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.

PNG-Australia asylum deal sparks debate

Kevin Rudd’s policy of transferring all asylum seekers arriving by boat to Papua New Guinea for processing and resettlement may prove to be an election winner in Australia. In PNG it has sparked widespread social media condemnation of the O’Neill government, and raised concerns about how the country could manage an influx of asylum seekers, and where they would be resettled. The policy bombshell was announced in the same week serious concerns were exposed about the outsourced security and management arrangements at the Manus island detention centre. Other countries in the region may be asked to sign up, despite views that the policy treats the Pacific as Australia’s dumping ground. Fiji’s foreign minister, Ratu Inoke Kubuabola, has criticised the policy and its implications for all Melanesian countries.

Airport deal completes Vanuatu’s infrastructure strategy

Monday’s announcement of an agreement with a Singapore-based conglomerate to build a privately funded airport capable of handling long-haul, wide-body aircraft is only the latest of a series of ambitious infrastructure projects in Vanuatu. In addition to ongoing public works projects, Australia has committed a further AUD 20 million to improve roads and sanitation in the capital, Port Vila. Japan is building a new hospital and providing a USD 70 million loan for a wharf rehabilitation project that is expected to reduce import costs and double throughput following its completion in 2017. A USD 100 million loan from China is being negotiated for the construction of outer island roads. A USD 30m fibre-optic submarine cable should make landfall in November and be ready for service in January 2014. As far back as 2008, air transport, shipping and communications were identified as key factors in the country’s development.

POLITICS

Asylum seekers riot in Nauru

Recent rioting on Nauru by asylum seekers caused a security scare for the entire island nation of about 10,000 people, with claims that the government’s response was panicked, and led to volunteers being called up to help quell the riot. An example of the risks posed by the scheme, the riot also highlights the extra ‘administrative and legal headaches’ for hosting countries. Australian immigration minister, Tony Burke, has promised to review both the Nauru riot and the Manus rape claims to prevent future incidents, and tighten loopholes. Nauruans have reportedly resented the asylum seekers not appreciating their hospitality. Up to 150 asylum seekers have since been arrested and charged while the island nation’s Australian police boss remains suspended.

New partnership deal for Solomon Islands

As Australian Prime Minister Kevin Rudd was inking asylum seeker deals with PNG, his foreign minister, Senator Bob Carr, was in Solomon Islands to mark the 10^th anniversary of the RAMSI intervention, and to also forge an enhanced partnership with the Solomons. There was also talk about processing asylum seekers in the Solomons.

Prime Minster Gordon Darcy Lilo thanked RAMSI and said it was up to ordinary people to make sure the country does not slide back to civil war. As if emphasizing his point, reports emerged of tension around the Goldridge mine.

RAMSI’s military component has wound down but the new partnership will add new aid support for sectors such as justice services and public sector management as well as traditional sectors like health and education.

The Solomons’ prime minister also spoke of the importance of the MSG when hosting the Vanuatu prime minister during a bilateral visit.

Concerns over media freedom

A Nauru MP has raised concerns about government restrictions on media in a letter addressed to the acting president, David Adeang. Mathew Batsiua accuses Mr Adeang of directing Media Nauru to refrain from airing an interview with him. In Samoa, meanwhile, the prime minister scoffed at accusations that he intended to exert influence over the media through the creation of a government-dominated media council. Opposition politicians had characterised Samoa’s media environment as ‘getting closer to what’s happening in Fiji.’

ECONOMICS

New trade deal with US

As negotiations on trade deals between Pacific island countries and Europe, Australia and New Zealand remain deadlocked, a new deal is to be discussed with the United States. Reports of the latest meeting of Pacific trade ministers in Samoa suggest that the US is keen on accessing the region’s tuna stocks, whilst it is less clear what the island countries would benefit from most. It was also reported that Australia’s new trade minister, Richard Marles, is keen to revive discussions on the much maligned next phase of the Pacific Agreement Closer Economic Relations (known as PACER Plus). As the former parliamentary secretary for Pacific island affairs, Marles will know too well the challenges of concluding a deal that focuses solely on free trade arrangements without careful consideration of the ‘plus’ elements of a deal that would enhance regional economic integration.

Fiji sugar industry threatened

A looming strike action by members of the Fiji Sugar and General Workers Union remains although a 5.3% pay increase for mill workers has been announced. According to Fiji sugar expert Dr Padma Lal, any future industrial action could cripple the industry— the source of livelihood for more than 200,000 Fijians. Last week, in fulfillment of the legal requirement for staging an industrial action, 65.7% of union members voted to go on strike if their working conditions were not improved. Despite this threat the government is adamant that the mills will operate one way or another because of the significance of the industry to the Fijian economy.

BRIEFS

• Fiji won’t accept Australian High Commissioner
• Russia has conducted its largest military exercises since the Soviet era
• Fiji’s Labor party temporarily suspended
• Vanuatu Opposition fails in latest motion challenge and election petition
• Former Bougainville Commanders reconcile
• Protestors confront New Zealand spy agency allegations
• Vanuatu commemorates 150 years since the blackbirding era

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

Micronesian Presidents summit

Finance and fibre-optic cables seem to have topped the agenda at the recently concluded Micronesian President’s summit held in Palau. The Presidents of FSM, Palau and Marshall Islands also discussed “Compact impacts” (referring to their Compacts of Free Association with the US), the upcoming Pacific Islands Forum meeting in the Marshalls as well as the potential use of drones for maritime surveillance in their areas.

Tonga’s public debt pressures

New analysis of the Tongan economy presents a bleak picture. On top of falling remittances and low export performance, the country remains crippled by its huge public debt. Of its USD 174 million total external debt, the Tongan government owes nearly USD 112 million, equivalent to a third of its economy, to the EXIM Bank of China. A state owned enterprise, the EXIM Bank is mandated to facilitate Chinese exports and imports and assist Chinese companies in offshore project contracting and investment. The Tongan government have asked for more development assistance to help ease the pressure of huge loan repayments, and is counting on new capital projects to stimulate the economy.

POLITICS

Rudd visit to PNG offers police, immigration softening

Australian prime minister Kevin Rudd and his Papua New Guinean counterpart, Peter O’Neill, have agreed to co-operate more closely to help resolve PNG’s chronic law and order problems. They have announced an initial 50 Australian police will deploy to PNG before the end of the year to help police in Port Moresby and Lae.

PM Rudd also brought his minister for trade Richard Marles and the new immigration minister Tony Bourke. Healthcare, the West Papuan issue and managing the asylum processing centres on Manus island were also high on the agenda. Following his recent trip to Indonesia, Rudd wants to ensure a “regional response” to the issue. Rudd has also started to address one of the biggest issues in the relationship – visas. Papua New Guineans can now use the “Australia New Zealand” line at Brisbane and Cairns airports.

PNG is also debating important constitutional amendments, which would extend the grace period of governments from 18 months to 30 months. PM O’Neill says it will bring much needed stability but the Opposition claims the changes are dangerous.

Australian defence needs a Pacific focus

A new Australian Strategic Policy Institute paper says Canberra needs to focus on defence policy in the Pacific, while the Pacific Institute of Public Policy released an opinion piece arguing the need for Australia to engage with Melanesia through the MSG, questioning why the recent Australia Defence White paper doesn’t even mention Melanesia or West Papua despite them being key strategic issues.

As RAMSI pulls out of the Solomon Islands after 10 years, there are also renewed questions about insecurity and a warning about the potential for future riots. This reflects concerns raised in a recent survey about the level of dissatisfaction felt by many Solomon Islanders over basic service delivery.

Climate and disaster risk roadmap

Fiji hosted the first joint meeting to bring the Pacific Platform for Disaster Risk Management (DRM) and Pacific Climate Change Roundtable together to work on a regional roadmap of co-operation. Organisers say there is a strong link between climate change and disaster management.

Meanwhile as Australian PM Kevin Rudd announced plans to change Australia’s carbon price from a fixed to floating price in line with the EU, China and the US have held talks on addressing climate issues. An agreement was reached on limiting hydro fluorocarbons, while both countries, the world’s largest emitters, aim for more co-operation on climate change despite their many differences on other issues.

ECONOMICS 

More financial blows for Tonga

As if a bleak economic forecast wasn’t enough, New Zealand has suspended its NZD 3 million tourism aid to Tonga over concerns about the safety of Tonga’s newly acquired MA60 aircraft donated by China. Tongan authorities have been put under pressure to get proper certification for the aircraft before New Zealand can reconsider its decision. TVNZ reported that the main reason for the suspension was because of the aircrafts poor ‘safety record’, although Tongan airline, Real Tonga, claim the decision was made to protect New Zealand-owned airline company, Chathams Pacific, who have since abandoned their own intra-island service in Tonga.

