From the House, an English translation summary of the Minutes from the Tongan vernacular, by Pesi Fonua.

Highlights from June 10:

- 'Akilisi Pohiva proposed for government to encourage Chinese business people in Tonga to invest in industries in order to provide employment for Tongans, leaving the retailing businesses for Tongans.

- The Minister of Tourism said that PRs are good at criticism, and presenting wild ideas but are not doing any productive work. With regards to a drop in the export of Tongan agricultural produce, Tongan growers grow only local crops, talo, 'ufi and kape. Foreigners don't eat kape so the PRs should go out and encourage growers to grow the right kind of crops,which they can market overseas.

- Clive Edwards warned the House to be cautious while talking about buying back Shoreline, because Shoreline assets had been used as a collateral to secure the company's loan from China, so we could not say the government would pay only five or six million for Shoreline property while it is already tied up in a loan of a bigger amount. He said that it was the king who signed for the loan, and Tonga had no alternative but to repay the loan. He said that the Shoreline loan from China was between $30 and $40 million pa'anga.

 

Tonga Legislative Assembly,

Minute No. 4, Tuesday June 10, 2008.

- The Clerk told the Speaker that the Prime Minister was still overseas, so was the Minister of Labour and Commerce, and Noble Tu'ipelehake. Noble Lasike was sick and those who did not answer their call were probably coming late.

- 'Akilisi Pohiva expressed his concern over the enormous amount the house had to pay, $29,408 pa'anga, for two members to attend a meeting in Adelaide, Australia. He did not object to the trip, but proposed for the House to review its travel expenditure.

The Speaker reminded the member that it was the same amount that was paid to him when he travelled overseas.

Sunia Fili pointed out that the travel allowances of the House were under a policy that was passed by the House.

Samiu Vaipulu told the House that to get to Adelaide they had to go through Sydney, and to get to Honiara they had to go through Fiji, so they could not avoid the stop-overs.

The Speaker called for votes on the Travel Allowances for the two members to go to Adelaide. It was carried, 16-1. Objection, 'Akilisi.

The Speaker called for votes on the invitation for the Solomons. It was carried 20-1. Objection, 'Akilisi.

Teisina Fuko proposed for the Minutes of the House to be made available in Vava'u and Ha'apai.

The Minister for Youth and Sport, reminded the House that when he was the Speaker, they made the Minutes available in Vava'u and Ha'apai, but it was a waste of money because no one was buying them.

The Speaker dissolved the Legislature and the Chairman of the Whole House Committee, Samiu Vaipulu, took his chair.

Kava Tonga

The PR for the Niuas, Feingtau 'Iloa requested for government to inquire about the exporting of Kava Tonga to Australia, he said that Kava Tonga was one produce that the people of the Niuas could produce.

The Chairman, Samiu Vaipulu, proposed for the House to pressure government to make the loan from China accessible not only for the reconstruction of Nuku'alofa but for commercial ventures in tourism, agriculture and fisheries.

Teisina Fuko told the Chairman that he should remain the Chairman and let them do the debating.

The Chairman said it was just a suggestion, but Teisina said he should wait until the end of their debate on the budget.

'Isileli Pulu expressed his disbelief that there might be a 3% growth in the economy during the coming financial year. He said that the government was trying to make them feel good.

Sunia Fili wanted to know if the real figure was 3.2 or 3.3%.

The Minister of Finance said that the IMF figure was 3.2%, but their own figure is 3%.

'Isileli Pulu said that the latest government figures on unemployment was from 1996 and it was 13.3%. He was sure it was more now, but then queried why there was no investment in industries to provide employment. His point was that he disputed the 3% growth in the economy, as stated by government. He also claimed that there is a double up in the charging of Consumption Tax, by the importers at the wharf and by the retailers at the small shops.

'Akilisi Pohiva, agreed with 'Isileli that unemployment is a problem. He proposed to encourage Chinese to invest in industries in order to provide employment for Tongans, leaving only the retailing business for Tongans.

'Etuate Lavulavu, said that the problem with the unemployment is that three different ministries, the Ministry of Youth and Sports, the Ministry of Labour and Commerce and the Ministry of Education are all involved in technical training, with the hope of finding employment for school leavers. Unfortunately, to clash with each other.

Teisina Fuko's view of the budget was that government was not collecting enough income tax from companies and individuals who were making a lot of money but they had been heavy on imposing all sorts of charges on imported goods, and therefore the poor get poorer while the rich get richer.

'Akilisi Pohiva reminded the House that Shoreline during the past five years owed government $2.6 million in taxes.

'Etuate Lavulavu said that the problem was because there were no laws, and if there is it could not be enforced. He claimed that companies claimed huge losses while transferring their profit overseas.

The Minister of Finance, Afu'alo Matoto, corrected the member that there is a Foreign Exchange Control Act, and there is a tight control on the transferring of money overseas. The member just had a very simplistic view of the matter.

The Minister in responding to claims that had been made by PRs. First that the 3% growth in the economy that has been predicted was real, and according to statistics that he had it could even be more.

With regards to claim that three ministries were clashing over on how to deal with skill training was not true, and that each ministry knew exactly what it was supposed to be doing.

