216 the contemporary pacific • spring 1998

The government’s only reaction was were returning to the tribunal and to strongly condemn the tribunal for would be demanding that urgent steps daring to say it might use its only be taken to alleviate the poverty in power to make order and to warn Muriwhenua. Muriwhenua Mâori that they should margaret mutu put aside any hope of being delivered justice as a result of their successful claims. That apart, its reaction was Reference very similar to that for the 1996 Brooking, Tom. 1996. Article in New Taranaki Report: muted, urging every- Zealand Herald, 31 December. one to read the report but not subsi- dizing its publication so that the nz$100 price tag would ensure that only a few people would read it. In the meantime the government was desper- Following its victory in the 1996 elec- ate to get Muriwhenua claimants to tions, the government of Premier settle without getting orders from the Frank Lui had little difficulty main- tribunal. This had less to do with the taining its majority in the Niue Assem- nz$60 million dollars in compensation bly. This stability contrasted with the and approximately 50,000 acres of previous term’s internal bickering, land the tribunal could order to be which led in turn to dismissals of returned to the Muriwhenua tribes, cabinet ministers, challenges to the and more to do with the precedent it premier, the formation of the opposi- would set for other much larger tion Niue People’s Party (npp), and the Crown forests, where the compensa- lengthy deadlock in the Assembly tion alone is worth between nz$7-and- (Levine 1996, 191–193). With only a 8 billion. That would completely blow small majority in the Assembly, how- apart the ridiculously low nz$1 billion ever, the government’s position budgeted to settle all Mâori claims, remained precarious. even though it is less than two years of The death in October 1996 of the budget for the Social Welfare Toeono Tongatule, one of the six Department. Assembly members elected on the The government refused to provide islandwide “common roll,” gave the either funding or resources to assist the Lui government an opportunity to tribes to prepare for entering into enlarge its majority. Tongatule had negotiations. Then in June the three been an npp supporter, and the party children died in the fire in Muri- initially indicated that it would be whenua, and the conditions of poverty supporting his widow, Mrs Tiva in the area were put on display for the Tongatule, in its bid to retain the seat. whole country to see. The government If she had been successful, she would was severely criticized for allowing have been the second woman in the such conditions to continue to exist, twenty-seat Assembly and the first but remained unmoved. The Muri- woman npp member. whenua tribes announced that they As Niue’s only political party, the political reviews • polynesia 217

Niue People’s Party pinned its hopes in ing to increase phone charges. At the by-election on its ability to remain present, however, a mobile phone costs united. Unfortunately for the party, more than nz$500, and the telephone Terry Chapman—its former president, company already has its difficulties who had been an unsuccessful candi- with outstanding accounts. date in the general election—also con- The program for sealing the cross- tested the seat. In all, the 15 February island road also continued, arguably of 1997 by-election attracted ten candi- some relevance in the by-election, dates (as well as most of the island’s since the late Mr Tongatule had lived voters) and was won by Billy Talagi, a at . The government was former npp candidate who had able to complete the paving of roads defected to the government weeks from the capital, , to , before the by-election. His majority Liku, and Hakupu (about 30 kilome- over Mrs Tongatule was only 81 (275 ters), making for a considerable votes, against her 194), and 9 votes improvement from the potholed coral less than Chapman’s 90-vote total. it was replacing. The Niue People’s Party’s numbers Perhaps the most important— in the Assembly slipped further follow- certainly the most expensive—eco- ing the by-election. Common roll nomic development during the 1996– member Fisa Pihigia also left the party, 97 year was the opening of the new and by mid-1997 its numbers in the 24-room Matavai Resort. Built with Assembly had been reduced to 6 New Zealand financial assistance, the (Robert Rex, Jr, and five supporters), nz$3 million project (including cost against the government’s 14 seats. overruns) was completed in September Although the government’s victory 1996. However, Niue’s tourist industry in the by-election was influenced by remains weak; the week that Matavai various factors, including family and opened, there were only six tourists on personality considerations, its perfor- the island and the government-owned mance at the polls also reflected its 32-room Niue Hotel stood completely activities since retaining office in the empty. With both the Niue Hotel and 1996 election. The government pro- the Matavai Resort, the Niue govern- ceeded with efforts to upgrade Niue’s ment could be said to be competing telephone system, installing a cell- with itself: it holds 51 percent of the phone system around the island (paid shares in Matavai. The resort was for in part by drawing on the govern- officially opened by the governor- ment’s reserves). The cellphone general of New Zealand and of Niue, network provides a better commu- Sir Michael Hardie Boys, in April. nications system, particularly for those Within two months, directors were living in villages on the eastern side of describing the resort as facing finan- Niue. The cellphone system required cial problems, which they attributed the erection of two 60-meter-high cell- to the high airfares charged by Royal phone towers, one at Makefu and the Tongan Airlines (which has now other at . To help pay for the been appointed Niue’s national project, Niue Telecoms had been hop- carrier). 218 the contemporary pacific • spring 1998

