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

Tonga Legislative Assembly, Minute No. 3, Tuesday, June 9 2009.
Highlights:

- Speaker appoints the members of the Law and Finance Committees.

- PM disputes a claim that he disagreed with the Minister of Fisheries over sea cucumber.

- Teisina Fuko calls for an increase of sea cucumber quota by 100 tonnes.

- 'Uliti is accused of conflict of interest by Sunia Fili and the Deputy Prime Minister, but the Chairman argues that a member trying to advance his business interest in the House is not a conflict of interest.

- 'Akilisi Pohiva proposes government use aid money to build factories to be run by Chinese and for government to grow flower gardens on vacant lots in Nuku'alofa because there are enough buildings.

- Concern over commercial banks offering low interest rates on deposits, but high interest rates on loans.

- Sunia Fili and 'Etuate Lavulavu oppose a proposed 10% salary rise for civil servants, but Clive Edwards is for it.

- The Public Service Association calls for stoppage of the proposed 10% salary rise for Civil Servants.

The Governor of Ha'apai, Noble Malupo led the House in prayer.

The Clerk made the roll call. He said that Noble Tangipa was away sick, and those who did not answer their call were possibly coming late.

The Speaker told the House the Rules and Regulation of the Proceeding of the House that they had been waiting for was left to go to the Law Committee. He called for votes for the Regulation to go to the Law Committee.

It was carried 21-0.

Committees

The Speaker then called out the names of members for the House's two standing committees, the Finance and the Law Committees.

Members of the Law Committee are -

Deputy Prime Minister, Dr Viliami Tangi
Minister for Sports and Youth, Noble Tu'ivakano
Minister for Communication and the Acting Minister of Justice, 'Eseta Fusitu'a
Noble Fielakepa
Noble Ma'afu Tuku'i'aulahi
Noble Tu'iha'ateiho
Noble Lasike
'Isileli Pulu
Clive Edwards
Samiu Vaipulu
Sione Teisina Fuko
Sunia Fili.

Members of the Finance Committee are -
Minister of Finance, Afu'alo Matoto
Minister of Works, Noble Nuku
Minister of Labour, Lisiate 'Akolo
Minister for Tourism, Fineasi Funaki
Noble Vaha'i
Noble Luani
Noble Tu'iha'angana
Noble Tangipa
'Akilisi Pohiva
'Uliti Uata
'Etuate Lavulavu
Sione Feingatau 'Iloa.

The Speaker called for votes on the members of the two sub-committees.

It was carried 25-0.

Constitutional bill

The Speaker called on the Law Committee to look at Bill No. 6, a bill to amend the Constitution. He called for vote for Bill No. 6 to go to the Law Committee.

It was carried 21-0.

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

Sea cucumbers

The Chairman pleaded with members to leave the issue of sea cucumber alone. He pointed out though that sea cucumber issue had highlighted a sensitive issue that a Cabinet Minister had disagreed with the Prime Minister.

The Prime Minister asked the Chairman to correct his remark, and that there was no disagreement between him and the Minister of Agriculture and Fisheries.

The Chairman said that what had been said in the House was that he agreed to lift the restriction on the issuing of licenses to export sea cucumber, but the Minister for Fisheries refused to do so. He apologised if he was wrong but that was a perception held by the public. He again pleaded for members not to talk about sea cucumber.

Teisina Fuko pleaded with the Minister of Fisheries to increase the annual quota for sea cucumber by 100 tonnes from 200 tonnes. He said that this was a plea by the public. He wondered why the Minister was so strict on his quota.

The Minister corrected the members that the plea was by the members and not by the public. He said that the petition that members presented to the king was just by the members and not the public.

Teisina insisted that they were representing other people.

Budget

The Chairman called on the members to leave the sea cucumber and return to Paper No. 1 of the Budget that they were discussing.

'Isileli Pulu made a general comment about the government total loan in relation to the country's GDP.

'Etuate Lavulavu, wanted to know the amount of aid funding that had to be returned to donors because government could not spent it; how much aid funding was still to be spent; and how much more were they expecting to get in the new financial year.

'Akilisi Pohiva made a general remark about the government's privatisation program. He wanted to know if the Minister for Transport consulted with private ship owners before he went and bought an old ferry from Fiji to replacing the MV Olovaha which had engine problems.

Racial attitudes

He went on to say that development in Tonga was not moving because the people had the wrong attitude to work, and that they were not thrifty. He said he noticed that "half-castes - like 'Uliti Uata, he is very tight with his money and that is the right attitude."

Teisina Fuko did not think it was the right thing to do to teach Tongans to be so tight like the Chinese, because Tongans would then lose their caring attitude to help each other.

Prince Tu'ipelehake said that Chinese are not tight. He reminded members that China build roads, Tonga High School and other facilities.

'Akilisi wanted to know the 14 businesses which are restricted only for Tongans.

The Minister of Commerce, said that retailing and wholesaling are only for Tongan, and that Chinese who hold Tongan passports are eligible for retailing and wholesaling.

'Akilisi said that something should be done about it because some Chinese-Tongans are bringing in Chinese from China to work in their shops. He said that a Chinaman Sama had seven shops.

The Chairman told 'Akilisi that he should raise the issue when they debated the vote of the Ministry for Foreign Affairs and Immigration.

Spent on other projects

Teisina Fuko wanted to know the Balance of Payment figures for 2008-09 financial year.

The Minister of Finance said that if the member looked at Paper One of his budget it stated that most of the time the Balance of Payment is Plus Positive, and if it drops it is only very slightly, but most of the time is on the plus side. He said that the situation at the moment there is a surplus of $20 million.

