The Prime Minister Prince 'Ulukalala Lavaka Ata warned parliament that soon government would have to make a decision on the strike, either before an arbitrator arrived or after.

From the House, translation summary by Pesi Fonua.

Tonga Legislative Assembly, Minute No. 24, Tuesday August 16, 2005.

- Prince Tu'ipelehake queried the legality of the membership of the Standing and the Elected committees, and he proposed that no Cabinet Ministers should be chairman of these committees.

- A report from Cabinet on what they had done to the resolution that was passed by the House, calling on them to action the petition of civil servants to raise their salaries.

- The Prime Minister said that a team from the International Monetary Fund (IMF) and the National Reserve Bank had written to government and warned them of negative economic consequences if they give in to the demand by the public servants for a 60, 70, and 80% salary rise.

- Prince Tu'ipelehake wanted to know if government would abide with finding of independent Auditor and arbitrator.

- The PM said that if the Independent Auditor recommended for government to downsize the public service, government would downsize the service and would not fill vacant posts.

- 'Akilisi reminded the House of the Royal Tongan Airlines saga when the recommendation of an Independent Auditor was ignored, instead government formed a Royal Commission, and two years later the problems with RTA had not been solved.

- The PM elaborated on two specific issues, first that if the striking civil servants would return to work they would be paid on the new salary scale, and they would not be punished. They would also not be paid for the days when they went on strike. But he said soon, either before or after the independent auditor arrived, whose interests would we take into consideration, of the minority of striking civil servants or the majority of the population. He said that we had not got to that stage yet but he was warning soon government would have to make a decision.

- Samiu said that government had not addressed the issue of whether the striking civil servants would be punished or not. He said that not being paid, and the threat of being fired was punishment.

-- The Prime Minister said that for government to accept or not to accept the recommendation of an independent auditor would be a matter for government to decide, whether to give in to the demand of a few or the interest of the majority of the country.

Letter of petition

The Speaker, Hon. Veikune, said that the House would proceed and listen to a Cabinet decision on a resolution that was passed by the House on July 26, for government to action a letter of petition that was presented to the House by the Public Servants Association.

A Tongatapu Nobles Representative, Prince Tu'ipelehake, on a different issue queried the membership of the House's Standing and Elected Committee. He said that under the House's regulations the committee should not have more than 12 members, but he noticed that each committee had 14 members. He suggested for the House to amend its regulation if it wanted to increase the membership to 14. He also suggested for the chairmanship of committees to be elected only from the nobles and the people's representatives because cabinet ministers were far too busy with other responsibilities.

The Speaker called on the Clerk to make sure that all members had copies of the reply letter from the Prime Minister, and for him to read out the letter.

Public service salary revision

The letter was a report of what government had done to parliament's Resolution No. 1 for 2005. It said the Cabinet and the Public Service commission had been working urgently to find solution to the problems with the public service salary revision program.

These were some of the work that had been completed -

1. Phase one of the salary revision to all government ministries has been completed.

2. All posts in the public service have an average increase of 30%, while some of the top level posts have an increase of 100%.

3. Each ministry finances their own increase from their own vote that were allocated in the budget, excepting for the Ministry of Education and the Ministry of Health, which would receive some extra funding from the treasury.

4. This latest revision has been estimated to cost $5 million, in addition to the $7.1 million that was allocated in the budget. A major part of the $5 million though would be financed by each ministry from its annual allocation.

5. It had also been announced for each ministry to hurry up and implement phase two and three of the salary revision before the end of the current financial year. There were also arrangements for the back dating of salaries to July 1 2005.

With regards to a petition for a salary rise of 60%, 70% and 80% it could not be implemented by government.

It also said that government will carry out the wishes of the king in response to the petition from the striking public servants, and they would bring in an independent auditor and an arbitrator.

The Prime Minister, Prince 'Ulukalala Lavaka Ata, said that a team from the International Monetary Fund has just left the country and they wrote and warned of the negative economic consequences if government would give in to the demand by the Public Servants. He said that the National Reserve Bank has also written and warn of a negative impact if a 60, 70 and 80% rise would be awarded to the public servants.

Top echelon 100% queried

The Legislature was dissolved into committee and the chairman of the Committee, Noble Havea Tu'iha'angana took his chair.

A Tongatapu People's Representative, Clive Edwards wanted to know the number and the ministries where the top echelon had been awarded 100% salary rises.

The Prime Minister said he did not know but the Minister of Finance would know.

Clive Edwards insisted that the question was very straight forward, how many ministries were awarded the average rise of 30% and how many were awarded the 100% rise.

The Minister of Finance, Hon. Siosiua 'Utoikamanu, said that because there were complaints about job descriptions the Public Service Commission had to reassess the job description and the outcome was that some were awarded rises of 100% and some only 2% or 3%, but on average there was an increase of 30%. He said that 95% of government ministries had been dealt with, and only one or two ministries were left for job re-evaluation.

Clive queried, that if this was the case then why had the situation not been clearly explained to the striking civil servants so that they would return to work.

The Prime Minister said that it had been done through the radio and television, but they had gone deaf because of what some members of parliament had told them.

A Tongatapu People's Representative, 'Akilisi Pohiva, suggested for the Prime Minister and the Cabinet Ministers to go over to Pangai Si'i and tell the public servants the figures.

