Reflections on 2009

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!!