Belt Tightening?

J. Roughan

4 March 2009

Honiara

Chalking up a $2.4 million yearly office rent in the midst of a national and international financial meltdown doesn't make too much sense. That's  exactly what the Ministry of Foreign Affairs is doing by moving into new offices. Can the nation really afford to shell out $200,000 monthly rent to Honiara's newest building owners when the ministry already enjoys adequate office accommodation?

 

But spending money like a drunken sailor doesn't stop there! The same ministry plans to send a delegation--with the minister's spouse tagging along--on an overseas trip costing tax payers $400,000. These expenses are hard to justify even in the days when government's monthly revenue was strong and consistent. For the past four months, however, monthly revenues have halved while its expenses have increased. Not a good recipe for success in the world's present financial melt down.

 

Other ministries seem to be traveling along the right track . . . signing the World Bank to a feasibility study for a major hydro-scheme for electricity. Unfortunately, even if successful the Ministry of the Environment must wait at least 5 critical years before such a scheme begins to kick in with electricity. In the mean time it means SIEA depends upon expensive diesel fuel rather than coconut oil to run Lunga's generators.

 

Getting government to pay its creditors looks more and more like a re-run of our 1998-2003 bad old days. Rental payments for public servants housing is currently well behind schedule. The delay in getting Honiara's potholed roads repaired has much more to do with cash flow than the rainy weather which is currently blamed for the inaction.   

 

Already 4 or 5 logging ships sent from Solomons to China have been turned back by authorities . . . China needs the logs but doesn't have the money to pay for them. Recently two ship loads of scrap metal were turned away from Australian ports. The same story! Australia has more than enough metal and doesn't need any scrap at all, thank you!

 

Our staple exports--copra, cocoa, oil palm--already feel the world's inability to import overseas products as with many other products which the big off shore countries had imported in record amounts over past years. The good and easy times have come to a screaming halt. Australia's economy as is New Zealand, etc. are dipping into recession mode and finances will only get worse before they get better.

 

How in the world can we as a small nation think we some how will be immune from this terrible financial disease and ride out a fiscal meltdown currently gripping the whole world? Each week world leaders meet in unprecedented, hastily called conferences to try to do something, anything, to pick leading nations out of the deep hole they have dug themselves. The US Congress, for instance, recently passed a $800 billion stimulus package because its industries are falling over like flies with hundreds of thousands thrown out of work.

 

We, on the other hand, seem to act like the man who dived off a 15 floor building and as he past the 10th floor said to himself: " Well, nothing has happened so far!" When, however, he finally reaches ground level a few seconds after he past the 10th floor he'll know without any doubt what is happening. But then it's too late!

 

This month's parliamentary meeting couldn't be better timed. Whether any new legislation is tabled or not during this session, is besides the point. Government and the Opposition must focus their energies on how to prepare our people, its ministries and the whole government apparatus for the financial downturn of the next 18 months  or so. Unfortunately, our leaders have not proven themselves good at protecting either the people nor the nation. The Social Unrest years of 1998-2003 showed how Honiara centric and self centered in thought and action they are. 

 

Hopefully things will be different this time around. Essential services--villagers medical, education, transport and communication needs--must be upper most in parliament's mind, not simply parliamentarian salaries, perks, entitlements, additions, etc. People will closely study members  ways and how they react to this financial tsunami.

 

Next year's national election will surely reflect people's judgment on how well or how poorly their member has acted during this national emergency. Has a member led in ways to reduce expenses, gain revenue? Or has he continued to act like the man who jumped off the high building and was claiming up to the last second that everything was going great. If a member fails the test in this emergency, then why should  he be returned to office at all?