Niue Premier Hon. Toke Talagi

Spelling and all that

2010-03-20T22:49:00.003-11:00

I will be chastised. I have made too many mistakes in my last post.

My two finger typing does not work the keys that well especially when I am typing

So whats new in 2010

2010-03-20T22:15:00.003-11:00

Its been a while. I have been ill with pneumonia.
Much is happening particularly in Niue with our efforts to get a mobile gsm phone system, improving Internet services, finding out that IUSN has been using radio frequencies without license, which they have managed to get away with because we have been too poor and fearful they would cut Internet services to the island
The power that these people had over us in terms of Internet access was and continues.
This will change if I can help it.
The GSM service is being affected by wifi using the same bandwidth without license. Yes it is illegal but what can we do.
Watch this space I guess.
Someone has pointed out that the domain name is the biggest export earner for Niue!! That is a different angle I guess
Lets talk about what else is happening
Tourism is starting to take slow steps with two special envoys/consultants appointed by myself and Minister McCully to establish and drive the implementation of the Trevor hall Report.
Contrary to what you may have heard, I do actually support the report and believe that it will form a major part of our of our economic aspirations
So will fisheries and other resources we have .
Part of this process is communications and hence the focus on GSM mobiles and Internet services. But it also all the other key infrastructure such as the airport, wharf, power, water, roads and so on
Unless these are also put in place well and are dependable, reliable and work well, tourism and any other economic drivers will fail.
And frankly we must not allow these to fail because I am not a dependent person and I don't want to allow Niue to be beholden to anyone.
The budget is in process and I hope to pass it in the house before the end of June. It will be balanced because we don't have anything to support and deficit-not yet anyway
The budget is simple and its main functions are to pay public servants and pensions, make sure education and health services are supported well, run and manage government services with minimum waste and fuss, collect revenue.
Tax reforms The special report requested by me to PACTAF has been completed in draft form. We will review and decide which reforms will be introduced to the house to help boost revenues over the next year. I hope to have at least some reforms in place as part of the budget process.
Future AID relations with NZ.
The Halavaka 5 year agreement has been completed and we are looking at a new agreement to start the new financial year. Minister McCully and I agree to hold talks soon to finalise this
I am not interested in any increases in support from NZ and would like to try and live within our current arrangements and continue with the incentives.
I would also like to ensure that we have one reporting mechanism. NZ has often requested some special conditions but my argument is that we have reporting mechanisms in place by law and our accounts are scrutinised annually by AUDIT NZ so that should suffice. Extra reporting demanded by NZ seems superfluous and seems to indicate that our treasury regulations are not doing their job. This is a ridiculous notion.
I hope to have talks with NZ by end April and have an agreement in place before the budget is introduced to the house in June
Development and Investment Budget I have been trying to have this in place for some time but have not had the time to devote to it. I hope the Infrastructure Coordinator and Strategic Planner working with the SOG, HODs and External will be able to finalise this.
This is a very simple and basic matrix of projects funded by donors which we will and can use to develop the economy, support the community, and private sector. It will involve a annual budget of anything up to $20m-$30m which is a substantial amount.
It requires strategic prioritisation, consultation, coordination, and implementation plans. It links to the recurrent budget.
In both both , the strategic visions goals and objectives have been set with the Niue national Strategic Plan.
I will leave it there and will write more later
Happy reading folks

Reflections on 2009

2009-12-23T15:30:00.007-11:00

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!!

Xmas New Year best wishes and all that..

2009-12-23T11:20:00.002-11:00

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

Copenhagen

2009-12-22T23:16:00.002-11:00

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

New appointments projects and others

2009-12-08T20:42:00.002-11:00

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.

Niue Population

2009-12-04T13:08:00.015-11:00

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.

Why Tourism?

2009-12-01T22:57:00.004-11:00

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.

