From the House, an English translation summary from the Tongan vernacular, by Pesi Fonua. Tonga Legislative Assembly, Minute No. 10, June 26, 2007.

- The Speaker said a Bill for a new Electric Power Act was urgent in order for government to buy back the electric power generation from Shoreline.

- With regard to the concern about political reform the Prime Minister said it was still going forward and government still believed in the formation of a tripartite committee.

-'Akilisi, reminded the PM of a letter from the People's Committee for Political Reform [last year] stating that they don't support the system of government proposed by the Tu'ipelehake Committee and they would take civil disobedience action.

- 'Osai Latu expressed his concern with soil erosion in the low-lying areas of Ha'apai and the Minister of Finance said that a project proposal was being prepared for funding from the Global Environment Fund of the UN.

Tuesday June 26, 2007.

The Speaker read out the result of the election of new staff of the House. The position of Clerk Folio was won by Tupou Manuofetoa with 14 votes, and in second place was Popua Mafi with seven votes. Popua would become a reserve phonographer. For the position of security officer, there was a tie between Siaosi Peleki and Simione Lilo, so the House would vote again at 1.30pm.

The Speaker reminded the House that one urgent Bill they had to deal with before the end of the month is a Bill for a new Electric Power Act. He said it was urgent in order for government to buy back the electric power generation from Shoreline.

He also announced a new working timetable. They would stop at 12 noon, because there was an urgent Privy Council meeting, but then they would start again at 6 pm. There would be no session on Wednesday.

Squash loan

'Akilisi asked the Prime Minister to explained about the overdue $7.9 million loan of the Squash Council from the Tonga Development Bank, and the issue of economic and political reform.

The Prime Minister told the House that squash exports brought in about $250 million annually to Tonga, but in 2003 the squash harvest was not good so there was a request for government assistance in order for growers to cover their costs. The deal was a 10 seniti levy for every kilogram of squash exported until the loan is repaid. He said that when he became a Cabinet Minister there was a talk in the House about a conflict of interest, but it was not until he was appointed PM when he decided to resign from the position as the Chairman of the Squash Council. Last year there was a poor squash harvest and the Council approached the bank to suspend the 10 seniti levy and it was accepted. He said that the loan had not been repaid and they were working on it.

Political Reform

With regard to the concern about political reform he said it was still going forward and government still believed in the formation of a tripartite committee.

He reminded the House of a comment by one of the Speakers in a recent meeting in Auckland attended by the member that the good thing about political reform in Tonga was because it had been initiated from the top and it is supported by the king.

Both 'Akilisi and 'Isileli Pulu insisted that the PM and the squash growers who borrowed the money in the first instance were still responsible.

The PM told the members to leave the issue for the Bank and the Council to deal with, and they were working on it, but for them to come back to the proceedings of the House.

Civil Disobedience

'Akilisi, with regards to the political reform he reminded the PM of a letter from the People's Committee for Political Reform stating that they don't support the system of government proposed by the Tu'ipelehake Committee and they would take civil disobedience action. [Referring to a letter sent last year]. The PM had written and replied for them to lower their sails and accept the report of the Tu'ipelehake Committee.

The Prime Minister excused himself that he had other things to attend to, but he asked the member to produce a copy of his letter of reply.

After a break the committee dissolved into Legislature and the Clerk distributed voting papers for members to select a security officer for the House.

The votes were counted and the clerk announced that Siaosi Peleki won with 14 votes, and in second place was Simione Lilo with 13 votes.

The Legislature dissolved into committee and the debate on the budget continued.

Ha'apai erosion

'Osai Latu expressed his concern with soil erosion in the low-lying areas of Ha'apai.

The Governor of Ha'apai told the member to encourage the people of Ha'apai to pray constantly. He told the member that blessing has started to come to Ha'apai, the EU assistance to Vava'u had been extended to Ha'apai and solar power had been extended to the islands excepting for Lofanga.

The Minister of Finance said he had taken note of the concern of the Ha'apai PR, and that the Minister of Lands, the Minister for Foreign Affairs and himself had agreed to prepare a project proposal for funding from the Global Environment Fund of the UN. He said the allocation for the Pacific is $US100 million.

Next year election year

Clive Edwards on the move for tax exemption for all growers and fishermen to continue.

The Deputy Prime Minister reminded the House of what the Minister of Finance had explained that small time growers and fishermen are exempted from tax. The tax targeted the commercial farmers and fishermen. He stressed that small time growers and fishermen are not affected.

Samiu Vaipulu reminded the Cabinet Ministers that next year is an election year.