It is sometimes difficult to figure out exactly what has or is happeing with our relations with NZ.
The contitutional is cemented by law in both parliamnets and by UN mandate. So that is hard to change without a great deal of persuading.
There a few non Niueans who advocate going back to the colonial days. I suspect because they prefer Palagis running things.
Who can blame them. They always used to have the inner ear!! and influence.
This is fiercely resisted by the young fuatas and those who have decided to live in Niue.
Referring back to the constitution it does say NZ will provide administrative and economic support. But this is not always clearly defined.
I thought we came closest with the Halavaka in 2004 where NZ agreed to a five year fix sum for budget support, investment and capacity support
The idea was to stablise the budget with the minimum guarentee and use the investment and capacity support funds (SPC) to build a viable and self sustaining economy.
I helped draft the document and thought what Premier Vivian and PPM Helen Clark was a good start towards developing Niues future.
So where did it go wrong.
Well I guess if you review where the money has been spent on you will realise that much of the investment funds and SCP were spent on Heta rebuilding and the hospital and public service building.
The balance was used to try and repaur and replace infrastructure and machines and equipment.
By 2008 a balance of about $4.5 was left for tourism etc.
Perhaps it is worth noting that in the above allocations, Niue has total control of the budget support funds. The lump $20m investment and annual $2m for SCP are controlled by Wellington.
In effect the balance has been earmarked for tourism since 2004 and nothing has happened.
Lot of talk, a consultancy report and nothing much else has happened.
I thought in 2008 we would be able to agree and start using the tourism funds. Banishing any thoughts of a community based tourism which NZ had rejected and just build more accomodation at the most suitable place andby those in the private sector taking the leading role.
In the end everything basically failed and I guess the failure has to be placed squarely at my feet. So why could we not agree??
I guess the answer lies in the change in strategy and use of Trevor Hall. Minister McCully and I agreed to get an independent consultant with some standing to review and advise the pathway ahead.
This is the plan we are following which hopefully will enable Niue to have more accomodation built, new management systems and new tourism promotions and marketing.
As I write we are finalisng he TOR for the marketing and promotions person as well as plans for tax reforms and a survey of the airport runway soundness.
It is hoped that we will be able to accelarate these developments in the new year.
For the current year and governments major achievements I list these things
1 Airport security, DME, RESA and terminal renovations and extensions completed and fully funded by China
2 Tax reforms which introduced NCT and income tax reductions. In the long turn and with more finetuning NCT will be Niues main revenue earner in the future. It will help capture more from visitors than has been possible in the past.
The tax chnages gave everyone a minimum $100 per fortnite increase in pay. This was a major coup and paves the way for future adjustments and depending on the NCT incomes may lead to further reductions in tax
I favour this way of handling pay because it keeps the costs constant without increase to the total budget.
Further tax reviews and adjustments are being planned next year. PFTAC has been requested to do a study and recommendations starting in end Jan 2010.
3 Budget discipline has been excellent and I must thank Cabinet for this as well as caucus. It has enabled us to manage our financial resources well and ensure we did the key things we needed to do. We also managed a small surplus in 2009
Pay people, operate the departments, collect revenues and reduce waste. Since December last year we have not had to seek advances from NZ as has been past practice. No loans either!
4 Stabilty and better coordination of projects management and new appointments to assist with this will help us make sharper decisions in future and save large amounts.
I think caucus and cabint must be given credit for this improvemnet in our ability to push and support sensible policies and initiatives.
There were other highlights but as a technocrat I am inclined to view these as tops
2009 was an excellent year for Niue. Marred only y our lack of progress with tourism accomodations.
The fisheries matter is also unresolved and without satisfaction as yet. I hope 2010 will chnage this.
Will our relations with Wellington officials improve? Unlikely if I am honest but miracles can happen!!
Wednesday, December 23, 2009
Xmas New Year best wishes and all that..
Well its been a long hard year for me. Just carrying on from the Forum Chair responsibilities which ended in Cairns in August.
In many respects we are really at the cross roads with respect to either having a meaningful future with strong economic base or remain as completely dependednt on NZ.
The Trevor Hall report at least dispels for some people the persistent and long held view that Niue does not have any future tourism prospects. The fact that Niue is a good if not excellent tourism destination.
I will enjoy the short break and hope you all will as well
Ma e tau Niue oti he motu mo e lalolagi katoa,
Kia Monuina e Kilisimati mo e tau foou kua haga atu ki ai
Ko e Atua ni ke foaki atu e tau malolo mo e tau monuina kia mutolu oti
Manatu ka inu ua fakaholo ka fakaholo ua inu
In many respects we are really at the cross roads with respect to either having a meaningful future with strong economic base or remain as completely dependednt on NZ.
