Polynesia in Review: Issues and Events, 1 July 1996 to 30 June 1997

Reviews of American Sâmoa, and private-sector work or self-employ- Wallis and Futuna are not included in ment. But the head of Transition this issue. Services, Nga Pierre, said that many would not even attend interviews for jobs. Many private-sector jobs were advertised but not filled, because Cook Islands private-sector jobs involve regular The shrinking economy was the crucial attendance and effort, which govern- issue in 1996–97. The government’s ment jobs in most cases did not. Moti- budget policy statement accepted that vation was low, as people had become the economy shrank a further 4.1 per- accustomed to wide-ranging depen- cent during the year, following an 8 dence, including being paid without percent drop the previous year. The significant work. A few set up their present government, in power since own enterprises, but most were left ill 1989, outdid its predecessors in efforts equipped for initiative, responsibility, to make voters dependent on them and or self-reliance. Many people have to politicize more forms of power. It some land or family they can fall back achieved this largely by borrowing far on in emergency, and all have the right beyond the country’s capacity to repay, to live in New Zealand and Australia using the money to bring more people and earn much higher amounts (which onto the government payroll with little become a benchmark at home), to do, and giving cash grants and per- whether from work or welfare grants. quisites to politically useful actors— The staff of the Ministry of Agricul- including all the main churches. ture was cut from 280 to 70. Few had With insurmountable debt, and realized that the ministry itself was a bankruptcy only one payday away, the major constraint on agricultural pro- Asian Development Bank was called ductivity, and those who knew had a on and a “structural adjustment pack- vested interest in not telling. For age” devised. Cook Islands currency decades, successes in agriculture have was abolished because it became dis- resulted from individual initiatives; credited after the government “mined” almost every government scheme has the reserve fund on which it was failed. By the end of the year under based. New Zealand currency was review agricultural production was adopted in its place. already much improved. The public service staff was cut However, the political super- nearly sixty percent from a peak of structure remained untouched. As the 3,600 to 1,593—still relatively large publisher of the Cook Islands Press for a resident population of 18,000. observed on 26 January, “Ministers Those who lost their jobs were offered run the country into the ground, every- three months’ pay if they joined “Tran- one loses their jobs except them.” sition Services” and trained for Despite public calls for reductions to

192 political reviews • polynesia 193 the 9-person cabinet and 25-person helped themselves to overseas aid.” No parliament to run a community of one dares to take ministers to court, 18,000, their posts and privileges have for the network of power in a small been preserved. community is too pervasive. Not all is Levels of integrity have also been gloom. The much-respected Minister tarnished. The newspaper article spoke for Justice the Honourable Tiki of ministerial improprieties that are Matapo has often challenged his general knowledge such as “[Minister] colleagues and public servants over Tom Marsters . . . ordering tax-paid conflict of interest and misuse of workers to his private pig farm”—and power. to his taro plots. The same minister There is little confidence in today’s contracted the mowing of the interna- political leaders. A newspaper poll in tional airport to his campaign manager March revealed that an overwhelming and supplied him with a government 86 percent of respondents were not tractor to do it with. Minister for satisfied with the government. Nor did Marine Resources the Honourable they have faith in the opposition. Tepure Tapaitau granted a license for a Prime Minister Sir Geoffrey Henry pearl enterprise in which his family are received only 9 percent support (com- the major Cook Islands beneficiaries. pared to 17 percent last year). The Such conflicts of interest and misuse of highest approval rating was achieved power are common. Former Minister by the Honourable Tiki Matapo, but of Marine Resources and then Cook at only 15 percent. Leader of the Islands Commercial Consul in New Opposition the Honourable Norman Zealand Ben Toma was being sought George rated only 10 percent (and all by creditors and police for money he members of his party together only 19 owed to all three banks in the Cook percent). George’s 10 percent rating Islands (among other debts), and for seems not to have been changed by his his island’s church funds, which “dis- public “apology to the nation for my appeared” while in his care. Toma past business failures....I’ve hurt went into hiding in Australia, using a some people [but] I’ve learned from diplomatic passport. The New my mistakes.” Given the scale and Zealand government was so keen to nature of the “mistakes,” however, get the passport back that it refused to and the number of people hurt, the renew any Cook Islands diplomatic poll suggests that few were moved by passports until it was returned. The his request for forgiveness. Sixty public complains about widespread percent of those polled want a new incidents like these involving politi- field of politicians, suggesting that a cians and public servants, and the credible new party may get public Cook Islands Press editorial of 22 June support. 