TOP STORIES

PIDF is much ‘broader and inclusive’

Mixed reactions are emerging over the core aims of the Pacific Island Development Forum (PIDF) hosted by Fiji between 05^th -7^th August 2013. Chief among its supporters was Kiribati President Anote Tong who praised the summit for its broad and inclusive approach to addressing specific development challenges in the Pacific. President Tong is optimistic about the role of PIDF at international fora. He also applauded the forum organisers for the notable presence of the private sector and civil society representatives who he suggests are largely excluded from high-level political forums where the diverse challenges of the people are regularly decided. Fiji’s Prime Minister Voreqe Bainimarama suggested that the Pacific Islands Forum Secretariat (PIFS) could no longer attest to being agent of the entire Pacific Islands region. Bainimarama says that PIDF will be more representative of the interests and needs of Pacific islanders under a new framework for cooperation.

The forum did not end without controversy, as the timing of PNG Prime Minister Peter O’Neill’s’ visit to New Zealand drew speculation that New Zealand’s invitation was deliberately timed to coincide with the PIDF.

NZ’s Fonterra milk scare

The world’s biggest dairy exporter, Fonterra, a New Zealand-owned company, is embroiled in a contamination scare over its milk products exported worldwide, including some Pacific island nations. InVanuatu, authorities have issued a health warning until further advised. NZ Prime Minister John Key has since accused Fonterra of playing delay tactics over the contamination. Three batches of concentrated whey protein powder in infant formula and sports drinks were found to contain a strain of bacteria responsible for botulism, a fatal paralytic illness. As a result, China has imposed a blanket banon all milk products from New Zealand.

POLITICS

Pacific Plan – key findings

Former PNG Prime Minister & Pacific Plan Review Chairman, Sir Mekere Morauta has released the findings of the Pacific Plan review and says the Pacific Plan no longer reflects the changed political, economic and social circumstances in the Pacific. Sir Mekere highlighted the need for structural reforms to replace the obsolete arrangements that he claims are failing to capture the political values of the Pacific Islands Forum, as a relevant institution.  Sir Mekere suggested that Pacific pride was suffering as some island nations were lagging in development.

Vulnerability to external shocks including the environment, politics and fragile island economies were highlighted, along with an appeal for balance in handling the challenges of modernity and traditional ways within adapted institutional structures and mechanisms. Feedback from the review acknowledged that development challenges are not being matched by political will to chart a clear path and to re-forge the broken links between citizen voices and the political elite. 

Wamytan capitalises on schisms

Front de Liberation Nationale Kanak et Socialiste (FLNKS) leader Rock Wamytan capitalised on divisions within anti-independence parties in the French territory to be elected for the second time as president of the New Caledonia Congress. He last held the post in 2011 for one year. His election comes about at a crucial time in the run up to the 2014 congressional elections but commentators warned against reading too much into Mr Wamytan’s election in light of the Kanaks’ struggle for self-determination. The pro-independence groups, which currently boast 23 members in the assembly, would require at least two thirds of the 54-member body to have any chances of deciding their future at a referendum after next year’s poll.

Controversy persists in Tuvalu

Just when the dust seemed to have settled in Tuvalu after eight months of political crisis in the tiny Polynesian nation of just over 10,000, reports suggest the fate of the new government sworn in last week may still require a determination from the courts. Former PM Willie Telavi has defended his role in the political crisis, laying the blame squarely on the shoulders of Governor-General, Sir Italeli Iakoba, who had to use his special powers to order parliament to sit to elect the new cabinet.

Pacific responds to asylum plans

Australia’s planned ‘Pacific Solution’ is still dominating headlines around the region, as the first group of asylum seekers arrived in Manus island. Social forums like Sharptalk hosted in PNG have exploded with comments, mostly negative.  Oro Province governor Garry Juffa has called it ‘deplorable’, PNG’s opposition leader is challenging it in court and the Solomon Islands prime minister has rejected an overture to resettle some refugees in his own country.

Nevertheless, Australia’s Immigration Minister Tony Burke claims the new policy is already working, amidst reports that some asylum seekers in Indonesia are abandoning their plans to come by boat to Australia. Australia and Nauru are now planning for a third detention centre on the island, although media coverage of asylum issues there is likely to be stifled after censorship measures from the Nauru government. New Zealand has said it would consider taking some refugees once they have been processed.

ECONOMICS

Infrastructure indecision

Melanesian governments showed again how difficult it can be to move from strategy to implementation as furore arose around two major projects. In PNG, a USD 40 million deal making Vodaphone Fiji a major stakeholder in troubled BeMobile fell apart in a dispute over who would be contracted to build out new infrastructure for the company. In Vanuatu meanwhile, confusion reigned following the announcement of a USD 350 million airport and resort development scheme. A well-attended press conference cleared the air somewhat, but it remains to be seen whether final approval for the project will pass a parliamentary vote.

Caledonia debt cancelled

As rancour enveloped the anti-independence movement, the French government made a surprise announcement that it would write off a USD 385 million debt, accumulated in the 1970s and 1980s by the New Caledonian government when it convinced France to underwrite the cost of nickel. This write-off will give future New Caledonian governments more latitude in charting their course. The vision of a less-encumbered government might well provide additional fuel to independence advocates.

MSG trade mission

Papua New Guinea has led a trade mission to their Melanesian neighbours Solomon Islands to explore investment opportunities there. PNG companies in Solomon Islands account for about SID148 million worth of investment, which provide more than 3,500 jobs for Solomon Islanders. Solomon Islands’ minister for commerce and trade, Elijah Doro Maula said the mission would enhance the Melanesian Spearhead Group Agreement on trade and investments. Such missions look set to become even more regular among MSG countries with Fiji announcing recently that its trade with the MSG countries has gone up from less than 1% of total trade in 2000 to 8% in 2012.

Solomons amendment ire

Transparency Solomon Islands is raising questions concerning recent rushed amendments to the Financial Institutions Act, which it claims will effectively allow logging companies to run their own banks. This comes in the wake of a decision by the major commercial banks to close accounts belonging to logging companies. An unintended by-product of RAMSI’s stabilisation of the country, logging —often unregulated and even illicit— has been responsible for much of Solomon Islands recent economic growth.

‘Tens of billions’ from seabed mining

The Cook Islands government is seriously considering mining its ‘tens of billions of dollars’ of seabed resources. Mark Brown, Cooks Islands’ Finance Minister has held talks with some of the worlds biggest companies about licensing deals with the first tenders due to be granted before June 2014. Brown says the Cook Islands government is looking at having stakes in the mining companies for free in return for rights to exploit its seabed resources. The government has been considering the establishment of a wealth fund to manage revenues from this lucrative project. However, concerns persist about the negative impacts of seabed mining, including serious threats to marine environment.

BRIEFS

• There are claims in Solomon Islands relief supplies intended for disaster relief to Malaita flood victims are being sold for cash.
• New Zealand foreign minister Murry McCully begins his annual Pacific tour that takes him to PNG, Solomon Islands and Vanuatu.
• Chief Trade Advisor asks Papua New Guinea not to walk away from Pacer Plus negotiations.
• Kuwait is seeking more Pacific projects to fund.
• Australian opposition pledges to restore ties with Fiji.
• A Fiji Airways plane makes emergency landing at Auckland airport after an engine catches fire.
• There is a New Zealand pension rule change for Cook Islands, Niue and Tokelau.

Editorial content is the responsibility of Derek Brien, PiPP Executive Director.

This entry was posted on Wednesday, August 14th, 2013 at 6:00 am and is filed under Pacific Buzz. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.