16 Dec 2005

Tonga's Finance Minister says the economy is in dire straits and the people need to recognise it

3:44 pm on 16 December 2005

Tonga's Finance Minister says the economy is in serious trouble and the country will be facing tough times.

Siosiua 'Utoikamanu says it is only a matter of time before Tonga feels the consequences of the huge pay rises given to public servants.

He says the Government had asked the ADB to give an independent view on the economic outlook for Tonga and their report is grim.

But Mr Utoikamanu says some people don't accept the data and he is dumbfounded that they are questioning the Bank's findings.

He says Tonga is facing something similar to a cyclone and it is only a matter of time before it hits - but he says having an early warning allows people to prepare.