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3RO\QHVLDLQ5HYLHZ,VVXHVDQG(YHQWV -XO\WR-XQH 5HYLHZVRI$PHULFDQ6ëPRD+DZDL©L ing nz$1.7 million. Since 2004, New Niue, Tokelau, Tonga, Tuvalu, and Zealand and Australia have combined Wallis and Futuna are not included in their aid programs (CIN, 8 July 2009), this issue. with almost 40 percent now going to education and training. Key portrayed Cook Islands his visit to the Cook Islands as an Continued political maneuvering, effort to “reinforce the already close public budget mismanagement, and links New Zealand has with its Pacific population decline dominated public neighbors” (CIN, 9 July 2009). discourse in the Cook Islands from As the Cook Islands celebrated the July 2009 to June 2010. By June 2009, arrival of Christianity 186 years ago Cook Islands population had dimin- (CIN, 28 July 2009), political cabinet ished to an estimated 13,200 (CIN, 4 shuffles and reshuffles, and realign- Dec 2009), with around 70 percent ments among members of Parliament of people living on the main island (mps) continued. Quests for political of Rarotonga. During the year, New power often overflowed into public Zealand Prime Minister John Key led consciousness, and most residents a sixty-eight-member delegation to the reflected on it with much distaste. The Cook Islands that included two min- constant strain on the government isters, nine members of Parliament, budget was of particular concern. three mayors, several business industry Financial secretary Sholan Ivaiti representatives, a hip-hop band, and summarized the budget strain as com- sixteen media representatives (CIN, 9 peting interests chasing after limited July 2009). government funds, but he identified While in Rarotonga, Prime Minister the hosting of the Mini South Pacific Key announced a NZ$1 million subsidy Games as having the most pull on the for the Air New Zealand flight from budget (CIN, 1 July 2009). Mini games Los Angeles to Rarotonga (CIN, 10 Minister Wilkie Rasmussen challenged July 2009). (nz$1 is the equivalent Ivaiti’s claim by issuing a statement of approximately US$0.73.) Key also that the government’s funding of the confirmed his country’s commitment mini games was expected to total no to provide aid for the Pacific, although more than nz$3.3 million (to cover he expressed “a desire to change the accommodation, food, and sports emphasis from poverty alleviation to equipment), with this amount “not economic development” (CIN, 8 July putting a strain on the government’s 2009). The 2008–2009 New Zealand 2009/10 budget” (CIN, 2 July 2009). budget included a total aid pack- Rasmussen even suggested that the age of around nz$10 million for the “financial secretary’s insistence on Cook Islands, with AusAID provid- drip-feeding funds to games organiz- 209 210 the contemporary pacific 23:1 (2011) ers” was actually creating further dif- “future loans by government would be ficulties (CIN, 2 July 2009). However, unsustainable . for the next 20 plus there was a widespread notion that years” (CIN, 4 Sept 2009). Rasmussen hosting the Pacific Mini Games would went on to suggest that the mentality cost the Cook Islands closer to nz$20 seemed to be “Think Big and Borrow million (CIN, 7 Oct 2009). Large regardless of our capacity.” A Deputy Prime Minister and Min- letter to the editor of the &RRN,VODQGV ister of Finance Sir Terepai Maoate News reacted to Rasmussen’s com- joined the public debate on govern- ments, pointing out that until he was ment finances, indicating that the sacked he was actually part of the government had contributed well over problem (CIN, 4 Sept 2009). nz$13 million toward infrastructure Also during the year under review, for the Pacific Mini Games—which a new terminal at the Rarotonga Inter- future generations will pay for. Oppo- national Airport took shape (CIN, 8 sition spokesman for finance and Atiu Oct 2009), and the Cook Islands eco- MP Norman George described the bud- nomic development task force revealed get inaccuracies coming from Ivaiti’s initiatives that include private-public office as “alarming” (CIN, 4 July partnerships and cooperation with 2009). When Maoate later described China. The task force suggested that his 2009–2010 budget totaling China was “ready and willing to assist NZ$215 million as “the mother of all the Cook Islands in the areas of trade, budgets” (CIN, 25 July 2009), George tourism, investment, food sustainabil- countered by calling it the “mother of ity, banking, insurance, shipping, and all mistakes” (CIN, 30 July 2009). The the development of sports” (CIN, 14 status of the budget was particularly Oct 2009). Chinese aid to the Cook disconcerting for average Cook Island- Islands already included a nz$15.6 ers given that total national revenue million soft loan and another pro- for the same period was projected at jected nz$50 million loan (CIN, 23 only nz$96 million. June 