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May
2014
Vol. 40, No. 5
Contents
A nameless deadly storm: 23 dead, 50 still missing in flash flooding in Honiara. Cover report—pages 16-18. Cover photo: Solomon Star
Cover Report
16 A nameless deadly storm
23 dead, 50 still missing in flash flooding in Honiara
18 Patrick Beni - the 10 year-old hero who lost it all 18 The day the gods took over 20 Naidu is Kiwi’s ‘Mr Apple’
Fiji-born entrepreneur lands a logical acquisition
Politics
23 “A world free of nuclear weapons” Pacific calls for elimination of WMD
24 Marshalls’ Attorney General tackles fraud Three charged in alleged Majuro Hospital scam
26 Palau seeks direct air links with PNG Micronesia decries poor air connections
Fishery
31 Tokelau conference on rogue fishing Experts to review strategy on MCS, IUU
Interview
32 Senator Brett Mason Australian Parliamentary Secretary
to the Minister for Foreign Affairs firms up relations with Fiji
Viewpoint
34 Energy poverty and access to electricity in the Pacific
27 Samoa’s finance minister resigns
Environment
27 Million dollar schools un-neccssary says Samoa’s Opposition
Regular
Ruling HRPP bows to grrowing pressure
Business
28 Data holds the key, says SPTO Tourism bodies ask for accurate, timely data 28 Putting Pacific tourism online 29 Banking woes continue to plague Nauru Uncertainties force banking downgrade 30 Chinese yuan, PNG kina open new market of riches It’s become the Pacific’s 2nd largest donor
35 Island Biodiversity
Features
4 Letter from Suva 6 Views from Auckland 7 We Say 12 Whispers 14 Pacific Update 36 Business Intelligence Islands Business, May 2014 3
Letter from Suva Managing Director/Publisher Godfrey Scoullar Acting Editor Samisoni Pareti Group Advertising & Marketing Manager Sharron Stretton
Staff Writer Robert Matau Graphic Design Dick Lee Virendra Prasad Main Correspondents
Australia Rowan Callick
Nic Maclellan
Davendra Sharma
Fiji Dionisia Tabureguci
French Polynesia Thibault Marais
Marshall Islands Giff Johnson
New Zealand Dev Nadkarni
Jale Moala
Ruci Salato-Farrell
Duncan Wilson Niue Stafford Guest Papua New Guinea Baeau Tai Sam Vulum
Patrick Matbob
Peter Niesi
Solomon Islands Evan Wasuka
Alfred Sasako
Tonga Taina Kami-Enoka Vanuatu Tony Wilson
Islands Business is published monthly by Islands Business International Editorial & Advertising Offices Level III, 46 Gordon Street, PO Box 12718, Suva, Fiji Islands. Tel: +679 330 3108 Fax: +679 330 1423 E-mail: Editorial: editor@ibi.com.fj Subscriptions: subs@ibi.com.fj Advertising: advert@ibi.com.fj Printing: Oceania Printers, Raojibhai Patel Street, Suva, Fiji.
© 2014
Copyright © 2013 Islands Business International Ltd. All rights reserved. No part of this publication may be reproduced without the written permission of the publisher.
www.islandsbusiness.com 4 Islands Business, May 2014
You are sorely missed...The late Editor-in-Chief of Islands Business Laisa Taga (in red) with staff of Islands Business magazine . Photo: Supplied
From all of us down here, to Laisa Islands Business International editor-in-chief Laisa Taga’s passing away on April 4, brought in a flood of tributes from across the region and beyond. Here is a small selection of them, compiled to fit a page that her column ‘Letter from Suva’ graced for so many years. We celebrate her life here, writing to her on her special page one last time. Tributes and condolences cascaded incessantly on social media walls and email inboxes just minutes after word got around that you had passed away on April 4. Messages long and short came from far and near from colleagues, friends, associates, mentees, admirers – and quite a large number of people who said they had never known you or met you personally but were so very saddened by your passing. Self-effacing to a fault, you shunned the limelight and always chose to stay in the shadows. You perfected the art of leading your team of staff and contributors from the front – while remaining almost totally invisible. Everyone knew you were editor in chief of the region’s largest and one of the oldest and most respected stables of publications, but you never ever sought to consciously build a profile for yourself. You were too down-to-earth and focused to get on with the job for that. Perhaps one of the most precise descriptions of your unassuming yet affable personality and hard-as-nails work ethic came from Islands Business publisher and long time colleague Godfrey Scoullar. In his letter announcing your passing he wrote, “Laisa was a tower of strength, a hard working and knowledgeable editor with a measured temperament and great sense of humour… As a regional media figure she was a quiet achiever who downplayed her achievements and never sought recognition.” Your unassuming yet strong and firm personality peppered with candid humour was much admired by all who came into contact with you. “I knew Laisa for many years as someone who loved words and yet was quietly spoken; who was strong-minded but yet was easy-going; and
who loved to listen and interpret what she saw in the most elegant way,” wrote Papua New Guinea communications professional Euralia Paine. Longtime contributor Rowan Callick wrote, “It was always such a delight to hear from Laisa, always so bright and breezy and also professional.” Though colleagues and close friends knew you were ailing over the past few months and the inevitable was looming, it does not make the event, when it comes to pass, any less devastating. Especially when you faced it so very bravely and insisted on working until you could do so no more. “It was her wish she should continue to work until she could work no more,” wrote Godfrey. And as Marshall Islands IB correspondent Giff Johnson wrote, “Even having had warning that it was coming doesn’t make it easier to accept.” The Pacific’s interests were closest at heart for you. You felt genuinely and passionately for its parlous political and economic state of affairs, its people and their plight amidst a range of growing challenges. PNG journalist Sam Vulum said, “Laisa was an elite and a tower of a force whose brilliance and flair in the profession were evident in her treatment of topical regional issues … under her relentless leadership until her passing.” “She was a realist and was critical of those whose service to the region was questionable. That was because she was genuinely concerned for the region and in particular, our Pacific Islands people,” wrote Parties to the Nauru Agreement Office CEO, Dr Transform Aqorau. South Pacific Regional Environment Programme (SPREP) Director General and IB columnist David Sheppard wrote, “As advocates of environment awareness and gender equality we
In happier times ... (Above) Laisa Taga with Samisoni Pareti and Godfrey Scoullar.
Posing with Laisa Taga above are her close friends, Seini Lakai (former PINA Coordinator) and PINA Manager Makereta Komai Photos: Supplied
of Pacific society – including the political class. of [her] passing. I couldn’t stop crying.” have always admired and respected the pioneer“She was one of the few women in the Pacific In a touching tribute on the Pacificmedia/ ing strength of Laisa in her many different media who commanded the respect of many leaders and googlegroups web resource, long time friend and leadership roles over the years. She has been a governments around the region even though they media professional Lisa Williams-Lahari said, “I role model for many including staff within our did not always agree with her viewpoint,” Former thank you, big sister, for the lesson in mentoring organisation.” PINA coordinator Matai Akauola said. Fiji Sun and the simple power of an affirming nod. For “Through her many correspondents, Laisa Publisher Peter Lomas, who first recruited Laisa the laughs and conversations, both in the wings Taga was a watching eye, and a listening ear to as a journalist on the original Fiji Sun said, “Laisa of whatever meeting we were at, or in the online the myriad of issues facing all our island states,” was a remarkable journalist and editor. She led one-liners where a quick response on a burning Pacific Freedom Forum chair Titi Gabi was and influenced through deeds, rather than talkquestion was all I needed to deal with the emerquoted as saying on the International Federation ing. She made a true difference in many lives.” gency of the moment. We didn’t always agree, of Journalists website. The sneaking admiration for your unflapbut throughout a career spanning more than two Laisa, you were a mentor and role model to pable personality with a dash of humour never decades one thing has been constant – you have so many young journalists and someone to look went unnoticed. Steve Menzies, up to even for experienced writers Director of The Pasifika Collective from around the region and beyond. wrote, “Laisa had a deliciously wick“I owe her a great debt of gratitude for ed sense of humour and a complete her example and assistance over the disdain for pretence of any sort. years,” wrote journalist Sophie Foster. Her passing is a great loss for anyMedia professional and consultant one who had the good fortune to be Ulafala Aiavao’s tribute echoed, “I inspired by her humanity.” am one of many who benefited from And from amidst the unfoldLaisa’s insight, her assistance and sense ing flooding disaster in Honiara of humour.” came this message from Anouk Lusi Banuve Leqa, a former Islands Ride: “In talking to people about Business staff writer wrote, “Your conthe loss of Laisa Taga over the past stant disciplining and correction but at few days in Honiara, where media the same time ‘mercy and grace’ shown are consumed by the tragedy of paved the way for me. You were always the floods, I am reminded that ‘hard’ but man were they the best traineveryone has stories of Laisa – how ing one could get.” Likewise, writer she encouraged us, made us laugh, Marie Barbier is full of admiration: made us aim higher in our work. I “In the years had been liaising with her [for] feature ideas, she was always the With one of her many mentees Duncan Wilson from New Zealand who spent a few will always remember her guidance and am comforted by the thought most graceful, polite and supremely months on internship at the magazine. Photo: Supplied this is her legacy – the inspiration professional editor to deal with. I am she gave to all of us.” privileged to work with all the editors I always had my back.” Unfortunately, unlike social media walls, space have been freelancing for over the years, but there Your peers and contemporaries had the highest here is limited. It is impossible to accommodate was something so tangibly human about Laisa.” respect for you. Titi Gabi said that during her all the tearful, touching and deeply respectful Like so many who posted tributes, editorial time as editor-in-chief of Islands Business Laisa tributes that are still coming in on this page. But contributor Joycelin K Leahy had never met you: provided a monthly drumbeat unequalled in its they are all on the Islands Business Facebook page “Laisa has been so patient with me with my writregularity and consistency. Former Pacific Islands and Laisa’s personal FB page. ing and the articles and this is so very sad. Oh, I Forum Secretariat Director Roman Grynberg Besides, we can almost hear you, Laisa, from feel so sad. I wish I had met her. How lucky was I wrote, “She was a great Fijian and a wonderful the big newsroom up there asking us to stop the to know her so briefly and in those last moments part to a free and vibrant press in the South Pacific fuss and to can this piece and find a replacement of her life. My heart grieves for this amazing that never feared speaking the truth to power.” for it. And to get on with the job. And to not woman that I have never met.” Haidee Eugenio, An editorial in Republica magazine said, “She miss the deadline! correspondent from the Northern Marianas was a strong, dedicated woman who spent long RIP Laisa, editor, friend, colleague, exemplarily wrote, “I am very grateful for Laisa’s guidance, hours working on assignments and leading from compassionate human being. her knowledge about and interest in Pacific issues the front.” including those involving the Commonwealth of • By Dev Nadkarni on behalf of Laisa’s wide circle of colYou commanded respect from all segments leagues, friends and admirers the Northern Mariana Islands. It’s a shock to hear Islands Business, May 2014 5
Column
Views from Auckland BY DEV NADKARNI
ing current affairs issues that many times I felt she should have done more writing than she actually did. But editorial management and production editing (including rewriting contributors’ pieces) became such a big part of her long, long workday that it must have left little time for her to write anything more than her monthly, much looked forward to ‘Letter from Suva’. Despite the workload, she was unflappable, composed and always had her wit, humour and smiles about her. Her trademark smirk-and-wink, which I was lucky to capture in this picture in 2005, was her way of saying ‘You’re on’. Her ability to mingle with everybody around her was worth emulating. I do not understand Fijian but her conversations with others that I overheard resulted in peals and guffaws of hearty laughter, a testimony to her earthy and highly infectious sense of humour. Her photos on Facebook tagged by others (Laisa couldn’t be bothered putting them up herself) show how much of a family and people’s person she was. Busy workweeks notwithstanding, she made time for her near and dear ones and for her friends. Laisa was one of the first persons I got to know when I arrived in Fiji to teach journalism at the University Laisa’s trademark wink-and-smirk, known to so many of us, was her way of saying, of the South Pacific. In my “You’re on… just go ahead and do it!” Photo: Dev Nadkarni very second week in the country, she invited me to lunch with her friend and then PINA manager Seini Lakai. I remember afraid of standing corrected if she had made that lazy afternoon repast, where we got to an erroneous assumption. But whenever she know about each other better. She invited me to disagreed, she never let it come in the way of contribute to Islands Business straightaway and I her friendships. As mentor and senior colleague, did. She introduced me to her publisher and the Laisa had the capability to bring out the best in doyen of journalism in the Pacific, the late Robert her team. She did it most unobtrusively but Keith-Reid and to Godfrey Scoullar. Those early, firmly and with a great conviction that sometimes animated discussions with Laisa and Robert set surpassed a junior’s own confidence to carry out me on the path of my continuing writing stint the task. in the region. It was Laisa who persuaded me to take on Laisa undoubtedly had what they call a high assignments I never thought I would ever do beemotional quotient. Most of my interaction cause of what I saw as my lack of knowledge and with her after I left Suva to live in Auckland was experience about the region in my early days. She by phone and email. During our conversations once phoned me out of the blue in Auckland and three or four times a month to discuss editorial told me in no uncertain terms – in true bosso style content, she would make it a point to enquire af– that she believed I could take on writing this ter my family, particularly my 92-year-old father. magazine’s leader columns. I would have never She once told me she had great respect for him attempted to do that hadn’t she encouraged me. because he was an author and journalist from Self-effacing and humble to a fault, Laisa never a previous era, though she had never met him. ever sought the limelight. Not many knew until I will miss speaking with Bosso every month they read her tributes that she was Fiji’s first ever as will I miss her emails suggesting ideas, angles woman newspaper editor. Nor did many know and editorial stands and her reminders asking me that she was an ace sprinter who represented her to send copy by deadline, always with the subject beloved country in the Commonwealth Games. line “Desperately waiting for your copy.” She editorially helmed nearly a dozen magazines It is only because I have tried my best to emuwith varying frequencies concurrently for several late her sense of commitment and work ethic years. I wondered how this one-woman powand to live up to her expectations – and because erhouse worked with so many deadlines, often of her compassion, understanding and her faith simultaneously. When I once asked her, she made in me and in my work, that I have never ever let light of it. Small wonder that some of her emails her down. were time stamped 0145 and 0215 hours. RIP, Bosso. She was so good at spotting trends and discuss-
That was too soon a deadline, bosso Exactly a decade ago to the day, on April 18, 2004, when I emailed my first ever Views from Auckland column to Laisa for the May 2004 issue of this magazine, little did I imagine that my tenth anniversary column would be her tribute. In fact, when I called from Auckland to wish her well on her birthday on January 15 this year, she reminded me that 2014 was my column’s tenth year. Ever since, I’ve been wondering what the theme for my anniversary column for the May issue should be. Laisa, like many times before, gave me the idea – but in such a sad way, this once. And to think that Bosso won’t even be reading it… Laisa’s professionalism and work ethic always held me in awe. In her final weeks, she wanted to work as long as she would be able to. When she was too frail to travel to work, she insisted that a small office be set up at her home. It was done but sadly, it did not work out well but Laisa did not give up. The last issue of this magazine left the presses on April 3. Her colleagues rushed with an advance copy to her home. Though she was too weak to meet with them, her son Aisake leafed through the copy for her that evening. He later said she smiled and then went to sleep. She passed away the next morning. Her ability to plan ahead and work simultaneously on as many as six titles on an average workday was simply superhuman. Ever the meticulous planner, Laisa had the cover story for this magazine’s April issue written well in advance in February. In what can only be a strong premonition of the inevitable that April 4 was to bring, she not only held that cover story back but also had several extra stories prescheduled for April. “A major reason why the Islands Business team was able to come out early with the April edition is basically because of Laisa’s immaculate forward planning and impressive work ethic,” says Samisoni Pareti, who held the fort for Bosso. Laisa was a tremendous leader. She led from the front but never making her presence felt. She never asserted authority but nobody ever forgot she was in charge. Her steely strength and firmness had a strong undercurrent of compassion. That compassion extended well beyond her colleagues, coworkers and circle of friends to the common folk of Fiji and the Pacific. It wasn’t hard to see that she had her ear on the ground for them and her heart beat for them. Like all true leaders she commanded respect – never demanded it. With her sharp intellect she could analyse a situation threadbare to suggest a story angle or a stand for comment. A cool head on those strong shoulders, she was a great listener, too, never 6 Islands Business, May 2014
WESAY “Governments around the region will have to redouble their efforts toward reforming land ownership laws and introducing proper documentation to enable legally tenable transactions involving the land, be it for exploitation of natural resources or for merely tilling for subsistence or smallholder commerce. It is undoubtedly a daunting task, but one which needs to be done as early as possible”
T
he story goes that when a western visitor new to the Pacific asked an islander why individual property ownership was so hard, the islander asked a counter question that left the visitor scratching his head. “Can you divide air?” the islander is believed to have asked. When the foreigner replied in the negative, the islander explained that was exactly the case with landed property in the Pacific. Just as it is impossible to divide air into discrete parts, it is inconceivable to divvy up land thanks to long held sociocultural tradition in the Pacific. Almost everywhere in the world since time immemorial, property ownership has been the very engine room of commerce. Not only in the west but also in almost every other part of the world, investment in immovable property has always been considered a sure shot formula for creating wealth over a period of time. The world’s rich lists are full of people who have created wealth through investing in immovable property. The rise of the stock markets and a plethora of other complex investible financial instruments have never succeeded in removing the sheen off investing in real estate anywhere in the world. Despite the inevitable cycles of market booms and busts, which often irrevocably alter the financial and economic landscapes of entire continents, the lure of investment in landed property has never ever diminished. In many cultures the ultimate aim in life is to own a piece of land or property in one’s own name. Land has always been considered gold. But in the Pacific, attitudes toward ownership of immovable property have always been different. Individual land ownership is rare and there are hardly any success stories of wealth created because of investment in immovable property, bar just a few. Difficulty in owning and amassing immovable property by individuals is perhaps a societal construct necessitated by circumstance. In the middle of a deep ocean, land is scarce and limited and it only makes perfect civilisational sense if everyone shared that resource collectively and peacefully. Against a pure subsistence economy background, nothing makes better sense than a communal approach to scarce resources. It is unsurprising therefore that Pacific civilisation has evolved a collective ownership model that has served it well down the millennia. In contrast with other parts of the world, where it mainly centres round the individual, property and land ownership in the Pacific is along familial or clannish lines. There are minor variations to this theme across the islands, but individual property ownership
as is known in the western world is far from the norm in the region. Estimates put as much as 90 per cent of the land in the islands region under ‘customary ownership.’ Western economists have long tended to blame this communal approach to land ownership for the slow speed of economic development in the islands region. There is little doubt that this approach has been a considerable stumbling block towards the creation of both individual wealth and building a nation’s economy. Many Pacific Islanders are known to have left their island homes, lived and worked in western economies, invested in private immovable property there and created much wealth – something that they could never hope to have done back home. The winds of globalisation and the inevitability of integrating into the global economy – if not for economic growth, even for basic economic survival – have begun to exert growing pressure on the Pacific’s communal and customary land ownership approaches. Growing dependence on the cash economy to pay the bills for creature comforts and increasingly indispensable services like water supply, electricity, energy and telecommunications, the need for building infrastructure on land to support these activities are all making demands on land resources. Though national governments around the islands region have been seized of the need and urgency to land ownership attitudes and informal customary laws, little real progress has been made. Barring Fiji and Palau, little land is formally recorded in other Pacific Island nations including the relatively bigger ones like Papua New Guinea and Solomon Islands. More island governments need to move rapidly towards registering land resources in the interests of protecting the rights of the owning communes, who depend on the land for both subsistence and for generating incomes. Lack of proper land registration has already been proved to severely disadvantage communities particularly in Papua New Guinea. The mining boom has left many communal owners of the land being exploited in the lurch, to a large extent because of the absence of documents vouching for their ownership due to there being no registration. As well as exploitation, this lack of information about such an important thing as documentation to vouch for ownership fuels corruption within the government machinery. Pressure on Communal Ownership
Islands Business, May 2014 7
WESAY Governments around the region will have to redouble their efforts toward reforming land ownership laws and introducing proper documentation to enable legally tenable transactions involving the land, be it for exploitation of natural resources or for merely tilling for subsistence or smallholder commerce. It is undoubtedly a daunting task, but one which needs to be done as early as possible. It is, too, without precedent anywhere in the world because of the Pacific’s special cultural traditions towards land ownership. The Pacific, therefore, will have to come up with its own solutions. A new regime will not be easy to develop and will have to evolve over a period of time. Different countries will also have to tweak laws along their own special requirements. As the region inevitably
and irrevocably integrates into the global economy, clear, unambiguous land ownership laws that are enforceable in a modern, widely accepted legal environment need to be urgently put in place. Not only in the interests of businesses and investors but most of all in the interests of the actual owners of the land – even if they are communally owned, as the case will likely be in the region. The importance of this cannot be overstated. Repeated studies in the Pacific have shown that people working on their land generate more income than the minimum wage in their countries. Access and ownership to land, no matter whether personal or communal, must be guaranteed by the state in clear unambiguous ways. For no matter which way one looks at it, land is gold.