The Trevor Hall report at least dispels for some people the persistent and long held view that Niue does not have any future tourism prospects. The fact that Niue is a good if not excellent tourism destination.
I will enjoy the short break and hope you all will as well
Ma e tau Niue oti he motu mo e lalolagi katoa,
Kia Monuina e Kilisimati mo e tau foou kua haga atu ki ai
Ko e Atua ni ke foaki atu e tau malolo mo e tau monuina kia mutolu oti
Manatu ka inu ua fakaholo ka fakaholo ua inu
Tuesday, December 22, 2009
Copenhagen
Well its all been heard and written and analysed.
Niue took the view that
1 We agreed with the sciences.
2 We agreed to the AOSIS position on climate change -less than 1.5 degree rise in temp and 450ppm of GHG emissions.
3 We also felt that there were so many proposals for individual countries finding common ground was never going to be easy
4 That the reason for the vaiations was due to the lack of desire to change their economic models to allow for any real change
5 The lifestyle protectnism decisions was too difficulut for each country to overcome
6 Current economic and financial crisis was too hard to overcome and created to much uncertaincy which would not allow countries to be bolder and more expansive
7 Too many self interest
8 In any case whatever we said did or not do the planet will respond as it has always done when it is threatened.
This is clearly manifested in what is currently happening.
The meeting was poorly managed and allowed to be diverted by too many side issues
Initially I did not feel I had to be there but in the end we did need to be there.
When you consider that this had been in planning over the last 2-3 years we could have been better organised at the meeting.
Sad really
Niue took the view that
1 We agreed with the sciences.
2 We agreed to the AOSIS position on climate change -less than 1.5 degree rise in temp and 450ppm of GHG emissions.
3 We also felt that there were so many proposals for individual countries finding common ground was never going to be easy
4 That the reason for the vaiations was due to the lack of desire to change their economic models to allow for any real change
5 The lifestyle protectnism decisions was too difficulut for each country to overcome
6 Current economic and financial crisis was too hard to overcome and created to much uncertaincy which would not allow countries to be bolder and more expansive
7 Too many self interest
8 In any case whatever we said did or not do the planet will respond as it has always done when it is threatened.
This is clearly manifested in what is currently happening.
The meeting was poorly managed and allowed to be diverted by too many side issues
Initially I did not feel I had to be there but in the end we did need to be there.
When you consider that this had been in planning over the last 2-3 years we could have been better organised at the meeting.
Sad really
Tuesday, December 8, 2009
New appointments projects and others
The new Infrastructure Coordinator appointed last month and arrived recently is William Peet. His role is to mold the infrastructure departments into a more cohesive unit with better management of key resources and machinery, equipment and manpower. This is part of the restructuring mooted a few years ago. William has extensive and wideranging experience in commercial businesses in NZ.
Charles Cooper Former Saatchi and Saatchi man has been appointed at special envoy for commercial affairs by cabinet. He will responsible for coordinating Niues tourism implementation plans based on Trevor Halls report but he also has a wideranging brief on transport and other tourism matters. He will report to the Premier
George Valiana should finally be appointed Manager of Bulk fuel soon. George has been an extremely capable and valuable manager and helped Niue manage its way out of the former Forum fuel crisis.
Trevor Wetmore has been appointed to assist in the short term when John Canny did not renew his contract. He will be here 4 months thanks to AUSAID and AVI. These Aussies dont muck about with getting good appointments quickly.
The Strategic Planner will hopefully be appointed soon. Wellington has taken over a year to get this done.
Trevor Hall report implementation will start with a airport and runway audit.
Review and reform of Revenue Tax regime. This was mooted sometime ago when the NCT was being finalised. This has been long overdue.
The new Project Management Unit has been working very well with Marke Siosikefu and Shield Palahetogia taking leading roles. The airport renovations, terminal extensions and hot house shades are the first projects they have been involved with and progress and reporting and accounting. More projects including the the EU Solar project and an environment alternative energy project will soon be added to the list.
More people will be seconded to this unit.
Charles Cooper Former Saatchi and Saatchi man has been appointed at special envoy for commercial affairs by cabinet. He will responsible for coordinating Niues tourism implementation plans based on Trevor Halls report but he also has a wideranging brief on transport and other tourism matters. He will report to the Premier
George Valiana should finally be appointed Manager of Bulk fuel soon. George has been an extremely capable and valuable manager and helped Niue manage its way out of the former Forum fuel crisis.
