NZ ‘buy back’ idea ridiculous says CIP

Wednesday 1: The Opposition Cook Islands Party has released its position on the new $50 million China loan and says government has been reactive instead of proactive in addressing infrastructure needs.

Opposition spokesperson for finance and economics Norman George says while the CIP agrees in principle that the loan be spent on road and water works in Rarotonga, government has acted in haste once again without evaluating the consequences and outcomes. He says the opposition agrees that Rarotonga is the hub of the country’s economy and needs infrastructure to support tourism and other related industries. It also agrees that the China loan is the cheapest and the processing of it is more efficient than that of other development partners.

He says alternatives like an Asian Development Bank or European Union loan are expensive and NZ and Australian aid are drip fed with cumbersome and inefficient processes.

But the opposition are of the view that government’s trait is to do things too late.

“It always does things to the contrary because it is reactive and not proactive.”

The opposition says the suggestion that NZ aid can be used to ‘buy back’ the loan is ridiculous unless the matter is discussed at a multilateral level and agreed to by the governments of NZ, China and the Cooks.

George says this matter could cause embarrassment to other development partners like NZ and Australia.

“If MOIP (ministry of infrastructure and planning) is to come up with a plan to repay the loan, it would appear that government is embarking on a user pay system or an increase in some form of taxation to service that loan of which our people are not consulted in the first place.”

George says for China to share 50 percent of the value of the loan by taking $25 million in contract work is also ridiculous. He says government should be dictating the terms and conditions of how much contract work is shared. - HG