2009). In July, Cabinet Minister and Pen- The government secured a NZ$13.4 rhyn MP Wilkie Rasmussen admitted million Asian Development Bank he was making plans to form a new loan for investment in infrastructure government and was subsequently improvement, and the tourism road sacked by the prime minister (CIN, networks in Aitutaki and Rarotonga 25 July, 29 July 2009). Rasmussen became priorities (CIN, 8 Dec 2009, 1). responded by calling for Prime Min- By early 2010, the Ministry of Finance ister Jim Marurai to resign. Titika- and Economic Management released a veka MP Robert Wigmore, who was report that showed total government rumored to have leaked the takeover debt estimated at nz$103.2 million, attempt, was sworn in as the new or “32 percent of gross domestic minister in place of Rasmussen (CIN, product for financial year ending June 30 July 2009). Even though he was 30, 2010” (CIN, 5 Jan 2010, 1). New no longer in the cabinet, Rasmussen Finance Minister Wilkie Rasmussen, continued to publically comment on who by then had regained a ministe- the national budget, declaring that rial position during a cabinet reshuffle pol i t ical reviews polynesia 211 (discussed later in this review), vering, a “secret” government fuel admitted “a budget deficit of up to farm proposal emerged and dominated $4 million,” but others suggested a public discourse (CIN, 13 Oct, 15 Oct, nz$7 million shortfall (CIN, 12 March 15 Dec 2009). Atiu Island MP Norman 2010, 1). George described the deal to purchase The nation’s social welfare system the Toa depot as a Democratic Party cost the government NZ$11.3 mil- government bungle and called for lion in the current financial year and transparency on the NZ$5.16 million is up for review (CIN, 5 Feb 2010). purchase (CIN, 16 Dec 2009). Then a The Cook Islands state-owned prison secret settlement between the govern- in Rarotonga received NZ$200,000 ment and Toa Petroleum resulted in worth of renovations (CIN, 26 April the government withdrawing from the 2010), although there were ten escapes purchase but agreeing to pay the com- in 2009 that had plagued prison pany NZ$1.7 million in an out-of-court authorities; apparently in some of the settlement (CIN, 17 Dec 2009). In spite incidences “the security gate was not of an effort by the government to locked at the time of the escape” (CIN, modify the settlement agreement, the 9 Nov, 12 Nov 2009). Public focus chief justice eventually ruled in favor on the nation’s judicial system also of the company (CIN, 19 May 2010). noted other disturbing events. Lawyer Cook Islands workers expressed their Tevita Vakalalabure was disqualified concern, describing the Toa episode from driving for two years after being as “a conspiracy, mismanagement and convicted of drunken driving causing exploitation of public funds” (CIN, 18 injury (CIN, 11 July 2009). He was Dec 2009). The so-called “Toagate” eventually struck off from the roll of cost government nz$3 million, with barristers of the Cook Islands High nothing in return—reminding many Court after a long history of miscon- of the 1999 nz$120 million Sheraton duct (CIN, 20 Nov 2009). debacle, in which an abandoned resort Cook Islands hosted several events project left the Cook Islands govern- during the year including an under- ment on the hook for a massive loan 21 international netball event, the (CIN, 22 Dec 2009). The debt to the previously mentioned Pacific Mini Italian government was negotiated Games (CIN, 22 Sept 2009), and the down to nz$13 million but the Cook Pacific Parliamentary Assembly on Islands government still ended up pay- Population and Development-Forum ing a large sum of money for nothing Presiding Officers and Clerks Bian- in return. nual thematic conference (CIN, 17 Nov As the Toagate incident unfolded, 2009). Although such events were the prime minister tried to make great opportunities to showcase the the case that he was unaware of the politicians and the country’s dynamic deal by sacking his deputy Sir Tere- culture (CIN, 19 Sept 2009), many pai Maoate (CIN, 23 Dec 2009). The observers pondered the wisdom of shared responsibility of cabinet deci- hosting commitments, given the bud- sion making was thus marginalized, getary struggles facing the country. and Toagate became widely viewed Amid all the political power maneu- by observers as a soap opera at the 212 the contemporary pacific 23:1 (2011) expense of taxpayers (CIN, 24 April tive Sir Frederick Goodwin. As the 2010). It prompted the sacking of newly appointed minister and attorney key government personnel and the general, Wilkie Rasmussen revealed reshuffling of others (CIN, 19 May that he and Marurai were “following 2010). The court decision upholding the constitution to the letter” (CIN, 8 the settlement arrangement increased Jan 2010) and refused to request that public anger, with blame being leveled Parliament be called into session.