The Cook Islands Democratic Party, which is part of the caretaker government, says the courts have no ability to challenge the decision of the Queen's Representative to dissolve Parliament, Radio NZ International reports.
Sir Frederick Goodwin dissolved Parliament last week after a by-election gave the opposition an apparent majority. New elections are to be held on 26 September, but the opposition said it would take legal action over the dissolution.
However, the Democratic Party said a decision by a Head of State, made under constitutional authority, is not open to judicial review.
The Demographic Party president, Makiuti Tongia, said the criticism of Sir Frederick's decision by MP and Speaker Norman George was unfortunate and as unwise as a misguided, rogue rocket.
Emergency declared in PNG’s
Southern Highlands
The PNG government has declared a state of emergency in the resource-rich
Southern Highlands province, Radio Australia reports.
Prime Minister Somare announced in parliament that the measure is an attempt to restore law and order but he gave no further details. About 700 police personnel will be deployed in the
Southern Highlands to restore law and order.
The Australian Associated Press reports security forces have been sent to the graft-ridden province and government controllers appointed to try to restore good governance.
Sir Michael has cited evidence of corruption within the provincial government, the theft of government vehicles and misuse of government buildings.
The provincial governor, Hami Yawari, has threatened that energy projects in the province could be affected if the central government interfered with his administration.
The province would be a vital link in a proposed US$3 billion pipeline project to bring natural gas from PNG to Australia.
(Source: PACNEWS 1: 2 August 2006)
Chief Justice Appointed
Tonga's Privy Council has appointed Anthony Ford as Chief Justice of the Supreme Court of Tonga, Tonga Broadcasting Commission reports.
Justice Ford will replace Chief Justice Webster when his term expires in September. Justice Anthony Ford joined the Judiciary in Tonga in 2000 as a Judge of the Supreme Court.
He has on several occasions acted as Chief Justice. Last year he was appointed to the Fiji Court of Appeal. Justice Ford from New Zealand had been working with Bell Gully Law Firm in Wellington for 30 years.
He joined the firm in 1970 after graduating from the University of Auckland with a Law Degree.
(Source: PACNEWS 3: 1 August 2006)
FPSA criticises wage cut calls
Fiji's union of government workers has hit out at the Governor of the Fiji reserve Bank for suggesting wage cuts to help stabilise the economy.
Fiji Public Service Association (FPSA) general secretary Rajeshwar Singh accused Savenaca Narube of being misleading to the people of Fiji when he spoke of a fundamentally strong economy three months ago.
"He had said that the economic fundamentals are very strong and we only had to work on our exports like sugar, garment and so on. He is singing a different tune now." Mr Singh said. Mr Singh said the public sector unions were still waiting on the government to call a meeting to discuss ways of reducing the costs of government operation.
He labelled advocates of a massive public service wage cut as mere "arm chair commentators who don't know about the repercussions."
The Fiji Chamber of Commerce recently threw its support behind the Reserve Bank of Fiji's suggestion that government should consider cutting the take home pay of civil servants to prevent further increases in interest rates.
Another unionist, Labour MP Agni Deo Singh said Fiji's dire economic situation is the fault of the government and they should not resolve the problem by trying to reduce the wages of others. Instead, all members of pariament, including the prime minister and government chief executive officers should have their salaries reduced, he said.
The public service wage bill constitutes 11% of Gross Domestic Product. The Reserve Bank of Fiji suggests that it could take two years to bring the Fiji economy bank to a sustainable state.
(Source: PACNEWS 2: 1 August 2006)
More Pacific investment needed for tourism market
Tourism was worth approximately US$1.23 billion to pacific economies in 2003.
With cheaper pacific airfares and new airlines servicing this market, the pacific region is all set for a tourism boom.
PITIC is assisting with this growth by hosting a series of tourism investment seminars throughout NZ; visiting Auckland, Wellington and Christchurch between 9-11 August.
The “Jewel in the Isles” tourism investment roadshow is an opportunity for companies to hear directly from visiting representatives of the Pacific Investment Promotion Authorities (IPAs).
Good investment structures and climates, and specifically opportunities within the tourism sector are offered and potential investors can make appointments to speak with IPA representatives. Roadshow registrations and appointments can be made online at http://www.pitic.org.nz/investment.htm.
