The Cook Islands government has taken further steps towards establishing a Sovereign Wealth Fund (SWF), with officials currently in New Zealand holding discussions with financial experts, Prime Minister Mark Brown told Parliament this week.

Brown also took the opportunity to push back against claims of strained relations between the Cook Islands and New Zealand noting: “So contrary to what we may hear on the media about a total breakdown of our relation with New Zealand, the reality is, it’s business as usual.”

He added that cooperation extended beyond finance to areas such as national security and cybersecurity, where the Office of the Prime Minister continues to engage with New Zealand officials.

Responding to a question from Matavera MP Vaitoti Tupa during the parliamentary Question-and-Answer session, the Prime Minister confirmed that two microeconomists from the Ministry of Finance and Economic Management (MFEM) were in New Zealand this week engaging with reserve fund specialists.

“The Sovereign Wealth Fund has been something we’ve spoken about for more than 10 years,” he said.

Brown explained that the concept of a Sovereign Wealth Fund has been central to discussions about seabed minerals, ensuring that any revenue generated from the sector is safeguarded for the country’s long-term benefit.

“As part of our seabed minerals journey, that if after all of our explorations and all of our studies and environmental programmes, and if the commercial viability was available, that we started to earn revenue from our seabed minerals, how would we protect those incomes?”

Brown noted that the government had studied how other countries, such as Australia, Nauru and Norway, manage their mineral, oil and gas wealth.

He highlighted Norway’s model as one of the best in the world for long-term investment and protection of national income from natural resources.

Brown, who is also the Minister for Seabed Minerals, reassured Parliament that consultations had taken place, including with New Zealand’s Reserve Bank, to seek expertise on establishing the fund.

“In fact, it was just last year that I met with the Governor of the Reserve Bank (New Zealand) here in Rarotonga, Governor Adrian Orr, and he expressed his willingness to help the Cook Islands in the establishment of our Sovereign Wealth Funds”

Brown said he looked forward to updates from the team currently working on setting up the Sovereign Wealth Fund and exploring potential engagements with New Zealand.

His comments come after public consultations were held last year regarding the creation of the Fund, which is expected to “secure the nation’s financial future, fund critical infrastructure and ensure economic resilience”.

The Ministry of Finance and Economic Management’s (MFEM) Economic Planning Division led the consultations, which took place across Rarotonga, including in Matavera, Avarua and Arorangi.

At the time, MFEM Secretary Garth Henderson emphasised that the discussions were essential for raising public awareness and gathering community feedback.