SI: CONCERN OF THE EXPECTED LOSS OF REVENUE FROM EXPORTS AS LOGGING AND FISH STOCKS BOTH DECLINE

29 May 2019

Solomon Islands:   Projected loss of revenue with declining log exports and reducing fish stocks.

In most recent contributions to the local media I concentrated on concerns for general health matters but today the focus needs to be on financial health especially after reading the grim news contained in the Central Bank of Solomon Islands (CBSI) 2018 Annual Report and highlighted in a revealing article published in the Solomon Times on Line.

I will quote, in full, what the article had to say:

“The Central Bank of Solomon Islands (CBSI) 2018 Annual Report showed that round log exports contributed a substantial portion of the country’s foreign exchange inflows.

“In 2018, round logs made up 79% of foreign reserves receipts. Multilateral and bilateral aid contributed 12% while fishing license receipts contributed 7%.

“Interest on foreign reserves including SDR, call account interest and investment returns made up 2% of the foreign reserves inflows while domestic market foreign exchange deals contributed under 1%.

“In 2018 CBSI issued 924 Specific Authorities to Export to round log exporters. This was a decrease of 7% from the previous year. The estimated volume also decreased by 10.6% to 2.822 million cubic meters valued at approximately SBD$2.9 Billion.

“Foreign reserves play a critical role in maintaining liquidity; this ensures that businesses and individuals can pay for imports – which in turn stimulates growth in the economy.

“If one were to combine round logs and fishing license receipts we can say 85 % of Solomon Islands export earnings depend on two resources – logs and fish,” stated a senior official at the Ministry of Finance statistics department, who spoke on the condition of anonymity.

“We have a looming crisis, one that we are not prepared for – both these resources, which we depend on, are declining fast…we all know valuable logs are declining and so are fish stocks.”

“He says that Solomon Islands is not attracting any serious foreign direct investment (FDI) because it is not putting in place necessary protections for emerging sectors like mining.

“We have to start thinking about the future, how will we fund our future? Resources are depleting fast, and we are not doing enough, right now our economy cannot absorb the projected loss in revenue, or exchange earnings if something happens.”

To offset the expected loss of revenue from logging and fishing the DCGA is banking on the tourism industry to make up the losses and has a target of seeing 60,000 annual visitors by 2025.

The potential of the Solomon Islands as an ideal holiday destination is clear but the industry faces tough competition from Fiji and Vanuatu for the tourist dollar and air services and facilities for holiday makers and visitors in both those places far exceeds the current situation in the Solomon Islands where there are still some 360 beds short of the minimum 700 quality rooms and the need or better hospitality facilities and infrastructure.

Last year, the Solomon Islands Visitors Bureau was rebranded Tourism Solomons at the same time the new national brand, 'Solomon Is.' was launched.

The rebranding also involved new imagery for advertising material and the development of sales tools for international travel agents.

One must remain optimistic that the rebranding and the development of sales tools will bring about the anticipated number of expected visitors and thereby contribute significantly to the shortfall in predicted revenue.

Yours sincerely

Frank Short

SI PM ADDRESSES THE NATION

SI PM ADDRESSES THE NATION AT INDEPENDENCE CELEBRATIONS

Quoting from the Solomon Star newspaper – 9 July 2018

“Speaking last week during the 40^th Anniversary Celebrations, Prime  Minister Rick Houenipwela cautioned the nation on high rate of youth unemployment in the country and unveils important steps to address the problem.

“PM said our youth, which comprise more than 50 percent of the county’s population, do not have adequate employment and / or entrepreneurship opportunities.

“Therefore they are not able to contribute effectively to our country’s economic development,” he pointed out.

“A reform in our education curricular will ensure our youths are more competitive in the labour market,” Mr Houenipwela stated.

“He said that the Government is now taking steps to create innovative employment and entrepreneurship opportunities for our young people through-out the country.

“This year we will introduce a new Youth Empowerment Policy to drive youth employment and entrepreneurship in the country,” he highlighted.

“Mr. Houenipwela said this framework will also include programs for leadership training, in sports, arts and drama and many other areas of interest to our youth population.

“To enhancing employment and entrepreneurship opportunities for youths in the country, I am personally seeking to put in place formal labour mobility agreements with several countries including Australia, New Zealand, Canada, Japan and Taiwan that I hope will help provide huge opportunities for our youths and alleviate the youth unemployment challenges in our country,” PM revealed.

“We must step up efforts to support our women in businesses initiatives and programs as well,” he said.

“Economy shows positive signs

Solomon Islands economy has been enjoying positive growth for the past several years, says Prime Minister Rick Hou.

“The Prime Minister highlighted this, when speaking at the country’s 40th Independence celebration in Honiara, last Friday.