Build, neglect, rebuild – the state of infrastructure

Poor maintenance and the premature deterioration of infrastructure is the topic of a new report released by the Pacific Region Infrastructure Facility, a multi-donor partnership. The report, Infrastructure maintenance in the Pacific: Challenging the build-neglect-rebuild paradigm [pdf – 170 pages], draws on case studies from around the region and details the profound adverse consequences for development and people’s lives. It also emphasises the need to consider the potential liabilities of new infrastructure projects, which are often donor led or require substantial loans.

Trade deal with Europe stalled

The troubled negotiations on a proposed Economic Partnership Agreement between Europe and the Pacific have been suspended by the European Union. It seems the main sticking points in negotiations are the demands from Europe to have national laws amended that deal with the management of fisheries resources and the hesitation from some Pacific countries to extensive liberalisation of import tariffs. Vanuatu has also led the charge to have market access issues for kava resolved under any new agreement. Pacific leaders had previously requested that a deal with Europe be concluded this year, although this is now looking unlikely.

BRIEFS

• Solomon Islands launches a new government network in the wake of the increasing use of ICTs for development.
• A no confidence motion against Vanuatu prime minister Moana Carcasses has been thrown out by the speaker of parliament, but the PM’s Port Vila seat, along with five others from the same constituency, is being challenged.
• Former chairman of the PNG Public Services Commission, Rigo Lua, is sworn in as the new PNG chief Ombudsman.
• Kiribati celebrates 34 years of independence
• Resettled Solomon Islands families will have their own land.
• A new Australian minister in the Rudd government distances herself from West Papua support.
• NGO Coalition on Human Rights raises concerns over security forces brutality and continued restrictions to freedom of expression in Fiji.
• Small Islands Developing States prepare for a global gathering in Samoa next year.

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

Rudd returns as Australian PM

After three years of maneuvering his way back into the top job, Kevin Rudd is prime minister again following a Labour leadership spill. Julia Gillard has gone to the backbench and several prominent ministers have resigned. Rudd’s new cabinet line-up keeps Bob Carr as foreign minister and former Pacific parliamentary secretary, Richard Marles, has been promoted to cabinet as minister for trade, while Matt Thistlewaite remains the current parliamentary secretary for the Pacific.

Asylum seeker policy is the most pressing issue for Australia ahead of bi-lateral talks with Indonesia next week, while human rights group remain concerned over processing centres on Manus island in PNG and Nauru.

MSG countries begin trading duty free

Fiji, Papua New Guinea and Vanuatu have started trading duty free amongst themselves under the Melanesian Spearhead Group Trade Agreement (MSGTA). Solomon Islands has indicated that it will revisit the timeline for its tariff reduction schedule. The move is widely seen as a positive step in intra-MSG trading, although the Vanuatu Manufacturers and Exporters Association have expressed concerns in local media that the new trading arrangements will be harmful to local industry. MSG member countries are now exploring ways to deepen the trade arrangements to include trade in services, labour mobility and membership from other interested Pacific island countries.

POLITICS

Obama’s climate change challenge

US President Obama has made a major climate change policy announcement, declaring that the days of big polluters paying nothing for their emissions is over. As if to emphasise his announcement, the capital of the Marshall Islands, Majuro, was flooded prompting a national disaster response. Marshall Islands will host this year’s Pacific Island Forum and say they want firm commitments on reducing emissions from the big players. One US Senator, Brian Schatz from Hawaii, has introduced an amended bill on immigration that would allow Pacific islanders suffering from climate change to be resettled in the US.

Russia stands by Fiji

Commodore Frank Bainimarama has used a state visit to Russia to sign several memorandums of understanding on issues relating to defence, visa-free entry and the establishment of a new Russian cultural centre for the Pacific, based in Fiji.

Russian prime minister, Dmitry Medvedev, says Russia stands by Fiji and wants it to develop according to its own timetable without outside interference.

Meanwhile, Fiji troops are moving into the Golan Heights as part of a new, and potentially dangerous UN deployment there. Former coup leader and prime minister, Sitiveni Rabuka, has lashed out at Commodore Bainimarama in a speech at a New Zealand conference.

MSG summit wraps up

The MSG summit held in Noumea has wrapped up after celebrations marking the 25^th anniversary of the organisation. Recent summits have focused on trade, but this summit was notable for politics – supporting the West Papuans and Kanaks in New Caledonia towards self-determination. PiPP has special coverage of the MSG summit here.

Tahiti arrests over journalist’s murder

Arrests have been made in an ongoing investigation into the murder of a Tahitian journalist. President Gaston Flosse has long denied ordering the death of Jean Pascal Couraud, yet the opposition has asked for the investigation to widen. Flosse has also attacked the UN over its decision to put Tahiti back on the UN Decolonisation List. 

ECONOMICS

Kiribati urged to live up to its word on protected area

Kiribati is increasingly coming under pressure for its controversial EU-Kiribati fisheries protocol signed outside of the Parties to the Nauru Agreement (PNA). The fishing agreement has raised serious concerns among politicians, scientists and environmental groups over claims president Anote Tong made in 2008 that Kiribati would host the world’s most effective marine protected area when it created the Phoenix Islands Protected Area. Concerns remain that Spanish vessels are not paying their fair share for the fisheries resources and that they have unlimited access. EU rapporteur on the agreement has since written to the Kiribati government (pdf), among other concerns, seeking further clarifications on why the agreement failed to honour provisions of the PNA. Since allowing four large Spanish purse seiners into its waters, Kiribati overshot their quota in 2012— forcing other PNA members to close off their waters and sacrificing anticipated revenues.

Meanwhile, tiny Palau is looking at the possibility of using drones to enforce a proposed commercial fishing ban to be introduced next year.

PNG continues to build trade relations with its close neighbours

Following on from his recent visit to Indonesia, Prime Minister Peter O’Neill has led another large trade delegation composed of cabinet members and PNG businessmen to Australia’s northern city, Townsville. As a direct result of the visit, for the first time Port Moresby and Townville could start seeing direct flights linking the two cities to facilitate better access and improve business links. Queensland has also committed to build a hospital in PNG’s western provincial capital of Daru. PM O’Neill brushed aside suggestions that more Australian investments would stifle local businesses, encouraging PNG nationals to go into joint ventures. Port Moresby and Townsville have an existing sister-city relationship that spans 30 years.

OTHER NEWS IN BRIEF

• New Caledonia marks 25^th anniversary of the Matignon Accords.
• Australia and Japan clash at the International Court of Justice over Japan’s whaling activities.
• Nauru, Niue and Tuvalu leading the way on fossil fuel reduction.
• Following a long delayed by-election in Tuvalu, the opposition is calling on the Governor General to reconvene parliament.
• A new think-tank, Pasifika Policy Centre, is planned in Auckland.
• Samoan women achieve a significant milestone in their battle for better representation in their national parliament.

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

West Papua decision delayed: MSG summit gets underway

Political leaders and officials from Fiji, Papua New Guinea (PNG), Solomon Islands, Vanuatu and New Caledonia’s indigenous political movement—the Front De Libération Nationale Kanak et Socialiste (FLNKS)—have gathered in Noumea for the Melanesian Spearhead Group (MSG) summit.

Members will discuss a wide range of issues including nuclear transshipments, a Melanesian free trade agreement, and support for the independence push by the FLNKS. West Papua’s bid to receive full membership in the group, as part of its ongoing struggle for independence from Indonesia, is also high on the agenda. While Australian foreign minister Bob Carr has argued that anyone lending credence to West Papua’s goal for independence would be taking part in a ‘cruel deceit’, human rights lawyer, Jennifer Robinson suggests otherwise. Recent reports suggest that a decision on granting membership will now be deferred until the MSG sends a mission to Jakarta and Jayapura later this year.

West Papua’s hopes for inclusion in the MSG took an initial blow when a high-powered PNG delegation to Indonesia was organised to take place during the MSG summit. The bilateral discussions are said to be focusing on border issues, trade and extradition agreements. The timing of the meeting means that PNG Prime Minister Peter O’Neill will not be attending the MSG summit. An Indonesian contingent with Melanesian lobbyists among its ranks is attending however.

This summit also marks the end of Voreqe Bainimarama’s MSG chairmanship and the handing over the position to Victor Tutogoro of the FLNKS for the next two-year term.


 

Stronger regulation needed for deep-sea mining: workshop

The Secretariat of the Pacific Community’s Applied Geoscience and Technology Division (SOPAC) held a workshop in Vanuatu on potential social impacts of deep-sea mineral (DSM) mining. One of SOPAC’s pronounced goals is to assist with coordinating the regulatory framework [pdf] of deep-sea mining within the Pacific region. Arguments have also been put forward to manage DSM resources in a fashion similar to the system in the Parties to the Nauru Agreement (PNA), in which Pacific fishing resources are handled.

In the workshop’s introductory session, Vanuatu’s lands minister, Ralph Regenvanu revealed his own surprise at discovering that Vanuatu had issued 145 DSM exploration licences over the last 5 years and suggested that wide public consultation was necessary before further DSM activities could take place. Regenvanu’s revelations came amid calls for greater transparency on DSM activities from Vanuatu’s national council of women and the country’s Christian Council of Churches. Canadian mining company, Nautilus insists that it followed all the procedures required by Vanuatu in respect to its own exploration licence applications.

