Issues and Events, 1 July 2017 to 30 June 2018

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Issues and Events, 1 July 2017 to 30 June 2018 Polynesia in Review: Issues and Events, 1 July 2017 to 30 June 2018 Reviews of American Sāmoa, Hawai‘i, inflow of people to the islands” (CIN, Sāmoa, Tokelau, Tonga, Tuvalu, and 1 June 2017), so are able to anticipate Wallis and Futuna are not included in changes and demands for services and this issue. resources. However, eighteen months on, the official details of people’s Cook Islands mobility in and out of the country, This review covers the two-year period economic activity, housing, and well- from July 2016 to June 2018 and being are still not available. On the tracks a range of ongoing and emerg- face of it, it would seem that timely ing concerns. Featured here are the and informed public policymaking, implications from the 2016 population planning, and service provisions will census, Marae Moana (the national be impacted. But to some extent this marine park), the Cook Islands’ is not necessarily a bad thing, because impending Organisation for Economic population-related policies need to Co-operation and Development be informed by more than just demo- (oecd) graduation to high-income graphic trends, which invariably can country status, a controversial local be used to support the taken-for- tax amnesty, and events connected granted arguments typically associated with the 2018 general election. with the vulnerabilities and question- 2016 saw the five-year national able viability of small island state population survey get underway. development and economies (Baldac- Preliminary results of the 2016 cen- chino and Bertram 2009). sus, which was held on 1 December, Depopulation is a national concern recorded a total population of 17,459 and a political football (CIN, 31 May (mfem 2018c). Including residents 2018), especially given its implications and nonresidents (mostly tourists), for the country’s labor force and its the count shows a 2 percent decrease ability to support the tourism indus- from the 2011 census (mfem 2018c). try. However, it is important to also However, official reporting on popula- take account of the cultural and social tion trends was delayed, as technical imperatives that play a part in people’s problems with equipment meant that mobility, aspirations, and experiences, the data had to be sent to New Zea- which may help deepen understand- land for compilation. Nevertheless, it ings when interpreting population is expected that the census data will patterns and trends. For example, the show a further population drop, espe- cost of living and the ability to earn cially on the Pa ‘enua (outer islands), a living wage were the main concerns where development economist Vaine of the 2018 Minimum Wage Rate Wichman pointed out that island lead- Review Report (Government of the ers and public health workers “have Cook Islands 2018). The review panel a fairly good handle on the ebb and agreed that the Cook Islands Census 187 188 the contemporary pacific • 31:1 (2019) 2016 and 2016 Household Income make us a place that tourists want Expenditure Survey would serve as the to visit, cramming as many tourists analytical basis for setting the mini- on to Rarotonga isn’t the way to go” mum wage, along with a labor market (rnz 2017b). Despite the launch of assessment. However, in the absence the Cook Islands Sustainable Tourism of these major data sets, the panel Development Framework and Goals in concentrated on reviewing any major October 2016, which set some direc- changes since the previous report in tion for attending to the numerous 2017. The review panel considered tourism issues, Napa contended that that “the main employers of mini- without upgrading existing infrastruc- mum wage employees were the public ture and utilities, such as the roads, sector, small businesses and the few water, power, and sewerage and waste businesses in the Pa Enua” (Govern- disposal facilities, it would be difficult ment of the Cook Islands 2018, 3). to sustain the increasing number of As such, island administrations were visitors. Furthermore, demands on likely to respond to an increase in human resources, public services, and minimum wage by reducing the work accommodation capacity are increas- hours of minimum wage staff, assum- ing, as are the impacts on the lagoon ing that there was no increase in the environment. Of these concerns, Pa ‘enua funding model to help meet Prime Minister Henry Puna said, the new rate (Government of the “our elders gave birth to this industry Cook Islands 2018, 4). So while their but clearly, the future is in the hands take home pay would not change, of those growing up within it” (CIN, workers would have more time for 13 Oct 2017). In this regard, urgency other activities, including subsistence is needed in meeting these demands, farming and fishing. Regardless, the which may include making use of cost of living remains relatively