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

Tonga Legislative Assembly, Minute No. 15, Monday June 30, 2008.

Highlights:

- The PRs agreed in a meeting with the Minister of Finance and the Minister of Justice, for government to go ahead and secure the $26 million to pay Shoreline, but the payment will be made after it is approved by the House.

- PRs 'Akilisi Pohiva, 'Uliti Uata, Teisina Fuka, and 'Etuate Lavalava were against an amendment to the Westpac Bank of Tonga Act to make it possible for government to sell its shares in the bank to raise the $26 million for Shoreline.

- The Minister of Finance was appalled at how the PRs abruptly changed their minds.

- Noble Nuku told 'Akilisi Pohiva that he did not know how to debate.

- The Deputy Prime Minister said that 'Uliti Uata was making up a story that he met an ADB team, which told him that they were willing to finance the Power Board, instead of Shoreline taking over the power generation utility.

- The Minister of Finance told 'Akilisi Pohiva that the figures he used in the House to support his arguments were unreliable and could not be proven, 'Akilisi agreed they were not right but asked why wasn't the Minister giving him the correct figures?

Roll Call. The clerk told the Speaker that Noble Tu'ipelehake was coming late and, he presumed, members who did not answer their call were coming late.

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

The Minister of Finance reported on the outcome of a meeting between himself, the Minister of Justice, and PRs 'Akilisi Pohiva, 'Isileli Pulu, 'Uliti Uata, Teisina Fuko and 'Etuate Lavalava. The purpose of the meeting was to find a solution to an impasse when PRs change their mind after they agreed for government to buy back the electricity power utility from Shoreline.

Th Minister of Finance said that there was an agreement for the $26 million, allocated under the Vote of the Ministry of Finance and Planning, not to be spent to buy back the power unit unless it was authorised by parliament.

Lost in translation

The chairman thanked the Minister and said they would proceed with the Bill to Amend the Management of Revenue Collection Act 2008.

'Etuate Lavulavu led the charge and questioned the authority of the Commissioner of Revenue.

Chairman reminded the member that the amendment was to correct the English translation of a Tongan word.

'Etuate suggested that they should change the Tongan word and leave the English translation as it was.

About an hour later the Chairman asked the Minister of Justice to change the Tongan word and left the English translation as it was. The other option was to think about it, and they would come back to it later.

Westpac Bank of Tonga Act

The Chairman said they would move on to the next Bill, to Amend the Westpac Bank of Tonga Act.

The Minister of Justice explained that the amendment was for Clause 4 and 8, and the objective was to enable government to sell its shares in Westpac, allowing the banking business to be run entirely by private businesses.

'Akilisi said he did not like the idea and neither did "The People". He said that the bank was one business that government invested in that was profitable.

He said that the sole purpose of this move was to get money to pay Shoreline. He said that a lot of government properties had been sold to please the king. He said he heard that they were going to sell the Royal Residence at Auckland, 'Atalanga.

The Prime Minister said there was no truth in 'Akilisi's comment about pleasing the king. They had been talking for years about why they wanted to buy back the power utility from Shoreline, and they had already agreed that they have to buy back the power.

The PM told 'Akilisi that 'Atalanga was a personal property of the late Queen Salote, and was not a government property. He said that they should speak the truth and stop being down-hearted and depressed.

'Akilisi insisted that there was no good reason why Tonga should sell its shares in Westpac.

The PM reminded 'Akilisi that the reason was because he ['Akilisi] and others wanted the government to buy back the power utility. He reminded 'Akilisi what Clive, the former chairman of the Tonga Electric Power Board, had said about how the board went backrupt, and if it was not for Shoreline "we don't know where we would have ended up".

Stalled

After this exchange 'Akilisi could not progress very much with his debate because of his two points of argument; firstly, that there was no good reason to pay Shoreline $26 million, and the other one based on the petition he had presented claiming that Tongasat owed government money and they should pay up.

The PM said he had already answered the "why" question, and further simplified it, and on the second point about Tongasat he reminded 'Akilisi that they had already dealt with that one and voted on it, and there was no need to repeat themselves.

'Akilisi said that they should stop the selling of shares in Westpac.

Poor debate

Noble Nuku, did not think that the way 'Akilisi carried on was in accordance with the regulation of the House. He thought it was a very poor style of debating. If he wanted to stop the selling of shares he should provide facts and reasons and convince the other members. The other approach was for him to move a motion so that they could vote on and reach a decision. With the way he was carried on they would not get anywhere.

The Minister of Justice reminded the member that they had already agreed that the money would not be spent until it was approved by the House.

The People Believe

'Akilisi insisted that he was right and that the people believe him.

The Minister of Finance, said the issue was not that the people believe him, the main issue was that he should tell the people the truth and be honest because that would preserve Tonga.

'Akilisi asked the Minister to tell him one false statement that he had made, because the people were listening.

The Minister of Finance said that 'Akilisi could not support any of the figures that he had presented to the House.

'Akilisi said that the minister had got the information and he should tell them.

No sense

'Uliti Uata went back and rehashed why PRs demanded the return of the power utility from Shoreline, and he emphasised that it was to be returned and not to be bought back.

'Uliti made a long speech, basically to support his point that government should not buy back Shoreline.

The Minister of Finance told 'Uliti that his argument did not make any sense, but come back so that they could do what is just and right.

