Pacific / Niue

Niue works towards 'self-sustaining' future with NZ

08:59 am on 6 June 2024

Photo: RNZ/Giles Dexter

An MP in Niue wants New Zealand to support the realm to stand on its own two feet economically.

New Zealand PM arrives in Niue

"How we can grow with New Zealand towards the next 50 years, and possibly to be self-sustaining, not to be dependent more on New Zealand every time we need cash," Niue MP Emani Fakaotimanava-Lui told RNZ Pacific.

New Zealand Prime Minister Christopher Luxon landed in Niue on Tuesday, on his first official visit to the Pacific after assuming office.

The trip marks five decades since Niue made a decision to self-govern in free association with New Zealand.

Niue is not independent, instead it is a realm of Aotearoa.

"The independence part would have to be decided upon by those at the time," Fakaotimanava-Lui said.

With less than 1700 people living on the island, and many more tagata Niue in Aotearoa, he said there are more immediate issues than independence.

He said his hope for the next 50 years is to see Niue generating its own revenue.

Prime minister or premier

Luxon supports Niue's planned constitutional changes despite concerns they could be perceived as Niue wanting to loosen ties with Aotearoa.

One of the planned changes is the name of the role of "premier" to "prime minister".

"I think they make sense. I think they're entirely appropriate and we're very supportive," Luxon said.

Niues first woman Cabinet Minister appointed in 1993 and currently the longest serving Member of the Niue Assembly, O'love Jacobsen, has voiced concerns, calling part of the proposal "politically irresponsible".

"We are in a very good position with New Zealand, and that's why we shouldn't spoil it and venture out to sort of give impressions that would do otherwise," Jacobsen told RNZ Pacific last month.

In a statement, Premier Dalton Tagelegi said the proposed changes signify Niue's increasing focus on self-governance and the island's own Pacific identity.

A public consultation period is underway ahead of a third and final vote.

Geopolitics

Speaking on geopolitics in the region, Luxon said security and economic growth go hand in hand.

"Pacific solutions are key" to solving Pacific challenges, he told media.

"It's [the Pacific] a more contested geostrategic environment."

After a long back and fourth with media at a press conference, Luxon finally named the powers at play.

"Whether it's China, whether it's the US, whether it's other powers".

Niue Broadcasting Corporation head Esther Pavihi said geopolitical struggles between China and traditional western powers are not front of mind for tagata Niue (Niue people).

"I don't think geopolitics is an issue for Niue," she said.

"In my previous interviews with Premier Dalton Tagelagi, he toes the regional line which is, friends to all and enemy to none".

In light of the friend to all stance - China has been fixing roads on the island while Aotearoa has funded an airport runway upgrade, a project Luxon checked in on during the trip.

"The visit from Prime Minister Christopher Luxon is a significant gesture of respect for that special relationship between Niue and New Zealand," Pavihi said.

She said it is special because he is the first New Zealand prime minister to stay overnight in Niue, not just spending a couple of hours before darting off.

She said if this what you call "geopolitics"' then so be it, but she would not call it that: "It's not an issue for Niue," she said.

The deficit

Fakaotimanava-Lui said something that is an issue is the more than NZ$15 million deficit hanging over the Niue government.

"There's probably going to be a lot of questions on why it's going to be double this year straight after last year's one and then probably look at areas of financial spending, looking at ways of how it could be done better," Fakaotimanava-Lui said.

He suspects the money has been spent on failed projects led by external consultants.

They include a barge custom made in Fiji with a price tag of over NZ$1 and a High Lift Forklift that sat in Auckland racking up a storage bill in the tens of thousands only to be resold.

"So a lot of these projects if we actually go and have a look at it, we will probably find that there's actually 15 million of wasted cash," he said.

Power woes

Power outages continue to plague the coral island.

"There are power outages as early or as late as last week Monday for a few hours in the evening," a big frustration for business owners and community members, Fakaotimanava-Lui said.

"We were funded quite a bit of money to develop and build a new powerhouse that is still not activated yet," he said.

He said power cuts have been so bad some businesses may need to take out loans with heavy machinery and equipment affected.

"Because it's an ongoing issue, there's really not much that they can do in terms of planning for their business, to be able to, you know, build it a little bit better than what it was," he said.

Some have had to bring in their own generators too.

Prime Minister Luxon has flagged renewable energy as a way forward, announcing a NZ$20m energy project on Wednesday.

"Our big focus is to make sure we double our renewable energy at home. And it will be pretty good to build more resilience here with something similar in Niue as well," Luxon said.

Meanwhile, Fakaotimanava-Lui said both the government and private sector are struggling to plug an employment hole and there are health issues which need addressing including medications not being readily available.