N.Z. Contribution To Pacific Islands

Press, Volume CIX, Issue 31987, 14 May 1969, Page 16

N.Z. Contribution To Pacific Islands

“As the most developed of the Pacific Island communities we cannot escape our duty towards our friends and relations,” said the Minister of Island Territories (Mr Hanan), addressing the annual conference of the New Zealand Institute of Public Administration yesterday.

In the next few years many changes would occur in the South Pacific. New Zealand was fortunate to be living in an area where there was a considerable amount of good will towards it and he felt that it must endeavour to retain this good will.

The Minister said it was not yet generally appreciated that New Zealand was part of the South, Pacific and that New Zealanders were Pacific islanders themselves. New Zealand was very much concerned with between 55 and 60 per cent of the total population of Polynesia, and many other Polynesians tended to look on New Zealand as a sort of big brother. “In effect,” said Mr Hanan, “it could be said that New Zealand is the capital of Polynesia.” Aid “Not Negligible” New Zealand’s contribution to the Pacific islands, direct and indirect, was not negligible. “Some would say it is not enough,” said Mr Hanan, “but we have to consider the various forms that aid may take and the advantages or disadvantages of each. In my view, gifts of money to balance the budget of a government are not only negative in approach but almost inevitably lead to bad feeling—nobody likes' to live on charity. The positive approach is to provide money that will lead to greater selfsufficiency and greater selfrespect. “It is better for New Zealand, for example, to finance the airports in Rarotonga and Niue, or the cattle scheme in Niue, than to increase cash subsidies. Projects of this nature provide an opportunity to increase revenue and so reduce dependence. “But there is a physical limit to the amount of capital work that can be done in one year in a small island community. The amount of work possible is governed by the availability of labour, technical expertise, transport equipment and materials. Thus we have to be practical in our assessment of capital aid.

“In the meantime we can continue our educational assistance to ensure that qualified local experts are available as development proceeds. We can also ensure that we absorb as much as possible of the produce of the South Pacific—bananas from Samoa, Fiji and Tonga, citrus products from the Cooks

and sb on—and so provide an earned income that is better than any subsidy. “We can help to absorb some of the surplus population of overcrowded islands. There are many ways in which we can help our neighbours other than by cash hand-outs. This we are doing and this we must continue to do.”

The Cook Islands status of less than full independence carried inherent difficulties and the possibilities of tension were all too obvious. “Where a government depends on another government for about 70 per cent of its income, the donor government can be excused if it feels at times that the money is not being wisely expended," he said. “On the other hand, the donee government is bound to feel irritated from time to time if limitations are placed on the amount of subsidy that it considers to be a necessary minimum.

“The relationship is very like that of a father and his son who has become of age but lacks a regular income. It is a situation which calls for a good deal of understanding, tact and forbearance on both sides. Where we have had differences, they have been in the nature of family differences and have been resolved in the same way. Tourism “Obviously, both the Cook Islands and New Zealand would like to see a great improvement in the economy of the group. The limited resources of the islands can be developed further, but probably the main source of an expanded revenue will be tourism. There is no doubt of the beauty of the southern Cooks and the charm of the people. Nobody, of course, wants to see the islands ruined by tourism, but it is certainly possible to manage tourism in spch a way that benefits will greatly outweigh any disadvantages.

“The New Zealand Government’s decision to provide an international airport in Rarotonga was prompted both by the need for improving communications and by the possibilities of improving the economy of the group through tourism. “Let us hope that during the next few years the Cooks will become less dependent on New Zealand. I say this not because we regard the Cook Islands as a burden, but because the Cook Islanders, like most people, would prefer not to be so heavily dependent on us for finance.”