From the House, by Pesi Fonua

The debt-burdened Tonga Forest Products Ltd. was in big trouble and being propped up by government, Hon. Poasi Tei, the Minister for Public Enterprises, told the Tongan Parliament on Thursday, 16 June.

He said that last year they gave Tonga Forest Products Ltd. an extra $1 million to prop up the government-owned enterprise while they tried to get to the root of their problems, but during the process “they burnt their records,” he claimed.

He said that the Tonga Forest Products Ltd. has 700 hectares of land on ‘Eua; 200 hectares is under water, 30 hectares has been planted and 180 hectares had yet to be planted, “but we needed millions.”

Meanwhile, the TFPL had borrowed from the Tonga Development Bank about $6 million pa’anga.

He told parliament that  the good news was that a Maori Company from New Zealand is investing millions in Tonga.

He said that they had signed an agreement with the company.

The Maori company will settle the TFPL loans from the TDB; and also invest $1 million to buy new equipment and to plant new pine trees.

Missing financial records

Lord Fusitu’a informed the Committee that it should be recognized that the King played a major role in attracting the Maori company to invest in Tonga.

Lord Tu’iha’ateiho wanted to know what the Minister has done about the burnt financial records of the TFPL, but the Chairman told the member to sit down. “Don’t ask questions until the Minister finishes his presentation.”

Well, the Vote was passed before the Committee broke up for their afternoon tea, and the House still did not know what happened to the burnt financial records of the TFPL.

The other highlights from the debate over the Vote of the Ministry for Public Enterprises were:

•    The current price of electricity is 70 seniti per unit, it could have been 76 seniti, but 6 seniti has been absorbed by renewable energy from solar farms that have been established.

•    The dividend from Tonga Power Ltd this year is 7.5% of its profits, but the aim is to go up to 9% in the coming financial year.

•    The new $55m extension of the domestic Faua Wharf [built in 1942], which is currently being built by the Japanese government.

•    The commercialisation program of the Tonga Development Bank. The TDB now offers foreign exchange and money transfer service. Next on their development program is the establishment of ATM booths.  

•    Waste  Authority Ltd. is looking at establishing branches in Ha’apai and Vava’u.

•    The inter-islands ferry ‘Otuanga’ofa is out of service. The broken part of the engine can only be acquired from Japan, and it will take about three or four months to get the ferry fix and back in service.

•    To keep the inter-islands ferry service going, they will use its cargo ship, the MV Niuvakai or  hire  Tui Uata’s ferry.

15 Public Enterprises

The Minister of Public Enterprises told the committee that 12 out of the 15 Public Enterprises PEs, made about $3 million profit during the current financial year, and employed 1200 people.

Lord Fusitu’a queried why the ministry has a legal section, while government spends millions in its legal division, and an Attorney General AG to provide legal service for government entities.

The Minister reminded the committee that he had 15 PEs to look after and there are many minor legal issues to deal with. There was no need to bother the AG with those minor issues.

Lord Fusitu’a raised an issue, relating to a court case in the Supreme Court that the Ministry lost. He said that they lost the case because of a Cabinet decision.

[The court case that Lord Fusitu’a referred to was a case between his mother Lady Fusitu’a, the chairman of the former board of the Tonga Broadcasting Commission and another board member, Lady Tuna Fielakepa. They refused to resign as members of the board of the Tonga Broadcasting Commission when Hon. Poasi Tei told them to.]

Hon. Poasi Tei corrected the member, that the case was not a Cabinet decision, “it was my decision.”

“They lost because the Attorney General did not give all the relevant information to the court,” said Mateni Tapueluelu.

Samiu Vaipulu reminded the committee that they had nothing to do with court decisions.

“I have lost 40 cases, but now I am Prime Minister,” said Hon. ‘Akilisi Pohiva.

“It was the Prime Minister, who said to leave the law aside,” said Lord Fusitu’a.

“I did not mean to leave the law aside for good . . . but to give us time to talk – talatalanoa,” explained the Prime Minister.

Lord Fusitu’a claimed that the court case the Ministry lost would cost government $140,000 for the local lawyers’ fees and $200,000 for overseas lawyers.

Complaint

The Tongatapu People Representative for Constituency No. 4 Mateni Tapueluelu told the minister that he has a lot of material to support a complaint against a chief executive officer of one of the Public Enterprises.

The Minister told the PR that the proper channel is to forward the complaints to the Public Relations Commission. He said that even if the complaints came to them, they would forward them to the Public Service Commission.

Mateni warned that if the Public Service Association were to get involved, there was a possibility of a civil service strike.

The Chairman of the Whole House Committee called for votes and Vote No. 9 was carried 20-0.

New Ministry

After an afternoon tea, the debate in committee moved on to Vote No. 10 of a new Ministry, the Ministry of Commerce, Consumer, Trade, Innocation and Labour.

The chairman gave a verse from the bible to introduce each budget allocation.

For Vote No. 10, the bible reading was from the Epistle of Apostle Paul to the Galatians.

Lord Tu’ilakepa moved for the debate on the vote to be deferred until the Minister returned from overseas.

[The Minister, Hon. Pohiva Tu’i’onetoa was away in Switzerland, leading a Tonga delegation a meeting of the International Labour Organisation. The Minister is accompanied by John Paul Chapman, the President of the Tonga Chamber of Commerce, and Mele ‘Amanaki, the Secretary General of Tonga’s Public Servants Association].

A sudden shift of the proceeding in committee, the Speaker suggested that they should defer their debate on the Vote because there was a need to amend the Government Service Act, to change the name of the Ministry to what it is in the budget allocation that they were debating, and possibly would pass.

The Whole House Committee WHC was dissolved into Legislature and the Speaker took his chair.

