A Niue MP, Togia Sioneholo, who raised concerns about the island setting up a shipping registry, says it is not a bad initiative, but he is worried about how it will be managed.
Niue passed legislation this week that will allow for the establishment of a registry in conjunction with a Singaporean company.
The premier Toke Talagi says they believe they have controls in place to ensure that a Niuean flag of convenience will not be not abused.
But Mr Sioneholo says his concern is the lack of detail provided by the government over the management of the registry.
"My concern is whether we are going to receive what would be appropriate in terms of using the Niuean flag, or the Niuean name for that matter, and how protected is the Niuean interest in this arrangement."