tr>
News
Herald
Times
Columns
Chooks Corner
Brighter Side
Accomodation
Mount View
Webcentral
Other Links
CITV
CI Radio
CI Times Weekly | Current Issue 439|23 March 2012

Government at the crossroads, which way now?
Recently, positions were advertised for five people, headed by a Project manager, to begin the long hard look at implementing the recommendations of the ADB team which carried out the functional review of the public service.
Oddly, government has issued no media releases articulating the findings of the review nor stating government’s position. Government appears to have no communications strategy to keep the general public informed on a regular basis of progress with actions following the review.
While the ADB consultant’s report mentions it is a government priority is to ensure there are no redundancies as was the case in 1996, government must acknowledge it has reached a “crossroads” of sorts where it must decide whether to compromise economic development for the sake of maintaining staff numbers or reduce staff numbers in order to stimulate economic growth.
At present, some 1,700 public servants soak up about $44 million or just over half of the government’s tax take (that’s about $24,000 per public servant). This does not leave sufficient funds to stimulate economic growth so it reaches a level where growth can then be self sustaining. Government must rely on overseas grants and loans.
If government decides to try and maintain current public servant numbers then it is going to run into trouble unless it can generate more tax revenue from existing sources or from what MFEM calls “new revenue streams.”
Increasing visitor numbers helps but anecdotal evidence from local retailers and market vendors appears to suggest that while visitor numbers are increasing, visitors appear to be spending less. The time has come for the 100,000 plus visitors to Rarotonga, to be exposed to “new products.” This is where the outer islands and their unique attractions come in. With government now having drafted a strategy for tourism development in the outer islands, the key issue now is having the means to transport a significant number of visitors to the outer islands at an attractive cost. Now the concept of a fast ferry begins to look inviting.
New revenue streams can be opened up in the export sector. Due to limited availability of suitable land, no one product will be able to produce any significant revenue however a series of products collectively could contribute much.
For instance, if canned tuna, farmed fish, niche vegetables, fruit (Paw paw), vanilla, moringa, brought in say $3 million each, that’s a conservative total of $18 million. This is the sort of economic development government must encourage. High value products which are in demand overseas.
Reducing the amount spent on public service pay packets will free up more money for investment in developing new, revenue generating products. Local “start up entrepreneurs” could be allocated seeding capital at low rates of interest. Alternatively, government could take the simpler decision to just the ask our “aid weary” donor partners to put their hands in their pockets and contribute more. However, that would mean continuing our dependency (or is it addiction?) on aid at a time when we have the means to tackle the matter ourselves. There are some bright, able, locals who possess the intelligence and the knowhow to create new revenue streams but sadly, it is government which appears to lack the “will.” -Charles Pitt

Headlines : Times 290 02 March 2009
- Lucky $1,000 winner
- Century old palm trees and the French connection
- Koutu Nui takes part in Raui meeting in Moorea
- WOM Award Dinner for Ake Hosea-Winterflood
- Island of Atiu to host Koutu Nui AGM in June 2009

 
Copyright 2006 Cook Islands Herald online . All rights reserved.