Bill No. 2 2016 to amend the Government Service Act was read.

Lord Tu’i’afitu moved for the bill to be lowered to the Whole House Committee.

The Legislature was dissolved into the Whole House committee, and the debate continued with Vote No. 12).

Business names

Lord Tu’ivakano expressed his concern over the practice of changing the names of businesses to avoid paying taxes.

Hon. Tevita Lavemaau said that a lot of this practice was taking place in Vava’u. The money stayed overseas and their expenses here were very little. They have their own yachts as their office and accommodation. “We are working to fix it.”

“Why the change?” asked Lord Tu’ilakepa.

“We are introducing a Knowledge Economy…that is the future, and we are moving in that direction.”

Knowledge economy vs mutton flaps

However, instead of engaging in a debate on Knowledge Economy, the committee plunged into debate on ruthless it was for government to increase duty on mutton flaps and on tobacco.

Lord Tu’ilakepa said that people should have freedom of choice. He said that there should be more tax on imported chicken than on mutton flaps, because a lot of chemicals had been injected into chickens.

He said that people should have the freedom of choice, and with the Non Communicable Diseases, people have the freedom of choice.

The Minister of Health, Hon. Saia Piukala reminded the committee that NCDs are a heavy responsibility for everyone. “We have to create an environment of healthy food,” he said, and expressed his disappointment if they were creating an environment where water will be more expensive than soft drinks.

High cost of NCDs

“We want to make a healthy choice, an easy choice,” he said and quoted the late Dr Malakai Ake.

Hon. Saia Piukala was weary over the concern of how government was trying to make money from putting heavy duty on what they considered to be unhealthy food.

He pointed out that government is expecting to earn $5miliion from the duty on tobacco, and yet “our expense on NCD is ten times that amount.

“You have the choice – but when you are sick and die it affects us all….Our revenue collection is peanuts.”

Foreign-owned business

Perhaps members got a bit worry about dying, but the debate took another turn. This time, they were worried that it was becoming more visible that an increasing number of businesses are owned by foreigners.

Lord Nuku expressed his concern that there seem to be no more Tongan construction companies in operation.

Hon. Vuna Fa’otusia explained that most businesses are owned by Tongans, “they may be Chinese, but they are Tongans.”

After a tea break, the Chairman called for vote on Vote No. 12. It was carried 19-0.

Attorney General

The proceeding moved on to Vote No. 13 of the Attorney General.

There was no more bible reading, the Chairman called for vote and it was carried 19-0.

Next was Vote No. 14 of the Ministry of Police, Prison and the Fire Service.

Hon. Pohiva Tu’i’onetoa the Minister of the new ministry, is also the Minister of Police, Prisons and Fire Service.

Lord Tu’ivakano commented on a huge allocation of money that was spent to investigate an allegation for the illegal selling of the Tongan Passports. He said that the Auditor General was looking into the into the enormous money that was spent on this investigation.

[The alleged illegal selling of the Tongan Passports took place when the Speaker was the Prime Minister and the Minister for Foreign Affairs from 2010-2014. Immigration is under the Minister for Foreign Affairs.]

“There was no sales of passports,” said Lord Tu’ivakano. “What I did was renew the Tongan passports of Tongans; a responsibility of the Minister for Foreign Affairs.”

Hon. ‘Aisake Eke said that the Ministry of Finance did not spend any money on any investigation on Tongan Passports.

“A report will be presented to the House this week,” said the Prime Minister.

Lord Tu’ilakepa expressed his concern over the working relationship between the Minister and the Police Commissioner, because he said “all the power is with the Police Commissioner.”

Lord Ma’afu reminded the committee that there is no difference between the working relation of the Minister of Police and the Police Commissioner, and that between him, the Minister of His Majesty’s Armed Forces and the Brigadier of HMAF.

Drugs

Lord Tu’ilakepa pleaded with Lord Ma’afu to slow down.

“All the power is with the Police Commissioner,” said Lord Tu’ilakepa. “He is fine but the Ministry should be cleaned out. There are a few there who should be moved out.

“Minister of Justice, where is the more than 200kg of drugs [cocaine] that was found in Vava’u?”

Minister of Police, Hon. Vuna Fa’otusia, said that that was one of the things they were looking into. He said that the Commissioner and the Attorney General were working on it. “It was sent to be tested in Australia. The Commissioner said it was destroyed.”

PR Mateni Tapueluelu, moved for the House to draft a new bill, to move out some of the top rank officers in the police, “including the commissioner.”  

Hon. Vuna Fa’otusia said that they are still looking into the issue. He said that the Commissioner said he had received a report, but there is still doubt if the drugs were destroyed.

The Chairman called for votes, and Vote No. 14 was carried 19-0.

Psalms for salary rise

The proceeding move on to Vote No. 15 of the Ministry of Health.

The Chairman reminded members that the Bible reading for Vote No. 15 was from the book of Psalms.

The Minister of Health, Dr Saia Piukala said that there is an increase in his budget of $2 million, and 70% of the $2m goes on salary rise. He reminded the committee that most important for him is the life of the health workers.

He said that a special facility had also been built at the Hu’atolitoli Prison to offer special care people with mental problems.

He told the committee of a steadily increasing number of patients with mental problems because of the misuse of drugs. He said that the figure went up by 30% in 2014, then by 40% in 2015 and this year 55%.

“Is there a strategy to counter this?” asked Lord Nuku.

“We are working on it,” said Saia, but for a start, “the mental ward at Vaiola is too small.”

The Chairman called for votes and Vote No. 15 was carried 21-0.

The Committee was dissolved into Legislature, and the House was closed until 11 am, Monday, 20 June.