“The natural quarantine qualities that isolation and the tyranny of distance provided the islands in the past era are now long gone. Increased tourism, the movement of people for employment and migration and the adoption of new ways of life have broken down those natural quarantine barriers”
R
apid strides in pharmacology and the medical sciences in the latter half of the twentieth century has seen the near total elimination of several diseases and ailments. Many of these had taken a heavy toll on vast human populations across broad swathes of the world’s many regions throughout history, many times wiping out entire villages and townships. A significant number of these life-threatening diseases were infectious, spread by bacteria, viruses and other microorganisms. The advent of antibiotics and their proliferation together with other preventative measures such as vaccination and the adoption of hygienic techniques, procedures and standards in the growing, manufacturing and selling of foods and beverages as well in healthcare have nearly eliminated epidemics caused by infectious diseases. The past several decades have celebrated media headlines every once in a while declaring the global elimination of diseases such as smallpox and polio, though the latter belligerently lingers in some remote areas of countries like Pakistan. The media coverage about diseases in the past little while has tended to shift from the once deadly communicable diseases of the past to non-communicable or lifestyle diseases. Today, though, medical news is mainly about diabetes, hypertension, cardiac disease and obesity among others, which have come to be labeled ‘lifestyle ailments.’ This is as it should be for these ailments are wreaking havoc on not only the medical infrastructure but also the productivity and therefore the economy of entire nations across the world. Of particular concern is the Pacific Islands region, where many of these lifestyle diseases have taken on gargantuan proportions. 8 Islands Business, May 2014
One of the many deleterious effects of lifestyle diseases is compromised immunity and a less than ideal natural ability to fight infections and infectious disease. This is highly concerning because a slew of new infectious diseases as well as the old ones in new versions are rising at an alarming level in different pockets around the globe including in the islands region. The most significant among these are diseases borne by insects such as mosquitoes. In the past 15 months alone in the islands region, 21 documented outbreaks of diseases transmitted by mosquitoes have been reported in 12 countries and territories. Broken down, these work out to 15 outbreaks of dengue, three of chikungunya and three of Zika fever. All these diseases can prove devastating on any population. Previous outbreaks in other parts of the world have taken long to contain and cost millions of dollars. The growing incidence of dengue and to a somewhat lesser extent chikungunya is already causing deepening concern around the region. The region only has to look at another similar island environment – in the Indian Ocean – to see just how devastating a full outbreak of chikungunya can be. Between 2004 and 2007, an outbreak of the disease infected a third of the population of La Reunion Island and cost more than US $83 million to control. But mosquito borne diseases are not the only ones making a vengeful comeback. In March, both Samoa and American Samoa were stricken by outbreaks of the infectious eye ailment called Pink eye, which indeed is a version of conjunctivitis – the inflammation of the outer layer of the eyes. This caused a widespread closure of schools and an overload
Gloomy outlook for the Pacific
WESAY on the country and territory’s clinical systems. Though Pink eye is normally not life threatening, communicable diseases, no matter how mild or severe, have the capability to greatly disrupt life. Unfortunately for the islands region the outlook is not encouraging when it comes to infectious diseases. A report published last month says that more than half the world’s people infected by a drug resistant strain of tuberculosis lives in the Asia Pacific region. Though it has not affected the islands in any significant way as yet, it is important to note that it is well and truly spreading in the Pacific Rim area. Last month Guam noted that as many 60 people from one of its correctional facilities tested positive for the disease. With increased air traffic within the region as well as growing trade in commodities, the threat of a spread to the islands is a very real prospect. The natural quarantine qualities that isolation and the tyranny of distance provided the islands in the past era are now long gone. Increased tourism, the movement of people for employment and migration and the adoption of new ways of life have broken down those natural quarantine barriers. For this very reason, the region needs to be vigilant not only with outbreaks of communicable diseases within it and around it but also far away, even if it is half way across the globe. For instance the outbreak of the almost incurable animal-borne Ebola in parts of Africa, while it may not be an immediate threat here, cannot be taken lightly because of the several ways that disease can travel in the modern world. While this may sound alarmist,
administrations cannot take such potential threats lightly. What may be the reason that insect and animal borne diseases are making a comeback? Among many reasons, research shows that one of the main is the degradation of natural habitats because of relentless development. Growing proximity of humans and wild animals because of the destruction of the latter’s habitats have drastically reduced the distance for infections to travel. Human habitations have been continually encroaching upon the natural habitats of wildlife, setting up livestock farms and grazing animals. This is bringing wild animals, livestock and humans in close proximity and encouraging the spread of a variety of diseases. Altered land use as a result of burgeoning populations and rising incomes especially in the developing world is seen as one of the biggest reasons for closing the physical gap between wildlife, livestock and humans. This is only likely to get worse in the future, resulting in a worsening scenario for infectious disease. Animal-borne diseases like leptospirosis (spread by rodents), salmonella, campylobacter (spread by poultry products) and a host of others are a real threat to vast populations around the region. As well as public health measures driven by the health departments of governments, it is imperative that every individual takes the best care they can to prevent possible exposure to these ailments by arming themselves with information and adopting simple common sense measures, many of them involving obvious day to day hygiene.
“Research for the Oxfam report revealed that the change in net worth of the top 100 wealthiest individuals from 2011 to 2012 was four times more than enough to eliminate global malnutrition in 2013. This is probably the most damaging finding that puts paid to the theory that growth is good for all in any economic milieu in the present scheme of things”
N
o political system has succeeded in eradicating inequality at any time in the history of humankind. Whether it is the many monarchies of the past couple of millennia, dictatorships of the past and present centuries, various shades of communism and governments driven by socialist ideologies or even unbridled capitalism – none have managed to get rid of the scourge of inequality among human beings. The concept of egalitarianism – equality for all human beings – seems no more than a chimera that governments have been chasing for decades. Earlier this year in January, just before the annual World Economic Forum in Davos, Switzerland global non-government organisation Oxfam released a report that took the world media by storm. It said the richest 85 people in the world were worth more than the
poorest 3.5 billion. “Our estimates suggest that the lower half of the global population possesses barely 1 per cent of global wealth, while the richest 10 per cent of adults own 86 per cent of all wealth, and the top 1 per cent account for 46 per cent of the total,” the report pointed out. While the cornerstone of economic success continues to be growth and all efforts at all levels of human activity are directed at achieving growth, the fruits of this so-called growth do not appear to be spread evenly to all strata of society. Rather, the fruits tend to get bunched or lumped in favour of a select few who get to enjoy them disproportionately at the cost of the multitude of others who do not. The old term ‘the haves and the have-nots’ is as valid in these modern times as it has always been in history. Economists have been unsuccessful in coming up with any Islands Business, May 2014 9
WESAY alternative model of measuring success other than growth, even if intuitively we all know that all resources are ultimately finite. More recently, the concept of sustainability has been brought in and this has been moderately successful in certain areas of human entrepreneurial endeavour. But the forces that drive the necessity for unbridled growth far outstrip any initiatives directed at sustainability and ‘growth at any cost’ remains the sole mantra of success for businesses and countries all over the world. While the rationale that governments and the private sector employ to justify unbridled growth – often softening it with the prefix ‘sustainable’ – is to improve the lot of the downtrodden and increase their incomes and wealth, the Oxfam report as well as studies around the world do not support this theory. Repeated studies show that all this growth tends to favour the few who are in control of finances and political power rather than those multitudes that are employed for helping masters achieve these ends. Research for the Oxfam report revealed that the change in net worth of the top 100 wealthiest individuals from 2011 to 2012 was four times more than enough to eliminate global malnutrition in 2013. This is probably the most damaging finding that puts paid to the theory that growth is good for all in any economic milieu in the present scheme of things. Clearly, governments, political and corporate systems are all stacked against the interests of the multitude of human beings on earth. When Oxfam’s Executive Director Jeremy Hobbs said; “We can no longer pretend that the creation of wealth for a few will inevitably benefit the many – too often the reverse is true,” it only sounds like an obvious fact. Yet, there is no serious attempt at any level, let alone global, to stem this trend and come up with mechanisms that could promote true egalitarianism across the world – something that is easily achievable only if there were the political will and a sense of purpose. Study after study points to growing inequality. For instance, income inequality in the 22-member OECD (Organisation for Economic Cooperation and Development) countries is at its highest level for the past 50 years. According to studies, the average income of the richest 10 per cent of the OECD population is about nine times that of the poorest 10 per cent across this elite grouping.
Growth for whom?
Islands Business, May 2014
Twenty-five years ago it was 7 per cent. The United States has fared much worse than this grouping. Even countries traditionally recognised for egalitarianism such as the Scandinavian group and Germany have been slipping in the equality stakes, with the trends for inequality rising everywhere. It is not hard to deduce that this state of affairs leads to widespread dissatisfaction and is recognised the number one reason for all the mass movements of the past decade including the Arab Spring, the Green Movement and the Occupy Movement that made global headlines not so long ago. Inequality is a potent recipe for social disorder and beyond a tipping point could result in chaos, as has been seen in several countries following the global financial crisis. But all is not lost and there is a new sense of purpose that is slowly becoming evident in some of the new emerging economies particularly in Asia. A combination of altruistic political policymaking, stricter governance and good conscience is driving some governments to put in place blueprints for the greater redistribution of wealth resulting from their blindingly fast growing economies. Many of these have also built in genuine sustainability initiatives and incentives into these plans. These Asian tiger economies seem to be showing the western ‘greed is good’ model a viable and sustainable alternative that could well be genuinely good for the world at large. This has very relevant implications for Pacific Island economies, particularly in resource rich Melanesia, which are on the cusp of impressive economic growth in the next few decades. Their considerable natural resources are ripe for monetising as has been seen in Papua New Guinea and Fiji in the past decade and to a lesser extent in Solomon Islands and Vanuatu, not to mention marine and seabed resources across Polynesia. While studies so far indicate Papua New Guinea could do far better in distributing its newfound earnings across its social strata, it is still not too late to make course corrections. In fact this is exactly what an economist from one of the world’s biggest financial institutions, the Asian Development Bank suggested last month. Forecasting 21 per cent growth in the country next year on the back of fuel exports economist Emma Veve warned not everyone in the country was poised to share in the riches of the booming economy. The economist said that Pacific Island countries could take a leaf out of the book of Asian countries when dealing with fast growth and rising inequality.
Pacific Islands Forum Fisheries Agency, FFA Strengthening national capacity and regional solidarity for sustainable tuna fisheries Since our beginnings in 1979, we’ve been there for Pacific nations developing their domestic tuna industries while clamping down on illegal, unreported and unregulated fishing. Whether it’s people, technology, or know-how, we strive to deliver the best use of resources and partnerships to achieve results for our Pacific nations aspiring to secure the best benefits from sustainable Fisheries management. It’s why we are proud to be a joint implementing partner with the Secretariat of the the Pacific Community on DEVFISH II (2011-2016)- working to ensure a fairer slice of the global tuna profits to Pacific peoples. Join us May 9 at the Fiji Museum as we celebrate and share our project highlights in Pacific commemorations of Europe Day.
The Development of Tuna Fisheries in the Pacific ACP Countries Project (DEVFISH)
supported by the European Union
For more information contact:
FFA DEVFISH II Team Leader/Fisheries Policy Specialist Hugh Walton Hugh.Walton@ffa.int
Whispers Fire without the engine …. Residents of Port Vila are up in arms about the absence of the familiar red fire engines when it comes to attending to fire calls in the Vanuatu capital. The engine is reportedly parked in the garage of the Vila Fire Station due to lack of fuel. As a consequence, firemen are answering fire emergencies in private vehicles like the one in the photo, with a portable water pump loaded on the back of the truck. At least 3 homes in Port Vila have been destroyed for the simple reason that the larger red fire engine was not able to respond. One of these razed homes belongs to one time Vanuatu sports star Jean Yves Galine. When the Galine family home caught fire, a family member immediately called the fire brigade – only to be told by a fire officer: ‘I nogat mazout’ (I have no diesel). Neighbours had to work frantically with garden hoses to stop the blaze spreading to their properties, but it was to no avail for the Galines and they lost everything. Under the Port Vila emergency structure, Port Vila Fire Service comes under the Vanuatu Police Force. So when the VPF runs out of money, fire service gets zero funding too. The Fire Service fire engines could carry up to 200 litres of fuel, but firemen say they rarely have more than seven litres in the trucks’ tanks. The situation has become so embarrassing that many residents of Port Vila are calling on the national government to form a Commission of Inquiry to look into the plight of the fire service in the country’s capital.
Dateline loses Tanoa… High hopes that one of Nuku’alofa’s prestigious landmarks will undergo a much needed facelift have been dashed now that Fijian hotel chain, Tanoa Group has withdrawn its interest. The International Dateline Hotel, many the venue of royal and kingdom functions have been closed since late February this year in anticipation of the new ownership. Whispers of a 75-year lease and a US$10 million investment by the Tanoa Group were making the rounds. The Fijian company was however reportedly unhappy about the taxation regime being offered by His Majesty’s Government, and pulled out when negotiations stalled. The failed deal reportedly left a former minister of the crown hugely disappointed because of the time and efforts he had invested into luring the group that owns hotel properties in Fiji, Samoa, Vanuatu and New Zealand. Tonga was supposed to be next in its fast expanding Pacific commercial footprint.
Firemen in a private vehicle with a portable pump on board arriving to fight a fire on a boat moored near Port Vila’s Origin gas storage facility. Photo: Tony Wilson
of some people in the northern Pacific, especially when the Pacific Islands Forum Summit will be hosted in the region in July. Last month’s host of the Australia-initiated and United Nationsbacked Cartagena Dialogue were not impressed at the level of representation of Canberra into the climate change related meeting. Marshall Islands’ Foreign Minister and someone tipped to be a strong contender for the soon to be vacant Secretary General of the Pacific Islands Forum, Tony de Brum reportedly fumed: “They’re sending a very junior official to represent Australia. I’m not sure how we should interpret that. Frankly, it is quite confusing. At first they said they would participate without a flag; now they say they will participate with a flag.” De Brum said he had sent invitations to PM Abbott and his foreign minister Julie Bishop to attend the Cartagena Dialogue in Majuro so “they cannot be naysayers anymore” when it comes to climate change.
