From the House, Minute No. 14, Tuesday June 22.

- Member questions how heads of departments can sign working contracts on July 1, when their salaries have yet to be confirmed.

- Member believes that there should be a general wage rise, instead of raising the top and leaving the bottom behind.

- The Minister of Police said that the total amount needed for a general wage rise was about $10 million, and if they waited for that amount, they would be waiting until the end of this century.

The Speaker dissolved the Legislative Assembly and called on Noble Nuku to Chair the Whole House Committee.

The House proceeded to debate the $1.3 million corporatisation program of government.

Minister of Finance distributed to the House an updated report on the agricultural land project in Hawai'i.

Dr Feleti Sevele thanked the Minister for the report on the Hawai'i project, and he suggested to government that when they chose directors to the four enterprises to be corporatised, it should not include government ministers and their friends, but people who could really make these enterprises work.

Sunia Fili Asked the Minister of Finance for more details on the $2.7 million for Public Sector Reform.

Minister of Finance said the salaries for all the vacant posts amounted to $2.7 million. Last year government established the Higher Salary Review Committee to review the salaries of the upper echelon of the public service. The accumulated salaries from the vacant posts of $2.7 million was awaiting a decision by government on the recommendation of the Higher Salary Review Committee. If the recommendation was not acceptable the $2.7 million would be distributed back to the various ministries, and if they decided to give heads of departments a salary rise then the $2.7 million would be spent on a partial increase.

Sunia Fili wanted to know what happened to the $2 million allocated to be spent during the current financial year. He wondered if it could be used for a salary rise.

Minister of Finance said that the $2 million had not been used and it could not be used for a salary rise unless it was approved by the ADB.

'Isileli Pulu wanted to know if heads of departments would have to sign working contracts on July 1, and how were they going to do that if their salaries had yet to be confirmed.

The Minister of Finance said that that was an issue he had to work on with the Public Service Commission.

Minister of Police said that a committee, which he chairs, was pushing for a salary rise and to confirm the salaries of Heads of Departments soon, and if it was approved by cabinet then things would move forward, and if not then we will anchor here for a while. He said that if cabinet approved for it to move forward then there must be funds for it, and a loan had been made to meet that need.

Fineasi Funaki moved for the House not to make a rushed decision on the allocation, but to leave it aside for when government (Cabinet) finalised its decision. He said that a lot of money was involved and they should do it properly.

Dr Feleti Sevele asked for more time to debate on the issue, because not only about the salary rise but its impact on the country and its economy.

Chairman called for votes, and the motion was rejected 9-8. For it were Dr Feleti Sevele. 'Isileli Pulu, Trevor Guttenbeil, 'Etuate Lavulavu, Fineasi Funaki, Sunia Fili, Noble Fakatulolo, and Noble Vaha'i.

Fineasi Funaki believed that a salary rise would help revitalise the economy. When people had money in it would revive the economy.

Dr Feleti Sevele did not think it was wise for the top echelon of the civil service to be given a salary rise at this point of time. He said that there should be a wage rise for the lower end of the civil service. He believed that the salary of the Heads of Departments would go up to $40,000 per annum, and without a doubt the Cabinet Ministers would not be happy for their salaries to remain at $20,000 per annum. He said that if the House allowed this to happen it would be very hard to stop and it would lead the country to a very difficult situation.

The Minister of Police said that the member was using poisonous words and he wanted him to explain what he meant that a salary rise for the top echelon of the public service would put the country in a danger zone.

Dr Feleti Sevele said that the Tongan economy at the moment was kept afloat by remittances and foreign aid. He said that an increase in the salaries of head of departments to $40,000 plus all the perks of a vehicles, director's fees in board meetings, accommodation in government housing would put them well above the rest of the community.

The Minister of Police said that if the member questioned the income of Ministers from sources other than his basic salary, then was it right for a member of parliament, a businessman to earn a very high salary from his business and at the same time try to increase his salary in the House.

Dr Feleti Sevele replied that he never supported any salary rise. He also told the House that he exempted himself from the last salary rise of the House.

The Minister of Justice made a point that civil servants work for what they earn.

Dr Feleti Sevele pleaded with the minister to sit down and let him finish his speech.

The Chairman told the Minister to sit down.

There was a "you sit down first" fight between the Minister of Justice and Feleti Sevele, which ended in a draw when the Speaker closed the House for lunch.

When the House reconvened after the lunch break, the Clerk of the House read a letter from a Korean, Kim, Kyeung Pae, who offered to build a desalination plant for Tonga and was seeking the support of the House.

The Deputy Prime Minister supported the project which will cost US$450 million.

Minister of Land wanted to know if the House will guarantee the US$350 million loan.

The Deputy Prime Minister said that all it required was the support of government and the people of Tonga.

The Minister of Justice expressed his suspicion over this project because it was an enormous sum, and he was wondering where the US$350 million would come from.

Governor of Ha'apai pointed out that there was no signature on the letter they were discussing.

The Speaker - called for vote on whether the House should endorse the $350 million desalination project of the Korean.

It was passed 11-4. Against were the Minister of Justice, the Minister of Land, Governor of Ha'apai and Fineasi Funaki.

The Legislature dissolved and the Chairman of the Whole House Committee, Noble Nuku took his seat.

Dr Feleti Sevele said that there was no need for a salary rise for Civil Servants in Level One, the people who needed a salary rise were the lower level of the public servants.

The Minister of Police wanted to know why the Member's view was directly opposite to the experts in the Higher Salaries Revision Committee.

Dr Feleti Sevele said that there were too many experts, but what was needed now was a sensible decision. He asked the Minister of Finance if the salaries of Ministers were revised by the Higher Salaries Revision Committee.

The Minister of Financereplied yes.

The Minister of Police ...— stressed the importance of bringing in experts from outside to review the salaries.

Dr Feleti Sevele ...— sometimes we think that these assessors are independent experts, but somehow we usually find out that they are friends of those who selected them.

He also said that the allocation of $2.7 million for salary rise meant that government would have to borrow locally and therefore deprive the Private Sector of capital for the development.

Sunia Fili ...— believed that there should be a general wage rise, instead of raising the top and leaving the bottom behind. He wondered if the Minister of Finance could get some more money.

Minister of Finance ...— said that the $2.7 million was all the government can get at the moment.

The Minister of Police ...— said that the total amount needed for a general wage rise was about $10 million, and if they waited until government had $10 million, they would be waiting until the end of this century. The decision then was to establish the Higher Salary Review Committee to carry out research and submit their recommendation, and then decide what to do. If Cabinet approved the recommendation of the Committee, there are three phases of actions to be taken. First step was to give a 10% or 15% rise and so on until the 30% rise was attained.

He denounced a comment that was made about that a wage rise at the top would cause an upheaval in the Civil Service. He said that the objective of this salary rise was for the betterment of the whole country, and not just for a few.

Vote No. 15 of the Inland Revenue was passed 13-0.

Vote No. 16 of the Statistic Department was passed 13-0