Kaya
Selby, RNZ Pacific journalist
The
Pacific Business Brief tracks the capital, trade and
trends shaping the regional economy.
In this
edition:
- Tokelau exits tuna
agreement - Fiji resorts embrace
solar - Solomons mining
crackdown
Tokelau: fish out of
water
Tokelau’s government has confirmed to RNZ
Pacific that they are no longer part of the Parties to the
Nauru Agreement (PNA).
The PNA is a sub-regional group
of eight Pacific Island countries that controls the world’s
largest sustainable purse seine tuna fishery. Tokelau held
observer status with PNA but was accorded the same benefits
as members.
RNZ Pacific understands Vanuatu has now
taken up that spot.
The New Zealand government said it
was backing Tokelau’s efforts to be re-admitted to PNA,
while denying suggestions that it is managing Tokelau’s
318,990 square kilometre Exclusive Economic Zone
(EEZ).
A participating party with a heavy reliance on
fishing revenue, the three-atoll nation would not elaborate
on why they were no longer part of the group, or whether
they were seeking a pathway back.
But not being part
of PNA removes Tokelau’s access to the Vessel Day Scheme
(VDS) – which PNA administers – where fishers pay for an
allocation of time that they are allowed to fish in a
country’s EEZ.
Advertisement – scroll to continue reading
New Zealand retains responsibility for
Tokelau’s international obligations. The Ministry of Foreign
Affairs and Trade (MFAT) has stated they were backing
Tokelau in talks with the PNA.
“New Zealand
understands from Tokelau that its participation in the PNA
Vessel Day Scheme was terminated in February
2026.”
“We understand the Government of Tokelau seeks
readmission to the PNA Vessel Day Scheme as a priority as it
provides a significant source of Tokelau’s income. New
Zealand is fully supportive of Tokelau’s efforts to regain
their full participation in the Scheme.”
According to
the PNA website, the VDS generates US$500 million annually
for member states Pacific-wide. For Tokelau, the fishing
sector, mostly from access fees, provides for more than 80
percent of non-aid revenue.
“Tokelau has limited
natural resources and agricultural capacity. As a result,
economic development opportunities are constrained, and
local production is sufficient only to meet basic needs,” an
MFAT country profile notes.
But RNZ Pacific has seen
minutes taken from a PNA summit in November that would
suggest New Zealand has now taken over the management of
Tokelau’s fisheries.
“Tokelau’s latest update in their
letter to Parties was that New Zealand’s position was not
likely to change, which meant that Tokelau could no longer
operate as it used to.”
It noted that discussions
included an “expression of regret at Tokelau’s situation
with New Zealand.”
“Certain Parties were already
experiencing the effects of this in their dealings with
Tokelau which were now proving difficult; past activities
done in the past, such as trading of days were now proving
difficult to undertake with Tokelau.”
MFAT denied
this, stating there has been “no material change to the
management of Tokelau’s exclusive economic zone (EEZ) and
offshore fisheries.”
“While New Zealand remains
responsible for Tokelau’s EEZ under international law,
Tokelau has consistently managed the day-to-day operation of
its offshore fisheries within the EEZ. This has not
changed.”
The South Pacific Community called Tokelau’s
trade situation “small in scale, highly concentrated and
structurally vulnerable” in February, noting a heavy
dependence on fuel.
RNZ Pacific has approached PNA
multiple for comment.
Fiji resort goes
solar
Sometimes in business, timing is
everything.
Shortly before Fiji’s diesel price rose
114 percent over three months, Nick Wood, owner of three
resorts on Fiji’s Yasawa Island group, told RNZ Pacific he
had just switched around half of his power generation away
from diesel.
“It was kind of good timing,” he said.
“In terms of our fuel consumption, which at one resort alone
was something around FJ$60k-70k a month, under the new fuel
pricing it would have been $120k a month.”
“It’s very
lucky that we managed to put our solar systems in before
this particular crisis happened.”
According to Wood,
operating with solar for the last six months has slashed
energy costs by 35 percent so far. It is expected to save
half of the annual cost by the end of the year. In other
words, an investment of approximately FJ$2.65M is projected
to saved approximately FJ$850k annually.
“Our whole
focus is how do we not consume more energy than we need …
and then how do we do it as much as possible with free
energy from the sun.”
“Now that batteries are
sufficiently cheap enough for storage, we’re managing now to
get through the night on the three properties off the
batteries.
“We have solar sunshine until about five
o’clock at night, and then it starts running on the
batteries, and most of the load transfers to those, and they
last through until about four or five in the
morning.”
Wood said it could prove a successful model
for Fiji’s schools, hospitals and other public
utilities.
Solomons mining update
A probe
announced last year into unpaid royalties on 33 shipments of
bauxite will soon begin.
Two Rennell-based firms, Asia
Pacific Investment Development Ltd and their subcontractor,
Bintan Mining, made around 100 Bauxite shipments from
2015-2021, The Guardian reported at the time. However, only
67 shipments had been paid, leaving an estimated SBD80m
(US$9.86m) hole.
Though an inquiry was announced last
year, new Mining Minister Derrick Manuari took it as a
chance to plug his government’s tough stance on
mining.
“The GREAT Coalition is taking firm and
necessary steps to overhaul a sector long plagued by weak
oversight and lack of accountability,” a statement
read.
“We are now doing the hard work that should have
been done long ago and putting in place strong systems,
tightening oversight and building a modern, accountable
framework.”
RNZ Pacific reported last week that dealer
licenses for alluvial gold mined in the country were all
being cancelled. The government said it will put a
state-owned monopoly together, while the Central Bank
handles all gold exports.
But this will not happen
automatically – the government reported that there are ten
licenses still in existence; they are all subject to harsh
compliance audits, and that their cancelation is the “final
step” of the process.
In 2024, Solomon Islands
exported US$86.4M worth of gold, according to the
Observatory of Economic Complexity, with most of it going to
Australia, with smaller amounts passing through Hong
Kong.
New Zealand’s public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.
Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.