Fuming Tony over missing Tony… Australia’s new leader Tony Abbott will have to put in a lot more work to win the hearts and minds 12 Islands Business, May 2014
Pacific’s loss, Eastern Europe’s gain … Campaign by a United Nation agency to pro-
mote media freedom and better housing for the Pacific’s poor has hit a snag. Funding for this particular project under the Pacific Centre of the United Nations Development Programme has dried up reportedly and its team leader based at the UNDP Fiji headquarters had to be released from her contract. A lawyer by profession, this former UN expert was quickly snapped up by an international agency doing human rights related work in one of the former Soviet Union bloc of countries in eastern Europe. Among projects she was handling at the UNDP Pacific Centre was promoting the rights to adequate housing for people living in squatter settlements in Melanesia and the proposed Pacific Media Ombudsman. Land questions on the airwaves… With two public bodies tasked with overseeing the one same single entity of land rental, what will the head of one body do when he doesn’t see eye to eye with his counterpart on a matter relating to land lease or land use? In Fiji recently, one head took to the local radio airwaves participating in
Whispers a talkback show, while his colleague in the other land rental body used the opportunity to call in with his own questions! The ‘caller’ wanted the talkback show guest to explain the options of redress available to landowners when lease of their land expires. It turns out that while one land body allows owners to seek compensation from the courts, this matter is yet to be specified by the other land rental agency. Spin it doctor… One has to give it to the so-called spin-doctors for the length they go to weave in their spin on things. Consumers of Fijian media have been spectators of such spectacular display of master spins in recent times. Take for example the whisper that got published in one of the daily newspapers that a major international hotel chain operating in the country is intending to sell its Fiji-based investments. The rebuttal was swift with the hotel chain denying the media report only to add almost in the same sentence that the international conglomerate is indeed pursuing “an asset light strategy.” But of course “a sale would only take place at the right time”! Not withdrawing… International environmental warriors Greenpeace got caught in the same spin as well. As news hit the headlines of the closure of their Pacific office in Fiji and the loss of employment of its 4 employees, a senior programme director took to the Pacific airwaves to pronounce Greenpeace’s commitment to the region and that the closure of the office should not “be seen as us withdrawing from the Pacific at all.” “It’s just a matter of having a bit of a review,” he was quick to add!
of prominent people in Papua New Guinea has been mandated to do: provide a national refugee policy in 30 days. The policy must recommend ideas that are acceptable in the Melanesian way, and also ensure that the level of services offered to refugees must not be higher or lower than those currently ‘enjoyed’ by PNG nationals! In other words, the panel of 6 women and men will have to define the “Melanesian” way of settling refugees, and they will also need to ensure that these refugees are not treated as “privileged” among the local populace. By the way, West Papuan refugees living in PNG are also included in the scope of the panel’s work. It is being headed by former cabinet minister Dame Carol Kidu and includes Roman Catholic Archbishop John Ribat and former PNG’s High Commissioner to Fiji Peter Eafeare. For relief or re-election… This seems to be the burning question on the streets of Honiara as the national government announces that it’s releasing members of parliament’s constituency funds because of the devastation caused by the freak floods of April 2. Some 23 people including women and children died in that deadly storm in Honiara, 50 still reported missing and up to 50,000 rendered homeless. With parts of Honiara declared a state of emergency, Prime Minister Gordon Darcy Lilo also announced that the members’ constituency funds would be released to “enable members to respond to their constituents’ needs.” But Transparency Solomon Islands is wondering whether this is a genuine humanitarian gesture or a guise for electioneering. The international NGO says some of the constituencies were unaffected by the freak storm.
Dancing first lady… So which island government was left red faced when a photo of the wife of one of their top men appeared in the country’s newspaper causing a near riot at a private function in New Zealand? Whispers of the woman’s ‘social escapades’ have been doing the cocktail rounds in the island capital but the newspaper headline and photo was the evident everyone have been waiting for. The story goes that at a private function in Auckland, the MC had to repeatedly ask the woman, suspected to be under the influence, to sit down and behave. At one instance, the MC threatened to call in the police to restrain her. It’s un-known what the impact of the newspaper headline story and photo has had on the upper echelons of power in the island nation! Near impossible and thankless… Almost impossible but certainly thankless is what a group
Dramatic Fijians… Former Fiji residents seem to be hitting the headlines for all the wrong reasons … First there was this man wearing a disguise and carrying a passport with a “very European name” being arrested in Queenstown Airport in New Zealand. He was bound for Australia and the Australian passport was reportedly faked. He fronted up to border officials at the airport with a hat, scarf and sunglasses. Apparently a pending ‘wounding with intent’ case is the cause of all of the drama. Just as this was hitting the headline, another dramatic antic of a former resident came from the US where police have charged a young man who they say attempted to run two of their officers down, fired a gun at them then when apprehended and awaiting an ambulance, asked the same officers for beer! • Whispers is compiled by the Editor. If you have any Whispers, please contact us on editor@ibi.com.fj
Advertising & Marketing Manager Sharron Stretton Advertising Executive Abigail Covert-Sokia Islands Business International Ltd. Level III, 46 Gordon Street PO Box 12718, Suva, Fiji Islands. Tel: +679 330 3108. Fax: +679 330 1423. E-mail: Advertising: advert@ibi.com.fj Circulation & Distribution Litiana Tokona ltokona@ibi.com.fj subs@ibi.com.fj Sandiya Dass sdass@ibi.com.fj Regional magazine sales agents Pacific Cosmos – 89 Brisbane Street, Oxley Park, NSW, Australia Pacific Supplies – Rarotonga, Cook Islands Yap Cooperative Association – Colonia, YAP, Federated States of Micronesia Motibhai & Co. Ltd – Nadi Airport, Fiji Paper Power Bookshop – Town Council Bldg, Main Street, Nadi, Fiji Suva Bookshop – Greig Street, Suva, Fiji Chapter One Bookshop – Downtown Boulevard, Suva, Fiji Kays Kona Shop – Dolphin Plaza, Suva, Fiji USP Bookcentre – USP, Laucala Campus, Suva, Fiji Garden City Bookshop – Garden City, Raiwai, Suva, Fiji Bulaccino – Garden City, Raiwai, Suva, Fiji Samabula Drugstore – Samabula, Suva, Fiji Kundan Singh Supermarket – Tamavua, Suva, Fiji MH Superfresh – Tamavua, Suva, Fiji Methodist Bookstore – Stewart Street, Suva, Fiji Textbook Wholesalers – Bsp Centre Suva, Fiji MHCC – Suva, Fiji Hachette Pacifique – Papeete, French Polynesia Kiribati Newstar – Bairiki, Kiribati One Stop Stores – Bairiki, Kiribati Robert Reimers Enterprises – Majuro, Marshall Islands Pacific & Occidental – Yaren, Nauru South Seas Traders – Alofi, Niue Nouvelle Messageries Caledoniennes de Presse – Noumea, New Caledonia Wewak Christian Bookshop – Wewak, PNG Boroko Foodworld – Boroko, PNG UPNG Bookshop – Waigani, PNG Lucky Foodtown – Apia, Samoa Wesley Bookshop – Apia, Samoa Panatina Chemist Ltd – Honiara, Solomon Islands Officeworks Ltd – Honiara, Solomon Islands National Stationery Supplies – Honiara, Solomon Islands Friendly Islands Bookshop – Nuku’alofa, Tonga Tuvalu Air Travel, Shipping – Funafuti, Tuvalu Trade and Consultancies – Funafuti, Tuvalu Stop Press – Port Vila, Vanuatu A year’s subscription to 12 issues of Islands Business within Fiji costs $50 and includes a complimentary copy of Fiji Islands Business.
Islands Business, May 2014 13
Pacific Update
Parties to Nauru Agreement loses CEO By Robert Matau
ment process during the year and this is yet to be finalised,” Brownjohn added. he Pacific is losing one of its most prolific A major achievement of the PNA under Dr tuna negotiators who has been instrumenAqorau’s stewardship has been the increased earntal in negotiating greater returns for tropiings PNA member nations had earned from their cal purse seine fishery. fisheries. Parties to Nauru Agreement (PNA) Chief ExIn 2010, skipjack tuna caught in this region of ecutive Officer Dr Transform Aqorau told a PNA the Pacific was valued at US$1.9 billion, with only meeting in Honiara last month that those series $60 million of that going to the eight member of meeting would be his last and he would not be PNA nations. seeking a renewal of his contract when This figure however rose to $3.9 bilit expires in January 2015. lion, with the PNA share rising to $249 He will soon join former Papua million thanks largely to the new PNA’s New Guinea National Fisheries ManVessel Day Scheme introduced during aging Director Sylvester Pokajam in his tenure. a growing number of tuna advocates Through his leadership, the PNA also who have helped shape the region’s attained the Marine Stewardship Counfisheries but are either being replaced cil certification for free school skipjack, or leaving the industry. which emphasises that the fishery and Together in the PNA, and taking on its ecosystem are sustainable. the ten distant water fishing nations, In securing the certification, Dr as a group or individually, Pokajam Aqorau stood up to strong opposition and Aqorau were like good cop/bad Dr Transform Aqorau, from the International Seafood Sustaincop duo. Pokajam, the strong-arm PNA’s outgoing CEO. ability Foundation (ISSF) which had strategist whilst Dr Aqorau would be the services of scientist Victor Restrepo the calm and collected negotiator. Yet and the backing of Bumblebee Foods, both would actually be fighting for the same thing Chicken of the Sea, Clover Leaf and Thai Union - ensuring the sustainable management of tuna so Manufacturing. PNA nations could rake in the maximum benefits. Under Dr Aqorau the United States was forced Dr Aqorau’s deputy Maurice Brownjohn has back to the table to re-negotiate its Multilateral Fishalso confirmed from the PNA Secretariat in the eries Treaty with the Pacific. Washington used to Marshall Islands that Dr Aqorau would not be repay $21m in fishing access fees. newing his contract in the new year. The lawyer After PNG, a signing member of the MFA with turned fisheries negotiator has reportedly told his the US pulled out, the whole treaty was thrown staff that he wanted to focus on projects back in into jeopardy and was only saved when the US his homeland in Solomon Islands. sent a high-powered delegation to the Pacific to re“There will be a formal advertising and recruitnegotiate.
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As a result of fresh negotiations, the US Government now pays $63m a year to fish in PNA waters. Eighty five per cent of this goes to PNA nations and 15 per cent goes to non-PNA members even though US vessels do not fish in their waters. However his greatest challenge perhaps was trying to keep the unity of all the PNA member nations in spite of their sometimes competing interests. Former negotiating colleague Pokajam described Dr Aqorau’s pending departure as a double blow to PNA, following his own removal from the PNG National Fisheries Authority. “We were instrumental in forming PNA and Dr Transform is a strong advocate of resource conservation and small-island developing states’ economic development.” Director General of the 17-member Forum Fisheries Agency James Movick who hails from the PNA’s member state of the Federated States of Micronesia says the PNA and regional and international tuna fisheries will not be the same without Dr Transform’s specific qualities of intelligence, focus, friendliness and wit. Movick said Dr Transform’s commitment, networking skills, keen intellect and patience have been key factors in the most recent evolution of the PNA and in particular, the VDS. “At the same time this sets into place the means to sustainably improve conservation of the purse seine fisheries resource,” Movick said. “Transform has played an instrumental role in this process. “He also deserves credit for consistently urging parties to utilise their own financial resources for this purpose rather than depending on external donor funding.”
Greenpeace to operate by ‘remote control’ in the By Robert Matau
FC meetings regardless of the approach or model that they use because they have been a strong and important voice in the region supporting the susreenpeace’s closure of its Pacific Office in Fiji tainability of the resources on which so many Palast month has ignited fears that the global cific Islands’ people depend,” he said. environmental group no longer considers the All of Greenpeace’s advocacy in the Pacific region a priority. is expected to be done by remote control from Greenpeace campaigner Duncan Williams Sydney. has confirmed that the Fiji office has been However advocacy is expected to focus on closed and all Fiji-based employees have been the end product of raw materials extracted made redundant. He referred all other inforfrom the Pacific including minerals, marine mation to the relocated Greenpeace Pacific products and timber. Office in Sydney. Instead of advocating for sustainable He also declined to disclose the reasons for management of resources, insiders say they the Fiji office closure. will now be looking at going directly to the However it is understood that the signs markets where raw materials from the Pacific were on the wall particularly with Greenpeace end up. having a number of leadership changes in the Delegates at a recent regional fisheries’ meeting. Photo: Supplied. Greenpeace Australia Pacific chief execulast four years. tive David Ritter told staff last month of the Forum Fisheries Agency Director General changes including the closure of the Fiji ofJames Movick said his concern was that the Worldwide Fund for Nature Western Central fice. reduction of Pacific Islanders in the environmental Pacific Tuna Programme Manager Alfred “Bubba” He recommends that its network of volunteers organisation may remove much of the contextual Cook said it was disappointing that Greenpeace in the Pacific would be coordinated from Sydney. sensitivity and empathy that has made Greenpeace would no longer have a presence in Fiji. The volunteers would be referred to as the Paquite an influential player and partner with the Pa“I hope that Greenpeace will continue to be able cific Net. cific Island Countries. to engage effectively in the region and at the WCPThey would work from their homes as Green“Let us hope that distance will not result in
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14 Islands Business, May 2014
them becoming just another international NGO with uniform prescriptions for every fisheries issue regardless of the views and interests of the people who are the key players and focus of fisheries management in this region,” Movick said.
Will Japan stop killing our whales? By Davendra Sharma
coded JARPA II, not a scientific programme as permitted under the International Whaling Commission rules. world court slapped a moratorium on JapaThe ICJ ruling stressed that the Japanese pronese from slaughtering whales in the Antarcgramme violated the Commission’s moratorium tic in April but the country’s whale enthusiasts on commercial whaling. “It is expected Japan will have no plans to stop their hobby in the northtake account of the reasoning and conclusions conwest Pacific. tained in this judgement as it evaluates the possiShortly after the Hague-based International bility of granting any future permits,” the Court of Court of Justice ruled that the Japanese were ilJustice declared. legally huntThe Japan ing whales in Whaling Assothe Antarctic, ciation has long the Fishermaintained that ies Agency despite a chorus of Japan anof opposition nounced it to the killing of would abanwhales around don “research the world, none whaling” plans of the 80 species in that region. are threatened But Agency with extinction. insiders arThe JWA argues gued that the that for decades ruling did not whales have been deter the Japakilled by native nese from conpopulations like tinuing their practice in Japan’s insists its whale hunting for ‘scientific research.’ Photo: Greenpeace those from the island nations for the northwest food and mediciPacific region nal purposes. or extending “The reason that many countries were involved their hunting into the broader Oceania region. in whaling was for whale by-products, such as oil Japan asserts that it carries out whale hunting and bone, in contrast to countries and communiin the two regions of Antarctic and northwest Paties like Japan, Norway, the native American Indian cific on grounds that it is doing so for “scientific and many island nations that whaled for food,” it research”. But the ICJ at their hearing last month said in a media statement. found Japan’s Antarctic whaling programme,
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Pacific peace clearly wants to reduce overheads and office space costs. It is understood Greenpeace has been facing funding problems for its vast programme in the Pacific. Since nuclear protests rocked the Pacific Island nations and the Rainbow Warrior sailed advocates to protest at testing sites, the global green group had lacked similar high profile events in recent times. Its scientific work, studies and researches however make Greenpeace an invaluable player in Pacific fishery. One of their latest studies was ‘Transforming Tuna Fisheries n Pacific Island Countries’ (an Alternative Model of Development) in July last year which promoted the more labour intensive pole and line fishing method. Authored by Dr Kate Barclay of the University of Technology in Sydney, the study recommends excluding large scale foreign owned fishing vessels from national waters with strong consideration given to reserving inshore and archipelagic areas for sustainable artisanal tuna fisheries. It also recommends restricting catches to levels that are environmentally sustainable and economically favourable with more emphasis on hiring local labour.
The IWC estimates that the endangered species of whales have been severely over-hunted to a stage where their populations risk extinction. In the Pacific region, all that remains are only 25,000 Minke whales and about 26,300 Gray whales are estimated to be in the eastern North Pacific. The JWA believe it is a shame that the whaling debate has shifted from scientific discussion to arguments on animal rights as perceived by certain countries like New Zealand and Australia, which took the Japanese to ICJ and groups like the Pacific Islands’ inter-government agencies and Greenpeace. “We cannot agree with this view. Asking Japan to abandon this part of its culture would compare to Australians being asked to stop eating meatpies,” said the JWA. In Japan like in some Pacific Island nations, whale meat is a delicacy. Whale meat is sold on the Japanese as part and parcel of research efforts, being conducted by the Institute of Cetacean Research, initiated by the JWA in 1987. Leading the charge for South Pacific region, Australia and New Zealand campaigned for a ban on the Japanese whale hunting in the Antarctic hoping a ruling by the ICJ would extend to the northwest Pacific, but it did not. The JWA says the Japanese will continue with their research efforts in the northwest Pacific. Said the JWA: “There is a need to carry out the research every year as the number of samples collected and the area (from research) surveyed by one cruise per year are very limited. “The data necessary for the management of the whale resources must show changes in trends over time. Continuous sampling is indispensable to enhance the accuracy of the research.”