“He said, that would have enhanced opportunities for business in areas such as infrastructure services, tourism development, sustainable forestry, agri-industry and fisheries.

“In recent years, except for a contraction in 2014 caused by devastating floods and the closure of “Gold Ridge mine, it grew by 2.9% in 2015, 3.2% in 2016 and in 2017 of growth of 3.0% has been recorded.

“However, the strong momentum in 2017 is not expected to carry into 2018 and 2019, with GDP growth projected to be 3.5 percent in 2018 and 3.4 per cent in 2019.

“This is primarily due to the expected fall in the value of log exports and fishing activities,” said the Prime Minister.

“He added, the Government is addressing this simmering risk to revenues and foreign exchange earnings.

“Prime Minister Hou said that, given the impact from the closure of Gold Ridge Mine, it is one of the main policy drivers of the Government to reopen Gold Ridge.

“After much discussion, I am more than hopeful that this will eventuate with the first gold pour in 2019,” he said.

“As the country celebrates its 40 years of independence, Prime Minister Rick Hou says there is a need for people to work in unity to solve the challenges facing them.

“Prime Minister Hou made the tough call, when addressing the nation during the 40th independence celebration last week, in Honiara.

“As we all can recall, we have faced serious challenges including the ethnic conflict.

“But the challenges we faced, strengthened our resilience as a people, and our resolve as a nation,” Prime Minister said.

“He added that the challenges we faced showed us the value of unity, for there is more that unites us, than divide us.

“We must ensure the security of our nation remain strong and firm. That we remain united, as one people, living in peaceful co-existence.”

“He said this is the legacy we must guard with honour to pass on to our future generations – the legacy of peace, reconciliation and unity; the legacy of one people, one vision, one destiny and one nation.

“Fellow Solomon Islanders, we all have a collective responsibility to our beloved nation. It is my hope that we can work together for the common good of current and future generations.”

“He said, regardless of where we are, and what we each do – we all have a moral responsibility to our nation.

“Together we can all contribute to the kind of Solomon Islands we wish to leave behind for our children and grandchildren. He said.

“Never before has there been a better platform for us to launch our journey for the next 40 years than we have now.

“We have learnt from our lessons. We know what it is like to grieve; but we also know what it is like to be rise above the hurts and be reconciled, to be liberated and to be free.

“So let us join hands as we march with confidence toward our future,” the prime minister said.

“The future of Solomon Islands is in our hands. Actions and decisions by our Leaders today, in all walks of life, will determine what kind of Solomon Islands we will see in 40 years.

“Our decisions and action today can either empower or condemn our future generations – We must choose wisely,” he added.

“Meanwhile, the prime minister said, to guide us, we must be united with a vision that portrays “a strong, secure, peaceful and prosperous Solomon Islands whose people are educated, healthy and manage their resources in an economically, environmentally and socially sustainable way”.

Copyright :  Solomon Star.

INFLAMMATORY COMMENTS UNACCEPTABLE

Breach upheld over Kiwi talkback host Heather du Plessis-Allan's Pacific leeches comments

Quoting Radio New Zealand – 4 April 2019

“The Broadcasting Standards Authority has upheld a complaint against a presenter who described the Pacific Islands as leeches.

“It found Newstalk ZB's Heather du Plessis-Allan's comments were inflammatory, devalued the reputation of Pasifika people within New Zealand and had the potential to cause widespread harm.

“The Authority (BSA) ruled she breached the good taste and decency and discrimination and denigration standards.

“NZME Radio was ordered to pay $NZ3,000 in costs and to broadcast a statement during Wellington Mornings with Heather du Plessis-Allan, summarising the BSA's decision.

“Her comments came during a discussion about the prime minister attending the Pacific Islands forum in Nauru, when she questioned the use of the visit.

“It noted the public condemnation of Ms du Plessis-Allan and acknowledged the Authority's responsibility to reflect the values and attitudes of New Zealand.”

Copyright @ 2019, Radio New Zealand

EMBRACING TRADITIONAL CULTURE

AN ENCOURAGEMENT FOR YOUTH TO EMBRACE THEIR TRADITIONAL CULTURE

Quoting Radio New Zealand International – 19 March 2018

“A Solomon Islands academic working in New Zealand is urging Pasifika youth to embrace their culture and draw strength from their heritage.

“Kabini Sanga is an associate professor at Victoria University in Wellington who has established mentoring and leadership training programmes for young people in Solomon Islands and New Zealand.

“Professor Sanga says in an ever more globalised world knowing and accepting your roots can be an important asset.

"Appreciate who you are, be content with who you are. And in being content explore that which is already you. So that in your daringness you might even flourish as a person and consequently as a leader.

"So that the grounds which you conquer might indeed be a blessing not only to yourself and your family but to everyone else."

Copyright:  RNZI    (All Rights Reserved)