political reviews • poly n e s i a 239 them. In 1999 the Waitangi Tribunal eral of Mâoridom’s strongest advo- upheld the claim by Mâori to the cates for the entrenchment of the radio waves. In its report it strongly treaty in a constitution attended and criticized the Crown for failing to presented practical proposals for respond to repeated warnings from advancing debate on the constitution. Mâori, the courts, and the Privy A very wide range of views were pre- Council that denying Mâori access to sented, and, predictably, there was no a significant role in radio, television, consensus. However, there was sup- and communications would be port for the establishment of two extremely damaging for the Mâori constitutional commissions, one for language. The Crown is obliged under Mâori and one for non-Mâori. Fol- the Treaty of Waitangi and its own lowing the conference the prime min- legislation to protect the Mâori lan- ister commented that she did not guage. In March the government consider there was any compelling agreed to sell to Mâori, at a 5 percent demand to do anything. Although her discount, a parcel of the 3g spectrum comments were disappointing, they (needed for the application of new did signal some progress toward offi- generation cellphones and data trans- cial recognition of the true status of fer technology). They continued to Mâori in Aotearoa/ New Zealand. refuse to allocate to Mâori any of the m argaret mutu 2g spectrum needed for mobile tele- phone services, claiming it had all been allocated. The New Zealand N i u e Mâori Council has lost its cases against the Crown in the High Court Serious threats to Premier Sani Laka- and the Court of Appeal over the tani’s political and personal health allocations of the radio spectrum and occurred during his first eighteen is now taking the matter back to the months in office. In August 1999 he Privy Council. was hospitalized in Auckland and Mâori have maintained for some subsequently underwent a double time now that the only way they will bypass heart operation. Lakatani’s be treated fairly in their own country health problems may have been com- is if there are constitutional changes. plicated by stress over his plans to The previous government forbade any introduce a new air service, which discussion on this issue. In April the was to have been known as Coral Air. new government and the Institute for While Lakatani survived his hospital Policy Studies at Victoria University ordeal, the Coral Air venture was not of Wellington hosted a conference so fortunate. entitled Building a Constitution. New The purpose of the arrangement Zealand has no written constitution. with Coral Air was to generate addi- The only document that qualifies for tional tourist revenue for Niue, as the that status is the Treaty of Waitangi. island is virtually tourist-free most of Although the conference was by invi- the time, and the larger share of its tation only, and was attended mainly accommodation properties are usually by parliamentarians, the judiciary, the empty. The Coral Air project was crit- legal profession, and academics, sev- icized by an independent group of 240 the contemporary pacific • spr ing 2001 consultants hired to evaluate the pro- it seemed as though the government— ject by the New Zealand government, the island’s first political party admin- which then proved unwilling to assist istration—would also be Niue’s first Niue with financial support for the to lose office on an assembly motion scheme. The airline was to have had of no confidence. several aircraft and a staff of eleven The initial source of discontent pilots and copilots. With the entire with Lakatani appears to have been financial risk guaranteed by the Niue the commitment to Coral Air. Prior to government, the plan for the airline the vote, Lakatani indicated somewhat was described by the consultants as ironically that he would call a new “imprudent and reckless.” Ultimately election rather than govern with a both the Niue government and Coral 10–10 “hung Parliament”—the result Air accused one another of failing to that the party itself had inflicted on meet contractual commitments, and Lakatani’s predecessor, Frank Lui, the entire matter has been placed prior to the 1996 election. In the before the courts. It seems unlikely event, however, the no-confidence that any arrangement with Coral Air vote, taken on 17 December 1999, will contribute to the rejuvenation of found the Niue People’s Party deserte d Niue’s tourist industry, which seems by the independents who had origi- to thrive only when South Pacific nally given it their support, and the regional conferences happen to be result was precisely the 10–10 out- held on the island. Indeed, the best come against which Lakatani had that the Niue government can now warned. hope for from its involvement with The vote itself proved somewhat Coral Air is that the airline’s threat to chaotic, with some confusion about sue for $20 million—more or less the the voting procedure and a decision island’s total annual budget—as com- by elected npp Speaker Tama Posi- pensation for an alleged breach of mani forbidding debate, leaving the agreement and for lost business reve- grounds for the no-confidence motion nue wi l l also fail to get off the grou n d . at least formally undisclosed. Follow- Some members of the Niue Assem- ing the vote, not only was there no bly were doubtful from the outset prime ministerial resignation, but a about the government’s plans for statement was made looking toward Coral Air. Their concerns began with a number of major projects, including the payment of a loan from the gov- a n z$50 million golf resort and con- ernment to the airline. As a result, in struction of a series of wind genera- late 1999, with the premier still recu- tors for electricity supply. perating in an Auckland hospital, a Afterward, independent assembly group of assembly members, includ- members unsuccessfully filed for a ing an associate minister, began judicial review of the assembly proce- maneuvering to replace him. dure for the vote. This was followed When it took office in early 1999, by a walkout of eleven members, pre- the Niue People’s Party (n p p) held a venting further assembly business majority of 14 to 6 in the Assembly from being undertaken. The numbers through support from a group of demonstrated that a majority of mem- independents. By December, however, bers was now in opposition to the political reviews • poly n e s i a 241

Lakatani government, leaving it ment in November 1999. Lakatani unable to pass legislation or, unless had been invited with the rest of his circumstances change, to enact a bud- cabinet to Wellington for talks about get. A new motion of no confidence, Niue’s social and economic problems. filed by former minister of finance The agenda included the future of Terry Coe, was not accepted by the Niue’s constitutional ties to New Zea- Speaker, whose own rulings have also land, the need for better air services, now become a subject of controversy. Niue’s alleged involvement in offshore Opposition members of the Assembly banking fraud, and continuing levels now want the Speaker to be replaced, of New Zealand financial aid. The on the grounds of political bias and New Zealand government appears to because of a series of decisions support several “reform” measures, restricting members’ questions, including the establishment of a Niue motions, and assembly debate. The Trust Fund to assist with financial departure of the eleven members was management, introduction of a goods in some ways therefore an expression and services tax to replace personal of no confidence in the Speaker and and company taxation, and a long- his rulings, as well as in Lakatani and term national strategic development his government. plan (of which, however, there have Accordingly, Niue’s own year-2000 in the past been several, all of them problem proved to be a minority gov- hopeful, none of them effective) ernment, moreover, one facing a sub- involving greater support for the stantial deficit as well as a somewhat private sector. weary and unsympathetic larger part- The talks between Niuean and New ner, New Zealand. Reductions contin- Zealand officials built on a New Zea- ued in New Zealand aid—with a fur- land review of its development assis- ther drop of n z$25 0 ,00 0 in budgetary tance to Niue, published as Develop- assistance in 1999—and in the Niue ing a Sustainable Private Sector. The population. One study claims that by report criticized successive Niue gov- 2003 the number of residents will ernments for failing to adopt eco- have dropped to 1300, a decline of nomic reforms to reduce the size of about 100–150 each year. While the the public sector, stimulate private Assembly contemplates votes of no- businesses, and introduce new finan- confidence against the government, cial management systems. It went on Niue’s residents, it seems, continue— to identify Niue’s main problems as by leaving—to display their own lack loss of population, an excessively large of confidence in the island’s future and dominant public sector (and a pro s p e c t s . correspondingly weak private sector), The loss of support in the Assem- and awkward land tenure issues. bly could not have come at a worse Attention was also drawn to the fail- time for Lakatani. It occurred just ure of the Niue-Tuvalu immigration prior to his departure for Wellington program, begun in 1997, which has for discussions with new Minister of led to only a handful of Tuvalu fami- Foreign Affairs Phil Goff, appointed lies arriving, all of them living in one following the election in New Zealand village, Vaiea. of a Labour-Alliance coalition govern- Th e Niue governm e n t ’ s payments to 242 the contemporary pacific • spr ing 2001