Jacks Canoe Fishing Competition

2009-11-30T20:45:00.003-11:00

I helped sponsor the main prize for this because I feel that we should encourage this type of traditional activity. It was successful in that a great deal of interest was generated especially with the young guns who have just started the art and skill of canoe fishing.
Jacks day was perfect with the organisers happy and the competitors-all 38 of them even happier.
Well done Jack and your team of workers for a very successful day
Main winner with a 28kg tuna was Muiaki Ricky Makani who just pipped Tuli Heka with his 17 kg effort.
Tolana Siataga, Sifisifi Mokalei also won some money for their efforts
Mona Ainuu organised a fagota shore gatherers event which was popular with the ladies and kids. Asosa Tohovaka I understand showed her skills and took out the main prize for this activity.
Jacks village benefitted from the $20 fees $780 plus I understand they also got value for the main prized fish being auctioned again for the VC coffers
Poi Kapaga helped Jack and Mona helped Moka with the competition.
Next year the prize money will be increased and possibally include 1,2,3 as the main drawcard
Details of main prize winners will be on the government website

Niue Youth and Employment

2009-11-27T15:26:00.003-11:00

For many years much of our focus on youth and training and jobs have been largely focused on the top 10-20% of our school leavers and youth. Many years ago there were two streams established at NHS with the second group being given more practical training in Agric etc.
Many parents and students felt stigmatised by this and felt that they had a right to be given the same educational opportunities as all other students.
Therefore I believe the vocational classes and curricula was dismantled and all students were streamed into similar classes.
However the difference still exists and matters have not improved much over the years.
It is very important to realise that not everyone is equal at school. Even the top students have marked preferences. Some do not like maths Physics etc or English and avoid these subjects.
This is shows that every student has a preferrence and will find boring any subject they are not interested in!!
What we do recognise now is that each student has talents which can help him find a job, business, trade, sports, art, etc
This government is looking for a solution for creating opportunities for these school leavers so they can contribute to our scociety in the best way they can using their talents
I think it also helps to realise that what used to be considered as dirty jobs are now sought after because people have realised that they have expertise we dont have. And the fact that we pay highly for this expertise is a good thing
On monday 30th November I will be convening a meeting with youth school leavers to discuss their future options and provide opportunities for them to find jobs in the short or long term. I am openning the dicussion to include government and private sectors business and hope to have mentoring arrangements for these students in the first week and then place them in the second week. I hope we can pay them a flat rate of $5/hour to do work and help develop business idaes etc.
If you are interested pls be at the Fale Fono foyer on Monday 9 am

Niue Economic prospects

2009-11-26T19:19:00.003-11:00

I have made very clear my strong and passionate drive and desire to develop and sound economic base for Niue with tourism and Fishing and the two principal drivers.
I see Niue as developing a portfolio of investment businesses which will help us generate revenues, business viability, commercial viability, support and maintain our basic infrastructure, pay public servants and welfare benefits, support our health and education services and increase our population via the increasing opportunities available to people wishing to live here.
I have been asked about what we are doing to increase population My simple answer has been to do the above.
The business portfolios include tourism in its many forms, fishing also in many forms, food security which is home consumption and feeding visiitors, nonu, vanilla, Trust Fund, Soverign assets such as airspace, domain name, and other ideas beinf investigated now.
I have been asked why it is that we have not developed a strong economy after 35 years of self government. I answer by suggesting that Niue is not alone in its battles with donors to agree to help fund economic developments
The worse example of lost opportunity and lack of progress has been the non expenditure on tourism accomodatoion over the past 6 years despite NZ agreeing to allocate $2m for this purpose. I can tell you now that we have given up on NZ funds and have agreed with Minister McCully only because he has made some promises of change.
Otherwise we should really be looking at borrowing funds to help us build our economy as we desire it at our pace and speedily.
To date nothing has happend so I am not hopeful with McCullys initial startegy. Because in the end we need to stop talikng and start building
I will write soon about my views on Wellington Officials. Suffice to say they may be diplomats but they dont know anything about building an economy at all.

New ways of doing business

2009-11-26T19:09:00.002-11:00

Over the past year it has become very obvious that emails have replaced phones and paper as a means of passing information quickly within and outside the Niue Public service-between departments, Ministers and the private sector.
It is an excellent medium if you comfortable with it and savvy, but many are having problems
This government prides itself in being open and trasnparent. The onlyt information that I would withold would be personal and commercailly sensitiv ones
As we progress into the future and with the introduction of this blog we will basically become more open to discussion and rationalising what we are doing.
I believe it is very imporatnt that we advise the public what we have done and why.
I hope you will all participate sensibily and openly in this page without being nasty and personal.
And you will also excuse my English spelling and grammar.
It is the idea and sharing that counts not whether a person can spell or use correct grammar syntax etc.