carriers suffer still

Trade Winds

Travellers pay more, carriers suffer still

AIR travellers and freight for warders in Papua New Guinea have now faced the second raise in fares this year, but this extra money may still not be enough to fend off substantial losses among the country’s carriers. The flag carrier, Air Niugini, now seems certain to postpone plans to open routes to Bangkok, Auckland and Nadi, and will lease off the second Airbus due for delivery this month.

As of October 25, the Price Controller approved a five per cent across the board increase in domestic fare and cargo rates to help the airlines absorb fuel cost hikes.

Substantial rises were allowed in August but that was not enough to keep the airlines out of trouble.

Just days before the latest increase was approved, Air Niugini went public with a warning that it could lose more than K 4 million on its domestic operations it was seeking a 10 per cent fare increase.

Air Niugini’s fuel cost since August have gone from 21 per cent to 29 per cent of its budget. Talair and Nationair have also indicated they are losing money. □

Tuvalu

Trust Fund in trouble FALLING values of investments, partly due to the Gulf crisis, have hit tuvalu’s trust fund as there is a doubt whether the fund will be making a distribution in the current financial year. The fund, totall ing about As 27 million (US$2O.9 mil lion), was established with contributions from the British, New Zealand and Australian governments. The money is managed by Westpac Banking Corpor ation in Sydney and the earnings are used to meet Tuvalu’s annual budget deficit.

Last year the fund paid out Asl.3 million.

Members of the Tuvalu Trust Fund advisory committee which includes local officials as well as representatives from the three original donor countries met recently in Funafuti to discuss options for meeting the national budget deficit in 1991. The meeting examined the spending plans for each government

department.

Beer made from honey SURPLUS honey from Tuvalu’s outer islands could be used for the production of beer. Samples of honey were sent to the Food Technology Department at Massey

University in New Zealand and turned into beer. Two 250 ml bottles of the end product have been sent for tasting to Tuvalu’s agricultural division, which pronounced the product to have a good taste.

Grant for hotel extension TAIWAN is to give Tuvalu US$l.6 million to carry out extensions to the government-owned Vaiaku Lagi Hotel on Funafuti. The hotel now has seven accommodation rooms, plus bar and restaurant.

Milkfish farming study RESEARCHERS from the Food and Agriculture Organisation (FAO) have been in Tuvalu to study the prospects for farming milkfish. FAO aquaculture specialist Hideyuki Tanaka said three islands visited Funafuti, Vaitupu and Niutao could possibly support such

projects.

Kiribati

OTC has a deal KIRIBATI’S government is to hold a 51 per cent interest in a new domestic and international telecommunications ven ture with Australia’s OTC International Ltd. Telekom Kiribati Ltd will hand over its services to the new company, Telecom Services of Kiribati Ltd. Under the joint venture agreement, all Kiri bati’s 33 islands (spread over more than three million square kilometres of ocean) will be linked by telecommunications services by the year 2000.

Bank’s record profit BANK of Kiribati Ltd reported a record profit of AsBoB,ooo (U 55630,200) for the 1989 year, an increase of 45 per cent on the previous year. The annual report said the result reflected the substantial returns received on the bank’s international investments and its foreign exchange dealings. Deposits remained static at A 528.5 million which, said the report, was considered a fair result given the amount of spending in preparation for the South Pacific Forum meeting on Tarawa in 1989.

The bank’s branch on Christmas (Kiritimati) island recorded a profit of A$ 10,000 after only two years of oper ations. The report said the branch regularly conducts agencies at other settlements on the Christmas group and these were slowly gaining acceptance.

Good growth was recorded with deposits, especially in the savings bank.

Aid for development bank LOANS and grants worth US$l.23 million have been made to the Develop ment Bank of Kiribati by the Asian Development Bank to help meet the increasing demand for development fi nance in the country. The money will be used to finance loans for agricultural, fisheries, trade, industry, services and transport as well as help boost activity in the outer islands.

Norfolk

New flights for tourism TOUGH times for Norfolk Island’s tourism business, brought about by the 1989 domestic pilots’ dispute in Austra lia, may now be over with the introduc tion of new services to the territory. Air New Zealand and Qantas have begun a direct service from Christchurch offering 400 seats per week. And Ansett NSW is now running seven services a week five from Sydney and two from Brisbane —made possible by the company’s pur chase of long-range F2B-4000 aircraft.

The frequency of the new services from the Australian mainland will mean more reliable mail and urgent freight deliver ies.

Samoa

Pago stages tourism recovery FIGURES released recently by the Pacific Area Travel Association show that American Aamoa’s tourism industry made an impressive recovery in the first quarter of 1990, recording a 15 per cent lift in arrivals. This compared with a drop of 14 per cent of the last quarter of 1989.

Apia seeks utilities study AMERICAN Samoa’s power authority has been asked to advise Western Samoa on combining its electricity, water and sewage systems under one operation.

Such a system has been successfully working in the US Territory for the past two years. Western samoa has been subject to severe power shortages, its

existing equipment problems aggravated

by the damage caused by Cyclone Ofa in February.

Pig industry boost for Guam IMPORTED prize bloodstock and a new processing plant will boost pig farming on Guam. The government is putting U 5525,000 of the cost of a processing plant to be located in Yigo. □