Ms Jennifer Findlay, Marketing Officer for the Pacific Islands Trade & Investment Commission (PITIC) believes current investment levels need to be increased within the tourism sector to maintain its segment growth in the pacific.
“The Pacific region is not only a popular tourist destination for NZ independent travellers and the VFR market,” Ms Findlay said, “but also a close and untapped business economy with growing investment potential in the tourism sector”.
Major investments in infrastructure are currently taking place in Fiji (Denarau Island) and Samoa (Aggie Grey’s Resort & Spa), with smaller investments in the Cook Islands and Vanuatu.
New Zealand travellers make up 15.8% of tourist arrivals to the region, the second largest group behind Australia (23.6%) in 2003.
“It’s logical that pacific investment authorities look to New Zealand as a potential source of investment capital,” Ms Findlay said.
The South Pacific Tourism Organisation has forecast 9% growth in the tourism sector for 2005, equating to 1.28 million tourist arrivals.
This is in line with their current estimated figures of 1.08 million tourist arrivals in 2003, and 1.18 million in 2004. The World tourism data also reflects this upward trend with an actual average of 8% growth over the first four months of 2005 (WTO World Tourism Barometer, June edition).
In financial terms, tourism accounts on average for up to 75% foreign exchange, 50% GDP and 12% of formal employment for Pacific Island countries.
Attend the “Jewel in the Isles” tourism investment roadshow and network with companies that have a passion for the pacific. For appointments and registrations see http://www.pitic.org.nz/investment.htm or contact Ms Findlay directly on 09 302 0465.
July 2005
For the rest of the article click on the link below: (Source: Islands Business, August 2005)
ANZ Eyes Stronger Pacific Presence
What kind of finance do you need?
Should you put your own money in, borrow, or find an investor?
There are several sources of finance for developing your business. The best source depends on what you will need the money for and how much it will make your business grow.
Your own money, or money from people you know
The most common source of finance for small business development is the owner’s savings or a mortgage raised against the owner’s home. Often, finance is also raised from family or friends. You might also keep your profits in the business to fund expansion.
The advantage of using your own money to fund business start-up and growth is that you keep control of your business.
Banks and finance institutions
The second most common source of finance for small business expansion is loans from banks and other finance institutions. There are several types of loans available, from short-term loans to permanent overdraft facilities, to seasonal lines of credit, to leasing and hire purchase arrangements for new equipment and machinery.
Generally, banks and other financial institutions will secure their loan against your business or personal assets. They’ll also expect to see evidence that your business is on a sound financial footing
John MacFarlane is looking at making a big impact in the Pacific by confirming last month that his banking group is, with all seriousness, going to expand and deepen its already strong presence in the region.
For more detail, read How to get a loan from a bank
Angel investors
Angel investors are people who invest in promising businesses, often at an early stage. Generally, angel investors are experienced businesspeople who have spare investment funds. They’re interested in good returns, but they’re also attracted to the idea of backing a young, energetic company and helping it grow.
Angel investors usually stick to industries they know well. This minimises their risks and also allows them to use their knowledge and contacts to help the business grow. They also tend to invest in businesses they can visit. It's unusual for an angel to invest in a business that they can't get to within a few hours.
A typical investment for an angel investor is up to around $1 million. This is less than a venture capitalist will usually invest but more than many small businesses can get from banks. In return, an angel investor will expect returns of around 20-30 percent and possibly an ownership interest in your business. They are particularly useful when you need money for your idea (for example, to build prototypes or carry out research) but you have no track record to help you raise capital from banks or venture capitalists.
To find angel investors operating in your area, contact:
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your accountant or lawyer
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Venture capitalists
Venture capitalists are companies or fund managers that provide cash in return for part-ownership of your business.
Unlike angel investors, their core business is investing in other businesses. To attract venture capitalists, you’ll need a watertight business case. They’re generally interested in investing reasonably large sums in return for a share of ownership. They aim to invest in companies with high growth potential and expect returns of around 30 percent to 50 percent.
A venture capitalist who invests in your business will want to play an active role, ranging from placing a manager in your company to helping with strategic alliances. At the least, they’ll require places on your board of directors.
In addition to their money, venture capitalists will bring considerable expertise in business growth, including: strategy management; board participation; international contacts; industry knowledge; expansion advice; strategic alliances; marketing assistance; financial structuring.
