The Australian Government is providing an additional AUD$2 million dollars in aid to Tonga under the second phase of the Tonga Australia Performance Partnership Agreement, which covers the 2008-09 financial year.

This was jointly stated by the Prime Minister Hon Dr Feleti Sevele and the Australian High Commissioner HE Dr Bruce Hunt today when announcing the successful completion of the first phase of TAPPA, and the transfer of the first top up of $1.57 million to the Government of Tonga.

TAPPA was signed in Nuku'alofa on August 16, 2007, designed to assist the Government of Tonga in implementing essential Economic and Public Sector Reforms through the establishment of an agreed set of milestones by which Government performances were assessed.

The Prime Minister clarified the agreement had certain milestones to be achieved by Government and when achieved Australia would release to Tonga a grant of $1.57 million in the first year of 2007-08.

The milestones set and achieved included improving performances in the Inland Revenue Department in terms of revenue and auditing of tax regimes, collection of taxes that had been arrears for number of years and achieving closer and better relationship with the taxpayers.

The milestone achieved also included the establishment of Cabinet's Expenditure Review Committee chaired by the PM whose objective is to support Cabinet through its annual prioritisation of the budget and the quarterly reviews of departmental spending.

Public Service Improvement

The Prime Minister said under the second phase of TAPPA, the emphasis would be similar to the first phase but work would move much towards Public Service Improvement and procedures - hence the assessment processes related to the Head of Departments and the structural review of the Public Service.

Australia will provide the AUD$2 million aid to the Government upon successful completing and achieving the milestones set in the second phase.

"In the past there has been the feeling and understanding that once you are a public servant you are there for life, now we are moving towards a system whereby your continuation depends on your performance and that applies to everybody in the public service."

Australia's total aid to Tonga amounted to AUD$12 million in its 2007-08 overseas aid budget.