Pacific NGOs up in arms By Robert Matau
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reenpeace’s closure in Suva adds to an already growing concern amongst Non-Government Organisations in the region that their services are not appreciated. At last year’s Western and Central Pacific Fisheries Commission meeting in Cairns Australia, delegates decided to limit the attendance of NGO representatives in its closed breakout plenary sessions. This prompted WWF’s Alfred “Bubba” Cook to write to WCPFC’s chief executive Professor Glenn Hurry on behalf of WWF, PEW and Greenpeace in December last year expressing his concern over the way NGOs have been treated at the Cairns meeting. He believes the WCPFC decision contravened the organisation’s founding documents and principles. “What is more important is that, generally, the WCPFC has increasingly taken steps to become more secretive in their operation,” Cook told Islands Business. “The Compliance Monitoring Review at the Technical and Compliance Committee meeting as well as the breakout sessions in which our participation was limited should have been held in plenary in an open and transparent man-
ner, not behind closed doors where decisions on our public tuna resources can be made outside the public eye. This is a very disturbing trend that must be corrected and something every person in the South Pacific should be calling to correct.” Cook said the lack of transparency in the meeting process leads directly to a lack of accountability. “As a result of this increased secrecy, the public is not allowed to know what is going on with their tuna resources and, as a result, cannot become outraged at the action, or lack thereof, decided as part of the process. “With no public pressure to influence the process, some Commission members continue to support weak management steps or the status quo that supports their individual country position, but continues to allow the decline of our important tuna resources in the region,” he said. “Furthermore, excluding observers or otherwise closing attendance of meetings is only part of it. “Another good example of non-transparency is the way that the Commission reports are “sanitised” before they are released to the public. “Names of specific countries are removed from their comments and replaced with generic terms that do not identify the speaker. Islands Business, May 2014 15
Cover Report
A nameless deadl
23 dead, 50 still missing in flash flood
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By Alfred Sasako
t left as quickly as it came. And despite it being nameless, the storm that whipped up flash floodings on April 2 had left a swathe of destruction in its wake in Honiara and across the nation. Authorities were caught napping. Today, as outpourings of financial and in-kind support flood in from within and abroad, the extent of the destruction was only beginning to emerge. The cost of reconstruction and resettlement of displaced families is expected to run into tens of millions of dollars. Of the 50 people listed missing, only 23 bodies, less than half the people missing were retrieved. As they count the cost, authorities were wondering how they missed the torrential rain that had caused so much damage to infrastructure, housing and food gardens. The nation’s laid-back and time-forgotten culture probably had much to do with it. The torrential rain began innocently enough on the night of Tuesday April 1st – the universal Fools’ Day. And fooled it did authorities here. No one including authorities took much notice of the torrential rain that began to pound Honiara and its surrounds relentlessly on Wednesday morning. What authorities didn’t realise was that it had been raining nonstop for two days in the hinterland. As a result, the headwaters of Mataniko River which divides the city of Honiara into East and West had swollen to dangerous levels. There was no warning as the river broke its banks, unleashing a fury of unstoppable flash flooding downstream. By midday on Wednesday April 2, the Mataniko River, which gave birth to the nation’s name, had broken its banks. [More than 440 years ago, Spanish explorer, Alvro de Mendana set foot in Honiara, where his men found gold in the Mataniko River. As Mendana thought about it, he reckoned this must be where King Solomon in the Bible found gold to build the Temple in Jerusalem.] As the torrents of floodwaters rushed through the meandering Mataniko River system, nothing could be saved, let alone, withstand Mother Nature’s fury. Houses, trees, sago palm and anything else that stood in the way were merely uprooted, flattened and swept away. The debris simply made its way to the river mouth and into the ocean beyond. Several women and their children trapped inside their houses simply vanished within seconds. In one instance, one entire family decided to go with their brand new house. Calls by neighbours to evacuate were ignored. “We spent so much money building this house. Leave us alone to die in our house,” was the parting words of the father, who prior to the wall of water engulfing the house, was watching a movie in the comfort of his house that Wednesday afternoon. Minutes later the house was simply uprooted from its concrete pylons and carried downstream. As it made its way down river, it
16 Islands Business, May 2014
Picking up the pieces...Honiara residents dig through debris on Honiara’s coastline a day after
took with it several more houses and trees as well. A kilometre or so downstream was a steel bridge built during the World War II by Allied Forces. This one lane bridge withstood every major flooding in its 72-year history. It was no match for the April 2014 flash flooding. Until a few years ago the Mataniko single-lane bridge provided the only link with the famous Chinatown as well as East Honiara where the nation’s international airport, Henderson, is located. Today, the bridge was no more. The flooding merely uprooted it from its foundation and swept it along with other debris. On the eastern banks of the river, where many of the shops in Chinatown were located flooding ate away about 10 metres of soil. Many businesses lost houses and goods valued at tens of thousands of dollars. One large house was hanging precariously on the edge of the riverbanks. About 200 metres or so downstream from the steel bridge was a newer two-lane concrete bridge. Built in the early 1980s, the bridge took a direct hit from unopened containers of goods as well as other floating debris in the fast flowing river, weakening its structure. Engineers including those from Australia promptly stabilised the bridge but at a cost. Traffic slowed to a snail’s pace. The engineers were still working on the bridge two weeks on. A four-lane bridge, which would cost taxpayers an estimatedUS$814,000 is being
y storm
Cover Report
ing in Honiara
the floods. Photos by Stephen Diisango, Solomon Star.
planned as a replacement. On the opposite side of the Mataniko River banks was the towering Koa Hill settlement. At the top of the hill sits the American War Memorial in central Honiara. Below, at the foot of the hill was more or less a housing estate. Just about every building there disappeared under the might of the flooding. In one house, a 10-year-old boy’s frantic attempt to get her mother and his other siblings to escape, came all but too late. Within minutes the house was engulfed by flooding. Patrick Beni’s mother who was having an afternoon nap and three siblings all died, entombed in their house. Ten year-old Beni got swept away in the raging floodwaters as well. In the end, he was the sole survivor of an entire family. The father was at work at the time of the tragedy. Beni’s attempt to save his brother, Francis, failed when he lost his grip on Francis’s hands as a huge wave hit both children who were clinging to a floating log in the open sea just outside the Point Cruz wharf. Patrick was later rescued and rushed to the National Referral Hospital, where he was treated for injuries he sustained during his ordeal before he was allowed to go home. He later gave an emotional interview in a front page article of a local newspaper. The only other survivor along the Mataniko River banks is an Anglican Church building. It too stood on the foothills of Koa Hill
The day after...Koa Hill settlement on the banks of the Mataniko River was left in ruins after the floods.
in central Honiara. “Every building around the Church had gone. Miraculously, the Church building survived despite the fact that it too was under metres of fast flowing water on that Wednesday afternoon. Not a single thing was damaged,” one resident told me. Could this be an act of God? Many in the area believe it is. Here’s why. According to those who live in the area, every time the local priest rings the church gong (bell), it was treated as an invitation for others to put their “worldly” music on full blast right next to the church building. Sometimes the priest had to come outside to beg these people to “give my parishioners just half an hour, please.” This goes on for months on end. “The fact that the church building survived such flooding must be an act of God,” one churchgoer said. At sea, at least nine ships were washed ashore. These inter-island cargo and passenger ferries could not withstand the force of the raging seas. One passenger/cargo ship ended up on the concrete of a jetty just outside the main Market in Honiara. A woman’s body was reported to have wedged between the boat and the concrete bed of the jetty. Attempts to retrieve the body failed. Islands Business, May 2014 17
Cover Report
Patrick Beni – the 10 year-old hero who lost it all By Alfred Sasako Ten year-old Patrick Beni was home that fatal Wednesday morning. Like other children of his age, he did not go to school due to the inclement weather, with non-stop rain almost all weekend. His mother was asleep in her bedroom of the rented home on the foothills of the Koa Hill settlement, inhabited by largely Malaitan workers. For her mother, it was a perfect weather to snuggle way under a warm blanket while the kids were left to their own devices. Being the eldest, Patrick was up to his duties. As he peered out the window he could see the Mataniko River had burst its banks and floodwaters were beginning to rise faster than he had previously witnessed in a series of floodings over the previous 12 months. He went to his mother’s bedroom and raised the alarm “I rushed in to wake Mum who was sleeping in her room and told her we must escape because the floods are coming. But Mum responded the water won’t reach our house. I insisted she get up to see for herself,” young Patrick told a local newspaper. By then it was far too late. Their house was surrounded by fast flowing currents. The first victim was his younger brother named Junior. He was crushed to death by a falling sago palm tree adjacent to the house. His mother grabbed Patrick’s 18-month-old sister Salome and caught hold of one of the sago palm trees as it swept past their house, which quickly followed. Patrick and his other brother, Francis, 7, held on to the second sago palm tree. “When we came to the old Mataniko Bridge, I told my brother Francis to keep close to me as we squeezed our way through the debris blocking the bridge. We managed to get through under
Patrick Beni, 10, was the sole survivor when floodwaters swept away his Koa Hill home, killing his mother and his 3 younger siblings. Photo by Daniel Namosuaia of Solomon Star
the bridge and on the other side,” he said. At that point he had lost sight of his mother and baby Salome. Patrick said he saw a mattress floating by so he grabbed it and he and Francis could use it as a float. “As we approached the main Mataniko Bridge, I saw my Mum and my little sister in front of us. But I think my sister had already died when
the water took them under the bridge because there was hardly any time to breathe between the water level and the bridge,” he said “My Mum was only holding on to her that time.” Patrick said he called out to her mother but she did not respond. “Mum did not respond because she herself was gasping for air at that point in time. “I never saw them again,” he said as he recalled his own and Francis’s ordeal. As the river current took them out into the open sea, Patrick saw two logs floating by. He managed to grab hold of them and he and Francis used them to rest and hypothermia sets in and they became very tired. They floated out to where fishing boats were anchored but no one seemed to hear their frantic calls for help. The rough seas helped push them towards the shoreline. “This time I was holding on to my brother as we both floated on a log towards the shore.” By then searchers mounted a barge wreck on the foreshore. “The men on the wreck saw us and threw a rope. When I tried to grab the rope, I lost Francis’s grip on my hands. “When I tried to grab hold of him again, the waves just smashed him into a pile of debris in front of us. I never saw him again.” “At that point I shouted, ‘Help Me.’ One man came to his rescue before he too ended up in the pile of debris that had entombed his brother Francis. Young Patrick said the burden of losing as he did, a mother and three of his siblings was too much a burden to carry. “I have been thinking about my mother, brothers and sister all the time. I miss them,” he told the Solomon Star newspaper. “Although I am alive, I’m not happy because I lost them.” He said “Mum’s spirit has visited me, maybe because I think about her a lot.”
The day the gods took over By Alfred Sasako There was nothing unusual about the heavy rain that began to pound Honiara on Wednesday April 2. Other parts of the country had been pelted by the heavy rain, causing flash flooding as well as extensive damage to roads, bridges and food gardens. In Honiara, Police Sergeant William Foufaka was at work at Rove, the Royal Solomon Islands Police Force’s (RSIPF) headquarters in West Honiara. He had a house on the east bank of the Mataniko River. By 11:30 that morning, his pregnant wife started calling him to report that the river had been rising. She feared the Mataniko River could burst its banks and there was no way she could save herself, their child and other extended family members. “I just keep switching off the phone, because we were in an important police meeting,” the Sergeant said later. 18 Islands Business, May 2014
As the rain intensified, Sergeant Foufaka decided to call his wife “to check just in case the river had flooded.” By the time he had managed to reach her, floodwaters were lapping on the wooden floor of the semi-permanent building. “If you aren’t here soon, we’ll all be washed away. The river is rising dangerously fast and you may not see us,” was all his wife said to him before the phone went dead. “I raced out into the rain, got into a police vehicle and with siren blaring and emergency lights flashing, I was on my way,” Sergeant Foufaka said later. What he didn’t realise at that time was that his house had been cut off and floodwaters had isolated his entire family from any way of escape. As they stopped on the main road, he could see that he had minutes to save his family – his pregnant wife, their child and his mother. With the help of a canoe with a nylon rope tied to it, Sergeant Foufaka and one other policeman
got into the water and waded their way towards the house as the flood level in the house sitting on a two-metre high wooden posts, continued to rise. By the time they were in the house water had reached knee level. “We got the family and anything we could lay our hands on into the canoe and pushed them away to safe grounds. The other policeman and I went through the house grabbed a few items here and there and as we turned to go, a powerful gush of water hit us, closing the door on us. It was very difficult to open the door,” he said. “We had to smash one of the windows in order to get out of the house because we knew the house could go any moments from now.” They were not wrong. In a matter of minutes, the house was uprooted and swept away downstream. As Sergeant Foufaka stood with his family on safe grounds, all he could hear was the crunching sound as the house was dragged downstream against other fast flowing debris.
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Cover Report
Daven Naidu with a collection of old Apple computers and laptops. Photos: Dev Nadkarni
Naidu is Kiwi’s ‘M
Fiji-born entrepreneur lands a logical acquisi
S
By Dev Nadkarni
uva born New Zealand technology entrepreneur Daven Naidu has acquired the entire national chain of Apple Computer retail stores across New Zealand. His Auckland based company Logical Systems, which also operates in Fiji, bought out all the YooBee stores, which sell Apple computers besides a wide range of other high 20 Islands Business, May 2014
technology consumer electronics products across New Zealand in March this year. YouBee is well known as the ‘Home of Apple’ in New Zealand. The chain consists of glitzy stores in upscale shopping districts of all the country’s major urban centres – Auckland, Wellington, Hamilton and Christchurch. The stores sell the entire range of Apple products – desktop and laptop computers, tablets, phones, digital music and video devices
Cover Report name and logo is a veritable highpoint in Daven’s entrepreneurial career. Humble roots From humble beginnings in the quiet backstreets of Suva’s Toorak to the bright, plush environs of showrooms retailing the world’s most popular tech brand throughout New Zealand, it has been a long but eventful journey for Daven Naidu. Landing in Auckland alone as a young adult with all his worldly belongings in a small suitcase and just a few dollars in his pocket, Daven began life in New Zealand as a student, working odds and ends to meet his living expenses. Not much later, he qualified himself as an engineer and began working long hours at a computer service unit. He did the hard yards for several years, picking up in the process both the technical and management sides of the technology products retail and service business. It did not take long for him to realise he could do better if he struck out on his own and became his own boss. Daven took the plunge and started out with his own computer sales and service firm. Over the years, Logical Systems acquired its own substantial premises in Auckland and built up a reputation as a reliable sales and service provider for Apple products. Logical Systems has been successful in both individual and institutional and corporate sales, though all its activity has been conducted away from the bright lights of glitzy retail premises. In the meanwhile, Logical Systems also took to distributing a range of tablets for the education sector in New Zealand and countries in the Pacific Islands region.
r Apple’
i tion and a widening range of accessories. YouBee also runs service centres on the premises. An Apple man to the core for three decades, Daven’s company Logical Systems earned its reputation as a dealer and service centre for the world’s most recognised computing brand. Having worked his way up the extremely competitive technology sales and service market over the past two decades, the acquisition of the national retail chain selling products bearing the world’s most valuable brand
‘Natural progression’ Daven sees the acquisition of YouBee as a “natural progression for the business,” now that it has built up so many man-years of experience in selling and looking after proud Apple-owners’ prized gear. “We’ve been at it for a long time. It’s just that now we are on main street New Zealand,” he says. Daven is embarking on a number of initiatives to enhance the customer experience at YouBee. “It’s about adding value to a customer’s visit and making available services more easily and efficiently,” he adds. For one, Daven is already expanding his team of techies across his centres to better serve YouBee customers’ technical service needs. He is also adding new ‘one-stop shop’ ideas to ensure YouBee delivers a bouquet of services to customers. For instance, from May 1, customers who buy iPhones or iPads will have the option to buy voice and data plans while they are at the store. He has tied up with New Zealand’s third mobile service provider 2Degrees to set up shop at YouBee’s flagship store in Auckland’s Newmarket. In addition, he is strengthening another experience area in the stores. Having acquired their latest gadget at YouBee, customers will be walked through the features of the product in all its detail by product specialists at the store. There will also be regular training sessions at the store. The longtime Apple fan that he is, like so many millions around the world who identify closely with the brand, Daven is planning to convert a small section of the store into a mini Apple museum. He has already displayed a collection of old Apple desktops and Islands Business, May 2014 21
Cover Report
Daven Naidu outside...the flagship YouBee store in Auckland’s upscale shopping district Newmarket.
laptops including the earliest models that the Cupertino, California headquartered technology giant marketed. Clearly the name of the game for YouBee is enhancing the customer experience to build loyalty, word of mouth recommendation and top of the mind recall as the place to go to buy an Apple product or have it serviced. Daven plans to roll out several other initiatives focusing on customers in the coming months. Fiji close to heart Any plans for Fiji? Logical Systems already has a presence in the country through its store in Garden City in Suva. The Fiji operation both sells and services the Apple computer range to individuals, institutions, governments and corporates. Daven says he does not immediately have plans to expand the YouBee concept of branded store to Fiji but is not ruling out a future plan to do so. Logical Systems has been in Fiji for close to a decade now. Fiji is closest to Daven’s heart. He is involved with a number of charitable organisations that work in Fiji. Most notable of these is the Friends Of Fiji Health (NZ) Inc, better known as FOFH, which is a New Zealand based charitable organisation, that helps organise visits by New Zealand doctors, surgeons and specialists to Fiji every year. Daven has been a founding member and served as its secretary. FOFH, comprising medical and paramedical professionals mostly based in Auckland, in association with the Ministry of Health in Fiji, has led more than half a dozen missions to Fiji and provided medical assistance to more than one thousand patients free of cost. The foundation is fully charitable with no administration costs. All trustees’ meet the financial cost of running the organisation personally. A keen golfer, Daven regularly organises golf events as fundraisers for the foundation. “I am a bit short on time these days for golf, though,” the soft-spoken Daven says, downplaying his considerable golfing skills, which have earned him a hole-in-one. “Ask me if I’d prefer a million dollars to a hole-in-one, I’d always prefer the latter,” he says. Fiji’s Natadola is his favourite course. Daven believes Fiji’s technology services sector is full of potential. “The country needs to get a few things right,” he says. “For instance, though internet and mobile access costs have reduced in the past few years, access rates and the quality of connectivity have to improve 22 Islands Business, May 2014
Daven Naidu with a staffer at the YouBee flagship store in Auckland.
vastly if investment is to be seriously sought in the sector,” he adds. Promoting the technology sector goes far beyond piecemeal initiatives like building tax free zones. “The sector has to be seen holistically. Technology, connectivity, compliance, infrastructure and taxation have to be considered. And it needs specialists to deal with the situation if meaningful progress is to be made,” he says. But Daven is full of hope for his country of birth and is sure it will do what it takes to open the technology sector in time to come. For now, Daven and his core management and technical team are focusing on building the recently acquired YouBee business. “It’s a new acquisition so we’re looking at how best we could put to use its profile, our team’s technical expertise and sales experience, throw some creative ideas in the mix and see how we can deliver an enhanced customer experience and grow the business,” the quiet, self-effacing entrepreneur says.
