glossy tourist brochures, websites and billboards of the left behind in its wake hundreds of disgruntled claimants. But the holiday merchants with alluring pictures of the formulaic 4S of sun, point here is that there is a system and it does come to the aid of the sand, sea and sky. The other is the one that peers out mournfully in affected to mitigate their suffering. It is a boon for many who cannot front of the wreck of what was once a dwelling from the brochures afford private insurance even in the developed world. of global charity organisations. Clamouring for all sorts of help in cash and kind – most often to tide over the hardship caused by a In the Pacific Islands, where financial incluStates must recent natural disaster. sion is a long way behind the western world, help pay for These two faces symbolise the contradictions that most small deit would be ingenuous to expect people to take insurance veloping economies face. The slickly packaged paradise proposition out private insurance policies. The size of the that supposedly rakes in the dollars from holidaymakers from distant economy and the level of wages simply make lands is scarcely enough paying premiums imto create a system for possible for most of the mitigating the horrenpopulation. Rather, the dous effects of disasters Governments should the denizens of these have had in place an countries are bound to overarching insurance face year in and year out. policy paid by the state That has left them with with help from interno option but to depend national financing and on the generosity of these reinsurance agencies same distant countries on the lines of the EQC to come to their aid in decades back. However, the aftermath of natural this is easier said than disasters. Collectively, done because it needs a the islands are estimated mix of many talents and to lose upwards of $250 commitments to evolve million annually on avsuch a system – most of erage. all that one commodity Unfortunately, so far, that is perpetually and Nature’s wrath ... Aftermath of the September 2009 tsunami in Samoa. Photo: file the ambulance at the botwoefully in short suptom of the hill has been ply: political will. the only strategy available But it is good to note to island Governments. Though it is impossible to stop natural disasthat such a scheme is on the anvil and being brought together. The ters from happening, much can be done to prevent their ill effects and Pacific Catastrophe Risk Insurance pilot insurance scheme seems mitigate the suffering of victims in their aftermath. That needs planlike the long awaited solution. The pilot is being deployed over the

6 Islands Business, November 2014

WESAY past one year to ascertain the demand from Pacific Island countries to use insurance as an instant source of cash to be available for dealing with the immediate effects of dealing with the aftermath of natural calamities. Though not all the island nations seem prepared for it in terms of coughing up the necessary premiums, that are all eager to participate, which is a good beginning.

Premiums are being determined differently for different islands because they come with different risk profiles. But the most important development here is that something is being done about this longstanding issue at last. While this insurance scheme will likely address the immediate survival needs of the affected in the aftermath of a natural calamity, it is unlikely to help the country’s economy come back on track. It might be argued that this needs to be addressed by commercial and business insurance schemes.

This argument might well be valid in a developed economy context.

But it does not hold water in the Pacific Island context where the agricultural economy is one of the biggest sources of livelihoods –

that too peopled largely by smallholders, with no economic backing.

The effects of natural disasters on smallholder activity can have ripple effects on a country’s larger economy. For instance, the cyclones that hit Fiji a couple of years ago nearly destroyed its pawpaw export trade.

The void in their traditional export markets was quickly filled up by produce from the Philippines. Though Fiji pawpaw is now back, they are not at the same level that they were in these export markets.

As well as insurance schemes designed at addressing immediate post disaster mitigation, there has to be a wider scheme to help countries get back on their economic footing. Neglecting that will still need extra aid funding to address economic issues later. Focusing on immediate post disaster mitigation will merely serve in postponing the need for traditional aid to help the country get back on its feet.

What probably needs to be done is evolve a two tier scheme to address both the immediate after effects of natural calamities – and helping microenterprises back on their feet for they indeed are the backbone of many an island nation’s economy.

“In a scenario where even countries with state of the art healthcare systems are finding themselves wanting in adequately dealing with this viral menace, where do poorly resourced countries like those of the Pacific Islands stand in the increasingly likely event of an Ebola-infected patient landing on their shores?”

M

ore recently in our globalised world, the word contagion has increasingly come to be used in the contexts of terrorism or financial crises – or for that matter anything that spreads fast and with little control, such as even social media. But it is only in the past couple of months that the real sense that the word had been used all along in history is back in circulation – the uncontrolled and alarming spread of disease. And that dreaded disease, as we only too well today, is Ebola.

No contagious or communicable disease since the spread of the plague in the early part of the previous century has spread so much dread and alarm as Ebola, with the possible exception of HIV and AIDS. Diseases like SARS (Severe Acute Respiratory Syndrome), more popularly known as swine flu, did cause a scare in the early years of this century but not on a scale that Ebola is causing around the world at present.

Though the virus was first identified as early as in 1976, it largely remained contained in a small pocket of Africa. After raging for a few years, the disease that it caused seemed to die down or at least went unreported for more than three decades. And then late last year and early this year, it reared its ugly head again with reports of deaths in West African nations. The disease that spreads through contact with bodily fluids of affected people largely seemed to be contained within

the countries of western Africa.

All this while, the world media, the global agencies that work the levers of power and the whole of the western world scarcely took notice of the unfolding disaster. It was only when the first case reached the western world that ham fisted efforts began to be made to deal with the contagion, in a manner that is already beginning to like too little, too late.

A United States citizen who returned from Liberia, and who had contact with an Ebola patient while there, was the first western citizen to succumb to the virus in September. His death was probably preventable, but it has been found that the hospital that treated him was hardly prepared for dealing with the Ebola crisis, though it was widely assumed that it was ready to deal with the contingency. A couple of nurses who treated him and others who might have been in contact with the man have been either quarantined for observation or have been found to be affected.

A case in Spain just weeks later and an alarm in Australia were enough to send the world into panic mode.

The US and Spanish cases abundantly show that no country was well and truly prepared for dealing with Ebola. As the West stumbles to put in place measures to identify deplaning passengers, quarantine, observe and treat them, everything that they do seems like a kneejerk reaction – a panic response. Meanwhile, there is no cure or antidote in Islands Business, November 2014 7

WESAY sight and the World Health Organisation (WHO) says it needs more than a billion dollars to deal with the disease. More than 10,000 cases a week are expected to come to light before Christmas. To say that this is a most alarming situation is to understate it.

While a possible cure for the disease in terms of developing a vaccine or a drug to counter its virulence is close to a year away if not more, there is no doubt that the present state of affairs could have easily been avoided if the outbreak and early spread of the contagion was not treated as ‘just another African problem’ by the western world.

It comes hardly as a surprise that people of the likes of former UN Secretary General and Nobel Laureate Kofi Annan have been acerbic in their criticism of the West.

The scene seems to be getting progressively Everything they grim with each passing week. From sending in do seems like a soldiers and military hardware to contain the kneejerk reaction terrorist contagion in the Middle East, the West has been forced to commit resources to send a different kind of soldier to a different kind of battlefield – one that is far deadlier than any form of terrorism, especially for impoverished nations that have no medical and healthcare infrastructure worth the name. Just as the “coalition nations” were putting together strategies to counter Islamic State, the same players are now preparing to send medical teams to the worst affected parts of Western Africa.

In a scenario where even countries with state of the art healthcare systems are finding themselves wanting in adequately dealing with this viral menace, where do poorly resourced countries like those of the Pacific Islands stand in the increasingly likely event of an Ebolainfected patient landing on their shores? When the Queensland case

was reported in the Australian media, a Papua New Guinea newspaper screamed with the headline ‘Ebola only 90 minutes away from our shores.’ Yes, to be forewarned is to be forearmed, as the old saying goes. But are the Pacific Islands’ healthcare systems forearmed at all?

The new Fijian Minister of Health said the country was prepared to meet with the Ebola contingency. Can he be taken for his word?

As the cases in the US and Spain have showed, it takes much more than just quarantining of the affected patient to curb the spread of the disease. It needs elaborate systems to be put in place to deal with a suspected case in the two to three week incubation period until the patient tests positive for Ebola. This means not just adequate medical care but also observation, testing and most importantly, monitoring of caregivers who are in contact. To put all this in place in the islands environment is an extraordinarily demanding task.

Effective measures to prevent entry of the virus into the country and to identify and deal with a suspected patient will need committed coordination between several agencies including the airline, airport staff, ground transportation agencies and the hospitality industry besides the entire medical and healthcare system of the country.

Rather than make statements that the islands are prepared for such an eventuality, politicians must adequately warn people and put in place measures with help from their ANZAC neighbours in both knowhow and equipment for quarantine, handling and monitoring – even if no country, with howsoever sophisticated systems in place can guarantee against Ebola.A single case in a Pacific Island country could spell disaster for the entire region’s tourism industry and by extension its economy.

A coordinated strategic response between island nations and New Zealand and Australia urgently needs to be put in place.

“The citizens of all these countries must pat themselves on the back for not only achieving this success but also for helping deliver clear verdicts with no wriggle room for the political class to exercise any Machiavellian machinations, which they are so fond of and prone to using if they have even the slightest of a chance”

A

spate of successful elections in the South Pacific in the latter half of this year spells a resounding win for democracy in the region and for Pacific peoples. There is no such thing as a perfect democracy, just as there is no such thing as a perfect world, but the elections around the region have shown that the will of the people has prevailed and has been respected by the political class.

Election fever caught on like a contagion around the region since 8 Islands Business, November 2014

May this year. New Caledonia, the Cook Islands, New Zealand and Fiji have already had elections since. The region and the world now await elections in the Solomon Islands and Tonga scheduled for the 19th and 27th of this month respectively.

The Pacific Island region’s most anticipated election was undoubtedly the one in Fiji, since it had been in the making for eight years.

Planned and implemented under the watchful eyes of international observers, the Fijian elections were a success, despite a few complaints.

WESAY As well as Fiji, all other elections held so far have been smooth and largely non-controversial, except for some procedural issues in the case of the Cook Islands that have taken quite a while to iron out. These changes in the political landscape could not have been achieved without the vigorous and decisive participation of the people of these countries at the very grassroots levels. The citizens of all these countries must pat themselves on the back for not only achieving this success but also for helping deliver clear verdicts with no wriggle room for the political class to exercise any Machiavellian machinations, which they are so fond of and prone to using if they have even the slightest of a chance.

There is no reason why the forthcoming elections in the Solomon Islands and Tonga, too, like the others around the region this year should not go through smoothly and non-controversially. It is understood that the preparations in the two countries have been satisfactorily under way and high voter participation is anticipated.

In Tonga, an increase of more than 8000 new voters over the last elections has already been registered. The highest percentage of voters – at 38 per cent – is between the ages of 21 and 35 years old.

This augurs well because Tonga’s democracy is relatively new and is unique in many respects, with its long entrenched monarchy still looming large over the country’s politics. The younger generation clearly wants change.

Also, the traditional profile of candidates is changing dramatically.

As against the traditional hackneyed image of the stodgy, power hungry politician, there is now an increase in the number of younger, professionally qualified men and women who want to make a genuine difference to their country. There is also an increased number of Tongans living abroad who are wishing to come back and contribute politically and economically to the betterment of their country.

Several developments in the course of these elections around the region point to a greater awareness among people and their rising appetite for democracy. Clearly, the growing appreciation for democratic principles is encouraging people to value it more than their own personal or group interests. An excellent instance of this has taken place in Tonga.

The 700-member strong Public Service Association’s planned strike action over the demand for a five per cent increase of cost of living allowance (COLA), an issue that has been long outstanding, has been dropped in view of the forthcoming elections. Had the strike gone ahead, it would Democracy is relatively new and unique

have potentially crippled the country’s administration and prompted the powers that be to invoke emergency powers, which could very well have resulted in postponing the elections.

The union and its leader, herself a candidate in the elections, have thus demonstrably put the cause of democracy and the country’s larger interests ahead of the members’ long standing demand for better monetary benefits. This is as clear an indicator as can be of the value people are putting on democracy, even if it hurts them in the short term. The union has instead, most practically, decided to put forward their demands to the newly elected government, which makes far better sense than endangering the election process itself.

In the Solomon Islands, again, the candidate profile is undergoing a change. There are more professionally qualified candidates in the running. The most prominent among them is one of the region’s most respected professionals, Dr. Jimmy Rogers, the former Director General of the Secretariat of the Pacific Community, who is contesting for the first time. The country’s elections office has assured voters that it has compiled the most comprehensive voter list ever and that preparations for the entire electoral process would be in place well in time for polling day.

Stricter implementation of the code of conduct for candidates has resulted in at least one candidate paying off his personal debts in time to ward off bankruptcy, which is a disqualification for running for office. Some seventy candidates running in this election have signed an ‘Integrity Pledge’ instituted by Transparency Solomon Islands. While this is largely symbolic, it is a small but significant development that there is growing respect for probity in public life and good governance. It also indicates that there is greater public awareness of these issues.

But probably the biggest development in all these elections throughout the region is the huge surge in numbers of women candidates and successful women contestants. The Pacific has long been reviled as a region where women’s representation in Parliaments, the public and private sectors has been abysmal. The Pacific seems to be doubling up its efforts to put that sullied reputation in the past. While Fiji now has a woman Speaker in Parliament with several women Members of Parliament as well, Tonga and the Solomon Islands are fielding more women candidates than ever before, with the latter expected to field as many as 30.

There is little doubt that having tasted democracy, the people of the region are taking a great liking for it.

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

Islands Business, November 2014 9

Whispers years into mining for bauxite in a remote province in northern Fiji, the Chinese owned mine is now considering processing the raw materials at site. For now, ore from the Wailevu district of Bua Province on Vanua Levu are shipped by tankers bound for processing in mainland China. Now the chief government administrator on the island has said the company is being asked to consider on site processing. One of the biggest hindrances has been power capacity, but the government administrator said the issue will be resolved through the construction of a hydro power plant. Since it began mining two years ago, the Chinese company has already copped a hefty fine for loading its ship without the presence of local Custom officials.

