Transcript
TERRY COE: The amount of money they have put into the salaries it doesn't equate to the four day a week working and having Friday off, five days’ pay - four days’ work. You would think they'd have gone and made people go back to work and do the five days. And yes that would get some more revenue to help pay for the wages that are paid out at the moment.
DON WISEMAN: So some people got 40 percent wage rises. Do you think that was justified?
TC: No I don't think it was. Because they are only working four days so that wasn't justified. That one point three [$NZ1.3 million dollars] should have spread across the whole of the public service and everyone would have got a top up. But again they are only working four days so where is the justification. And New Zealand is paying for that in the recurrent budget, the $NZ7 million dollars that New Zealand gives it. And that is totally wrong where you have got homeless people in New Zealand on the street, here's Niue got a free holiday on Friday. It's just not right and something should be done about.
DW: Now the end result of this is that Niue again has again got a deficit budget which is not the way it has traditionally been done. You have always tried for a balanced budget. Is it much of a problem having a deficit?
TC: Definitely yes. Last year's deficit, about one point four [$NZ1.4 million] and this year's is one point one, which is liable to go out further, means that we haven't got the case flow coming into the government so at the moment they are using the donor funds to top up the cash flow to pay the salaries and expenditure for the public service.
DW: Well I suppose if the donors are happy with that, its hunky dory isn't it?
TC: We got into trouble before because at the end of the day we couldn't pay the donors back. You have still got to pay that money back, so you are still not helping the deficit. And also it delays projects coming in because the money's been spent and you haven't got the government money to pay it back straight away.
DW: Now just a couple of months ago the premier, Sir Toke Talagi, was praising the economic situation on Niue and talking about the island being debt free. This is painting a different picture.
TC: Definitely. That's right and we are in deficit and it is very hard to get out of that deficit. They have already stated that the public servants who didn't get a wage increase are not going to get one this year and also the $NZ500 dollars for the pension per fortnight is not going to happen, and the money for the roads which in the present Budget is only $100 thousand is not enough to keep these roads maintained. We asked in the meeting, the last meeting [of the Legislature] that it be increased to $NZ300 thousand to help maintain the roads and they said they haven't got the money.
DW: The government has instituted a whole series of charges haven't they? There is a dramatically increased departure charge, there are charges now for water and so on. Are they going to bring in any do you thin, any extra money?
TC: No I don't think so because people will conserve water and that and the charges - they haven't actually implemented at the moment, so the longer they leave it, especially for water, they won't get their money in. The departure is supposed to go for security and looking after the airport, but you can guarantee that will be going into the general kitty.
