The Tongan economy should bounce back during the new financial year, HM King George Tupou V said this morning in his speech from the throne to open Tonga's 2007 parliamentary session.

The king said that despite the burden that has been inflicted on the country's Foreign Reserve by the recent massive public servants' salary rise and redundancy payments; and the civil disturbance that occurred last year the country's Foreign Reserve remained at a level the equivalent of four months of imports.

The king said that to further encourage economic growth government will amend the Income tax and the Custom Duty Acts and will assist some businesses.

He said that the top priority ventures for government are Tourism, Manufacturing, Agriculture, Fisheries and the supporting facilities such as the roads, harbours and airports. He pointed out that already an estate owner had signed an agreement with an international corporation to build a hotel and a holiday resort in Vava'u.

The king said that the rebuilding of Nuku'alofa would be a major task for government during the next five years. He called for the cooperation of the House in the reconstruction work by passing appropriate legislations. He said that the work could start with loan money that government has negotiated with the People's Republic of China.

With regard to education, the king said that government would move a motion to lower the age that a child could start schooling from six to five and that a child could leave school when he or she turns 18 years old. He said that during the next five years government aims that 60% of all school leavers should have access to technical education.