Drama in the royal court … The benign reign of Tonga’s newest monarch hit the newspaper headlines recently when King Tupou VI (pictured) reportedly intervene in the desire by one of his sons, fourth in line to the throne, to join a religion different to the one of which his father is titular head. The newspaper said the King sent the Prime Minister of Tonga and the Prime Minister’s son, an officer in the Tongan Defence Force, to intervene on his behalf, stopping plans by Prince Ata to be baptised into the Mormon religion. A recent government survey has found that the Mormon Church has displaced the Roman Catholic Church as the second largest religion in the kingdom, second only to the Free Wesleyans.

 MSG leadership row … The whisper is that if the Solomon Islands is not careful, it may lose the leadership of yet another powerful regional body, that of the Vanuatu-based Melanesian Spearhead Group. Readers of a national newspaper in Honiara were treated to the rare public spat between an aide of caretaker PM and that of the head of the MSG and seasoned Solomon Island and Pacific civil servant, Peter Forau. At the core of the row is the near expiry of the DG’s term at the MSG and the need for Honiara’s endorsement for a renewal of his contract.

The polls in Solomons this month may just put this matter further onto the backburner.  Two container loads … While one regional head awaits his fate, another has packed up and heading off home. After six years as head of the Pacific Islands Forum Secretariat in Fiji, Samoan jurist and ambassador, Neroni Tuiloma Slade is making way for PNG lawyer and World Bank adviser Dame Meg Taylor. It’s not known where the Slades plan to settle, although freight companies have been hired to send a container full of household items to Auckland, and the other is Apia-bound.  Bosses and their secretaries … Much has been said and written about the perks and excesses of top bosses of regional organisations. One that got the brunt of many 10 Islands Business, November 2014

whispers in this column is now out of a job, after months of eyebrow raising activities including taking his office secretary on tours of the Pacific. Last whisper was that the same guy is running for public office. It seems, though, that the lessons have not sunk into some of his former work colleagues. At one recent international meet, a boss spent two weeks there with his secretary. The whisper is that this is not the first time the two have been seen together at international gatherings and events.  Media’s bill in parliament … Samoa heard some very colourful language from its very colourful leader at the recent debate about the country’s proposed media bill. The proposed media council bill of 2014 aims to legislate the formation of Samoa’s journalist association and enforce a code of ethics for its scribes. Adding to the debate, Samoa’s PM Tuilaepa Sa’ilele Malielegaoi said the bill would counter the “high-minded mentality that the media can topple governments.” Samoa Observer newspaper also quoted him as saying that his party has seen such mentality in Samoa in the 32 years it has been in power.

He also claims that “corrupt and dirty tactics” that had plagued English newspapers owned by the world’s media baron Rupert Murdoch had also been employed in Samoa.  Chinese fined for Bauxite … Two

Dressed to run … Always good to take in local knowledge is the takeaway message for disaster experts in Samoa. Working with the local disaster management office on the ground, foreign consultants had suggested signposts erected around the island, indicating where to run in the event of a tsunami.

Of course the sign will always point inland, away from the coastline. Preliminary testing of the signposts hit a snag though. When the proposed signboard, which shows a picture of someone running away from a huge wave was shown to a group of villagers, the elders demanded urgent re-drawings of the signage.

They wanted the person shown on the sign to be wearing clothes, because if it is not, it could be sending the wrong message that to run away from a tsunami, people need to run naked!  Fiji eyes UN leadership … The buzz around UN headquarters in New York is that this seems to be the year of the Pacific.

New Zealand is now a member of the powerful Security Council and if all goes well, a Fijian may soon head one of its peacekeeping operations in the war torn Middle East. One of the country’s most senior military officers Brigadier General Iowane Naivalurua has been shortlisted for the role of Commandeing Officer of the United Nations Disengagement Observer Force. He is currently serving as Fiji’s Ambassador at Large. UNDOF is mandated to monitor the ceasefire

Whispers World rugby and Fiji … The world’s rugby body is least impressed with Fiji’s new television laws, that forces holder of the exclusive broadcast rights to share footage with other TV companies in the country, including state TV. “We are perturbed by the far reaching effects of the Television (Cross-Carriage of Designated Events) Decree 2014, which became law on 29 May 2014,” an IRB spokesperson tells this magazine. “The Decree was introduced without prior consultation with the sporting event owners who have properties that are designated as listed events. The IRB was not consulted in the process, which is quite surprising given we have three separate events - Rugby World Cup, Rugby World Cup Sevens and HSBC Sevens World Series, which have been designated and are therefore the most affected sports body under the legislation.” IRB says it has sought more information from the Fijian Government. The world rugby body made its views known to Fiji TV, current holder of IRB-sanctioned games, at a meeting in Hong Kong last month. Under Fiji’s new TV decree, all three TV companies have to share coverage of events that the government decreed as of national significance with a cost-sharing formula based on a TV market share study done for the government by a subsidiary of the Washington DC-based PR guru, Qorvis. The company currently holds a PR contract with the Fiji Government. agreement between Syrian and Israeli forces in the Golan Heights region. More than 1000 Fijian men and women soldiers are already serving under UNDOF.

said breached parliamentary protocol by not offering the president the customary bow when he opened the parliamentary session. 

 Parliamentary etiquette … After eight years in the political wilderness, Fiji’s 50 parliamentarians are fast learning the ropes of a parliamentary democracy, the accepted norms, etiquette and protocols. Sitting just a fortnight after their win in Fiji’s first general elections, eight years after the last elected parliament was deposed by the military, a few legislators were grappling with the correct form of addressing their fellow members, and “madam Speaker,” as opposed to “Mr Speaker sir.” Elected Attorney General now Finance Minister also, Aiyaz Sayed-Khaiyum in his maiden speech had to publicly offer an apology to the country’s president. Sayed Khaiyum said he was offering the apology on behalf of the opposition members whom he

Compassionate robber … A robber in Guam claimed headlines in the overseas media for all the absurd reasons. Armed and dangerous, the robber felt the need to apologise to two scared casino staff offering to hug them before running off with thousands in stash.

Entering the Lucky Land gambling room in Hagatna one October night, the robber send shivers to many patrons and staff with his silver gun. The masked man demanded cash from casino staffer, Genevie Santos who promptly obliged. Surveillance cameras showed the man stuffing up to US$5000 before fleeing.

• Whispers is compiled by the Editor.

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

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Islands Business, November 2014

Pacific Update

War leaves a lasting legacy of unexploded

By Nic Maclellan

I

n September 1944, US Marines stormed ashore the beaches of Peleliu Island in Palau. The assault was preceded by a massive naval bombardment and air strike, to weaken the Japanese forces which were hidden in caves or entrenched in concrete bunkers.

Seventy years later, the people of Peleliu are still dealing with the legacy of this military conflict, in the form of unexploded ordnance (UXO). Locals on Peleliu or visiting tourists still come across high explosive shells, sea mines, grenades and torpedoes that failed to explode in the 1940s, but retain their explosive charge.

Today, young Palauans are being trained to help with the slow and painstaking task of finding, identifying and removing thousands of these dangerous weapons.

The British non-government organisation Cleared Ground Demining (CGD) is working with a team of young Palauans to remove the UXO that still litter agricultural land, gardens, beaches and tourist sites.

Since September 2009, CGD has removed over 32,000 items on Peleliu.

Technical field manager Andrew Johns said

by aircraft, with another 600 tonnes fired from US Navy vessels. CGD’s community survey on Peleliu found that 31.2 percent of households had some form of UXO contamination. There are also hazards to key infrastructure on other islands: the de-mining team located a 1,000 pound bomb in the capital Koror, close to the city’s fuel supply and water storage facility.

Although CGD has received recent support from Australia for the renovation of a new Big bang theory ... Young Palauans are trained to remove unexploded WW2 training facility, there is still ordinance. Photo: Nic Maclellan insufficient funding to conduct de-mining activities across the whole of much of this weaponry is still dangerous Peleliu. For this reason, activities are focused despite the passage of time: “Seventy years on key areas that are likely to be visited by on, things still go bang!” tourists or used by local villagers.

Johns said that there were a range of enviOne of the most heavily bombed targets ronmental hazards from the ageing weapons: was Japan’s wartime airstrip on Peleliu.

“With sea mines corroding in the salt water Today this landing strip is used by planes for so long, picric acid leaks into the marine transporting tourists between Koror, Peleliu environment, which has a damaging effect and Angaur, and local authorities are eager to on the reef or mangroves.” ensure there is no ongoing hazard.

US military records for Palau show that Andrew Johns said the work to clear land 2200 tonnes of ordnance were dropped

Cyberbattle for the region’s ocean resources

By Lisa W-Lahari/FFAfeatures

H

ow does a 10-day birthday celebration happen across the entire Pacific without a single mention? The answer is Kurukuru, the region’s most comprehensive maritime surveillance partnership targeting illegal, unregulated and unreported fishing in Pacific waters. In the same way that the vessels they are watching sweep for tuna, maritime surveillance relies on a strong code of behind the scenes silence. Kurukuru marked its tenth year with the hum of computers and fingers on keyboards in lieu of a birthday jingle; candles and cake replaced by the colours of Google Earth in a room lit up by flat screens.

A decade ago when the first Kurukuru operation was launched by the Pacific Islands Forum Fisheries Agency, that effort relied on coordination, information-sharing, and communications technologies to help meet the resource challenge of keeping watch over tuna fishing activity in more than 30

12 Islands Business, November 2014

million square kilometres of ocean. For Cook Islander Tuariki ‘Stu’ Henry, maritime policing over fisheries activity has gone through huge changes to ensure it keeps track of the vessels tracking tuna across our oceans.

“The biggest change is technology, and using the internet has changed everything,” says Henry, “It’s all computers now, keeping your thinking cap on, and tracking for suspicious activity. The whole ball game has definitely changed.”

Henry was part of the joint control and coordination centre for Kurukuru 2007, in Tonga. By 2009, the FFA Regional Fisheries Surveillance Centre at the Honiara headquarters took up that nerve centre function.

Over the course of recent operations, in addition to all of the contacts consistently monitored through AIS, WCPFC VMS and FFA VMS, 7088 contacts have been detected by participating forces and 1646 have been boarded, resulting in 55 disciplinary actions.

Enter the mother ship for Kurukuru and

regional fisheries surveillance – the Regional Information Management Framework or RIMF. A web-based portal covering different aspects of fisheries, the RIMF provides the network that helps the Regional Fisheries Surveillance Centre to work the way it does.

FFA IT Manager Kenneth Katafono says the RIMF integrates data from other systems such as SPC’s TUFMAN system for fishing catch and effort, PNA’s FIMS system for the Vessel Day Scheme or WCPFC’s Registry of Fishing Vessels.

The focus on compatibility rather than competition is what gives RIMF its edge as a regional framework for using sharing information to fight IUU fishing.

Funded by FFA partners Japan and the EU, along with founding members Australia and New Zealand, FFA’s Secretariat is working with national fisheries information system counterparts, and ensuring a model that works, “We develop the tools that are of priority

bombs near the airstrip is time-consuming: “We mark out an area where we want to do an investigation. Every 10 metres, we create a narrow clearance area and extend this 50 metres into the bush. This area is cleared by hand, with people probing forward on their hands and knees. If we find ordinance, we clear the area in between these paths.”

As well as removing unexploded weapons, CDG’s Cassandra McKeown says the organisation runs education activities for the community: “We have an awareness programme to remind everyone about how dangerous the bombs really are, so they stay away from the contaminated areas.”

Palauan trainees like Grandy Ngirabiol and Morgan Matsuoka conduct risk awareness sessions in villages and at schools. They’ve also deployed signs depicting different types of weapons near tourism sites, to ensure that visitors do not touch any items they discover.

Newspaper advertisements offer a free Tshirt when people report the location of an unexploded device.

The problem of UXO is not limited to Palau, but affects other countries such as Kiribati, Papua New Guinea and Solomon Islands.

At this year’s Pacific Islands Forum in

Palau, Solomon Islands Prime Minister Gordon Darcy Lilo told Islands Business: “It’s a significant issue for my country. We had an ordinance team that has trained up Solomon Islands staff to do the job. It’s totally important to clear unexploded ordinance from both land and sea, to allow people to develop the coast and the marine environment.”

At their 2011 meeting in Auckland, Forum leaders declared that “UXO poses a serious obstacle to development.” Their final communiqué expressed concern “at the continuing existence of unexploded WWII ordnance (UXO), which remains a human security problem for many members, as well as a threat to public health, safety and the environment.”

The same year, the Forum Secretariat published a report by Steven Francis and Ioane Alama on UXO in the Pacific, with case studies in four countries. The Forum launched a Regional UXO Strategy Framework and called on donors to help address this long neglected issue.

Beyond the presence of UXO on beaches and in the bush, there are also serious threats to the marine environment, following the ocean dumping of hazardous weaponry. At the end of the First and Second World War,

armies were left with stockpiles of unexploded bombs and artillery shells, including weapons filled with chemicals such as mustard gas and a blister agent called Lewisite.

To get rid of these munitions, the United States and allied armies often dumped them in the Pacific Ocean.

According to US Defence Department records, weapons dumped off the coast of Hawai’i include nearly 15,000 mustard gas bombs, more than 30,000 mortar shells containing mustard agent, and more than 1,200 one-ton containers of sulphur mustard and the blister agent Lewisite.

In September 1945, more than 4,200 tons of toxic artillery shells were taken from Guadalcanal in Solomon Islands and dumped in the ocean off the coast of New Caledonia. The US Army and the Australian Defence Force dumped 21,000 tons of chemical warfare munitions into waters off Cape Moreton in Queensland.

As Islands Business reported in February 2012, countries like Solomon Islands and Federated States of Micronesia are also seeking international support to deal with potential oil leaks from sunken World War Two warships, which could threaten coastal environments in Chuuk and Guadalcanal.

port to help FSM make the most of the RIMF is already well underway.

“Through the IMS, we hope that sharing information—not just as NORMA but others also sharing information through our IMS—can enhance and improve our coordination and information sharing.

We see this as the cutting edge development that will transform how we manage our fisheries and plan and implement our MCS activities,” says Pangelinan.

