Hope for the reconstruction of the Nuku'alofa Central Business District was given a boost this morning when the Prime Minister, Hon. Dr Feleti Sevele, told a meeting of displaced business people that materials for the reconstruction of the CBD would be exempted from certain taxes, and that all government leases in the area will be renewed for 99 years.

Government had decided that materials and services for reconstruction projects would be exempt from both Consumption Tax and Import Tariffs, said the Prime Minister in a statement, but he stressed that, "these must be honestly applied by everybody."

The Minister of Land, Hon. Tuita who was present at the meeting, said that in return for the 99-year lease renewal government expected the lessee to agree to pull back his or her boundaries in order for the roads within the CBD to be widened.

It has been two months since the destruction of the Nuku'alofa CBD on 16 November 2006. The demolition and the clearing from the area of burnt out buildings and debris was initiated by government financing in conjunction with AusAid. The demolition work was expected to be fully completed by the end of the week, and the roadblocks and the restriction of movement into the CBD would be fully lifted by next week.

Hardship and frustration

Meanwhile, the two months lock down of the Nuku'alofa CBD has caused hardship and frustration among many businesses, including those who were not burned in the events of 16 November. The restriction of movement into the CBD has meant that many businesses that survived 16/11 had to subsequently close down for lack of customers, and many have relocated.

The meeting was the third post 16/11 consultation between government and the private sector.

Despite the eagerness of both the business people and government for the reconstruction of the CBD to start, there remains a genuine constraint on capital funds along with an expectation by the affected business people for government to help.

But the Prime Minister stressed today that there would be no handouts, but there may be a possibility of soft loans and for government to subsidise the interest on loans in the future.

"Government will do all that it can to help, but its ability and capability is, as we all know, limited. There are thousands of calls on its limited resources. The troubles of 16/11 affected not just those whose businesses were destroyed or damaged, but everybody else, including the farmers, the fishermen and even those in the outer islands of 'Eua, Ha'apai, Vava'u and the Niuas, and attention has to be given to these as well."

Security

On the security issues, the Prime Minister said that government, "will not take any short cuts nor make compromises. Admittedly, some businesses may be affected by the current roadblocks but the overall safety and security of everyone is the most important consideration.

"Government is being regularly updated on the situation by the Defence and Police Services. His Majesty's government is totally committed from now on to ensuring that what happened on November 16 will never ever happen again, so each and every one of us should be patient and understanding," he said.

Beautiful city centre

A Tonga Business Recovery Mission including a team of representatives from aid donors who visited Tonga during December 2006 and have presented a first report of recommendations to government, are expected to return to Tonga before the end of the month.

On January 29 a team of town planners from the Manuaku City Council were due in Tonga to present a plan for a new look Nuku'alofa. The Minister of Transport, Hon. Paul Karalus who favoured a properly planned town centre, suggested today for business people to attend and see the plan prepared by the Manuakau City Council town planners before they proceeded with any reconstruction work.

"We are looking at building a beautiful city," said Paul.