NATIONAL PARLIAMENT OF
DAILY HANSARD
THIRD MEETING – EIGHTH SESSION
The
Deputy Speaker, Sir Allan Kemakeza took the Chair at
Prayers.
ATTENDANCE
At prayers all were present with the exception of the
Ministers for Department of Home Affairs, Agriculture & Livestock, Finance
& Treasury, Justice & Legal Affairs, Mines & Energy, Communication,
Aviation & Meteorology, Provincial Government & Constituency
Development and the members for West New Georgia/Vona Vona, West Guadalcanal, East
Honiara, Small Malaita, Central Honiara, West Are Are, South Vella La Vella
& West Kwaio.
15. Hon
KENGAVA to the Minister for
Provincial Government and Constituency Development: Can the Minister update this House what stage
the development of the
Hon SANGA (Supervising Minister): Mr Speaker, I
would like to thank the Member for
The
SIG funded Choiseul Township Project No. 7170 under the Provincial Government’s
Development Budget head is currently at the early stages of its implementation.
The
project initially approved in 2005 for funding by PNG rolled over into 2006 and
was appropriated in the 2006 Development Budget Estimates under SIG funding to
the amount of $1.5million.
An
initial work program was drawn up in August 2006 but was later abandoned after
consultation with the Ministry of National Planning on the grounds that too
much emphasis was placed on capital equipment and committee establishment and
lacking in technical and planning issues.
A revised
work program which covered a planning phase and a pre-feasibility study period
was resubmitted in November 2006 and was given approval by the National
Planning in December 2006.
The
cost under the revised work program had been reduced to $761,880 and was seen
to be more realistic in achieving the initial stages of work to be carried out within
the first six months.
This
first work program will include the establishment of a project coordination
office, sorting out of land issues and a pre-feasibility study. The Rural Development Division of the Ministry
together with the technical advisor approved by the Choiseul Provincial
Government has begun work on this project in January 2007. To date a two member team comprising of a
surveyor and a valuer have just completed the pre-feasibility study last week and
are yet to present their report.
There
is a project steering committee that will be responsible for determining the
contracts of project officers working on the project. On another development, the project planning
officer within the Ministry of Provincial Government is presently in the
process of procuring office equipment in setting up the coordination office in
Taro.
It
should be noted that of the total amount of $1.5million there should be a rollover
of $750,000 in the 2007 budget estimates which is already reflected. At the completion of the first work program,
it will further require a second work program to be drawn up before new funds
can be utilized.
Mr Kengava: Mr Speaker, thank you for the answer on the update
of the
Mr
Speaker, I would like to know whether the Choiseul Bay Township Project is a
national project or a provincial project to be assisted by the National
Government.
Hon. Sanga: Mr Speaker, this project is a big project and
so it is a national project.
Mr Kengava: Mr Speaker, if that is so, then I am relieved
because I know that the
The
question I am going to ask next is, who is accounting for all the funds
allocated for this project? Is it the
provincial government or the national government?
Hon Sanga: Mr Speaker, for every national project, the executing
authority remains the mother ministry, and so in this case the Ministry of Provincial
Government is the executing authority.
Mr
Can
the Minister confirm what sort of work is involved in the planning stage or the
first phase, and why is this big drop from $1.5million to $750,000?
Hon Sanga: Mr Speaker, this is a new township that is to
be established and so it will relate to a number of things that is very
important for an urban centre. Land use
is very important such as civic, residential, commercial and industrial
considerations, which need very major studies on them and their effects on the
socio-economic environment including environmental aspects that are very
important for an urban township.
Mr HILLY: Mr Speaker, just a clarification. Is this project going to be on
Hon. Sanga: Mr Speaker, the project will be sited on the
mainland.
Mr FONO: Mr Speaker, what is the status of the
land? Is it customary or perpetual?
Hon Sanga: Mr Speaker, the said land will be acquired and so
obviously the acquisition means that it is still in the customary land.
Mr TOZAKA: Mr Speaker, is the land perpetual or
customary?
Mr Speaker: I think the Minister has said that it is customary and
it will be acquired for the purpose.
Mr Kengava: Point of order. When I became the first Premier of Choiseul Province
I started dealing with this land where the
The
land is under perpetual ownership by the Choiseul Bay Association, and they are
only willing to sell part of the land for the
The
question is, is the government ready or will be able to purchase that land
because the landowners are thinking to offer the piece of land to the
Government to buy off? If the government
pays off the land will it give the title to the Choiseul Provincial Government
or not?
Hon Sanga: Mr Speaker, the issue of purchase is part of
the package subject to the demarcation the Lands people will tell us. Once the area is identified then certainly the
Government would be in a position to consider issues of purchase.
Hon BOSETO: Mr Speaker, just to clarify my understanding
in relation to land. Although the
Association might have signed an agreement with the Province, the Association
is represented by the landowners themselves.
So if the landowners collectively and consensually agree to that then
everything should be just okay.
Mr Kengava: Mr Speaker, before I thank the Minister and also the
Minister for Lands for clarifying the land position, I would like just to make
a comment that the
The
importance of
I
would like to encourage the Government to go ahead with this project so that our
township can be relocated to the mainland.
With that I am sure the National Transport Plan will also include road
networks going into the township so it will come across to my area at Sirovanga
so that markets can be easily transported to the town.
Mr
Speaker, finally, included in the plan of the province also is when the
township is finally developed, the government should look at the idea of
declaring it a transit port - an international seaport for this country because
being at the border we are in a golden position to enhance transshipment into
this country.
With
those few comments I would like to thank the supervising Minister for answering
the question.
REGISTERED FOREIGN INVESTORS
16.
Mr KENGAVA to
the Minister for Commerce,
Industries and Employment: The new
Foreign Investment Act 2005 came into effect in May 2006. Can the Minister inform this House on: (a)
How many foreign investors are now registered in the country? (b) Of
those registered, how many to each province and
Hon AGOVAKA: Mr Speaker, I would like to thank the Member for
I
would like to correct one thing here, Mr Speaker. Just a correction to Parliament, the new
Foreign Investment Act 2005 date of commencement is
The
fact that the Governor General consented to it, I can answer the question if
the Parliament so wishes.
The total number of investors registered since the Act
came into commencement to
On
the second part of your question, Mr Speaker, the number of investors by
Province and
In
Honiara there 39 new investors, Guadalcanal Province 10, Isabel Province 4,
Makira Province 6, Western Province 13, Choiseul Province 2, Central Islands 2,
Malaita Province 5. The total is
95.
Let
me note to you Mr Speaker, that a number of investors have registered to
operate in more than one Province and hence that number.
Mr HUNIEHU: Can the Minister inform the House of the
values of these investments?
Hon Agovaka: Mr Speaker, the total value of these investments
is $436,604,164.
Mr SITAI: Can the Minister indicate the sectors which
these new investments have been approved to take place?
Hon Agovaka: The investors by sectors according to our
data are as follows:-
On
forestry (logging, milling and downstream processing) - 25 new investors, transport
and communication - 6, wholesale and retail 17, tourism (lodge, hotels, cruising
etc - 24, construction architectural engineering services - 4, fisheries - 14,
Agriculture - 7, consultancy and other services - 10, mining and minerals - 5.
Mr
Hon Agovaka: The question by the honorable Member is taken
note. I will get back to you when I have the answer.
Mr Deputy Speaker: Are you satisfied with that
answer MP for Rendova?
Mr Zama: Not quite satisfied, Mr Speaker, because I would
really like to know how much is invested in the country. It is very easy to apply indicating the amount
of money that one would want to invest in the country but it could be just a
number, and so it is important for us, the public and this country to know the
actual amount that is going to be invested in this country.
I am
raising this question, Mr Speaker, stemming from the fact that a lot of these foreign
investors who have been incorporated and operating in this country are not
bringing in foreign capital, which is really the intention of foreign investment
in the country. And therefore, I think
it is important and appropriate for the Department to clearly state how much is
the foreign capital that has been invested in this country.
Hon Agovaka: On the question how much investors spent in
the country only the business sector can determine the answer to that. The total value of $436,604,164 is the total
amount of investment that investors will spend in the country, and it is only
up to the business sector that can determine how much these investors spend in
the country.
Mr Huniehu: Of those registered investors, how many have
actually started implementing their projects?
Hon Agovaka: All of them have already started investing in
the country.
Mr Riumana: There are some investors who fail to comply
with the investment condition. What
measures has the Ministry put in place to monitor and ensure that investors act
according to conditions?
Hon Agovaka: I think you would know that if you are not
complying with the regulations of this country there are certain measures that
we can take. I have already cancelled
certain business licenses that have not complied with the business activities that
they applied for.
Mr TOZAKA: I noted that there are more investors in
Hon Agovaka: This is where the bottom up approach comes in
where we would like to decentralize all business activities and create job
opportunities and investment in the provinces.
Mr FONO: I understand this new Act no longer caters
for the Foreign Investment Board. What
mechanisms are in place to make sure investors are not operating on reserved
areas of Solomon Islanders?
Hon Agovaka: There are certain industries that are
reserved to Solomon Islanders. There are
certain businesses that we have banned, for example marine trochus shells and
etc. If any investor applies for this
business we would automatically reject the business proposal application. Other businesses that they can apply for be
can be accepted but not businesses that are reserved for Solomon Islanders and
business that are banned according to the various ministries.
Mr Fono: Based on my previous question, can the
Minister confirm whether internal shipping is reserved for Solomon
Islanders. There are now some foreign
investors operating in the shipping business.
Can the Minister confirm to the House if that is correct?
Hon Agovaka: Shipping is an open investment.
Mr Fono: Road transport – for example taxis and buses
is a reserved area for Solomon Islanders.
Can the Minister confirm that there are some foreigners who are now
involved in the transport industry in
Hon Agovaka: Taxis and buses are reserved for Solomon
Islanders. We are not aware of any
foreigners operating taxis and buses.
Mr Zama: Review work on the Foreign Investment Act
started when you were the Prime Minister, Mr Speaker, when the last government
was in power. What I would like to know
is that 78 applications is a big number and with the proposed capital
investment that would be flowing into this country, is there provision in this
new legislation for the government to do a bit of follow up action or summon
investors to be serious with their applications. What action will the government take to
follow up on investors in terms of getting the investment operations going?
Hon Agovaka: There is a registry system in place that
registers all investors. Investors are
given 12 months to establish. An annual
survey will be carried out after 12 months and should any investor who does not
establish after that time will automatically be deregistered. That is the system in place.
Mr KWANAIRARA: Out of those 78 approved investment in
Hon Agovaka: The total number of Solomon Islanders
employed is 1,606 and foreigners 819.
Mr Speaker: The question has been well covered by the
Minister. Can the MP for North West
Choiseul thank the Minister.
Mr Kengava: I would like to thank the Minister for
Commerce for answers to my question.
BILLS
Bills – Second Reading
The 2007 Appropriation Bill
2007 (debate commences)
Mr Deputy Speaker: The Chair has been approached
by the MP for East Are Are, the Opposition Shadow Minister of Finance and
Treasury to speak first to the debate on this budget. Permission has been granted and I now call on
the MP for East Are Are to deliver his speech.
Hon Oti: Point of Order, Mr Speaker. He is taking the floor as the Opposition
Spokesman on Finance, and that is why he has to take precedence over the rest
of the Members of Parliament.
Mr Deputy Speaker: He has written to the Speaker
on the first week of January 2007 and permission has been granted by the Chair
for the MP for East Are Are to be the first to take the floor.
Mr HUNIEHU: Mr, in summary I wish to describe this budget
as fiscally irresponsible and public sector expansionary. It offers no real growth, incentives to the
private sector and offers no real initiatives for the implementation of the
much talked about Bottom Up Approach.
There is a massive loss of donor funds in the development budget and the
confrontational government foreign policies and our recalcitrant attitudes and
behavior will affect the outcome of this budget. As I navigate through I will try to justify
what I mean.
Mr
Speaker, I wish to take this opportunity to contribute to the general debate of
the 2007 Appropriation Bill 2007 moved by the Minister for Finance and
Treasury, the MP for Gizo Kolombangara. This budget is seeking Parliament to approve
a total of $970million of which $790million will be spent on re-current
expenditures and $187million on development projects. This is the component
that will be expended out from the consolidated fund.