Meanwhile, Nautilus revealed that it had completed a CAD40 million rights offering, with proceeds set to be used to continue the funding of contracts for seafloor production tools. The company also continues to work on settling litigation issues with Papua New Guinea and the Solwara 1 project.

POLITICS

Nauru gets new parliament

After nearly a month of parliamentary deadlock and constitutional crisis, the Republic of Nauru has had to go back to the polls to elect 19 representatives to form the nation’s 21st parliament. Among those freshly elected is the country’s second female MP since independence, Charmaine Scotty. They were sworn in on 10 June. New president, Baron Waqa, was elected with the backing of 13 MPs before he proceeded to announce a six-member cabinet.


 

Fijian politics

Nirmal Singh, spokesman for Fiji’s new People’s Democratic Party (PDP) has stated that the PDP would not join the other registered parties as a member of the United Front for a Democratic Fiji (UFDF), citing a desire to move away from past, failed parties and leaders. Fiji Labour Party (FLP) leader, Mahendra Chaudhry, criticised the PDP for creating disunity as his FLP and the UFDF try to move Fiji toward a ‘genuine democracy’. The UFDF again called on the interim government to disclose salaries. Attorney general Sayed Aiyaz Khaiyum has stated that incomes would be revealed in July.

Meanwhile Fiji’s foreign minister, Ratu Inoke Kubuabola, has suggested in an interview with Russian media that Fiji has little interest in whether or not it can rejoin the Commonwealth, going on to say that Fiji now places more importance on the Non-aligned Movement. Fiji’s non-membership in the commonwealth also came into focus in a recent investigative piece in the UK, where undercover reporters offered British MPs money to lobby for Fiji’s readmission into the Commonwealth. The BBC has refused to apologise to Fiji, which complained about the action.


 

Solomon Islands MPs in hot water over non-disclosure of assets

Well over twenty Solomon Islands members of parliament could be in hot water for non-disclosure of their financial assets to the Leadership Code Commission. The Commission chairman Emmanuel Kouhota stated that the MPs, whose names have been withheld, could be fined USD 700 if they are found guilty. They have been given 60 days to respond in writing to the charges. Among those charged are 15 senior public servants.


 

US to enhance regional presence

American troops’ presence in Australia will increase five-fold next year, with 1,100 US Marines to rotate through Darwin. Such an increase is set to help Australia develop its ‘amphibious capabilities’, while enhancing the US military position in the region.  A new US Government report (pdf) states the US Department of Defense (DOD) will need considerable time, which is likely to extend beyond 2018, to complete an integrated master plan to unlock the proposed Guam military build up. DOD also estimates it would cost approximately USD 12.1 billion to implement its realignment plan initiatives in the Pacific, not including the Australia segment.

ECONOMICS

Fisheries agreements and trade talks

Pacific island parties have reached agreement with the US for an interim deal, which will see the US pay $94 million for 12,450 fishing days (equivalent to $7,590 per day). The payment is much larger than previous agreements, where the US paid approximately $21 million per year. The interim agreement will last for 18 months, allowing for continued negotiations between Pacific island parties and the US, which have been unable to reach a final agreement.

Meanwhile, Pacific island countries are threatening to walk away from talks with the EU over an Economic Partnership Agreement (EPA). Conflict is centred on the fisheries chapter of the EPA, with Pacific island countries accusing the EU of using the agreement to undermine the PNA’s vessel day scheme.


 

Other fisheries news

The biggest fish processing plant in the region has opened in Lae, PNG with Prime Minister Peter O’Neill suggesting that the Thai-owned plant could create close to 7000 jobs. Meanwhile, South Korean firm, Dongwon Industries has outlined a USD34 million plan to invest in a tuna cannery and factory in Doma in Solomon Islands. In Vanuatu, communities in Santo have expressed both surprise and concern over plans to establish a fish processing plant within the town limits of Luganville.

Vanuatu is also experiencing challenges in relation to a ‘yellow card’ it received from the European Union for the failure of some vessels to comply with international fishing legal obligations. Meanwhile, the Marshall Islands imposed a USD 120,000 fine on a Chinese long-line fishing boat found to be in violation of fishing boundaries and to have a number of shark fins and skins on board.


 

Tonga releases largest ever budget

The Tongan Government has delivered its largest ever budget, with spending of T$357.6 million equivalent to a 5 percent increase on last year’s budget. More than half of total spending is being funded by development partners, with T$35.7 million provided in the form of budget support, T$50.3 million in cash for development projects, and T$108.5 million as in-kind assistance. The budget is being released at a time of continued economic stagnation. The economy is forecast to grow just 0.5 percent, given a sustained fall in remittances of 50 percent. However the debt situation has improved: the government announced that the IMF and World Bank Debt Sustainability Assessment has downgraded Tonga from “high risk” to “moderate risk”. This comes at a time when Tonga begins to repay the principal of an estimated T$120 million loan from China for reconstruction of Nuku’alofa.


 

Ups and downs in PNG mining

A $6 million asset writedown by Newcrest Mining has Papua New Guinea’s government worried. Prime Minister Peter O’Neill is set to meet with officials from the company later in the week. The writedowns focus mainly on the company’s gold operations in the Hidden Valley. O’Neill has not ruled out offering assistance to the beleaguered goldmine to limit damage to the country’s economy.

Meanwhile, perhaps signalling ongoing confidence from investors, a third LNG project for PNG looks set to go ahead. Australia’s Horizon Oil and Japan’s Osaka Gas have agreed to partner and commercialise the Stanley Gas fields in Western Province.

Moody’s rating agency recently maintained its outlook on PNG, citing ‘robust growth and low public debt’ with decreasing political risks.


 

OTHER PACIFIC ISLANDS NEWS IN BRIEF

• More Global Fund money is being allocated to fight HIV/AIDs and STIs in eleven Pacific countries.
• China is backing the Pacific Islands Development Forum meeting in August with more funds.
• Widespread concerns have been expressed on the future of the Samoan tourism industry. The PNG Lamana Group however, plans to a build five-star resort there.
• Vanuatu will pass new laws to introduce a Temporary Special Measure (TSM) of a 16-year quota of 30-34% of seats to be allocated to women in all municipal councils.
• Palau continues to lobby the US Congress on their Free Association Compact, which has taken some time to approve.
• The delay in appointing a new PNG chief Ombudsman has been questioned.
• Australia is helping drought-stricken Marshall Islands, which is facing an acute shortage of food and water.
• Tiny Tuvalu recently took its climate change message to one of Italy’s biggest arts festivals.
• There are genuine concerns over the impact of an impending CNMI retirement fund collapse.

Editorial content is the responsibility of Kiery Manassah, PiPP’s online editor, and Stephen Howes, Devpolicy Director.

PNG repeals Sorcery Act, enacts death penalty

The parliament of Papua New Guinea has responded to a spate of globally publicized crimes with legislative amendments. In the same session that the Sorcery Act, which provided a defence for violent attacks on suspected sorcerers, was repealed, the parliament voted to apply the death penalty to a longer list of crimes — including high-level corruption — by imposing stricter penalties for white-collar crimes, kidnapping and theft.

While there was much praise for repealing the sorcery legislation, the death penalty changes received broad condemnation, amid arguments that it will do nothing to address core issues such as the ineffective delivery of police services in PNG. There are increasing reports of instances involving police force adding to law and order problems, rather than to solutions.

It remains to be seen how Australia, who recently signaled moves to increase support to PNG’s police and justice system, will react to the new laws. In 2007, following the Nuku’alofa riots, Australia refused to hand over autopsy reports to Tongan investigators, citing concerns about the possible imposition of the death penalty on suspects.

Australia and New Zealand blocking Fiji loans

Australia and New Zealand have been using their sway in the region to effectively ban World Bank and Asian Development Bank lending to Fiji since the 2006 coup, according to a blog post by Stephen Howes at the Development Policy Centre. The revelation received coverage in the Australian newspaper, Radio Australia and the Fiji Times. Professor Howes indicated that he supported other sanctions, but questioned the wisdom of opposing lending from the banks, arguing that it undermined the institutions’ legitimacy. Both DFAT and the World Bank have responded, but neither has denied that Canberra has been lobbying the banks not to lend to Fiji.

POLITICS

Allegations of killings in West Papua

The decades-old campaign for independence West Papuans continues gain urgency following allegations of intimidation and uniform extra-judicial killings of indigenous people by combined Indonesian forces. Fresh allegations have emerged that accuse Indonesian military and the elite counter-terrorist police unit Densus 88 — who have received training by Australian Federal Police — of the mass killings in a remote village in West Papua.

