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Polynesia in Review: Issues and Events, I July I989 to 30 June I990

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Polynesia in Review: Issues and Events, I July I989 to 30 June I990 POLITICAL REVIEW • POLYNESIA Polynesia in Review: Issues and Events, I July I989 to 30 June I990 Reviews ofTonga, Tuvalu, and Wallis excise tax. In October 1989 Governor and Futuna are not included in this Coleman introduced a Financial issue because of unforeseen circum­ Recovery Plan, which included a list of stances. various causes of the $18-million-dollar deficit, a projected deficit summary, AMERICAN SAMOA and proposed solutions to the problem. The devastation wrought by Cyclone He continued to claim that the pre­ Ofa was the most dramatic event of vious Lutali administration was re­ 1989-9°. This was the first hurricane sponsible for the financial dilemma, to affect the entire Samoan archipelago and emphasized the importance of since 1966. It followed only three years cooperation from the legislature (fona) after Cyclone Tusi, which caused in order to avert a reduction in govern­ extensive damage in the Manu'a ment employees' working hours and Islands. Ofa swept through the Samoas layoffs. Annual step increments for fis­ during the first week ofFebruary 1990 cal year 1990 had already been frozen, leaving millions of dollars in damage to and it soon became apparent that the property, businesses, and government administration was prepared to services. The Territorial Emergency squeeze the workforce further. On 6 Management Coordinating Office December 1989 the governor immediately began to survey the extent announced that, unless thefana re­ of damage, and within days President pealed the 2 percent sales tax and Bush declared the territory a disaster passed the proposed 3 percent excise area. Fortunately, no lives were lost tax, government employees' working during the hurricane. hours would be reduced to thirty-five Relief from off-island was immedi­ per week. ate and well coordinated. The Federal The fano had already acted on sev­ Emergency Management Agency eral of the administration's proposed began accepting claims on 16 February, revenue-raising measures during the and grants were made available to fam­ November special session called by ilies that did not qualify for loans. The Governor Coleman. Taxes on tobacco, US Navy sent thirty Seabees to assist alcohol, poker machines, and firearms the American Samoa Power Authority products were raised, but there was no to restore electricity to outlying vil­ movement on the excise tax issue. lages. While the governor's criticism of the Prior to the hurricane, the territory's fona was quite open, he remained financial crisis had dominated local silent when it became known that the political affairs, and there was a con­ director of human resources had ig­ tinuing executive-legislative stalemate nored a general directive and author­ over the governor's proposed 3 percent ized more than thirty thousand dollars THE CONTEMPORARY PACIFIC· SPRING 1991 worth of salary increases for several and customs offices. Nor has the employees in his department. administration taken appropriate There was strong opposition to the action to reduce government expendi­ thirty-five-hour work week when it tures, especially by cutting back on went into effect on 15 January, espe­ unnecessary hirings and promotions. cially among the public school teach­ Although more than 80 percent of the ers. The teachers were upset that the annual budget is spent on wages and governor's order did not affect employ­ salaries, leaders have failed to recog­ ees who were considered to be provid­ nize that increasing taxes and reducing ing "essential services." The American working hours delay rather than solve Samoa Education Association and the deficit problems. Concerned Parents of American Samoa The race for the territory's seat in organized a series ofmeetings at which the US House of Representatives was various courses of action, including a beginning to take shape at the end of teachers' walkout, were discussed. A the period under review. Two new can­ petition was drawn up and circulated didates, Moaali'itele Tu'ufuli, former publicly while representatives tried to commissioner of public safety, and get legislators to support/ono action to Afoa Moega Lutu, former assistant restore normal working hours. There attorney general, issued the challenge was widespread agreement among the to incumbent Faleomavaega Eni public that workers were being penal­ Hunkin. Congressman Hunkin main­ ized for a financial crisis caused by cor­ tained a sound measure of popularity ruption in government. both within the territory and with con­ On 23 February 1990, in the wake of stituents in Hawai'i and on the US Cyclone Ofa, Governor Coleman mainland, and will be counting on this announced that the forty-hour work support for reelection in November week would be restored, and other 199°· pronouncements concerning the finan­ BILL LEGALLEY cial crisis mysteriously went with