1997 observed that “Money, cement, In April a new Public Expenditure cars, boats, computers, video cameras Review Committee was established, and decks, and many millions in office but the minister of finance (who is also supplies and food have gone missing prime minister), selects the chairman over the years as those in power have and the cabinet selects the other mem- 194 the contemporary pacific • spring 1998 bers. Justice Minister Tiki Matapo’s Tahitian interests. A sale agreement recommendation for an independent was signed for the Rarotongan, with review committee was rejected. He the transfer to take place on 26 wanted a committee with a much November 1996. However, the gov- wider brief, including hearing com- ernment revealed that their arrange- plaints about corruption by members ments to shift the mortgage on it to of parliament and cabinet. The new other government assets by the govern- committee is concerned only with ment of Nauru (as security for the loan public servants. to build the Sir Geoffrey Henry Cul- The government decided to delegate tural Centre) had not been finalized as more financial and administrative promised. They therefore advanced responsibility to local governments on money to proceed with renovations, each island. The principle of devolu- to be repaid once they were able to tion is good if there is a local input, transfer the title. This has been but how it will work in practice delayed by five changes of president in remains to be seen, as the govern- Nauru. Public criticism of the govern- ment will give the Island Councils ment’s actions was strong. The Vai- the money, and they are highly maaga resort lies incomplete, empty, politicized. and without a definite buyer. The Since the government dissipated Rapae is in the process of being savings (including people’s money in sold. the Post Office Savings Bank, the The government liquor supplier superannuation fund, and the reserves (which had the monopoly on all liquor of public utilities) and minimized imports) had a history of corruption incentives for people to save, the coun- and mismanagement. One former try is excessively dependent on foreign manager is still in jail for fraud; some aid, investment, and initiatives to ask why he is the only one there. The create infrastructure, employment, and business was sold, and outstanding income. However, the present govern- debts of nz$400,000 written off. The ment’s eroded credibility and reputa- result of the broken monopoly was a tion for low quality management reduction in alcohol prices as multiple have reduced the volume of both aid outlets competed for the market. The and quality investment. Whereas competition has also led to suppliers overseas suppliers used to give sixty being much more generous in giving days’ credit, they now give many to sporting and other community Cook Islands businesses thirty days or events. less because of the country’s deteri- The radio and television service that orating image abroad in the past the government sold last year has three years. Many local firms have been losing money (although only a ceased giving credit and deal only in fraction of the losses when it was run cash. by the government), but hopes to After years of heavy losses, the become viable by adding cable tele- government decided last year to sell its vision. The government dental clinic four hotels. The Akitua was sold to and one outpatient clinic were priva- political reviews • polynesia 195 tized with some government was accepted, but there has been subsidy. public pressure to postpone the invita- The Rarotonga and Aitutaki air- tion for several years until the econ- ports and shipping ports, power, omy is in better shape. Hosting the water, and waste management services, Forum in the Sir Geoffrey Henry Cul- and the development bank, have been tural Centre will cost nz$500,000 advertised for sale, but the policy according to government estimates, remains contentious and no sales have and $1 million according to some been made. The government has others. This is a lot of money for a offered to return the land to the former country with a national budget of only traditional landowners, who would about nz$50 million, and in financial rent it to the investors who buy the crisis. But the prime minister is deter- assets and operate the services. mined to “showcase” the “reform” The Mangaia ostrich farm closed, program and rehabilitate his image with the loss of one hundred jobs, after among fellow heads of government. being for three years the main source Once one of the most positive images, of private employment on that island. it has been badly shattered in recent A proposed alpaca quarantine station years. (for alpaca en route to Australia) never Despite high rates of natural opened, following long and acrimoni- increase, the population remained ous debates. The owners established it static due to emigration, particularly in on neighboring Niue. Copra produc- the 15–44 age group. The national tion, which ceased some years ago, total of 18,617 in 1991 rose to only recommenced on the atolls. It is 18,904 by the December 1996 census. exported to Sâmoa. There is scope for It rose considerably in the early 1990s, more agricultural exports, but Man- but dropped markedly in 1996 and gaians stopped exporting taro in early 1997 following the collapse of September as they had not been paid the “bubble economy” that had been for up to seven months. built on reckless borrowing and non- A lands commission, set up to ame- maintenance of national assets. The liorate problems of fragmented title, proportion of non–Cook Islanders in absentee ownership, backlogs in the the population has grown, as Cook land court, and so on, presented its Islanders emigrate and foreigners report during the year. Action to be immigrate to set up commercial taken by the government has not yet services. Most of these services could been decided. be set up by Cook Islanders, but the A private Internet casino opened. government’s dependency-creating Cook Islanders cannot play, and there practices, plus cultural priorities, have has been criticism of the fact that the sapped their initiative and confidence. business was given tax-free status. If the hoped-for economic upturn takes The South Pacific Forum holds its place there will not be enough staff for annual meeting in a different country the hotels and other enterprises and an of the region each year. This year the inflow of Filipino and other Asian Cook Islands’ offer to host the meeting workers is likely—as is apparent 196 the contemporary pacific • spring 1998 throughout much of Melanesia and at the end of the fifteen-year