For its part, Royal Tongan Airlines public service have been challenged. made possible the resumption of direct The president of the Niue Public service between Niue and New Service Association, Maru Talagi (the Zealand, inaugurating Auckland–Niue director of Public Works), was sus- flights in October, with air links to pended by the Public Service Commis- Niue through Tonga also being contin- sion after suggesting that members ued. An additional air service to Niue would discuss direct action if there is being provided by Samoa Air, with were reductions in either staff numbers flights from Pago Pago, American or salaries. Sâmoa. Niue’s population has apparently With completion in recent years of continued to shrink—according to two major special projects (the airport unofficial estimates—dropping to resurfacing and extension, to accom- around 2,000 (from more than 2,300 modate 767 and fully-loaded 737 in the last census, a drop of about 5 aircraft, and the Matavai Resort) percent per year; Guest 1997, 3). large-scale funding from New Zealand Several families from Tuvalu have was bound to be reduced. Budgetary moved to Niue following an agreement aid to Niue was cut in mid-1996 by between both governments. The fami- nz$250,000, to nz$4.5 million, with lies have been settled in , follow- further funding available for special ing government refurbishing of homes projects. At the same time, the govern- left abandoned after the mass exodus ment’s budget predicted a deficit in of villagers in the 1970s. It is not 1997 of nz$329,000, despite major expected that an intake of Tuvaluans reductions in government spending will resolve Niue’s chronic population (from nz$25.8 million in 1995–96 to problems. nz$19.9 million in 1996–97). Most of While further improvements have the shortfall can be attributed to fund- been made at the airport—extensions ing the cellphone system (requiring to the international terminal, new loan finance), a nz$250,000 subsidy check-in and baggage-handling areas, to Royal Tongan Airlines, and supple- a more spacious and comfortable exit mentary funding for the Matavai and entry to Niue—these are of little Resort. The budget for 1997–98 antici- value if the tourists are not coming to pated spending of nz$20.5 million the island. This failure to come is and revenue of nz$20.3 million. despite a considerable investment The prospect of another deficit being made to attract them: comparing (nz$200,000) comes at the same time the amount spent by the tourist as New Zealand continues to slice authority with the number of tourists, roughly the same amount from its it appears that Niue is spending about annual aid package, which is expected nz$300 per visitor (Guest 1996, 4). In to fall further, from nz$4.5 million a typical week there are more consult- to nz$4.25 million (with special- ants and volunteer workers on Niue project funding remaining at nz$2.57 than tourists. Between January and million). Attempts to trim the govern- April 1997, only 137 tourists visited ment’s deficit at the expense of the Niue (according to Niue’s Department political reviews • polynesia 219 of Statistics): enough to fill the govern- in the number of bags of taro being ment’s two hotels for about a week. In exported (and the total revenue being an effort to place Niue more conspicu- received). ously on the map, the Niue Tourist A more promising and innovative Authority decided to change the venture centers around the alpaca island’s slogan, “Discover Tranquil- quarantine station, which was com- lity,” to the more dynamic “Discover pleted by Australian construction Adventure.” Somewhat ironically, but workers. The quarantine station is a in a show of integrity, the island’s tour- privately funded nz$1 million project ist operators objected, arguing that —apparently the first private quaran- Niue’s activities (apart perhaps from tine station in the South Pacific— the dive shop) were not accurately por- which will earn Niue around trayed in the new emphasis. Subse- nz$250,000 annually. The area has the quently the Niue slogan—at least for capacity to house roughly 1,500 tourist purposes—was changed to alpacas, brought in from Peru, to be “Niue—the Rock of Polynesia.” used for breeding purposes in Austra- The major challenge facing Niue lia. The first planeload of 300 animals has to do with expanding employment arrived on Niue in November. By early opportunities for its young people. A 1997, 600 alpacas had settled into survey found that about half of the their new home at Vaiea for at least island’s youth plan to leave, citing low twelve months before being taken to wages and a