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

Tonga Legislative Assembly, Minute No. 15, Monday 29 June 2009.

Highlights:

- A letter from the Finance Committee with proposed new salary scales for elected members and staff of the House.

- The Deputy PM, Hon. Dr Viliami Tangi, queries why elected members' salaries were higher than was recommended under Peter Salway's report.

- Noble Lasike complains that he still has not been issued with a license to export Sea Cucumber. He moved a motion/resolution for the House to order the Minister of Fisheries to issue licenses, increase the quota by 200 tonnes and extend the season by three months.

- PR 'Akilisi Pohiva goes back on his word that the people would be happy if they knew that all members of the House (and not just the Cabinet Ministers) earned salaries that were stipulated by Peter Salway. 'Akilisi now supports the proposal for elected members to earn more than the amount proposed by Salway.

Roll Call

The Clerk told the Speaker that Noble Luani and Noble Tangipa were on leave of absence and the Minister of Lands was on a trip overseas and the rest of the members, he believed, were coming late.

The Speaker who had just returned from overseas thanked the Acting Speaker and the Chairman of the Whole House Committee for looking after the affairs of the House while he was away. He told the House that the outcome of his trip was that there would be a big foreign aid to re-equip the House.

Salway salary report

He called on the Clerk to read a letter from the Chairman of the Finance Committee.

The letter from the Chairman stated that the Finance Committee had studied the report of Salway relating to the salaries of the elected members and the staff of the House. The letter stated that the committee approved the adding together of their basic salaries and their weekly allowances.

The salaries of the members:
Speaker $65,000;
Chairman of the whole House Committee $60,000;
Other members $55,000.

The committee proposed to be added on to the salaries of the members were their Relocation Allowances and a Working Fund, which should not be taxed.

For committee meeting members would be paid $50 an hour, and staff $30 an hour.

For the staff, combine their basic salaries and their weekly allowances then top it up with another 10% and that would be their annual salaries.

The Speaker called for votes. It was carried 9-0.

The Minister of Works moved for the matter to be tabled into Committee for debate.

The Speaker called for votes. It was carried 5-0.

The Speaker said that there was a Motion/Resolution No. 5 by 'Uliti Uata. He was not too sure what the Motion was about, but it was supposed to be presented to the Finance Committee first before it came to the House. He said there were also Private Bills that had to be presented to the Law Committee first.

Conflict of interest

Noble Lasike said that the Minister of Agriculture and Fisheries agreed to issue new licenses to export Sea Cucumber and he had been around to his office, but no one knew anything about it. He then verbally presented a Motion/Resolution for the House to increase the quota on the export of Sea Cucumber by 200 tonnes and to extend the season by three months to December.

The Minister of Agriculture and Fisheries reminded the member of what he said that night that they had to make wise decision based on the law that was passed by the House. They just could not give away licenses to just anyone. He said that it would be a conflict of interest if the House passed the Motion/Resolution of the member.

'Ulliti Uata supported the move for the House to approve the issuing of more licenses, then leave it for the Minister to figure out how to deal with it.

The Minister for Labour, Commerce and Industries did not think it was right for the House to tell the Minister of Fisheries what to do.

The Minister of Works, Hon. Nuku, thought that they were wasting time. The noble had been down to the office for a license and he was given an answer. The Minister had asked for time to have a proper look into the matter and they should give him a chance. He did not think it was proper to table the Sea Cucumber issue into committee for debate. He reminded the House that they returned for one thing and that was to look at the salaries of the elected members.

Salaries of members

The Speaker dissolved the Legislature into Committee and the Chairman took his chair.

The Deputy Prime Minister, Hon. Dr Viliami Tangi, reminded the House that their meeting was supposed to be a fast one because they were not supposed to be at work. But following the approval for the salaries of Cabinet Minister to be in line with Peter Salway's proposal, no more no less, the other members had wanted theirs to be as it was proposed by Peter Salway. The Deputy Prime Minister, however, noticed that that was not the case, because what the Finance Committee now proposed was actually more than was proposed by Salway.