Coral Air have also become a source financial support. A 1991 review rec- of concern for New Zealand. The ommended that the present arrange- funds provided for Coral Air were in ments for New Zealand citizenship contrast to the cabinet’s reluctance to for Niueans be retained, but suggested assist the island’s top hotel, the Mata- that a concept of “Niuean identity” vai Resort, which has now become could be developed as a possible first insolvent, notwithstanding the govern- step toward Niuean citizenship. In me n t ’ s substantial prior investment in addition to the citizenship issue, the the property, in which it holds a 51- government’s Constitution Review percent share. Committee is considering the question Some New Zealand officials, of control over Niue’s external affairs. unhappy with the absence of progress Its report is due to be presented dur- toward financial self-sufficiency, want ing 2000, first to the Assembly, and to review the pivotal Constitution Act then to the joint Niue–New Zealand 1974, which commits New Zealand consultative group. to providing ongoing support for Tie s with New Zealand were bo u n d Niue. If this were to be done, there to be affected by the change of gov- would appear to be only a limited ernment there. The election of a new number of available political status Labour-Alliance left-of-center admin- options: full independence (likely to istration has introduced a new set of be resisted by Niue and by most faces for Niue’s politicians to deal Niueans); continuation of the present with. Whether there will be changes status, self-government in free associ- of policy, however, is another matter. ation, perhaps with reduced financial Not surprisingly, Lakatani prefers an support from New Zealand; and rein- end to New Zealand’s recent practice tegration into New Zealand. The last of reducing budgetary aid by would lead to abolition of the Niue nz$250,000 each year. There are even Assembly and the cabinet, and their hopes of a reimbursement for previ- replacement by a local government ous reductions, totaling nz$1.25 mil- administration of some kind—an lion, with the funding going toward unappealing prospect for Niue’s politi- a 10 percent cost-of-living allowance cians. The various options are to be for the island’s 430 public servants. explored by a joint consultative group Niue’s ties to New Zealand are still composed of officials from Niue and its most important—not only because New Zealand. The New Zealand of the aid received from New Zealand, three-person team includes the direc- or the access made possible by Niue- tor of the Foreign Ministry’s South ans’ possession of New Zealand citi- Pacific Division, an official from its zenship, but because of the ongoing legal division, and a Treasury official. constitutional relationship that exists While some New Zealand officials between them. Premier Lakatani’s may be contemplating weaker links to plans to establish ties with China, for Niue as a way of saving money, Niue- instance, provoked a response from ans can be expected to be vigilant then minister of foreign affairs Don about safeguarding current constitu- McKinnon that Niue would need to tional relationships guaranteeing citi- consult with New Zealand before zenship and at least a measure of establishing links with China or political reviews • poly n e s i a 243 indeed any other country. Although United States, has led to the establish- constitutionally correct, it is difficult ment of the Lord Liverpool University to understand why New Zealand George Washington School of Medi- should have been in any way con- cine on Niue. The university, which is cerned about a widening of Niue’s not affiliated with any other similarly international contacts. New Zealand named institution, is similar to other has its own ties with China—one of such entities set up on Caribbean its major trading partners—and any islands. Niue’s reputation as a safe assistance that could be provided by and secure environment, politically China would in some way take pres- stable and free from international sure off New Zealand as Niue’s main conflict, seems to have attracted the donor country. Niue has also been organizers to it. While it was expected seeking aid from Taiwan and South that about fifty students would attend Korea. The possibility of the island the first-year medical course, con- gaining aid from both Taiwan and tributing to Niue’s economy and, no China was in itself, however, some- doubt, to its overall standard of med- what ambitious. ical care, when the university opened Despite uncertainty about the in May 2000 there were only about future direction of the Niue–New fifteen students. Two places have been Zealand relationship, preparations set aside for Niuean graduates with a have begun for centennial celebrations BA or BSc degree. The medical school commemorating the connection. Niue is projecting a combined student and was proclaimed a British protectorate teacher population of between six in 1900 and on 11 June 1901 it was hundred and a thousand people over formally annexed to what was then the next five years—a high prop o rt i o n the Dominion of New Zealand. At of Niue’s total population and likely that time, the population of Niue was to have a substantial impact on the 4,600: nearly a hundred years later, island, both economically and socially. there are about 1,700 people on the The courses offered are for medical island, a remarkable population degrees recognized by Niue and by implosion ultimately attributable to the World Health Organization the island’s ties to New Zealand. At (w h o). At its opening, the university present there are 517 occupied homes campus was located at what has been, on Niue. The village of Namukulu, until recently, the Niue Hotel, where the island’s smallest, has only nine there are to be lecture halls and a households and twenty residents. The medical library. According to the capital, Alofi, has 655 people, a drop medical school’s website, there are of 77 since the 1997 census. plans for a permanent campus, with The