The
other component is categorized as Funds Jointly Administered by the SIG and the
Aid Donors, which accounts for the major part of the development budget for
$1.7billion but is not fully controlled by the government. These programs were
negotiated by previous governments therefore, I would like to take this
opportunity to thank those governments for negotiation these programs on behalf
of the people of
I would like first of all to take this
opportunity to commend the staff of the Ministry of Finance and everyone else
within the government ministries who have contributed one way or another in the
production of this budget for debate at this very timely hour. Now that this budget is in the hands of
Members of Parliament, it is up to us to make sense out of it. I urge Members
of Parliament to critically analyze the contents of this budget before casting
your vote at the end of the debate.
Mr
Speaker, it is very crucial for Members of Parliament from both sides of the
House to critically assess the budget as our people in the rural area see it
and in the best interest of our people.
I
intend to make some general observations about this budget before commenting on
the budget details. But in general I feel very upset that the
much talked about “Bottom Up Approach” rural policy is not reflected in this
budget in any measurable way and it goes to say that this rural policy has been
used by the Government for mere politicking.
On
the perspective of the Opposition Group, it has developed our four (4) previous
budgets on the foundation of developing better relationship with our
development partners focusing on the need to provide security and maintaining
law and order as an important pre-requisite to attracting investment into the
country, and creating confidence with all stake holders. Mr. Speaker, this budget speech has virtually
sidelined these issues and the need for security. I can understand why. It is because may be the Minister for Finance
would like to be different. He wants to
present a different Speech.
The Speech yesterday is just full of sugary stuff. It offers no real substance and meaning. It is a Frangipani ice cream speech.
(laughter)
Many budget speeches written
by the Minister of Finance when he was Permanent Secretary in the Ministry of
Finance, he always like to use the word fiscal stability, fiscal prudent,
fiscal imbalance – what a total opposite to the budget speech yesterday. I will tell you why later on as I discuss the
budget.
The
Minister of Finance and Treasury knows very well that the expectations of the
people of this country are very high. They are expecting too much from this
government because that is what they said when they took over the government in
April 2006. They offered to bring about
socio-economic changes to our country and improve the standard of living of our
people in the rural areas. They offered
to provide a sense of security to our people and to enhance and ensure investor
confidence throughout the country, as these actions will lead towards a greater
degree of economic recovery.
This
government has assured the people of this country that it will continue to
uphold the rule of law and work towards the complete eradication of lawlessness
and illegal activities. Moreover, this
government has committed itself in addressing the underlying causes of the
social ethnic tension, to deal effectively with the 1988 bona-fide-demands of
the
If
the Government is genuine about these policy statements and its commitment to
our people, then unfortunately, as I see it, its actions and behavior over the
last year did not reflect these noble objectives. It is my strong conviction that these actions
have placed this budget in an awkward position and therefore would not achieve
its targeted goals. Against its policy to maintain and uphold the rule of law,
justice and security for our people, this government had decided to engage
itself in a tug of war with the very institutions responsible under our Constitution
to protect the justice system in this country.
The
Government’s poor relationships with the legal fraternity, its interference
with the court systems and the work of the Police had scared our people, and
worst still many potential investors were reported to have rolled back their
investment proposals.
The
continued diplomatic stand off with
The
regionalization of the Julian Moti affair had caused much disrepute to our
country and the loss of integrity over this issue will continue to have wider
negative impact on our people. The
Julian Moti case has no direct bearing whatsoever on improving the livelihood
of our people, but it was allowed by this very government to take center stage
in its overall policy framework.
The
Government’s policy and attitude towards RAMSI is mysterious to all peace
loving Solomon Islanders. Whilst most of
our people accept the very fact that only good security and lawful society can
bring sustainable peace and encourage the flow of investment to this country, it
is very sad to see this government thinking otherwise. The Finance Minister must fully understand
that their actions and policies towards RAMSI is not accepted by the masses of
the people, and one which will seriously affect the outcome of the budget.
Mr.
Speaker, the traditional practice of conducting a donor’s consultative meeting
before drawing of the budget is very crucial for our interests. This is because our development budget is donor-driven
and the need to develop cordial relationship with our development partners is a
very important aspect in maintaining good understanding with both our bilateral
and multilateral partners.
Negotiation
for existing projects and new programs are conducted with mutual understanding,
respect and benefit. In fact we as recipients need our aid donors more than
they need us and therefore we need to develop a spirit of partnership and
cooperation that puts the interest of our people first.
Unfortunately,
this did not happen this year because the government had chosen instead to
create roadblocks with some of our major development partners and to engage in
issues that are not in the best interest of our people. This indeed has a negative bearing on the
status of the development budget, and as you all know there were no new
programs taken up and the loss of more than $100million of development aid to
our people, and no amount of explanations will convince me.
Mr
Speaker, the budget is an important document that defines the government of the
day monitory and fiscal policies, and it also spells out the development
policies and strategies of the government.
All the stakeholders await the announcement of the government policy
delivered through the budget, and in particular those in the private sector that
are planning expansion or initiating new investment proposals.
The
2007 Appropriation Bill 2007 is not offering new hopes for the future of the
people of
The
loss of development aid to our people must be explained by the Minister because
this is a serious slap on the very people we represent. The fiscal behavior of
this government is seriously questioned here when comparing expenditures of the
last fiscal year 2006 with this year 2007.
The
total expenditure budget has increased from $723million in 2006 to now $950million
including statutory expenditures and budget support funds. This only means less financial resources to
kick start the Bottom Up Approach. Are we
not throwing the bones of this budget to people in the rural areas?
The
budget must be realistic and must address the question of indigenous resource
exploitation because this is where the potentials of this country lie. Unfortunately, I failed to see this budget
addressed in this budget.
Whilst
the budget framework is focusing on provincial led growth, the fiscal behavior
and actions are incompatible with the statement. In order to implement some of these projects
we must save from our national budget.
Whilst the government is expecting a budget and revenue growth to $888million
there are no savings
The
fact that donor support to this budget had reached $2billion only suggests to
me that we have a donor driven development budget -
Somebody
once said that you can decide who your friends will be but you cannot decide
who your neighbors will be. We will
always be a neighbor with
Sir, on pages 2 and 3 of the budget speech yesterday, the
Minister of Finance stated three components of the budget. The first component is consultation with the
rural people and addressing the needs of the rural people. The second component of the budget is
developing infrastructure, and you can name the sorts of infrastructure he
meant. And the third component is about
capacity building. Where are we going to
get funds to develop these three components when we continue to create
roadblocks?
Revenues can only be raised through three options. The first is revenue derived internally. The second is from development partners
coming in, and third through loans from the NPF, ANZ, NBSI, Westpac, or the
World Bank, the Asian Development Bank and the EDF.
If we are to address the three components of the budget,
then I submit here in Parliament that first and foremost we must have respect
and we must consider establishing workable relationship with our development
partners based on mutual understanding and benefit. Otherwise the good speech yesterday will mean
nothing.
We have started wrongly this year with only $188million
worth of development budget. We were not
doing that during our time. I can show
as an example that the 2004 and 2005 appropriation bill passed in this
Parliament, the development budget was about $292million, almost $300million
and the expenditure was $531million. In
the year 2005-2006, the total government expenditure was $666million and
development aid was around $300million.
But now this appropriation bill, the total recurrent and development
expenditure is $970million, of which $790million will be recurrent, which is
more than $130million over expenditure from last year and the development
budget is $188million. We need better
clarity and explanation as to why things have gone haywire.
We are depriving the people of
Mr
Speaker, the overall economic performance as reported by the Central Bank is
positive. In fact during the fiscal year
2005 the economy rebounded with a growth rate of 5%, and this was largely
because of improvement to law and order and security provided which gave much
confidence to the private sector to continue expand their operational
activities and a reasonable flow of investment to the country which followed
these positive actions in law and order.
Thanks to RAMSI for its total input in restoring law and order to this
country.
Whilst
the economy had shown a positive growth rate of 5% this is not sustainable as
logging income comprised a substantial portion of both our export sales volume
and revenue collection. As predicted,
the current rate of harvesting round log stocks will be depleted within the
next 10 years. This will leave a
permanent income gap in our budgetary process which needs to be seriously
addressed by this government and future governments.
I
must again re-emphasize here that future ongoing growth depends very largely on
our ability to provide adequate security measures to our investors or the
private sector of
Sir, then we look at the supporting industry that would
enable further economic growth. The
Ministry of Agriculture, what can it do?
What can this Ministry do in order to deliver some of the development
aspirations of our people? The Ministry
of Agriculture if it is well funded can do a lot.
I do not have to wait, Mr Speaker. The Ministry of Agriculture and the Minister
himself can confirm that they have been given a skeletal budget to drive cocoa,
to drive the coconut industry. This
$3million is not enough. Is this what we
meant by the Bottom Up Approach? How can
you deliver the expectations of our people when you have been given a skeletal
budget?
According to the Central Bank reports, it has noted the
need to revamp capital into this sector because it is one of the two sectors
that injects hard cash into the pockets of the people in the rural areas. Rather than talking about intensifying the
activities in the rural areas to get more local farmers into production, we are
addressing issues that are totally outside of the interest of the people in the
rural area.
Why can we not start a program right now? If the Minister is talking about it, I have
not seen it in the budget. No. I am only talking about what I see in the
budget. And mark my words, Mr Speaker,
that you cannot continue to disregard these important sectors.
The SIPL will be in full production in the next one to
three years, and that should be a credit to
We
make things happen and we have been making things happen in the right direction
and you continue to systematically discard and disregard and dismantle the very
structures that we have created and developed with no positive options. The Solomon Taiyo – we initiated these things
and everything else happening positively.
On
commerce, I am surprised that the Minister is not complaining about the way the
government is treating his ministry. He
is only given $4million. Just look at
the recurrent budget, this Ministry is allocated with about $20 to
$30million. That means the budget is
only paying for staff and not paying for outcomes, not paying for actual
projects. Mr Minister, you better make
all your workers redundant.
The
Minister for Agriculture as well has $27million for emoluments or wages. What sort of projects are you running for the
people when you only have $3million for agriculture? It means they are earning public money for
doing nothing. It is all for operational
activities and not for development. That
is what I am saying. The same goes to
the Fisheries Ministry, the Tourism Ministry and the Ministry of Mines and
Energy.
The
Minister of Commerce must be doing more than what it is doing right now. This is the heart of the nation.
I am
belittled when I hear a total investment of only $400million. This is peanuts. This is only about US$50million. That means people are scared in investing in
I
want people to feel confident. I want
investors to see
The
Ministry of Agriculture, Commerce, Fisheries, Energy, Tourism and Forestry are
the ministries that are supposed to be driving the bottom up approach policy of
the Government. They are the ministries
but now the Minister of Finance is saying that the provinces will be doing it
in a new collaborative arrangement with the government. But what about these ministries created here?
Can they do it? I think we can do
it.
On fisheries,
Mr Speaker, the revenue we are receiving from fisheries is small but an abundant
resource that we have. It was claimed
that in our regional waters the total value of fish in these waters is worth
more than $2billion. What can we do in
order that we can get maximum benefit out of our resources? Otherwise, Mr Speaker, the corporate cowboys
coming in, meeting us in
The
Minister did not indicate what sort of budget is this. I wonder whether it is a deficit budget, a
balance budget or a surplus budget. I saw a little figure there for $5million
but I am questioning where that is true or not. That’s my view.
I am
glad the Minister made some comments in the Speech yesterday in trying to get
more local Solomon Islanders involved in the harvesting of our fish. I hope this will be implemented.
I
have seen in Madagascar and the Maldives the World Bank assisting local
fishermen in providing small loans for them to buy fishing boats and the people
do the fishing themselves to sell to the tuna markets, the tuna factory there.
We
have a ready market for their catches and yet Solomon Islanders are not
benefiting. But unless we clear our backyard
we cannot negotiate with the World Bank, the ADB on this kind of quick proposals. We have to clear our backyards before we can
because our total national debt service is now $130million we owe everybody
about $2billion and so we have to critically look at this.
Mr
Speaker, on tourism I wish to say to the Minister for Tourism to critically
look at the Anuha Proposal and Mavo Tasifarongo as conduits to expand tourism
and encourage more investment in the tourism sector in this country. Anuha is government owned land and the Mamara
Tasifarongo can be redesigned so that the interest of original landowners, the provincial
government and stakeholders, the investors taken into account and restart.