Trevor Wetmore has been appointed to assist in the short term when John Canny did not renew his contract. He will be here 4 months thanks to AUSAID and AVI. These Aussies dont muck about with getting good appointments quickly.
The Strategic Planner will hopefully be appointed soon. Wellington has taken over a year to get this done.
Trevor Hall report implementation will start with a airport and runway audit.
Review and reform of Revenue Tax regime. This was mooted sometime ago when the NCT was being finalised. This has been long overdue.
The new Project Management Unit has been working very well with Marke Siosikefu and Shield Palahetogia taking leading roles. The airport renovations, terminal extensions and hot house shades are the first projects they have been involved with and progress and reporting and accounting. More projects including the the EU Solar project and an environment alternative energy project will soon be added to the list.
More people will be seconded to this unit.
Friday, December 4, 2009
Niue Population
Much has been said about Niue and its population. Its a fixation for some people and has made interesting reading of numbers over the years.
The facts are that Niue has been losing its people to NZ and lately to Australia since the late 40s. The trend accelarated when the airport was opened in the 70s and has not abated since that time
The reasons are the same better opportunities for jobs and education, social options, better housing, better life generally.
That is not an unreasonable set of decisions made by our people and mirrors the urbanistion trends that occrred in NZ in the 70's 80's etc.
The idea that we can just reverse that trend is a tough ask, but it can be done as witnessed again by what has happend in the NZ regions over the past decade. Not that this is a simple correlation and tranfer of ideas and resources. Witness the booming tourism industry in the Cooks and the continuing trend of people leaving the Cooks is proof enough of the difference. But as I undertand it things are starting to change in the Cooks but slowly.
The fact is there is no magic bullet and hence the difficulties and challenges we continue to face.
I am often tempted to bite the bullet and just allow more people from elsewhere who wish to live in Niue to migrate here. That will simply boost numbers but probably not good for Taoga Niue in the long run. So I have hestitated as I believe we all have.
This hesitation is part of the reason why I have urged Niueans from the first day I took office to look to investing in Niue. The fact that the return to roots mission took place I would like to think came from that idea.
But the balance is very delicate and the trend of people leaving despite the improvements to life in Niue generally is numbers continuing to fall is concerning.
Other factors are starting to come into play as well.
Since the 90s the population dynamics in the villages have changed quite significantly. Many of the old people left and this has created a huge vacuum in the villages core structures.
In many respects the family dynamics and village life appears to have lost its basic core and base. People are adjusting and have generally made this up but the younger patus are taking on far more responsibilities much earlier than before in the management of village affairs.
People who remain are trying very hard to maintain the village traditions and values but as the numbers have dropped the chemistry has changed and the costs have increased.
It has been difficult to try and change our village lifestyle without a clear creditable alternative. Villages strive to do things the way we have always done, but at huge cost to themselves.
Unit costs have increased significantly per person per village.
So in terms of a Niuean pupolation living on Niue, things continue to look bad indeed.
Niueans do not want to live in their country of birth and origin. They prefer to live in a country somewhere else!!
But there are others who do wish to come live in Niue. The fact that Tuvaluans now make up a very large part of people living in Vaiea is simple proof of that.
This shows very clearly that if Niue wishes to build its population numbers it can do so quite easily and effectively with people from other countries wishing to come live here.
It will also be clear that if Niueans do not wish to return as the economy in tourism starts building then we will need to look for labour elsewhere. This is also already happening with nurses from other countries now working at the hospital.
This is a very interesting debate and worthy of others views as well.
Will it impact on our Taoga? Yes it will. Will it take long? No it will not.
There are no simple answers.
Whatever we do we must ensure that a balance is maintained.
The facts are that Niue has been losing its people to NZ and lately to Australia since the late 40s. The trend accelarated when the airport was opened in the 70s and has not abated since that time
The reasons are the same better opportunities for jobs and education, social options, better housing, better life generally.
That is not an unreasonable set of decisions made by our people and mirrors the urbanistion trends that occrred in NZ in the 70's 80's etc.
The idea that we can just reverse that trend is a tough ask, but it can be done as witnessed again by what has happend in the NZ regions over the past decade. Not that this is a simple correlation and tranfer of ideas and resources. Witness the booming tourism industry in the Cooks and the continuing trend of people leaving the Cooks is proof enough of the difference. But as I undertand it things are starting to change in the Cooks but slowly.
The fact is there is no magic bullet and hence the difficulties and challenges we continue to face.
I am often tempted to bite the bullet and just allow more people from elsewhere who wish to live in Niue to migrate here. That will simply boost numbers but probably not good for Taoga Niue in the long run. So I have hestitated as I believe we all have.