Politics for strengthened multilateral negotiations on nuclear disarmament. The RMI delegation criticised the lack of progress by the nuclear powers to meet their disarmament obligations: “We believe that states possessing nuclear arsenals are failing to fulfil their legal obligations in this regard. Immediate commencement and conclusion of such negotiations is required by legal obligation of nuclear disarmament resting upon each and every state under Article VI of the Non Proliferation Treaty and customary international law.”
Senator Jeban Riklon testifies as a nuclear survivor at the Nayarit Conference. Photo: Nic MacLellan
“A world free of nuclear weapons” Pacific calls for elimination of WMD By Nic Maclellan* Pacific governments have endorsed a call for a legally binding agreement to ban nuclear weapons at a major international summit discussing the humanitarian consequences of nuclear weapons. On behalf of six Pacific nations, Teue Baikarawa of Kiribati presented a joint statement to the Second Conference on the Humanitarian Impact of Nuclear Weapons held at Nayarit, Mexico in February. The statement, endorsed by delegations from Kiribati, Marshall Islands, Papua New Guinea, Samoa, Tonga and Tuvalu said that nuclear weapons must be outlawed and eliminated without delay. Drawing on a long history of regional opposition to nuclear testing, the statement reads: “Pacific Island nations have long called for a world free of nuclear weapons. Today, we reiterate our firm belief that the only way to guarantee that these terrible weapons of mass destruction are never used again is to ban and eliminate them. “It is unacceptable that the deadliest weapons of all – nuclear weapons – are the only weapons of mass destruction not yet expressly prohibited by an international convention. A treaty banning the use, manufacture and possession of nuclear weapons is long overdue. This conference has demonstrated that there is a clear humanitarian imperative for us to start negotiations.” Jeban Riklon serves as Senator for Kwajalein
Atoll in the Marshall Islands Nitijela (Parliament). As a young child, he was living with his grandmother on Rongelap Atoll, one of the northern atolls in the Marshall Islands affected by radioactive fallout from the March 1954 Bravo nuclear test. Speaking in Mexico, Senator Riklon said: “I was only 2 years old, but I grew up to witness and experience the unforgettable human consequences from the fallout. When you spend your whole life seeing that much physical and emotional pain, your tears dry up and you force yourself to question intentions, justice and human value. Many of our survivors became human subjects in laboratories and almost 60 years on, we are still suffering.” “Six decades later, our people are still exiled from their home islands; our people continue to endure health, physical and emotional pain,” he added. “A recent report commissioned by the UN Human Rights Commission on the ongoing effects of nuclear radiation in the Marshall Islands has highlighted immense delay in the proper disclosure of documents and the lack of attention to the ongoing distress of the Marshallese people.” One outcome of the Nayarit conference is a proposal to commence new studies on the effects of radiation on nuclear survivors. The joint statement from Pacific delegations to the conference called for the study on the impact of nuclear weapons and radiation to be extended to the Pacific region. The Marshall Islands Government also called
Red Cross speaks out The Nayarit Conference was also attended by a range of non-government and community organisations, a sign of renewed civil society mobilisation for nuclear disarmament. Since 2007, the International Campaign to Abolish Nuclear Weapons (ICAN) has been rallying support for an international agreement to ban nuclear weapons. Community campaigns have also been boosted by the decision of the international Red Cross / Red Crescent movement to speak out on the humanitarian impact of nuclear weapons as part of their broader commitment to international humanitarian law. In November 2011, Red Cross societies from Australia, Cook Islands, Fiji, Kiribati, Federated States of Micronesia, New Zealand, Palau, Papua New Guinea, Samoa, Tonga and Vanuatu joined their counterparts in 29 other nations to call for the prohibition and elimination of nuclear weapons. They spoke out against the “continued retention of tens of thousands of nuclear warheads, the proliferation of such weapons and the constant risk that they could again be used.” This demand for action was restated in November 2013 when the International Red Cross and Red Crescent movement set out a four-year plan towards establishing an agreement to ban and eliminate nuclear weapons. In Nayarit, Pacific government delegations endorsed the Red Cross initiative. “We commend the recent efforts of Red Cross societies in the Pacific to raise public awareness about the dangers of nuclear weapons. We fully support the Red Cross’ call for concrete steps leading to the negotiation of a legally binding international agreement to prohibit the use of and completely eliminate nuclear weapons.” Following a decision at its 10th General Assembly held in Honiara in 2013, the Pacific Conference of Churches (PCC) has reaffirmed its support for comprehensive nuclear disarmament. “The Pacific must speak with a united voice to bring about attitudinal change in the larger nations,” stated PCC General Secretary Reverend François Pihaatae of French Polynesia. “We must speak out, for if we remain silent the larger countries will be under the misconception that their testing, development and construction of nuclear weapons are acceptable. That is why we will continue to call for a global ban on nuclear weapons.” While 128 government delegations attended the first conference on the humanitarian impact of nuclear weapons in Oslo in March 2013, the number had increased to 146 at the February 2014 meeting in Mexico. A third conference will be hosted by Austria later this year. (Nic Maclellan was the author of an ICAN report on the health and environmental impacts of nuclear testing in the Pacific, launched at the Second Conference on the Humanitarian Impact of Nuclear Weapons in Mexico.) Islands Business, May 2014 23
Politics 2000s and 2010s, and complaints by vendors as early as 2011, little was done to address contract fraud until the end of last year, when a former employee of Genesis Island Enterprises RMI passed evidence — emails, financial reports and other paperwork — to government law enforcement offices showing that “incentives” were repeatedly paid to hospital workers in the 2012-2013 to secure medical supply, equipment and maintenance contracts at Majuro Hospital. At the end of March, Marshall Islands chief prosecutor and Acting Attorney General Jack Jorbon filed 52 criminal charges against the owner and manager of Genesis alleging they bribed Majuro Hospital officials on 13 occasions to win contracts. Genesis owner Herminio Alfonso, who is based in Pohnpei, and Manager Ariane Jay Demayo were both charged with 52 criminal counts — 13 each of bribery, theft by deception, securing execution of documents by deception, and criminal conspiracy. Only Demayo was on island and present at an initial hearing before Chief Justice Carl Ingram where he was ordered to hand in his passport until the conclusion of the case. A few days later, at the preliminary hearing, Demayo was vigorously defended by Chief Public Defender Russell Kun, a former Nauru Parliament Speaker, and three days of hearings ended with Chief Justice Carl Ingram directing both attorneys to file written closing arguments, with a decision as to whether there is adequate evidence to proceed to trial expected the first week of May.
Piles of documents...Marshall Islands Acting Attorney General Jack Jorbon (right) and Assistant AG Yolanda LodgeNed (left) present hundreds of documents for evidence to the High Court in support of alleged bribery charges involving contract tenders at Majuro Hospital. Photo: Giff Johnson
Marshalls’ Attorney General tackles fraud Three charged in alleged Majuro Hospital scam By Giff Johnson Three people have now been charged with a combined 142 criminal charges in the Marshall Islands High Court, charges that allege a pharmacy company bribed Ministry of Health officials to secure hundreds of thousands of dollars in hospital contracts. The latest round of criminal 24 Islands Business, May 2014
charges to hit the High Court follows a round of successful prosecutions in 2011 and 2012 that ended in convictions of several Ministry of Health and Finance workers who conspired with private sector companies to bilk hundreds of thousands of dollars from the hospital through a fake invoice scheme. Despite hospital audits showing repeated violations of tender laws year after year in the
Cheque Register Seized While the case against Demayo was revving up, Jorbon filed 90 charges against Majuro Hospital associate administrator Francis Silk, who was put on leave at the beginning of January when the bribery investigation started. The charges allege he accepted bribes to help Genesis gain medical equipment and supply contracts from June 26, 2012 through December 24, 2013. He is charged with 18 counts each of bribery in official matters, misconduct in public office, theft by deception, securing execution of documents by deception, and criminal conspiracy — which claim he accepted bribes ranging from US$500 to US$7,500 to gain approval of contracts for Genesis that ranged in value from a low of US$580 to a high of US$218,000. The charges say he received US$53,600 over 18-month period. The charges laid against the Genesis officials say that for one year from June 26, 2012 they engaged in bribing Silk in exchange for him “using his influence to steer bids toward Genesis by communicating confidential information to Demayo, usually by email, regarding potential MOH orders, and Genesis in turn would provide a ‘padded’ price quotation for the needed item. Silk also aided Genesis by using his influence as associate hospital administrator to recommend sole sourcing to Genesis and not provide an adequate number of price quotations from other vendors.” Financial documents from Genesis that are included as evidence with the charges against Alfonso and Demayo include a cheque register that lists payments to a number of hospital workers. In the case of Silk, payments are listed under the heading: “Sir Francis incentive.” A Genesis “profit and loss” statement for 2013, included
MARSHALL ISLANDS as government evidence, lists nine individuals receiving over $93,000 as “incentives” in 2013. Annual government audits in the Marshall Islands have, for years, shown repeated and unresolved problems with government ministries adhering to the procurement law. For the most part, despite audit findings, these problems have been allowed to go unfixed for a long time. It also didn’t seem to matter to senior officials that the Ministry of Health was awarding contracts to companies whose tenders were hundreds of thousands of dollars over qualified low bidders. More than two years ago, nine senior Marshall Islands Government officials were given details about hospital bids that were repeatedly being awarded to Genesis, even though other qualified bidders offered much lower prices for hospital equipment. Both an attorney for a Guam-based medical supply company and a U.S. Department of Interior official called into question the bidding process at the Ministry in January 2012, with an Interior official saying one bid “raises a number of questions regarding the fairness and impartiality of the Ministry of Health Bid Committee.” X-Ray Machine Tender Debacle Multi-Drug Resistant Tuberculosis “MDRTB Radiology Network” equipment for Majuro Hospital was tendered twice because of a protest when Genesis was first selected despite its bid price being $142,469.62 higher than Guam-based MedPharm, the Micronesia region’s authorized dealer for the x-ray equipment. This x-ray equipment was originally put out for public tender by the Ministry of Health in late 2010. Nearly 18 months later, on March 30, 2012, Chief Secretary Casten Nemra said in a letter: “As you are aware the project has been stalled for quite some time such that the operation of the hospital has been affected. There is a pressing need to bring in and install the equipment.” Despite Majuro Hospital’s “pressing need” for this x-ray system, to this day, three-and-a-half-years after it was initially put out for tender, it still has not been purchased. “This protest is actually the second protest filed by MedPharm for the same project,” said Majuro-based MedPharm attorney David Strauss in a January 26, 2012 letter. “The earlier protest concerned the attempted award of the bid (tender) to the higher bidder, Genesis ($399,000) back in May 2011. Instead of awarding the bid to MedPharm as the lowest qualified bidder ($256,530.38), the Ministry of Health decided to re-bid the project.” Based on MedPharm’s April 2011 protest, the Attorney General’s office rejected the tender award to Genesis and the Ministry put the contract out for public tender a second time. But on the second round, the Ministry of Health changed the selection criteria, requiring companies to submit a two-part proposal. The “technical” part of the bid would account for 70 percent of the bid, and the “financial” part of the bid would be 30 percent. “It appears this change was instituted in order to allow the Ministry of Health to award the re-bid to its favored company — the high bidder,” said Strauss. He was joined in his concern by a U.S. Interior Department official, who also questioned the Ministry’s procedure. The 70-30 split “is used primarily for building construction contracts and should not be used for the purchase of equipment,” said the Interior official, who added: “If the detailed specifications of the equipment being purchased are met by all of the vendors responding to the request for proposals, then the vendor with the lowest price should be selected as the winning bidder.” Because the hospital was planning to use U.S. Compact funding for the x-ray equipment purchase, the Interior official asked the Auditor General and the Attorney General “to conduct an investigation into possible bid improprieties” at the Ministry of Health. Nevertheless, Ministry officials again selected Genesis, though its offer was still over $120,000 more than MedPharm. The Ministry, however, asked Genesis to reduce its contract offer from $399,000 to $337,000. But Genesis, said Strauss, refused and the contract was still awarded. MedPharm’s January 2012 complaint seemed to work because in late March that year, MedPharm received an email from a Majuro Hospital official asking if its tender was still valid, to which MedPharm replied on the same day that it was. Several days later, Public Works Project Management Unit chief Reynaldo Sunga issued a “Notice of Award and Acceptance” of its bid to MedPharm. But two years on, the contract was never actually awarded, and the equipment has yet to be purchased by Majuro Hospital. In the meantime, Acting Attorney General Jorbon said recently he anticipates filing charges against close to 10 government workers who he says evidence shows accepted bribes from Genesis.
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Islands Business, May 2014
Politics
Palau
top level delegates from his country at the ASPA meeting said it was more reasonable to come through Fiji. “For us we think and would wonder why the airlines would not want their footprint in Micronesia but maybe it’s a financial issue for them.” Christian believed viability of the route would improve if cargo business is factored into the equation, and not passenger traffic only. He said the Palau resorts like the Palau Pacific Resort stand to benefit from better air connections to the island nation. Photo: Supplied FSM imports a lot of goods from China and countries in Southeast Asia. At the ASPA meeting, his delegation met representatives of Air Niugini and Our Airline. A better connection to Fiji for countries like the FSM was closed when Fiji suspended direct Tarawa to Nadi flights of Nauru’s Our Airline in 2011. Fijian authorities cited operational concerns like reservations, insurance and the airline’s air operating certificate for the suspension. This route would have provided an alternative doorway to the south for islanders in the northern Pacific. Currently Continental Airlines provides the only international air service connections to these By Robert Matau ing stops in Guam, Sydney then Cairns before arnorthern Pacific islands but the flight does a hop riving in Noumea - a trip that cost him US$4000. between a number of islands before it reaches O ne northern P acific state “This has long been a much needed route upon the FSM. has almost secured what has been the elimination of the Guam-Fiji route by ContiAt times, the flights are full and passena remote aviation dream shared nental Airlines. Since then, traveling to the South gers have to wait for the next flight out. by many of its small island neighbours - to get Pacific takes nearly 2 days of flight connections.” Senator Christian said they were interested in seto its larger South Pacific island neighbours Whilst Palau does not have its own airline, curing another airline in addition to Continental at as short a time and distance as possible. Continental Airlines, China Airlines, Delta, to address their travel connections to the rest of Palau is in Air Services Agreement (ASA) neand Asiana Airlines fly there. “The proposed the Pacific. “Continental is a single provider right gotiations with Papua New Guinea as it gears ASA (with PNG) has been sent back after now and whilst their service is fine, we want to up to host a number of important meetings this negotiations for some very minor detail adjustsee whether we can find other airlines as we have year including the Pacific Islands Forum Leadments and should be signed very soon,” he said. business in Fiji with the United Nations agencies ers’ Summit meeting that begins on 29 July. “No airline has been designated to provide this and the Secretariat of the Pacific Community ofOlkeriil Kazuo, Assistant Press Secretary in Pavital air link officially.” At last year’s Association fices.” He described as “reserved” the response lau’s Presidential office told Islands Business of South Pacific Airlines (ASPA) meeting, a highfrom the various airlines they had approached. he’s hopeful the agreement would be signed soon. powered delegation from the Federated States ASPA Secretary General George Faktaufon said The plan is for Palau-bound delegates to fly of Micronesia (FSM) was desperately seeking whilst he was not aware of the Palau and PNG from Port Moresby to Koror instead of doa better ASA with island nations in the South talks, it did not come as a surprise to him being the longer expensive hop to the north east Pacific in the hope that it would alleviate their cause such a route used to exist some years ago. transiting in either Japan, Guam or Hawaii. worsening air transport woes. “Such a connection for Palau and Micronesia Kazuo said Palau would also host several anniIt also takes an average FSM traveller almost would be shorter coming through Port Moresby versary celebrations this year, namely the 20th antwo days to fly out of the northern Pacific to than if it comes through Nadi,” he said. niversary of its Compact of Free Association with the southern Pacific, island hopping through He said he was also not aware of any progthe United States, its 20th anniversary of special to Honolulu to catch a flight to Nadi, Fiji. ress in bilateral air service discussions purrelationship with Japan and its 15th anniversary FSM member of Congress Senator Peter Christian sued between the FSM and Fiji last year. of good relations with Taiwan. said they had submitted an ASA to the Fijian Gov“Discussions with the airlines have not produced Kazuo who attended this year’s Pacific Islands ernment and Fiji has responded to their request. any new developments because the market is so News Association (PINA) meeting in Noumea “Now we will take this back to our government to thin, therefore there is that element of subsidy in February was successful in securing Palau’s prepare its response to our initial request,” he said. which is not very attractive to FSM so airlines bid to host the next PINA convention in 2016. “It is definitely something we will push to impleare reluctant to pursue further discussions.” To get to Noumea he had to fly for two days makment.” Christian accompanied by a number of
Palau seeks direct air links with PNG
Micronesia decries poor air connections
26 Islands Business, May 2014
Politics
samoa
Million dollar schools un-necessary says Samoa’s Opposition By Merita Huch
Samoa’s Parliament adjourns following the resignation of controversial Finance Minister. Photo: Merita Huch
Samoa’s finance minister resigns Ruling HRPP bows to growing pressure
By Merita Huch
After several months of debate, secret meetings and petitions, the decision came down to the Samoan Minister of Finance, Faumuina Tiatia Faaolatane Liuga for him to heed the calls to resign. In his two hour long response to the Chief Auditor’s report where he attempted to comment on all the accusations made against him including claims of reckless spending, Faumuina was clearly emotional, almost choking at times and expressed his apology to the country and to the Prime Minister, Tuilaepa Lupesoliai Sailele Malielegaoi. Twice when the Prime Minister was overseas reports of secret meetings by members of the governing Human Rights Protection Party (HRPP) were held and MPs signed a petition to get rid of him. The first petition in fact was made in August last year when reports of the US$254,000 office of the Minister surfaced. The Prime Minister then put the notion at an HRPP caucus and just two MPs called for his removal, insisting that the Finance Minister should leave his post. The rest however voted that Faumuina ought to continue. After that the Opposition Party Tautua Samoa took up the call for Faumuina’s resignation and pushed the issue continuously in its fortnightly media conferences. Then the change in the construction plan of the produce market at Fugalei only added fuel to the fire. The first plan which cost $635,539 was simply discarded while another plan and construction company were given the job. Next was the Lands Corporation report which showed discrepancy and more pressing, the approval for members of this corporation to own land at minimal cost. Next was the $85,000 vehicle for the Minister, this again resulted in another meeting and another petition and this time the Prime Minister was in New York at the opening of the Year for Small Island States. One
of the MPs for the HRPP Tuuu Anasii Leota announced that he and a handful of HRPP MPs were leaving the party and Tuuu himself was to lead a new party. This was denied however when the Prime Minister returned with Tuuu saying they were just joking at a media conference and the media was blamed for making a big issue out of nothing. The Speaker even made announcements banning media outlets from reporting about the besieged Finance Minister. Unfortunately for the Speaker, reports on the controversial government minister continued. The House Speaker furiously said he would take the media to task for what he labelled their “blatant disregard of his instructions.” Oblivious to the Speaker’s threats, the local media continued to report on the damning report of the Chief Auditor against Faumuina. Another HRPP meeting was held and another letter was apparently given to the Prime Minister including another petition, except this time it was alleged that there were 22 signatures from HRPP members including senior ministers demanding Faumuina’s immediate resignation. To topple HRPP, 23 MPs needed to cross the floor to join the Opposition Party but rumours of such plans were denied. Around this time the PM was taken to New Zealand for treatment over a “scratch” left untreated and almost cost him his life. Upon his return and with the resumption of Parliament – the Finance Minister’s resignation was announced. The Prime Minister himself accepted Faumuina’s resignation acknowledging his 14 years of service as Minister of Cabinet in different portfolios from Environment to Works and Infrastructure to Finance. He was also Samoa’s Minister for the 2007 South Pacific Games and he’s led many Samoan delegations to international conferences. Faumuina stays as Member of Parliament for Palaui le Falefa on the big island of Savaii.
