BTIB taking a closer look at foreign enterprise in the Cook Islands

The year 2010 marks a new beginning for the BITB when it comes to ensuring the foreign enterprises operating within the Cook Islands are complying with the legislation and policies of the country.
CEO, Terry Rangi says the legislation has been in place since 1995-1996 with an Investment Code which spells out the general investment policy; priority areas for investment; foreign investment policy; and reserved investment areas. Exceptions to the rule are also spelt out: such as when a business has advertised as being on the market but cannot attract a local buyer. After a minimum period of 3 months, the board members will consider an application for a variance.
Rangi said he had been reading the UNESCO funded Koutu Nui Community Visioning articles and said they were “very timely” as they draw attention to the concerns of local people re small businesses which ought to be reserved for locals. He said there are in fact, 6 reserved industries in the Investment Code which include cafes, rental car businesses and such.
It is the foreign investment and reserved investment areas which attract the most negative comments from the local people. The biggest misconception is that there is a requirement for a local partner but that is not in the legislation.
However, BTIB is tending to be in favour of the idea of legislation requiring a local component. After all, other countries such as Samoa are very strict whereas Cook Islands has a more open policy where past boards have been more reluctant to be hard and fast.
Nevertheless, in light of various complaints to the BTIB and the comments reported from the Iti Tangata in the Koutu Nui 2009 community visioning project, they will certainly include those comments into the major review BTIB is carrying out right now.
BTIB has engaged the services of Space Raumea, who is an experienced law enforcement officer of long service as the new compliance officer. Raumea has been on assignment for the past few months to investigate a ‘backlog of cases’ of foreign owned enterprises which continue to operate after their licence to operate in the Cook Islands has already been revoked. Some cases are complex and will require more time, others are minor and require a timely letter from the Board and others are almost ready to proceed to court.
In fact, BTIB will be testing the waters with the proposed prosecution of an enterprise that appears to have been flouting the rules for many years. No further details can be given of the upcoming prosecution but BTIB hope to have their day in court within a month or two.
Rangi said they welcome the input of the public and have an open door policy toward the media and the community and are prepared to discuss any concerns that the community would like to raise regarding foreign enterprises and how to operate legitimately within the Cook Islands.

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