Australia continues to be Tonga’s major development partner ^Featured

Australian aid amounts to a total of $30.3 million pa’anga for the 2014/2015 financial year, offering budget support, and funding development projects in the various sectors of defence, health, education, agriculture, fisheries, police development, and assisting in women development issues.

Prime Minister Pohiva expressed gratitude to the role Australia has played in the development of Tonga. “For that, I wish to personally thank you Foreign Minister, to the Government of Australia, who has always been responsive to Tonga’s development priorities,” he said.

The Prime Minister also expressed gratitude for the strong support Australia made in economic and public sector governance as in Tonga’s recent Parliamentary elections, as well as contributing significantly to the success of the political reforms.

    He also said: “I am very pleased to reaffirm my Government’s commitment to progressing areas of priorities and assistance that Tonga and Australia will work together on, in ensuring the economic stability, provision of quality health and education, as well as opening opportunities in agriculture and fisheries investments to boost our economic development.”
   Hon. Bishop responded: “I admire what you are seeking to do in economic reform.”

 The New Colombo Plan

    At the bilateral meeting with Tonga’s Prime Minister and selected members of the Cabinet, Hon. Bishop enthusiastically shared about her new initiative called the New Colombo Plan which is a signature initiative of the Australian Government aiming to lift knowledge of the Indo Pacific in Australia by supporting Australian undergraduates to study and undertake internships in the region.

   It will encourage a two-way flow of students with the region, complementing the thousands of students from the region going to Australia to study each year.  There are 38 countries that have agreed to the plan, 9 of these are Pacific Island countries, including Tonga.

   In September 2014, Tonga registered interest in participating in the New Colombo Plan. There would be 16 students in the first group to come to Tonga.
   The Australian Government has committed $100 million over five years to the New Colombo Plan.

    Hon. Bishop reiterated that these students in the New Colombo Plan would benefit so much from “a cultural and work experience exchange” as well as their counterparts from the host country.

 Regionalism

One of the issues raised in the Press Conference concerns regionalism, particularly the regional architecture, involving the Pacific Islands Forum (PIF) and relationship with Australia and New Zealand.

    With Fiji being invited back to the PIF after the suspension of membership because of the 2006 coup, there have been discussions in the region with Fiji demanding a less lead role by Australia and New Zealand in PIF, and even going further to propose an organization in the region without Australia and New Zealand.

    Fiji’s Foreign Minister, Ratu Inoke Kububola called on Tonga’s Prime Minister in January to echo Fiji’s ongoing rhetoric against Australian and New Zealand membership in the Forum
   Prime Minister Pohiva told reporters in Nuku’alofa at the Press Conference with Hon. Bishop that Tonga eschews taking sides on this issue. Tonga chooses to take a neutral position.

 He said: “We respect Fiji’s position if it serves their own national interests, and we will not interfere with that, but we stand to strengthen our warm and ongoing relationship with Australia and New Zealand. They have been development partners with us for a long time.”

  Regionalism, however, will continue to dominate discussions around the Pacific, and especially before the Forum this year in September. 

Seasonal Workers Program (SWP)

 Labour mobility is one of the issues important to Tonga in the bilateral talks. There are about 1200 workers in Australia. That number is expected to increase to 1400 this year. While the sectors are mainly in horticulture, the Government is seeking ways to include other industries.

   There are four new areas SWP is extended to, including accommodation, aquaculture, cane and cotton; consideration is also being given to other industries such as aged care, health care, construction, mining, seafaring and trades occupations.

   Remittances alone from the SWP almost equate Australia’s annual development assistance. Combined with New Zealand, workers earned a total of $53,331,795 pa’anga and remitted a total of $22,896,280 pa’anga in 2011. Labour mobility therefore remains a significant contributor to Tonga’s economic development. 

Defence, Security and Resilience

 Prime Minister Pohiva during the bilateral meeting expressed that another key area Australia has assisted Tonga in is ensuring maritime security and the safety of the region. He also acknowledged that the recent visit of the Foreign Minister to cyclone-torn Vanuatu signified Australia’s strong support in humanitarian assistance and resilience, an area that both Tonga and all Pacific islands are too familiar with the global threat of Climate Change and natural disasters.

    Foreign Minister Bishop also commended Tonga on sending a naval patrol boat to Vanuatu to assist in the services in the aftermath of Cyclone Pam. The patrol boat is one of Australia’s aid items to Tonga Defence.

 Market Access

 The Pacific Horticultural and Agricultural Market Access Program (PHAMA) is helping primary producers meet international export requirements. Bishop announced a reform to her development aid agenda in June 2014 injecting a further 20% towards aid for trade. She wants to make aid “make more sense”, to help the Pacific help themselves. Australia’s total export to Tonga is around $7million and Tonga’s export to Australia is around $2million.

Tonga’s leading sector, agriculture, could thrive more where barriers to Australia are removed.For example, the processing time for agricultural market access requests takes up to 7-8 years.  With a shortened response time, Tonga could gain revenue from potential agricultural export products to Australia.

 Foreign Minister Bishop departed Tonga today, Thursday afternoon, 2 April, after visiting various projects on Tongatapu that are funded by Australia.

 ENDS
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