Venture capitalists will typically stay for a handful of years, seeing the company through a period of high growth, then sell their shares.
For more information on venture capital visit:
Vcapital
The website includes links to venture capital companies and templates on preparing business plans and investment documents. [vcapital website.]
New Zealand Venture Investment Fund Ltd (VIF)
VIF is a Crown Owned Company and is responsible for implementing the New Zealand Government venture capital programme. [VIF website.]
Escalator service
You can get help finding venture capital through the New Zealand Trade and Enterprise [NZTE] Escalator service. [NZTE website.]
New Zealand Venture Capital Association
The Association represents New Zealand venture capital companies. [NZVCA website.]
Grants
Depending on the type of business, you may be eligible for a government grant.
Read more about Government grants and assistance [on this website]
Source: www.biz.org.nz website. For the direct link click here. March 2006
Budget Passed
The PNG government has passed a supplementary budget of K682.5 million (US$230.9 million) to improve service delivery and repair infrastructure throughout the country.
PNG Treasurer Sir Rabbie Namaliu said the windfall gains from the recent spike in commodity prices means the Government now expects a budget surplus of K682.5 million (US$230.9 million) in 2006.
It decided to spend the money on areas which have not been adequately funded under the 2006 budget and past budgets. Priority areas of the government’s national development blue print, the Medium Term Development Strategy (MTDS), would receive the highest allocation of 80% - which amounts to K544.6 million (US$184.3 million).
MTDS priority projects would receive K455.8 million (US$150.8 million) of this amount. Sir Rabbie told Parliament this allocation represents a significant investment in rehabilitating some of the nation’s essential economic and social infrastructure that has deteriorated over the past 30 years.
The MTDS priority areas comprise [of] hospitals and other health services, rehabilitation and maintenance of transport infrastructure including the Highlands Highway rehabilitation, law and justice sector, basic education and promotion of income earning opportunities.
The health sector rehabilitation plan and the Highlands Highway Rehabilitation program will each receive K70 million (US$23 million).
The district transport infrastructure program also receives a significant funding of K44.5 million (US$15 million). Police and nurses housing will receive K40 million (US$13 million) while urgent airport repairs and upgrade will receive K32 million (US$10 million).
On top of that, Police would receive K8 million (US$2 million) in pay rise. The government would also spend K22 million (US$7 million) to improve roads and bridges and K20 million (US$6,000) to improve roads to commodity producing areas.
The next highest spending of K172.8 million (US$58.4 million) would go towards meeting the government’s outstanding commitments.
(Source: PACNEWS 2: 2 August 2006)
Income Tax Public Consultation set to begin
Office of the Minister of Finance
PRESS RELEASE
16 August 2006
The Minister of Finance, Hon. Siosiua T.T. 'Utoikamanu announced the beginning of the Income Tax public consultation process.
"In May this year, we released the Income Tax Bill to the public seeking submissions and feedback on the changes being proposed to the current Income Tax system. Because these changes will affect the lives of nearly every man, woman and child - it is vitally important that we debate and discuss them in the public arena before making a final decision," said the Minister.
"The introduction of Consumption Tax on 1 April 2005 was the first phase of the revenue reform programme. We are now ready to move onto the second phase which is the reforming of personal and company Income Tax. Tonga's economic environment has changed and it is timely to reform Income Tax so that it aligns with our current situation," he said.
The Minister of Finance said, "Revenue Services will be conducting public consultation throughout the Kingdom on the proposed Income Tax changes. We will be consulting widely so that the public and key stakeholders are given the opportunity to provide their views on the proposed changes."
The Minister also said that he "will establish an independent Income Tax Committee made up of prominent members from the public, private sector and key stakeholders to consider submissions from the public. This Committee will be supported by my Senior Officials from Revenue Services and Treasury."
"This exercise is going to be extensive because everyone should be given the opportunity to have their say on the Government's proposed Income Tax changes. Once the Committee, has compiled all the public feedback, it will be presented to Cabinet to assist in its final decision," said the Minister.
The Reform Information Office will send out the timetable and venues for the public meetings being held so that you can provide your views to the Committee.
ENDS
Contact:
Office of the Minister of Finance
Reform Information Office
Ph: 21 030
e-mail: rio_tonga@yahoo.com
www.tonga-now.to