“The Regional Fisheries Surveillance Centre and the Regional Information Regional force ... Operation Kurukuru 2014 Chief of Staff Tuariki (Stu) Henry of the Cook Islands, (front, centre) at the Management in Fisheries play a vital FFA Regional Fisheries Surveillance Centre in Honiara. Photo: FFAmedia role in the effectiveness of our regional monitoring, control and surveillance program,” says FFA Director-General James to the members first, and give them access ing closer to real-time access to fisheries data, Movick. to other tools that have been developed for a huge help in the fight against IUU fishing.”

“The timing, the available science, the others if they wish to have it,” says FFA Access to the RIMF portal with a national numbers of fishers in Pacific EEZs and the Director-General James Movick. information management system in place just realities facing some Pacific fleets are such He says the sheer size of the Western Cenmakes fisheries management more effective, that ensuring we are able to get our fisheries tral Pacific Fishery and the diverse nature of says FSM’s Eugene Pangelinan. intelligence as close to real time as possible FFA’s membership “makes the RIMF/IMS The Deputy Director of FSM’s National will be the deciding factor in managing a viwork exceptional and sets the Pacific apart.

Oceanic Resource Management Authority able tuna fishery into the future.”

There’s also the exciting potential for movsays the national information systems supIslands Business, November 2014 13

Cover Report

Danger zone ... Solomon Islanders come to grips with the impact of recent flash flooding which devastated parts of the capital, Honiara in April 2014. Photo: Solomon Star

Disasters do happen, countries pointed in

G

By Dennis Rounds

eographically, the Pacific Island Countries (PICs) fall within one of the most disaster-prone regions on earth.

And the region’s combined population of almost 10 million people is vulnerable to natural hazards which include floods, droughts, tropical cyclones, earthquakes, volcanic eruptions, and tsunamis.

While most PICs depend largely on development relief assistance 14 Islands Business, November 2014

from international donors and on re-adjustments to domestic budgets, much of the focus has continued to be on post-disaster management rather than on disaster risk management.

In the case of international donors, apart from post-disaster relief assistance, the emphasis of development programmes thus far appears to have been more towards disaster awareness programmes aimed at minimising the impact on the poorer and more vulnerable sectors of Pacific society.

Increasingly, the question is being asked: Should the PICs be satisfied with the “fire engine” and “ambulance” approach to post- natural

Cover Report

but are Pacific the right direction? disasters/hazards in the region or should they also begin serious discussion with donors on the issue of disaster/hazard risk management through a more economical “regional insurance scheme”?

Work in this area has already commenced in a programme initiated in 2007 by the Secretariat of the Pacific Community (SPC)/Applied Geoscience and Technology Division (SOPAC), the World Bank, and the Asian Development Bank.

According to a World Bank report on the initiative, the average annual direct losses caused by disasters in the Pacific region are estimated at US$284 million.

“Since 1950, natural disasters have affected approximately 9.2 million people in the Pacific region, causing 9,811 reported deaths.

This has cost the PICs around US$3.2 billion (in nominal terms) in associated damage,” the report said.

“The consequences of natural disasters are especially dire for the poor who tend to live in higher risk areas, and typically have fewer options in terms of protection or risk mitigation. Population pressure, compounded by the effects of climate change, is likely to increase this vulnerability,” the report went on to say.

“Recognising these trends, there is now widespread acceptance of Islands Business, November 2014 15

Cover Report the need to mainstream disaster risk and climate change in development planning and financing,” the report suggested.

An Islands Business source says past experience has shown that one of the main hurdles to Disaster Risk Reduction (DRR) in the Pacific is the failure of governments to incorporate the issue in their national planning and budgetary processes.

“Do governments take it seriously when preparing national budgets? How much is actually invested in disaster risk reduction?” our source (a retired regional expert on disaster management) asked.

Again, groundwork in this area is available for PIC governments who may choose to incorporate disaster risk management into their national planning/national budgets.

According to the World Bank report, work completed has involved the development of catastrophe risk profiles based on historical records of natural disasters/hazards in the region. Known as the hazard database, the information includes known behavior of tropical cyclones, earthquakes and tsunamis, such as expected wind speeds and the location of fault lines.

An exposure database identifies the geo-location, characteristics and value of national assets which could be damaged by catastrophic events Once risk profiles are calculated “they can be used in many different practical applications that can reduce or redistribute the risk over time,” the report revealed.

The benefits of Disaster Risk Financing and Insurance were highlighted in a workshop in Tonga in March this year where representatives of the Cook Islands, Samoa, Tonga and Vanuatu shared their experiences in using new financial tools to improve post disaster financial response.

Earlier this year Tonga became the first PIC to benefit from a payout under the innovative regional Pacific Catastrophe Risk Insurance Pilot following Tropical Cyclone Ian, which swept across the Ha’apai

island group on January 11-12, triggering a rapid payment of US$1.27 million to support recovery.

“Our government received the US$1.27 million payment from the Pacific Catastrophe Risk Insurance Programme only two weeks after the cyclone hit,” said Samiu Vaipulu, Tonga’s Deputy Prime Minister.

“This injection of liquidity played a key role in ensuring that the government could respond swiftly to the most pressing needs of those affected by the cyclone,” he told workshop participants.

Six Pacific island countries – Tonga, Cook Islands, the Marshall Islands, Samoa, the Solomon Islands and Vanuatu – are currently participating in the Pacific Catastrophe Risk Insurance Pilot. Launched in January 2013, the pilot tested a risk transfer arrangement modeled on an insurance plan, and used ‘parametric triggers,’ such as cyclone intensity or earthquake magnitude to determine payouts, which allows for quick disbursements - usually within three weeks of a disaster occurring.

“Tonga’s experience demonstrates the important role that the private sector can play through the provision of catastrophe risk insurance, to rapidly provide an injection of cash in the immediate aftermath of a disaster,” said Franz Drees-Gross, Country Director for the Pacific Islands at the World Bank.

“This is one tool that can be used to help countries prepare for the impact of natural disasters, which as we well know are all too frequent occurrences in the Pacific region.”

“This workshop provided Pacific Island Countries with a critical opportunity to have dedicated discussions on the future of the Pacific Disaster Risk Financing Initiative and guide its future direction in the region, including how it might be continued and expanded over the years ahead,” he added.

The workshop was co-convened by SPC/SOPAC and the World Bank.

Q&A with Taito Nakalevu of the ACP-EU/SPC BSRP Project

B

uilding Safety and Resilience in the Pacific Project commenced on 6 September 2013 at the SOPAC division of the Secretariat of the Pacific Community (SPC). It would run for 55 months with a budget of Euros 19,367 million.

Could you outline the kind of work your project is doing in the area of Disaster Risk Reduction?

The BSRP project is designed to integrate Disaster Risk Reduction and Climate Change Adaptation at regional, national and community levels, by filling in the gap between humanitarian assistance and development. It will also serve as an anchor initiative to leverage coordinated DRR efforts in the region and to integrate DRR and CCA into national and sector strategies.

At the public level, the activities of the BSRP project are likely to be most visible in the areas such as: activities to build awareness of risks and appropriate preparation and response measures via public awareness and training; supporing effective preparedness, response and recovery; assisting with national and regional response plans; strengthening end to end Early Warning Systems (EWS), emergency operations centres and evacuation centres; increase-

16 Islands Business, November 2014

ing access to safe drinking water to mitigate against drought; collaborative support with various stakeholders to strengthen institutitional arrangements to integrate DRM and CC; advocating mainstreaming of DRM and CC in sectors.

Are island governments committing efforts and money into the area of DRR as well?

Some countries are already funding awareness and training activities at the national and community level that contribute to risk reduction. Many countries are guided by their Joint National Action Plans on DRM & CCA (JNAPs), which are national strategies towards risk reduction and resilience.

At the institutional level within PICs, steps have been taken to streamline DRR implementation by combining Ministries and Departments working in risk reduction.

Is the Pacific ready, or just about ready for any disaster?

We cannot really give a one-size-fit all response, as many countries are doing their best given the limited resources they are allocated at the national level. The Pacific region is highly prone to natural hazards and preparedness is on-going. However, our readiness can only be tested in a real situation such as in the events of Cyclone

Heta for Niue in 2004 or the flooding in Nadi in 2009; we need to do more towards readiness and that means dealing with underlying risks..

Do we have a regional disaster preparedness plan?

The BSRP project is supporting two initiatives that will support this point of provision of mutual aid between countries in the Pacific. The first is the support to the development of more robust disaster assessments in country such as the Initial Damage Assessment (IDA) which is conducted 12 – 36 hours post event to inform the immediate response and relief operations and the Post Disaster Needs Assessment (PDNA) which is conducted 2 - 3 months post event to better inform the recovery efforts and have a better understanding of the damage and loss (real/ tangible as well as the intangible or societal losses).

The second initiative is the Pacific Islands Emergency Management Alliance (PIEMA) whose mandate is to strengthen the coordination and interoperability between the NDMOs, Police, Fire and Emergency Services. The goal is preparedness for an effective response within the limited resources of PICs.

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Cover Report

We need to do more in disaster risk: Tuvalu PM

By Samisoni Pareti a Natio N N Nal buildiNg code is required for Tuvalu to be better prepared for disasters, says the island’s Prime Minister Enele Sopoaga.

Such a code would lead to the construction of stronger buildings on Tuvalu, strong enough to withstand adverse climatic conditions.

Speaking to Islands Business in Nadi recently, Sopoanga admitted that more still needs to be done in the area of disaster preparedness coordination, and building communication and protection infrastructure.

“I have set up what we call a national advisory council on climate change that can advice directly to cabinet the response we should be doing on climate change impacts in particular sea level rise, cyclones and that sort of thing.

“The council so far has come up with very good proposals, one of which is to build a storage and protection building, or climate

change are key components of the school curriculum.

“It’s a very, very important issue in the syllabus and curriculum of the schools and in health and in infrastructure but it’s only so much that a small poor island nation like Tuvalu can do to really respond to the effects of climate change.

“We are seeking easy acproofing all the buildings in cess to funding for example, Tuvalu that means legislating funding under the Adaptafor a building code and that tion Fund and then funding sort of thing. under the Green Climate “There is a lot of work that Fund. We strongly believe needs to be done and also a those who cause the problem great need for more presence should pay. of the international commu“Its most unfortunate that nity in Tuvalu. access is not easy. Even a big “We need for example the island country like Fiji is representation of the United finding it difficult to access Nations through appropriate this funding let alone small persons on the ground in islands like Tuvalu.

Tuvalu.”

“In Tuvalu its serious bePM Sopoaga said his cause we are having more and government doesn’t have a more droughts, sometimes specific budget on disaster Man at the helm ... Enele Sopoaga, preparedness. The country’s Prime Minister of Tuvalu. Photo: Supplied long spells of droughts.

“In 2011, we had a serious entire budget is all about problem of drought on one mitigating and adapting to island, it ran completely out of water even adverse climate conditions. As an example, the vegetation died, crabs came out of the 40 per cent of Tuvalu’s budget is on educasoil because it was too hot.” tion, and disaster preparedness and climate

With Leadership and Commitment, We Can Create Sustainable Construction Practices Fiji made a significant step forward with the National Building Code.

Now, ongoing work on the “Strategy for Climate and Disaster Resilient Development in the Pacific” is expected to lead to another milestone improvement. But it is critical that the industry work in collaboration with business and Government to ensure that sustainable building practices are accepted and embedded in Fiji.

“First, we have to ensure that the correct building products rated for our natural perils – cyclone, flood, tsunami and earthquake - are prevalent in Fiji. This includes all sorts of products, ranging from roofing iron to the right products for laying a proper foundation. We cannot continue to rebuild the same poorly designed and constructed buildings, over and over again, using imported materials that may not be up to the task,” says Matthew Kearns, GM of QBE Fiji, and Chairman of the Insurance Council.

“Second, and, perhaps even more challenging, we have to show a greater commitment to maintenance. Clearly, we have to take a pragmatic, commonsense approach as we move forward. But, equally, we need to be more vigilant in design, construction and maintenance to become more climate and disaster resilient,” he added.

The Insurance Council needs to take a broader leadership position in regards to sustainable building practices. By working more closely with professional bodies like Fiji Institution of Engineers, and with relevant Government departments, we can help Fiji take significant steps forward in the coming decades.

“As insurers, we help manage the risks our customers face and help protect their assets so that when disaster strikes, they can carry on with their lives and businesses. In addition, the Insurance Council pro-actively works to minimize loss by promoting enforceable building standards,” he added.

QBE has made business possible in Fiji since it opened its doors in 1899.

QBE is the largest general insurer in Fiji. Our staff of 32 provide business insurance solutions to the corporate sector. They also have the expertise to deal with complex and emerging exposures involving professional indemnity, directors & officers’ liability, and marine cargo insurance.

Islands Business, November 2014

5,296 people in drought affected northern Marshall Islands to benefit from water tanks More than 5000 people in drought affected northern outer islands of Marshall Islands can now look forward to safe and clean water with the supply of water tanks by the European Union (EU) funded Building Safety and Resilience in the Pacific (BSRP) project implemented by the Secretariat of the Pacific Community (SPC).

Project Manager Taito Nakalevu

Speaking at the recent Women United Together in Marshall Islands Conference, BSRP’s North Pacific Officer Noa Tokavou urged participants to work hand in hand and help their fellow Marshall Islanders in need. ‘We need all your support in the implementation of activities that are crucial in the enhancement of safety and resilience of the drought affected islands,’ he said.

According to Mr Tokavou the purchase of 217 x 1,000 gallon stackable polythene water tanks will enable the families without rain water catchments to start collecting water, as they usually suffer during dry spells.

Some concerns regarding bird droppings and leaves entering water tanks and polluting the water and about the safety of the tanks were raised by the participants. ‘I reassured them that our project has taken all these issues into account as a baseline survey was done prior to the purchase of these tanks,’ Mr Tokavou said. He added that installation of these water tanks is expected to commence in late November. According to Mr Tokavou, participants were thankful to the European Union and SPC for assisting them.