high donor partners and aid. due to the country’s small population, Increasingly, ocean matters are of the reliance on imports to meet local political and public concern. In July consumption needs, and the distances 2017, the Marae Moana legislation that imported goods must travel, caus- to protect and conserve the Cook ing transport costs to affect the price Islands’ marine environment came of goods (Government of the Cook into effect. It established a multiple- Islands 2018, 7). use marine park covering the county’s Another aspect of the Cook Islands entire economic exclusion zone of population to consider is the increas- 1.9 million square kilometers (Burton ing number of tourists to the Cook 2017). After five years of consultation Islands. The environmental and social and planning with island communities sustainability of the country is now and various interest groups, Marae being put to the test with record high Moana is now governed by a national numbers of tourists reaching over council, which is chaired by Prime 150,000 in 2017 (rnz 2017a). Titika- Minister Puna. Current, related activi- veka Member of Parliament (mp) Sel ties include undertaking marine spatial Napa pointed out that “we should mapping, which is an important aspect be safeguarding the very things that of governing certain activities such as political reviews • polynesia 189 fishing, seabed mining, ocean explora- nz$320,000 rebuild, establishing the tion, and sustainable tourism activi- vaka’s status as a national treasure. ties. Marine protected areas around The Cook Islands Voyaging Society each island have been extended to aims to have “mama vaka” back in fifty nautical miles, designating an the water in 2019 to continue the area in which large-scale fishing and legacy of traditional sailing and navi- seabed mining activities are prohib- gation and ocean protection (CIN, 3 ited (CIN, 6 Feb 2018). As the world’s Feb 2018). largest marine protected area, Marae In response to being owed over Moana also contributes to the Pacific nz$33 million of back taxes, in 2017 Oceanscape project, of which the the Cook Islands Ministry of Finance Cook Islands is one signatory among and Economic Management (mfem) twenty-three other Pacific Island states put in place a tax amnesty. For a and territories. five-month period, all Cook Islands As ocean custodians, the Cook taxpayers were given an opportunity Islands’ governance and protection to clear tax debts or disclose evaded of our waters is also a key part of taxes without fear of prosecution. the indigenous renaissance of the The amnesty allowed all additional vaka moana (double-hulled voyaging taxes, such as late payment penalties canoe). The Cook Islands Voyag- and turnover taxes, to be written off ing Society has drawn on traditional (mfem 2017b). knowledge of vaka akonoanga (vaka News of the tax amnesty was part culture) to campaign alongside other of Prime Minister Puna’s Christmas Oceanic peoples, calling for the envi- message to the nation in December ronmental protection of the ocean and 2016. However, a law change was speaking out against climate change, required because the law at the time pollution, and unsustainable fishing only allowed a specific government operations. official, designated as the Collector of However, the Cook Islands Voyag- Taxes, the power to make individual ing Society suffered a setback when tax write-off decisions on a case-by- its vaka moana Marumaru Atua was case basis (CIN, 12 Jan 2017). The damaged by fire in September 2017, move was supported by both sides requiring a complete rebuild (CIN, 17 of the House, and the amnesty got Sept 2017). Funds toward the rebuild underway in August 2017. were offered from various local The amnesty was later extended to and overseas supporters, helping to the end of March 2018. During that establish the value of the Marumaru time, Minister of Finance Mark Brown Atua as a learning institution of vaka announced that the government culture and an icon of environmental decided to write off all outstanding sustainability. This was eventually tax prior to 1 January 2010 as part recognized by the government; Cook of the amnesty. Worth nz$18 mil- Islands Minister of Finance Mark lion, the intention behind the amnesty Brown announced a nz$255,000 was to ease the burden on people and (nz$100,000 = us$65,227) con- businesses as well as to enable the tax tribution toward the cost of the office to focus on the nz$14 million 190 the contemporary pacific • 31:1 (2019) debt, which had been accruing since do not calculate (Bertram 2016). 2010 (rci, 2 Feb 2018). This was Instead, the oecd was using gdp as a welcome news for those employees proxy to gni “to determine the gradu- and businesses with tax debts. Accord- ation status, which is wrong,” said ing to public accountant Mike Carr, mfem Financial Secretary Garth Hen- for those taxpayers who were up-to- derson (CIN, 2 Oct 2017).
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