According to an ABC report, combined police and military crackdown has purportedly claimed the lives of 11 people while 20 are missing. Free Papua Organisation spokesman Jonah Wenda told reporters via text message that the mass atrocities are aimed at destroying the stronghold of pro-independence groups. Earlier reports by human rights groups allege that Indonesian Kopassus troops are responsible for disposing the remains of their victims in bags and sacks in a separate incident in Tingginambut in West Papua in May 2013.

Elections to end Nauru political drama

A State of Emergency has been declared in Nauru. This follows nearly a month of parliamentary deadlock and constitutional crisis. In an address to the nation, President Spent Dabwido said the reason for declaring the State of Emergency was to ensure economic security and bring national elections forward to June 8. In protest, minister of finance Roland Kun resigned from cabinet. Nauru media have since been banned from reporting on the political events in the run up to elections. Ousted Speaker Godfrey Thoma has said one of the main issues behind Nauru’s political instability was unequal distribution of business opportunities as a result of the re-opening of Australia’s detention centre.

Eradicate poverty by 2030

A High Level Panel on the Post-2015 Development Agenda released its report to the UN Secretary General setting out an ambitious ‘universal agenda’ to eradicate extreme poverty by 2030. Twelve new development goals have been proposed that include targets on peacebuilding and statebuilding, recognizing their critical importance for development. Other targets cover climate change, sustainable ocean practices, renewable energy, as well as ending agricultural subsidies and ensuring multinational companies pay taxes fairly. The panel’s report drew on extensive consultations, including the Dili International Conference attended by representatives from across the Pacific. The report will drive debate over development priorities to be agreed by the international community before the expiry of the Millennium Development Goals (MDGs) in two years.

Climate change migrants facing uncertain future

President Anote Tong of Kiribati has stated that despite efforts to mitigate the effects of climate change, he is now preparing his people to “migrate with dignity”, with migration being their only lifeline. But migration is proving to be an unresolved issue for the potential host countries, as well as the I-Kiribati’s themselves, many of whom are reluctant to leave. Many would prefer voluntary migration instead. There is nonetheless a general acceptance though that people will have to move eventually. No developed country has made any offers to those displaced by climate change. Australia is being urged to become the first country to create a special refugee category that would enable Pacific migrants to access protection and support.

Fiji politics wrap

The People’s Democratic Party (PDP) became the fourth party in Fiji to successfully register. In addition to pledging to support democracy, the rule of law and good governance, the PDP supports free media. This is a major issue as elections approach, with the University of the South Pacific reportedly blocking a speech to be given by Professor Waden Narsey at a World Press Freedom Day presentation event.

In accordance with the decree, the PDP is allowed 30 days from the date of registration to submit the party’s financial information. Political party registrar, Mohammad Saneem, has reiterated that any party failing to declare their assets and liabilities will be deregistered.

As international trade unions continue to put pressure on Fiji, PM Voreque Bainimarama has again displayed his inclination to ‘look north’. He held meetings with Chinese Premier Li Keqiang and President Xi Jinping in Beijing in a bid to secure support in establishing a Pacific Islands Development Forum (PIDF) Secretariat. Kuwait and the UAE have already pledged more than USD 434,000 to assist with the hosting of the inaugural PIDF meeting slated for August. Meetings with President Vladimir Putin of Russia also look set to take place at the end of June.

ECONOMICS

Mining wrap

Solomon Islands Prime Minister, Gordon Darcy Lilo considered the Extractive Industries Transparency Initiative (EITI) global conference held in Sydney to be successful, although other commentators were less impressed. As the only country in Oceania signed up to the initiative, Solomon Islands is also being encouraged to incorporate the EITI into i laws. In line with the EITI, Australia is also facing calls to enact legislation that would require disclosure from its companies operating overseas. The recently released report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda also noted the need for a, ‘transparency revolution, so citizens can see exactly where and how taxes, aid and revenues from extractive industries are spent’.

Meanwhile, the Indonesian government has refused to allow the Freeport mine in Papua province to resume production. Operations have been curtailed at the mine since Indonesia’s worst mining disaster took place on May 14, with 28 miners killed and 10 injured.

In Bougainville, talks between landowners and Rio Tinto regarding the re-opening of the Panguna copper mine have been postponed until mid-June.

SDP to exit Ok Tedi

At its 2012 Annual Report Meeting held in Port Moresby yesterday, the PNG Sustainable Development Program announced that it would be exiting from OTML, the company which runs the Ok Tedi mine, PNG’s largest. SDP is currently the majority shareholder in Ok Tedi, with a 63% shareholding. But the PNG Prime Minister has made clear his determination for SDP to exit Ok Tedi. Now the trust-fund, established at the time of BHP’s departure from Ok Tedi in 2001, has agreed. While the details are yet to be worked out, the SDP Chairman Sir Mekere Morauta, writing in the organization’s 2012 Annual Report, has also conceded it will not receive fair market value for the transfer of its shares.

In a commentary of the move, Devpolicy Director Stephen Howes calls it a “sad day for PNG”, noting that it raises questions about the security of property rights in PNG, and that, given the problems of corruption and capacity within the PNG Government, Ok Tedi revenue would be more effectively spent by SDP.

Foreign workers in Australia: mining and the seasonal worker program

Protests by some unions and Labor parliamentarians over alleged “rorts” of 457 visas have continued at the same time as several leading Labor Party figures challenged these groups to provide evidence of their claims. The relevance of the debate to Pacific islanders was highlighted last week on the 7.30 Report, which featured a story about Australian workers losing mining jobs while (six) Papua New Guinean counterparts kept theirs. The story was savaged in this critique by the ANU’s Colin Filer, who pointed to the skills of Papua New Guineans employed in the mining sector, and to the widespread employment of Australians in PNG’s mining sector.

Meanwhile, prospects for expanding access among Pacific islanders to Australia’s agricultural industry appear distant. Analysis by the Development Policy Centre last year identified ease of access to backpacker labour as a key obstacle to the employment of Pacific islanders under the seasonal worker program. The official evaluation [pdf] of the seasonal worker program reached a similar conclusion, but has been labelled a missed opportunity given the delay in its release, the absence of any quantified analysis documenting the higher productivity of seasonal workers, and the government’s muted response to the report. The number of backpackers working as fruit pickers in Australia is reported to have sharply increased sharply this year due to the economic woes of Europe and the USA.

Samoa 2013-14 budget deficit

The Government of Samoa has budgeted for a deficit of WST 80.9 million in 2013-14, amounting to 4.8 percent of GDP. The budget was released last week in an environment of low but positive economic growth, with real GDP growth of 1.3 percent recorded in 2012-13. Recovery spending in the wake of Cyclone Evan is the main reason for the deficit. The government is spending WST 60 million as part of the cyclone recovery program. In order to help contain the deficit, fees charged by state-owned enterprises are being increased. Development partners have increased budget support considerably. The deficit is expected to decline gradually over the forward estimates.

Pacific Plan Review releases interim findings

The Pacific Plan Review, headed by Sir Mekere Morauta, released its interim findings in a seminar held in Suva last week. The review team highlighted the widespread dissatisfaction with the existing plan evident in consultations in the region, suggesting that the vision of leaders incorporated in the original plan had been “lost in translation”. The picture painted by the review team was both mixed and detailed. The team noted that appetite for pooling of sovereignty in the region remains uncertain, and that the existing plan includes too many priorities. It highlighted the need to ensure the Forum provides political space for discussion of regionalism, and for the Forum Secretariat to play a stronger role as gatekeeper of regional initiatives. The review’s interim findings can be found here, and list of submissions (including from devpolicy) here.

Chinese vessel on Pacific deep-sea mineral resources mission

A Chinese research vessel left south China recently to survey undersea resources in the Pacific Ocean. The ship will be on Pacific waters for more than five months. ‘Haiyang-6,’ or ‘Ocean-6’—with an expedition team of 96 members– has the biggest number of personnel ever for such a mission. With some Pacific countries having already issued exploration licences to companies, the Pacific Conference of Churches has renewed calls for a stop to all sea-bed mining research.

IN BRIEF

• There are reports of a massive hidden HIV infection in Guam.
• A recent study in Fiji has identified 200 child labourers in Suva.
• PNG has welcomed the decision by InterOil to start talks with ExxonMobil as a potential partner to develop its Elk and Antelope gas resources.
• The Solomon Islands government has started building its PNG-Solomons border post.
• French Polynesia president Gaston Flosse wants a referendum on self-determination.

Editorial content is the responsibility of Kiery Manassah, PiPP’s online editor, and Stephen Howes, Devpolicy Director.

French Polynesia re-inscribed on UN decolonisation list

Former president Oscar Temaru managed a last minute political victory, seeing French Polynesia re-inscribed into the United Nations decolonisation list on the same day he handed over his presidency to Gaston Flosse. The resolution was introduced to the 193-member UN General Assembly by Solomon Islands, Nauru, Tuvalu, Samoa, Vanuatu and Timor-Leste. The United Kingdom, the United States, Germany and the Netherlands all disassociated themselves from the consensus vote and the French boycotted the meeting.