“Pacific countries are dramatically affected by natural and other disasters. The European Union and its Member States are strongly committed to risk management and vulnerability reduction, as a critical component of poverty reduction and sustainable development strategies. In development and humanitarian aid we have reoriented our support to make resilience a priority in our work in countries most vulnerable to disasters as it is the case of many Pacific and Small Island Developing States,” said Ambassador Andrew Jacobs, Head of the EU Delegation for the Pacific.

The delivery of water tanks is in line with the BSRP project’s aim to integrate disaster risk reduction and climate change adaptation at regional, national and community levels, by filling in the gap between humanitarian assistance and development. Project Manager Taito Nakalevu said the main activities in the 15 countries include disaster risk management (DRM), support for water and education sectors, the Pacific Islands Emergency Management Alliance (PIEMA) twinning arrangements and a the development of a Strategy for Climate and Disaster Resilient Development in the Pacific.

‘Under DRM we have emergency operation centres, legal and policy framework reviews such as for the DRM Act and plans, early warning systems such as tsunami sirens and modelling, risk assessments and implementation at the community level and training and information management,’ Mr Nakalevu said.

A major achievement is the development of a Pacific Islands Emergency Management Alliance, a strategic alliance between national disaster management offices, government ministries and departments, fire services, ambulance services, police services, Red Cross, civil society organisations, State Emergency Services Australia, Ministry of Civil Defence and Emergency Management New Zealand, Australian Fire Authorities Council, Pacific Islands Fire Services Association, Pacific Islands Chiefs of Police and the private sector in disaster and emergency preparedness and response in the Pacific Islands region.

“Access to clean and safe drinking water is a key priority area for the BSRP project. Source Caritas Australia”

Cover Report

Disaster talk ... Hotel owners and managers learn disaster preparedness in Fiji. Photo: UNISDR, Pacific Office

Private sector plays key role in disaster risk reductions Fiji Water, Digicel, ANZ take the lead By the United Nations Office for Disaster Risk Reduction (UNISDR) Businesses are among those hardest hit when storms, floods, tsunamis, cyclones and other hazards occur. Every year, cyclones hit the Pacific Islands and because of climate change these storms are set to become more frequent, intense, and unpredictable. Yet the development sector often ignores the private sector when it comes to efforts to reduce disaster risk and strengthen resilience. This is a mistake. Encouragingly, though, this exclusion of private businesses is beginning to end. Three encouraging trends are emerging.

First, the public sector and civil society increasingly regards the private sector as a central actor in efforts to strengthen disaster risk reduction. Second, several business leaders are coming to a similar conclusion.

More enterprises are moving from managing disasters to managing disaster risk. The change in emphasis is important: it entails a shift from a focus on business continuity planning to one that proactively protects a business ahead of disasters.

Third, more and more opportunities are emerging for business to create value in markets related to disaster risk reduction and climate change adaptation. Overall, this paints an encouraging picture ahead of the 20 Islands Business, November 2014

Third UN World Conference on Disaster Risk Reduction, due to take place in Sendai, Japan, in March 2015. While the momentum is clear – and welcome – there remain significant challenges on the ground.

City and community disaster strategies often regard business owners and operators as distinct entity outside their pans. Such thinking ignores the innovation and ingenuity that businesses can bring to public-private partnership to reduce disaster risk.

The 2015 World Conference rightly sees governments retain their leadership role in efforts to build resilience but the increasing role of private sector leaders is clear. Business is responsible for up to 85% of all investment globally. Urban development is one key area.

In the past few years, for the first time in human history, more people live in cities than in the countryside. That trend is set to continue.

Given that globally, 60% of the area expected to be urban in 2030 has not yet been built, there is a tremendous opportunity to proactively shape and plan the cities of tomorrow.

An estimated US$98 billion will be spent on construction activities in the coming decade. Business will be at the heart of all this. Private investment decisions made now will determine the amount of disaster risk communities – and business – will live with in the future. This is as true in the Pacific as

anywhere else in the world.

Many small businesses in the Pacific, particularly those in isolated areas, also have to deal with the increasing impact of costly energy, scarce potable water supplies, declining environmental resource base, and climate change. The current drought in Fiji is testing the resilience of many resorts to the limit.

The Barefoot Island Resort is forced to run an expensive desalination plant in order to provide water to guests. The Botaira Island Resort, meanwhile, has considered closing because of its water shortages.

This is serious as tourism is an economic lifeline for many communities in Fiji and the Pacific. However, such challenging circumstances are bringing the best out of many business operators. Take Fiji’s Yasawa Island chain, for instance. There, pristine coastlines lure tourists to resorts that are the base for some of the best snorkeling and diving in the world. Their isolation coupled with their exposure and vulnerability to natural hazards and climate change has engendered a culture of resilience. Employees, owners and managers continue to rise to the challenge by diversifying their skills to adapt to changing circumstances. In other words, such businesses have learned to be more resilient and self-sufficient as circumstances dictate.

The United Nations Office for Disaster Risk Reduction (UNISDR) along with the European Union and the South Pacific Tourism Organisation (SPTO), have been supporting many resorts in the Yasawa Islands to understand better their exposure and vulnerability and to become more proactive in managing their disaster risk.

As Daniel Bowling from Barefoot Island Resort said at a three-day workshop at Botaira Resort, on Naviti Island: “If we change our mindset from reacting to looking at preparation and planning for disaster we can better cope with disasters and put planning into action.” Such an approach is increasingly seen as an investment rather than a cost.

The impact of a resort shutting down, even temporarily, because of fire or flood affects both the business and the wider community. There is a loss of revenue and assets affecting productivity and potentially viability. The business’ reputation can be damaged, supplier relationships interrupted and staff (and their families) placed under financial stress because of an inability to pay wages.

It is also encouraging to note that in Fiji and Samoa, for instance, there is a strong tradition of companies such as Fiji Water, Digicel, and ANZ working with communities on resilience measures as part of good business practice.

Climate

Study demonstrates value of sustainable forestry

This, in turn, allowed the ecological functions of the forest to remain resilient rather than becoming weakened and degraded.

The conventional logging methodology on the other hand seeks a one-off maximised yield with little regard for resulting ecological balance, ecosystem services and future profitability of the forest.

The study also measured resulting forest carbon stock. It showed, for example, that medium-intensity SFM logging resulted in in this process by the German Agency for a three per cent drop in carbon compared

By Sean Hobbs* International Cooperation (GIZ) in colto forest that was not logged. Conventional laboration with the Secretariat of the Pacific logging resulted in a 23 per cent drop in forest Conventional logging delivers a body Community (SPC) through the Climate carbon stock. blow to forests by stripping 80 to 90 per Protection through Forest Conservation in This type of data is critical in the Pacific cent of target tree species. This shock erodes the Pacific Islands Countries project funded as Fiji, Papua New Guinea, Vanuatu and biodiversity, damages ecological function and by the International Climate Initiative of Solomon Islands move toward establishing contributes to climate change. the German Federal Environment Ministry. national REDD+ mechanisms that can tap Sustainable forest management (SFM), The scrutiny applied during the study was international forest conservation compenon the other hand, can profit landowners rigorous. Every tree with a diameter greater satory payments. These payments are tied and deliver valuable timbers to market with than 35 centimetres in the 309 hectare site to the value of forests as carbon sinks and minimised disturbance to ecosystems. A was individually counted, measured and storage systems. The results of the Nakavu project spanning more than 20 years on Fiji’s mapped. Smaller trees, scrub and forest litter project demonstrate that sustainably manViti Levu that has recently come to fruition were measured in each plot using a detailed aged forest areas store considerably more is proving the point. sampling method. carbon than conventionally logged forest It also shows the potential for sustainable The study found that the plots that were and still provide a lot of non-carbon benefits. forestry to coexist with conservation regimes logged according to SFM principles were ‘Forest degradation is the big greenhouse that offer potentially lucrative royalties gas emission factor in through the international the Pacific,’ says BjoREDD+ (reducing emisern Hecht, a Regional sions from deforestation Technical Advisor on and forest degradation) REDD+ with SPC and mechanism.

GIZ. In 1989, Fiji’s forestry ‘These emissions redepartment with finansult mostly from uncial support from the sustainable logging German Government practices, where forest leased 309 hectares of stays forest, but with virgin forest in Nakavu. much less biomass and Designated as the Natubiodiversity, losing its ral Forest Management ecological functions. A Pilot Project the site was sustainable forest mancomprehensively mapped agement regime, includand divided into lots that ing conservation and received different logging reforestation plans, is treatments. the main potential for Some plots were intenforest carbon projects tionally left untouched, Environmental threat ... indiscriminate logging poses danger to more than the forest, Photo: Invictus in the Pacific. Without some were logged using SFM there won’t be inconventional methods, ternational forest carbon and the remainder were funding for the region. capable of supporting a further round of harlogged at ‘light’ (15 per cent), ‘medium’ (33 ‘It is important to have a strong framework vesting. In some cases the SFM plots could, per cent) or ‘heavy’ (50 per cent) intensities with regulations based on a harvesting code in 20 years, produce a financial yield similar using the principles of SFM. of practice and enforcement mechanisms. to a 30 to 40 year conventional logging cycle.

The mapping and logging operation was These need to involve land owners, compaThe SFM methodology was shown to finished by 1994 and the forest remained nies and relevant government departments. preserve the integrity and productivity of the undisturbed for 20 years, permitting reAcceptance by the private sector and lots of forest, supporting higher yields over time. growth. In 2013, a comprehensive scientific training for anyone working in forestry and The SFM plots retained biological diversity study began elucidating comparative results awareness among landowners will go a long in forest vegetation as well as the spatial between the different forest treatment methway toward a more sustainable and profitable structure of stocks. No tree species were supods. It examined biodiversity and ecological use of the resource.’ planted due to the previous harvest, which function, forest carbon stock, and further log meant that growth of young trees of all speharvest potential. *Sean Hobbs is SPC’s Climate Change Communications cies in the understory remained supported. and Information Officer Fiji’s forestry department was supported

Training, acceptance to boost profits

Islands Business, November 2014 21

Fiji Islands

Audit report reveals After eight years of autocratic rule, Fiji finally has a Parliament which has received a backlog of reports from the Office of the Auditor General. Economist Professor Wadan Narsey studies the report and discusses its implications.

T

here are certain principles which the owners of all organisations, private or public, expect from a sound audit whether in accounting or economics: The auditor (Auditor General) must be totally independent of the organization (Fiji Government) and be adequately resourced; The organisation managers (government ministries) must give the auditor every information that they ask for; The audit must clearly point out the major faults, as well as the remedies to the owners (the people of Fiji); The owners must be able to make the organisational changes that are necessary to eliminate the faults pointed out; The next audit must check to see if the faults pointed out the previous year have been rectified.

These steps have unfortunately been compromised to a greater or lesser extent with the Auditor General Reports for Fiji, with lessons for all Pacific countries.

Audit collapse The Auditor General Reports are detailed audits of government incomes, expenditures and borrowings, usually tabled annually in Parliament by the Minister of Finance, as a “report on the performance of the government” for the previous year.

They are absolutely critical for all taxpayers to understand, given that government revenues and government expenditures account for around 25 per cent of the Gross Domestic Product and total domestic incomes.

These reports should tell the people whether the taxes that they have agreed to are being collected as the law states, loans borrowed responsibly as planned, and whether all the revenue is being spent the way that parliament approved or has been stated in the Annual Budget documents.

Once tabled in parliament, the Auditor General Reports were also released to the media, and hence the public who could read

22 Islands Business, November 2014

and comment on whatever they liked.

This is what used to take place since 1970 to 2006 - until Bainimarama (pictured) seized power through a coup in December 2006.

For seven years, the Auditor General Reports have been prepared and submitted to the Bainimarama Cabinet.

But the Bainimarama Government and Minister of Finance refused to release any of the Reports, despite the many requests from the public and international condemnation.

The flimsy excuse was that the law required him to table the AG reports in Parliament and because there was no parliament, he did not have to table the reports.

For eight years, the unelected illegal Bainimarama Government completely controlled the raising of taxes and loans, and the spending of all revenues, without any accountability whatsoever.

Ultimately, after becoming elected as Prime Minister in the September 2014, he released all seven sets of Auditor General Reports, totaling 28 reports altogether.

There are now being read by the media and the public, many understandably searching for evidence of abuse and misuse of taxpayers’ funds.

The revelations in the reports Professor Biman Prasad, the Chairman of the Public Accounts Committee which is charged with examining the AG Reports, has already stated that “it has become abundantly clear there has been widespread abuse of public funds and blatant disregard of fundamental financial procedures (as well as) … pilferage, wastage and abuse of public funds.”

Professor Prasad noted that there had been “continuous disregard of recommendations by the Auditor-General” indicating that the Bainimarama Government carried on “business as usual” year after year for eight years, making no attempt to correct mistakes

Filling the gaps ... the Auditor General’s report has serious quest

pointed out by the Auditor General.

These conclusions are damming of Bainimarama’s performance as Prime Minister and Minister of Finance. They also explain why Bainimarama and Khaiyum refused to release the reports before the September 2014 elections.

Ministers’ salaries While the Public Accounts Committee will no doubt investigate the many revelations of abuse of public funds and lack of transparency and accountability, the public will be especially interested on the revelations about the ministerial salaries, between 2010 and 2013, and what is not being revealed.

The public already know that in November 2011, regime supporters John Samy and the late Archbishop Mataca (Co-Chairman of the National Council for Building a Better Fiji) wrote to Bainimarama, complaining about his government’s increasing lack of transparency and accountability.

Samy and Mataca noted that there were rumours that Bainimarama and Khaiyum were “both were being paid exorbitant salaries, not through the Ministry of Finance but a close relative of the AG, through a high-fees based contractual arrangement.”

The leader of the Fiji Labour Party (Mr

worst kept secret

ions on roadworks. Photos: Invictus Pictures

Mahendra Chaudhry) who had also been the Minister of Finance in the Bainimarama Government in 2007, is also on record accusing Bainimarama and Khaiyum of paying themselves multiple salaries from 2010 to 2012, before reverting to the lower pay revealed after the elections.

