From the House by Pesi Fonua

Tonga Legislative Assembly, Minute No. 4 , Tuesday June 7, 2005

The Vava'u No. 1 People's Representative, Samiu Vaipulu, called on the Deputy Prime Minister, Hon Cecil Cocker, to resign over alleged illegal handling of the Missing Trust Fund in 1994.

While the Deputy Prime Minister was in a state of shock over the allegation, the House proceeded with what was to be its main agenda for the day, the electing of its staff. Once the staff were elected the House then settled down to do some real work, and the Minister of Finance presented his Budget Statement for 2005-06.

He said that during 2003-04 the national GDP went up by 1.6%. He estimated there was an economic growth of 2.5% in the last financial year and that the economy would grow by 2.9% for 2005-06, while inflation had dropped from around 12% to 8.7%.

Minister's house burns down

The Speaker offered condolences from the House for the Minister of Commerce, Hon. Fred Sevele, over the loss of his home, which was gutted by a fire the day before.

The Speaker said that top on the working agenda of the House for the day was the selection of the staff of the House. He called on the Minister of Finance and the Minister for Foreign Affairs to come forward and be the auditors of the election.

Call for Deputy PM's resignation

Samiu Vaipulu requested an opportunity to make a comment. He told the House that during the past two weeks he has been burdened by a thought that he wanted to reveal to the House.

He said that way in 2001 he was appointed as the chairman for a committee to investigate the status of the National Trust Fund from 1999 to 2001, firstly to establish if the handling of the Trust Fund at the time was legal, and secondly to establish how much money was left in the Trust Fund. He said that they discovered that the handling of the Trust Fund was illegal and it led to the forced retirement of two Cabinet Ministers. He said that during his investigation he discovered that the illegal handling of the Trust Fund started in 1994 and taking into consideration that two Cabinet Ministers had resigned he called on the Deputy Prime Minister, Hon. Cecil Cocker to also resign.

The call by the PR for the Deputy PM to resign surprised the House and the Minister for Forestry, the Hon. Sione Peauafi Haukinima, expressed his concern over the sensitivity of the issue raised. He called on the member to present a report to the House on his findings.

The Speaker reminded the PR that the Rules and Regulation of the House do not allow a member to personally attack other members, particularly if what he accused other members of had not been proven in a court of law.

The Deputy Prime Minister expressed his surprised over what Samiu Vaipulu had said. He said that he was the Minister of Finance in 1994 and that during that time, he physically went and deposited the Trust Fund with the Bank of America.

Election of Staff

The House proceeded with the task of electing its 18 staff from 65 applicants. There was a draw with 15 votes each for the two applicants for the position of Chief Clerk of the House between the current clerk, Fatai Pale and a new applicant, Tevita 'Ova. The Speaker had to cast his casting vote and he chose a new clerk, Tevita 'Ova.

The Staff of the House:

Chief Clerk - Tevita 'Ova

Deputy Clerk - Sione Tekiteki

Accountant- Pauliasi Kienga

Technical Officer - Sione Malekamu Palu

Sergeant at Arms - Mapafisi Veikune

TV and Radio Programmer - 'Teimani Taufa

TV Officer - Fatani Latu

Assistant Secretary to the Speaker - Fifita Holeva Tu'iha'angana

Assistant Secretary to the Committee - George Logan Vete

Liaison Officer - Elizabeth Hala'api'api

Eight Folio officers - Salote Tu'italhi Langi, Fatafehi Holani, Mafi Foukimoana Tupou, Sau'iafa Lokotui, Mele Kaveinga Fotu, Fapiola Foliaki, Ma'ume'a Ongosia, Mosiana Fisi'ipeau.

Librarian - Fataimoemanu Leki

Two Printers - Halahuni Manuopangai, Tau'aika Ta'ufo'ou

House Keeper - Sami Mafile'o

Security - Tevita Palu

Gardener - Simione Lilo

Tea Lady - Lose Tapuaka

Office Keeper - 'Akata Takapu.

Budget Statement 2005-06

After Lunch the Minister of Finance presented his Budget Statement and stated the government's vision in this year's budget - "to provide opportunities for all Tongans to achieve their individual aspirations."

He said that the Budget had six objectives -

- to complete the Tax Revenue Reform

- to upgrade the Education system

- to upgrade the Health Service

- to reduce crime rate

- to encourage the development of the Private Sector

- to upgrade the public service delivery.

He said that the total budget for 2005-06 amounted to $178 million. The highest allocation went to the Ministry of Finance $59.2

million, followed by the Ministry of Education with $26.5 million, then the Ministry of Health with $25.9 million.

The Minister said that during 2003-04 the national GDP went up by 1.6%. He estimated that during the 2004-05 financial year there was an economic growth of 2.5% and his estimate for the coming 2005-06 year for the economy to grow by 2.9%.

He said that in April inflation was recorded at 8.7%, a drop from the 10% to 12% inflation during the past year. He said that the price of mutton flaps had dropped.

He said that the National Foreign Reserve stood at $84 million, which was enough for four-months of imports.

To further stress his conviction that the Tongan economy was doing well, he said that under the UN Human Development Index for 2004, Tonga was rated No. 63, while Samoa was No. 75 and Fiji No. 81.

With regards to the Revenue Reform, the minister wanted to elaborate more on why there was a need for a Revenue Reform. He said that there is a big concern about youth unemployment and that was why there was a special attention on the development of vocational and technical training.

He said that his ministry had surveyed over 2000 businesses, and they found that only 80 businesses have a turn over of over one million and about two thirds of these businesses traded locally, but he said that Tongan businesses should look at developing goods and services to export overseas. He said that only then we would be able to take advantage of such Free Trade Agreements as PICTA.