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Fish imports spark concern during budget debate

Nuku'alofa, Tonga

By Katalina Siasau

A government proposal to increase the supply of fish to the Tongan domestic market through a stop-gap arrangement with Chinese and Japanese fishing fleets, met with opposition in the House last week.

Members of Parliament, during the budget debate on 4 June, expressed concerns regarding the Government's arrangements, through the Ministry of Fisheries, with Chinese and Japanese fishing fleets to bring fish to Tonga, while the government is waiting for Tonga’s new fishing vessels to be built.

The proposed budget includes the delivery of three new long-line fishing vessels, through a $30 million in-kind grant of the People’s Republic of China (PRC). While these vessels are being built in China - which is expected to take about a year - the government is making immediate arrangements with existing Chinese and Japanese fishing fleets in the region, to increase Tonga’s local fish supply.

The House learned there had been negotiations with a Chinese fishing company to bring in fish from Fiji, with the necessary licensing requirements already provided, as stated in the government’s budget statement for 2025/26

Tongatapu no. 3 People's Representative, Hon. Siaosi Sovaleni (Hu’akavameiliku) questioned the Prime Minister, in his capacity as the Minister responsible for Fisheries, about the ownership of these new vessels.

PM Hon. Dr ‘Aisake Eke, clarified that the Government will own the new vessels, and their construction will take approximately one year.

The PM also confirmed the ongoing negotiations with a Chinese fishing company, which has already secured the necessary licenses, to import their catch from Fiji for sale in Tonga. He said this arrangement is expected to start within the next month and a half.

Vava'u no. 2 Noble’s Representative, Lord Tu’ilakepa, expressed concerns about Taiwanese vessels fishing in Tongan waters primarily for export. He said the allocated $0.5 million allocated for commercial fishing vessel management in the budget is not sufficient.

PR Sovaleni asked why this Chinese company had not previously fished in Tongan waters, “Do we have incentive to persuade them to sell here in Tonga?”

The PM explained that the current agreement, during the waiting period for the new vessels, involved the company fishing in Fijian waters and selling their catch in Tonga at specific negotiated prices, with the aim of “potentially reaching $10 pa’anga per kg for consumers.”

Sovaleni pressed further, asking, “So they come all the way from Fiji to Tonga, without any payment, to sell their catch? Are there government subsidies to facilitate their travel after fishing in Fiji, and why come here instead of just selling in Fiji? What are the details, what do we offer for these vessels to come here?”

He questioned whether they are permitted to fish in Tongan waters or if their fishing activities are solely conducted in Fiji.

Under negotiation

The PM responded that these details were still under negotiation by the Fisheries Ministry. However, the current understanding is that these vessels will fish in Fiji and then transport their catch to Tonga, where ice storage facilities will be available, and a committee will be established to oversee that.

“For now, fish needs to be cheaper for people,” said the PM.

'Eua Noble’s Representative, Lord Nuku, addressed the Speaker, to voice his concern that local fisheries might not be able to compete with these foreign fishing companies.

“With all due respect, Finance Minister, I am concerned that the introduction of the vessel from Fiji will negatively impact the livelihoods of many people in Tonga.

"While the intention may be to reduce prices, the fisheries sector is comprised of private businesses, therefore, bringing in a fishing vessel from Fiji, to support these private sector businesses, could destroy our local fisheries businesses.”

He said that the issue is the government's current support for the local fisheries sector, is not enough.

“That is the concern Prime Minister, I do not believe foreign fisheries companies will come and help as it states in the budget statement.”

The PM noted that the current challenges are that local fishermen cannot consistently meet the demand for fish from January to December, and secondly, the price is too high.

He said while some individuals may be affected, this is what a majority of people needed.

Sovaleni then questioned the legality of foreign vessels offloading or fishing in Tongan waters. “Is it legal for a foreign vessel to offload its catch in Tonga?”

The PM replied that there are regulations in place and that the Fisheries Ministry is operating within the existing legal framework.

Sovaleni replied that it is not legal for a vessel fishing in another country to directly offload in a different country.

The PM then assured that they would address this to ensure the process is legal.

Taxes on foreign vessels

The Minister for Customs & Inland Revenue, Hon. Mateni Tapueluelu, said that taxes are applied. He clarified there is 15% consumption tax applied to sales by foreign vessels registered in other countries. 

There are three foreign fishing vessels registered to fish in Tonga, with an agreement that for approximately 40 tons of catch over two months of fishing, 5% should be offloaded in Tonga, and the remainder exported. He said the agreement states that the market price for the 5% offloaded is determined by the Fisheries Ministry at $10 pa’anga per kg, along with a 5% FOB annually.

Tongatapu no. 9 People's Representative,Hon. Sevenitini Toumo’ua, proposed increasing the 5% offload to meet local demand, instead of bringing in fishing vessels from Fiji.

Tapueluelu explained that the fishing vessels would not be profitable if they were required to offload more than 5% in Tonga.

Sovaleni then asked, “Why would a vessel from Fiji want to suffer the same, and waste money here. That’s why I asked if there’s any incentive given by the government.”

The PM reiterated that the existing laws and regulations will be applied.

Ha’apai livelihoods depend on ocean

Ha'apai no. 13 People's Representative, Hon. Veivosa Light of Life Taka, expressed his concern that 75% of Ha’apai fishermen engage in deep-sea fishing, and the livelihoods of the people of Ha’apai are heavily dependent on the ocean.

He asked the government if they had consulted with local fishermen to understand the reasons behind the high fish prices.

“It is the government's role to create a market for the people of Ha’apai to sell their fish in?” he asked.

He warned, “fisheries businesses in Ha’apai will die.”

He urged the government to improve their planning. Concluding with a passionate plea, he said, “I would rather die than allow my kainga to die.” He was tearful, and emotional.

The PM replied, “The people of Ha’apai are the ones complaining about the high prices of fish.”

Tongatapu no. 8 People's Representative, Hon. Johnny Grattan Vaea Taione, noted that the Constitution allows for all men to dispose of their labour and the fruit of their hands and to use their own property as they will.

He said that as farmers and fishermen increase the price of their labour to get more income, the government then complains that it is too expensive.

The PM replied, “It is not the government, it is the people that are complaining.”

“The fishermen cannot meet the consumer demands. That's why the government intervenes, because of the high price.”

Tonga requested assistance

Vava'u no. 1 Noble’s Representative, Lord Tu’i’afitu, cautioned the government that powerful nations might use grants to further their own agendas.

He expressed concern about larger powers potentially exploiting smaller countries, advising, “Be cautious.

In response, the PM stated that China is assisting at Tonga’s request. He emphasized that Tonga’s best interests are the “ultimate deciding factor.”

“But we do consider the concern given," he said.

Following the conclusion of the parliamentary session, the Speaker brought to the House's attention the King's addresses in Parliament, emphasizing that the government and the use of public funds are accountable to the Legislative Assembly.

The House reconvened on Monday, 16 June.

The 2025/26 budget indicates that some of the most significant contributors include China, alongside the Asian Development Bank, and the World Bank.