The Prime Minister said that what he said in the House, would be the same as explaining it to the people outside.

The Minister of Police, Hon. Nuku, reminded the House that the Resolution was from the House and the reply was to be read in the House, but not under the 'ovava tree outside.

The Prime Minister said that the important figure in the report was that 53% of the total revenue went on the salaries of the civil servants and only 47% went on the services for the public. He said that if they would give in to the demand of the striking civil servants the percentage of the budget on salaries would go up to 76%.

Clive said that it was normal for government salaries to be around 60% and upward.

The Prime Minister said that no government in the world operate like that, normally it should be only 30% on salaries and 70% on public services.

Arbitrator

Prince Tu'ipelehake wanted some clarification to what was stated on page 3, which read - government would allow the independent auditor and arbitrator to finalise what the two parties would agree to. He wanted to know if government would abide by the recommendation of the auditor and the arbitrator.

The Prime Minister replied if the two parties would agree to it. He said that if the auditor and the arbitrator said that there were too many public servants and the service should be down sized then we would have to lay some off. He elaborated that there had been reports from Australia and New Zealand during the past 20 to 30 years recommending the down sizing of the public service, and if the independent auditor would recommend a cut, government would definitely cut down the size of the public service.

In response to an earlier question by Clive about government's vacant posts, and if they would be filled, he said there were 400 vacant posts. He said that the information that he had to date showed that the public service was running well, therefore the next step for us was to decide if we still needed those who are on strike.

'Akilisi Pohiva said that the striking public servants looked upon this exercise of bringing in an independent auditor and arbitrator as prolonging the hardship and a waste of time. He said that the going on with RTA was still fresh in their memory, where an auditor made a report and it was not accepted by government, followed by a Royal Commission, and two years later still nothing had been done.

'Akilisi also wanted to know if government would abide by the decision of the independent auditor if the auditor supported the figures of the PSA.

The Prime Minister said that government did not take only the interest of the public servants into consideration, but the whole population of Tonga, including those who had been punished by not being able to go to school, because of these clever teachers.

Prince Tu'ipelehake, said that since they had received a reply from government for the Resolution, the question was what next?

Clive said that the question was did they do what was passed by the House? He expressed his doubt because there were explanations that did not make any sense. With regards to the $5 million he said that that figure was passed last year. He said that there was so much confusion, and if the House was confused, the public servants would be even more confused.

The Prime Minister said that the problem was because when the PSC went around these ministries for job re-evaluation that was no one there to talk to because they were on strike. The PSC would recommend to the Cabinet for a salary rise, and if it was approved by the Cabinet, then a salary rise would take place.

Clive said that the government decision was one sided, and that the public servants had been threatened that they would be sacked, so how could they ever hope for reconciliation.

The PM said that it was only Clive who went on TV and threatened public servants who were still at work.

Clive said he had never threatened anyone, but the PM said he threatened the Ministry of Civil Aviation, and that he had got the tape.

Negotiations

The Minister of Justice, Hon. Siaosi 'Aho, who chaired the negotiation committee of Cabinet gave a brief summary of the state of negotiations with the PSA, which was more or less what had been stated in the letter from the Prime Minister.

But the Prime Minister further elaborated on two specific issues, first that if the striking civil servants would return to work they would be paid on the new salary scale, and they would not be punished.

They would not be paid for the days when they went on strike. But he said soon, either before or after the independent auditor arrived, whose interest we would take into consideration, that of the minority striking civil servants or the majority of the population. He said that we had not got to that stage yet but he was warning that soon government would have to make a decision.

A Vava'u People's Representative, Samiu Vaipulu, pointed out that one of the main concerns that was not addressed in the reply from Cabinet was that those who went on strike would not be punished. He said that that was contrary to what the Prime Minister was talking about that there would come a time when government might downsize the civil service and might not fill vacancy posts. He pointed out that by not paying them for when they went on strike was a punishment.

The Prime Minister said that there would be punishment for those who would do as they please. He asked the member to consider the future of the country and not having schools open.

Samiu said that such an approach would not bring peace and unity. He suggested that they should pay the civil servants. He said that teachers knew their obligation to their students, and in Vava'u, even though they did not go to school during the day, but they offered night classes to their students.

The other matter he wanted to raise was what would happen if the independent auditor would decide that the demand by the civil servants would be met and it should be implemented. He wanted to know what government would do next, seek the view of a Royal Commission or adopt the view of the independent auditor?

The Prime Minister said that for government to accept or not to accept the recommendation of an independent auditor would be a matter for government to decide, whether to give in to the demand of a few or the interest of the majority of the country.

Samiu said that the PM was not answering his question, which was if the independent auditor and arbitrator found that government could afford to pay the 60, 70 and 80%, would government pay up?

The Minister of Labour, Hon. Feleti Sevele, said that the findings of these two independent professionals should be accepted by the two parties concerned.

Government undecided

The Prime Minister agreed with the Minister of Labour, but he said that if government decided what it thought was best for the country before the arrival of the independent auditor then that would be a different matter.

He said that government had not made a decision on what to do with those who went on strike, but if those who were working with figures would say that the economy of the country was affected because of the strike then government would have to decide what should be done.

The committee was dissolved into legislature then the House was closed for the day.