If
we have to return the land to the
I
come to forestry. The Forestry industry in
this country is one that breeds too many corporate cowboys and these are people
who benefit from this resource than anyone else. But
the resource is owned by the people, by Solomon Islanders but why can’t we
initiate schemes whereby Solomon Islanders can buy their own machines and harvest
their own timber resource. Why can’t we
do that as a an important measure to Solomonize this resource in the best
interest of our people. Why can’t we do
that? I think the time is now right for
this government to starting at addressing that.
Otherwise in the next 10 years there will be nothing else left in our forestry
sector.
Whilst
I am saying this, Mr Speaker, I am helping a Solomon Islander to register about
4,000 hectares of customary land so that he can do logging inside, and it
happen. Why can’t we start this
important process? If we fail to do that
then this 40% to local people and 60% to foreigners will continue to be the
case in the next 10 years until all the logs are gone. But yet the logs are worth billion and
billions of dollars. Why can’t the
Ministry initiate a corporate plan to start this process? A local Solomon Islander had done this himself
and he made good use of it.
Forestry
as an important resource of this country must be assisted by the government. The machines that are used in doing the
logging here are imported from
The
logging industry is the only industry that Solomon Islanders know how to
manage. About 90 percent of the workforce
in all the logging companies in the country is Solomon Islanders and only half
percent are foreigners. In terms of labor
and in terms of skills we have it already. It is only money that we do not have.
On renewable energy and mines, Mr Speaker, since I came
into this Parliament 13 to 14 years ago I have been drum beating this issue of
renewable energy when I first entered Parliament in 1993. At that time the price of crude oil was about
US$25 per barrel in the World Market but now the price of crude oil has reached
its peak, some months back to $80 per barrel and now it has slide downwards. Although it is reducing it is predicted by
oil experts that by 2020 the price of crude oil will reach US$150 per
barrel. This to me is the single most worrying
factor and an unsustainable scenario will cripple our economic base beyond repair. At the moment oil represents about 22 to 25%
of our total imports, therefore, the need to develop and create an energy
efficient economy as an urgent priority.
Of
notable interest and importance to us is the production of bio-fuel out of
coconut oil. Coconut oil driven motor
should be encouraged and also growing of more coconut plantations to provide
sufficient raw materials for this industry.
This will mean a double benefit to the economy as we add value to our coconut
product and offer a steadier and higher price to farmers in the rural
areas. No wonder, Mr Speaker, I am
always drum beating in this House of the need to plant more coconut to enrich
this country.
We
should provide more incentives to our people to equip their homes with solar
power and the development of hydropower throughout our country. This may seem impossible to many but the
whole world is now shifting towards renewable energy. The developed world at the moment is deploying
a lot of financial resources to address renewable energy.
The
two recent converts on renewable energy are none other than John Howard, the
Prime Minister of Australia and George Bush, the President of the
At
the moment we do not even have a corporate plan to tap into these renewable
markets. At the moment although there is
a feasibility study report on the potentials of hydro power in the Ministry of
Energy, there are no follow ups as to a proper feasibility study and assessment
on likely projects that can receive financial assistance. We must see this as an urgent priority for us.
With
more mines coming up within the energy sector, I hope that the investment climate
and investment atmosphere is conducive. This
is very important because these people will be investing, not a million dollar,
some of them will be investing $400 to $500milion. But if they see their funds being threatened
they would not come forward although the resources here are abundant. If they do not come forward the end result is
that no development and landowners cannot benefit anywhere with the resources
they own.
I
come now to the Ministry of Education. I
just want to make a comment on this Ministry, not only because it is a ministry
with a highest budgetary allocation but it is a very important one as well.
Actually
a total of $235million is allocated for the recurrent budget and $17million for
the development budget. Because of the rising
cost of our education system
We
must now venture into cost saving methods but with quality outcomes of our
education system. In this connection may
I suggest again as I did once before in this Parliament that we pursue the
option of developing a full fledge On Line University Campus for Solomon
Islands as the best option to achieving our aims to develop a University Campus
in Solomon Islands. This method will be
the cheapest and will offer the best alternative for more Solomon Islanders to
earn their certificates, diplomas, degrees, and masters through hard work.
Mr
Speaker, this concept is not new, but one that is popular throughout the world
and likewise is now in use here in the
(a) To
provide equal opportunities to all Solomon Islanders to pursue an education
qualification which will help them find employment or become more productive in
their various communities,
(b) To increase the number of Solomon
Islanders’ access to tertiary education in pursuant of higher educational
achievements,
(c) To provide an alternative which is
proven to be more cost effective yet providing improved learning through use of
satellite facilities and;
(d) Proactively shifting towards
developing a full fledge Online University Campus in
At
this juncture, Mr Speaker, I just wish to draw the attention of this House to
the importance of these proposals.
Studies
were undertaken on the cost of educating of our people at university levels at the
USP,
Mr
Speaker, when you talk about 80% of the total university tertiary budget, it is
an enormous amount of budgetary allocation. The way forward, as I can see is corporatization
of our education system so as to bring in a full fledge online education.
The USP
will not accept this because it is against its economic interest. It wants our student going to
On
the public sector, Mr Speaker, the economy is made up of two important
sectors. One is the public sector and
one is the private sector. Both sectors
play a complementary role with each other.
I
wish to comment first of all on the public sector. Whilst the public sector is involved mostly on
service delivery and regulatory practices, it plays an important role in
stimulating the economy and therefore its efficiency is crucial in economic
management and in ensuring that it sets the right policies and creating the
right atmosphere for growth of the private sector.
To
achieve these objectives the public sector must be equipped with qualified and properly
trained staff to develop appropriate policies and applied proper management tools. Unqualified public servants must be phased
out and replaced with new graduates and the process of public sector reform
must continue.
All
the outdated governing laws must be completely reviewed to avert continued
practices of corruption within the public service and to ensure that the
practice of good governance and accountability.
Whilst
RAMSI is involved in these endeavors more needs to be done. All the government ministries must be seen as
the entrance gates to the government public sector and therefore they must be
service oriented.
With
the reform exercise, the issue of degovernization must form the core of these
exercises. The popular shift in
expanding the public sector must cease.
This is reflected in increase expenditure in the recurrent budget. Savings made in these reforms should be
diverted to the private sector and in particular the rural base bottom
approach.
If
the public sector is allowed to overgrow the private sector then the ability of
the private sector to compete with the market house will be seriously
undermined and weakening its base, and it is happening right now.
Mr
Speaker, the private sector is described as the engine for growth, and this is
only true if the government develops conducive policies to encourage private
sector growth. I am disappointed that
this budget did not spell out in any clear terms how government policy will
create a breeding ground for active private sector participation.
On
the other hand as I alluded to earlier the actions of this government since
taking office have deterred massive investments in tourism, mining,
manufacturing, transport and other key industries. According to reliable sources, more than $2billion
worth of investments has been held up as a result of uncertainties created by
the government through our confrontational policies and threats to some of our
investment partners.
I
have been in contact with many business friends in the private sector, and have
identified areas that needed urgent attention such as taxation, the public
sector red tape system, security, law and order, good investment laws, policies
and a complete deregulation of all the outdated regulatory practices.
As
well as these, financial resources available from the banks must be affordable
to encourage borrowings and a good return on investment. Utility supplies such
as electricity and water to the private sector is appalling, very unreliable
and expensive. Furthermore, obtaining of
land for investment is difficult both in
I
must point out that the Ranandi Industrial site could no longer accommodate new
investments and has become a bottle neck issue for the government. New industrial sites have to be identified
and developed.
On
this issue I can only see one possible alternative, and that is the
Lungga/Tenaru land. Proper arrangements
should be negotiated with the Guadalcanal Province and the current title
holders of this land and the original landowners to allow more development
activities to take place, and for the long term security and sustainability of
this new industrial estate, the Guadalcanal Province, the original landowners must
be given the option to hold the perpetual title of these lands.
On monetary policy, Mr Speaker,
the monetary policy administered by the Central Bank is helping to keep our
foreign reserves at a healthy level. I
do not know may be six months worth of import.
Whilst the policy is helping to control the rapid depletion of our
foreign reserves, this tool of economic management needs to be reviewed now in
particular with other aspects in the monetary practices. For example interest rate payable on deposits
is too low with only .5%. That is only
what the banks are paying to the deposits. That does not encourage savings. This is very serious because we are simply
doing injustice to the small people of
Mr
Speaker, on fiscal policy I quite agree with the Minister of Finance that we
must exercise fiscal discipline and we must address our fiscal imbalance. We must control our habit of over expending
public funds, we must be more careful how we approve our expenditure costs in
all our ministries so that we can make savings.
I would
like to touch on another important issue, Mr Speaker, taxation. One of the tools that can destroy or
stimulate an economy is taxation. I
believe that our taxation regime needs to be thoroughly reviewed to improve our
revenue collection. The taxation policy
at the moment is targeted at over taxing entities and individuals who are
involved in revenue generation, so much so that these entities are so soaked up
with the tax burden and could not breathe properly. This affects and restricts their growth plans
and a dynamic disincentive for these people and entities to expand their
operational activity.
Our
comparative tax rates are higher because businesses have to pay numerous taxes
which impacted negatively on the final cost of goods to the consumers. In fact when you assess the final cost of
goods to the consumers, when businesses have to pay custom duties, surcharges,
GST, and other related costs, the average tax burden that consumers have to pay
is around 25-50% depending on commodity taxes.
Our
tax system is based on a discriminatory framework, and not premised on the
principles of a level playing field. We must encourage without fail a just tax
system as a fair return for all those hardworking citizens, investors and
business houses. There is no need to
have exemptions for a privileged few which are normally abused and creates
breeding ground for corruption. In fact
revenues forgone with exemptions are worth more than $200million annually, and
most of these exemptions are provided on requests to the wealthy people in the
country, when the poorer people and in particular those living in the rural
areas and the less fortunate are subjected to the normal tax rates. I do not see the logic and justification in
these practices.
Mr
Speaker, may I further submit that the current tax system is too complicated to
understand and therefore is often abused, and very costly to administer. If we are to improve revenue collection
within the tax regime then we have no choice but to begin the process of review
right now.
Moreover,
the changes advocated must take into account the need to be, efficient, fair,
simple, transparent and revenue stimulant.
I am a strong believer of tax reform as I think this will only result in
a drastic improvement of the overall economic performance. As I browsed through this budget I failed to
see any emphasis and commitment for tax reform by this government, and this
will be regrettable if this is reflective of their priorities. But
I thank the Minister for Finance for briefly expressing the need for tax reform
in the country.
The
PAYE in
Company
tax should also be reduced to attract investments and discourage tax evasion
and tax avoidance. People are forced to evade, and avoid taxes because of
strict tax laws which make it difficult for them to comply. When people make
their money in the country they should find it easy to pay their tax, in
particular company taxation where companies pay tax after profits are declared
to their shareholders.
Mr
Speaker, the government should seriously consider doing away with the GST and
Value added tax because of the unnecessary burdens placed on people. These taxes make up between 25% and 50% of
the cost of goods in shops which cannot be justified in
Mr
Speaker, on import and export custom excise, one of the major revenue
collections is through customs and excise tax, and this brings in a total of
about $300million in revenue earnings, which represents big increase to
government revenue earnings.
The
concern I wish to raise here is that with the introduction of containerization
worldwide, this system is more open to abuse, let alone its effectiveness in
cargo deliveries. Under invoicing and
other abuses such as hiding of goods, deliberate wrong codifications and
classifications of goods are often practiced by business people so as to pay a
minimum duty levy on the deflated value of goods. This is costing millions of dollars worth of
revenue yearly and a way must be found to bring a stop to this kind of
unscrupulous and illegal practices.
There
is a need for better cooperation between the Ports Authority and the Customs
Excise Division to avoid continued abuse of the system. It has been a common
practice the collusion between Ports workers, Customs Officials and importers
of goods to avoid and evade paying the rightful assessed tax to the government,
and unless we improve control and surveillance these practices will continue.
It
has also been a common practice that goods are entering the country through
other ports of entry in the country in the absence of proper customs clearance.
This normally happens with log ships that are entering our ports to load export
logs.
Mr
Speaker, not only we are cheated with import taxes, the same also are applied
with export shipments in particular logs.
The undervaluation of the real export value of logs is causing a massive
drain on government revenue.
I
have mentioned exemptions, but I
further submit that if fair taxes are applied on the principle of a level
playing field, more people will be paying taxes to the government and hence the
need for tax exemption will no longer exist.