Since the end of 2013, five primary school buildings have been opened, thanks to the help of the People’s Republic of China. These massive school buildings are equipped with computer and music rooms. They are built in the rural areas of three of the four inhabited islands of Samoa, two in Upolu, two in Savaii and one on the island of Manono. It’s one of the many examples of the “strengthened partnership” between Samoa and the People’s Republic of China. However, given the usually small sizes of the primary schools in the rural areas, the Opposition Party Tautua Samoa says these projects are too excessive and unnecessary. The average number of students in these schools is 100-200. The computer rooms are state of the art and they also have music rooms well equipped with musical instruments. It’s a phenomenal change from the leaky classrooms and it’s clear from the reaction of the children and teachers that this is truly a change unimagined. The Opposition Party however says the huge buildings and many of the equipment are a waste of money because there’s an average of about six teachers covering these classes and most don’t have computer skills and most of these computers will be damaged even before they’re put into any use. In many cases the primary school computer rooms collect dust and the only people using them are the teachers’ children. Shadow finance minister, Afualo Dr Wood Salele says if the $2.2 million was given to develop other areas within the villages, that makes more sense but to build these huge projects for small sized schools whose teachers don’t use the equipment defies logic. Meanwhile students at the National University of Samoa has to pay to access the university’s computer room. There simply isn’t enough computers to go around and their music department has just received its first guitar from a donation from New Zealand and the students and teachers there are asking around for more resources. “I know we’re prioritising education but this is not the way to go about it,” says Afualo Dr Wood. A professor at the University who set up the School of Commerce, Afualo says the government should be looking at improving teachers’ skills rather than building huge schools which are unnecessary for the population of students in these villages. The Prime Minister disagrees saying that the push by governments like China to improve Samoan children’s education will not be ignored and there are many changes now implemented to develop teachers and ensure the resources are put to use. Islands Business, May 2014 27
Business
Logging industry cleans up its act in Solomon Islands ‘Cowboy’ operators worry registered firms By Alfred Sasako In a world that’s becoming increasingly environmentally-friendly, logging is a dirty word. So much so that even commercial banks, conscious of the growing influence of the green economy, are refusing to have anything to do with loggers. That awareness has driven the logging industry in Solomon Islands to lift its game in addressing the issues that have given rise to the anti-logging lobby in recent years. Logging companies, for example, have established a body known as the Solomon Forest Association (SFA). Its mandate, among other things, is to work towards establishing a one-for-all, all-for-one guidelines to govern their activities in Solomon Islands. SFA has since produced a set of regulations and a code of practice for its members. “We want to ensure the logging industry which represents good corporate citizens is properly regulated,” a spokesman said. One of its core regulations stipulates that only members of SFA are allowed to engage in logging activities in Solomon Islands. The Association has also raised the stakes on membership. Good standing by SFA members in the community or communities is a prerequisite for membership. SFA believes good standing begins at home. “We believe in building a harmonious relationship with everyone – governments, communities and other stakeholders. That can only happen when the industry is regulated with a code of practice for everyone,” the spokesman said. Heavy penalties apply should these regulations are violated or ignored. For example, a company can lose its membership if it is found to have breached the regulation and code of practice. But for reasons known only to it, the government is yet to commit to the regulations, let alone endorse them. “SFA is still waiting on the government to endorse both the regulations and the code of practice we have proposed. It is important that the government endorses these regulations to give effect to its enforcement.“ Bad practices According to the spokesman, the absence of government endorsement has given rise to bad practices within the industry by non-SFA members over the years. The result as everyone knows is that SFA and its members have been unfairly criticised, one industry source said. Since its inception the SFA has 61 registered members. Without government backing of the regulations and code of practice, efforts by SFA to regulate the industry will remain open-ended and rogue operators would continue their bad 28 Islands Business, May 2014
practice, tarnishing SFA’s good image. “It is important that the government work with us in bringing everyone in the logging industry together to work under one code of practice. At the moment cowboy operators are exploiting the loophole that exists,” the spokesman said. As long as the industry remains divided, cowboy operators are certain to continue their bad practice, leaving the mess and an image problem for SFA to fix. Despite criticisms from within and without, logging companies contribute a significant amount of money to the national coffers annually. This comes in various forms of taxes and other statutory charges. In Solomon Islands, government revenue from logging operations, for example, account for up to 60 per cent of export receipts in any one year. According to published reports, the industry raked in more than US$44.8 million in annual taxes to the government. “That was five years ago. It is a whole lot more now,” the spokesman said. In terms of employment, the industry is probably the single largest employer with some 10,000 workers. There’s more from employment generated by spin-off benefits from logging activities throughout the nation. Logging is not new to or in Solomon Islands. The industry was first established by an Australian by the name of Eric Parry Monkton in 1909 – more than a century ago. He continued his milling business in Kokonai, Shortlands, until the onset of World War II in 1942. At the time, logs were shipped to Australia on board Burns Philip steamers every six weeks. Since then there’s been an explosion in the industry in terms of employment-creation, increases in government revenue and not to mention accusations of environmental damage. Accusations of environmental degradation came to a head last year when, Westpac, one of three commercial banks operating in Solomon Islands came under severe criticisms for accepting from loggers a $34,000 pre-shipment bond guarantee that loggers pay. To save its good name, Westpac was swift in responding to the greenie-led criticism. It immediately stopped accepting the refundable bond guarantee payment from loggers. The Central Bank of Solomon Islands now collects the payment on behalf of the government. Westpac did not stop there. In September of last year, Westpac put on notice logging companies that their accounts would be closed by last December. Those with loans were told to pay up by October. But the closure of accounts didn’t happen. The December deadline was extended by another three months. That deadline too had come
and gone, leaving the logging industry rather anxious, prompting SFA President Johnny Sy to appeal to the government to allow another bank to take care of industry needs. “Unless the government intervenes by establishing a new bank to handle all logging businesses, the threat will endanger not only the economy but the security of the country as well,” Sy was reported to have said in a recent newspaper interview. Two more bank licences As the March 31st deadline had passed, everyone is simply guessing as to whether there’s a further extension in the offing. “I don’t know whether there will be a (further) extension. If Westpac does not give a further extension it will affect the economy … because we cannot deal internationally (because) we don’t have any bank account. I think that’s the most important thing (and) that is the government has to act promptly to address,” Sy said. The government appeared to have heeded Sy’s call. Its regulatory body, the Central Bank of Solomon Islands (CBSI) last year granted an interim banking licence to a Sri Lankan consortium to set up the nation’s fourth commercial bank. Six months on, Pan Oceanic Bank is still trying to set up an office in Honiara. In a recent newspaper advertisement, the Bank said it would be open for business come May. Insiders said the new bank was still trying to raise sufficient capital to trade. Its biggest problem however is the fact that it has yet to establish a correspondence bank overseas. “You cannot operate if you don’t have one,” insiders said. In the meantime, another bank has applied for a business licence to open a commercial bank in Honiara. Pacific Alliance Bank Ltd’s (PAB) application was before the Central Bank of Solomon Islands after it had registered with the Foreign Investment Division of the Ministry of Commerce, Industries, Labour and Immigration last February. At the time of writing this article, the status of PAB’s application was unknown. Observers say the new applicant stands a good chance of approval, given recent comments by the Governor of CBSI, Denton Rarawa that the economy has the capacity to accommodate at least two more commercial banks. Whether such comments translate into tangible result is something that only the CBSI Board will answer. Inevitably, there will be a shortfall in government revenue from logging activities. Fisheries and mining have been identified as industries that would take the place of logging in terms of meeting revenue shortfall. To date, however, very little has been done to promote the industries. Many foreign investors have simply walked away in frustration. The government it seems is consumed with excessive spending on the consumption sector rather than in the productive sector. For now, what is paramount on the mind of the government is whether it has the capacity to absorb any revenue shortfall. By all counts it does not. As it is, all one can do is to hope that Prime Minister Gordon Darcy Lilo, known for his pro-logging stance, and his government have got the message.
Business
Australia’s new Regional Processing Centre in Nauru. Photo: Nauru Government Information Office
Banking woes continue to plague Nauru Uncertainties force banking downgrade By Robert Matau U ncertainties in initial assessments on Nauru Island were behind the Bendigo and Adelaide Bank’s decision not to establish full commercial operations or a community bank as planned. The bank had proposed to open a community bank on the island last year and sent a team to carry out due diligence and assess the situation on the ground. Bank senior media and communications manager Lauren Andrews told Islands Business from their Adelaide headquarters that they had carried out their assessment into establishing a community bank on the island this year. “Uncertainties have surfaced during the course of this work and at this point in time the Bank has decided not to proceed with establishing a Community Bank branch,” she said. “We remain committed to working with the community and helping them re-establish banking services in Nauru.” The bank will instead opt for a reduced agency service for the population of 10,000 where they can deposit, withdraw and maintain their accounts. Andrews said an agency could return banking services to the community, and in a shorter time frame than it takes to open a branch. “This could be a viable solution for Nauru, as it’s an alternative service we successfully offer in about 100 Australian communities which haven’t yet established a Community Bank branch.” However she also said it was still too early for the bank to comment on what banking services
an agency in Nauru might offer. There are more than 100 agencies operating in Australia, and they offer a range of banking services including: • New account opening • Deposits and withdrawals • Account maintenance Bendigo Bank was also not able to reveal any deadline on this proposal. As with past visits, the Bendigo Bank team will also offer an opportunity for the community to open accounts and it has received a total of 1400 applications and has processed 1200 new accounts for its Nauru customers, a Nauru Government statement revealed. However on Nauru itself, the recent deportation of Resident Magistrate Peter Law and the rejecting of Chief Justice Geoffrey Eames’ visa, both Australian nationals, were being blamed for the bank’s change of heart. Whilst Government is accusing the Opposition for the bad publicity surrounding the issue, the Opposition says the actual interference with the judiciary is the problem. Magistrate Law was deported by the Nauru Government claiming it had lost confidence in his ability to hear matters in a fair and impartial manner. They also went on to criticise him for his personal conduct as further justification for their actions. Opposition Leader Mathew Batsiua said the bankers came to Nauru to conduct their due diligence before setting up a new operation. “When you look at what happened in the judiciary it will affect dealings the bank has which are
legal and involves money,” he said. “Confidence in any economy rests a lot on the judiciary and its independence and ability to exercise its duties without fear or prejudice. “I am afraid that no right minded banker or potential investor would be confident under the circumstances involving the two senior judicial members.” Batsiua said claims by Nauru’s Finance Minister, David Adeang that members of the Opposition have caused Bendigo Bank to reconsider a decision to establish a bank on Nauru were “laughable”. He said the claims were a desperate attempt to divert attention away from the present government’s own miserable failings in managing the financial and legal affairs of the country. “It’s no coincidence that Adeang holds both the Finance and Justice portfolios, both of which are in shambles as a result of the minister’s incompetence to manage either of them. “It’s hardly surprising that Bendigo Bank has seen fit to reconsider its commitment to Nauru when the current Minister has robbed our country of the basic rule of law in the justice system, blatantly interfered in the independence of the courts, unlawfully deported the former Resident Magistrate, prevented the former Chief Justice from performing his duties, deporting and disregarding the constitutional rights of residents the Minister simply doesn’t like.” Batsiua said it was a sad indictment on the Pacific country where an established and respected banking organisation had been convinced to abandon its plans for Nauru. “It is absurd of the Minister to think that the environment he has created in Nauru would have zero impact on the decisions of reputable offshore businesses like the Bendigo Bank, which was seriously contemplating coming to Nauru,” Batsiua said. He said any suggestion Opposition comments in international media had influenced the Bendigo Bank decision was a desperate attempt to divert blame away from its own actions and the Minister was clearly losing any sense of reality if he believed otherwise. Batsiua said that Minister Adeang must own up to the mistakes he had made and must stop shifting the blame elsewhere. “If offshore companies fear coming to Nauru, it is because of the policies and attitudes of this government led by Minister Adeang. “They are seriously doing damage to the reputation of Nauru and it must stop. “We therefore call on President Waqa again to dismiss the Minister in order to salvage the wreck and restore the reputation and credibility of Nauru.” Islands Business, May 2014 29
Business
‘China’s trade with the Pacific has jumped seven-fold.’ Signing an agreement with a Chinese envoy in the picture is Fiji’s Prime Minister, Frank Bainimarama. Photo: Ministry of Information - Fiji
Chinese yuan, PNG kina open new market of riches It’s become the Pacific’s 2nd largest donor By Davendra Sharma A new wave of splurge spending by Chinese in the Pacific and Papua New Guinea’s incredible leap into high economic drive with a mid-year opening of LNG project will open roads to a phenomenal growth in Asia/Pacific in the very near future, the region’s leading bank, Australia & New Zealand Banking group has forecast. A series of ripple effects of recent Chinese investments in the Pacific region through development aid handouts, trade and tourism reverberates right through the greater Oceania region, as well as Australia and New Zealand. As China’s middle-class becomes richer, more and more tourists from the world’s second largest economy are unravelling out and searching for new tourist spots around the globe. While data from the Pacific islands are sketchy, Australia alone noted 750,000 arrivals from China – with an increasing number undertaking multi-destination trips in the past 12 months, up 25 per cent from the previous year. “A lot of this trade flows through to income and employment growth for businesses and increased tax revenues into government coffers,” declared economic analyst David Koch last month. China’s affluence stems from the unprecedented rise in the country’s economy with a 7.5 per cent growth in that country’s Gross Domestic Product in the last five years. The outpouring of Chinese money in the region over the last five years spared off a recession despite the economies of the west enduring such a drastic downturn. “As we saw in the US, and 30 Islands Business, May 2014
then Europe, the financial capacity of businesses and governments to weather financial shocks are the key to stable employment and asset expansion and income growth,” declared Koch. “That’s exactly what China gives us – economic stability and continued growth.” In the past decade and particularly since 2009 – when recession engulfed major economies in the west – China has leapfrogged the US, Japan, EU and New Zealand into becoming the second larger donor to the Pacific Islands, behind Australia. China’s economic rise has come at the expense of Europe’s decline since 2009 as their currency’s role on the world stage has grown since the first yuan trade on international markets. Last December, the yuan overtook the euro to become the second most-used currency in globe trade finance after the US, according to global bank payments provider, SWIFT. “We’re saying it’s the biggest change in capital markets in our lifetime,” said Hayden Briscoe, director of Asia-Pacific fixed income at fund manager, Alliance-Bernstein. “With this internationalisation, China’s going from being the world’s manufacturer to the world’s banker.” He said while the Japanese yen and Korean won have also risen with the expansion of trade by those countries in the Asia-Pacific region over the last decade, none have shown as much potential as China. “There’s a reason to deal with China because they are so big.” For the region, China now hands out nearly US$1 billion in development aid and soft loans – some of which are eventually written off by Bei-
jing if unpaid within a certain period of time. “A number of countries may be able to take that up, Papua New Guinea and in particular Fiji,” says Jenny Hayward Jones, director of the Melanesia programme at the respected Lowy Institute for International Policy in Sydney. “It’s an increase that will probably make it a significant donor, generous and certainly popular in the Pacific,” she said, adding that China’s aid instigate competition among donors. To date Australia is by far the biggest aid donor to the Pacific islands by a huge margin, disbursing in excess of US$927 million in the last financial year alone, representing 60 per cent of total aid poured in the region. Chinese Vice Premier of State Wang Yang told Pacific Island leaders at their last meeting in Guangzhou that China was a reliable and a sincere friend. Apart from commitment to aid for agriculture and forestry and support for environmental protection, disaster relief and green energy, China pledged to remove tariffs on 95 per cent of commodities from smaller countries in the Pacific Islands in the likes of Tonga, Samoa and the Cook Islands. These three Polynesian countries have also over the years increased their reliance on aid, soft loans, investment and trade with Beijing. They are also likely recipients of new 2000 Chinese study scholarships being promised to the region, along with Fiji and PNG. China has said it will assist island countries with targeted marketing strategies to access Chinese buyers to allow for better passage of goods into their large 1.2 billion consumer market. China’s bilateral trade with the region has jumped seven-fold over the last decade to $2 billion. “Certainly the emerging giant’s growing presence in the region has captured the public imagination,” says Jones. An ANZ report released last month, Caged Tiger: The Transformation of the Asian Financial System, predicts that China is leading a charge by at least 10 economies from that region along with that of PNG and Fiji into making the Asia-Pacific region the most vibrant in the next 15 years or so. “This is a tectonic shift in the global economic landscape,” ANZ chief economist Warren Hogan said in his report. By 2017, ANZ itself expects to earn 30 per of its earnings from the Asia-Pacific from its outlets in such places as China, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam as well as from the 12 island countries - Fiji, French Polynesia, PNG, Cook Islands, Guam, Kiribati, Samoa, Solomon Islands, Tonga and Tuvalu. The bank – considered third largest in the Pacific Islands Forum region encompassing Australia, New Zealand and the island countries – predict that by 2030, China’s financial system will be twice as big as the US. It also foresees that the Chinese yuan will replace the US dollar as the regional currency and predicts that the Chinese banking system will overtake the size of US in the next five years or so. “An Asian century now requires a profound transformation of the Asian financial system,” ANZ said in the report. It said a move away from state-owned-enterprises in countries like China and the Pacific Islands region will lead to greater liberalisation and deregulation in economies.
