Pacific / Cook Islands

Cooks opposition alarmed at budget direction

17:17 pm on 15 June 2021

The Cook Islands opposition has accused the government of being fiscally irresponsible, saying the country is moving from being broke to being very broke.

Cook Islands opposition leader, Tina Browne Photo: supplied

The opposition leader Tina Browne said there is a lack of synergy and coherence in the government's policies to bring about the much needed recovery after the country fell into the economic abyss by Covid-19.

She said in the next financial year the GDP to debt ratio will be sitting around 48.9 percent.

Ms Browne said scarce dollars must be used wisely, and capital investment must be directed at strategic tourism hubs in Rarotonga and Aitutaki because tourism is what the government is pinning its hope on.

She said there is little evidence of the much-promised diversification and the Cook Islands has not learnt any lessons from over-reliance on tourism.

Ms Browne said for the Pa Enua, or outer islands, it is vital to assure food security, potable water security, access to medical doctors and proper shelters so that they are not blown or washed away during a cyclone.