I am requesting my Minister of Finance to investigate the way exemptions
are given. It is a discriminatory
practice and is a colonial way of providing favors to people in the hierarchy
and not the rural people. It is
discriminatory, unfair and we lost millions of dollars. I estimate we are losing more than
$200million annually. That added to
your recurrent revenue budget should increase it to $1billion in total
revenue. Why give it away in tax
exemptions?
Whilst
the government expects to collect a total of $888 worth of revenue for this
fiscal year, I must warn the government that some of these estimates were not based
on sound economic rationale. For example,
its revenue estimates on the forestry sector is questioned by this sector, and
hence the increased revenue forecast of $48million may be difficult to
realize. The same may also apply to the
estimated revenue collectable on fisheries sector, as this depends largely on
the el-Niño weather conditions.
However
I must congratulate the government for the marked improvement on revenue
collection this year over the same period last year. You
must continue on with the good work. I
believe that further liberalization of the tax regime could widen the scope for
improving revenue collections and this must be encouraged.
I
would also like to thank the previous government for making it possible for
this increased revenue collection possible.
The technical assistance provided by RAMSI in the Ministry of Finance
and everywhere else is helping the government to realize this increase in
revenue collection. And this is where I
would also like to thank the previous government for its contribution.
Mr Speaker,
the total public expenditure for this year had increase from a level of $666million
last year to now $950million including statutory costs. This represents a real
increase. As alluded to earlier, this signals a dangerous course on the
management of public policies and resources.
Of
course, we must continue to provide services to our people, but at affordable
cost to the little people of this nation in the rural areas who are paying for
this public service through their taxes, through their sweats. They
are the ones who are paying these costs and yet we throw them peanuts when
delivering a budget of this nature.
There are some expenditure items which can be
reduced, controlled or phased out if proper corporatization, and privation
arrangements are made. For example, the
government is spending may be $30m annually on house rentals. This is draining of public resources. The next 10 years I am predicting that
$400million of taxpayers’ money will have been spent on rentals, for the
expensive public servants, for expensive government offices.
Whilst it is argued this is one way of helping the
private sector this is misleading. I say
this because we are denying the rural populace of this country of the social
development that they need.
I think the interest of our people in the rural
areas must come first. They are the
bedrock of our democratic system, bedrock of our constitution, so why disregard
them in this Parliament. This is not
fair.
Mr
Speaker, another important aspect of the public sector economy is the statutory
institutions in the country. I am glad the Minister of Finance has already
start exercising some prudent fiscal policies in cutting back the
subventions.
What
is most disastrous about these institutions, to me, is the benefits they are
receiving under legislation. Free taxes,
concessionary loans and exemptions are given to them left and right because the
law says so. Yet they are ones that
contribute most to our public debt. We
need to know how much the Ports Authority owes the World Bank or the NPF and
the rest of the statutory institutions that owe funds guaranteed by the
government.
Prime
Minister Lee once said in
Investment
Corporation, Mr Speaker. I believe the
Investment Corporation must be redressed with a new suit. The purpose of establishing the Investment
Corporation of
I am sorry my good Chairman of ICSI is
here, but if you look at the bottom line of all your portfolio companies, no
one is making money, so what are you there for.
You are in business to make money.
If you are not making money cut it off.
People in the rural areas need that money. My suggestion today is to refocus and
redesign the Investment Act of Solomon Islands to engage in more investment
development with the rural base resources.
That is the only way forward.
That is where we should be implementing the bottom-up approach.
If
I have 500 hectares of cocoa land which I cannot raise the capital then I
should be coming to the Investment Corporation and say look here I have the
land, no land dispute so you can develop 500 hectares, can you find the
capital, and the government should pump in the money through the budget and
look for collateral finances with development partners. This is how we cause production in the rural
areas. But at the moment what is
happening, Mr Speaker? The Prime
Minister wants to export all our laborers to
(hear,
hear)
We
should be utilizing our total labor force in planting more cocoa and more
coconut in the rural areas. If we can
find employment for 20 to 30,000 farmers you can see how the economy will grow,
you can see the level of work generation that we will make.
It
worked during the colonial era when subsidies were provided to our people they
developed all the cocoa and coconut plantations. Now there is nothing happening. So what is wrong? We should be going back to the old way. If the new way is not leading us to
prosperity, I am recommending that we go back to the old way. Or are we too proud to take the shoes of our
colonial people, Mr Speaker? I am
not. I am willing to take on their
shoes. This is a development
pattern. This should be emphasized more
in this budget.
Mr
Speaker, this is how I want to see the Investment Corporation of
I wish to say here that even now the Central Government
does not need to engage in partnership with the rural people of
This
20,000 hectares of cocoa would yield a net profit to this country of more than
$2billion worth of cocoa. We should be
talking about how to enhance and increase export in traditional crops like
cocoa and coconut where our people already have the skills. Every time we talk in Parliament we want a
new crop. Now skills in business
development are important Mr Speaker. We
already have the skills. The Deputy
Prime Minister should just find the money and we go ahead.
A
motion was passed in this Parliament to restart the subsidy scheme in
particular cocoa and coconut. You find
$200million tomorrow, give that inducement to our people and you will have
50,000 hectares planted by the end of next year. That is how Solomon Islanders respond to
government policies. This is true, Mr
Speaker, so let us try it. The time for
experimenting is finished.
On
development aid, the changing political behavior in
In the post conflict budget 100% of our
development budget were funded by aid donors because our revenue base could no
longer sustain our demands. This only
goes to show how dependant we are with our development partners. Past leaders have established cordial
relationship with our development partners so that they can continue to
maintain their support to us.
As a
nation we owe a debt of gratitude to our development partners for their positive
contribution to the economy of this country.
I wish to salute and congratulate the taxpayers in these donor countries
for their continued assistances to our people, in particular to those who have
committed themselves in funding our development budget throughout the post
conflict period.
As a
nation we have an obligation to reciprocate these friendly gestures, and the
most expected from our leaders is developing good understanding, mutual respect
and a meaningful partnership.
Unfortunately the leadership of the Grand Coalition Government had
decided to take us into a storm of words and create poor relationship with one
of our biggest development partners. In
whose interest is that? The result and
effect is clear already. This is where
we as national leaders must exercise caution and flexibility when passing our
judgments.
The
non cash grants, basic equipments, logistics and others that were initially
negotiated by the previous government stood at $17million. How many of us stand here to appreciate this
aid assistance? And how many of us in
this Parliament continue to disregard this assistance from our development
partners? And how many people in
On
banking and credit union, Mr Speaker, the availability of credit to the rural
people is the only way to develop the abundant rural resources available to our
resource owners. And I thank the
Minister for Finance for amplifying this message in his speech yesterday.
Whilst
most of these resources are owned through the customary ownership, the
financial mechanism must be developed to recognize customary ownerships. Failure to do so will only mean that more
foreigners will interfere and make use of the ignorance of our people. The informal sector resource is worth
billions of dollars and therefore our banking and credit system must be
designed to accommodate these realities.
Rural
based resources can be properly developed to provide capital for rural credit
and banking. A classical example is the
timber resource worth billions of dollars.
In the absence of these, we are simply allowing the unscrupulous logging
practices in our country and they will continue to affect our good intended
policies.
Mr
Speaker, the government’s plan to reopen the DBSI is welcome news. But this Bank will be operated as a
commercial bank therefore restricting our people to borrow because of their
stringent requirement in collaterals, mortgage facilities, and other
compliances. The present banking system is based on discriminatory practices
where the have nots are simply ignored and only the well offs are assisted.
A
classic example, Mr Speaker, is we have a population of 500,000 people and how
many of these people have loans. I think
it is only less than 5,000 that have loans from the commercial banks. Is this fair?
Is this what we call equitable distribution, Mr Speaker? No. This
is what our present banking system is meant to be. It is based on the assumption that only when
you have sufficient security, never mind how educated you are, never mind how
good you are, you are not welcome. It is
a sacred power Mr Speaker.
The
micro finance scheme as advocated in the budget is an option but we have yet to
see the government’s total commitment and redefine the scheme, but the
allocation is not reflective of any major policy shift in the banking
industry. Whilst most countries in the
world are reporting on the success of established micro credit schemes, in our
country we are only witnessing the declining status of rural credit finance. Sad to see the rural credit orgnanization in
the country no longer functioning. As a
consequence of this, many credit unions in
I am
also interested in the Women’s Bank advocated by some members of the
public. I have not heard of it nor is it
reflected in the budget. We have been
told that it will but never to be.
I
wish to take this opportunity to commend the Public Accounts Committee for its industrious
work in scrutinizing the government budget.
I hope they continue from there.
I
wish to commend the Public Accounts Committee for its hard and industrious work
in scrutinizing the government budget, so that the budget complies with the
parliamentary processes. However, the
committee must not stop here but continue to scrutinize and audit the budget to
fulfill the requirements of parliament.
Periodical and progressive reports must be tabled in parliament so that
we are able to monitor the actions of the public servants implementing the
budget.
It
has been common knowledge that some public servants are making use of some of
the development projects in this budget to benefit themselves and their cronies
through the practice of nepotism very rampant in our society and system. Moreover, Parliament needs to know the
effectiveness of project implementations.
Donor partners that use delaying tactics to implement their projects
must be warned and asked to comply with the rules of engagement.
It
is one scrutinizing the budget but the most important aspect is know whether
the funds have been expended on the right projects, have been hijacked by other
projects or were spent in accordance with prudent and fiscal management
policy.
I
am requesting the Prime Minister to give my good friend a big office so that he
works full time with the Auditor General to continue audit public
accounts. Every audit exercise done in
the pigeonholes shows very serious reports.
This committee must be properly facilitated. But that is not the purpose of accountability. The purpose of accountability is that every
fiscal year there must be a report. I
hope that my good chairman takes on this very important process of public
accountability for Parliament.
The
Chairman of the Bills and Legislation Committee should be given an office too. These two things work hand in hand
together. If you have outdated laws then
public servants will make use of those laws to benefit themselves. That is the reason why many reports tabled
here we see that is what has been happening.
Fisheries
laws, immigration laws, citizenship laws, police laws needs proper
legislation. Otherwise the continuation
of maladministration because public officers have been given power to exercise
certain decisions that may not be in the interest of the government.
Thank you for agreeing to my submission. I hope that we move to a new office next
week.
I
wish to comment on the work of RAMSI as it relates to the budget. The Minister
of Finance did not mention the work of RAMSI in his budget speech. I can see why he had carefully chosen to
eliminate the mention of RAMSI because may be he would have like to amplify AMSI
not RAMSI in his budget speech.
Sir, the work of RAMSI in the overall economic
development of the country is very huge.
I must first of all thank this Parliament for its wisdom in enacting the
Facilitation Act 2003 which cleared the way for the arrival of RAMSI.
Leaders and Members of Parliament who criticize
RAMSI and the Facilitation Act as irrelevant are simply questioning the
intelligence of this Parliament, and for these leaders I seem to think are
questioning themselves on their decisions.
The improvement in security, law and order and hence
the upward swing in the economy soon after the arrival of RAMSI must be rightly
acknowledged by this Parliament for without their arrival and active
participation, this positive achievement of this budget is questioned. We must appreciate the outcome of the work
they did for our country.
The argument that only 20% of their aid remains in
the country is totally irrelevant under current circumstances. Their work as stipulated in the MOU signed by
all the Forum Countries Leaders are to engage in providing security and
enforcing the rule of law. We must look
at the outcomes and don’t criticize. We
look at the outcomes of their work. I
think they have done very well in achieving the objectives that they are here
for.
The process of good governance and accountability
has become an important aspect of their work responsibilities. We just cannot totally ignore the massive
Australian aid into this country, which are helping our people build new
schools, clinics, water supplies, roads, and bridges. Of course, all development aid donors to our
country should have the right to negotiate the areas of developing partnership
with our country.
As one of those who supported the Facilitation Act
when it was introduced in 2004, I will remain with this arrangement as long as
it is justified. Of course, Parliament
has the right to review this Act on a yearly basis so I have no complaints but
I am fully satisfied with the outcomes of this arrangement in our country.
On development strategies, I am calling on this
government to return us into the post colonial era wherein the economy was
properly planned and launched through Development Plans Strategies, where
government budget and resources are managed within the scopes of these
development plans.
