Letters: No room for Chinese bank

Wednesday December 04, 2019 Published in Letters to the Editor

Dear editor

Your article “Chinese banks can enter Cooks crowded market” in Thursday, October 24 issue, came as a real surprise.

 

The fact that deputy prime minister Mark Brown would go ahead and allow another bank into what is already a very small market, simply highlights the simple lack of foresight and common sense this government possesses.

With four commercial banks currently operating here in a seriously depopulating country and with severe reductions in our country’s revenue receipts, government is hard-pressed to justify allowing Chinese banks into our already very crowded market.

We don’t need another bank, especially from the second wealthiest country in the world that will further exacerbate severe financial repercussions (and particularly land issues!) for our people.

Furthermore, our economy today is based and reliant 100 per cent on the tourism industry to pay and provide for our health sector, education, internal affairs, and etc. With virtually no economic contribution from our own primary industries of agriculture, fishing and pearl farming due to government’s failure to support these industries with sustainable economic policies, tell me, exactly how are our people going to be able to repay a loan back to these new Chinese banks, if they have insufficient, little or no income to pay it back? What?! Pay it with their land?! No way!

I’m sure our people would agree with me that this potentially has the opportunity of being a “Trojan Horse” of huge and severe future economic proportions that our Ipukarea paradise may never recover from!

As the saying goes; “If it aren’t broke, don’t fix it”. So deputy prime minister Brown, our current bank numbers are fine.

Do not endanger the future economic wellbeing of our people by allowing any more new banks to operate here, just because you think you know better than your own people. Reality check: “You don’t!”

It’s time for a new vision and new innovation for our people to move ahead. The Democratic Party do have the policies to move our country forward.

Tupou Faireka

 

Editor’s note: In October this year, the Cook Islands signed an agreement to allow Chinese banks to operate in the country. The agreement was reached at the China-Pacific Islands Countries Programme of Action on Economic Development and Cooperation in Apia, Samoa. Deputy Prime Minister Mark Brown attended the meeting along with leaders from nine other Pacific island countries where they held talks with China’s Vice Premier Hu Chunhua. Subject to the law and regulations of each country, the Pacific leaders supported Chinese-owned banks in operating financial business and innovative financial products in the Pacific island countries, and vice versa.

 

 

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