Introduction
Julius Caesar was warned by muses to beware the Ides of March, and indeed he was murdered on the Ides of March. The cruelest blow was from his protégé and prospective son in law Brutus, made famous by his dying remark – “Et tu, Brute!”
My report for March will be much less dramatic. I spoke on Wednesday 31 March to open a meeting on “Law and Economic Development.” I quoted famous Judge Lord Denning, who in a decision against the Government in 1977, quoted Thomas Fuller’s words with approval “Be ye ever so high, the law is above you.” While it was good to be amongst my legal colleagues again, sometimes even lawyers need to be reminded of this fact.
Law and Economic Development
Laws are man made, and we need to ensure our laws assist in our economic development. This means the law must leave the free market alone to determine its own conditions. We have deregulated the banking sector, and all four banks are competing with each other in a friendly but very real way, which is good for the customers.
We have determined the private sector is to be our engine of growth, so we must ensure that all our laws are investor-friendly. Who better to consult on investor-friendly laws, but the private sector themselves.
I did not get an opportunity to listen to all the papers, but His Honour the Chief Justice gave two excellent Papers, “The Banker and Customer Relationship” and “The Bank’s Right to Combine a Customer’s Accounts”.
I should also have taken this important opportunity to remind lawyers and accountants that they should support government’s efforts to keep the Offshore Centre functioning, especially in view of OECD pressure to close it down. A recent study found the Centre brought a million tala’s worth of legal and accounting fees, to both professions every year. This is additional to the at least $6 million government revenue every year.
Our main argument is that if the OECD cannot close down the Offshore Centres of its own members (Switzerland, Lichstenstein, Monaco and others) – why should they compel developing countries to close down their Centres? It is all about the so-called level playing field, and how we have not been able to achieve it. Even if the OECD do close them down, how can they close down the Singapore and Hong Kong Centres?
The War of Words on Airfares
March also saw the start of the war of words on airfares. As usual, first words, and then action. Our national carrier, Polynesian Airlines, has matched all Air New Zealand’s prices, but with very significant differences that make the POLY DEALS more customer friendly. You can get some refunds, you have seven days (not 24 hours) to pay, and it all starts on 1 May (not 20 May) so Congregationalist Conference folk can use them to attend the Malua meetings in early May.
Do these new low fares mean the final nail on Polynesian’s coffin? Any good cost accountant will tell you the key is not the airfare but the total revenues achieved for each flight as compared to the actual costs incurred. Our national airline faces some major challenges, not least its extensive debts and the economies of scale issues of a one aircraft airline. However, we have worked hard with the Board of Directors to improve efficiencies, and to ensure that our people become more involved and start feeling nationalistic feelings for our airline.
Brian Lima advertisements are one way of trying to achieve this goal. Showing a sensitivity to the needs of the Congregational Christian Church is another. Your National Airline – Local Staff with Local KnowHow – serving our People. The best way to get customer support is to provide a superior service to the competition.
We have now engaged the services of a team from the International Finance Corporation (IFC) to help us improve the operations of Polynesian. They have already made some constructive suggestions, and have promised me a full report by mid-May 2004. They need to understand that Samoa is in the airline business in order to support the tourist industry, and to ensure the best airfares for our people.
I have already advised the public Polynesian needs more funds from the 2004-2005 Budget, how much we will know for certain shortly. The last set of accounts to 30 June 2003, are also now ready to present to Parliament, and will be made public as soon as they are tabled.
The Controller and Chief Auditor to Probe Further
The preliminary report on the anonymous complaints letter has been handed to me. I applaud the Chairman and CEO’s decision to refer certain aspects of it for further investigation by the Controller and Chief Auditor. I would seek the public and the media’s indulgence while we complete these investigations. We shall release our full findings when all the information is to hand.
