CI Times Weekly | Current Issue 256 | 23 June 2008
Consultant to advise on growing the offshore finance industry
A Cook Islands lawyer with considerable experience in the offshore industry who is now living overseas has been contracted to advise on ways to grow the offshore finances industry.
“We are heavily dependent on tourism and we need to bolster other sectors of the economy to diversify our economy,” says Deputy Prime Minister and Minister of Finance Sir Terepai Maoate.
“Government has given extra assistance to the Pearl Authority this year and has agreed to fund the employment of Steve Breed to conduct a comprehensive review of the offshore industry and make recommendations on how best to expand it,” added Sir Terepai.
President of the Trust Companies Association Puai Wichman says while the revenues are helpful to the Crown’s coffers there is real potential for the industry to make a much greater contribution to Government revenues and the nation’s economy. In some small island jurisdictions such as the British Virgin Islands, offshore revenues make up a significant portion of GDP and Government revenues.
In the Pacific, Samoa is leading the way in expanding its industry. Wichman says, “An important ingredient in the successful development of the jurisdiction is cooperation between Government, the industry and the regulatory bodies.”
“We are pleased that the industry is on the right track with the consultancy by Mr Breed and the positive working relationship that’s been established by the Minister of Finance Sir Terepai between Government and the industry.”
The offshore industry predominately employs qualified Cook Islanders and an expansion of the industry is likely to see an increase in the number of professional Cook Islanders remaining here or returning from overseas.
The industry has little environmental impact and assists the country earn overseas exchange.
Sir Terepai and Mr Wichman said they look forward to Mr Breed’s report.
Although the offshore industry operates in a very competitive international market they are confident the Cook Islands offers a number of unique features that could give it a leading edge in the drive for obtaining for the nation a greater market share of the industry. - DPM Office