Mr Speaker, you will note
that during those years proper development were debated in this Parliament, and
the last one was the Sixth Development Plan which contained the short, medium
and long term development goals of the government and where the government
implements the program contained in these development plans.
What we are doing here is simply what they called
“programs of actions.” Sometimes this
can be much distorted. What sort of
programs are these? What sort of
actions? Is it missing in action? We need to develop these important
development strategies so that we can manage the economy within the description
of this national development objective.
At the moment we can easily change mind. Today and tomorrow we can continue changing
our decision. That is not helping
anybody at all but it is only confusing people when we continue change
positions at the Cabinet level, ministerial level and at the PS level, the
Under Secretary level. I am too sick and
tired of this kind.
Mr Speaker, my favorite issue is political
stability. May I once again raise the
need to create the mechanisms and legislative framework to create a politically
stable environment. Sir, without
political stability our efforts to provide the desired national leadership will
be in vain. Because of politically
changing circumstances we cannot pretend that we can lead in these socially,
economically, and politically polarized periods when the forces within society
are loose and especially controlled by Members of Parliament and politicians. We must now establish a politically. I am
saying this because I see political instability as the greatest danger to good
economic management and accountability.
I wish finally to conclude by saying that I stand on the
statements that this budget is physically an insufficient budget, it is public
sector expansionary and offers no real incentives to private sector growth, and
I hope that as we see fit reform the capacity in which we make decisions so
that we can make financial prudent decisions on behalf of our people in Solomon
Islands.
First and foremost we must provide a sense of security
for this nation so that our visitors, our investors can enjoy the process of
development.
I am asking the government to weed out the issues that is
causing roadblocks in our relationship with development partners.
I only hope that he will find the money to exercise the
implementation of these projects.
With those, Mr Speaker, I resume my seat.
Sitting suspended for lunch break
Mr ULUFA’ALU: (the
first part was not recorded)
There is already a
significant difference in the way we are doing things. Resources do not matter in this instance
because the resources are available for the top down and the same resources are
also available for the bottom up and so resources is not the problem. The problem is the understanding of bottom up
and top down. If we do not understand
the difference between those two things, if we do not understand what bottom up
means or what downward means then we will be wasting our time trying to
advocate the terms.
It
is not the question of resources because the resources were always there. It is the question of the system that we are
asked upon to deliberate. What does top
down means and what does bottom up means?
Top down Mr Speaker, assumes that life is already there, and so from
that life you take what you want from it, whereas bottom up assumes that life
starts at the bottom and whereas top down assumes life starts at the top. So they are two quite distinctive
things.
The
methodology required to understand and to do them is quite different, they are
the opposites. One way is you come from
top downwards and the other is that you come from bottom upwards. You need to understand the difference because
if you do not understand the difference you would not make any impact.
Resource
wise, resources are available and so resources is not the problem. It is understanding how the two systems will
operate. Which of these two systems
gives you an independent situation?
Mr Speaker, the top down is associated with
colonialism. Therefore, everything that
we have been doing from top to down assume life exists somewhere and that life
must be the one imposed by colonialism. Hence, we want to change from a colonial
imposed system to our own system, and that is why we think the bottom up will
probably give us that.
Bottom
up means we start from ourselves, in ourselves and doing things ourselves. That is the bottom up. We start from ourselves, being ourselves and
we do things for ourselves.
The
two quite distinct differences are colonialism and decolonization. Bottom up is decolonization of our thinking,
our thoughts, our thinking abilities, our actions, our words, and the way we do
things. That has to be changed. Our thoughts, words and deeds must change from
top down to bottom up. We must change in
that context. If we merely argue that it
is the resources then we are mistaken because resources will remain the same
but the way we develop the system that is the one that we should be arguing
about. We should not be talking about
resources. Resources are allocated every
year. It is the way resources are employed,
it is the manner they are used that is of primary importance. That is important and that is what we should
be looking for.
What does the top down approach mean? The top down approach means the base is
somewhere for which life is coming from.
Because it is colonialism, Mr Speaker, the base is the colonial system
itself and that is why it is top down as far as we are concerned.
Once
we say it is bottom up it means we are putting back the owner on ourselves as
leaders, as workers, as doers of things, placing the owner on ourselves to be
the doer of the thing, to say the things, to think about the things, and to do
them. That is what it is shifting. It is shifting the burden of the owner from
being recipient of the authority somewhere else to ourselves as the
authority. The authority to do things,
to think, to talk is ourselves, and that is what the bottom up gives me. Whereas top down, it is not. You are receiving authority given to you by
somebody else and that somebody else carries the benefit of the doubt at the
end of the day. That is what this bottom
up calls for. It calls for us, for our
thoughts, our words and our deeds to be ourselves none other than ourselves.
The onus is placed squarely on us. If it
cannot be us, then who else? Man is
different. Man does things for
himself. That is why the saying goes
like this, ‘the goodness of things is in you, the bad things is also you’. So we are the carrier, we are the responsible
people and that responsibility becomes much clearer when we pursue the bottom
up perspective. That responsibility of we
ourselves can make us good and we ourselves can make us bad. No one can make us bad and no one can make us
good. It is only ourselves that can make
us good and it is ourselves that can make us bad. That is what the bottom up perspective
gives. It gives the owner of you
yourself a destiny of yourself. You yourself
are the destiny. It is the good, the
glory or the evil and the bad. It does
not give you any lesser degree. In fact
it gives you the full impact of being just unto yourself.
We usually complain about things as not working out for
us. But that is primarily because of our
own faults and that is why things did not work out for us. Things do not happen by themselves but it is
us that make it happen to us in a good way or in a bad way. That is why the bottom up approach gives us
the best opportunity to put our thoughts, words and deeds into action.
Having said, Mr Speaker, I now come to resources. Resources are available in how many
quantities we want. But it is action
that we need to put these resources into better productivity and better production.
That is missing. Sometimes we are self possessed with some
thinking that that way will give us the optimal, only to realize later it does
give us the optimal.
Sir, in terms of resource allocation - resources are not
the problem, the problem is us. It is us
that is the problem. In that context we
are looking at ourselves in the mirror, looking at what had happened to
ourselves, what we can do ourselves and how we would do it ourselves. That is what we are looking at, and it is in
this context of diversity in unity that is missing.
Mr Speaker, unity comes about because of the needs of
each other. We ourselves are so diverse
that we need each other for survival, hence we have to respect the bounds of
our individual and collective survival.
It is in this area that when we misjudge we find it difficult to survive
because we are trying to survive in the opposite areas of survival, not in a
complementary way. Hence unity in
diversity becomes a very important factor.
In fact it is unity that is essential for working together and
cooperation.
Where there is no unity there is no existence. Unity is the only way forward and the only
way of survival because we need each other.
Unless we realize that, all our languages will be different. So unity in diversity is the key to our
actions, our cooperate actions, our individual actions should be guided by
unity in diversity.
Mr Speaker, this is what it calls for in terms of
resources. What does it mean? It means the system must be in place
first. If the system is not in place
first but resources are in place then you will find abuse to happen. The resources will be abused because there is
no system in place. An adherent system
is the most important consideration.
Having agreed that this is the system in which we will administer our
activities we should comply with those, because non compliance, Mr Speaker,
will mean problem. So compliance becomes
an important factor.
The system itself is most
important before the resources, because the system will dictate the rules upon
which we play by. And these rules are
normally not to our all liking. Some of
the rules are to our liking and some are not but we have to have them because
it is important to live by the rules that we agreed to live by.
It
is in this context that the resources are open to abuse by us leaders. Hence we can allocate all the resources but
if there is no system in place to handle the resources, they will be open to
abuse like some of us are now finding.
Last
year we had at our disposal as MPs $1million dollar each, Mr Speaker. How much development has that achieved in our
respective constituencies? That is what
is called accountability - resource allocation but are we accountable as
leaders? As leaders are we
accountable? Is the system we put in
place the best to ensure accountability, transparency, responsibility or is
not?
Last
year, Mr Speaker, we had consumed in each constituency $1million allocation and
so the question of resources is not a problem.
The problem is the system in place that will give us the best
results. Have we got the system in place
or are we too obsessed with the resources that we are more concerned with
resources than the system itself. We can
have all the resources in the world but if there is no system it will
fail. Hence it is important to have a
system in place.
The
bottom up means the system, Mr Speaker.
What is the system? Is it just
counting the number of bottoms? No, it
is a system, and what is the system. Can
any Member of Parliament answer this?
No! Mr Speaker, we do not have a system in place because we are using
the old system to implement new thinking.
What does that mean Mr Speaker?
It means we want more resources but we do not care where it goes. That is what it means. The system that is required to be in place is
not in place. That is what we are seeing
now happening.
And
in order to put the system in place what do you need? You need yourself as politicians and you need
your workers - public service and the people because that is what the system
is. The system is the people, the public
service, the workers, and you as leaders.
Since
when have we been working together Mr Speaker?
Politicians are working closely with public service and both politicians
and public service are working closely with the people. Since when was that? We see each other as enemies or we see each
other how best we can steal from each other.
That is what we are seeing.
Who
has the upper hand to manipulate things Mr Speaker? The bottom up talks about the people, it is
really the people and a company in the people is the public service - the
workers and we the politicians coming in as businessman, coming in as
politicians, coming in as trade unionists and all that. But we are still essentially the people. So it is nice to have all the money in the
world listed but if you do not have a system in place to use those monies in
the best way productively, you are better off without it. We are best of without it because abusing it
is worse than living without it.
It places
the onus back on us politicians. Are we prepared ourselves to take the lead our
people need? Are we prepared to talk
with our people with organizations, and various stakeholders, Mr Speaker? Because the base, the home grown is actually
us.
The
new roadmap is what we are talking about.
It is us being able to live as a politician, being able to live as a
follower, being able to live as a specialist being able to live as that in
whatever capacities we are called upon to perform our jobs. It is us and unless
we learn to talk rightly with each other about our problems and talk frankly about our own problems, we will not do
it.
If
all that is full in us is to get this and that for ourselves when that somebody
is not watching then it is full of nothing but conspiracy implementation. Are we 50 Members of Parliament prepared to
take this road and go? We are the ones to
take the lead and let our people follow us.
Are we prepared to do that? Or
are we using this only as way to get allocations.
Mr
Speaker, it is us politicians should be the first ones to champion this. We should be the leaders. We should be the workers to teach our people,
and it is not difficult to do that. Once
we do this resources are already there anyway.
We found out last year that we got one million dollars allocated for
each constituency and it will be the same this year.
Mr Speaker: Point of order. The Chair simply wanted to know whether the
Honourable Minister for Health is working on a laptop on a matter directly on
the issue of discussions or are you doing something else? It might be in breach of Standing Order
37. Please continue honourable
Member.
Mr Ulufa’alu: Thank you, Mr Speaker, maybe the honourable
Member is getting my speech computerized.
Sir, we as leaders must take this move.
We must not push it to another man.
No! It is us. Each member takes his own burden from his
constituency and does his job as required and we are made accountable.
There
should be an organization in place that will make each constituency accountable
and that should be provided by the Office of the Prime Minister or the
Provincial Government. That office is
important to ensure all of us Members of Parliament and our constituencies are
accountable in a transparent and responsible way for these public funds. That office is important to be in place.
If
we do it this way, Mr Speaker, surely we do not need to worry about other
donors as other donors will follow suit. We will then do the budgeting from a constituency
centred base rather than a provincial centred base because a provincial centred
base is still too big. The constituency is a more appropriate one.
Our 50
constituencies are small enough to be effective. That is what we should do. But we have to create very credible
arrangements. Accountability,
transparency, and responsibility by constituency - they must be made
accountable. And their accounts must be
subject to audit because they are public funds so that the same test applies. If we can do it this way it will have an
impact on the lives of our small people.
Credit
can be easily organized through constituencies - 50 credit unions. You have already one in the country Mr
Speaker. In fact the DBSI should be
owned by the 50 constituency credit unions joined together to own the DBSI -
private sector ownership. Isn’t that the
way to go? Instead of selling the DBSI
to a different person, then what are we doing, Mr Speaker? If we sell it to others but not ourselves
then what are we?
Mr
Speaker there is a good base with the ANZ drive for rural banking and such a
move like this by the constituencies to form a credit union. You already have it and it is going to be owned
by the people and not the government.
Isn’t that the way to go?