Agriculture and fisheries

'Akilisi Pohiva on a different issue said that after years of government investment on Agriculture and Fisheries there had been no growth in those areas, therefore government should tell them what were the problems, it should be easy to know.

The Minister of Works, Noble Nuku, said that he was involved in agriculture and fisheries and there were a number of changes in the industries, trying to find solutions to the problems.

He said that few years back they plunged into tuna fishing, a lot of money were invested, then it was discovered that the Tongan water was too cold and therefore there was no tuna. Agriculture was the same, they were going from one crop to another, the latest is maize. He called on PRs to do their jobs and go and talk to the growers so that they find out what is happening out there in the fields.

The Minister of Tourism, Fineasi Funaki, said that PRs are not doing their job. With regards to agriculture, Tongan growers grow only local crops, talo, 'ufi and kape. The foreigners don't eat kape so the PRs should do their job and go out and encourage growers to grow the right kind of crop, which they can market. These PRs are good at criticism, and presenting wild ideas but are not doing anything about them.

Clive Edwards wanted to know about a $9 million loan by squash growers that was guaranteed by government. He could not find it anywhere in the budget.

The Minister of Finance told the member that the loan debt is in the budget, and it had been repaid by the Squash Council to the Tonga Development Bank.

With regards to concern over the Tax Reform and the tightening up of duty collection at the wharf, he said that the problem had been that when government tries to tighten things up to stamp out corruption, people were complaining that goods were becoming more expensive and that government should ease off.

With regards to a query about the difference between the National Development Co-operation (NDC) and the National Economic Development Council (NEDC), he said that the NEDC was established following the Economic Summit in Nuku'alofa last year, and its prime objective is to help with the development of the Private Sector. The National Development Cooperation was established to take care of government development programs, including the reconstructing of Nuku'alofa.

Shoreline valuation

'Akilisi Pohiva wanted to know when they were going to receive the report on the $26 million valuation of Shoreline Power.

The Minister of Finance said that he would table the valuation paper into the House in due course. He expressed his concern that once he presented the paper the debate in the House would shift completely away from the budget.

'Akilisi said that the Prime Minister promised in 2006 that "Waterhouse" was evaluating the value of Shoreline and once it was ready it would be presented to the House.

The Minister responded that his agreement with the PM was a different issue, but for him there was a procedure to follow before he could present the report to the House. There was no secret but there was a procedure to follow.

Clive Edwards continued with his concern over the taking over of local businesses by foreign investors. He said that the privatisation of government's enterprises was attracting foreign investors.

'Akilisi Pohiva supported Clive's view and pointed out that even with Royal Beer, it had foreign shareholders, and yet there were Tongan people who could have been shareholders.

The Minister of Finance said that the member's views always clashed with the normal working procedure. "We are very concerned about good governance, about the proper way of doing things. When we try and bend the procedure we break the governance, and that will lead to more upheaval so let's do things with the proper procedure."

Clive wanted to know whom the Minister was referring to. It was not him, it was 'Akilisi.

The Minister of Tourism said that Clive has no point, [principle]. While he was saying to keep things Tongan, businesses, he was at the same time among those who are pushing hard to let the country be controlled from overseas in a foreign manner. He is funny, his point clashes.

The Minister of Works queried Clive's view, because at one time he was saying that government should not engage in commercial enterprises and compete with the private sectors. Now he is saying let's be selective on what should be privatised.

Clive proposed for the government to borrow from overseas and buy back Shoreline, but don't sell Shoreline to a foreign interest.

The Deputy Prime Minister, Dr Viliami Tangi, reminded the House that no one stops them from buying shares in Leiola Duty Free. It had been advertised and anyone can buy a share in Leiola. He said that the government established Leiola to boost tourism because no one was capable of running duty tree enterprises a the time.

He said that they, the ministers, had been listening during the past few days. He warned PRs that to run a government is not an easy task, and their turn would come in 2010.

He said that one of the big achievements in this year's budget was the $6 million allocation for road construction. The first time ever, and the Minister of Finance should be commended. He reminded members that the increase in the budget was to improve the government's service to the people.

Shoreline loans

Teisina Fuko said that the Minister of Finance had said that Shoreline was valued at $US26M, but only $25 million pa'anga was allocated for the buying back of Shoreline. He wanted to know where the rest of the money would come from.

The Minister of Finance said that negotiation between government and Shoreline was still going over the amount that Shoreline owned government and government owed Shoreline. He said that the public enterprise that government had established to take over the running of the power generation could borrow to pay the balance.

Clive warned the House to be cautious while talking about buying back Shoreline, because Shoreline assets had been used as a collateral to secure the company's loan from China, so we could not say the government would pay only five or six million for Shoreline property while it was already tied up in a loan of a bigger amount. He said that it was the king who signed for the loan, and Tonga has no alternative but to repay the loan. He said that the Shoreline loan from China was between $30 and $40 million pa'anga.

Clive later back-tracked on his comment and said that the actual amount that was lent to Shoreline was $20 million, but then there were also separate payments which made it up to about $32 million.

The House was closed until 9.30 a.m. on June 12.