Temaru, who took Tahiti’s case to the UN in 2011, won just under 30 per cent of the territory’s recent elections, while Flosse’s Tahoeraa Huiraatira came first with 45 per cent, giving his party twice as many seats as all opposition parties combined, in accordance with the new electoral system rules. Flosse’s newly elected assembly voted to appeal to the UN to drop decolonisation from the General Assembly’s agenda in its first session. Flosse denounced the UN’s decision as dictatorial and vowed to never let the UN flag fly from his palace. Flosse risks losing his office (and his palace) later this year though, should the highest court in France reject his appeal on charges of corruption.

French Polynesia joins other Pacific territories on the UN decolonisation list: American Samoa, Guam, New Caledonia, Pitcairn Islands and Tokelau.

Growth of 9 percent in Australian aid budget, but 0.5% delayed

Australian budget papers released last week showed an increase in development assistance of 9 percent in 2013-14. However, the Government also delayed achievement of its 0.5% GNI target for a second year in a row. The target, which had previously been postponed to 2016-17, will now be met in 2017-18. The NGO sector has been critical in response. The aid budget nevertheless did well in comparison with other sectors. The austere budget, designed to offset lower than expected revenue and pay for Labor’s legacy education and disability reforms, saw cuts over the forward estimates in funding for higher education, foreign affairs, and defence.

POLITICS

Major powers court Pacific leaders

China announced a major gathering of Pacific leaders, slated for November, with talk of USD$1 billion in soft loans being offered to island states at the meeting. This is China’s chance to host a dialogue with all the Pacific Island Forum nations in a similar way to Japan’s PALM meetings and demonstrates further courting of island states by China.

More courting of islands by the US and its allies Australia and New Zealand is also underway with a convoy of navy ships planning to visit six Pacific nations in coming months to provide medical and humanitarian assistance.

The PNGDF and Fiji military are meanwhile forging closer ties to train and potentially deploy together on UN peacekeeping missions. Growing defence ties between the two signal cooperation not just in UN operations but potentially within the Pacific as the Melanesian Spearhead Group (MSG) discusses creating a permanent regional force that could be deployed quickly in times of natural disasters or civil disturbances.

A bill and a prayer for violence victims

A nationwide coalition of women’s groups throughout Papua New Guinea (PNG) gathered in strategic locations to keep vigil from 14-15 May 2013 to honour victims of violence, including the late Kepari Leniata a young PNG mother publicly burned and tortured over accusations of witchcraft.

The PNG Haus Krai movement urged the government to intervene to stem the tide of vicious crimes against PNG women and children. The historic and peaceful protest was marked by a series of domestic and overseas traditional mourning ceremonies or Haus Krai.

PNG Prime Minister Peter O’Neill assured protestors that domestic violence will be codified as a distinct criminal offence. The Family Protection Bill before parliament would allow witnesses to report violent assaults against victims of domestic abuse. Attorney-General Kerenga Kua stated that the bill will not discriminate against men. Kerenga Kua spoke in defence of the bill, saying that the new laws will offer gender-neutral protections to the entire family.

Children most affected in Marshall’s drought

There are serious concerns over the health of children in the Marshall Islands as it experiences a severe drought affecting up to 10,000 people. Most have limited access to safe drinking water and sanitation. Forecasters have warned the drought could drag on until September. The government has declared a state of disaster, as the prolonged drought causes food gardens to whither due to lack of water. UNICEF has responded with some relief assistance for diarrhoea, gastritis, hepatitis and other health issues affecting mostly children.

Also in the Marshalls, there are indications of an atoll being ‘washed away’ as trees fall into the lagoon and major infrastructure is threatened by rising waters.

Australian visa complaints mar Gillard’s PNG visit

Australian visas, offshore processing, trade, defence cooperation and policing reforms were the core priorities reflected in the Joint Partnership Declaration between Australia and Papua New Guinea signed between Prime Minister Julia Gillard and her PNG counterpart during a three-day visit to Papua New Guinea recently. The two Prime Ministers also announced but failed to release an Australia-PNG Economic Cooperation Treaty, to replace the old Development Cooperation Treaty.

The PNG Prime Minister complained vociferously about the difficulties of getting Australian visas. It was also apparently agreed that retired Australian police would be hired for the PNG police force: like the Enhanced Cooperation Program of a year ago, but without the diplomatic immunity.

ECONOMICS

Australia aid to Pacific stable

There is little change in aid funding earmarked for the Pacific in the 2013-14 budget. Funding to the region will grow 2 per cent, from AUD $1.1 billion to AUD $1.13 billion compared to actual spending in 2012-13. This is a decrease of AUD $45 million compared to the 2012-13 budget estimates. The stabilisation of aid to the Pacific contrasts with aid allocations to East Asia, which increase by almost 12 per cent as a result of growth in aid to Indonesia and Myanmar. East Asia is now clearly the region which receives the most Australian aid, pulling ahead of the Pacific in the last 2 years. Indonesia has consolidated its position as the country that receives the most Australian aid, with PNG now a distant second.

Pacific ACP continue EPA negotiations with EU

The Pacific bloc of the ACP engaged in Economic Partnership Agreement (EPA) negotiations with European Union (EU) officials in Fiji last week. Secretary General of the Pacific Islands Forum Secretariat, Tuiloma Neroni Slade suggested that the EU’s failure to respond to the unique situation faced by Pacific island countries has stalled EPA negotiations, a sentiment echoed and emphasised by Fiji’s acting prime minister Aiyaz Sayed-Khaiyum, who made strong calls for negotiations to move forward and be concluded as soon as possible.

EU Head of Delegation for the Pacific, Ambassador Andrew Jacobs claimed that negotiations were far from over, citing significant disagreements surrounding global sourcing and rules of origin in the fishing industry and the EU’s desire to include ‘trade in services’ within the EPA framework— a move which took many Pacific ministers off-guard. While some commentators have argued that EPAs should be abandoned if the deals on offer prove inadequate, others argue that some Pacific countries have a lot to lose if negotiations fall apart. Fiji, for example, would risk losing the preferential sugar prices agreement it has with the EU.

The Office of the Chief Trade Advisor (OCTA) is expected to have closely followed the EPA negotiations hoping that solutions to difficult issues could be applied to PACER Plus negotiations. PNG’s Trade Minister, Richard Maru has suggested PNG is considering pulling out of PACER Plus negotiations and would instead focus on the MSG trade agreement.

ICT roundup

Pacific island countries had something to celebrate as they marked World ICT Day last week. Tonga took the opportunity to mark the imminent availability of much-improved broadband internet via a fibre-optic link to Fiji and the Southern Cross trans-Pacific cable. In Vanuatu, a November date was confirmed for its cable to make landfall, with a start to commercial operations slated for January 2014. Cook Islands, meanwhile, has become the first nation in the world to complete installation of a radically new satellite Internet service operated by O3b Networks. In related news, Fijian government, business and civil society stakeholders gathered in Suva to discuss cyber security.

Corruption concerns as PNG businessman has Australian visa revoked

Australia’s Foreign Minister Bob Carr has used his special powers to cancel the 457 visa of a PNG businessman who is accused of using the visa to avoid arrest and prosecution for corruption. This comes after criticism last year from Chairman of Papua New Guinea’s anti-corruption taskforce, Taskforce Sweep, that Australia was not being proactive enough in identifying and confiscating proceeds from corruption emanating in PNG.  Corruption concerns have also risen in relation to the appointment of Nathaniel Poya as chief of PNG Ports. According to the PNGexposed Blog, Poya has a  “history of corruption, failed businesses, debts and conflicts of interest”. His appointment comes as a large ADB-financed project to rehabilitate the Lae Port reaches its end, and calls into questions the PNG Government’s recent state-owned enterprise reforms intended to enhance “transparency and accountability”

Fishing deals for Pacific nations

A US $1.71 million deal between Kiribati and the EU has been criticised for undermining cooperation between PNA nations. The agreement represents a step away from the vessel day scheme, and comes a year after Kiribati broke ranks with PNA members by issuing more days than allocated under its quota. The agreement will see the EU deploy four purse seiner and long line vessels in Kiribati’s waters, increasing the allowable catch for EU vessels from 5,400 tonnes to 15,000 tonnes. It is estimated that under the agreement, Kiribati will receive $3,600 per fishing day, well below the $6,000 it receives under the PNA vessel day scheme.

This comes as US Tuna Treaty negotiations between Pacific Island Parties and the United States stall. Negotiations have been hampered by tension between PNA members wanting higher access fees consistent with those received under the vessel day scheme, and non-PNA members interested instead in US development assistance. A transitional agreement has been put in place in order to extend talks for a further 18 months.

In other news, the Cook Islands is reported to receive $14 million after doubling the fishing days of an American Samoan-based purse seiner. And in PNG, a new K85 million tuna facility has been announced which will enable the country to process its own fish.

