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>                           Weekly Niue News
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>      April 16, 2004
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>      Niue's disaster recovery plan faces the donor test at the
>      end of this month. The tiny island's leader Young Vivian
>      has told Radio New Zealand International News that
>      obtaining financial backing for a massive $NZ37 million
>      facelift, following the hurricane force winds that badly
>      damage parts of the raised atoll in January, will be the
>      biggest hurdle the government has to face. He was confident
>      the plan has been well prepared. The French Polynesia
>      government has provided massive financial backing and
>      skilled labour for constructing kitset houses for the
>      homeless and clearing the Alofi South and western village
>      debris. The European Union has offered to finance an
>      urgently needed new hospital, the South Pacific Community
>      is backing subsistence agriculture schemes and China and
>      Australia along with the Cook Islands and New Zealand
>      communities have provided emergency funding. It is now
>      uncertain if New Zealand will contribute more than the $5
>      million it has already donated. Niue's recovery plan is a
>      complex all-embracing project which covers the restoration
>      of infrastructure, new and repaired public and private
>      housing, and support to keep private businesses afloat. New
>      Zealand will continue to provide $8 million recurrent
>      budgetary support in July. The cyclone recovery plan
>      incorporates many previous national objectives and the
>      government is likely to face some tough questioning from
>      potential donors who are reported to be interested mainly
>      in contributing to fixing the damage caused by the
>      mountainous seas and 300km winds. Niue has a population of
>      1300.
> 
>      Budget Balancing: The island's Treasury department is busy
>      preparing estimates for this year's budget to be tabled in
>      the Legislative Assembly after June 30. But with government
>      officials dedicated to organising the cyclone clean-up
>      there could be delays with the budget presentation. Despite
>      emergency aid provided after Cyclone Heta the island's
>      recovery plan, when completed, will require substantial
>      on-going funding to maintain the tiny community's
>      infrastructure. Supporting the Niue Government's commitment
>      to improving the country's economic self-reliance has
>      resulted in boosting backing for tourism, air services,
>      fisheries development and vanilla farming. Four years ago
>      New Zealand budgetary assistance was capped at $NZ3.75
>      million with a $2.6 million special project fund. But last
>      fiscal year Wellington increased its input to meet almost
>      half of the national budget of $18million. The funding is
>      provided in accordance with constitutional obligations made
>      in a 1974 act of Parliament when Niue became self governing
>      in free association with New Zealand. Emphasis is also
>      placed on education, small scale community projects and
>      organic farming. Talks in Wellington with potential aid
>      donors and the new cyclone recovery plan consultant later
>      this month are likely to clear the way for more accurate
>      assessments of Niue's national budgetary support for the
>      2004/2005 year. [ Latest statistics reveal Niue's annual
>      population growth was 0.01%, its GDP per capita was
>      $USD3600 while it recorded a minus 0.3% GDP growth.]
> 
>      Support For Tahiti: Niue is likely to be one of the first
>      countries in the Pacific to back a French Polynesia request
>      for observer status in the Pacific Forum.. Regional
>      commentators say strong links with French Polynesia have
>      been strengthened by the territory's disaster action group
>      that cleaned up the island after Cyclone Heta and built new
>      kit-set houses for those left homeless. News of French
>      Polynesia plans for observer status in the Pacific Islands
>      Forum, came after the territory's vice president said they
>      were also working towards setting up its own embassies
>      abroad. Edouard Fritch said they are also hoping to get
>      observer status within the Pacific Islands Forum, now that
>      the territory has more autonomy from France. Mr Fritch said
>      last week's recommendation to Forum leaders to open up to
>      French and American Pacific territories was an important
>      step forward. The report, submitted by an eminent persons
>      group at a special Forum meeting in Auckland last week,
>      said this would enhance regional inclusiveness and
>      cooperation. Mr Fritch says that's good news for French
>      Polynesia, whose president, Gaston Flosse, is working
>      towards greater political autonomy overseas.
