Neu: 2001-09-24
Contents of this issue:
1. Insolvent Island
2. Judge Sits
3. Horror Fall
4. Straight To The Point
5. Hospital Update
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September 24th, 2001
1. Insolvent Island:
Nauru is about to try and slide off the end of its financial lifeline,
according to a brigade of angry reformers.
After 30 years of wild spending, waste, terrible management and being
diddled by shoals of foreign sharks, the country is on the verge of
losing the last of its solid assets, predict the authors of The
Visionary. This is a publication brought out by a group of young worried
businesspeople and civil servants.
They have formed Naoero Amo, a political party, Nauru's first. It
intends to fight a general election next year with the aim of salvaging
what remains of the 21-square-kilometre country's near exhausted
phosphate wealth. Nauru's finances are a mystery even to the government,
which probably doesn't really understand what is owed and what has been
lost, according to a senior politician.
According to the Asian Development Bank, in 2000 there was a budget
deficit of over A$10 million, or around 18 percent of the Gross Domestic
Product (GDP).
The level of external government debt is estimated at A$280 million.
External debt service totalled A$13.3 million in 2000, or around 13
percent of exports of goods and services. However, the government has
big loans outstanding with government-owned corporations These also
have significant levels of external debt, so the real foreign debt is
far higher.
Where has all Nauru's money gone? Years of losses by Air Nauru certainly
total a nine-digit figure. A report some years ago mentioned a A$50
million loss.
There was a bad investment in a big phosphate plant in India, shipping
company and fishing boat flops, millions lost with a flopped London
musical show Nauru was inveigled to invest in and $60 million swindled
from the coffers by a conman working with a gambling-addicted
Australian lawyer.
According to The Visionary investment losses may be as great as A$2100
million. - (PINA Nius Online).
2. Judge Sits:
New Zealand Judge Heta Hingston visits Niue this week to hear civil,
criminal and land appeal cases.
Two men will appear before the Judge on separate charges of murder -
one relating to the death of a woman in Alofi last October, the
other involving the fatal shooting of a prisoner at the Fonuakula
jail last month.
Next month New Zealand Judge David Ongley will visit Niue to preside
over a Commission of Inquiry into internet services on the island.
3. Horror Fall:
Air New Zealand shares plunged into the "penny dreadful" class today as
worries about the future of the airline mounted.
Air NZ's unrestricted B shares dropped 10 cents to 16 cents in the first
hour of trading today while the New Zealand resident-only A shares fell
12 cents to 17 cents.
That values the airline at just $125 million.
Speculation mounts that Air New Zealand will be placed in statutory
management in the next few days.
The company's acting chairman Jim Farmer put out a statement at midnight
desperately seeking to reassure stakeholders of the stricken company.
After a crisis board meeting at the weekend was adjourned, he said good
progress had been made on recapitalisation and bringing forward the $850
million rescue package.
Air NZ just two years ago was capitalised at $2.5 billion.(NZPA).
4. Straight To The Point:
Keep up with news from Niue - the Pacific's top independent news site.
Daily articles on the social, economic and political state of the
world's smallest self governing nation used extensively by reputable
news agencies around the world.
Coming up - we'll have details of Niue's 100 year anniversary of
political association with New Zealand and full coverage of the lead up
to next year's March general election. Will party politics sink into
oblivion? Who will lead the next government? All this and more to keep
you informed.
5. Hospital Update:
Work begins this week on construction of a new operating theatre and
recovery room at Niue's Liverpool Hospital at Tufukia.
It is part of stage one of a $NZ 2.4m nine month rebuilding project
supported by NZODA, AusAid, and WHO. The work is being carried out by
Arrow International, Wellington, New Zealand.
To date four wards have been upgraded to include en suite showers and
toilets and the nurses station has been relocated. Administration
offices have been re located and completed with additional work now
underway on X ray facilities and outpatients consulting rooms.
A geriatric ward has been moved to the south end of the hospital
property. Phase two of the project includes re-roofing the main block
and providing a new home for the health department's dental clinic.
Local labour is being used on the project along with New Zealand
tradespersons supervising carpentry, plumbing, electrical and air
conditioning work.
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