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Samiu believes competition lowers cost

Nuku'alofa, Tonga


Samiu Vaipulu follows the text book theory that competition will lower cost. In reality, that can be close to the truth if it is properly managed and monitored.  In many cases, it may appear that there is bona fide competition when two or more companies, or vendors are in the market.  Without or the lack of proper management collation is a real possibility.  Take for example the oil supply industry, there has been two oil suppliers to Tonga, and yet, there is no significant appearance or evidence of lower fuel cost from competition between these two companies.

It is a doggy dog world out there … business is out there to maximize their share in the market.  As with the airline, the Chinese airplane may come in with a lower price at first until it become the sole provider and business nature takes over …

Tonga may not realize the saving that Mr. Vaipulu is talking about … let’s not be too naive to think for a minute that China or any business for that matter is in Tonga because they love us and want to help us … they are there to make money … I would also warn against putting all your eggs in the Chinese basket … it is very likely that the Chinese will own Nuku’alofa in my lifetime when the government fails repay its huge loan …

I asked one of the loan recipient whether he will generate enough business and revenue to pay back is close to $9 million loan … his answer was, “I am not worried, I’ll probably be dead when by the time I am asked to start paying the loan back”.  

There will be a lot of children and grandchildren that will be bankrupt by this deal … the sad thing about this is that some are not born yet.  How would you like to arrive on your first day in kindergarten to be told that you must work extra hard to one day get a good paying job because your family still owes $5 million dollars to the Chinese?

Sione Lousiale Kava