the wind. The 3 percent excise tax had finally died in the Senate in the week COOK ISLANDS prior to the hurricane. At the end of the period under review, American Editors' note: The 1988-89 review of Samoans were waiting for further reve­ the Cook Islands published in Volume lations regarding the effectiveness of 2(1) of the journal stated on page 165 the Financial Recovery Plan and the that the Cook Islands Party "won 13 of status ofthe government deficit. the 24 seats" in parliament. In fact, it The present Coleman administra­ won 12 seats. We would like to apolo­ tion, like all its locally elected predeces­ gize to the authors of the review for sors since 1977, has not demonstrated this error, and for any embarrassment prudent financial management. For it may have caused them. example, the 1989 inspector general's audit attributed annual losses of $2 It was generally a good year for the million to mismanagement in the tax government, but not for the opposi- POLITICAL REVIEW • POLYNESIA 193 tion, which fell further into disarray. government, Mr Henry has traveled The Cook Islands party came into much more than any of his predeces­ office in 1989 with only 12 seats in the sors. It is too early to evaluate the 24-member parliament. They were results. enabled to govern by a deal with the 2­ In December 1989, the Cook Islands member Demo Tumu splinter group, joined UNESCO as a full member, wid­ who were understandably well looked ening the range of international organi­ after. But in August 1989 an opposition zations in which it participates. member from Mangaia crossed the Economically the year was con­ floor in return for an assistant minister strained. Tourism is the nation's largest post, and in May 1990 the member for income earner. Tourist numbers Manihiki crossed after a similar deal. dropped by 3 percent in 1989, but grew Internationally, Prime Minister a little in the first half of 1990. Employ­ Geoffrey Henry, an impressive speaker, ment remained high, with, for exam­ was elected spokesman of the South ple, only 60 applicants for 165 posts Pacific Forum's annual meeting in Kiri­ advertised in May 1990 for a new gov­ bati in July 1989. Then in April 1990 he ernment hotel project. Quality control was elected chairman of the Standing on fresh fruit exports was not main­ Committee of the Honolulu-based tained, causing exports to be sus­ Pacific Islands Development Program pended several times while quarantine by delegates to the Third Pacific procedures were tightened. There was Islands Conference ofLeaders. almost certainly a decline in per capita The prime minister met with many real income, and the government -heads ofgovernment during the year. (much the largest employer) was un­ In addition to leaders ofSouth Pacific able to pay the six-monthly cost ofliv­ Forum nations, he had extensive dis­ ing adjustments that have been stan­ cussions with French Prime Minister dard for about a decade. Rocard in Tahiti and in France. France The government pins its economic has an obvious interest in the Cook hopes in the short term on tourist Islands, which is the nearest neighbor growth (with the government building ofFrench Polynesia, the location ofthe a luxury hotel to be managed by Shera­ nuclear testing facility. Official French ton), black pearls (with USAID and pronouncements promised lots of aid, other aid to extend the industry in though very little has yet materialized. Manihiki and develop it in Suwarrow), In April 1990, during a world tour and the international finance center. seeking aid, Henry met briefly with US When Australia, New Zealand, the President George Bush. The US interest United States, and some European is no doubt in Mr Henry's rise to high countries enacted tougher legislation to profile in the South Pacific and in the preclude their companies using tax fact that the Cook Islands has been less havens, the Cook Islands government critical of US strategic interests in the gave the industry more protection, and Pacific than most other island nations. an extensive clientele was located in Despite his intense criticism of the Asia. For the longer term, economic extent offoreign travel by the previous hopes focus on seabed minerals on the ,. I94 THE CONTEMPORARY PACIFIC. SPRING I99I Manihiki Plateau. These exist in vast imports from Fiji increased, and the quantities, but at great depth. Their Cook Islands government chartered value could range from nothing to vast vessels from Fiji and ordered a NZ$4.5­ amounts, depending on a host of varia­ million ship to be built by the Fiji Gov­ bles. ernment Shipyard for the interisland The government was in the process trade. That price is far above the capi­ of negotiating loans from Italy (for the tal cost needed for a suitable vessel, new hotel), France (to upgrade the and the ship can run only at a heavy power and water supply), Asian Devel­ loss to the taxpayer. At least two pri­ opment Bank (for housing and other vate operators offered to supply ships developments), and other sources.
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