Fishery
Tokelau conference on rogue fishing
Experts to review strategy on MCS, IUU sue for Pacific nations keen to ensure effective Officials for the Pacific’s leading forum scientific data coverage for sound conservation for high-level fisheries dialogue, the Forum management and the best economic gains from Fisheries Committee head to Tokelau this the offshore fishing month for an in-depth and onshore processing look at current and sector, says the FFA. As future developments part of ensuring memin the sector. The 89th bers are able to share meeting of the annual progress and build on FFA governing council common ground, the of officials have a full Agency’s Conference agenda, including key Centre hosted a record outcomes from a reseries of back-to-back cent regional meeting meetings including on Monitoring Conthe 17th session of the trol and Surveillance, MCS working group or MC S, aimed at on 24-29 March. The stopping rogue fishing outcomes are part of in the region. this month’s FFC and Effectively using will feed into the July and pooling national ministers’ meeting as resources to fight Illegal, Unreported and Watching out for rogue fishers: NZ, US and France naval Pacific nations juggle Unregulated (IUU) surveillance reps at the recent MCS-WG meeting in Honiara. their national priorities for offshore fisheries fishing is a major is- Photo: FFAmedia
against a backdrop of regional commitments and agreements. “Offshore fisheries and the impacts on national economies and development is a fast-changing and complex field, and calls for management that is dynamic and well resourced,” says FFA Director-General James Movick. “For developing Pacific nations, especially small island nations such as Tokelau, the benefits of a regional approach to prevent, detect and eliminate IUU fishing in our region are clear.” “The outcomes of the MCS Working Group will help to guide and inform decisions of the 89th Forum Fisheries Committee – and the Ministerial meeting in July--when it comes to keeping on top of monitoring, control and surveillance work in our large-ocean states.” Formed by member countries, the FFA MCS Working Group strengthens and expands the effectiveness of monitoring, control, surveillance and enforcement capabilities across the region. It also monitors the implementation of the regional MCS strategy. Simultaneously with the MCS-WG meeting, in another part of the conference facility representatives of the disciplined forces that support the Pacific Islands in their regional fisheries surveillance activities, the Quadrilateral Defence Forces (Australia, New Zealand, France and the US), or QUADS, also met to discuss their support operations for the FFA and its member countries. Hosting the two meetings in the same venue presented valuable opportunities for fisheries and surveillance officials to discuss regional and national aerial and surface surveillance support. - Contributed.
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Interview
Senator Brett Mason
Photo: Office of Senator Brett Mason
Australian Parliamentary Secretary to the Minister for Foreign Affairs firms up relations with Fiji
By Samisoni Pareti
After her first meeting with Fiji’s leader Frank Bainimarama in Suva in February, Australia’s Foreign Minister Julie Bishop is following up on what she had described as a very warm and engaging meeting by sending her Assistant Minister this month. Australia’s Parliamentary Secretary to the Minister for Foreign Affairs Senator Brett Mason says he will meet Bainimarama’s Foreign Minister while in Suva, as well as Fiji’s Electoral Commissioners. In Q&A, Senator Mason spoke about his government’s commitment to restoring relations between the two countries after seven years of non-engagement since the 2006 coup. Q&A also asked Senator Mason about his government’s position on Fiji’s participation in the PACER Plus negotiations, the much talked about Pacific Seasonal Workers’ Scheme, its controversial Pacific Solution, the new Colombo Plan and this year’s Pacific Islands Forum Summit in Palau in late July. What’s the message that you bring Mr Bainimarama from your Prime Minister Tony Abbott? The message is that the Australian Government is committed to normalising relations with Fiji and developing stronger ties ahead of the Fiji elections in September this year. This is the message that Foreign Minister Julie Bishop brought with her in February and which my visit will build upon. In particular the lifting of travel sanctions on 31 March has helped lay the framework for closer cooperation with Fiji on bilateral and regional issues and I look forward 32 Islands Business, May 2014
to discussing these during my visit. What you hope this visit to Fiji will achieve? My visit will focus on a range of bilateral and regional issues, including elections preparations and development cooperation. I will be meeting with Foreign Minister Kubuabola and the Fiji Election Commissioners to hear how elections preparations are progressing. Australia is working with the Fiji authorities and other donors to assist Fiji with its elections preparations. To date, we have: •provided experienced election officials to
advise the Fiji Elections Office and also to fill the important positions of Deputy Supervisor of Elections and Director of Operations; •funded two senior Fiji elections officials to participate in an Australian Electoral Commission programme to see how the 2013 Australian federal elections were run; •and provided US$2.5 million to support Fiji’s electoral processes in 2012-13, including electronic voter registration. During my visit I will also be visiting a number of regional development projects supported by the Australian aid programme. This will include the launch of the Australia - University of the South Pacific (USP) Partnership. The $45 million in funding over three years we will provide recognises the USP’s importance to growth and development in the region. I will also sign the Government of Australia-Pacific Islands Forum Secretariat (PIFS) Partnership. The six year $20.03 million partnership sets out how Australia and the PIFS will work together to address major regional development issues. Australia is Fiji’s largest bilateral aid donor, with programmes to improve access to education, strengthen primary health services, build economic opportunities and support Fiji’s transition to democracy. During my visit I will visit the Sigatoka Hospital. The Australian Government recently funded a $185,000 renovation at the Hospital, to improve health care standards for the 53,000 people of the Nadroga/Navosa Sub-Division.
I will also join in the launch of the Markets for Change programme at Suva Markets. This programme, for which Australia is providing $4.3 million, will make ten markets across Fiji safer and more productive. This will particularly help the Fiji women who run most of the market stalls. The programme also extends to the Solomon Islands and Vanuatu. When do you think your country and Fiji can exchange High Commissioners? Fiji agreed in December 2012 to Ms Margaret Twomey’s appointment as High Commissioner, but has since asked that she delay taking up her position. In the meantime, Australia has an Acting High Commissioner operating very effectively in Suva. What is your Government’s position on Fiji’s full participation in PACER Plus negotiations and in Palau’s Pacific Islands Forum Summit in July? Australia supports Fiji being invited to parA ticipate fully in PACER Plus negotiations and Forum Trade Ministers’ meetings and we look forward to Fiji’s participation in the Pacific Islands Forum Leaders Meetings following its return to democracy after elections in September. What about Fijian participation in your W Pacific Seasonal Workers’ Scheme, when can this happen? We will look to include Fiji in any future expansion of the Pacific Seasonal Workers Programme. On your government’s $93 million New Colombo Plan on education of Australian un-
We’ve Got it!
dergraduates, is Fiji and other PICs included in this plan? The New Colombo Plan is currently in a pilot phase, in which Indonesia, Japan, Singapore and Hong Kong are participating. We plan to invite other regional partners, including Fiji and some other Pacific Island Countries, to participate in the New Colombo Plan from 2015. On your government’s Pacific Solution, how many countries in the Pacific have been approached to participate? While this is a matter for the Minister for Immigration and Border Protection, I can confirm that the Australian Government is focused on implementing arrangements for offshore processing with Papua New Guinea and Nauru, and these arrangements are proceeding well. Australia regularly discusses people smuggling and other important issues with our partners in the Pacific, including through the Bali Process. A number of Pacific Island countries are members of the Bali Process. With the merger of AusAID into the Department of Foreign Affairs & Trade, how many Pacific employees of AusAID are likely to lose their jobs either through voluntary or compulsory redundancies? Locally engaged staff in the Pacific, as in other regions, have been provided an opportunity to express an interest in receiving a voluntary redundancy. Applications for voluntary redundancies are currently being reviewed. There is no target for voluntary redundancy numbers. No involuntary redundancy process is being
implemented. With Pacific aid from Australia being cut this year from I believe $875m down to $818m, affecting multilateral and bilateral aid programmes on humanitarian and disaster response and global environment programmes in Solomon Islands, Vanuatu, Samoa, Tonga and Kiribati, has your visits around the Pacific so far indicated that such a reduction in aid assistance was justified? The Pacific is a priority for Australia and the Australian aid programme – in fact, this Government is re-calibrating our aid programme to focus more on our region. Prior to the election last September, the Australian Government stated its policy of saving $4.17 billion from the aid programe over the forward estimates, and also implementing a system of performance benchmarks. I believe there is recognition in the region that the new country programme allocations Ms Bishop announced on 18 January 2014 give the Pacific its proper weight in the aid programme. These new allocations will provide a stable basis for our partner governments in the region to plan for the future. Australia still responds generously as a donor to humanitarian emergencies in our region and across the world – as seen by our recent commitment of $3 million to Solomon Islands in the wake of its recent devastating floods. We need to ensure that we invest our aid money in programmes that are innovative, will make a difference and are a good return on our investment.
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Islands Business, May 2014
Viewpoint
Energy poverty and access to electricity in the Pacific By Matthew Dornan*
existing electricity network (or “grid”), measure in the hundreds of millions of dollars. These tax concessions and contingent liabilities benefit households that already have an electricity supply, not households without access to electricity. The very ambitious renewable energy targets of Pacific island countries, I argue, are a concern in this respect. Governments, in order to meet these targets, will require substantial investment in renewable technologies. But the bulk of this investment will be in areas where there is already access to electricity – rural electrification has only a very minor impact on enabling countries to meet renewable energy targets, given low levels of power consumption in rural areas. There is, therefore, the potential for renewable energy
Energy poverty is widespread in the Pacific. It is estimated that 70 per cent of households in the region don’t have access to electricity and 85 per cent don’t have access to clean cooking energy technology. These access rates are low by both international and regional standards, being equivalent to those in sub-Saharan Africa and slightly below the average for low income countries. This is despite higher income levels in much of the Pacific. Energy poverty, or the lack of access to modern energy services, is a concern given its development impacts. Limited access to electricity is a barrier to economic activity and the delivery of key public services, including health, education and infrastructure services. At the household level, un-electrified households have been shown to spend more on energy than do households with access to electricity. This is because un-electrified households are forced to spend money on fuels for lighting, such as kerosene, which are more expensive than the use of electricity for lighting. The situation does not appear to be improving. There has been limited progress in widening access to electricity in rural areas of the Pacific – which is where the vast majority of un-electrified households are situated. Access to electricity and GDP per capita This is particularly true in Papua New Guinea targets to divert attention and funding away from (PNG), Solomon Islands and Vanuatu, where rural electrification. electrification rates are lowest, being below what There are already indications that this is would be expected given per capita income levels. occurring. A list of energy sector projects was There are a number of reasons why access to presented by Pacific island governments at the electricity in rural areas is so low in the region. Pacific Energy Summit in March 2013. Although One relates to spending on rural electrification. not comprehensive, it provides insights into the The high upfront cost associated with rural elecpriorities of governments. Projects that expand trification means that subsidisation is generally access to modern energy services (including required (this is subsidisation for the upfront cost electricity) accounted for just 4 per cent of the of establishing an electricity supply, not ongoing total value of projects on the list. supply costs which can be met through user fees). The reasons for limited progress in widening But government resources that are dedicated to access to electricity are broader, of course. One rural electrification in the Pacific are limited. important factor is the way in which existing In Solomon Islands for example where it is subsidies – both explicit and hidden – are spent. estimated that just 12 per cent of the population The bulk of subsidies are currently directed has access to electricity, the rural electrification toward maintaining low residential electricity in 2012 totalled just US$1.34 million (and this prices – primarily for urban electricity grids. represented an increase on previous years). In Fiji, These subsidies can take the form of funding rural electrification spending is less than US$10 support for power utilities, tax breaks and loan million, while tax concessions and contingent guarantees. What this means is that subsidies liabilities associated with investments in the 34 Islands Business, May 2014
are directed toward maintaining low prices for households that already have access to electricity, not for widening access to electricity. A related issue is the common practice of cross-subsidisation through a uniform electricity price (or tariff). Cross-subsidisation has the effect of limiting the extension of electricity grids into rural areas, as the cost for the power utility of supplying a rural household may exceed the uniform electricity tariff. This means that the electricity utility has no commercial incentive to extend the electricity grid – even where upfront costs are subsidised by government. Incentive problems are not only the result of cross-subsidisation. An article in the March 2013 ADB Pacific Economic Monitor suggests that there are six Pacific power utilities that make a loss on every unit of power that they sell. Regulatory reform by Pacific Island governments is required to address such issues. But what about rural electrification in areas where the electricity grid will never extend? The geography and population distribution of countries like PNG, Solomon Islands, Vanuatu, FSM and Kiribati makes crucial the installation of isolated, offgrid systems like villagebased diesel generators or solar home systems. Yet again, subsidies directed toward electricity consumption in urban areas far outstrip government funding for installation of such systems. These priorities should be reversed. Increased funding needs to be directed towards rural electrification using offgrid systems, and at the same time, universal subsidies for power consumption among (primarily) urban households should be abolished and replaced by lifeline tariffs that protect low income households. Institutional arrangements that facilitate the maintenance of off-grid systems are also important. Establishing such arrangements has historically been a challenge in the region. Innovative programmes in other parts of the world, like the establishment of concessions where a private company or large-scale community cooperative manages off-grid systems, have achieved considerable success. It is time the use of such approaches was explored in the Pacific. •Matthew Dornan is a Research Fellow in the Development Policy Centre at the Australian National University. This article is based on a peer-reviewed journal article published in Renewable and Sustainable Energy Reviews.