With regards to 'Etuate Lavulavu question about unused aid money, the minister there is an amount of maybe about half a million, but usually left over fund from one aid project is spent on other projects.

He said that aid funds flowed in if the implementation of aid projects were carried out speedily and on time.

Interest rates

'Uliti Uata expressed his concern over the interest rates offered by commercial banks. He said that interest on deposits had dropped from 12.5% to 6.5% while at the same time interest on loans remained at over 12%.

The Minister of Finance said that the latest information, the interest rate on house loans had dropped to 11% and business loans to 12%.

'Uliti Uata said that the commercial banks had the freedom to set their own interest rates, and for some of their favourite clients they would offer 6% on deposits, then on loans 10% or 7.5% or 8.75%. He suggested for government to do something about the interest rates.

Private Sector

There was a statement on the budget about government assisting the Private Sector, but he said that, unfortunately, government was doing the opposite and they had become the "Enemy No. 1 of the Private Sector."

He said he started a domestic airline, then government moved in and started up their own, then years later they both died, and now the domestic air service is run by a foreign company. He felt that shipping would go the same way. He said that government had just spent about $600,000 to buy a ferry from Fiji to operate here, meanwhile there are ferries here. He wondered how government expected the private sector to become stronger.

He said that it was unfortunate that he was in shipping but he thought he should let them know his feelings. He felt that government was just wearing his capability to run shipping down to the point where his business died.

He felt that government should stand by its statement on the budget, to assist the private sector.

Conflict of interest

Sunia Fili reminded the Chairman that according to the House's regulation there was a conflict of interest in what the member was talking about.

The chairman did not think there was a conflict of interest. His interpretation that it would be a conflict of interest if he was trying to get money from the House. He told 'Uliti to continue.

The Deputy Prime Minister expressed his surprise with the Chairman's interpretation. He said that 'Uliti had a business interest and that is what the people would hear being discussed in the House.

The Chairman elaborated his interpretation of the Regulation, that there will be conflict of interest if a member promotes his personal interest to gain money from the House. He said that the law does not stop a member from doing business.

The Deputy PM said that the concern of Sunia Fili was that 'Uliti was promoting his personal interest, and he was wasting their time.

'Uliti did not think he was promoting his personal interest, and he thought that it was an unwise comment that was made by the Deputy Prime Minister. He was upset.

"You have never done anything, excepting being paid with taxpayers' money, and how dare you to say silly things like that here!" he told the Deputy PM.

The Chairman called on the member to sit down.

Factories

Teisina Fuko was looking at any industry that the House could propose for government to implement and suggested that they should get school leavers to enrol in technical schools and then once they had learned skills they could get employment overseas and send money back to Tonga.

'Akilisi Pohiva, however, thought he had a better idea, and that was to secure aid funds, which they could use for the manufacturing of products for export. He suggested getting the Chinese away from running fale koloas to work in factories, leaving the retailing and the wholesaling for the Tongans.

Discourage rebuilding

He did not think there was any more need to build restaurants and houses for rent; he did not think they would be able to generate foreign earnings and government should discourage people from building all these buildings. Instead, he suggested they should grow flower gardens in those empty spaces to make the town look beautiful. "We can build beautiful buildings but people from overseas [already] know what beautiful buildings look like."

The Minister of Works reminded the member that these business people were rebuilding their premises that were destroyed during the 16/11 riot, they wanted to restore the beauty of Nuku'alofa. As for 'Akilisi's proposal for government to use aid money to build factories, he did not think it was a good idea to get government involved in business.

The Minister of Finance appreciated 'Akilisi's concern but said that the reason why our efforts and a lot of money had been diverted to the reconstruction of Nuku'alofa was because of the destruction of the capital.

"If it was not for that we would not have wasted our money aid time on it!", he said.

The Chairman said that the debate on the budget Paper No. 1 was completed, and they would move on to Paper No. 2.

Salary rise

Sunia Fili expressed his concern over the proposed salary rise of the civil servants to be in line with the rise in the price of goods. He said that the rise would further widen the gap between the rich and the poor. He proposed for the salary rise to be reduced from 10% to 5% and the other 5% - or its equivalent of $3.5 million - to be disbursed direct to the public.

Clive Edwards wanted to know if the 10% salary rise would be for all the civil servants, and if members of parliament were included. He supported the 10% salary rise as an economic stimulus package.

The Minister of Finance said that the 10% rise was for all civil servants, including pensioners, excepting for Heads of Departments who would be given only a 5% rise. Members of parliaments were not included.

'Etuate Lavulavu told the House that 48,000 workers in the private sector would not benefit from this 10% salary rise.

PSA

Sunia Fili said that a letter from the Secretary of the Public Service Association that has been distributed to members, calling for the stoppage of the 10% rise, instead send teachers to schools, and assist the growers and the fishermen who could not repay their loans to the banks.

The Chairman called for the Committee to dissolved into Legislature and the Acting Speaker took his chair.

'Etuate Lavulavu requested for the Finance Committee to meet and discuss issues that had been raised in the budget and to look at the state of the banking services.

The Minister of Communication proposed that before the Finance Committee meets there should be a clear agenda.

'Uliti Uata proposed to be top of the agenda was the Banks then the Budget.

The Minister of Finance reminded the House that the concerns that had been expressed about the banking service had been monitored by government and they were working on them, but to try and intervene to help those who could not repay their loans, he said that they should not interfere with the lending policy of the bank because the priority was for the banks to get their money back.

The House was closed until 10 am Thursday, June 11.