government’s precarious hold “impressive buildings, interwoven on power comes at a time when, iron- with the community,” to be built on ically, its political stability has been 10 acres of land south of Alofi. identified as an important factor in a The Niue Hotel itself, twenty-five major initiative and investment. An years old, had been put up for sale by agreement between the government the government. Although refurbished and the International Medical Educa- at great expense following Cyclone tion Planning Committee, based in the Ofa in 1991, the hotel has been expe- 244 the contemporary pacific • spr ing 2001 riencing poor occupancy rates for vention, the successor to the Lomé some time and has been surpassed Convention. Niue expects to gain in quality by the equally beleaguered specialized aid and trade development Matavai Resort. With the opening of assistance from its formal relationship the medical school, the hotel finally with the European Union. Niue also ceased to function, the property hav- hopes to join the Asian Development ing been leased for at least three years Ba n k du r i n g 20 0 0 , rev e r s i n g th e ba n k’s by the university. previous rejection of its application At the same time, an overdue and opening the way for further fund- upgrade is also being carried out at ing for a variety of development pro- Niue’s Lord Liverpool Hospital. The jects. renovation project, part of a larger Despite its minority status, the health-care program funded by New Lakatani government has continued its Zealand’s Office of Development “think big” approach to development, Assistance, has been made possible pe r haps in an attempt to demonstrate through w h o support. The Niuean to New Zealand that the island can at health service was also to benefit from some point achieve financial indepen- a new chiropractic service, based on dence. It is worth reflecting on the the university campus. scope and scale of what the Niue Cab- Political changes in the Pacific inet has been seeking to achieve. Since region have also had their effects on taking offi c e th e r e have been, as no t e d , Niue. All twenty-one Niuean students plans for a new airline (unsuccessful) at the University of the South Pacific and the opening of a new medical were evacuated from Suva following school (under way). But these are but the armed coup in May 2000, and a few of the projects contemplated by most flew on to New Zealand. Laka- the cabinet. Others include a 3,000 tani joined with other Pacific leaders ac r e herbal medicine orch a r d; a nz$50 in condemning the Fiji coup attempt. million golf course; a nz$300 million Subsequent developments in Fiji and “cyber city”; a 150-room resort and the Solomons gave Niue its own mini- casino; the sale of residential estates security scare. An apparent warning for retired Koreans eager for sea and to Lakatani, made on an I n t e rn et ch a t - sun; another golf resort concept, to site, led to the provision of additional be developed by and for Australian security at both his home and office, investors; a project for manufacturing as well as a bodyguard for his travel alternative energy units; and various to New Zealand in June. That journe y information technology proposals. culminated in a visit to the west Afri- Perhaps the most imaginative of can state of Benin, where Niue’s all these ventures is the “cyber city,” ongoing bid to broaden its interna- which requires legislation setting up a tional ties was producing a further Niue Multi-Media City Authority. The and potentially significant success. plan, promising n z$500,000 a month Lakatani was attending the European royalties to the government, would Union–African, Caribbean, Pacific use hundreds of hectares of “indefi- (ac p) meeting, at which Niue succeed- nitely leased land” to be administered ing in gaining membership in the ac p by a government-controlled authority, group prior to signing the Suva Con- which would in turn give a license to political reviews • poly n e s i a 245 a corporation to operate the “cyber drawn. Lakatani has indicated, how- city.” The project anticipates estab- ever, that he will not voluntarily lishment of an Internet university vacate an office which he waited a (20,000 students) as well as a facility long time to win, and he has req u e s t e d with two hundred companies engaged that there be no further discussion of in multi-media, information technol- the idea. In any event the tied vote ogy, and research and development prevented further assembly debate for activities. In addition to the projected the moment. The request for Laka- government rental income of n z$6 tani’s resignation was prompted by million annually, the scheme would continuing concern about Coral Air open up important new job opportu- and about some of the other plans nities for skilled Niueans, some of to assist overseas developers with the whom could perhaps be induced to various resort and information tech- return “home” from New Zealand. A nology projects. public launch for the project has been Other, more unusual financial con- targeted for later in 2000. cerns are also having an influence on The Niue People’s Party’s appeal— Niue’s political and economic affairs. like that of many populist parties These developments raise questions