The Minister of Finance explained the salary scale that was proposed by Peter Salway:
Speaker $56,000
Chairman $48,500
Members $45,000.

He said that there were a number of other proposals from the Finance Committee, including the removal of the 20% income tax on allowances and to increase the salary of the Speaker to be just below the Prime Minister, as it was in New Zealand, but at the end the committee's salary scale for members was:
Speaker $65,000
Chairman $60,000
Members $55,000.

PR Clive Edwards suggested that they should accept the figures that were presented by the committee. He said that they had to take into consideration, increase in taxes, inflation and an increase in the cost of living.

No add-ons for Ministers

The Deputy Prime Minister apologized if it appeared that he was denying them any privileges, but he stressed that that was why he favoured the principle of bringing in an independent body to access their salary to avoid this kind of situation. 'Isileli Pulu had been arguing for years for a fair system for setting the salaries of members of Parliament. He reminded the House that the salary scale for Cabinet Ministers that was approved by the House the week before was based entirely on the proposal of an independent assessor, and not one seniti extra was added on.

He pointed out that the salary of the Prime Minister was taxed heavily as was recommended by Peter Salway, but we were told today that the reason for the increase in other members salaries was to offset the tax on member's salaries, and he said he could not understand the logic. The salary scale that had been presented by the finance committee today was very different from what was proposed by Peter Salway.

Supports increase

'Akilisi Pohiva said he supported the presentation of the Minister of Finance, the Chairman of the Finance Committee. He wanted to know if the reasoning of the Deputy Prime Minister was the same with that of the Minister of Finance.

'Uliti Uata suggested that they should stick with Salway's proposed salary scale.

The Minister for Tourism, Hon. Fineasi Funaki, was a member of the Finance Committee that had met since the last sitting of the House. He reminded the House that the purpose for the meeting of the Finance Committee was to address a question that was raised by 'Akilisi.

The concern was that the House salaries were not all in accordance with what was proposed by Salway

He said that in the meeting instead of just agreeing to Salway's proposed salary scale, members threw in various figures. He stressed that the position of the Minister of Finance as the Chairman was simply to present to the House what was discussed and agreed at the meeting.

The Minister for Tourism moved for elected members to be paid under the scale that was recommended by Peter Salway, just as they had approved for the Cabinet Ministers to be paid under Peter Salway's proposed salary scale.

Remove tax

The Speaker Noble Tu'ilakepa said that they could stay with Salway's salary scale if they removed the 20% income tax on allowances.

The Chairman called for vote on a motion by Noble Lasike for the salary of members to remain as presented by the Finance Committee: Speaker $65,000, Chairman $60,000, and members $55,000. In addition were rent, transport allowances, constituency and location allowances.

It was rejected 8-5. For it were Sione Feingatau 'Iloa, Noble Lasike, Noble Tu'iha'ateiho, Noble Ma'afu Tuku'i'aulahi, and Noble Tu'ilakepa.

Before they proceeded with voting there was some concern about the salary of the Clerk and the staff of the House.

Income tax

Noble Tu'ilakepa asked the Minister of Finance to clarify the proposed salary of the Clerk $38,000 plus a 10% increase. He wanted to know if he would be taxed 20%.

The Minister said definitely he would be taxed, the same as elected members, but the tax deduction would be carried out by the tax department.

The Chairman called for votes on the report from the Finance Committee on the salaries of elected members:
Speaker $65,000
Chairman $60,000
Members $55,000

In addition to the salaries of members from the outer islands, were relocation allowances, and constituency allowances, which will be tax free. Committee's fee will be $50 per hour for MPs and $30 per hour for staff.

The staff salaries will be their basic salary plus weekly allowances and add onto it another 10% and that will be their annual salary. It was passed 10-2. Against were 'Uliti Uata and Noble Lasike.

The Committee dissolved into Legislature and the Speaker took his Chair.

He called for votes on the new salary scale for elected member and the staff of the House. It was carried 9-2. Against were 'Uliti Uata and Noble Lasike.

The House was closed until 9.30 am July 14.