Sir,
these are options the government needs to look at. We need to look seriously at this. There is no point operating like what we are
doing at the moment where it undermines any credit arrangements that it may be
operated where grant money to constituencies and to businesses are directly
competing with those lending institutions, hence undermines the viability of
credit financing. I think if we bring
everyone into one common fold of credit financing through such an arrangement
of this nature, it will improve the viability of the properties and yet owned
by the people and not the government. That
is what we should be looking at Mr Speaker.
We
should be looking at placing the burden on our shoulders. We do not have those burdens on us and that
is why we are giving excuses left and right.
But if you put us into doing those things, Members of Parliament and
their constituencies and their wards to do those things surely we will do them. That is what we need. We need to act decisively.
Mr Speaker, I do not want to talk very long but I would
be very brief and will stop here. I want
to see us 50 Members of Parliament to stop politicking, join forces together,
put or heads together in unity and diversity and let us think about these
things through and let us do them. Let
us do them.
With those few comments, Mr Speaker, I support the Bill.
Hon KWANAIRARA,
Mr Speaker, thank you for giving me this
opportunity to make several comments, observations and reflections on the 2007
Appropriation Bill 2007 on behalf of the chiefs, elders and the people of North
Malaita Constituency.
In so doing, I shall also be making a few remarks
relating to the budget speech so elegantly delivered by the Honourable Minister
for Finance and Treasury.
Before I do so, Mr Speaker, let me first thank and
congratulate the Honourable Minister for Finance and Treasury for his
leadership and hard work that has resulted in the tabling of the 2007
Appropriation Bill 2007. Without his
leadership this Honourable House would not be able to debate the 2007
Appropriation Bill 2007 at this point in time.
Mr Speaker, I also wish to thank all the hardworking
staff of the Ministry of Finance, all the Permanent Secretaries and their staff
for their dedication and endurance in ensuring that the budget is ready in time
for this Parliament Meeting.
Finally, Mr Speaker, it would be remiss of me if I forget
to thank the hard working Chairman and members of the Public Accounts Committee
for their meticulous and diligent checking and questioning of Permanent
Secretaries and their accounting staff to ensure the budget estimates not only
reflect the government’s development aspirations but also within the prevailing
legal framework.
Mr Speaker, the people and the nation awaits the handing
down of the 2007 estimates with the right
expectations.
Since the Grand Coalition for Change Government (GCCG)
came into power, it promised to challenge and change status quo by seriously
taking economic development to the doorsteps of our rural people. Mr Speaker,
as MP representing the people of North Malaita Constituency, I also waited
eagerly to see how the budget might provide a framework for enhancing and
achieving the social and economic aspirations of my constituency.
Mr Speaker, if there is anything that worries me most, it
is the heightened expectations of the people especially those whose perceptions
are clouded by false political promises and indoctrination. The way our people perceive and translate the
rural development message maybe quite different from what we anticipate or
envisage.
Mr Speaker, I pray that I am wrong and mistaken that the
majority of the rural people are anticipating the manifestation of the rural
development of bottom-up approach dollar.
At this juncture let me warn
My concern here, Mr Speaker, is that any public
pronouncements should be matched by action that is fair and just. Mr Speaker, I will support any government
that truly serves its people well and consistently.
Mr Speaker, the national government is the largest spender
in the economy. The budget estimates,
especially our revenue targets can only be realized in a stable and improving
socio political environment. Given our
outstanding political stand off with Canberra and uncertainties surrounding the
RAMSI’s future in Solomon Islands, are but few of the concerns I have regarding
achieving our development objectives in the long term.
Mr Speaker, these are my serious concerns and the Government
needs to be proactive and positive in addressing the current political cloud,
especially those that relate to our international relations with
Mr Speaker, the nation needs to know why an Australian
now in custody and other Solomon Islanders plotted to kill the Prime
Minister. The people of
The
government’s policy and plan to rearm the Close Protection Police Unit is yet
another destabilizing factor in the minds of many who were seriously
traumatized during the recent crisis.
Mr
Speaker, these are matters of national security and it does have direct and
indirect impact on the implementation of the national budget programs. Mr Speaker, in the systems thinking
everything connects to everything else and nothing under the sun stands alone.
Mr
Speaker, finally as far as I can remember there has never been any official
SIG-donor partners official meeting held prior to the finalization of the 2007
Development Estimates. This is a sign to
what I alluded to earlier that the current socio political climate is not very
conducive to donor partners’ dialogue and open communication.
Mr Speaker, the budget overview. In looking at the 2007 SIG budget under
summary of revenue and expenditure, one finds that the current budget will have
an estimate minus surplus of round about $4.9million. Revenue estimates for 2007 is $877million, an
increase of 27.5% higher than the 2006 budget estimates.
The
payroll has increased by 46%, and I hope this is to cater for a new pay
structure of teachers and not merely funding an ever expanding public sector
employment scheme. The salaries, benefit
levels of political personnel as highlighted in the Solomon Star this week
speaks volumes of an attitude of empire creation and self service by a
political government that speaks so much of serving the people.
Finally,
the 2007 recurrent budget was drastically reduced due basically to lack of
donor partner support in the current estimates.
Much
of the government revenue, Mr Speaker, estimates for 2007 is generated from
Customs and Excise, Inland Revenue and others.
It is my hope that Customs and Excise and Inland Revenue Departments are
strengthened in terms of more training, institutional strengthening to enhance
the quality and effectiveness of their work.
They are doing marvelously and I urge them to continue to be diligent in
stumping out those who corrupt the system for their own gain, especially the
merchandize importers.
Mr Speaker,
the major package funding includes those that will benefit from rural
development such as:
(i)
Support to governance.
(ii)
Productive sector
(iii)
Community
services
(iv)
Law and justice
(v)
Public sector
strengthening, and
(vi)
National debt
servicing
The
total development estimate is about $1.9billion. The development estimates continued to be
dominated by donor funding of round about $1.7billion. While consolidated fund remains at
$188million of $1.8billion donor funded.
Over 70% goes back in terms of salaries and benefits to technical
experts or TA s.
Mr
Speaker, the nation continues its dependency on aid assistance. This is a sign of political and economic
weakness. We have just thrown out a
supported Police Commissioner and just recently the Minister for Foreign
Affairs begs our Melanesian brothers in
Mr Speaker, we should be more mindful in
seeking aid otherwise it becomes an embedded culture that leaves us vulnerable
to external exploitation because of our tit-for-tat foreign relations attitude.
Mr
Speaker, at the outset let me state that it would be difficult for those who
are not well versed with the reading and understanding of the budget to see
where the rural development bottom-up approach funding will come from. The budget shows rural development support
under the development estimates from the following sources:
·
European Union -
$1.1million
·
AusAID or RAMSI
$2.6 million
·
World Bank - $7.3
million
Mr
Speaker, the Minister of Finance in presenting the budget speech stated clearly
that our donor partners supported the budget.
I have an opposing view and that is because I failed to see this support
in the recurrent and development estimates.
The above support by donors reflects fully on the government’s effort to
gather support for its rural development programs as envisaged by the government.
Mr
Speaker, what you can see is a drastic reduction in donor support towards the
recurrent estimates with
Mr
Speaker, in terms of assessing credit in rural areas, the Minister of Finance
highlighted that government has tailored a business loan guarantee or scheme
worth $10million. Mr Speaker, this
reminds me of a small loans guarantee scheme now operated by the Central Bank
of
Mr
Speaker, my question is, how different will this scheme be compared to the one
now operated and managed by the CBSI?
How will ordinary rural people compete in the commercial banks to access
this guarantee? Will it be easy for the
rural people?
I
am saying this because there will be many technical requirements and only those
in
The
need now is for the government to put an immediate halt to recruiting community
development officers and carry out further assessment and consultation with the
provincial governments, more especially the 50 constituencies. We should not rush and do things that should
be done by the provinces and their respective constituencies.
The
government is a legislature and a national policy formulator, hence it should leave
much of the detail thinking and planning to people at the grassroots level
together with their respective national leaders and the ward members.
The
rural development approach, Mr Speaker, is indeed important but the government
is trying to do too many things for everybody.
When will we really practice the bottom up approach? This is a top down approach as far as I am
concern.
Mr
Speaker, if the government is serious in improving rural production and raising
their income levels, I believe the present bureaucrat arrangement will not
assist in achieving such noble political and economic philosophy.
I
propose that the government establishes a new ministry to be specifically
concern and focused on all matters concerning rural improvement. I have on several occasions called for halt
in creating further public service funded positions for the simple fact that we
seem to be rushing with the implementation of this development approach.
In
conclusion despite all the good ideas put forward in this budget, the only
tangible assistance to the rural people is in the form of the RCDF, Poverty
Fund and micro projects. The way forward
is to allocate more funds to each constituency, and in terms of the principle
of equity and equality.
The
way forward is to fund each constituency on the basis of population. This is the best approach to rural economic
development. Each constituency or region
such as the
Mr
Speaker, at present all the constituencies receive the same amount of money
despite the fact that on one extreme some constituencies have less than 2,000
people while others like Central Kwara’ae have 22,000 people. It is not fair for them to be provided the
same level of financial support to the constituencies. I believe it is very unfair and I believe
this budget will further aggravate this unjust funding situation.
Rural
infrastructure development is essential.
I am talking about good roads, strong bridges and wharves that can
withstand strong and rising seas. Communication and transport services need to
be improved before economic life can grow in the remote areas. Otherwise we will continue to give false
hopes to the people. Rural credit
infrastructure development and consume credit and banking education are
important for financial literacy and business success. I wish the government success in its efforts
of carrying out its rural development bottom up approach in 2007.
With
these remarks I resume my seat.
Hon LENI: Mr Speaker, I rise to contribute to this budget that
is set before this honorable House.
Mr
Speaker, the Ministry of Fisheries and Marine Resources mission is to encourage
and facilitate economic growth through the proper management and sustainable
development of its fisheries and marine resources.
Our
major objective is to ensure that the nation’s realization of its maximum
revenue objective captured and derived from these resources through its
commercial fisheries activities both at the national scale and as well as at
the provincial and rural scale.
Other
associated fringing benefits have also been enjoyed by our people from
fisheries during the past years. These
include the many job opportunities provided by the domestic fishing industry
and the rich nutritious amino protein often obtained from the daily consumption
of fish and the various projects by our local people. Those who provide the various services to the
fishing industry also benefit indirectly from these establishments
locally.
For
the information of this honorable House, Mr Speaker Sir, domestic fisheries in
Solomon Islands are of two distinct types, namely the industrial tuna fisheries
which is based on the country’s rich tuna resources and the rural subsistence
and semi commercial artisanal fisheries which mainly targets the use of
fisheries resources, the deepwater snappers, the small tunas that frequent
inshore areas of our numerous islands in search for food.
Mr
Speaker, more than 80% of the
This
is an issue my Ministry will be addressing to see how best Solomon Islanders could
get maximum benefit from our inshore resources.
Mr
Speaker, the country’s inshore fisheries resources have been harvested over the
years by the rural coastal communities for their daily food requirements and
for the export markets. The
sustainability of the inshore fisheries for the long term benefit of our people
however, continues to be a great, necessary step to properly manage these
inshore resources through the introduction of appropriate specific resource
management plans will be introduced by my department. The process towards having sound management
plans however, will be dotted by the further full participation of resource
owners, communities and stakeholders are like.
Mr
Speaker, having said that a number of precautionary measures have been taken by
my Ministry, bans to prevent the further decline in the status of certain
inshore resources such as the beach-de-mer, pearl oysters, green snails to
over-harvesting levels have been introduced whilst awaiting the completion of
appropriate management plans. The
current bans on these fisheries resources are temporary and we fully intend
lifting them as quickly as we can. We
are well advanced in developing new management plans and these management plans
are expected to provide the blueprint which will guide the use and management of
our fish resources.
Mr
Speaker, the domestic commercial tuna fishing industry is the biggest and the
most important fishery in
Having
said that Mr Speaker, it is important to note that the Tuna Industry is global.
Our domestic companies are competing
globally in one of the most fiercely competitive business there is. There is not a level playing field in this
business and we need to support our companies in the bid to strengthen their
presence in the national markets.
Tariff
and non tariff barriers to create an investment are changing the environment
based by both industries and the government.
New
technology has the potential to place stocks under pressure. Major fishing nations are expanding their
fleet in the processes environment is changing with new challengers to maintain
boat supply and price stability. These
are some of the challenges our local Tuna Industry is already facing. We must ensure that we keep the interest of
these companies and the wellbeing of their hundreds of employees at the
forefront of our consideration.