'Uliti called for the Bill to be withdrawn, and when a decision would be made on the $26 million, the Bill should be reintroduced at the same time.

The Minister of Finance reminded the House about his report on their meeting with the same PRs on Saturday, when it was agreed for government to go ahead and try to secure funds which could be used once approved by the House. He said that since then PRs had changed their minds and were saying different things.

He proposed that they should move on.

Climatic Change

After lunch the clerk read a letter inviting a member to a meeting of the Asian Pacific Parliamentary Union APPU on Climatic change.

The Deputy PM, Dr Viliami Tangi, wondered if Tonga was still a member of the APPU.

The Speaker said he would check but the fact they sent an invitation indicated that they must be still a member.

'Uliti expressed concern over the expense of sending someone.

Noble Tu'ivakano, pointed out that the APPU would pay for most of the expenses.

The Speaker by-passed the APPU invitation and called for votes on an invitation for a Commonwealth Parliamentary Association CPA meeting. It was carried 19-0.

The Speaker said that he would travel with the Niua's PR to the CPA meeting.

The Speaker called for votes on the APPU invitation. It was carried 20-0. He nominated the PR for 'Eua to go.l

The Legislature was dissolved into Committee.

Before midnight

The Chairman reminded the House that they had to pass the Bill for the Formation of a Commission on Constitutional and Electoral Reform before mid-night.

'Uliti agreed with the Minister of Finance about the decision they made on Saturday, but he proposed for the Bill to Amend the Westpac Bank Act to be withheld until then. He argued that his proposal was for the benefit of the people.

The Governor of Ha'apai reminded 'Uliti, that that was why they were in the House, for the welfare of the people, and that was why they had to make the right decision and move on.

'Uliti reminded the House about what Clive Edwards told the House about the bankrupt situation that the Power Board got into and how the ADB did not want to lend any more money because of an unpaid loan. He said they met an ADB team that expressed their disappointment that government did not approach them for more money. He said he had still got records of their meeting, which was also attended by a Tongan who worked at the ADB office in Vanuatu.

Dr Viliami Tangi, did not believe what 'Uliti was talking about. Firstly, that was not what ADB told the Tongan government, and secondly, why had he not challenged Clive on that issue, since Clive, the chairman of the Board at the time said that ADB was not willing to lend any money to the Board.

He reckoned that 'Uliti was fibbing.

Noble Tangipa asked the member to present the report of their meeting to the House.

'Uliti said he could but could showed how the government hadbeen messing around.

Dislike of free enterprise

Teisina Fuko expressed his concern about the principal of privatisation, and how government had privatised some of its business interests. The selling of its shares in Westpac for example, he was against it. He did not think it was the right approach for Tonga.

'Aklisi agreed with Teisina, and expressed his dislike with free enterprise, he thought that government should more control over businesses for the benefit of the people.

Teisina said that since they had already passed the Electricity Power Act 2007, what would happen if they did not buy the power utility back from Shoreline.

The Minister of Finance explained that if government would not buy, the Act would come into force and we would have to make a concession agreement with Shoreline and on that agreement they would decide the price of electricity.

Teisina said if government would not buy back the utility then Shoreline could keep it running under the 2007 Electricity Power Act. Square one, he said.

The chairman called for votes. For it were 15.

The voting was disrupted by 'Akilisi who said that the parliament was one-sided.

The Ministers of Police and Justice explained to 'Akilisi about the Constitution, good governance and accountability.

The Chairman called for votes again, and it was carried, 14-5. Against were 'Akilisi, 'Etuate, 'Uliti, Teisina and Sione 'Iloa.

Revenue Collection Act

Chairman called on the Minister of Finance to explain the Amendment to the Revenue Collection Act.

The Minister of Justice explained that the amendment set out the procedure of how to lodge a complaint about tax collection.

Dealing with tax offenders

'Akilisi said that the process of writing letters and setting new deadlines for payment was a waste of time, they should just take them to court.

The Minister of Police told 'Akilisi that they had started hearing the cases of offenders relating to the 16/11 riots. He reminded 'Akilisi that there are procedures and things take times.

'Akilisi said that if a business's record was not up to date, it should be given seven days, if it was still not ready, then 14. If it was still not ready then it should be taken to court.

The Minister of Finance said that dealing with tax offenders was always with open mind and good intention. He said that it was necessary to give the offender ample time to lodge his or her complaint, and to give the department ample time to carry out a proper research.

The Chairman called for votes, and the Bill to amend the Revenue Collection Act 2002 was carried, 17-4. Against were 'Akilisi, 'Etuate, 'Uliti and Teisina.

Forgot

The Chairman said for the proceeding to continue with the Bill to amend the Income Tax Act 2007.

The Minister of Justice said that the amendment was because last year they removed Clause 8 from the Act, but then it was realise that other clauses of the Act should be amended and the bill was to make those amendments.

'Akilisi wanted to know what the income tax collection had been like during the past three years under the existing legislation.

The Chairman reminded 'Akilisi that the Act was passed only last year.

'Akilisi said that their main concern was about tax collection, and asked has there been an increase or decrease in tax arrears.

The Chairman called on members to put their coats on. The Committee dissolved into Legislature and the Speaker took his chair, and announced for the House to close until 6 pm in the evening.