The AG Report for 2010 (Vol. 2, Section 4, p11) reveals that as a result of a Cabinet instruction of January 4, 2010, the Prime Minister’s Office issued invoices to the Ministry of Finance to pay salaries through Alizpacific, (an accounting firm associated with Dr Nur Bano Ali, Sayed-Khaiyum’s aunt).

The Report noted that the $1.8 million paid (listed on a monthly basis) had no supporting documents, and was intended to “alter the terms and conditions of engagement of all Ministers.” The AG Report stated that this “compromises the transparency of payments being made.”

But the Public Accounts Committee must investigate serious breaches of process that the AG’s Report did not raise. First, why should Ministers’ salaries be increased by the Ministers themselves, when there have always been proper independent avenues available to do so?

Second, why should Ministers’ salaries be paid through a private accounting firm when

that has always been the prerogative of the Ministry of Finance?

Third, what were individual Ministers being paid in totality in 2010 and why did Bainimarama refuse to reveal the information to both the Auditor General?

That is still not the whole story. The public can also note that the AG Report for 2010 and for other years, had complained that there is a Head 50 under which many undocumented payroll expenditures in other ministries were partly paid, and therefore their own payroll expenditures were being understated.

For example, Table 4.9 in Volume 2 of the 2010 Report, noted that there was an unexplained $247,200 in emoluments paid to the Prime Minister’s Office, as well as $1,253,625 paid to the Republic of Fiji Military Forces. Who exactly received these out of the ordinary emoluments?

Fast forward to the AG Report for 2013, Vol. 2. Section O4, pp.13 and 14. The Report stated “our review of the Head 50 Expenditure revealed that the Ministry paid a total of $1,860,947 as Cabinet Ministers’ salaries in 2013, based on the amounts provided by Alizpacific Chartered Accountants & Business Advisers) associated with the same Ali. This time apparently individual payments (but not the names of the Cabinet Ministers) were documented including one for $278,750 (presumably paid to Prime Minister Bainimarama, and which was still way above what had been paid previously to Prime Ministers).

In addition it was noted that Bainimarama received a “gratuity” payment of $57,500 from a different vote, bringing his total recorded salary for 2013 to $366,250.

Again, there were large undocumented payments for emoluments from the Head 50.

Despite repeated requests for the associated documents from both the Auditor General’s Office and Ministry of Finance, the Prime Minister’s Office refused to make them available.

The 2013 AG Report also documented that there was another unexplained “additional Ministers payroll expenditure” of $137,150.74. The Public Accounts Committee will no doubt investigate the Bainimarama Government’s practice of paying ministers’ undeclared salaries through a private accounting company, if necessary subpoenaing the accounting company, Ministry of Finance and Fiji National Provident Fund officials.

Fiji Islands

The Public Accounts Committee will no doubt also want to investigate the back pay of $185,000 Bainimarama was paid in 2008, as well as the irregular massive increase of some Permanent Secretaries’ salaries just before the 2014 Budget.

More reports to come The public should note that these 28 Auditor General Reports are only for the Central Government accounts.

They do not cover the dozens of public enterprises and semi-commercial organisations which Government either totally or wholly owns on which the Auditor General has been doing considerable work as well.

Some of these public enterprises, such as Fiji Roads Authority, Ports Authority, AFL and others spent hundreds of millions of dollars of tax-payers money, with an equally great capacity to swathes of tax-payer funds.

We can therefore expect that there will be perhaps another 100 reports coming out of the Auditor General’s Office in the next year or so, to be examined by the Public Accounts Committee, parliament and the general public.

The purpose of issuing the AG reports annually is that the elected representatives of the people can call on wrongdoers to be suitably disciplined and surcharged if necessary.

The public can then see whether there is any improvement taking place at all in the way government is managing tax payers’ money.

Not issuing the report for eight years is a horrendous indictment of the Bainimarama Government’s arrogant refusal to account for tax payers’ money, especially when every year, the Auditor General has refused to give unqualified audits to most financial agencies.

It is as if a school refuses to give the annual report on a student for Forms 1, 2, 3, 4, 5, 6, and 7, then gives all the reports together with the Form 7 Report, which tells the student (and the parents) that he has been failing every year, and is now ineligible to enter university. What remedial can the parents and the student take now?

That is exactly the situation faced by the Public Accounts Committee, whose scope for disciplinary action will be totally undermined not just because the guilty civil servants will have move on, but also because the Bainimarama Government has given itself “immunity” in the 2013 Constitution, for undefined actions between 2000 and 2014.

Islands Business, November 2014 23

PNG

Pacific beat ... dancers in Madang, PNG, where crime is low compared to Port Moresby and Lae. Photo: Invictus Pictures

Crime restricts PNG’s economic growth Businesses operate at half potential: Report

By Rowan Callick C rime is costing P apua N ew G uinea severely despite its rapid economic growth due to reach 20 per cent next year- according to a series of new World Bank reports.

The bank says that 81 per cent of businesses in PNG are restricting their investments due to crime concerns -with 66 people in every 100,000 being murdered annually in Lae, the second city, for instance, one of the highest rates in the world.

Robbery and assault are the most common crimes, the bank says, while “family and sexual violence is also highly prevalent.”

It says in its reports - which were requested by the PNG Government - that violence there “can be understood, at least partly, as a result of the inability of both traditional and formal institutions to manage the stresses 24 Islands Business, November 2014

that have come with rapid economic growth, increasing migration” from country to cities, and other factors.

The longer-term social impacts of crime limit businesses from operating to their full potential, the reports conclude.

They say this “creates fear that constrains mobility of staff and clients, erodes trust, and reinforces stigma towards certain groups perceived to be dangerous, especially youth.”

Domestic violence in particular intrudes into the workplace - where more than two thirds of businesses employ private security staff, with almost a third deploying 10 per cent or more of their total spending on security, and with theft costing the average business US$40,000 a year. The reports, by Sadaf Lakhani and Alys Willman, say that there is “significant under-reporting” of crime in PNG, especially of murders.

The global homicide average is 7 per 100,000 people. Lae’s figure is 9.5 times this, while Port Moresby’s, at 33, is almost 5 times.

Guatemala City is the only place worldwide that beats Lae, while Port Moresby’s rate is only capped by Cape Town and Port au Prince. Despite these high figures in certain places, the bank says that nationally, the crime rates “appear to have stabilised since 2000.”

Thus in Port Moresby, the households reporting having suffered at least one crime fell from 67 per cent in 2004 to 38 per cent in 2009. But citizens report fewer than half of all crimes to police - for reasons ranging from long distances to police stations, to “greater cultural relevancy of traditional dispute resolution mechanisms” - meaning in part, payback.

Sinclair Dinnen, senior fellow at the State, Society and Governance in Melanesia Programme at the Australian National University and a leading expert on PNG crime, says that the lack of strong, reliable data has long hampered effective measures.

“Hopefully, this bank series will form a conversation starter.” But in the past, similarly alarming messages have been ignored.

He says that the “cloistering” of members of the elite in Port Moresby, including diplomats, “makes them less likely to get a feel for the place, for what’s really going on.”

PNG Dr Dinnen says: “The police system is broken, and has been for a long, long time.”

Increasingly, law and order support comes through politically-determined off-budget channels and outside institutions, fragmenting the effort and raising concerns that police can be bought, he said. The international actors including the World Bank and Australian and other aid donors “keep plugging away at building up the formal institutions, but meanwhile the action has moved on.”

Scant action, he says, has resulted from devastating reports on corruption - “theft on a grand scale” and a major driver of other crime. But a middle class that is not dependent on the state is starting to emerge, and to urge bigger, structural changes, he says.

“There are a lot of really good people in PNG struggling with these issues.”

Australia’s A$37 million per year deployment of 73 federal police to Papua New Guinea - hailed as a breakthrough last year when it began - is being reviewed by the PNG Government, potentially to wind it down. This is in part because of unrealistic “visible policing” expectations with the Australian Federal Police officers lacking legal powers to make arrests, conduct investigations or direct PNG counterparts.

A report published last month by the Canberra-based Australian Strategic Policy

Institute argues the need almost to double Canberra’s input of both cash and police.

The deployment was agreed in July 2013 between then Australian Prime Minister Kevin Rudd with his PNG counterpart Peter O’Neill, in the context of the new plan to send asylum seekers to Manus island.

But just nine months into the new deployment, PNG’s Police Minister, Robert Atiyafa, wants to review the AFP presence, potentially even to end it. He favours instead, hiring Australian police to be sworn in to the PNG force, so they can wear PNG uniforms and become subject to the country’s laws.

Then Prime Ministers John Howard and Michael Somare introduced in 2004 the Enhanced Cooperation Programme involving Australian police operating alongside PNG counterparts. But the following year, the PNG Supreme Court ruled - after a court action instigated by former judge and politician Luther Wenge - that the immunity from prosecution given the Australian officers was unconstitutional, and the deployment was ended, despite its popularity among many Papua New Guineans. The new ASPI report says: “We don’t think the PNG Government has the appetite to propose the necessary legal changes to allow this type of mission now.”

Recruiting Australians with police

experience directly is one alternative. The report says that “there are strong reasons to increase Australian investment” in a programme that could advance both nations’ interests by stabilising the PNG force and building from there at a “fundable” rate.

The long-term need, it says, is “for large numbers of capable PNG police - not Aussie police.” The PNG force, it says, “faces deep, complex and systemic challenges.”

The report says that the PNG force “now has a reputation for violence, corruption and occasionally extortion,” while in return basic policing resources including even fuel for the few police vehicles, “are basic and poorly maintained.”

It urges that the bilateral review scheduled for 2015 be brought forward. It notes that Mr Atiyafa wants more police trained overseas, and expatriate officers used in four provincial police HQs. The report’s proposals to increase annual support to A$62 million and to add up to 55 Australian officers, “would allow more resources for training support, including travelling teams to coach police at the provincial level, and provide more overseas training and secondment opportunities for PNG officers.”

It would retain mentors in police stations and support for specialised squads including the Family and Sexual Violence Unit.

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

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Politics

Salaries to influence vote

Sailing forward ... Tongans await the elections this month. Photo: Invictus Pictures

By Taina Kami Enoka Among the many women candidates who registered for Tonga’s elections is trades unionist Mele Sivi ‘Amanaki (pictured).

A former Civil Servant, she is the Secretary General of the Public Service Association which planned but aborted a strike by sbout 700 workers, over demands for a five per cent Cost of Living Adjustment (COLA) to salaries which would have cost and annual US$2.5 million. Tonga’s Treasury claimed it could not afford the additional burden on the national purse. The strike – planned initially for October 17 and moved to October 20 – was cancelled after fears that the government would use the protest as grounds to postpone the elections. In a statement the association announced that it would “submit the request for a fair and just COLA to the new government in January 2015.”

“The priority to PSA is the safety of the public servants and their families as the emergency powers do not allow political meetings of five people or more and they can use the military to take them to prison without a warrant,” the statement said.

‘Amanaki told Island Business that the PSA had used the Public Service Grievances and Dispute Regulations.

The regulations were drawn up in 2006 after a national strike in 2005 ended in riots, burning of businesses in central Nuku’alofa and subsequent looting.

The quest for the five per cent increase started in December, last year. ‘Amanaki admits that it is possible for the events of the 2005 strike to reoccur.

“Government should think preventative methods. Right now, employees are angry and don’t have any respect for their leaders,” she said. Last month, they were told by Finance Minister, ‘Aisake Eke, that there was no money.

“We say it is the employers’ responsibility to budget finances to deliver the product.” ‘Amanaki faces businessman, Tevita Palu, in the Tongatapu 3 Constituency.

26 Islands Business, November 2014

Tonga’s Freedom Fighter aims for election victory Pohiva’s last swan song

By Netani Rika For veteran Tongan freedom fighter ‘Akilisi Pohiva, the election this month will be the final roll of the dice in a political career which started 40-odd years ago as a student at Fiji’s University of the South Pacific.

At 73, Pohiva probably has this one mo-

ment in time to see his dreams come true.

“I’m confident that we will win the election,” he says of the 17 independent candidates standing under the banner of the Tongan Democracy Party, a coalition of likeminded individuals.

“We should be able to secure a majority and with it control of Parliament.”

Pohiva will field 17 candidates for the seats held by commoners. Political parties are not

Airline owner focuses on family values

By Taina Kami Enoka Businessman Tevita Palu of Fasi-moeAfi is no stranger to controversies with government.

The civil engineer is also the CEO of Real Tonga, the Kingdom’s only domestic airline.

Two years ago aid towards the Tonga Tourism industry was withheld and New Zealanders were warned to fly in the king-

dom at their own risk after Tonga received a twin-engine Xian MA60 aircraft from China.

The aircraft – based on the design of the Russian Antonov 24 – has not received safety clearance from New Zealand’s civil aviation authorities.

Further talks with New Zealand Foreign Affairs Minister Murray McCully saw agreement for the release of half the funding set aside for Tonga Tourism.

Politics allowed under the Tongan Constitution and nine seats in the house are reserved for nobles.

While the rest of Tonga votes for 17 candidates, a mere 33 nobles will determine who represents the nobility.

That will change if Pohiva comes to power.

“We will keep the system of the Royal Family with the king as our head, the nobility but anyone in Parliament must be there because the people have chosen the person,” Pohiva said.

“That is what we mean by democracy – a constitutional monarchy with parliamentarians elected by and responsible to the people.”

After the last election the nine nobles enticed five independent MPs – elected under Pohiva’s banner – to cross the floor and form government.

It was disappointing for Pohiva who has made adjustments to the selection process this year.

“We can win 14 seats and our people are professionals who have so much to offer Tonga. I believe we will have a majority, form government and give the people of Tonga policies which bring about change for the better – accountability, transparency and justice.”

Political commentator and news media

owner, Kalafi Moala, believes Pohiva’s coalition of independents has a chance at forming the first all-commoner Parliament in the history of the island kingdom.