Mr
Speaker, total revenue collected last year by the ministry from fishing
licenses, fees, export permits and transshipment levies amounted to
SI$46million versus a budgeted amount of SI$35million. Preferential treatment which includes lower
fishing license fees and more access to waters within the main group
archipelago (MGA) up to 12 nautical miles territorial waters have been given to
licensed local fishing vessels of the domestic tuna companies as an inducement
for investment in
As
for licensed fishing vessels under the regional FSM arrangement and the U.S.
Multilateral Fisheries Treaty, they are permitted to fish up to 60 nautical
miles around the MGA. License fees for
both these arrangements are paid directly through the FFA being the
administrator of this specific arrangement.
Mr
Speaker, my Ministry anticipates that this year we will well above $50million. This is due mainly to the recent increase in
the license fee negotiated last year under the various bilateral access
agreements and a new agreement with the European Union for the purse seine and
long line vessels. In addition, as the
current El Niño weather pattern weakens down this year and the tuna moves
westward, we will likely see upsurge in fishing operations in our waters. There will also be more transshipment in our
official designated transshipment ports of
Mr
Speaker, the export of raw and processed tuna products such as canned tunas,
arabushi and tuna loins to overseas markets by the domestic tuna companies has
resulted in substantial foreign revenue earnings to the companies and the
country as a whole over the past years.
With
the recent signing of a collaborative transshipment agreement between Soltai
and Trimarine International at the end of last month, all processed tuna
products are likely to be exported in the coming years from
Mr
Speaker, the total allowable catch for the Solomon Islands EEZ from the most
recent EU funded regional SPC Tuna Tagging program is estimated at 120,000 metric
tones per annum, which skipjack accounting for 90,000 metric tones and 30,000 metric
tones of mainly yellowfin and other tunas making up the total.
Under
our current National Tuna Management Plan, this Total Allowable Catch (TAC) has
been converted into license limitations by gear-type and by zone. This TAC, however, has not been fully
utilized over our financial benefit.
Much to the unused TAC and the new licenses have been given to foreign
fishing vessels covered under our bilateral fishing access agreements.
Mr
Speaker, for the information of Honorable Members of this House, our bilateral
access agreement with the Tuna Associations of Korea and New Zealand are for
purse seine vessels only, whilst that with the Tuna Association of Japan are
for long-line, purse seine and pole-and-line vessels. The bilateral access agreement with the Tuna
Association of Taiwan and the EU are for both purse seine and long-line
vessels.
In
addition to fishing vessels under these bilateral access arrangements, licensed
purse seine vessels under the Multilateral Fisheries Treaty with the
Mr Speaker, having alluded to the above, it is worth
informing this honorable House that there is a collective move by Forum member
countries to enter into a multilateral economic partnership agreement with the
European Union. This agreement is a
general trade and marketing agreement which covers fishery products as well. We are excited by the opportunity this
presents as the European market pose considerable promise for our country.
The
fact that we did not quote our total allowable catch indicates that our tuna
resources are still in a very healthy state. This certainly is true for skipjack, a fast
growing tuna which dominates the tuna species catch composition for the waters
of
Mr
Speaker, very high harvesting levels of yellowfin and bigeye tuna has been a
cause for concern hence management measures have been enforced by the Western
and Central Pacific Commission by placing a cap on the fishing effort levels in
2005 to remain at the 2001-2004 levels and a catch level of 2,000metric tones
per member country’s fishing fleets for both yellowfin and bigeye tuna.
With
the exception of yellowfin tuna where its catches are exceptionally high for
the waters of
As a
member of the Tuna Commission, Mr, Solomon Islands is obliged to work closely
with other member states and to take the necessary steps to address the current
unsustainable catches which are likely to lead to an over exploitation of
yellowfin and bigeye tuna stocks.
At
the sub-regional level, Solomon Islands as a party to the Nauru Group Agreement
of FFA member countries with substantive tuna resources will continue to work
with other parties and to control the purse seine fishing efforts within their
EEZs to the newly introduced Vessel Day Scheme (VDS) which is now on trial
basis and will come into force in December 2007.
Mr Speaker, at the regional level the Forum Fisheries
Agency continues to play a very supportive and active role in assisting
The globalization of fishing fleets and the inter
relationship between different tuna stocks means our management must extend
beyond the region. For
Mr Speaker, also at the regional and international front
Mr Speaker, having the significant capacity to shoulder
our legal obligations and responsibilities has continued to plague our active
participation as a state party to these conventions and treaties. Let alone our ability to capitalize on the
many benefits we can derived from these legal instruments as members.
Mr Speaker, the
The
principle of conserving our fisheries resource through sustainable utilization
is also advocated under our present 1998 Fisheries Act, hence our support to
the sustainable use of whale resource.
Mr Speaker, the long delay taken to complete the IWC
Revised Management Scheme which is a useful regulatory management tool to guide
the Commission and member nations on the sustainable harvesting of its whale
resources, continues to be an area of major concern in my Ministry. As a nation that believes in the sustainable
used of its natural resources, the continual delay in the completion of the
revised management scheme does not support the spirit of the convention.
Mr Speaker, my Ministry will continue to be proactive in its
quest to seek opportunities from which we can all benefit. In this respect, my Ministry in collaboration
with the Ministry of Conservation and Environment will be submitting a paper to
Cabinet seeking approval for accession of the Convention on the International
Trade of Endangered Species of wild fauna and flora. Being a signatory to this convention will
enable
Mr Speaker, having alluded to the above, at the home
front our government’s policy on fisheries is geared towards the further
development of our domestic tuna industry and the involvement of our local
people in both the catching and processing of tuna.
My Ministry’s
corporate plan has been developed and designed to adequately capture the
essence of these policies for the fisheries sector as well as that of the Fisheries
Act which stipulates that the objective of fisheries management development in
Solomon Islands shall be to ensure the long term conservation and the
sustainable utilization of the fishery resources of Solomon Islands for the
benefit of the people of Solomon Islands.
Mr Speaker, a number of key outcomes have been identified
through the corporate plan as priority areas that my Ministry has to deliver
results if it is to fulfill its purpose and achieve its vision. Through the
corporate plan, the Ministry of Fisheries and Marine Resources is working
towards ensuring the following:
(i)
that there is
increased opportunity and increased livelihood for rural fishers.
(ii)
that there is
increased potential value of the fishery, meaning improved quality, more
products, more volume, more profit, more local processing, more investment and
more Solomon Islands’ involvement.
(iii)
that there is
improved Solomon Islands Government earnings from the realization of the
international value of fisheries as a resource and effective licensing
procedures.
(iv)
that management
plans and appropriate legislations are in place for keys species such as tunas,
beach-de-mer, trochus and coral and increase community management of these
resources.
(v)
That monitoring
systems are in place which should provide accurate and timely information of
commercial and subsistence fisheries for all stakeholders including regional agencies
and that the organizational capacity of my Ministry is enhanced.
Mr
Speaker, the new corporate intent has forced my Ministry to adjust its
organizational structure. In the new
structure we will be having the following divisions:-
1.
Offshore
Fisheries management
2.
Aquaculture
3.
Inshore Fisheries
management
4.
Provincial
Fisheries Development and Extension
5.
Fisheries
Management policy
6.
Market and Business
Development,
7.
Statistics and
information
Mr
Speaker, you will note from the recurrent estimates that budgetary attempts are
now arranged based on these new structures.
Mr
Speaker, the various line items and projects seen in both the recurrent and
development budgets are attempts by my Ministry to see that the various outcomes
of the corporate plan, which I had just gone through are adequately addressed.
For
the current fiscal year, eight (8) fisheries development projects have been
included in the budget for the consideration and approval of Parliament. Out of these projects, four are primarily focused
towards rural fisherman in the provinces.
This, as you would agree is the
prime focus of the present government’s fisheries development policy.
Mr
Speaker, projects focused towards the needs of the rural fisherman in the
development estimates includes the following:-
(1) support
to rural tuna fisheries, which basically is to support the rural production of
tunas, skipjack for local sales and the export market and provides stocks to
the local fisherman to catch tuna and sell them to the domestic Soltai company
for processing.
(2) The seaweed
commercialization project under EU/STABEX funding which provides local
fishermen in the provinces with seeds of the seaweed to be grown by these
fishermen as alternate source of income and a new export commodity from the
country to overseas markets as dried seaweed.
(3) The
rural pearl farming project which will carry out further research work to
provide a better understanding of the seasonal recruitment of pearl spats, best
area for the collection of their spats and their eventual farming plus other
information that is required to make pearl farming a success in Solomon
Islands. The outcomes of this survey
will be compiled invite there would be investors, and
(4) The
Institutional Strengthening Program which seeks to increase the capacity of my
Ministry to effectively and efficiently manage the Solomon Islands Marine
Resources in a sustainable manner.
Mr
Speaker, the rationale is that over the past decade there had been huge changes
across the globe in the way people value and use natural resources. Where in the past emphasis in fisheries was
often placed on developing ways of exploiting new stocks or increasing the efficiency
or fishing old ones. There is now a
realization that the resources are limited and will require effective
management if they are to be used sustainably.
This
ship in thinking is an apparent policy of the government in its legislation and
in international agreement which the country is a party, hence the direction my
Ministry is taking through this program.
Under the program, various technical assistance and training will be
provided to start in my Ministry and stakeholders alike in order to help them
perform their duties more effectively in managing the country’s fisheries
resource in the future.
Mr Speaker, it is also expected that the following
outcomes will be achieved under the project and this includes:
(1) the
strengthening of the Ministry of Fisheries and Marine Resources’ capacity and the
need to acquire new knowledge and skills necessary for an effective, efficient
and sustainable management of the country’s fisheries resources.
(2) the facilitation
of the development and implementation of the marine sector management plan and
appropriate legislation.
(3) enhancing
the capacity of the Ministry to identify and facilitate greater opportunities
and improve livelihoods for the rural fishermen.
(4) the improvement of the Solomon Islands
Government revenue from licensing through the introduction and the management
of a resource license system that is based on appropriate management plans and
legislation that is supported by an effective compliance system, and
(5) delivering
project inputs that are responsive to the needs of the Ministry and NZAID, and
to promote, monitor and evaluate the impact on achievement of the project goal
and purpose.
Mr
Speaker, the funding arrangement for the program is now in the development
budget and the implementation of the institutional strengthening program has
now commenced.
Mr
Speaker, the recurrent budget and the development budgets estimates for my Ministry
for this fiscal year have been tailored to accommodate all the planned work
programs and projects that will be carried out by my Ministry during this financial
year. It is my sincere hope and request
that both budgets for my Ministry will get the favorable blessing of this
honorable House.
Mr Speaker, I would like to summarize our position that
the Ministry is a revenue earner for
Mr
Speaker, this is just the beginning. My
ministry is now heavily involved in a substantial reorganization. This will ensure we can better manage
considerable responsibilities. We have to
ensure optimal conservation, economic and social outcomes for our fishery and
our people. We have bigger and
developing community based management plans to better manage and ensure returns
from our inshore resources. We have linked
the management of our major tuna fishery for development in our inshore
fisheries. These developments alone will open new and
valuable markets to our inshore fisheries that they previously had no access
to. Mr Speaker, we are committed to
making our fishery one of the largest, if not the largest source of economic
benefits for
In conclusion, Mr Speaker, let me once again assure this
honorable House that my Ministry under its new corporate plan will work more
effectively to fulfill its obligations to the government and the needs of the
people of
Mr
Speaker, I support the Bill.
Hon MANETOALI: Mr Speaker, thank you for allowing me to
contribute towards the debate on the 2007 Budget Speech.
Mr Speaker, this is the first budget that provides for
separate heads to the National Judiciary and separation of the Ministry of
Justice headquarters with its own allocation.
The
aim of my Ministry in 2007 is making legal and judicial services more
accessible to the people of
In relation to the Attorney General’s Chamber, we are
working to recruit the vacant position of Solicitor General to strengthen the
office. There will also be as from this
year contribution by way of grant to the Financial Intelligence Unit, a unit
established by the Anti-money Laundering and Proceeds of Crime Act, which is
currently located at the CBSI.
The Office of the Director of Public Prosecutions,
although does not get any increase in this year’s budget will continue with its
work of prosecuting offenders.