worldwide—has been based, in part, about the future of both the island on promises of financial largesse to and its leader. Problems with Niue’s the less well-off. Some of these hopes international reputation took an have already been achieved, account- unexpected turn when it was included ing for the party’s continuing popular- on a blacklist of international tax ity. There have been increases to pen- havens published by the g7 industrial sions as well as additional funding for group of nations. The g7 report village councils and other organiza- named Niue as one of a group of tions. The price has been high—a nations, many of them Pacific Island substantial budget deficit, expected states, failing to meet accepted criteria to reach about n z$1.5 million—as against money laundering, including spending has not been offset by the enforcement of regulations for increases in revenue. The financial financial disclosure. The g7 group, shortfall may lead to a reduction in known as “the Financial Action Task public servants’ working hours (to a Force,” went so far as to caution four-day week). countries against making any trans- Midway through 2000 the position actions with people and businesses in of the government remained precari- blacklisted countries. ous at best. In June a motion support- Niue can ill affo r d sanctions against ing a request that Lakatani leave offi c e it for alleged money laundering. The failed on a 9–9 assembly vote. The prospect of financial penalties has opposition had intended to move a been of concern to both the New Zea- motion of no confidence—the second land and the Niue governments. Niue in six months—but due to overseas maintains that it already has in place travel plans on the part of some stringent banking legislation and that assembly members, the motion (which the entire matter arises out of some would have required the Assembly to so r t of bizarre misunderstanding. Even reconvene at a later date) was with- so, claims that Niue’s banking regula- 246 the contemporary pacific • spr ing 2001 ti o n s ar e inadequate, and may be be i n g Sa¯ m oa exploited for criminal purposes, are The issue that made the most head- likely to lead to some steps being lines in Sâmoa in the period from July taken to close remaining loopholes. 1999 to June 2000 was the murder On the other hand, it is possible that of the minister of Public Works, the by doing so it will remove some incen- Sâmoa Water Authority, and the Elec- tives for depositors to lodge their tric Power Corporation. Other impor- funds in Niue in the first place. There tant issues included by-elections, the are six offshore banks registered on electoral reform commission, the Niue—none of them physically pre- Olympic sports dispute, and the sent on the island—as well as 4,800 nurses’ strike. international business companies reg- Events of the night of Friday 16 istered for tax-haven benefits. July 1999 shocked the tiny Samoan The premier’s problems, perhaps nation and the world. A ceremony to more imminent, stem from the likely mark the twentieth anniversary cele- immediate effects of a failure for them bration of the Human Rights Protec- to be solved. His personal financial tion party (h r p p) was being held at position has led to the commencement St Joseph’s College hall at Alafua, of bankruptcy proceedings over his about 10 minutes drive inland from business dealings with a New Zea- Apia. Minister Luagalau Leva‘ula land–based company. The service of Kamu and Tuala Sale Tagaloa, Minis- bankruptcy papers arises out of Laka- ter of Land, Survey and Environment, tani’s failure to repay a n z$30,000 were co-masters-of-ceremony. Luaga- debt to an Auckland businessman. lau was shot at close range, a few min- Once stamped and formally approved utes after introducing the prime minis- by the court, service of the papers te r , as he walked to the back of the would give the premier just fourteen stage to answer a cellular phone call days to have judgment set aside or to from a relative. He was fatally make a counter-claim. wounded by a single shot from a .223 There are serious political implica- calibre rifle. At about eight o’clock, tions if the bankruptcy proceedings he was taken to the national hospital, succeed. Lakatani—ironically Niue’s where he died thirty minutes later (SO, minister of finance as well as its pre- 18 Jul 1999). Luagalau’s body was mier—faces disqualification from par- laid to rest at his home in ‘Ululoloa liamentary office, and consequently on 22 July. Among the dignitaries loss of his assembly seat and cabinet who attended the funeral were the position, if he is declared bankrupt. New Zealand members of parliament This would be a novel contribution Murray McCully and Tau Henare, by Niue to comparative political sci- accompanied by the Samoan members ence, adding “bankruptcy” and “non- of the New Zealand parliament payment of debt” to the category of Arthur Anae of the National party instruments—coups, no-confidence and Phillip Field of the Labour party. votes, election defeats, impeachments, Sâmoa tried to come to terms with and assassinations—available for its first political assassination in mod- replacing a head of government. ern times. Well known as a peaceful stephen levine people who pride themselves in their