“Their line-up is good and it appears that support among the people is strong but this is the last chance ‘Akilisi will have to form government,” Moala said.

So what is it that Tongans want from a government?

According to Moala a vibrant economy and greater employment opportunities form the cornerstone of the Tongan dream.

“Opportunities are endless but for years corruption has prevented the economy from growing and politicians have been more concerned with generating opportunities for themselves rather than for the country,” Moala said.

“If ‘Akilisi and his people can steer clear of corruption and put in place policies which benefit the people and generate confidence, Tonga’s success will be guaranteed.

“The (Royal and noble) system is not under threat. It’s part of who we are but corruption must end for Tonga to flourish. That means elected parliamentarians.”

The importance of the election is underscored by the involvement of churches in the election process.

Sister Senolita Vakata of the Catholic Diocese of Tonga has been carrying out voter awareness workshops around the island kingdom.

People of all denominations have been invited and taken part willingly to find out how and why they must vote.

“We’ve heard that the people want representatives who care,” Sr Senolita said.

Free Wesleyan Church President Reverend Dr ‘Ahio ‘Ahio echoes those sentiments and the thoughts of Moala.

“This is an important time in our history,” said Rev Dr ‘Ahio.

“Democracy is coming even though the Tongan system of land ownership, royalty and the nobles remains. The church will help in the transition and minister to all Tongans We now wait to see how the people vote.”

50,000 register for election

By Taina Kami Enoka A record 50,000 people have registered to vote in Tonga’s national elections, on November 27.

Superviser of Elections, Pita Vuki, noted 8000 new registrations since the 2010 polls.

The increase was attributed to the Electoral Commission’s registration campaign through media awareness programmes and meetings in villages and churches.

For the first time, texting via the two telecommunications carriers, Digicel Tonga and Tonga Communications Corporation’s Ucall mobile, were used to encourage registration.

The highest percentage of voters will be between 21 and 35 years old at 38 per cent.

In the 2011 census, the Electoral Commission included two questions to find out whether people had registered for the elections and, if not, why. The results showed that 84 per cent of the population had registered.

Others listed overseas travel and illness as their reasons. However, there were two groups that caught the interest of the Commission.

“Some said they were not interested and others stated that they did not know the elections were on,” Vuki said.

This led to a voter education programme, to encourage people to vote and why it was important to do so.

Candidates registered for elections on October 23-24.

There are 26 Members of Parliament, with 17 members elected by popular majority.

Nine members will be elected by Tonga’s 33 nobles.

and youth The agreement was based on the reassurance that Real Tonga was committed to safety as a priority.

Having encountered a recent turbulent patch in his professional life, Palu spoke of his Christian faith and his priority to honour God in all things. It is a principle on which his businesses operate.

Although he avoided discussing the airline, Palu said that legislation was being altered to

cater for the lawmakers. He wants to address youth problems, focus on family life and build the economy through legislation based on Biblical principles.

“If we honour God in all we do… He will bless us beyond our imagination. We will proper if we set our hearts right with God. I’ve seen it with my own eyes.”

His businesses include Palu Engineering in Tonga and Samoa, a travel agency, cargo,

construction, a motor vehicle engineering service, sign designs and a charity foundation for the elderly and disabled.

In all, he employs more than 200 people.

Palu is a preacher in the Free Wesleyan Church in which he is deeply involved. He holds positions in various school committees, the Tonga Tourism Authority Board, the Friendly Island Clinic Dental Services and Tonga Quality Assurance.

Islands Business, November 2014 27

Politics

Women candidates impact on election line-up Husband and wife bid for parliament seats

By Priestley Habru

West Honiara Constituency.

Current West Honiara MP, naturalised Solomon Islander of Vietnamese origin, casino owner Namson Tran is an influential and key member of the current government under Caretaker Prime Minister Gordon Darcy Lilo.

He resigned as Deputy Speaker after just one year when elected into parliament in 2010.

Tran launched his campaign prior to close

A record number of women candidates are expected to contest the Solomon Islands national election on November 19.

Lisa Horiwapu of Vois Blong Mere Solomons (VBMS) expects around 30 female candidates contesting in various constituencies of the 50 total seats in parliament.

Nominations closed on October 22 and prior to close of nominations, 26 women have confirmed their intentions to contest.

Lisa and her VBMS team in collaboration with UN Women held series of training for aspiring women candidates last month to prepare them.

“We help them understand the government system, their roles if they enter parliament and a workshop on transformational leadership.

“We also help them to understand their platforms as women going into the election and consequently into parliament if they are successful,” Horiwapu said.

Election candidates Julie Haro (left) and Dr Jimmy Rodgers.

The highest number of women can- Priestly Habru didates in the last eight general elections since independence was 26 candidates of nomination on October 22 promising in the 2006 elections. Twenty-one women more investments and job opportunities for candidates stood in the last election in 2010. young people, Only two women Hilda Kari from GuadalAmong new candidates wishing to enter canal Province and Vika Lusibaea – originally parliament are former Secretary General of from Fiji have made it into parliament.

Secretariat of the Pacific Community (SPC) Lusibaea is contesting the Central Honiara Dr Jimmy Rodgers and experienced public Constituency this year following her byservant Jeremiah Manele. election win in the North Malaita’s ConstituDr Rodgers, highly regarded as experiency in 2012. Her partner Jimmy Lusibaea enced in regional and international affairs who was then Minister of Fisheries and launched his campaign under Solomon Marine Resources in the ninth parliament Islands People’s First Party. which ended its term in September 2014, He will face Solomon Islands shortestwas disqualified following a court conviction. term Prime Minister and current Caretaker Lusibaea entered politics in 2010 and will Minister of National Planning and Aid Coorfight to retain his North Malaita seat come dination Synder Rini. Rini was ousted as the November 19. eighth Prime Minister following the April If Vika and Jimmy win their respective 2006 riots in Honiara and has been Minister constituencies, it will be the first time a for Finance and Treasury since December married couple will serve in the Solomon 2007. He has represented Marovo ConstituIslands’ Parliament. ency in National Parliament since 1997.

One of the women candidates is 2014 Manele who will contest the Hograno/Kia/ Solomon Islands Business Women of the Havulei seat in Isabel Province was a former Year, realtor Julie Haro. She will contest the 28 Islands Business, November 2014

diplomat in the Solomon Islands Mission in New York, Secretary to Prime Minister and served as Permanent Secretary in various ministries until his resignation to contest in this year’s election.

Another incumbent seeking re-election is current Caretaker Deputy Prime Minister (DPM) and Minister of Home Affairs Manasseh Maelanga. He was first elected as MP for East Malaita in a by-election in 2008 following the passing away of then MP Late Joses Sanga. He is also the first parliamentarian to have served a complete term in the ninth parliament as DPM under two governments.

Caretaker Prime Minister Gordon Darcy Lilo in launching his campaign under his Solomon Islands Party for Rural Advancement (SIPRA) banner on Sunday 19th October says time was not on his side after just two years as PM since taking over from Danny Philip in a no confidence motion in 2011.

Meanwhile the Solomon Islands Electoral Commission (SIEC) says preparations are well underway for the national election.

“All the major procurement especially on polling materials is done except for the printing of ballot papers which will start after the list of candidates are finalised. Boats arrangement for provinces should leave around the second week of November.”

SIEC added Election Managers and Returning Officer trainings are completed and all officers were already in the field as of October.

“Briefing of Civic Educators has Photos: been done in respective provincial headquarters as of October 22nd and training of Presiding Officers and Polling Assistants should take place two days before the polling day.

Briefing for candidates is also completed and briefing for Observers is expected close to polling day.”

Chief Electoral Officer Polycarp Haununu says November 19 election will be a historic one following SIEC’s biometric voters’ registration implemented for the first time.

“For the first time, our new, accurate, credible voters list will be used,” Haununu said when announcing the opening of 15 days nomination on October 8.

It is now up to the 287,567 registered voters (160,000 voters were removed after fraudulent, incorrect or duplication of registration) to decide who to elect later this month.

Following the registration of political parties as required under the Political Parties Integrity Act 2014, any one of them would become Prime Minister if they win majority of the 50 seats in parliament.

Politics

ment Dickson Ha’amori of the Direct Development Party (DDP), Steve William Abana of the Democratic Alliance Party (DAP) and Dr Rodgers of the Solomon Islands People’s First Party.

Abana elected in 2006 for Fataleka Constituency in Malaita Province is a known kingmaker following his influential move to oust former Prime Minister Manasseh Sogavare and Dr Derek Sikua became PM

in a no-confidence motion in 2007.

Abana was Minister for National Planning and Aid Coordination under Sogavare and Sikua. He was also influential in leading his party members from the Opposition to join PM Lilo in 2011 which saw the downfall of then PM Danny Philip.

Abana, also a former Opposition Leader against Danny Philip was served a High Court bankruptcy notice served in October to pay US$44,700 or be declared bankrupt and lose the right to contest the election.

Abana paid his debt by deadline on October 20 and now qualifies to contest. Four other current MPs were served the same bankruptcy notice.

In a recent move, the anti-corruption body Transparency Solomon Islands (TSI) requires parties and candidates to sign an integrity pledge.

Over 70 candidates from three political parties have signed the pledge which calls on candidates and parties to be transparent and accountable for their actions. Pundits have described the TSI Integrity Pledge as a move in the right direction but without teeth.

Acting Assistance Commissioner of Police (National Capital) Gabriel Manelusi says the Royal Solomon Islands Police Force has beefed up preparations to provide safety and security that would ensure free and fair elections.

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Politics

Forum allows Fiji back into regional group

unacceptable for a military coup to depose a lawfully elected government and this was not a precedence to be encouraged elsewhere in the Pacific.

“The Bainimarama Government should acknowledge that it was then a military dictatorship, with no accountability to the ordinary people of Fiji (not having been elected by them), and their hostility towards Australia and New Zealand could be driven by their politics alone.

That situation has drastically changed since September 17.”

The Bainimarama Government is now a democratically elected government, representing the interests of the majority of the voters of this country, and accountable to them, he said.

“Without fear of contradiction, one can say that the majority of the people of Fiji would like the complete normalisation of relations with Australia and New Zealand, without any unnecessary and unwarranted aggression on the part of their elected leaders, he added.

“With tens of thousands of Fijian families having emigrated to Australia and New Zealand, there are as many family ties between Fiji and Australia, and Calm before the storm ... the region has opened its arms but Fiji remains any chilling of relations would petulant over PIFS membership. Photo: Supplied be to their disadvantage, on both sides. and acknowledge the Forum Ministerial “The majority of Fiji military personnel Contact Group on Fiji for its steadfast comand their families have welcomed the normitment and hard work. malisation of relations: they have no wish to “I offer again our warm congratulations go back to the dark days between 2009 and to the newly elected Government of Prime 2014 when they were banned from travelling Minister Bainimarama and commend the to Australia and New Zealand. people of Fiji for their full participation in the “The majority of Fiji citizens who have historic election of their leaders and repretaken up board memberships despite the sentatives, culminating in results that reflect sanctions, and those who are now willing the will and mandate of the Fijian people. ” to take on these social responsibilities in the In an opinion piece submitted to Islands future, have also welcomed the normalisaBusiness magazine, former University tion of relations and the ending of travel professor of economics and Fijian political bans on them. commentator Wadan Narsey expressed the “The large numbers of our students who hope that Bainimarama would rise above the go to study in Australia, or the large numpolitics of the past, and rejoin the Forum. bers of labourers for whom the temporary Giving his opinion the heading ‘Bainiguest worker schemes may soon open up in marama and the Forum: a storm in a clam Australia and New Zealand, also would not ocean,’ Professor Narsey claimed the vast like to see any further deterioration in relamajority of the countries in the Pacific would tions between Fiji and Australia, in case their rather this sad history of the Forum be reopportunities in Australia and New Zealand solved and forgotten. are affected.

“It is natural that the Bainimarama Gov“The ordinary people of Fiji wish to see ernment is still unhappy with Australia and the close warm relations with the Australian New Zealand, given their opposition to his and New Zealand governments that existed coup over the last eight years,” wrote Propre-2006, and which they know very well fessor Narsey. “But that opposition was a cannot be replaced by Fiji’s new relations principled opposition on the basis that it was with China, India, Malaysia or Russia.”

But Fiji wants Australia, New Zealand out

By Samisoni Pareti Moments after the magazine posted on its Facebook page the announcement by the Pacific Islands Forum that Fiji’s suspension from it has been lifted, an avid reader posted - “But will Fiji want to rejoin?” Our reader was actually not way off the mark. The same day, Fiji Television quoted Fiji’s Foreign Minister Ratu Inoke Kubuabola as saying more or less the same thing.

“Our position is very clear,” Ratu Inoke told FijiTV. “Fiji is not going back to the Forum until some changes and reforms are made in the organisation like Australia and New Zealand to move out of PIF (Pacific Islands Forum) and become only development partners, or other development partners like Japan, China, Korea, US etc also to become members.”

Fiji’s Foreign Minister indicated he had the backing of his own Prime Minister. He said they had discussed Fiji’s position one day before the current chair of the Forum, Palau’s President Tommy Remengesau made the announcement of Fiji’s return to the Forum.

“I requested the Forum Secretariat to deliver my letter addressed to the Prime Minister of Fiji, the Hon. Rear Admiral (Retired) Josaia Voreqe Bainimarama conveying the decision of the Forum Leaders to fully lift the suspension of Fiji from the Forum forthwith,” President Remengesau said in a statement the Forum Secretariat released on October 24.

“Forum Leaders were unanimous in their decision to lift Fiji’s suspension from the Forum based on a recommendation to Leaders by the Forum Ministerial Contact Group (MCG) on Fiji.

Leaders had earlier requested the MCG to make a recommendation to them following the election in Fiji regarding its readmission to the Forum based on an assessment of the report of the Multinational Observer Group and any other factors the MCG wishes to take into account.

“Forum Leaders fully welcomed and accepted the recommendation of the Forum Ministerial Contact Group and very much look forward to Fiji’s participation and contribution in all Forum activities, including the meetings of the Forum Leaders. I thank 30 Islands Business, November 2014

Sports

Down but not out

intention of tightening the rules; to ensure there was no controversy with so many players lining up to switch allegiances.

