Rarotonga rorts

by Robin Bromby

A MEMBER OF the former Coalition Government in the Cook Islands claimed SNZ9IS a day in meal and incidental expenses during a visit to Sydney, according to

the country’s premier, Mr Geoffrey

Henry, in a recent Parliamentary speech broadcast over Radio Cook Is lands. The prime minister was ex plaining to tne House the problems laced after his Government took office

last February.

By August last year, he said, the budget deficit totalled $2.5 million, compared with $0.25 million when his Government had left office in Novem ber 1983. The high deficit run up by the Coalition had sparked a financial crisis for the Cook Islands: the over draft on the government bank account amounted to $1.17 million, on which 21 per cent interest was being charged on the amount over one million dol lars.

Mr Henry accused the former admi nistration of serious financial misman agement. Part of the problem had arisen from the over-estimation of re ceipts due from customs duty, tourist generated income and sundry govern ment trading activities. In customs re venue alone, the shortfall came to $776,000. Former Minister of Customs Norman George should have reviewed the estimates calculated by his own de partment, he said, “In particular, he

might have queried how a significant

increase in levy revenue could possibly be expected in light of he himself hav

ing successfully promoted an order in

council in 198/ reducing import levies

on numerous commonly imported

items such as building materials,” said Mr Henry. “It is, of course, irrelevant

that Mr Norman George began con struction of his own house around the same time.”

Mr Henry said the ultimate respon sibility lay with the former Prime Minister and Finance Minister, Dr Pupuke Robati, to have examined all

departmental plans before framing

the annual budget. Even when the cabinet was aware there was going to be a serious shortfall in excise receipts, it took no action to find replacement revenue such as an increase m the im port levy on petrol. He said that Mr George has also allowed many partial

or complete exemptions from import

levy.

Mr Henry then detailed the foreign travel of various members of the pre vious government. While the customs crisis was coming to a head, he said, Mr George was at Expo in Brisbane and then at a Commonwealth Par liamentary Association Conference, while Prime Minister Robati visited Tonga, spent 17 days at the Olympics in Seoul and then time in Australia for the bicentennial celebrations.

“Major areas of growth in expendi

ture were personnel and overseas travel,” said Mr Henry. It was in these areas that integrity crumbled in the lace of greed. Just before the last elec tions, hiring of wage workers blew out the Government’s payroll $278,000 above the budget estimate, with hiring on some islands resulting in as many as 39 per cent of the adults being on

the public payroll. “Investigation has

revealed that the majority of such workers were collecting their wages for little or no effort,” says Mr Henry.

Since his Government came to power, some wage workers on the outer is lands had been laid off.

He then detailed travel expenses of ministers of the Robati Government.

One minister and his wife, as part of a trip that included Manila, Cyprus and Berlin, claimed $5191 in meal allowances and incidental expenses for five nights’ stay in Hawaii. This minis ter claimed an additional $lOOO in en tertainment allowance.

The Minister of Customs, Mr

George, stayed at the Park Royal

Hotel in Auckland for one night — his room cost $250, meals and incidentals another $375. “In Paris, the minister was accommodated at his instructions at one of the more exclusive hotels.

The tariff for his double room was $5OO per night. The three nights he stayed at the hotel he received $1875 for meals and incidentals, or $625 per day,” said Mr Henry. “No doubt cav iar and champagne [were] more his

style by now. □

PM Henry - paying Robati's bills.