Brown on access to NZ, depopulation, the economy

Below are the written questions put to Finance Minister Hon Mark Brown by Pitt Media Group’s (PMG) Moana Vaevae-Tetauru following the Minister’s statement to Radio NZ International earlier this week regarding ‘reviewing the free-entry into New Zealand.’ Other questions have been included to enable a balanced story. Brown’s written responses are set out below

PMG: Please explain why the free entry into NZ issue should be reviewed?
Brown: I did not say the free entry should be reviewed. I said that maybe we should open a debate over the issue of free entry and that I would be interested in hearing the views of our citizens. This was mentioned in a context of the three “realm” countries of NZ (Niue, Tokelau, Cook Islands) having the highest levels of depopulation of all the Pacific Island countries. The question to pose is; Is the free entry into NZ and Australia (as part of our special relationship with NZ) one of the major causes of depopulation of our islands?
PMG: Was the issue explained in country before your presentation in Wellington?
Brown: This is not a government matter or even a government policy. Rather a question I posed during a speech I was invited to give in Wellington. It’s purpose was to broaden the thinking especially around the pension portability issue. It is easy for us to move to NZ and Australia and live but conversely it is difficult to come back and live with the entitlements of a NZ pension earned overseas. It appears to be a double standard being applied. I do hope that more debate on the broader issues is forthcoming.
PMG: What strategies does government have in place to tackle ‘depopulation’?
Brown: The strategies are centered around having key infrastructure in place such as affordable transportation (both seas and air). If we want a regular shipping service then we must be prepared to fund it. Just as we underwrite the costs of an international air service to Rarotonga – a similar concept in terms of shipping must be considered. This will help facilitate the start of economic activity in the outer islands. Already we have some entrepreneurial minds working on products that can service the main market of Rarotonga for fresh foods. We need to put in place other infrastructure such as refrigeration and freezer holding facilities so that goods can be kept fresh to meet shipping schedules. We need to develop strong partnership arrangements with our donor partners to maximize the effect of partner support in fisheries, agriculture and tourism sectors. We need to invest in telecommunications infrastructure so that we can deliver high quality health and education services to the outer islands.
PMG: What measures is government taking to reduce interest rates and the current cost of living, ie: wages, lack of employment especially for tradesman, and others eg: food
Brown: We have now secured the services of a top banking executive to come and review our banking and finance sector with a view to providing options on how we can provide people with lower interest rates for borrowing. This is a priority area for government and one that we have taken great lengths to make sure we get the right person on board to conduct the review. I should be able to announce the start of this review very shortly.
Unfortunately we do not control the price of oil in the world. The price of a barrel of oil determines the cost of freight for all goods and services. High cost of oil means higher cost of food and higher cost of electricity. These are things we have to live with just like every country in the world. A quick Google search will tell you that food prices globally have risen sharply. Even in NZ the food prices are higher than ever before. The answer is to start growing as much of our own food as we can. My parents and especially grandparents grew their own veges and root crops for home consumption. It was considered a sin to buy taro when you could grow it – nowadays in the world of instant messaging and instant gratification we expect to buy COOKED taro everyday. This is good for the grower who can make money on those who are happy to buy.
Two months ago I attended the graduation ceremony for the HRD graduates – nearly 100 people graduated with certificates, diplomas and degrees in a wide range of fields from trades carpentry, electrical, technicians, mechanics to specialist fields such as nursing and architecture. The diverse range of graduates included school leavers, mature parents, grandmothers, former prisoners, disabled people and full time works who all took time out of their lives to enrich and up skill themselves. They are not waiting for the government to raise the minimum wage – they are taking advantage of the education opportunities available to raise their own value and worth in the workforce by gaining qualifications. Last year over 300 graduated with similar qualifications. When they go into the workforce they will not be working for minimum wage. These are the people that are setting an example the many of us can follow. We still employ over a thousand foreign workers each year because our own labour force cannot meet the demand.
At this stage the government has met with members of the construction sector to see what can be done to stimulate construction and building work for our local business and workers. Government is considering very carefully what it can do in this regard. Already a number of potential projects have been considered. The next step is to assess the feasibility in terms of financing to kick start the construction sector.
PMG: Wilkie Rasmussen’s radio show on Tuesday refered to a deficit budget of around $20m in July – how will this affect the country/people and what measures is government taking to reduce its spending?
Brown: I’d like to see his maths. We have already indicated publicly that the government deficit this year is around $2M.
PMG: How will the review into the Free Entry into NZ affect the relationship with the CI?
Brown: I am not aware of any review taking place.
PMG: Was the issue discussed with New Zealand officials? And what was their response to this?
Brown: No answer.
PMG: Why this was discussed with international media and made public in NZ and not here first?
Brown: This wasn’t discussed with the NZ media. It was reported on after a speech that I made at the NZ institute of International Affairs.
PMG: During the campaign, there was much talk about ‘getting rid of secondary tax.’ Has there been much thought into this and when will this come into force, if not, why?
Brown: The removal of secondary tax is a matter still in consideration.
PMG: What is government’s plan to encourage people to stay in the Outer Islands. In a statement you made in Wellington, you stated ‘delivering a high standard of services to the country’s sparsely populated islands’.
Brown: See reply above.
PMG: You also spoke about investing in health and schools, is it likely the Outer Islands will receive a jump in the appropriation in July?
Brown: See above also. We are going through the budget process now. We aim to table the budget in Parliament during June (a first for our country).
PMG: Thanks again Minister and look forward to your response. As mentioned, these are questions raised over the past few days including on the normal radio talkback show this morning.
Brown: Appreciate it. I am always available for questions either for paper, radio or TV. You just have to ask.
Meitaki Maata

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