“Fear of the Pacific nations getting too strong, that has always been the reason why the IRB keeps changing the rules”. That’s the opinion of a current professional rugby player of Pacific heritage when asked by Islands Business why he thought the IRB had abruptly closed an eligibility loophole that would have allowed him, and others, the opportunity to play for the island nations.

The player, who wished to remain anonymous was one of many ready to exploit the

By Peter Rees “loophole”. But his plans were now scuttled by the IRB’s sudden change of heart which The all-Pacific final between Fiji and effectively ended the hopes of Samoa, Fiji and Samoa in the opening leg of the 2014-2015 Tonga bolstering their playing stocks ahead IRB World Sevens Series on Australia’s Gold of next year’s Rugby World Cup in England.

Coast was a mighty statement to the Inter“It’s frustrating because Pacific countries national Rugby Board. The IRB had closed don’t have a voice and are always being igan important eligibility loophole just weeks nored. If all Pacific island players decided to earlier that ironically would have changed the boycott, I’m sure that would make them (the complexion of both teams by introducing IRB) listen. But they know very well our a number of former international stars. It players put their families first and won’t did not matter. Samoa and Fiji’s local playwant to risk their contracts. But I’m tellers were good enough to do the job. Fiji, ing you, there will come a time when which had won the Oceania Sevens with enough is enough,” he explains. a ‘B’ squad a week earlier, won that pulsatSo far there has been no public coming final against their archrivals Samoa in ment on the issue by the Pacific Islands October, but it was a small victory for all Players Association (PIPA) which was set the Pacific nations. With the current IRB up in 2012 to deal with issues affecting World Sevens Series acting as a qualifier Pacific players. But the Samoa and Tonga for the Rio Olympics in 2016, the hopes rugby unions had joined the chorus of of the Pacific nations would be buoyed discontent with the world body. by that result heading into the next legs Says Tonga Rugby Union chair Epeli of the series in Dubai and South Africa in Taione: “Typical of IRB and [we’re] just December. The top four teams from the frustrated at the lack of consultation on current IRB series will qualify directly for this. The most disappointing thing is the the Olympics. knowledge that the conflict of interest and However, while these results have all the people that was in the committee raised hopes in the sevens game, the same for IRB supports their interests - there’s cannot be said in 15s where the implicano other way around it. tions of the rule closure will be felt more, “They call it the Rugby World Cup especially among the many Pacific players but it might as well be one just for New left in the international wilderness due to Zealand, Australia, South Africa and the their eligibility status. home nations, because they don’t want Of the 632 players of Pacific heritage anybody else to compete. It is quite frusplaying professional rugby around the Breaking through ... Fiji vs Samoa in Gold Coast 7s final Photo: Peter Rees trating and I’m pretty sure that Fiji and world, only 272 of them were actuSamoa share the views on this. We will ally playing international rugby for their have a formal complaint about this. We ficials met and “tightened” those same rules countries of heritage and adopted nations. certainly don’t think it is in the right spirit so that players now had to play a minimum Almost two thirds of all Pacific players are of the sport - they seem to make the rules of four sevens tournaments in the IRB World shut out. However, many of them were as they go.”

Sevens Series as well as satisfy an 18-month unaware of the eligibility rules before they For now, it is business as usual for the IRB, standdown before being allowed to comhad declared their international allegiance. but the fight for equality and a level playing pete in the Rio Games. For those seeking to Under the current IRB “one country for field goes on for Pacific rugby. And that represent another country in 15s, the same life” rule, any player who has played for their starts again this month when Tonga’s Ikale rule applied except the standdown period country’s senior national team, “A’ team, or Tahi, Manu Samoa and the Flying Fijians was extended to three years. Therefore, the national sevens team cannot play for another head north for their November tour fixtures earliest a player can now represent their new country for life. The island unions have been which will be the last throw of the dice for country is at the end of 2016 and ruled out tirelessly fighting to have these rules relaxed the respective head coaches looking to find any chance of players wanting to play in next since it came into force in 2000. A glimmer their best combinations ahead of next year’s year’s World Cup which was possibly the real of hope was raised earlier this year.

World Cup.

Pacific unions respond to new IRB player rules

When rugby union was accepted back into the Olympic programme for the Rio Games in 2016, it created a new precedent under the controversial IRB regulation 8, regarding international eligibility. Before the loophole was closed down in September, any player could switch their eligibility to another country as long as it had been 18 months since their last international appearance, and they had played in at least one tournament in the current IRB World Sevens Series which is acting as a qualifier for the Rio 2016 Games. Of course, when news of this went public earlier in the year, it caused a media circus which fed the paranoia that the Pacific nations would be stockpiling “Dream Teams” filled with former international stars from other countries, including a number of well known ex-All Blacks and New Zealand sevens stars such as Isaia Toeava, Rudi Wulf, Tim Nanai-Williams, Joe Rokocoko and Sitiveni Sivivatu.

Not surprisingly, under pressure IRB of-

Islands Business, November 2014 31

Fishery

In the net ... island fisheries ministers sign a historic deal in Atafu, Tokelau. Photo: FFAmedia

Pacific seals historial tuna fishing access deal Kiribati accused of jeopardising US treaty

By Samisoni Pareti The ink had hardly dried when controvesy erupted on the historic tuna fishing agreement sealed in Hawaii last month by 17 Pacific Island nations and the United States.

Just days after hailing the US$90 million deal in return for 8300 days of fishing in the Pacific in 2015 for US tuna association as an ‘historic agreement,’ the Pacific Islands Forum Fisheries Agency had to go on the defensive one week later in support of one of its members, Kiribati.

Media reports accused the island republic of reducing fishing days of US tuna boats in favour of European and Asian-owned boats.

“Contrary to news headlines in recent days reporting widespread ‘shock’ at the news and ‘shattered regionalism’ for Pacific Fisheries, the Pacific Islands Forum Fisheries Agency Deputy Director-General Wez Norris says 32 Islands Business, November 2014

Kiribati made its revised position clear in plenary sessions during the negotiations in Honolulu earlier this month,” the FFA said in a statement released on October 14.

“Kiribati advised the negotiating session that due to changing circumstances it was no longer able to contribute the number of days it had in the past to the Treaty,” says Norris, adding, “the allocation of days is the sovereign prerogative of each Pacific Island Country and one that all governments undertake with much care and consideration for their national circumstances.”.

“The Pacific Island parties accepted that sovereign decision and used the time available in the negotiation session to identify alternative ways to provide a valuable and attractive offer to the US,” he says.

“The ability to work together to deliver this package reflects the strength of regional collaboration and solidarity that has been the

basis of Pacific fisheries management and development over the last 35 plus years and bodes well for the future”.

“Undoubtedly, the revised package will require a change in operations for at least part of the US industry and they made it clear at the session that this would come at cost to them; but at the end of the day, the deal was agreed to by all parties and will be the basis of cooperation in 2015.”

Norris said a critical factor leading to Kiribati’s position was the need to ensure that it retains sufficient days to ensure full compliance with the Vessel Day Scheme by its strongly growing domestic fleet, and to facilitate arrangements that promote greater on-shore activity and broader economic benefit to Kiribati.

“Effective management of the regional fisheries resource rides a critical balance between national aspirations and solidarity with neighbours and the wider FFA membership.

“That nexus calls for flexibility and understanding on the part of all our member countries at many regional fisheries events.

The level of intensity and negotiation was no different here, and I am pleased to see the US$90m outcome for 8300 days to US-flagged purse seiners in 2015 reflects an outcome of solidarity in the region.”

Support for Kiribati has also come from

Fishery

Regional fleet ... Betio wharf on Kiribati which has been accused of trying to jeopardise the US deal. Photo: Invictus Pictures

the outgoing head of the Parties to Nauru Agreement Office, Dr Transform Aqorau.

Kiribati is one of the eight members of PNA. “Now t h e y ( K i r i b a t i ) h a v e m o r e options,” Dr Aqorau told Radio New Zealand International. “Because they are in a much more powerful position, the Purse Seine Vessel Day Scheme has significantly transformed the power play in this fishery.

Whereas before it was the fishing vessels and all that who’ve been dictating the fishery.

Now they are in control of it.” In announcing the Pacific –USA fishing deal on 7 October, FFA’s Director General James Movich hailed it as one of the most valuable fisheries access agreement ever reached in the world.

“We have been renegotiating this Treaty since 2009, when its total value was in the order of US$21 million,” he said. “During that time, the Pacific Island parties were able to secure an increase to $42 million in 2011, and then again to $63 million in 2012. The package that has now been agreed substantially builds on that, and reflects very well the outstanding progress made by the Parties to Nauru Agreement (PNA) in building the value of their purse seine fisheries.”

Movich’s deputy Wez Norris who led the technical team that assisted the 17 FFA member countries in the negotiations in Honolulu last month said the talks was a

challenging one by any standards.

“Any collective treaty negotiation is hard, each participant is a sovereign government charged with securing outcomes that are in the best interests of the countries and the people they represent,” he said.

“Over the course of the negotiations, we have faced and overcome many significant challenges – challenges that have threatened to render regional solidarity. However, reaching an agreement of this magnitude demonstrates clearly that this is a worthwhile investment by the Pacific, and if anything, heralds even stronger ties for the future”.

The two FFA executives agree that by any standard, the deal negotiated by the Pacific Parties is a good one.

“At $90 million, the 2015 deal provides sufficient rewards to all Parties in respect of the access to their fisheries resources that is being provided,” Norris notes.

DG Movick described the outcome of these negotiations as a superb example of regional cooperation and team effort and testimony to the increased expertise and capabilities of regional officials.

The Director General especially recognised “the high degree of commitment and cooperation of the national participants in the negotiating process, supported by the very hard work and excellence of advice provided by Deputy Director Norris and the

technical team from FFA secretariat, and the PNA Office.”

He says Pacific Leaders and Fisheries Ministers have all “played a key oversight role in the negotiations so far and our view is that the negotiation team has more than done justice to their directions in securing this arrangement for 2015.

“It would be remiss not to acknowledge the role of the US in being able to reach this agreement,” says Movick.

“Both the Government and industry have been active in the negotiation and we all hope to bed down a longer term arrangement in the future.”

“The Treaty has been in place as a multilateral access agreement for just over 25 years now. All Parties recognise that the fishery is so different today compared to when it was first negotiated, that some fundamental changes are required to ensure that it really is to the mutual benefit of all Parties, and to the US vessels,” Movick said.

“Rights based management and collective action, as best manifested in the PNA vessel day scheme (VDS), has been highly successful in allowing the Pacific to secure high returns from the fishery.

“Our challenge is to find ways for arrangements like the US Treaty to enhance, and not undermine the achievements of the VDS.” Islands Business, November 2014 33

Viewpoint

Controlled fertility rates linked to economic growth patterns By Ariela Zibiah

I

f there is any resource in which Pacific Island Countries can be certain of achieving sustainability and continuous socio-economic gain, it is its youth cohort.

The key however is significant and serious investment in the fulfillment of their potential as game changers, and if we are to reap the benefits of this demographic dividend.

A total of 717 million young people aged 15 to 24 live in the Asia-Pacific region, comprising 60 per cent of the world’s youth.

Among Pacific island nations, youth (15-24 years) populations range from 14 per cent of the population in Palau to 22 per cent in Federated States of Micronesia.

Inclusive of Papua New Guinea (PNG), 11 of the 15 Pacific island countries’ covered in the recently-published Population and Development Profiles: Pacific Island Countries report a median age of 20 and 24 – this is the age at which exactly half the population is older and half is younger – in 2014.

The high proportions of young people in a population are the direct result of high fertility rates which is the average number of children born per women; the higher the number of children born per woman, the higher the proportion of children in the population.

These children represent growth potential as they will become parents themselves and even if fertility rate fell, the sheer number of youth today means population growth will continue to be recorded for some time.

In the Pacific, the proportion of population younger than 15 years of age are remarkably high, with most comprising a third of the total population for example the proportion of persons younger than 15 years in the Marshall Islands comprises 40 per cent of the total population. Implicit in figures like these are questions of socio-economic issues like employment opportunities.

Countries which attempt to decrease their fertility rates can, over the years, reap a demographic dividend, which is a period 34 Islands Business, November 2014

when a nation’s working-age population is significantly more than the number of dependents – children and older persons. This allows increased investment in other areas of the economies which inevitably accelerates socio-economic national progress.

Taking advantage of this demographic dividend played a major role in the economic ascension of Asian countries like Korea and India between the 1960s and 2000s.

“The demographic dividend can be an invaluable opportunity for change in the region and evidence shows that while the demographic transition can happen in one generation, it is only going to happen if we make significant investment in young people now,” United Nations Population Fund (UNFPA) Pacific Sub-Regional Of-

fice Director and Representative Dr Laurent Zessler said.

“To be able to get the best of our youth demographic dividends we need to ensure they are healthy and educated with access to decent jobs. This means investing in the health, rights and skills of young people, especially adolescent girls, who remain marginalised in large numbers.”

The PICs population profiles reports that of the 15 nations including PNG, the region is characterized by a wide range of fertility levels – from as low as two children per woman in Palau and Niue (2.0 and 2.2 respectively) to almost five children per woman in Samoa and Tokelau (4.7).

Historically, the region’s total fertility rate has decreased dramatically – a sharp decrease

in the 1970s and 1980s were likely brought on by the opening of international airports which exposed island populace to migration and modern lifestyles, the increased number of educated women who decided to join the workforce and the use, access and availability of modern contraceptives.

From the late 1990s however, the fertility rate stagnated in many countries. There are several reasons behind the stagnation including a migrating population of educated and career-minded women or couples and/or cultural values of having children to look after one in old age, logical and practical in the absence of a pension system and/or the persistent low acceptance of contraceptives.

“UNFPA Pacific is continuing its collaborations with United Nations member states or governments across the region in this aspect of our sexual and reproductive health and rights (SRHR) mandate area; access to sexual and reproductive health and rights information and related services are improving,” Dr Zessler said.