> 
>      Fish Quandary: A decision to pull out of a commercial
>      fishing project in the Cook Islands by the New Zealand
>      fishing company SeaLord has raised questions of the
>      viability of the fisheries project in Niue. Reef Shipping
>      Company and the Government of Niue partners in a $1.5m
>      venture building a fish processing factory at Alofi. They
>      hope market the fish in New Zealand. SeaLord said it has
>      abandoned the Cook Islands because the fisheries were
>      seasonal. SeaLord sold its shares in Cook Islands Fish
>      Exports only nine months after saying it would lead the
>      development of the country's fishing industry. Another
>      major player in the New Zealand fishing industry, Hawkes
>      Bay Fisheries, has also sold its interest in the company,
>      which was set up last year in conjunction with local
>      businessman Brett Porter. A spokesperson for SeaLord,
>      Merrill Coke, said the company needed a reliable supply for
>      export. "Our part of the business was sales and marketing
>      and we were looking for consistent year round supply for
>      export. The fisheries proved to be seasonal and won't meet
>      our objective so we've decided to exit the shareholding. We
>      wish Brett well and we'll continue to assist in his
>      marketing." Brett Porter has purchased the overseas
>      companies shares and says that the company will stay afloat
>      despite their withdrawal.
> 
>      Small Is Better: While Niue is considered a potential haven
>      for terrorists it is tiny enough to prevent organized
>      criminals moving onto the island. A Pacific leader and New
>      Zealand's Foreign Affairs Minister have both said lax
>      security and immigration systems make smaller states the
>      "soft belly" of the war on terrorism. New Zealand keeps a
>      close eye on Niue's foreign affairs through constitutional
>      links. Very small is different. "Everyone knows everyone
>      else on the tiny island and unless government immigration
>      and police officials slip up once a week when the plane
>      lands the chances of Niue being infiltrated are fairly
>      remote," said a Pacific commentator. Niue also gets
>      substantial financial assistance from New Zealand so its
>      need to bolster local revenue from dealing with organized
>      criminals is minimal. But Niue has had several close calls
>      several years ago. It took immediate action to cancel its
>      offshore banking licences when the bona fides of the
>      licence holders were questioned and its legislators refused
>      to pass a law permitting a Canadian-German con man from
>      setting up a Cyber City in the centre of the 265 sq km
>      island. A Korean based church group was also denied entry
>      to construct a Holy City after they sought land and operate
>      within their own jurisdiction. Cook Islands Prime Minister
>      Robert Woonton and New Zealand Foreign Minister Phil Goff
>      have told The Australian newspaper that small Pacific
>      nations were the "soft belly" of the war on terrorism
>      because of a lack of computerised passport records and
>      archaic security systems. "It may be happening already and
>      unless we address security it will become a real problem."
>      Mr Goff said money launderers and organized criminals had
>      already eyed vulnerable Pacific islands for their
>      activities, and while they did not believe terrorists were
>      operating now, the potential could not be ruled out. "The
>      same situation appeals to both groups... they're both
>      looking for more opportunities," Mr Goff's spokesman said
>      today. Terrorism, along with organized crime, was becoming
>      increasingly global and perpetrators were seeking
>      opportunities further afield. Australia and New Zealand are
>      working alongside the Pacific region to tighten security
>      and border control systems, Mr Goff said. New Zealand is
>      organizing a counter-terrorism seminar for Pacific Island
>      officials next month, focusing on tough new requirements
>      for passenger travel and trade instigated by the United
>      States. Last year's budget allocated $2 million for a new
>      Pacific security fund to boost aviation security, customs,
>      immigration and forensic equipment to identify fraudulent
>      travel documents and visas. New Zealand was also working
>      with Pacific police forces to help them combat drug
>      trafficking and people smuggling.
> 
>      Cooks Get Games: Niue athletes will participate in the 2009
>      South Pacific Mini Games in Rarotonga, Cook Islands. The
>      Cook Islands won the bid to host the 2009 mini games after
>      a vote at the South Pacific Council meeting in Palau.