lack of jobs, recreation, farms in Australia. Cattle and sheep and freedom. The building of the cell- have also been moved to the station to phone towers, the Matavai Resort, and determine whether any diseases will be the new alpaca quarantine station transferred from these animals to the provided some employment opportu- alpacas. At the same time, the number nities, but these were necessarily short- of alpacas continues to grow, with term. around 500 giving birth since arrival, Many recent government-sponsored and a mating program was begun in economic initiatives continue to floun- February. It has been noted that the der. The afforestation scheme (Levine growth of alpacas is far outstripping 1995, 158) has slowed because of the growth in tourist numbers. lack of availability of leased land and The project’s apparent success has reductions in aid funding. Niue’s taro led to plans for Niue to be used as exports face tough competition in New quarantine facilities for equestrian Zealand from products from Fiji and horses in the Sydney Olympics in Western Sâmoa. However, support has 2000. All overseas entrants in the continued for efforts to expand coco- equestrian events would be flown to nut and taro exports, including the Niue, along with their handlers, Moui Faka Niue taro export scheme, providing business for Niue hotels although price reductions have led to and restaurants (and growers). growers receiving less money than pre- Another venture—the leasing of viously. Lower international telephone-code access prices invariably lead to a reduction lines—was less unambiguously suc- 220 the contemporary pacific • spring 1998 cessful. Some embarrassment was felt hospitals had been involved in alcohol- when it transpired that at least some of related accidents. Niue’s approxi- the lines were being used for live sex mately 2,000 people have about 600 calls. The codes had been leased by registered vehicles on the road. Unfor- Asia Pacific Telecommunications and tunately requests to foreign govern- sold to companies whose calls were ments for financial assistance to build rerouted through Niue. Niue Tele- a new hospital on Niue have thus far coms contacted companies using lines been unsuccessful, reflecting the for this purpose after callers using emphasis now being given by aid the sex lines misdialed and rang sub- donors to projects likely to generate scribers on Niue (in the middle of the economic growth and capital invest- night). After Niue Telecom’s success in ment. identifying companies breaching their Following the collapse of the gov- contracts by using their lines for this ernment’s prosecution of former purpose, the company’s reported Finance Minister Sani Lakatani income from leasing was expected to (Levine 1997, 240), anticorruption drop substantially, from nz$2 million and bribery laws were enacted by the to nz$1.4 million. Assembly. The new legislation closes a Other government measures have loophole in present legislation, and focused on road safety, a concern of imposes prison sentences of up to four- residents, visitors, and the New teen years for bribery or corruption of Zealand and Niue governments. judicial officers, cabinet ministers, Drunken-driving accidents are respon- members of the Assembly, police offic- sible for a significant proportion of the ers, and government officials. Ulti- accidents requiring emergency flights mately all 26 charges of bribery and to New Zealand for hospital treat- corruption were dropped against ment. While new legislation permits Lakatani, with the case costing the fourteen-year-olds to drive cars, the Niue government more than age limit for those driving trucks has nz$250,000 in legal fees. been raised to eighteen, while bus The government also introduced drivers must now be at least twenty. It legislation of wider interest to the may be argued that even these age Pacific region. One measure was aimed requirements make the abandoned at stopping the transportation and tourist slogan, “Discover Adventure,” dumping of nuclear waste within worth a second look. Further legisla- Niue’s two-hundred-mile exclusive tion providing for breath testing and economic zone. There are concerns increased fines seems inevitable. Com- that foreign vessels, loaded with pulsory seat belts are also likely. These nuclear waste, may be moving through moves are largely a response to com- Niue’s waters. Niue also revised its plaints from New Zealand about the fishing laws in an attempt to stop for- high number of emergency air force eign driftnet-fishing vessels from work- medivacs (at a cost of around nz$1 ing inside its waters. Fines for illegal million in 1996). About 50 percent of fishing were raised to nz$250,000, the patients evacuated to Auckland and there is provision for Niue ob- political reviews • polynesia 221 servers to board licensed vessels to at the reconstructed Alofi wharf, check catches. despite repairs following the damage Niue has been considering a further inflicted by the New Zealand Navy modest expansion of its international (costing nz$700,000 to repair). Fur- organizational links. The prospect of thermore, the entire episode still leaves joining the Food and Agriculture cargo ships in the position of needing Organization does not appear to have to offload their produce onto barges. A elicited the enthusiasm that