IN BRIEF

• West Papua’s application for membership at the MSG has been listed on the agenda.
• Nauru MPs have failed to turn up, and the speaker Godfrey Thoma could dissolve parliament this week.
• Diabetes among younger generations in Tonga has been increasing, according to a recent study.
• Vanuatu Prime Minister Moana Carcasses is moving to ‘shake up’ its foreign relations.
• Guam may have direct flights from Russia by the end of this year.
• An activist group claiming the support of 7000 citizens in the Northern Marianas is resisting plans by the US to conduct live fire training on Pagan Island.
• Guam Senators are seeking increased Compact Funds From the USA.

Editorial content is the responsibility of Kiery Manassah, PiPP’s online editor, and Stephen Howes, Devpolicy Director.

Solomon Islands PM urged to table TRC report

As Solomon Islanders debate the wisdom of Bishop Terry Brown’s unilateral decision to release the long awaited Truth and Reconciliation Commission (TRC) report, Prime Minister Gordon Darcy Lilo is being urged to table the report in parliament. Bishop Brown has told Radio Australia true reconciliation will only come about when Solomon Islanders know the facts surrounding the ethnic tension that erupted in 1997. He added that he hoped his decision to unofficially release the report would push the government to address the commission’s recommendations.

PM Lilo has since accused Brown of acting illegally, while the attorney general has described the action as ‘irresponsible’. Guadalcanal premiere, Stephen Panga, also accused the Bishop of hijacking the process. But the opposition retorted that the PM only has himself to blame for sitting on the report since February 2012. The TRC — modeled after the South African Truth and Reconciliation Commission­ — was established in 2009 by an Act of Parliament at the request of the Solomon Islands Christian Association. The TRC aimed to investigate and document the trauma people experienced between 1997 and 2003.

The LNG threat

The current threat to the progress of the PNG LNG project continues after a petition by landowners and Hela Provincial Governor Anderson Agiru. Agiru is threatening legal action against the government and project developer Esso Highlands (an Exxon Mobil subsidiary) for alleged non-performance of contractual obligations and non-payment of outstanding benefits for infrastructure projects. But PM Peter O’Neill is questioning the governor’s move — suggesting that his government has disbursed the approved benefits according to the agreed conditions. Esso Highlands boss Peter Graham is insisting on open dialogue with the leaders.

Governor Agiru is questioning the impact of the PNG government’s recently announced State Owned Enterprise reform agenda. He warned other provincial partners in the gas project of the future expense and financial risks they could face under the restructure of SOEs approved in March 2013. Governor Agiru is encouraging other provincial governments to withdraw their stake in shares within the multi-billion dollar gas project or risk losing millions in future. He fears the consolidation of assets under the approved national restructure will dilute the equity shares of individual provincial partners in PNG LNG.

The PNG LNG project is central to the country’s future economic growth potential. If the $15 billion project goes ahead, it alone is set to double the country’s GDP. Royalties and equity payments, infrastructure and seed capital for landowners’ businesses are included in the benefit sharing arrangements agreed to in 2009. Historically, threats of disruption to the gas pipeline project by landowners have involved grievances over the outstanding employment and compensation benefits under the 2009 Kokopo Agreement.

POLITICS

PNG seeks tougher penalties for violent crimes

While capital punishment is in decline throughout the world, Papua New Guinea is investigating the option of bringing back the death penalty as one of the deterrents against increasing levels of violent crime. Prime Minister Peter O’Neill has instructed the Attorney General to bring a stricter raft of laws before parliament in May. The laws will severely punish those found guilty of committing violent crimes, including murder and rape. The proposal includes inexpensive methods of execution together with plans for an isolated high security execution centre.

Social media sites hosting lively debate on the death penalty issue reveal degrees of uncertainty relating to the paradox of acts of violence perpetrated by citizens and those sanctioned by the state. Increased media and community dialogue on the issues surrounding the death penalty include grave concerns about the weak capacity of law enforcement officials to effectively implement laws that some call a ‘knee-jerk reaction’ to the increased prevalence of violent crime against those accused of sorcery. Elsewhere, commentators are suggesting that a broader look at PNG’s social fabric is essential.

Fiji edges closer to elections

Fiji has taken further steps toward holding elections in 2014, allowing three political parties to register under the Political Parties Decree. The Fiji Labour Party (FLP), the National Federation Party (NFP) along with the ‘new’ Social Democratic Liberal Party (SODELPA- formerly SDL) are now registered.

Politicians and their close family members are now required to submit exhaustive details of all assets, expenditures, contributions, donations and pledges. Parties are also required to set up offices in each of Fiji’s main administrative areas. The obligations have come under criticism from NFP President Raman Pratap Singh.

Meanwhile, a petition by the Fiji Youth for Democracy movement calling for the reinstatement of the entire Yash Ghai Constitution was accepted but played down by Attorney General Sayed-Khaiyum as just another submission. The Commonwealth joined others in calling for amendments to the draft document as the consultation process wound up on April 30.

Solomons PM Lilo gives West Papua the thumbs-up

Following the visit of a delegation representing the West Papua National Council for Liberation (WPNCL) to Honiara, the push to gain full membership of the Melanesian Spearhead Group (MSG) is gaining momentum with the formal backing of Solomon Islands Prime Minister Gordon Darcy Lilo. PNG is the only country left for the West Papuan National Coalition leaders to visit before the issue is tabled at the upcoming MSG leaders summit in Noumea. Perhaps sensing the building momentum, the Indonesian government has announced that it is considering a ‘Special Autonomy Plus’ plan for the troubled province where further incidents of violence recently emerged following commemorations of the 50^th anniversary of Indonesia’s annexation.

Meanwhile, Indonesia’s diplomacy skills have been criticised after the Free Papua Movement (OPM) set up an office in Oxford, with the support of the city’s mayor. In more scandal, an investigation by an Australian journalist has revealed some Papuan children were forcibly removed from their families to attend Islamic schools on Java ­– reminiscent of similar programs that occurred during the occupation of Timor-Leste.

Australian Defence priorities and the South Pacific

The inaugural Annual South Pacific Defence Ministers Meeting (SPDMM) was held on 1-2 May 2013. The meeting was hosted by the Tongan government but organised mainly by Australia. Participants from Australia, Chile, France and New Zealand, were present along with only two Pacific countries- Papua New Guinea and Tonga. The USA and Britain were invited as observers but China and Japan were left off the guest list.

The SPDMM looked at issues including the growing influence of China in the region, and committed to a Pacific Maritime Security Program to assist Pacific Island states with the management of their Exclusive Economic Zones. Fiji was mentioned only in passing and would be invited to join once a credible election is held. The Joint Communique is available here (pdf).

Meanwhile, Australia released its 2013 defence white paper with a shift in posture from its previous effort in 2009. This paper took a notably more diplomatic approach toward China and suggested that Australian defence priorities would focus more effort on the ‘Indo-Pacific’, with attention given to the South Pacific in relation to maritime security and protection of Australian resource interests in the region. Analysts have argued however, that Australia will need to do more than simply allocate extra resources, if it hopes to improve relations with its South Pacific neighbours. 

Multilateral maneuvers

At an Expert Group Meeting focused on Small Island Developing States (SIDS) and the Post-2015 Development Agenda held at the U.N. Headquarters, Marshall Islands fisheries director Glen Joseph made strong calls for small island nations to avoid being “pushed to one side” in global climate change and sustainable development negotiations. Joseph argued that the terms of the global discussion about sustainable development have to change and SIDS must be at the table influencing this.

Editor of the Marshall Islands Journal, Giff Johnson, recently argued that the Parties to the Nauru Agreement (PNA) is an example of how small island countries have worked together to achieve a better deal from developed nations for their resources. The benefits of developing nations building solidarity, sharing expertise and securing a better deal in the post-2015 development agenda has been explored in detail here (pdf).

Meanwhile, a meeting is underway in Natadola, Fiji, to explore ways of strengthening South-South cooperation. China assisted Fiji with its hosting duties, by providing a fleet of 20 vehicles valued at FJD$4 million.

ECONOMICS

Thailand seeks raw materials from Pacific

A bigger focus is being directed towards the Pacific for raw materials, especially by emerging economies from Asia, to fuel their growth. The next Asian country after China, South Korea and Japan, to show such interest is Thailand, with Prime Minister Yingluck Shinawatra visiting Papua New Guinea in March. As a follow-up, Thailand’s Ambassador to Vanuatu, Papua New Guinea, Solomon Islands and Fiji, Maris Sangiampongsa, has stated her country wants to build business links and trade pacts with the Pacific. Fish and gas have been identified as the most likely resources to be tapped into in return for technical assistance to help Pacific countries develop their own industries. PNG PM Peter O’Neill promised his Thai counterpart to grant petroleum licenses to Thailand’s PTT Exploration and Production.