The Accountants’ AGM
I attended the accountants’ AGM on 31 March 2004. I shall move to ensure their new legislation is enacted in the next session of Parliament. It was an excellent meeting with five new members admitted into the association, having completed their CPAs. It is getting more difficult to pass the FQE, ironically, only three ladies, out of 24 candidates, passed the FQE. I started my day with the lawyers, and ended it with the accountants last Wednesday 31 March.
The Global Foundation
The Global Foundation is a global think tank. It has met previously in Washington DC and Beijing, and the recent March meeting in Sydney was to focus on the Asia-Pacific region. The Meeting was co-sponsored by IMF/World Bank, AusAid, University of Sydney, ADB, and the NSW Government. Its opening manifested the multiracial nature of Australia. The opening was by a Lebanese/Australian, Professor Marie Bashir, who is Governor of NSW and the spouse of Sir Nicholas Sheheidy (one time Rugby Union boss) also of Lebanese background.
I was asked to Co-Chair one of the Groups with the cantankerous Vice-Chancellor of Sydney University, Professor Gavin Brown. He was a brilliant mathematician before becoming Vice Chancellor, and I enjoyed his brilliance.
Our main discussions focussed on issues such as regional security, attracting more Foreign Direct Investments (FDIs again!), the impact of globalisation on small states, education, sustainable economic development, and integration. These findings will be available soon for publication.
Oil Prices, Privatisation and Corporate Governance
Treasury has put out two separate releases on these issues. What needs to be made very clear is that public policy is the mandate of the executive branch of government. There is a good topical example of this point. On Monday morning at 8:30am (5 April), at least 10 fishermen will present a petition to me seeking assistance with the ailing fishing industry. This petition will be the platform for a Cabinet submission, seeking reports from Agriculture, Trade Ministry, and the Development Bank, so that a comprehensive holistic package of assistance can be formulated. Industry concerns with the Revenue Ministry, I understand, are being addressed.
Samoa does not exist in a cultural vacuum. People with problems with the public sector (whether ministries or corporations) will continue to seek the help of Ministers. The Prime Minister is expected by our cultural traditions to respond to the cries for help of our people. The same applies to his Ministers. It is both disrespectful and culturally inappropriate for a corporation to claim interference when such a matter is referred to them. What corporations must also never forget is that they are accountable to the people, and the government of the day are the duly elected representatives of the people.
A recent decision by OPEC to cut-back production has meant an increase in local petrol and oil prices from 1 April 2004. Every effort will be made to keep future increases to a minimum.
Warwick Hotels and Yazaki
We must congratulate and commend Yazaki Samoa for their initiative in bringing in two charter flights next week. As Acting Prime Minister, I look forward to greeting, welcoming and helping to host these some 900 visitors to Samoa. We must also commend Yazaki for securing the General Motors contract, this augurs well for the employment of our people through to 2010.
Next week we shall also host a billionaire hotel developer from Paris, the owner of Warwick Hotels – Mr and Mrs Richard Chiu and their party. The Chius will be accompanied by their investment banker from Australia Mr Stewart Young and his wife Mary Anne. Mary Anne is the daughter of the late Alfonso Phillips, who was a former Commissioner of Police and Minister of Education in Samoa. Alfonso’s mother was from the Schmidt family. It will be a great opportunity to showcase Samoa as a great country to invest in for hotel developers.
Conclusion
Another month has passed. Our 2004-2005 Budget will be tabled on Friday, 28 May 2004, freeing up Monday 31 May for pre Independence preparations. Every effort will be made to table a people and private sector friendly Budget.
Our Prime Minister left in the weekend to attend Helen Clark’s mini-Forum, and he is now one of the senior leaders in the region. This meeting is also attended by Australian PM, John Howard, and will set the platform for the Forum Meeting, to be hosted and Chaired by Hon Prime Minister Tuilaepa in Apia in August 2004.
I take this opportunity to thank all our people and the media for your support of government’s efforts in March 2004. Let us hope April proves to be quieter than March!
Have a Happy Sunday and God Bless