sur- feasibility study being carried out by rounded earlier applications to who the South Pacific Geophysical Agency and unesco (Levine 1995, 155–156). is now underway to determine whether Given Niue’s precarious economic the wharf can be extended 20–30 position, the high cost of membership meters. The extension would provide is an issue that needs to be considered greater depth in the channel to allow against possible benefits to the island cargo ships to tie up alongside the and its people. wharf. The US Government has given A potpourri of ideas continues to be Niue nz$100,000 to assist with wharf advanced on Niue in an effort to make extensions, which will probably be the island more attractive to residents carried out by a US naval engineering and overseas interests. Consideration unit (the “Seabees”). is being given to establishing an Although US Peace Corps volun- English-language school for Chinese teers contribute needed skills on Niue students. The government is also in several areas—information services, exploring the possibility of changing small business advice, accountancy, the dateline so that it will be in the agriculture, and education—Niueans same time zone as New Zealand. Niue continue to advance in the professions. is presently 23 hours behind New The government’s appointment of Zealand. About eighteen hundred twenty-two-year-old Peleni Talagi as companies have so far signed on to Crown Counsel is particularly note- Niue’s International Business Centre worthy, as she is the first Niuean register. Income from these registra- woman to be admitted to the New tions and offshore banking is predicted Zealand bar. Another Niuean lawyer, to earn about nz$400,000 in 1997— Togia Sioneholo, is registrar of Niue’s less than originally anticipated, but High Court. still a significant contribution. There Some may hope that the filling of may be further privatization of some such positions by well-educated, well- government activities, including corpo- qualified young Niueans may encour- ratization of Telecom, Forestry, the age others. Many young Niueans Power Supply Services, and Water studying overseas choose not to return. Supply. The sale of the Niue Hotel is The overall cost of overseas tertiary also a possibility, assuming that there education for Niuean students will is a suitable purchaser. vary, but those studying in New Problems with Niue’s wharf remain Zealand can expect to spend about unresolved. The channel is still not nz$80,000 per person. While those on deep enough to permit ships to tie up scholarship are “obligated” to return 222 the contemporary pacific • spring 1998 for at least three years, this bond is licenses, quarantine station rental, and often broken by graduates attracted by international business registrations. the prospect of higher paid employ- Yet its prospects still seem shaky, if not ment in New Zealand and a more bleak: falling population numbers, a diversified, urban lifestyle. budget deficit, a minuscule tourist Another appointment successfully industry (notwithstanding major avoided controversy. The director of investments in the airport and in hotel education, Atapana Siakimotu, was developments, including funding for appointed Niue’s consul-general in consultants and tourist promotion), Auckland, taking up the post in June and an overall lack of business and 1997 for a three-year term. The investment confidence. appointment of his predecessor had stephen levine attracted criticism, as it was the first appointment of a Niuean New Zealand resident to the position and References the first time such an appointment had Guest, Stafford. 1996. Niue Economic been made outside the Niue Public Review 3 (5): 1–4. Service. ———. 1997. Niue Economic Review 4 Niue’s 22nd Constitution Day cele- (3): 1–4. brations in October were subdued, with emphasis given instead to the Levine, Stephen. 1995. Political Review: 150th anniversary of Niue’s first over- Niue. The Contemporary Pacific 7:155– seas trained missionary, Peniamina, 159. trained in Western Sâmoa by the ———. 1996. Political Review: Niue. The London Missionary Society. The Contemporary Pacific 8:191–197. commemoration took place during a ———. 1997. Political Review: Niue. The period when many Niue residents were Contemporary Pacific 9:236–242. having difficulty meeting ongoing commitments: telephone accounts, broadcasting license fees, payments SÂMOA on mortgages, and other loans. Never- theless there is a “hidden economy” The second half of 1996 to the first escaping statistical measurement and half of 1997 was dominated by issues the taxation system. There is a high relating to the by-elections following volume of imports—nz$4.8 million the general elections in April 1996, the for food and beverages and a further ongoing court cases between the chief nz$680,000 for motor vehicles in auditor and controller of finance and 1996—and nearly a million dollars the government, the dispute between was spent on hair-cutting and ear- Vaiusu village and the government piercing ceremonies. over land previously under the control As noted, Niue has managed to of the Western Sâmoa Trust Estate develop some additional revenue Corporation (wstec), the passport sources in recent years, including inter- scandal, and the country’s change of national phone-access coding, fishing name from Western Sâmoa to Sâmoa.