Lower commodity prices affect PNG Budget

Lower commodity prices are likely to produce a larger budget deficit than forecast in PNG. The 2013 PNG Budget commits the government to higher levels of spending, with the objective of offsetting the effects on the economy of the completion of the LNG project. This higher spending is forecast to produce a deficit of 7.2 percent of GDP. An analysis of the assumptions contained in budget documents suggests the actual deficit may be higher than this (chapter 2 of this budget document [pdf]). Commodity prices remain lower than forecast in the budget papers. Gold is currently US$1466 instead of the US$1701 per ounce assumed in the budget projections. Copper is currently US$7270 instead of the US$8047 per ton assumed in the budget projections. Oil prices are also lower than forecast.

Lower commodity prices will reduce government revenue from taxation of mining and energy commodities, and are likely to result in a larger budget deficit than projected. So too are other questionable assumptions in the budget, such as zero growth of the public service wage bill until 2017. The high budget deficit suggests that there is need for caution in future spending growth – a point made by two ADB economists last week.

IN BRIEF

• Pacific media are moving to establish a regional Ombudsman.
• Vanuatu government has sacked eight more diplomats.
• Tonga is seeking public debate over its proposed Freedom of Information law.
• Documents show the British plan to evacuate people from Kiribati and Tuvalu in the last years of colonial administration.
• The United Nations Development Program has pledged millions to promote democracy in Tonga.
• Samoa updates its laws to tackle 21^st century crime.
• Veteran politician Gaston Flosse has been returned to power in French Polynesia.
• FSM has released annual reports for Compact Trust Fund

Editorial content is the responsibility of Kiery Manassah, PiPP’s online editor, and Stephen Howes, Devpolicy Director.

MSG revs up for leaders’ summit

The Melanesian Spearhead Group has become the focus of considerable activity in the lead up to the Leaders’ Summit in June, in spite of accusations from Fijian opposition leader Mick Beddoes that the organization is ‘embracing dictatorship’. Fijian PM Bainimarama has suggested the group might assist with election monitoring in 2014. Vanuatu foreign minister Edward Natapei meanwhile visited Fiji to formally make amends for having slighted Fiji’s Voreqe Bainimarama in 2010. The West Papua National Council for Liberation (WPNCL) continued its membership campaign with visits to New Caledonia and Solomon Islands, an idea to which the membership seems to be warming. In a wide-ranging interview with PiPP, MSG chair Peter Forau underlined Sir Michael Somare’s ‘historic’ statement that the MSG is not an intergovernmental organisation, and admitted there is a sense that the people of West Papua could find a place in the organisation. The vision of an economic union (discussed in the next item) was touted as well by outgoing chair Bainimarama.

Fiji-PNG strategic investment

In a move echoing Xanana Gusmao’s recent call for developing nations to invest amongst themselves, Papua New Guinea and Fiji announced their intention to work towards ‘a single market for the countries of the Melanesian Spearhead Group’. Supporting that statement is a FJD180 million investment by Fiji’s Provident Fund in PNG’s state-owned and struggling telco, Bemobile, with management to be provided by Vodafone Fiji.

Prime ministers O’Neill and Bainimarama also announced that their economic summit would become an annual event. In other signs of cooperation, Papua New Guinea stated it will provide an AUD 22 million grant to help fund Fiji’s upcoming elections.

POLITICS

China’s veiled attack over U.S. military build up

The U.S. Defense’s fiscal year 2014 budget proposal (PDF) seeks to support Washington’s interest in the Asia-Pacific region by “creating a more operationally resilient Marine Corps presence in the Pacific (and) undertaking key presence initiatives in Australia, and investing in Guam as a joint strategic hub”. China is uneasy with the “rebalancing” of forces as Washington winds down its Afghanistan operations and renews its attention on the Asia-Pacific.

And in the face of threats from North Korea, elements of the Terminal High Altitude Area Defense (THAAD) missile system have begun arriving on Guam. In the Northern Marina islands, residents and indigenous people have expressed opposition to the U.S. military’s proposal to use Pagan and Tinian as training sites.

Territorial elections held in French Polynesia

French Polynesia’s first round of territorial elections has been held, with three parties garnering more than the required 12.5% of the vote to go forward into the run-off election which will be held on May 5^th. Gaston Flosse’s Tahoeraa Huiraatira Party won 40.2% of the vote, while incumbent, President Oscar Temaru’s UPLD captured 24%. Candidate Teva Rohfritsch received slightly less than 20%. The eventual results will determine the formation of French Polynesia’s 57-seat assembly for a term of five years. In the lead up to the elections campaigning has been fierce. Four of the nine lists lodged complaints against the legality of Gaston Flosse’s party and Temaru has repeatedly attacked Flosse in relation to Flosse’s jail sentences for corruption. Flosse was allowed to contest because he is in the process of appealing the convictions in higher courts. During his campaign President Temaru said he had secured an MOU with China for a loan worth five billion US dollars. The results are likely to have some influence on French Polynesia’s independence bid.

‘Migration with dignity’ high on agenda in Kiribati

This month, The Global Mail ran an in-depth feature looking at Kiribati’s ‘migration with dignity’ plan, including photographs and video. The feature focuses on the looming fresh water crisis on the country’s atolls, as well as population pressures. It also recounts some of the misguided aid projects that have hindered rather than helped I-Kiribati adapt to climate change. A major call from the feature was for Australia to formally recognise climate change refugees, a move that is now being backed by the Refugee Council of Australia. The issue was also covered in The Guardian.

A national high level meeting on climate change in Kiribati was also held last week, highlighting fears about the country’s future.”I think we have to acknowledge the reality, and…the projection is that the sea level rise will render our islands submerged and virtually uninhabitable,” President Anote Tong told ABC Radio.

ECONOMICS

Foreign interests questioned

Two former Autonomous Bougainville Government (ABG) ministers took out a full-page advertisement in The National, heavily criticising (pdf) the ABG’s draft mining policy for among other things, being influenced by foreign, ‘colonial masters’. Bougainville’s Panguna mine has come back into focus not only because of its possible re-opening but also due to a recent US legal decision, which appears to make it even harder for non-US communities to seek redress from corporate entities via the US courts. The legal decision doesn’t bode well for 10,000 former and current residents of Bougainville with an ongoing case against Rio Tinto. Meanwhile, ABG President John Momis has stated that his government will legislate to restrict Chinese and other foreigners from owning trade stores and eateries for fears that they will take over the retail sector. Vanuatu is looking at a similar plan. Prime minister Moana Carcasses expects to submit the first draft of the plan to the Law Commission by the end of May.

No truly ‘green’ economy without sustainable ‘blue’ one

FAO Director General Graziano da Silva told ministers at the South West Pacific Ministers for Agriculture Meeting in Samoa that ”there can be no truly ‘green economy’ without a ‘blue economy’ that makes the sustainable development of oceans and fishery resources a priority.” Participants from 14 Pacific island countries were meeting to review and adopt an overall agricultural plan for the region for the 2013-2017 period. Another fisheries related meeting took place in the Solomon Islands where New Zealand pledged close to NZ$4 million to the Forum Fisheries Agency. In American Samoa, tuna production capabilities have been given a boost with the completion of a 5000 metric tonne cold storage building. The facility, worth US$5 million, marks the first step for company Tri Marine’s investment plans, with another $50 million slated for spending on a new processing and packaging facility and a cannery in the future.

Economic growth to slow in the Pacific

Economic growth in Pacific island countries is predicted to slow in 2013, according to the UN Economic and Social Survey of the Pacific and the World Bank’s East Asia Pacific Update. The UN forecasts growth in the region to slow from 6.4 percent in 2012 to 3.4 percent in 2013. The decline is due in large part to the completion of the LNG project in PNG, where economic growth is expected to fall from 9.2 to 4 percent. Weak global demand for commodities continues to adversely affect PNG and other Pacific economies such as Solomon Islands and Vanuatu. Economies reliant on tourism and remittances are also growing slowly as a result of global economic conditions. The situation in Nauru is more positive, with significantly higher economic growth forecast as a result of the re-establishment of the offshore processing centre by Australia.

Youth unemployment a considerable challenge in the Pacific: UN

The UN Economic and Social Survey of the Pacific has identified youth unemployment as a key challenge for the region. Unemployment among young people is far higher than for other age groups in Pacific island countries. In Fiji, youth comprise one-third of the workforce but two-thirds of the unemployed, while in Kiribati, youth comprise one-quarter of the workforce but 58 percent of the unemployed. The UN Economic and Social Survey of the Pacific argues that the source of the problem is twofold. Low economic growth rates lead to lack of job opportunities. At the same time, there is a mismatch between education systems focused on the formal sector and job opportunities based in the informal sector (such as carpentry, mechanical repairs, and small-scale vending). The report argues for education reforms, expansion of donor-funded technical training programs (such as the Australia-Pacific Technical College), and increased opportunities for migration of youth to Australia and New Zealand.