We have now invigorated the Law Reform Commission and are
slowly trying to have it staffed. One of
the references given some years back and which it will pursue now is the review
of the country’s Penal Code and the Criminal Procedure Code. We anticipate that the review process will look
into the policy intentions of this government, like developing alternative
sentencing options in the penalty provisions of the Penal Code and include
humane traditional justice and cultural values as part of the Penal Code.
The Ministry will utilize existing funds within its
budget and some of its share of funds for vacant posts to meet improved terms
and conditions of service of its Lawyers and Magistrates recently agreed to, to
ensure we retain our local Lawyers and Magistrates to enable the continuation
of the capacity building program that the Ministry has been undertaking after
the arrival of RAMSI.
In
the course of this year, my Ministry intends to bring to this House
legislations to provide for a body to deal with disputes over customary or tribal
land; a new Evidence Act, amendment to the Magistrate Court Act to provide for a
unitary Magistrates Court set up and increase civil jurisdictions of
magistrates, a Bail Act, new civil procedure rules for the High Court and the
Magistrates Courts. These proposed
legislations are intended to allow for the involvement of chiefs, tribal and village
elders to play a major role in the resolution of land disputes and to use our
traditional ways of resolving land disputes; codify existing evidential rules,
incorporate use of evidence obtained as a result of new advancement in
technology into rules of evidence for use by the courts; have the magistrate
courts bring judicial services closer to the majority of our people than is
presently the case today; provide statutory procedures for the application for
and the granting of bail to make it more transparent how and when bails can be
granted by the courts, and make rules of courts are made to reduce delay in the
hearing and disposal of cases before the courts and also allow for assisted
dispute resolution mechanism in the rules to allow for settlement of disputes
and only leave those that cannot be settled to go before the courts.
Also
as I speak, Mr Speaker, we are doing preliminary work in looking at possible
legislative framework to provide for the autonomy of the national judiciary as
envisaged in this government’s policy framework document.
The
Ministry is also working to develop a graduate lawyers’ program and has been
working with the RAMSI Law and Justice Program to carry out a student placement
program during last Christmas holiday.
This student placement program is targeting Solomon Islands Law students
at the regional universities. These
students are placed in our division to gain some insights in the work of those
offices so that they get first hand experience and feel of the work carried out
in those various offices. We hope that
that connection will eventually entice them to come back and work in those
offices when they graduate.
The
law graduate program is intended to address the need for law graduates to gain
experience to enable them to get themselves admitted to the High Court of
Solomon Islands. The program is expected
to place law graduates in any of our legal offices or with private law firms to
give them work experience before they can get admitted to the High Court of
Solomon Islands. We intend to work
closely with members of the private law firms and the Solomon Islands Bar
Association to develop this program, and eventually implement this graduate
lawyers program.
Mr
Speaker, for the first time, we have a separate head for Judiciary in our
budget. This is intended to allow the
Judiciary have more say and control over the use of its budget. The flow on effect of this is that the courts
will be in a position to plan and carry out their work programs without much
interference. The separate head for the
Judiciary is a first step in implementing this government’s policy
statement.
My
Ministry and the Judiciary intends to work closely with the Ministry of
Finance, the Attorney General’s Chamber and the Office of the Prime Minister to
work towards the next step of fulfilling this government’s policy of ensuring
the constitutional intentions in regard to the autonomy of the legislature and
the judiciary is carried out.
Mr
Speaker, the National Judiciary has been allocated funds both in the recurrent
and development budgets to carry out the followings in 2007 –
§
More High Court
sitting sin 2007.
§
More Local Court
sittings throughout the country including provisions for chief’s hearings in
relation to land disputes as a first step under the provisions of the Local
Courts Act. We hope to put in place
regulatory and necessary mechanisms prior to any disbursement of funds to
ensure there is transparency and accountability for funds utilized.
§
More customary
land court sittings.
§
An additional
Court of Appeal sitting or two Courts of Appeal sittings with longer time per
sitting.
§
Setting up of
systems in the Judiciary to ensure accountability in funds allocated to the
Judiciary. This will see the recruitment
of a Chief Accountant and Accountant position and administrative support
staff. This is intended as a stage by
stage development towards achieving this government’s policy objective of the
constitutional intentions in regards to the autonomy of the judiciary is
carried out.
§
More Magistrates
court tours and circuits throughout the country. The government has allocated separately funds
to facilitate more magistrates’ court tours.
This should enable the magistrates’ courts to carry out frequent tours
and sittings and quickly dispose off pending criminal and civil cases
throughout the country. The Magistrate’s
Court will be posted on a rotational basis - a Principal Magistrate at Auki,
Malaita, Province this year. The
Judiciary intends to recruit additional Principal Magistrates this year if
funds permit.
§
There will be
more training in-country of Judicial Officers and their support staff to ensure
judicial services are carried out more effectively and efficiently and addresse
issues of delay in court processes and proceedings and training of local justices.
Mr Speaker, in the
development budget, funding will be made available through the Solomon Islands Government
to fund the construction of the Principal Magistrate’s residences in Auki and
Gizo, and the full refurbishment of the Chief Justice’s Official residence in
The
infrastructure development funded under RAMSI Law and Justice Program will see
the construction of a new
Mr
Speaker, our plan is to also construct new Magistrates Court Offices in
Kirakira and Lata in the near future. We
will continue to seek and request funding from donors and the government to
assist us in this plan. We intend to
carry out a survey in the later part of this year on existing court buildings
throughout the country and assess their conditions. We know there are court buildings throughout
the country. Once this survey is carried
out, we intend to seek funding assistance to renovate these court buildings in
stages. Once renovated, they should
enhance
Mr
Speaker, the National Judiciary and my Ministry are receiving donor assistance
through the RAMSI Law and Justice program.
Donor assistance comes from NZAID through RAMSI which funds two Puisne
Judges of the High Court and other associated costs connected with their engagement.
The
bulk of donor assistance to my Ministry and the National Judiciary comes from
AusAID through RAMSI through its strengthened Assistance – Criminal Justice
program.
For
2007, as shown on page 29 of the 2007development estimates booklet, about $12,427,800
will be spent on operating costs which covers things like procurement of
stationery, security to buildings, rentals, vehicle costs, IT Support and Training,
lease of boat for witness transport and court circuits, salary of Solomon
Islanders engaged under the Law and Justice program and support to Police
Prosecution.
About $22,596,000 under the
heading ‘equipment’ will be spent on infrastructure like the refurbishment of
the Kalala House. Extensive work at the
High Court like the current Court Room 6, a holding cell, a Sheriff’s Office
and a new Court Registry; a New Auki Court House precinct, a new Gizo Court
House precinct and large capital purchases like vehicles and computers. About $64,963,500 under the heading TA/non
cash will be spent on cost of expatriate advisors, lawyers, Magistrates and
Judges and all associated costs in supporting them and the governance
arrangements of managing contract for the RAMSI Law and Justice Program.
Mr Speaker, with those brief remarks I support the Bill
and beg to take my seat.
Hon GHIRO: I rise to join my colleagues in contributing
to this very important Bill. My Ministry
is mandated to promote and provide reliable services to a wide range of civil
responsibilities. This includes the
National Disaster Management Office, the National Council of Women, the
National Sports Council, the Honiara City Council, Ecumenical Affairs,
Electoral Commission or Civil Registration, Youth Development, Child Protection
and Sports Development, Citizenship matters, Gaming Lotteries, film censorship,
liqour and marriage celebrants licensing, protocol and ceremonies.
The Ministry is also mandated to promote the interest of
specific sections of the population, including women, children, young people
including the coordination of sport development in
Thirdly, the Ministry is also responsible for the
establishment and management of a development partnership relationship between
the government and non government organizations, the Civil Society Organization
such as Churches and other faith organizations.
We also provide limited assistance in capacity building
to equip them to carry out their roles as traditional leaders within our
communities.
As the Ministry responsible for Local Government, my
Ministry considers restoration of better working relationship with portfolio
NGOs and the Honiara City Council as vitally important for the efficient and
effective service delivery of these organizations. There is no substitution for good
consultation and coordination of these things, which in my view, are
relationship virtues that keep the machinery working and producing expected
results.
Our
expected key outputs are:-
§
Strengthen the
Disaster Management services;
§
Active and strengthen
women, youth and children participation;
§
Strengthen child right
development program;
§
Strengthen youth network,
and mechanism for promotion of youth development;
§
Effective electoral
and civil registration system;
§
Establish development
Partnership MOUs with NGOs;
§
Healthy population
with well developed sports programs for all gender and ages;
§
National
Identity,
§
National Unity where
people of different faiths live harmoniously together.
Against that background, just
like other sectoral ministries, my Ministry’s 2007 budget estimates initial
submission was meant to reflect our plans to achieve the outcomes listed above. Much has been said in the past about
building the capacity of the resource owner or the rural dwellers, thus
empowering them to be self reliance.
I
wish to congratulate the honorable Minister for Finance for ensuring this
budget adequately provides for that very purpose.
Mr
Speaker, as I previously stated in my speech during the last sitting of Parliament,
it is now time for us leaders, as decision makers to start trusting our people
to help us produce and deliver the services our people have long been expecting
from the government.
The
Central Government cannot and will not be able to recruit and sustain a huge
work force capable of effectively and efficiently producing and delivering the services
our people have long been expecting from the government.
However,
there is a huge potential out there that we as government could immediately use
to achieve what the government plans to provide. There is abundance of available manpower
resource and other resources, so let us use them for the benefit of our
people. We must begin now to build the
capacity to take on this responsibility to do so.
Community
participation and the so-called ‘bottom up approach’ is about trusting our
people in the community to do what they can do to do their best. The way they know best is the financial
backing of the government be it national or provincial. My Ministry’s tireless efforts to make this
known seemed to have not been received by every one, and this is reflected in
our budget estimates for 2007.
Nevertheless
Mr Speaker, while we would like to be given more financial resources as we have
asked for to ensure that our plans are successfully implemented, we are also
very much aware that we are still in the recovery stage of our economy even seven
years after the ethnic crisis. My
Ministry fully supports the initiative of the government in directing the focus
of the development budget to the productive sector. We must put more money into the productive
sector to guarantee us more input into the social service sector as desired by
every Solomon Islanders.
Until
the economy is recovered, the non productive sector will continue to see mismatch
between the need for more social services and our inability to deliver the services
our people have always longed for in the rural areas.
However,
Mr Speaker, this I believe is a temporary situation. When the barriers to economic growth are
overcome, I am fully confident that we shall be seeing new heights in the level
of service delivery to our people.
The
important issue in my view, Mr Speaker, is to start now to utilize the
potential of the private sector by developing new approaches to development by
which the private sector can draw financial resources from the government
through direct funding. By doing so, our
chances of full recovery within a very short time can be achieved within a very
short time.
Finally,
before I resume my seat, Mr Speaker, in order to fulfill the objective in making
the civil society to become an effective development partner, I take this
opportunity to call on all sectoral ministries to ensure that our 2008 budget
program should also include the cost of programs that are specifically tailored
for community participation.
We
must begin to trust our community to take on the implementation role of government
funded programs, not only in the traditional sectors such as education and
health, but also in the productive sector such as fisheries, agriculture and tourism
and other non productive areas as well.
Peace
building and Disaster risk management or civil registration could be ideal
areas for community or NGO participation.
I say this because it does not make sense to me for us to just highlight
the importance of establishing development partners with the civil society and
NGOs and then turn the blind to their enquiries on what the government could do
to them or even what they can do to help us achieve objectives rather than just
telling them that we do not have the financial resources.
Mr
Speaker, before I resume my seat I will touch on the Treasury Division. I wish to turn on to the issue of the Treasury
Division’s inefficiency in delivering payments on time. Unnecessary payment delays have always been because
…… to everyone. Delays will permit price
of goods go up thus reducing the chance of project implementation as project
costs will go up against limited secure financial resources. I say this because too often the Treasury
Staff are unnecessarily delaying payments for no good reasons at all.
The
ministries are fully aware of the budgetary provisions they have and the time
they need to act to be able to contain project costs such unnecessary delay
would deny them of their expected results.
Mr
Speaker, with these few remarks, I support the Bill.
Hon Darcy: I am sure other Members would like additional
time to prepare the debate on this bill, and so I suggest that we defer the
debate till tomorrow.
Hon Prime Minister: I beg to move
that this House do now adjourn.
The House adjourned at