>      "We're all excited and very happy," said Cook Islands
>      Sports & National Olympic Committee manager Robert Graham.
>      The delegation to Palau was led by CISNOC president Tiki
>      Matapo. The Cooks won the vote 28-15 over Wallis & Futuna
>      which was also bidding for the games. The go-ahead to host
>      the games makes up for the disappointment in 2000 when
>      council members voted for Palau to hold the 2005 Mini Games
>      over the Cook Islands. The Cook Islands hosted the Mini
>      South Pacific Games in 1985, which led to the establishment
>      of the National Stadium at Tereora.
> 
>      Neighborly Competition: The Niue agents for the government
>      International Companies Registry, Mossack Fonseca of Panama
>      has announced it has opened a business in Samoa. The
>      independent state joins Niue, the Bahamas, the British
>      Virgin Islands, Panama and Seychelles offering tax free
>      haven international business company registrations. Mossack
>      Fonseca said the advantages of registering a business in
>      Samoa include full exemption from taxation on any business
>      activity or transaction conducted outside the country,
>      speedy incorporation, simple administration, no requirement
>      to file annual returns or financial statements; no
>      requirement to hold annual general meetings of shareholders
>      or directors. Mossack Fonseca said the annual licence fee
>      for companies redomiciliated is only US$100.00 for any
>      capital. The Samoa IC law dates back to 1987 and it has
>      experienced a steady and healthy growth.
> 
>      Relief Fund Shared: The Governments of the Federated States
>      of Micronesia and Fiji will each receive FJ$20,000 this
>      week from the Regional Natural Disaster Relief Fund, to
>      assist with relief efforts following recent damage from
>      Typhoon Sudel and the flash floods in Fiji. The Fund is
>      administered by the Suva-based Pacific Islands Forum
>      Secretariat. On behalf of the Pacific Islands Forum,
>      Secretary General Greg Urwin expressed deep concern for
>      those suffering as a result of the cyclone and the floods.
>      "Our thoughts are very much with those who have been the
>      victims of these disasters, and especially those who have
>      lost loved ones," Mr Urwin said. Mr Urwin also offered to
>      provide technical assistance from the Secretariat. Similar
>      relief assistance was extended in January to Niue and Samoa
>      following Cyclone Heta, and to Vanuatu in February
>      following Cyclone Ivy. The Regional Natural Disaster Relief
>      Fund was established in 1975 by Forum Island Countries.
>      These are the Cook Islands, Federated States of Micronesia,
>      Fiji, Kiribati, Nauru, Niue, Palau, Papua New Guinea,
>      Republic of the Marshall Islands, Samoa, Solomon Islands,
>      Tonga, Tuvalu and Vanuatu.
> 
>      Pre School Projects Safe: Auckland resident Niuean leaders
>      in education say their pre-school projects operating in
>      West and South Auckland have not been involved in a
>      controversial fees claim for non-existent children. Early
>      education is language nests for Niuean children with
>      emphasis on island culture. They are heavily funded by the
>      New Zealand government. Last week the Government rejected
>      calls to scrap a Maori and Pacific pre-school enrolment
>      scheme and claims to have shut loopholes through which it
>      paid bounties of up to $2275 a child. It also promised not
>      to give new contracts to organizations which brought the
>      scheme into disrepute. Education Ministry files have
>      disclosed audits found irregular fee claims and among those
>      investigated were three inter-linked Manurewa organizations
>      which milked more than $1.5 million of the scheme's
>      national outlay of $7 million. The government said
>      contractors worked diligently to enrol 5280 Maori and
>      Pacific Island youngsters who would otherwise not have
>      received early education. The ministry was unable to tell
>      how many youngsters stayed at pre-schools, or for how long,
>      but said it had tightened a prototype contract to require
>      minimum attendance of three months.
> 
>                   Niue Pictures after Cyclone Heta
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