term, was Micronesia. cashed early, leaving the government The shrinking economy, and the with another unmanageable debt. higher fees set by the University of the A Polynesian Song Quest, which South Pacific in Suva, was reflected in was to have been an annual event, enrollments of extension students fizzled after the first session, at which being less than one third of what they the government lost considerable have been. The whole education sys- funds. The rhetorical importance given tem is currently being reexamined. to the Cook Islands language is faced The prime minister rode a self- with the reality of a deteriorating generated wave of “Cook Islands language situation. Nongovernment culture,” which the first head of gov- cultural initiatives, on the other hand, ernment (his cousin Albert Henry, who have in many cases been successful. led the country from 1965 to 1978) Voluntary expressive arts flourish, had likewise used to political advan- sponsored mainly by the sources of tage. Sir Geoffrey’s goals of enhanced income, travel, and other rewards for cultural integrity were supported, but performance and product—the tourist once filtered through his ego and polit- industry, the airlines, and the banks. ical goals, they ended up being The international commercializa- expressed in such initiatives as bank- tion of rugby, league, and soccer began rupting the nation with the Sir in 1996 to provide external funds for Geoffrey Henry Cultural Centre. Its full-time and part-time Cook Islands main hall is empty ninety-nine percent staff, training in country and abroad, of the time and in the one percent of equipment, and fares for Cook Islands time it is used, ninety percent of the teams to compete in games in several seats are usually empty. The National different countries each year. The Library, which is part of the centre, Olympic Movement also provides was built in an unsuccessful attempt to funds for in-country and overseas force the closure of the voluntary, training of Cook Islands athletes and long-established, and successful Cook for equipment and financial support to Islands Library and Museum Society, compete abroad. These are valued which was chaired by former prime experiences. minister and political foe Sir Tom Permanent-residence status in the Davis. The island of ten thousand Cook Islands is very difficult to obtain, people now has three libraries side by and Sir Geoffrey Henry stated publicly side—the third being that of the Uni- in 1989 that no more permanent resi- versity of the South Pacific Extension dence certificates would be issued Centre. None is adequately staffed or while he was prime minister. The Cook equipped. Interest payments on the Islands constitution states that only the loan for the construction of the Sir High Court can revoke permanent resi- Geoffrey Henry Cultural Centre are in dence status. That would require very arrears, and the zero-coupon bond, good reason, and no such case has ever donated by the founder of the Cook been brought. Nevertheless, the prime Islands tax haven to repay the capital minister and other ministers from time political reviews • polynesia 197 to time threaten to “deport” any standard of living better than any in permanent resident who annoys them. the region, and in harmony with our Their bugbear during the past couple culture and environment.” That had of years has been Jason Brown, pub- been achieved by Sir Tom Davis’s lisher of the Cook Islands Press, whose government in the 1980s, with the investigative reporting (along with that then exception of Nauru among the of his equally vigorous Cook Islands independent nations and the stark partner, whom the government cannot exception of the French and American touch) has hurt the government more territories in which levels of income, than any other. It was they who uncov- education, health, and so on are much ered the Letter of Guarantee scam and higher. If Sir Geoffrey is to attain his various others. goals, it will mean a radical change of In September the government tabled policy and practice from those he a constitutional amendment in parlia- applied during his first seven years as ment, giving the minister the right to prime minister. He admitted in the deport permanent residents at his Parliamentarian (January 1997), as he discretion. The New Zealand govern- has publicly at home, “I finally came ment did not comment, but several to realize who caused the problem: we New Zealand backbenchers called for did—my government and past admin- a review of the automatic right of istrations.” Nevertheless, the public Cook Islanders to enter and remain in will take some convincing. Henry’s New Zealand (where there is no commitment to repaying his govern- deportation, even through the courts), ment’s debts will take time to achieve, while New Zealanders have no right to even if expenditure is reduced. The key enter the Cook Islands. There are two goals in Vision 2005 are to lift eco- and a half times more Cook Islanders nomic growth through tourism, agri- in New Zealand (over 50,000) than in culture, marine resource developments, the Cook Islands, but only a few hun- offshore financial services, and local dred New Zealanders in the Cook industries and services. It aims, Islands. Cook Islanders both there and between 1997 and 2005, to get at home value the access privilege government revenue and expenditure highly, and the possibility of loss of it below 30 percent of gross domestic led them to apply pressure on their product, net debt (liabilities to current politicians at home. In response, the assets) down to 30 percent, and to Cook Islands government withdrew build a national reserve of at least the proposal for ministerial deporta- nz$50 million. The Cook Islands tion and provided for a maximum of remains in a trough, but if the reform 500 permanent residents at any one program is maintained, future time. There were then 315. For the prospects could be much brighter. first time since 1989, a new intake was ron crocombe permitted in 1996. marjorie tuainekore crocombe In April the government issued the prime minister’s “Vision 2005,” the basic goal of which is “to achieve a