From the House, by Pesi Fonua.

Tonga’s Parliament passed the Foreign Investment Bill 2019 yesterday, 26 February with votes of 15-3, after a hot debate on whether or not to take into account the concerns of the Tonga Chamber of Commerce and the business community.

Against the Bill were Lord Tu‘i‘afiitu, Lord Tu‘ivakano and Lord Fusitu‘a.

The Bill was one of 11 Bills that was tabled into parliament when it opened for its 2019 session on 18 February, but it became an urgent item after the Deputy PM Hon. Semisi Sika informed the House that the Bill had to be passed before 28 February so that the World Bank, ADB, European Union and the Australian Government would release $35m in Budget Support for Tonga’s current 2018-19 National Budget.

The Bill was a modification of a Foreign Investment Act that was enacted in 2002. The Act has been modified a number of times, in 2014, 2016,  2018, and the 2019 Foreign Investment Bill, but it has not been re-enacted.

When the Foreign Investment Bill 2019 was tabled into parliament by the Minister of Labour, Hon. Dr Tu‘i Uata on 18 February a number of controversial clauses in the bill, in particular a Clause defining a Reserved List and a Restricted List, was highlighted by members.

A Reserved List specifies business activities which are reserved only for Tongan investors, and a Restricted List specifies business activities open to foreign investors, provided that it satisfies conditions that are prescribed in the regulations.

The need for a public consultation to be carried out on the Bill became a stumbling block for the urgent Bill.

Hon. Tu‘i Uata insisted that public consultation on the Bill had been carried out in 2014, 2017, 2018 and that he had the authority to decide who should be issued with a certificate under the Reserved List or the Restricted List.

A call for a public consultation on the Bill was led by Lord Fusitu‘a and Samiu Vaipulu, the Chairman of the Standing Committee on Finance and Public Accounts. Their point was that the 2019 Bill is a different legislation from the earlier Foreign Investment Bills.

Lord Fusitu‘a tabled into Parliament a request from the Tonga Chamber of Commerce and Industries (TCCI) and two large companies expressing their disappointment that there was no public consultation over the 2019 Foreign Investment Bill.

As the clock ticked along toward 28 February, parliament closed at mid-day on 20 February, so that the Minister of Labour could hold consultations with the business community.

When parliament resumed on Monday 25 February, he presented his report of the Consultation in the Whole House Committee.

The meeting started off with finger-pointing, the Minister reporting to the House that he was informed that the Chamber and the businesses that wrote and complained that there was no consultation with the business community over the 2019 Foreign Investment Bill did not complain to Lord Fusitu‘a, but it was Lord Fusitu‘a who contacted them about the Bill.

Lord Fusitu‘a however responded that the Chamber and the business community are very concerned about the 2019 Bill and stressed that the business community wants government to have a better understanding of their concerns.

The issue of who to decides who should be on the Reserved List and on the Restricted List became a hot issue.

Under the Bill, the authority is with the Minister, but Lord Fusitu‘a moved for the decision to be made by the Minister, a representative of the Chamber, and a representative of the particular business sector of the applicants.

Hon. Tu‘i Uata however was in outrage over the proposition. He stressed that the members of the Chamber are Tongans and foreigners, and he detested the idea that a foreigner might decide when a Tongan business applicant should be in the Reserved List or not.

There was a commotion in the House because some Tongan business people also have dual foreign nationalities.

The tension was diffused after the People's Representative for Niuatoputapu and Niuafo'ou, Vatau Hui told the House that Chinese are not allowed into Niuas.

Lord Fusitu‘a, the Nobles’ Representative for the Niuas said that there is indeed a Chinese falekoloa shop in Niuas.

Lord Tu'iha'angana also reminded the member that a truck donated by the Chinese government is running around in Niuas, and the member himself is driving around in a car donated by the Chinese.

Samiu Vaipulu, asked the Minister if there is a Reserved List, specifically only for the Niuas, he responded that that is for the Niuas to decide.

Lord Fusitu’a reminded the House that if a Bill encouraged corruption, “it is a bad law”.

Hon Tu'i Uata however insisted that the demand for the Chamber and a representative of a particular business sector to be in the body to decide who should be in the Reserved and the Restricted List would be spelled out in the Regulation for the Bill, to be approved by Cabinet once the Bill is enacted.

Lord Fusitu'a pointed out that a Regulation can’t change the Act.

The Chairman of the Whole House Committee, Veivosa Taka called for votes.

Samiu Vaipulu expressed his dismay and insisted for the debate to continue, but the Chairman called for Votes and it was carried 12.9.

Yesterday, 26 February the Bill was tabled into the House for its Second Reading in the Legislature.

There were debates over the same issue of who decides who will be in the Reserved List and in the Restricted List.

Hon Tu'i Uata insisted that it would be unacceptable for foreigners from the Chamber of Commerce to make a decision whether a Tongan should be in the Reserved List or not.

Siaosi Sovaleni told the Minister not to be “a racist”.

The Minister insisted the the Bill is for Tongans and it was not right for foreigners to make the final decision.

 The Speaker, Lord Fakafanua called for votes on the third and final reading of the Bill and it was carried 15-3. Against were Lord Fusitu'a, Lord Tu'i'afitu and Lord Tu'ivakano.