Alternative proposal to Airport tax

The upgrading of our small nation’s only internationally in good use airport facilities on mainland Rarotonga is inarguably a very positive investment in the part of our government leaders today and other authorities who equally have contributed significantly from day one to this very time that she will eventually commence its evolutionary phases.
Increasing our Airport Departure Tax or locally known as the “Pakau Aroa” from the current rates of;
1. Under two years exempted
2. Two years to twelve $15.00 per child
3. Over twelve years $30.00 per person
to the proposed new rate of $55 per person over 12 years of age while those under 12 years will continue with the same rate of $15 with effect from the 1st of April 2009. As a Tangata enua (common Cook Islander) I feel very much for three types of travelers. The first traveller is you and I the Common Cook Islander. While we are enjoying the current affordable return airfares provided by the two international airlines (Air New Zealand and Pacific Virgin Blue) our current brilliant heads in authority had this vision of increasing the rate for the “Pakau Aroa” in order to compensate for the shortfalls in the estimated costs for the first overall face lift to our national pride into the airways. We Cook Islanders enjoy traveling in family numbers except for the very few who obviously travel in one some or two some for private business and or government trips.
The second traveller I refer to “non Cook Islanders” who have resided in our beautiful paradise for a number of years and have made our small country their paradise as well. Like us (the common Cook Islanders), no doubt that they too will not be too happy about this vision by our authority.
The third traveller is our offshore “tourist” friend whom we have been relying on quite heavily for a huge turnover for a number of years now to help our nation in terms of income generated from it. I can see a decline in the inflow of tourists to our shores in the long run once this new departure tax takes effect from the 1st of April 2009, there is no doubt about that. If one sits back and look around at the way and rate our small nation’s cost of living is going (with constant increase in prices of various basic family necessities and so forth both on the mainland (Rarotonga) and our sister islands, this proposed new airport tax rate, this new departure tax is an additional load to our current burden.
Somehow on the positive side, government should be commended when our children are exempted from paying departure tax comes the 1st of September 2009. This I personally feel is a very brilliant vision. In addition may be our specified authorities could have taken another option, instead of increasing the departure tax. I am rather puzzled in pondering and asking the question of “how much exactly our authorities are putting aside for the purpose of our international airport facelift project if I may call it”. I am sure if the actual breakdown has correctly been published in our local media with sound explanation to the general public, then I do not think I and many others will ask more questions but rather will be satisfied I suppose.
Also for how long it is anticipated this new proposed increase in departure tax will last, is another of those questions/queries to be answered quite fairly to the entire nation.
After all this entire international airport belongs to the people of the Cook Islands, not forgetting the generosity of the landowners and the late Papa Arapati Royle Henry in instigating this way out to the outside world. This airport is a national pride for us ALL, from the common Cook Islanders to those of our nationalized Cook Islanders and those in authority.
This is my suggestion;
1. Exempt ALL children twelve years and under from paying Departure Tax (Pakau Aroa) with effect from the 1st of July 2009,
2. Everyone over the age of twelve to CONTINUE paying the current rate of $30.00. These include;
• ALL visitors or tourists on vacation for more than 24 hours
In addition to the current airport departure tax;
May be introducing a “surcharge tax” for the purpose of the international airport upgrading project only. This tax type deduction will be independent from the normal income tax. Whatever amount is considered favorable by keeping it to a minimal base rate, it MUST be specified very clearly for the purpose of our international airport project.
It will be taken off and from EVERY Cook Islands residents being employed anywhere in the Cook Islands and paid either on a weekly or fortnightly pay schedules.
The proposed airport tax rate per week is as follows;
1. Those earning up to $10,000 per annum will contribute at the rate of $2.00 per week from their weekly gross earning,
2. Those earning from $10,001 per annum to $20,000 per annum will contribute at the rate of $2.00 per week from their weekly gross earning,
3. Those earning from $20,001 to $30,000 will contribute at the rate of $4.00 per week from their weekly earning and
4. Those earning from $30,001 and more will contribute at the rate of $5.00 per week from their weekly earning
5. Government with the assistance of the Crown Law’s office, other Government agencies, Private Sector and Chamber of Commerce may evaluate over this proposal to reach a conscientious decision.
6. Once again this is our international airport and we should not dishearten the intention of our tourist friends to visit our small country with the hike in the Pakau Aroa on them right at the beginning of their dream travel to our paradise, considered to be the last haven on earth.
7. The proposal may commence from the either the 1st of July 2009 and in the first instance to be for a period of six months, ending on the 31st of December 2009 and if it is not sufficient to meet the costs of the airport project ONLY, it may continue for another six months or so.
8. I believe there are over 1,680 employees working in Government agencies, Government Owned Enterprises, Ministers Offices as well as that of the Leader of the Opposition and with the inclusion of ALL our Parliamentarians this proposal will be strong somehow bringing the figures to around 1,724. (please refer to table)
Please note the above analysis does not include those employed in the private sector. The assumption is that with inclusion of the private sector contribution we will probably reach half a million for the first six months, I do not have any data for those employed in the private sector.
Whatever the target government is considering then this may continue provided our people are clearly notified of the first six months contribution.
It’s just my personal thoughts and opinion.

Herald Issue 446 11 February
- ‘I wanted to finish 3 years ago’ - Sam Pera Jnr?
- Government hangs Ruaau out to dry
- Flies reach epidemic level in Arorangi
- Economic Summits – Talking the Talk or Walking the Talk
- Parliament: Deregistration, Fuel farm and OIA amendment

Herald Issue 445 04 February
- Ball now in Fiji’s court
- Calls for Alternate Dispute Resolution
- Calls for Alternate Dispute Resolution
- $1.8m water project on track
- Undervaluing our own Consultants!