Environment
SPREP with David Sheppard
S
ince its establishment the Secretariat of the Pacific Regional Environment Programme (SPREP) has worked to raise awareness on environment issues across the region and help empower others to do the same. Through our monthly message in the Islands Business magazine, we have been able to raise awareness in one sweep across the vast area of the Pacific. This has always had the support of the late Ms. Laisa Taga, Group Editor in Chief for Islands Business International, who passed away in April. We at SPREP would like to extend our condolences to the family, friends and colleagues of Ms. Taga, an exceptional and dedicated Journalist and Editor, who worked with SPREP to help raise awareness and share environment information. This column about protecting our biodiversity is dedicated to Ms. Taga. Her legacy to nature conservation lives on through our columns. May she Rest in Peace. May 22 - the International Day of Biodiversity - provides an opportunity to pay special tribute to our unique Pacific biodiversity. Biodiversity refers to all the different plants, animals and people that form our living world. Indeed, it is essentially a synonym of ‘Life on Earth.’ This year’s international theme is “Island Biodiversity,” a celebration of our island biodiversity, critically relevant for all of us in the Pacific. The Pacific Islands region covers 32 million square kilometres and is one of the most biologically rich regions on Earth. Incredibly diverse ecosystems occur on and around the 30,000 islands that make up the region’s two per cent of land. The huge expanse of ocean supports the most extensive and diverse coral reefs in the world, the largest tuna fishery, the deepest oceanic trenches and the healthiest and in some cases, largest remaining populations of many globally rare and threatened and migratory species including whales, sea turtles, and dugongs. The Pacific is home to a high proportion of endemic plant and animal species. However, Pacific Island biodiversity is under intense pressure from natural and human-induced disturbance, alien species introductions, population growth and other factors, and its indigenous plants and animals are among the most highly threatened in the world. Further, the small size and isolated nature of our islands makes them extremely vulnerable to these threats. Many of these endemic and threatened species are of material resource or spiritual/ cultural significance to Pacific people. Many conservation actions have been undertaken throughout our region. In December 2013, a new regional framework for nature conservation and protected areas 2014-2020 was adopted at the 9th Pacific Islands Conference for Nature Conservation and Protected Areas held in Suva, Fiji. This landmark agreement will guide conservation work in the
Island Biodiversity and local communities to implement ecosystem-based adaptation activities that will help to retain and enhance ecosystem services for people of these islands. Pa c i f i c I s l a n d nations have made some very bold commitments to the protection of their island biodiversity even though they are faced with intense challenges because of their isolation and vulnerability and other factors such as limited financial and human resource capacity. Leaders at the High Level Session of the 9th Pacific Islands Conference on Nature Conservation and Protected Areas committed themselves to 10 Key Actions to support nature conservation in the Pacific. These 10 key actions recognise the critical Aisake Batibasaga, Principal Fisheries Officer, Fiji and a young turtle supporter at the role island biodiversity and ecosystems release of the satellite tagged green turtle in Fiji, December, 2013. provide in sustaining livelihoods of islands of the Pacific Pacific. The framework is closely aligned to the as well as the enormous contribution that our 2020 global biodiversity targets adopted by 193 marine resources provide to the rest of the world. countries at the 2010 Convention on Biological This year’s focus on “Island Biodiversity” coDiversity, and to National Biodiversity Strategies incides with the United Nations “International and Action Plans in Pacific countries. Year on Small Island Developing States.” SPREP, through the Pacific Islands Roundtable Additionally, the third International Conferfor Nature Conservation, will be working closely ence for Small Island Developing States will be with key partners to implement the new regional held in Samoa in September which provides an framework and to support national action to excellent platform to showcase notable conserprotect and manage biodiversity. vation successes and accomplishments achieved This year, SPREP will be launching a two year at all levels in the Pacific for the world to see, as campaign to promote the important role biodiwell as recognising the critical ecological issues versity plays in building resilience to a number the region must deal with. of threats, including impacts of climate change. As we celebrate Island Biodiversity this year, it This campaign will celebrate and promote the is important to also pay tribute to our ancestors role ecosystems, including mangroves and and all that have made significant contributions forests, play in providing protection against sea to ensure our island biodiversities are maintained level rise, extreme events such as storm surges, and conserved. and protection of key ecosystem services such as Let us make sure that we leave behind a water supply and control of flooding. legacy for our children and future generations In Choiseul, Solomon Islands for example, to continue to enjoy living in a healthy island SPREP is working closely with key partners biodiversity. Islands Business, May 2014 35
Business Intelligence
We need to seal PACER Plus By Samisoni Pareti
T
he heat is on for Forum member countries in the Pacific to wrap up negotiations and finalise their Pacific Agreement on Closer Economic Relations with Australia and New Zealand, now referred to with the acronym PACER Plus by the end of the year. Chief Trade Adviser to the Pacific Island Countries Dr Edwin Kessie is hopeful the December 2014 deadline could be met. “I am hopeful that we can meet the deadline if all the parties exercise flexibility and always keep in view the raison d’etre of PACER Plus,” said Dr Kessie. “We have made good progress in the intersessional meetings and if we keep on working harder, we should be able to conclude the negotiations as soon as possible. There is the realisation among the parties that the longer it takes to conclude PACER Plus negotiations, the fewer the benefits of the Agreement will be.” The most recent negotiations between PICs and their two larger neighbours was held in Port Vila early last month. As in previous negotiations, thorny issues continued to be the development assistance component of PACER Plus and labour mobility. Although remaining optimistic, Dr Kessie who leads the Office of the Chief Trade Advisor in Port Vila says Australia and New Zealand need to exercise more flexibility if progress is to be made. “The Forum Island Countries have made it patently clear to Australia and New Zealand in the negotiations that they expect them to undertake substantive commitments on labour mobility and development assistance. I believe that this message has been heard and it is my expectation that Australia and New Zealand would respond accordingly. In that regard, I should mention that New Zealand has tabled compromise proposals on these two overarching issues which the parties are currently considering. It would be a missed opportunity for the Pacific region if the parties are not able to conclude the negotiations because of these two issues. Flexibility is needed on all sides and I hope that the negotiators will live up to the challenge of coming up with a forward looking agreement that would provide a platform for the Forum Island Countries to achieve economic growth and sustainable development.” He hopes a breakthrough could be made in the next round of negotiations scheduled for the second week of June in Adelaide. Dr Kessie says the PICs are also hopeful that Fiji will be joining the negotiations. “I think all the PACER Plus parties are eager to have Fiji participating in the negotiations as soon as practicable. Fiji is an important country in the Pacific and its participation in the negotiations would further the objective of enhancing regional economic cooperation in the region. Following the statement by the Ministerial Contact Group, I hope that Fiji would soon join the PACER Plus negotiations.”
36 Islands Business, May 2014
New hope for Pacific migra By Davendra Sharma
O
n one hand it is cautioning recipient countries in the Pacific to be wary of aid cuts from this year and on the other, the Abbott government is offering an olive branch to semi-skilled workers from around the region to have a stint in Australia’s burgeoning hospitality sector. Faced with an acute shortage of around 56,000 workers in the period 2014-2015, Austrade – Australia’s leading government economic agency – has urged Canberra to allow employers to hire foreign staff with a reasonable command of English, like those from the islands region, to fill a domestic drought of hospitality workers in the country. As Australian inbound tourism reaches new heights with increased arrivals of up to 750,000 Chinese travellers every year combined with influx of affluent Japanese and South Koreans, the country’s federal government is faced with a sudden upsurge in demand for sub-skilled and seasonal workers in the hospitality sector. The department responsible for tourism has backed industry demands to “increase the flexibility” of what Australia calls 457 work visas, under which workers from foreign countries with a reasonable command of English are allowed access into Australia for long-term employment. Last month in Australia as calls by industry employers gained momentum, Austrade noted that there were employers who would be willing to pay
higher wages – compared to amounts paid to local Australian nationals - to suitable employees from outside countries. “Providing more flexible arrangements to access overseas labour to address shortages will help to provide a stronger tourism workforce that will help the Australian tourism industry become more competitive, encourage greater investment, and support regional development,” Austrade told the country’s Productivity Commission. It said that backpackers made only seven per cent of Australia’s tourism workforce but that could change if the federal government eased off employment and travel visa restrictions. Employers from around the country’s main tourist cities like Sydney, Melbourne, Gold Coast and Brisbane have joined in demands by government agencies for easier visa conditions for foreign workers. “It was extremely hard and extremely expensive, and you need a good solicitor to do the paperwork,” said Gabriella Fedeli, owner of 11 Baretto restaurant chain in Sydney. She said businesses in Australia were unable to expand their operations because of a shortage of qualified workers around. At first the government of Prime Minister Tony Abbott asserted that under visa category 457, employers could only recruit from overseas if they could prove that local talent was unavailable. Assistant Minister for Immigation, Michelia Cash told Australian media through a spokeswom-
Pacific exporters pick up branding, supp Dev Nadkarni
T
he importance of branding, cost-effective packaging, dealing with logistics and effective supply chain management were topics discussed at a workshop for exporters from Fiji and the Pacific last month. More than 80 businesses attended the event. The two-and-a-half day Pacific Path to Market workshop addressed market compliance constraints and highlighted specific solutions to enhance exporters’ capacity. The workshop was designed as an export capability building initiative to help export ready and export capable businesses enter new markets. The workshop’s content combined the range of export facilitation services provided by the Pacific Islands Forum Secretariat’s trade and investment office, Pacific Islands Trade & Invest, with a wide spectrum of expertise from relevant businesses and organisations. Pacific Islands Trade & Invest brought industry experts and international speakers from China and New Zealand to give a firsthand account of doing business in these markets. Among the speakers were branding, logistics, supply chain and packaging experts besides direct importers from China and New Zealand. More than 50 one-on-one meetings were held between the participants, the international speakers, the trade commission’s staff and Pacific Islands Forum officials. As a result, participants were able
Participants at the Pacific Path to Market workshop at the Confer
to establish contacts with potential buyers and suppliers for their products during the event. Speaking at the workshop, Pacific Islands Forum Secretary General Neroni Tuiloma Slade said island countries needed to strategise well and tap into fast growing markets. “The growth potential of the Asian market provides the region promising and lucrative opportunities,” he said. Shiu Raj, the secretariat’s Director of Economic
nts an the government “requires a level of ability in open the doors to a huge number of Pacific Islandgranted work visas to work in Australian agriculEnglish language necessary for the applicant to perers seeking employment in Australia in the counture farms. The migrant workers were allowed in form effectively in their nominated occupation.” try’s pubs, restaurants and related sectors in the Australia to address labour shortages on AustraBut Austrade is urging the Productivity Commistourism sector. The initiative will complement the lian horticulture. sion that the country’s demand for skilled workers success of the Seasonal Pilot Scheme for Pacific IsInitially the scheme ignited opposition and in the tourism industry was far being outstripped landers, started under the previous Labour Governangry reaction from unions as they argued that by availability. the migrants were stealing jobs from It said that often local nationals in locals but the government argued that the hospitality sector were reluctant up to US$649 million worth of fresh to relocate to regional areas due to produce was left to rot on the farms insecure nature of work, undesirable every year due to labour shortages. hours and housing shortages – facUnder strict guidelines for the pitors which would not deter migrant lot scheme, the government has enworkers if they were allowed to enter sured that “there is no exploitation of Australia on flexible visa conditions. Pacific workers and no undercutting “International workers, on the othof Australian working standards.” er hand, offer greater flexibility for the The scheme worked two-fold: cretourism industry and are more likely ating benefits for both Australian to move to regions to source work,” farmers in filling labour vacuum and it said. a source of remittances to Pacific IsWorkers from the Pacific Islands land economies. “Pacific islanders region would be preferred choice for will benefit from income, experience Australian businesses as there has and training received through the pibeen a huge oversupply of such qualilot scheme,” the government noted. fied and trained hospitality workers, This Victorian peach orchard was one of two sites for the Pacific Island guest worker “The remittances sent home will siggraduating from a growing number scheme. Photo: The Australian nificantly help the development of of tertiary institutions in places like their villages and communities.” Suva, Apia and Port Vila. Pacific IsWhile there have been several esland workers often come with a good command of ment in Canberra. timates of remittances being sent to the Pacific spoken English, serving as an added incentive for Over the last five-six years, up to 2,500 semiislands from developing countries like Australia, employers in Australia. skilled workers from such island nations as Kiribati, it has been proven that around US$500 million If employers win over the government, it will Papua New Guinea, Tonga and Vanuatu have been makes it way to the shores of Oceania.
Inaugural Pacific business survey launched
ly chain skills
E
ence Room of the Pacific Islands Forum Secretariat in Suva. Photo: Supplied
Governance said the workshop fostered a better understanding of how products could fetch the best value in terms of branding, quality and competition. Joe Fuavao, the Trade Commission’s Auckland based Knowledge & Research Manager said that there were expressions of interests from as many as five Pacific Island countries to hold similar workshops. It is expected that the Pacific Path to Market
workshop will also be held in other Forum Island Countries later in the year. Representatives from some of the Pacific Islands attended as observers at this workshop. The workshop was funded through assistance from the European Union, under the Pacific Integration Technical Assistance Project (PITAP) implemented by the Pacific Islands Trade & Invest network.
xporters of goods and services from the Pacific Islands were invited last month to share their views on business confidence, the investment climate and export trends. The Australian Department of Foreign Affairs and Trade in collaboration with Pacific Islands Trade & Invest, the trade and investment arm of the Pacific Islands Forum Secretariat, conducted this first ever export survey of its kind in the region. Service based businesses make up a significant proportion of regional exports. Tourism operators, accommodation providers, the legal and financial sector, as well as training and education providers were all encouraged to participate in the online survey, alongside the better known exporters of goods and manufactured products. The objective of the research was to provide a greater understanding of the diversity of industry in the region; the size, shape, as well as opportunities and challenges – particularly with regard to international trade. The survey also essayed to examine the future outlook and highlight changes in overseas demand. Such a study has never been conducted in the region and is expected to provide a much-needed assessment of the region’s important and productive export sectors. The results of the survey, which has since concluded, will be confidential and will only be shared in aggregate. They will be analysed and the executive summary will be available to all participants and circulated widely. Islands Business, May 2014 37
TRADE MARK CAUTIONARY NOTICE IN MICRONESIA Notice is hereby given that Nissan Jidosha Kabushiki Kaisha (also trading as Nissan Motor Co., Ltd.), a Japanese corporation of No. 2 Takaracho, Kanagawa-ku, Yokohama-shi, Kanagawaken, Japan, is the sole proprietor in Micronesia and elsewhere of the following trade mark:
Used in respect of:Class 9 Measuring apparatus and instruments; counters; time recording apparatus; power distribution or control machines and apparatus; electricity distribution boxes; rotary converters; phase modifiers; chargers; transformers (electricity); batteries and cells; fuel cells; electric wires and cables; electrical communication apparatus and instruments; telephone apparatus; vehicular radios communication machines and apparatus; vehicular telematics apparatus; data transmitters and receivers equipped with automobiles; charge completion automatic notification apparatus; navigation apparatus for vehicles (on-board computers); not-yet-inserted charge plug notification apparatus; electronic machines and apparatus; integrated circuits; electric circuits; computers; computer software; computer programs; remote control systems for recharging; electrodes; magnets; spectacles; cigar lighters for automobiles; protection devices for personal use against accidents; inverters(electricity); anti-theft warning apparatus. Class 37 Repair or maintenance of automobiles, electric vehicles including electric automobiles, wagons, trucks, vans, sport utility vehicles, buses, recreational vehicles (RV), sports cars, racing cars, lorries, fork lift trucks, and towing tractors (tractors), and structural parts and fittings therefor; providing information about repair or maintenance of automobiles, electric vehicles including electric automobiles, wagons, trucks, vans, sport utility vehicles, buses, recreational vehicles (RV), sports cars, racing cars, lorries, fork lift trucks, and towing tractors (tractors), and structural parts and fittings therefor; repair or maintenance of measuring or testing machines and instruments; repair or maintenance of power distribution or control machines and apparatus; repair or maintenance of rotary converters; repair or maintenance of phase modifier; repair or maintenance of chargers; repair or maintenance of batteries and cells; repair or maintenance of Internal combustion engines; repair or maintenance of parts of Internal combustion engines; repair or maintenance of starters for motors and engines, not for land vehicles; repair or maintenance of parts for AC motors and DC motors; repair or maintenance of AC generators and DC generators; repair or maintenance of power generators; repair or maintenance of electric wires or cables; repair or maintenance of telecommunication devices and apparatus; repair or maintenance of telephone apparatus; repair or maintenance of parts and accessories for telecommunication machines and apparatus; repair and maintenance of telematics apparatus for vehicles; repair or maintenance of charge completion automatic notification apparatus; repair or maintenance of vehicle navigation systems; repair or maintenance of electronic machines, apparatus, and their parts; repair or maintenance of personal computers; repair or maintenance of remote control systems; repair or maintenance of electrodes; repair or maintenance of magnetic cores; repair or maintenance of resistance wires The said proprietor claims all rights in respect of the above trade mark and will take all necessary legal steps against any person or company infringing their said rights. DAVIES COLLISON CAVE Patent and Trade Mark Attorneys 1 Nicholson Street Melbourne, Victoria, 3000 AUSTRALIA
TRADE MARK CAUTIONARY NOTICE IN MICRONESIA Notice is hereby given that Nissan Jidosha Kabushiki Kaisha (also trading as Nissan Motor Co., Ltd.), a Japanese corporation of No. 2 Takaracho, Kanagawa-ku, Yokohama-shi, Kanagawaken, Japan, is the sole proprietor in Micronesia and elsewhere of the following trade mark:
Used in respect of:Class 9 Measuring apparatus and instruments; counters; time recording apparatus; power distribution or control machines and apparatus; electricity distribution boxes; rotary converters; phase modifiers; chargers; transformers (electricity); batteries and cells; fuel cells; electric wires and cables; electrical communication apparatus and instruments; telephone apparatus; vehicular radios communication machines and apparatus; vehicular telematics apparatus; data transmitters and receivers equipped with automobiles; charge completion automatic notification apparatus; navigation apparatus for vehicles (on-board computers); not-yet-inserted charge plug notification apparatus; electronic machines and apparatus; integrated circuits; electric circuits; computers; computer software; computer programs; remote control systems for recharging; electrodes; magnets; spectacles; cigar lighters for automobiles; protection devices for personal use against accidents; inverters(electricity); anti-theft warning apparatus. Class 37 Repair or maintenance of automobiles, electric vehicles including electric automobiles, wagons, trucks, vans, sport utility vehicles, buses, recreational vehicles (RV), sports cars, racing cars, lorries, fork lift trucks, and towing tractors (tractors), and structural parts and fittings therefor; providing information about repair or maintenance of automobiles, electric vehicles including electric automobiles, wagons, trucks, vans, sport utility vehicles, buses, recreational vehicles (RV), sports cars, racing cars, lorries, fork lift trucks, and towing tractors (tractors), and structural parts and fittings therefor; repair or maintenance of measuring or testing machines and instruments; repair or maintenance of power distribution or control machines and apparatus; repair or maintenance of rotary converters; repair or maintenance of phase modifier; repair or maintenance of chargers; repair or maintenance of batteries and cells; repair or maintenance of Internal combustion engines; repair or maintenance of parts of Internal combustion engines; repair or maintenance of starters for motors and engines, not for land vehicles; repair or maintenance of parts for AC motors and DC motors; repair or maintenance of AC generators and DC generators; repair or maintenance of power generators; repair or maintenance of electric wires or cables; repair or maintenance of telecommunication devices and apparatus; repair or maintenance of telephone apparatus; repair or maintenance of parts and accessories for telecommunication machines and apparatus; repair and maintenance of telematics apparatus for vehicles; repair or maintenance of charge completion automatic notification apparatus; repair or maintenance of vehicle navigation systems; repair or maintenance of electronic machines, apparatus, and their parts; repair or maintenance of personal computers; repair or maintenance of remote control systems; repair or maintenance of electrodes; repair or maintenance of magnetic cores; repair or maintenance of resistance wires The said proprietor claims all rights in respect of the above trade mark and will take all necessary legal steps against any person or company infringing their said rights. DAVIES COLLISON CAVE Patent and Trade Mark Attorneys 1 Nicholson Street Melbourne, Victoria, 3000 AUSTRALIA
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