“At the end of the day, it is the choice of individuals if they want to use modern contraceptives as tools to plan their family in a way that however many children they have, the children will be able to get the best so they can reach their full potential and in turn, be agents of change.”

Any Pacific country can achieve what the Asian Tigers achieved but we need to create an enabling environment so governments can focus on investments that will take the nation to new levels of socio-economic progress.

Everyone, as individuals or couples, have the basic human right to have as many children as they want, this is a given. However if we were to have children according to the resources we have that can ensure every young person fulfills their potential, reaping the benefits of a demographic dividend can be realised, and may well be one of the lifelines to holistic progress in the region.

The author is a Communication Analyst with the United Nations Population Fund (UNFPA) Pacific Sub-Regional Office in Suva, Fiji.

Environment

Protocol aims to protect traditional knowledge from exploitation

H

istory was made in Pyeongchang, Korea in October with the first Meeting of the Parties to the Nagoya Protocol, a landmark agreement covering access to By genetic resources and the David fair and equitable sharing Sheppard of benefits from their use.

This meeting took place in association with the meeting of the Parties to the Convention on Biological Diversity (CBD COP 12).

SPREP - The Secretariat of the Pacific Regional Environment Programme - was there to support our Pacific Island members who have ratified or acceded to the Nagoya Protocol or who intend to ratify or accede.

To date Fiji, Federated States of Micronesia, Samoa and Vanuatu have ratified with the Marshall Islands and Tuvalu acceding.

The fair and equitable sharing of the benefits from the use of genetic resources is one of the three objectives of the Convention on Biological Diversity.

The Protocol recognises that provider countries have sovereign rights to their biodiversity. This is of great importance for the Pacific region as it is a major step toward ensuring equity and fairness in the sharing of the profits that could be made by the developed world from the biological resources of Pacific countries.

It’s at the heart of the SPREP Vision - a Pacific environment sustaining our livelihoods and natural heritage in harmony with our cultures.

The Protocol ensures that mechanisms are in place for the prior and informed consent of local communities and Pacific island governments before genetic resources are utilised, whether for research or commercial gain.

The Protocol aims to ensure resource owners receive a fair return from their biological resources.

Pacific biodiversity is rich and unique – our peoples for generations have lived with and used our biodiversity for a range of purposes including food production and traditional medicine. This traditional knowledge is still very much in use today.

This biodiversity and related traditional knowledge is of tremendous value to the biotechnology industry in the pharmaceutical, agricultural, horticultural, and other sectors.

Bioprospecting is the activity by which they seek out potentially useful genetic material

David Sheppard, Director General of SPREP, at the historic first Conference of the Parties to the Nagoya Protocol in Korea. Photo: SPREPmedia

or biochemicals from biodiversity.

One example of how the Nagoya Protocol will help the region is to reflect upon the case of the mamala plant in Samoa – which provides some cautionary advice. In the late 1990s an ethnobotanist observed two traditional healers use the bark to treat patients with hepatitis and sent samples of the plant to the US for analysis. It proved to have activity against the HIV-AIDS virus. The active ingredient in the plant, prostratin, was patented by foreign applicants.

An agreement was signed with the village from which the plant had been found but questions remained, including whether prior informed consent had been validly granted, how the genetic resources should be patented, and about the return of benefits to the community and Government of Samoa.

This example was shared by the Government of Samoa at the First Meeting of the Parties to the Nagoya Protocol in Korea.

Another, more positive example comes from the Cook Islands, where a medical researcher observed the traditional application of plant-based extracts for treatment of bone fractures and other medical and therapeutic applications, by members of his community, friends and family.

In 2003 the researcher developed a proposal for the investigation and potential commercialisation of medical and therapeutic remedies and cosmetic applica-

tions based on those plant extracts and reached a benefit-sharing agreement with the recognised indigenous representative body—the Kotu Nui. This led to the establishment of the company ‘CIMTECH’ which incorporates the Kotu Nui. The project is expected to contribute to the local economy through the laboratory and processing facility in Rarotonga, as well as through sales, marketing and tourism.

While these cases are considered to be ground-breaking, many years have since passed and there is now global agreement on how to deal with these issues through the Nagoya Protocol.

SPREP has a programme underway to help our Pacific members and provide them with advice and support as they consider becoming Parties to the Nagoya Protocol and also as they implement the Protocol.

Several workshops, in conjunction with partners, have already taken place to help Pacific island countries learn more about the Protocol and provide guidance on how it will work. These workshops and support will continue under this project.

It’s a pioneering Protocol that was created with strong input from the Pacific island negotiators and its entry into force was celebrated in Korea.

Now we’ll move forward together as we continue working with you as we embark on this maiden voyage.

Islands Business, November 2014 35

Business Intelligence

Skydive Fiji acquires Sunflower Aviation

By Samisoni Pareti

S

kyDive Fiji has purchased Sunflower Aviation for an undisclosed amount after American Samoan airliner Inter Island Airways failed to complete the acquisition last year.

The new owners are husband and wife duo, Susan and Tim Joyce who set up their first business operation - Skydive Fiji, in 2003 and are now expanding with plans already in place for their company – Joyce Aviation Fiji Limited to start domestic flights.

Tim Joyce -- Managing Director of Joyce Aviation Fiji -- said they have applied to Fiji’s Air Transport Licensing Board to mount daily flights to two local tourist destinations.

He said tourist’s demands and providing a career path for students of their pilot training school in Nadi prompted the latest acquisition.

“Introducing aeroplane scenic flights

Awaiting clearance is Joyce Aviation’s latest acquisition, this Beechcraft Duchess BE-76 Photo: Joyce Aviation

and charters was largely driven by a need to provide a stepping stone for Pacific Flying School students because it’s very hard to gain flying experience after spending all the money on learning to fly.

“In my experience, completing your pilot’s licence is only the start so getting your first job and getting your first bit of experience is so critical.

“I see it as dovetailing in with all of our operations if we can also have charter and joy flights which we are introducing with smaller aircraft such as the Cessna 172, 182, 206 right up to the Islander.

“We will start feeding the students into the operation once they have commercial licenses giving them the opportunity to build up commercial experience in a very controlled

Weaker dollar keeping Australians home

By Davendra Sharma

C

urrency fluctuations have heavily deterred Australians from taking overseas holidays over Christmas in the past but this time around travel tour companies do not anticipate a slowdown in visitors to the Pacific islands despite the dollar dropping significantly this year.

Tour operators and hoteliers in the region need not fear a slump in tourists in the 20142015 season because savvy travellers from Australia are opting to take out new prepaid travel cards which allow users to lock in foreign currencies at that day’s exchange rate, a better deal than using regular credit cards.

Foreign tourists entering the islands region from Australia by far exceed travellers from other destinations with exponential growth in numbers over the last decade. Fiji, alone absorbed 332,000 Australians in 2012 – a phenomenal rise from just 128,000 in 2002.

The Australian dollar was riding at US$1.01 in 2011 – which gave travellers a healthy exchange when they took holidays abroad but now it has slumped to US87 cents with some analysts tipping a further decline to as little as US77 cents in 2015.

36 Islands Business, November 2014

“Australians have gained an appetite for overseas travel on the back of our currency kudos,” said corporate affairs manager Haydn Long at Flight Centre – the leading travel agency in Australia. “The dollar’s powerful ride has allowed us to stay and live larger” while travelling overseas to exotic destinations like the South Pacific.

Long said Flight Centre recommends travellers this year to book and pay for hotels, transport and excursions ahead in Australia to avoid nasty exchange rate surprises on your trip.

“Pay as much as you can of your travel before you go. This way you lock in a rate and you know how much you have left to budget for spending money,” said Long.

Four-star stays Australian agents have also noticed travellers are exploring budget stays in the region so they can have greater spending dollars.

Travel agencies have over recent months begun offering discounts on airfares and packages to entice travellers. “If the dollar is weaker, they may shorten their stay or opt for four-star accommodation rather than five,” he said.

Travel Money Oz general manager Dion

Jensen recommends using currency exchange outlets which include commission and fees in their advertised rates. “Avoid airports and tourist areas as the currency exchange businesses in these areas have a captive audience and will offer the worst rate and higher fees and commissions,” cautioned Jenson.

Smart cash passport She said that is why the smart travel card made good sense because it offers security, convenience relative affordability because travellers can avoid withdrawal fees and a sting of other overseas taxes and charges.

Parents whose kids are heading to Fiji, Vanuatu and New Caledonia during the schoolies break starting late November are also opting to get them smart cash passport cards.

Teenagers finishing their high school certificate in late November travel around soon after their final papers – either to local destinations like Gold Coast or nearby overseas stops like Fiji and Vanuatu, the two most common spots for schoolies.

“The fewer transactions you do over there, the more you save,” Australian Channel Nine travel blogger Brodie Harper suggested to

environment, initially doing joy flights and then charters under close supervision.”

Fiji’s Air Transport Licensing Board (ALTB) Chairman Ernest Dutta says they have considered the application and a recommendation has been made to the Minister.

“There are a number of requirements as outlined in the Licensing of Air Services Regulations, and the applicant has met all these requirements.

“These include a financial statement of the company, a copy of the proposed timetable denoting aircraft types to be used, charges to be levied for carriage including freight as well as hourly charges for charters, evidence of Insurance cover to cover both passenger liability as well as hull insurance to cover equipment and others.”

The Air Transport Licensing Board says Joyce Aviation has met all technical clearances for a licence to be issued the only exemption are of one aircraft type.

“A Beechcraft Duchess BE-76 aircraft, is still to be evaluated technically by CAAF,

but this can be added to their licence when technical clearance is obtained,” Dutta added.

It is believed Joyce Aviation purchased the Beechcraft Duchess in May for F$250,000 and the new plane was flown to Fiji from Australia in early September.

The aircraft will be a major boost for trainee pilots as they will be able to learn to fly planes with retractable wheels.

The company’s new plans also include a helicopter training school to run alongside their Pacific Flying School which has produced regional pilots and some of the best local pilots.

Sunflower Aviation was previously owned by one of the aviation industry’s pioneers, the late Don Collingwood who sold Sun Air to Fiji Airways (Air Pacific back then) in 2007.

The national carrier then transformed Sun Air into Pacific Sun to boost its domestic presence which eventually led to Air Fiji shutting down its operations in 2009. Pacific Sun has since been re-branded as Fiji Link.

Although Collingwood had sold Sun Air,

he retained his hangar and aircraft maintenance operations and the Pacific Flying School as Sunflower Aviation before he died last year.

Inter Island Airways made a move to acquire Sunflower Aviation last year but failed to complete the purchase.

“We got involved in Sunflower Aviation really at the start of the year because we had been trying for a long time to set up our own maintenance facility and hangar for our helicopters and Skydiving primarily.

When the opportunity became available with Sunflower Aviation we could see it as an opportunity that we couldn’t afford to pass up,” Joyce said.

Joyce Aviation declined to disclose how much they spent to buy Sunflower Aviation but confirmed completing the acquisition in July with a loan from Westpac Bank.

Tim and Susan Joyce have been successful with SkyDive Fiji, their helicopter business Heli-Tours Fiji and Adventure Sailing Fiji.

would-be travellers planning overseas visits.

Fiji competes with New Zealand, Indonesia, the US, Thailand, the UK and China for travellers from Australia.

Islands revenue soars past $US2billion Fiji earns around F$1 billion every year from tourism with more than half its earnings attributed to travellers from major source markets like Australia and New Zealand, both linking multiple daily four hour flights and visa-free entry to Fiji.

Vanuatu has also become accustomed to huge earnings from tourists arriving from Australia and New Zealand with foreign exchange earnings accounting for around 50 per cent of the country’s GDP. But unlike Fiji, where tourists are attracted to an allround experience, the island archipelago of Vanuatu has specialised in eco-tourism with active volcanoes and tropical rainforests.

Tourist arrivals searching to explore coral reefs and do scuba diving have exceeded 200,000 in recent years.

Vanuatu fetched prominence after the country was being promoted through several reality-TV shows like the US-filmed Survivor or Australian Celebrity Survivor. The South Pacific Tourism Organisation, representing

18 member countries since being established in 1983, forecasts that growth in arrivals of tourists to the region has been incredible with low cost structures and ease of visa entry rules. It said earnings from tourism is by far higher than all exports combined in most countries except Papua New Guinea, which relies heavily on foreign export incomes from non-renewable resources like gold, copper and LNG gas.

Aussie dollar dictates island trade Fluctuations in the Australia dollar also have bearings on export-import trade between the island countries and Australia, which in most cases is the dominant trade partner.

A higher Australian dollar would mean the island exporters would fetch better returns and imports from Australia would be more expensive than other times, when the Australian is trading at a lower rate.

“What’s critical here is the US dollar is turning and that’s what’s driving the markets,” says London-based strategist, Steven Saywell. He predicts that by end of 2015, the Australian dollar would sit around US86 cents and that by 2016, it would be back at US90 cents.

Fuel prices drop Leading Australian carriers Qantas and Virgin have not responded to cheaper overseas airfares despite declining fuel prices over the last five months of this year. Since last June, the spot price for jet fuel in Singapore has fallen from US$125 a barrel to about US$103 but the airlines have yet to follow suit in lowering airfares.

Virgin told media last month that it had no plans to change its surcharges on airfares as their fares were already competitive. Australian airlines introduced fuel surcharges in 2004 on overseas routes like the South Pacific.

“We have some very competitive fares in the market but the reality is that fuel remains a huge cost that we need to manage,” said a spokesman for Virgin, which flies to Fiji, Apia, Honiara, Nuku’alofa and Port Moresby.

Virgin last increased overall ticket prices last year by raising fuel surcharges.

Qantas told media that its surcharges on overseas routes did not recover the increases in fuel prices it had borne in recent years.

Airlines like Qantas buy their fuel in US dollars and consequently currency fluctuations have a huge flow-on effect on fuel costs.

Islands Business, November 2014 37

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