Neu: 2002-03-18

Contents of this issue:

1. Its Official

2. Booster Pack

3. Air Services Highlighted

4. Tall Order



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March 18th, 2002


1. Its Official:

The Legislative Assembly on Niue has been dissolved and the country is
now being administered by a care taker government consisting of Cabinet
members. The Justice Department has announced the official polling day
will be April 20 2002 and nominations for the 14 village constituency
seats and six common roll seats close on April 4. Major contestants in
this year's election will be the Niue Peoples Party headed by Premier
Sani Lakatani and an Alliance of Independents whose members consist
mainly from backers of the former Premier Frank Lui. Major issues
confronting the electorate are the airline services, development of the
stagnate tourist industry and economic development which will create
private sector jobs and reduce the high number of public
servants.Neither group has released its manifesto.


2. Booster Pack:

Air New Zealand's small shareholders could be asked for another $36
million as part of a $200 million capital raising announced by the
airline at the weekend, one industry analyst said yesterday. The
Government would have to foot the bill for the remaining $164 million in
a significant negative development for the Air New Zealand, the analyst
said. Air New Zealand's chief executive Ralph Norris told an Australian
television station that the state-owned carrier had enough money to
operate for the next several months, but would raise new capital via a
rights issue. Air New Zealand was bailed out with $885 million of
taxpayer money which bought an 82 per cent stake. The Government has
pledged another $150 million which can be drawn on, preferably through a
rights issue, before June 30, 2003. "We're probably looking in the order
of NZ$200 million," Mr Norris said. (NZPA).


3. Air Services Highlighted:

As political factions on Niue flex their muscles the age-old problem of
airline services is fast becoming a major issue in the forthcoming
general election. Opposition MP and former Cabinet Minister Terry Coe of
the Alliance of Independents wants the island government to pay an
airline - preferably Air New Zealand- a $1million down payment for a
dedicated Auckland to Niue return service.He says Air New Zealand has a
great marketing machine that would help put Niue in front of potential
visitors in New Zealand and around the world. He says Niue should budget
for an upfront payment and NZODA should contribute to a marketing
campaign. He said some serious effort has to be made to stimulate the
tourist industry which has an infrastrcture likely to topple in the near
future. MP Toke Talagi also sees a direct jet service out of New Zealand
a priority. He told Radio NZ International that air services were going
to be a major issue.Mr Talagi is the agent for Royal Tongan Airlines on
Niue which flies a Shorts 360 turbo prop 35 seater from Nuku'alofa to
Niue twice weekly.RTA withdrew its weekly Auckland-Niue-Tonga- Auckland
737-200 service in March 2001 after its international services sustained
huge losses. At present a NZ funded airline consultant is investigating
a direct service to Niue but some industry sources say its now too late
to have any positive effect on the forthcoming tourist season - May to
September. The national tourism office is also without a director. The
former office head did not renew her contract and an independent review
of the office performance is awaited before a new director is appointed.

Death Follows Report: Diplomat Bridget Nichols had just completed a
report on the breakdown of law and order in the Solomon Islands before
she was stabbed to death. The 50-year-old Deputy High Commissioner's
early days on the job also involved taking calls from the family of New
Zealand construction supervisor Kevin O'Brien, who was murdered in
Honiara five weeks ago. In her few weeks in the Solomons, Ms Nichols had
prepared the report for the New Zealand Government on the collapse of
law and order despite the end of a three-year civil war. It is
understood Ms Nichols' recommended sending some police, but in an
advisory capacity only. The Prime Minister's office is not commenting
until the report reaches the Cabinet table. But Foreign Affairs Minister
Phil Goff voiced frustration yesterday at the lack of will or ability of
the Solomon Islands police to battle criminals armed with high-powered
weapons. A military Boeing 727 carrying Ms Nichols' body arrived at
Whenuapai around 10.45pm yesterday. Last night, Solomon Islands police
were still questioning a security guard who was supposed to have been
protecting the Deputy High Commissioner's fenced flat at Panatina Ridge,
where she was stabbed in the chest on Sunday afternoon.(NZ Herald)


4. Tall Order:

Rarotonga growers have been asked to supply 16 tons of noni juice for
overseas export this month. Cook Islands Noni Marketing Ltd. (CINML) is
hoping the growers will be able to fulfill the massive order. The juice
is to be exported to Japan and Singapore, where there is a high demand
for the Cook Islands product. And CINML noni producer Teava Iro says
that this month's order is set to increase in the coming months. "In the
past few months there have been orders for 10 tons for export, but,
since then the orders have gone sky high," says Iro. He says the Cook
Islands could be asked to supply a minimum of 20 tons of noni a month,
reaching 50 tons within six months. Niue has a fledgling noni project
but is still at the experimental stage.(PIR)

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