News in Brief

Ministerial pays cease for former Cabinet Ministers
When three former Cabinet Ministers resigned in protest over the sacking of former DPM, Sir Terepai Maoate, the public would have thought that their pays would then have reverted to that of an ordinary Member of Parliament.
This is not so, because the Civil List legislation makes provision whereby all Ministers are given three months grace during which they are still entitled to their Ministerial level of pay at $85,000 pa, or in the case of the DPM it was for $95,000 pa.
The entitlements are from the time of their losing office, regardless of whether it is of their own accord by resignation or by demotion or having been voted out of office.
The former Ministers involved are Hon Sir Terepai (Ngatangiia MP), Hon Ngamau Munokoa (Nikao MP), Kete Ioane (Vaipae-Tautu MP) and Hon Tangata Vavia (Mitiaro MP). After checking with the Clerk of Parliament, it was confirmed that the three month grace period expired as of Sunday 21 March 2010 and from then onwards, their salary reverts to that of a backbencher of $50,000 pa.
Also contrary to some opinions, there are no extra allowances for being an Associate Minister or any of the special positions such as Leader of the House or Deputy Speaker of the House. This is said to be part of the $50,000 salary package that was negotiated when all MPs had a pay rise a couple of years back, whereby all Members of Parliament are required to assist in the Administration of the country by taking part in Select Committees or taking on special positions at no extra pay.
Incidentally, the salary rate for the Prime Minister is $105,000 pa and that for the positon of the Opposition Leader is $95,000 pa.
Now that Matavera MP, Hon Cassey Eggelton has joined Cabinet as of Tuesday 23 March 2010, her salary will now be $85,000 pa.
Warnings of downturn becoming a reality
A highly placed source said the warnings have been there for months that the global financial meltdown in late 2008 and early 2009 would affect our tourism markets by reducing their discretionary spending.
The global state of the economy was common knowledge with media reports locally, regionally and internationally obsessed with the global financial crisis and many summits to discuss the effects. The Cook Islands are not immune from what happens in the world, and cautionary warnings were made by economists that any downturn in the tourism industry would then affect our own economy especially since tourism brings in well over half the GDP (gross domestic product) for the Cook Islands.
Thus any drop in numbers would affect our local economy across the board for businesses, from airlines, travel agents, accommodation owners and operators, bars, restaurants, hire vehicles, tour operators and so on.
Luckily the Cook Islands was shielded from the worst of the effects by the increase of visitor numbers which in 2009 reached beyond the 100,000 figure in 2009, this year’s figures are not as rosy. This was probably helped by the fact that Australia, our second biggest tourist market has weathered the economic storm better than most other economies and that New Zealanders, our biggest market, are so fond of Rarotonga as a tourist destination.
Many other markets are also fond of Cook Islands including the Canadians who tend to come for weeks or months on end and also the European market such as the German market but there are many others.
However, coming back to the current situation, where politicians are calling for explanations as to alleged shortfalls in the budget, perhaps it is time to open the books for public inspection.

Herald Issue 463 10 June
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