ADB Loan Pie in the Sky “pre-election lollie”

How government really intends to spend the recently announced ADB Loan will certainly be very interesting. I’m not in the least bit convinced that government will channel these funds to where they should actually be going which if my understanding is correct, are to be used for 2 separate programmes involving increased spending on infrastructure and to strengthen fiscal management and social welfare policy as part of the ADB’s economic recovery support programme to the Pacific following the economic crisis.
Where is the urgency in these 2 programmes especially when we see increased numbers of small to medium businesses suffering and more and more of our people facing mortgagee sales leading inevitably to further outward migration. While these 2 programmes may be worthy benefactors of the ADB loan, the lack of clarity and detail from government gives rise for concern especially when it’s own track record for infrastructure development and social development initiatives has much to be desired.
As indicated by the Minister of Finance, yes, the loan is mentioned in the 2009/10 Budget but specifically only as Priority Infrastructure and Building Capital as quoted on page 63 of the Appropriation Bill that was tabled in the House. If that is the case, then when did this process change to include strengthening of our fiscal management and social welfare policy because this was never mentioned during any debate in the House that I can recall.
My question here is, does ADB really know what is going on here in the Cook Islands as far as government is concerned or have they been led down a merry pathway in order to secure yet again another loan. I’m somehow sceptical that potentially, the Minister responsible may possibly have misled the House and will need to explain himself to the members rather than through the media which he has chosen to do.
If ADB was really serious about their loan commitment, why not look at finishing its own waste facility projects in Aitutaki and Rarotonga. For example, they completed the waste facility in Aitutaki and we are grateful for that but we don’t have a truck that can dispose of our waste. Why not commit some of this funding for that purpose rather than pie in the sky funding which serves no real purpose.
Furthermore, I am also concerned that a part of the recovery programme will be used to reorient our welfare system to provide increased support to those on low incomes. How do they intend to do this in the absence of clear policy directions and particularly when it is considered our welfare system is only a part of the wider problem. The Budget policy is vague and lacks clear direction on this issue.
Frankly, with the downturn in the economy, I would have thought government would have considered providing a boost to the private sector to encourage continuity that will allow the private sector to survive during these difficult times.
With a general election around the corner, I can only perceive the ADB loan as an incentive by government to “provide lollies to the low income earners” to gain political support during campaign time under what it calls its “social development priorities.”
Unless government is transparent in its deliberations, this latest ADB loan can only be construed as a farce and no doubt will be subject to misuse at the earliest possible opportunity to advance it’s own agendas to remain in power. Let’s hope our people are more the wiser in realizing its not lollies that this country needs right now but strong leadership and focused policies that will benefit our people.

Herald Issue 463 10 June
- World famous activist assisting residents
- Budget will decide if residents prosecute Government over landfill
- Forestry project sucking Mangaia dry
- Budget 2010 – fiasco or disaster?