This hesitation is part of the reason why I have urged Niueans from the first day I took office to look to investing in Niue. The fact that the return to roots mission took place I would like to think came from that idea.
But the balance is very delicate and the trend of people leaving despite the improvements to life in Niue generally is numbers continuing to fall is concerning.
Other factors are starting to come into play as well.
Since the 90s the population dynamics in the villages have changed quite significantly. Many of the old people left and this has created a huge vacuum in the villages core structures.
In many respects the family dynamics and village life appears to have lost its basic core and base. People are adjusting and have generally made this up but the younger patus are taking on far more responsibilities much earlier than before in the management of village affairs.
People who remain are trying very hard to maintain the village traditions and values but as the numbers have dropped the chemistry has changed and the costs have increased.
It has been difficult to try and change our village lifestyle without a clear creditable alternative. Villages strive to do things the way we have always done, but at huge cost to themselves.
Unit costs have increased significantly per person per village.
So in terms of a Niuean pupolation living on Niue, things continue to look bad indeed.
Niueans do not want to live in their country of birth and origin. They prefer to live in a country somewhere else!!
But there are others who do wish to come live in Niue. The fact that Tuvaluans now make up a very large part of people living in Vaiea is simple proof of that.
This shows very clearly that if Niue wishes to build its population numbers it can do so quite easily and effectively with people from other countries wishing to come live here.
It will also be clear that if Niueans do not wish to return as the economy in tourism starts building then we will need to look for labour elsewhere. This is also already happening with nurses from other countries now working at the hospital.
This is a very interesting debate and worthy of others views as well.
Will it impact on our Taoga? Yes it will. Will it take long? No it will not.
There are no simple answers.
Whatever we do we must ensure that a balance is maintained.
Tuesday, December 1, 2009
Why Tourism?
Over the years many people have assumed and probably correctly given the time and information available and funding by donors that Agriculture is the backbone of our economy. We spent considerable time and effort and money with simala, banana, taro, passionfruit, limes, and many other agricultural schemes which have not always been successful if success is measured in terms of continuity today. In terms if longevity, taro has outlasted all else but thats probably more a function of its traditional importance rather than the fact that growers are making money from it.
Now its vanilla and nonu and a great deal of study-UN consultant visted, reviewed, analysed and then recommended we plant vanilla.
Noni was something which we agreed with Reef to have a JV with.
I am an agriculturalist by profession and training and I am convinced given proper management and marketting, both crops will do well.
However over the past year or so I have come to the realisation that despite all our efforts in Agric/Hort nothing has worked. I am still allowing time for Vanilla and nonu to come right but we shall see.
So to tourism and fish. Fish is really a no brainer when you look at the map and realise what a big fish farm we have and own!! Just a matter of finding out the best way to maximise our returns from it. We will figure it out and we will have overseas partners to help one way or another. Research is being done at present and there are tow approaches being looked at-farming with a JV partner such as Reef, or lease long term to a country-this can also be used to leverage loans etc.
Tourism is however the best short and long term economic driver we have at present. There are four things we must have which will help
Guarenteed long term air service with good capacity to grow in total seats and frequency of services.
Good accomodation capacity which we must develop
Good marketting and promotions
Good infrastructure
The problems we have at present includes some infrastructure limitations and lack of accomodation.
It has been my focus to try and build the accomodation and ensure infrastructue is available, and reliable. We need better and cheaper power supply, GSM mobile phones, excellent internet, good reliable water, good airport and port and a reliable workforce available and accessable land, willing Niuean partners etc.
I think we can all see where we are short at present in power, port, and telecoms.
Accomodation is langusihing because we are unable to get access to capital/funds and some good business links. Land is also often cited as being difficult but we can overcome these I believe
Trevor Hall has written an excellent business report and we have endorsed it. But there are also a few mistakes which we will correct as we go along. I must say here that endorsing a report does not mean that we have agreed without question everything that has been written in the report. There will still be some hard negotiations that will take place with certain sections of the report. In my discussions with McCully when he asked the question as to acceptance of recommendations without any questions on our part, my simple answer is that I have never in my private sector life agreed without question any initial proposal!!!
The report appears to seek a perfect business environment which must be in place before anything could or would happen.
What I have said is that we may not have a perfect business environment but we have sufficient available business opportunities available with land which we can improve on.
There is no perfect system anywhere including NZ. But if we had no business environment then Matavai would not have been built and Namukulu Motels would not have happened and sold either.
