The Tonga government is proposing to foot the bill for some community services that are provided by Public Enterprises, to help make them more viable businesses, and may subsidise services such as ferries to remote islands, and water for putting out fires.

They aim to identify the services which public enterprises provide at their own cost, and which do not generate income.

The Minister of Public Enterprise Hon 'Afu'alo Matoto in opening a workshop on 'Delivering Community Service Obligations in Tonga: Best Practice for Maximising Results', at the Janfull Dateline International Hotel on May 1 said that the objective of the workshop was to promote good governance and transparency.

He said that Government often asked Public Enterprises to undertake community services at a nominal fee or at no cost, "and it affects their performances because the service they provide does not generate any income, so Government should pay them for providing these community obligations.

"It is not fair for the Public Enterprises to do it at their own cost therefore Government should be compensating them appropriately."

'Afu'alo said the workshop, funded by the Asian Development Bank would help Public Enterprises to firstly, identify the community service obligations they are providing, and secondly to agree with government on a payment for their service.

"It will also look at community services they may not want to do because it is too costly, but if Government pays them they can be persuaded to do it," said the Minister.

He said that government would have to ascertain that the community services provided were carried out efficiently and of a high standard.

Ferries

With regards to community services which are not commercially viable but it is the responsibility of the government to provide, 'Afu'alo referred to the Shipping Corporation ferry service to the Niuas.

"For the shipping company, this service is not commercially viable but to encourage them to continue, Government subsidised the service cost so that the people of the Niuas don't live in isolation.

"The Tonga Water Board is another issue, because the water used by the fire department for fires is not paid by anyone, but government should pay for it because water is expensive.

"In order for the Public Enterprises to become viable commercial enterprises Government should pay for the community services they are providing and ensure that these enterprises are running profitably," said 'Afu'alo.

Compensation

The CEO for the Ministry for Public Enterprises, 'Inoke Vala said this whole workshop is for Public Enterprise to identify the services they are providing to the community that could be compensated by Government.

"The aim then is for government to foot the bill but the Public Enterprise has to submit to Government a proposal that is clear, focused and justifiable and say how much, for what purpose and confirm this is a community service.

"We are focusing on how to make the Public Enterprises more viable as business entities that can generate their own income and not solely rely on Government to pay for all of their expenses," said 'Inoke.

Participants at the workshop included the Tonga Communication Corporation, Solid Waste Ltd, Ports Authority, Tonga Broadcasting Commission, Tonga Timber Ltd, Tonga Market Ltd, Tonga Electric Power Board, and Tonga Water Board among others.

The workshop was conducted by ADB consultants Laure Darcy, Chris Russell and David Bunting.