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Home > Failed Hawaiian farm leaves Tonga with USD$233,120 debt

Failed Hawaiian farm leaves Tonga with USD$233,120 debt [1]

Nuku'alofa, Tonga

Wednesday, July 20, 2005 - 17:45.  Updated on Friday, May 9, 2014 - 20:29.

Tonga will wind up its disastrous Hawaiian experiment, after calling on parliament to pay USD$233,120 in debts from a failed farming project, following a million dollar investment by the king in Hawaiian land in 1998.



From the House, translation and summary by Pesi Fonua

Tonga Legislative Assembly, Minute No. 15, Monday June 27, 2005.

- A Cabinet Decision for the House to form an elected committee to draft the daily, weekly and monthly working agenda of the House.

- the Minister of Health supported the Cabinet Decision because he said numerous working days in the House were wasted by PRs repeating the same points over and over again.

- The disastrous Hawaiian Experiment, and the dissolving of the Tonga Corporation that looked after the project and ran up debts of USD$233,120.



Committee to set agenda

A letter from government was read. It was Cabinet decision No. 607 of June 17, 2005.

It suggested the formation of a elected committee to oversee the daily, weekly and monthly working agenda of the House.

The Committee was to be chaired by the Speaker with two members from the Ministers, the Nobles' Representatives and the People's Representatives.

The committee was to meet daily.

The Speaker supported the letter of motion from government, a move away from the present practice with him deciding on the working agenda of the House.

A Tongatapu People's Representative, Clive Edwards, said that the motion would disrupt the regulation of the House. He said that there were too many cooks, too many chiefs, but no one to direct the proceedings of the House.

A Vava'u People's Representative, Samiu Vaipulu, said that the motion from government was unconstitutional, because the proceedings of the House was a matter for the House to decide, and it was unconstitutional for government to tell the House what to do. He that if they should proceed with the government's motion, they had to amend the constitution first.

The Prime Minister, HRH Prince 'Ulukalala Lavaka Ata expressed his surprise with the reaction because it was a common practice in democratic countries, the difference was that in those parliament, the ruling party took full control, whereas the motion from government gave the three tables a voice in deciding the agenda of the House.

He reminded Clive Edwards that he went with the Minister of Finance to New Zealand and Australia to see how their parliamentary committees and the drafting of their working agendas were done.

A Tongatapu People's Representative 'Isileli Pulu expressed his concern that with such a committee to decide on the agenda of the House, that petitions and motions for impeachment would most definitely not be allowed to be tabled into the House. He favoured for the drafting of the agenda to remain with the Speaker.

Wasting time

The Minister of Health, Hon. Dr Viliami Tangi, said that the Cabinet had been looking at how to reform the proceedings of the House. He said that on a number of days they had been just wasting time in the House, because there was nothing in the agenda on those days that had anything of value to the House.

'Isileli Pulu disagreed with the Minister and said that if that was the case then they should all go home.

A Tongatapu People's Representative, 'Akilisi Pohiva said that the Minister was arrogant and disrespectful of the people.

The Minister of Health said that they were just trying to improve the work of the House. He said that they had heard the same message from 'Akilisi, day in and day out.

A Ha'apai People's Representative, 'Uliti Uata, moved for the motion to be postponed for debate later, giving them time to think about it. He also commented that Ministers should concentrate on trying to improve the standard of work in their own ministries first, before they tried to interfere with the working proceedings of the House.

The Speaker suggested for the Ministers, the Nobles and the People's Representatives to elect two representatives each for the proposed committee.

Clive Edwards objected that the letter had not been debated and approved by the House. He said that the letter from government was not a motion and it was unconstitutional for the House to action the letter from Cabinet.

The Speaker said for the proceedings to continue with the Budget and then return to the letter from government later. He said that the Higher Salary Revision Committee would be in the House in the afternoon to clarify the proposed public servants salary revision.

The Speaker dissolved the legislature and the Chairman of the Whole House Committee took his chair and the proceedings continued with Vote No. 14 of the Ministry of Finance.

Tonga Corporation debts

'Isileli Pulu proposed not to release $480,000 to the Tonga Corporation for the payment of debts.

The Minister of Finance, Hon. Siosiua 'Utoikamanu, gave a break down of the debt of the Tonga Corporation TC. He said that TC total debt amounted to USD$233,120, with the breakdown of debts in US dollars being,

Kemehameha School - $14,833.66

Honolulu Board of Water Supply - $11.10

Law firm - $12,586.80

Property Tax - $1,803.94

Internal Revenue Service - $14,701.25

Debt to former manager - $127,828.74

Debt to Tonga Consul in Hawaii - $46,189.

[debt balance of $15,165 not explained]

He said that the total amount come to USD$233,120.

The Minister said that if the debts were not paid the TC and the government would be taken to court and the piece of land, 'Atiu Lane, which was valued at $1 million pa'anga would be repossessed.

He said that the work for the project in Hawaii began in 1998 until 2002 as an experiment and there were expenses, including $3.5 million from the Trust Fund. He said that in 2002 TC wanted USA$2 million for market research, which they projected would produce an income of $250,000 per annum. The project ceased to operate in 2002 because government could not come up with the $2 million required. Meanwhile the TC owed the Bishop Estate $1.4 million, but after re-negotiation it was reduced to $15,000.

The final solution with TC was to pay its debts and dissolve the company.

'Isileli Pulu said he would withdraw his motion if the Minister of Finance promised that the Tonga Corporation and its debts would not come up again in the House.

The Minister replied that he could not promise because he did not know if he would be there next year.

(The motion was withdrawn).

'Akilisi proposed for government to sell the land in Honolulu, Apia and Pago Pago and to use that money to pay the debts.

Public servants salary revision

After the lunch break the Higher Salary Review Committee was in the House to clarify the proposed public servants salary revision.

Vote No. 14 was passed 23-2. Against were 'Akilisi Pohiva and 'Isileli Pulu.

Vote No. 15, Inland Revenue Commission. It was passed 23-0.

Vote No. 16, the Statistic Department. It was passed 23-0.

Vote No. 17, the Public Service Commission. It was passed 22-0.

Vote No. 18, Auditor Department.

'Akilisi Pohiva queried the credibility of the government's Auditor General, who also has his own private practice.
 

Form the House [2]
by Pesi Fonua [3]
Parliament [4]

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