Tourism can be very quickly mobilised if we have the financial resources to start building. What I have found is that NZ has not shared the same vision we have and my own belief at present is that if the Trevor Hall plans do not work we would have lost another 2 years with dealings with NZ officials making a total of 8 years.
We need a plan B, which is what I am working on at present. There is a degree of scepticism when I talk about a plan B but I do not beileve we should remain one dimensional at all in our aspirations.
Time will tell.
The business plan for tourism will take advantage of our whales, diving, crystal clear waters, $$NZD, short distnace from NZ and Aussie, nice/great people, Taoga Niue etc
It will also enable us to grow for local consumption and not bother too much about exporting and the costs and risks involved.
The areas I believe people should look to invest in is in accomodation, tours, services, auxilliary businesses etc. Start small and study and analyse what you want to do. Dont rush into big plans
Land for all of us is free but make sure family are not a problem.
I can see us build numbers up from the current 4000/year to 10,000 and then 20,000 reasonably quickly-3-5 yrs if we devote the resources to it.
It should be private sector driven and managed. Governments role will be to ensure an enabling environment and support.
Benefits to government will include jobs, increase revenues and more viability in business opportunities.
Now its vanilla and nonu and a great deal of study-UN consultant visted, reviewed, analysed and then recommended we plant vanilla.
Noni was something which we agreed with Reef to have a JV with.
I am an agriculturalist by profession and training and I am convinced given proper management and marketting, both crops will do well.
However over the past year or so I have come to the realisation that despite all our efforts in Agric/Hort nothing has worked. I am still allowing time for Vanilla and nonu to come right but we shall see.
So to tourism and fish. Fish is really a no brainer when you look at the map and realise what a big fish farm we have and own!! Just a matter of finding out the best way to maximise our returns from it. We will figure it out and we will have overseas partners to help one way or another. Research is being done at present and there are tow approaches being looked at-farming with a JV partner such as Reef, or lease long term to a country-this can also be used to leverage loans etc.
Tourism is however the best short and long term economic driver we have at present. There are four things we must have which will help
Guarenteed long term air service with good capacity to grow in total seats and frequency of services.
Good accomodation capacity which we must develop
Good marketting and promotions
Good infrastructure
The problems we have at present includes some infrastructure limitations and lack of accomodation.
It has been my focus to try and build the accomodation and ensure infrastructue is available, and reliable. We need better and cheaper power supply, GSM mobile phones, excellent internet, good reliable water, good airport and port and a reliable workforce available and accessable land, willing Niuean partners etc.
I think we can all see where we are short at present in power, port, and telecoms.
Accomodation is langusihing because we are unable to get access to capital/funds and some good business links. Land is also often cited as being difficult but we can overcome these I believe
Trevor Hall has written an excellent business report and we have endorsed it. But there are also a few mistakes which we will correct as we go along. I must say here that endorsing a report does not mean that we have agreed without question everything that has been written in the report. There will still be some hard negotiations that will take place with certain sections of the report. In my discussions with McCully when he asked the question as to acceptance of recommendations without any questions on our part, my simple answer is that I have never in my private sector life agreed without question any initial proposal!!!
The report appears to seek a perfect business environment which must be in place before anything could or would happen.
What I have said is that we may not have a perfect business environment but we have sufficient available business opportunities available with land which we can improve on.
There is no perfect system anywhere including NZ. But if we had no business environment then Matavai would not have been built and Namukulu Motels would not have happened and sold either.
Tourism can be very quickly mobilised if we have the financial resources to start building. What I have found is that NZ has not shared the same vision we have and my own belief at present is that if the Trevor Hall plans do not work we would have lost another 2 years with dealings with NZ officials making a total of 8 years.
We need a plan B, which is what I am working on at present. There is a degree of scepticism when I talk about a plan B but I do not beileve we should remain one dimensional at all in our aspirations.
Time will tell.
The business plan for tourism will take advantage of our whales, diving, crystal clear waters, $$NZD, short distnace from NZ and Aussie, nice/great people, Taoga Niue etc
It will also enable us to grow for local consumption and not bother too much about exporting and the costs and risks involved.
The areas I believe people should look to invest in is in accomodation, tours, services, auxilliary businesses etc. Start small and study and analyse what you want to do. Dont rush into big plans
Land for all of us is free but make sure family are not a problem.
I can see us build numbers up from the current 4000/year to 10,000 and then 20,000 reasonably quickly-3-5 yrs if we devote the resources to it.
It should be private sector driven and managed. Governments role will be to ensure an enabling environment and support.
Benefits to government will include jobs, increase revenues and more viability in business opportunities.
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