Political reform, public service reform and lower interest rates to boost the economy

There have been calls for lower interest rates from the banks as a way to boost the economy in the report by Associate Minister, Junior Maoate to the Forum Economic Ministers Meeting 2009.
Current interest rates for building homes are between 9-11% not to mention commercial loan rates or those on credit cards High interest rates (and low wages) in the Cook Islands have led to loss of homes or added to the massive outward migration of our people to New Zealand and Australia.
The entry of Kiwi Bank into the Cook Islands is mooted but gave no indication whether the said bank has actually been approached on this matter. The Task Force report would like to see a harmonization with New Zealand banking, whether they meant interests or bank practices was not spelt out.
However, it is noted that the Australian banks have a crediting rating of AAA and are in a much stronger financial position than most other banks in the world including those in USA and Europe which had be bailed out by their respective governments. Another call has been made for the Superannuation funds to be brought back into the country presumably to be used by the Australian banks that the Task Force report via the Associate Minister has just decried.
Political reform and public service reforms are the flavour of the day with the calls as advocated by the Task Force. They have the notion where the Prime Minister is to be nationally elected and have his own unelected Cabinet Ministers and for Parliamentarians in the outer islands are to double as Mayors.
There is no such system in the rest of the Western World and nothing is said about how this is actually going to give more say to the people of the Cook Islands when it comes to their own well being. .
He referred to Devolution of authority to the outer islands in the late 1990s and the earlier Reforms on mid 1980s following the virtual bankruptcy of the country when half the public servants were sacked which caused a huge outflow of people as families decided to go overseas to pay the mortgage and feed and educate their children. The private sector also suffered as their customer base disappeared along with the government contracts on which they depended. Few if any of those particular people have returned to live in the Cook Islands, apart from sentimental holidays at ‘home’.
Cost saving measures in energy have been raised including switching to renewable energy sources such as solar, wind and bio fuel, however, the call for small scale hydro schemes seems an unlikely suggestion in the face of permanent water shortages in areas such as Ruaau and intermittent shortages in Te Puka and Pokoinu as well.

Herald Issue 463 10 June
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