Tonga's shipping line in trouble
p. 55 · Read in the full issue
A recent debate in the Tonga Legislative Assembly showed how parlous were the finances of Tonga's Pacific Navigation Co Ltd. There was a loss of $BOO,OOO at the end of April, according to the Acting Minister of Finance, Dr Sione Tapa.
Mr 'Uliti Uata, Haapai people's representative, said the loss at the end of July would be $1.5 to $1.7 million.
The assembly passed a motion, moved by Mr Uata, asking that the line be reduced proportionately to Tonga's requirements, and stated that the loss it suffered "was too great, as to be detrimental to the Tonga economy". The motion also asked that the shipping line be returned to the control of the government.
Mr Uata asked Dr Tapa who would be responsible for paying the deficit as it increased. Dr Tapa said it was the responsibility of the shareholders, who included the Tonga Government and the Commodities Board.
The debate also revealed that there were no funds available to replace the Kao, the Aoniu or the Fangailifuka. Mr Uata said the monetary loss would be bearable if the line had fulfilled its services to the country.