IN BRIEF

• In what could be seen as further challenge to regional institutions like the University of the South Pacific, Solomon Islands has opened a new university.
• Fiji has been offered the top post of Director-General in the Pacific group of African, Caribbean & Pacific group of States (PACP) Secretariat.
• Pacific politicians have met in Wellington to discuss the role of parliament and the media in environmental issues and the representation of women.
• A new bill in the Solomon Islands will keep former PMs on the state payroll.
• The new leadership in Vanuatu is pushing its policy agenda with an ambitious 100-days plan.
• A scathing report on human trafficking in PNG has shown that adults and children are being pushed into sexual exploitation and forced labour.
• Political parties in PNG that win less than five seats in a general election will be required to amalgamate with larger parties under revised laws presented to PNG cabinet.
• Nauru and Kuwait have established diplomatic relations to promote friendship and mutual cooperation.
• The Republic of Marshall Islands has launched a new website to preserve and promote cultural and historical resources.

Editorial content is the responsibility of Derek Brien, PiPP Executive Director, and Stephen Howes, Development Policy Centre Director.

Fiji constitution submission deadline extended

Fiji has extended the draft constitution submission deadline until April 26^th. The extension comes amidst heightened levels of criticism of the draft constitution in its current form. The Citizens Constitutional Forum released a report (pdf) outlining its main concerns, the United Front for a Democratic Fiji held a public meeting and Rewa high chief, Ro Teimumu Kepa, led a delegation through Suva to deliver their rejection of the draft directly to the Attorney General’s office. Prime Minister Frank Bainimarama responded by suggesting the draft was being ‘misrepresented’ by certain individuals and NGOs.

Bainimarama also recently revealed the current government would be joining him to form a political party that will seek election next year. Whether there will be any other parties remains to be seen, with the registrar yet to give any contenders the all-clear sign to run.

Meanwhile, former prime minister Laisenia Qarase was released from prison last week, having served seven months of a one-year term. But given restrictions under the draft constitution, Qarase looks set to be excluded from the proposed 2014 poll.

PNG government restructures ownership of resources and SOEs

The PNG government has announced it will restructure its ownership of mining, petroleum and state-owned enterprises. The Independent Public Business Corporation and PNG’s Petromin Holdings will cease to exist under the reforms, with the state’s ownership of all its ventures vested in three new “Kumul” entities, who will own the PNG government’s petroleum, mining and other companies respectively. While the Kumuls are reported to be holding companies, it is also reported that a Kumul trust will be established. Trustees will include current and former prime ministers of PNG. Reactions have varied with few details having been announced. The reaction on the Masalai blog to consolidating ownership structures was positive. The executive director of the Institute of National Affairs, Paul Barker, was more circumspect, arguing that reforms might work if the trusts were answerable to parliament. The Prime Minister promised legislation by September.

In other mining news, Prime Minister O’Neill has reaffirmed the PNG government will seek greater control over Ok Tedi, the country’s largest mine in which the government has a minority share at the moment. The prime minister has also placed strongly worded advertisements in local newspapers that criticise BHP involvement in PNG Sustainable Development Program, Ok Tedi’s main shareholder.

POLITICS

North Korea threats on Guam

The US department of defence recently announced the deployment of a sophisticated missile defence system to Guam as a precautionary move following renewed ballistic missile threats from North Korea. Defense officials also announced a delay in the launch of a Minuteman 3 missile, because of concerns the test might be misconstrued by North Korea. While the people of Guam are familiar with military build up, Governor Eddie Calvo said the government is providing information to help residents prepare in the event of a nuclear attack. The threats from North Korea are a reminder that hosting military bases places Pacific Island countries at some risk if military conflict were to occur.

Against public objections, Solomons MPs give themselves bigger funds

The Solomon Islands Parliament last month passed the Constituency Development Funds Bill 2013, in the face of strong public opposition. The new law establishes ‘slush funds’ under the control of MPs, supposedly to assist social and economic development of their constituencies. Such funds have existed for many years as appropriations in the national budget, but without legal status and on a much smaller scale than is now planned.

Opposition to the new law was coordinated by Transparency Solomon Islands with internet-based Anti-corruption Network Solomon Islands and Forum Solomon Islands International. The bill was introduced in a rush and strongly backed by the PM and Ministers, suggesting to some observers that it was the price of holding together the current government. See Anthony Hughes’ Devpolicy post for more detail.

Troops withdraw from Solomon Islands and Timor-Leste

The departure of Papua New Guinea’s final forces stationed in the Solomon Islands has coincided with the deployment of the last planned Australian Defence Force (ADF) contingent of peacekeeping soldiers, who will serve alongside soldiers from Tonga. RAMSI’s peacekeeping component has been winding down for some time, although Major General Robert Blackwood envisages Australian soldiers ‘going over there past the 30th of June this year’. The Solomon Islands Minister of Police and National Security, Chris Laore, disagrees, stating in parliament that RAMSI troops will be gone by July, and that only civilian personnel will stay on.

Meanwhile, the last group of ADF members stationed in Timor-Leste has returned to Australia, marking the end of a 14-year involvement. Australian Defence Minister, Stephen Smith, visited the country on April 5^th and outlined Australia’s continued involvement with Timor-Leste through the Defence Cooperation Program.

Combatting tax avoidance and corruption

The UN high-level panel of eminent persons working on a new global development agenda met for the third and final time to consider what should replace the Millennium Development Goals (MDGs) after they expire in 2015. The Bali meeting focused on forging a new global partnership between rich and poor countries, with the regulation of tax havens and illicit financial flows as an important aspect of achieving new development ambitions. Tackling revenue loss through tax avoidance and corruption was welcomed by NGOs and developing countries, with 2007 World Bank estimates putting the amount of stolen assets globally at between $20bn and $40bn. The push for greater international action on tax and corruption came as Cook Islands, one of a number of Pacific tax havens, was implicated in an international exposé of the closely guarded investment information of more than 100,000 people around the world.

Air Samoa’s controversial new pricing model

Samoa Air Limited Chief Executive Chris Langton is making no apologies for charging passengers according to their weight.  The widely reported change to the small carrier’s pricing model has been the focus of criticism by some who argue that the model is discriminatory.  According to the World Health Organization, more than half of 20 year olds in Samoa, Tonga and Nauru are obese.

Meanwhile, a Pacific expert on non-communicable diseases (NCDs) is using the airline’s pricing model to emphasise the value of healthy lifestyle choices. Head of the Pacific Lifestyle Division of the Secretariat of the Pacific Community (SPC), Dr Viliami Puloka, is heeding the criticism of discrimination, but insists that health promotion and awareness is a serious universal issue.

PNG internet update

PNG Telikom recently announced a 68% reduction in wholesale internet fees. This comes on the tail of a recent announcement by NICTA [pdf], Papua New Guinea’s telecommunications regulator, that it was prepared to require infrastructure sharing on the country’s submarine cables as a means of improving access to internet. The news was well-received by commentators. In related news, Network Strategies, a New Zealand-based consultancy, released a report detailing Digicel’s rise to dominance in the Pacific. The report suggests that complacent, underfunded incumbents were partly to blame for their poor performance in competition with the company. Lack of robust competition, the report says, is hampering the affordability of mobile services for consumers.

Navigating Timor Sea negotiations

With the expiration of the Treaty on Certain Maritime Areas in the Timor Sea (CMATS), analysts are asking whether relations between Australia, Timor-Leste, and potentially Indonesia, could fray. In January, Timor-Leste ratified the United Nations Convention on the Law of the Sea.A visit by now former Australian resources minister, Martin Ferguson, demonstrated the difficulties of the situation— his counterpart, Mr. Alfredo Pires, stated that Timor-Leste was searching for a way to withdraw from the treaty without ‘engaging in a confrontation with the Australian government’. Mr. Ferguson’s replacement, Gary Gray, is a former advisor to Woodside Petroleum— a situation some have suggested could lead to a conflict of interest.

Despite its tiny size, Timor-Leste has a reputation for acting boldly, pursuing large resource companies over royalties. Prime minister Xanana Gusmao recently reminded small, poor-in-GDP yet resource-rich countries like his own, that together, they represent significant political and economic influence.

IN BRIEF

• Former parliamentary secretary for Pacific Islands Affairs Richard Marles praised his successor Matt Thistlethwaite and expressed the need for better engagement with the Pacific.
• The dates for the 44th Pacific Islands Forum have been announced.
• Vanuatu has recalled its ambassador to China and revoked the appointment of its Roving Ambassador to Russia.
• PNG PM Peter O’Neill opened the first People’s Micro-Bank.
• Kiribati’s state television has closed due to lack of funds.
• A new Tongan newspaper, Kavai has launched and will devote its editorial content to women’s issues, climate change, tourism and non-communicable diseases.
• An atoll in the north of Marshall Islands is facing a water crisis.
• A drug resistant strain of TB has resulted in another death and is causing alarm in Australia and PNG.
• PNG PM Peter O’Neill spruiks LNG supply for Japan.

Editorial content is the responsibility of Kiery Manassah, PiPP’s online editor, and Stephen Howes, Devpolicy Director.