for power

Trade Winds

Ocean currents for power

A POWER station using differing ocean temperatures is being investi gated for the Cook Islands. A consultant to the country’s ministry of planning and economic development said a 1.5 mega watt plant could be built for about NZ$32 million (US$2O million) and significantly reduce the country’s energy costs by lessening dependence on impor ted oil. The method under investigation

relies on the considerable differences in ocean temperatures at various depths, with the varying water sources being used to vaporise and condense ammonia, which in turn drives a turbine.

Kerosene prices leap Prices of kerosene in the Cook Islands have been hard hit by the Middle East crisis, and the fuel leapt by 50 per cent in price in just one week recently — from NZ7Oc a litre to NZ$l.O5 a litre. The South Pacific has been hit since oil prices rose after the invasion of Kuwait.

Samoa

Inflation worries in Apia Western Samoa’s inflation rate has leapt from 4.2 per cent to 16.1 per cent in a year, those being the respective figures for the September 1989 and September 1990 quarters. Pacific Commercial Bank said the main cause is the influx of large amounts of money for cyclone relief and its use to buy imported foods to replace crops lost in the storms. Remittances from Samoans abroad also increased by about 30 per cent. The general manager of the Bank of Western Samoa, Bob de Courtney, said the rate could go as high as 18 per cent higher than any other South Pacific island nation.

Papua New Guinea

Fisheries talks collapse Negotiations between Papua New Guinea and Japan over a fisheries agreement have been suspended for the fifth time. The problem is that the two countries can get nowhere near an agreement on catch payments. Papua New Guinea wanted six per cent of the value of each catch, but Japan offered only four per cent. The previous fishing agreement was terminated in 1987 in a battle over fees.

State spending to fall Government spending is falling, accord ing to the Bank of Papua New Guinea.

The central bank said expenditure would be down by 5.6 per cent in real terms over the three years. Bank governor Sir Henry Torobert said there had been a sharp decline in spending for goods and services which required clear prioritisation within government depart ments.

Inflation keeps rising Papua New Guinea’s inflation rate increased to 8.1 per cent in the third quarter of 1990, and is expected to reach double figures in the three months ending December. This compares with an average rate in 1989 of 4.4 per cent.

The major causes were higher food and transport costs resulting from the devalu ation of the kina.

Fiji

Fiji clinches Japan sale Fiji has acquired a third long term sugar contract with a Japanese company agreeing to take US$36 million worth of the product over the next three years.

The agreement will open the way for Fijian sugar to enter a market which it has not penetrated in any major way previously. Fiji’s two main sugar cus tomers are the European community and

Malaysia.

Tax free zone limits Tax free zones may not be needed in Fiji within 15 to 20 years if the economy

continues to become more stable, the Permanant Secretary for Trade and Commerce, Nelson Delailomaloma, said at a recent conference in Suva. In the meantime, policies which have allowed the garment industry to grow could mean that other types of industries could be attracted by tax-free status which Fiji allows for export-oriented industries.

NZ bid for Fiji TV TELEVISION New Zealand appears to be trying to get a jump on its competitors by offering Fiji a six-month free trial television service. The company is one of five on the short list compiled by the Fiji

Government to provide a national cover age once.a decision is made to introduce medium. The New Zealand offer is f° r trial to cover only Viti Levu, but TVNZ is reported to want an exclusive contract to follow the trial period, Changes to tax Fiji is to have a value added tax (vat) from July 1992, and it will constitute part th? government’s plan to change the taxation system. This was announced in

FS6I2 million Fiji budget by Finance

Minister Josevata Kamikamica. The new

tax will replace various indirect imposts, including customs and excise duties, hotel turnover tax and other miscel laneous taxes. But taxes on alcohol and tobacco products will remain.

The new vat of 10 per cent will apply to all local production and imports, and cover all businesses apart from a few such as farming, companies with a turnover of less than F$ 10,000 (US$7OOO) a year, domestic rents, non-processed fruits, veg etables, meat and public transport.

New Caledonia

Plans to build thermal station International tenders are to be called for a 24 megawatt oil-fired thermal power station to be built in New Caledonia.

The station is to be located in Nord province, about 300 km north of Nou mea. Two generators, each of 12 mw, are to be installed on a 12ha site, together with three tanks each capable of holding 10,000 tonnes of oil. The estimated cost of the project is US$57 million, and the work is due for completion in late 1992.

Tuvalu

Lagoon runway feasible Tuvalu’s government has received a preliminary study which shows that it is feasible to build a new runway on Funafuti incorporating a raised platform running into the island’s lagoon. The study, undertaken by two French avi ation experts from New Caledonia, was aimed at developing a plan for a new airport capable of taking Boeing 737 jets.

Tuvalu’s current airstrip is suitable only for prop or turbo-prop smaller airliners.

It is unlikely the government will make any decision on the proposal in the near future due to the enormous cost.

Micronesia

Aid for Marshalls fishery Fisheries resources in the Marshall Islands are to be assessed under an Asian Development Bank technical assistance grant of US$lOO,OOO. The money will be used to prepare the first phase of the fisheries development project, which is designed to meet the government’s devel opment goals to increase employment and incomes and reduce imports. The project will aim at providing improved fishing gear and vessels, infrastructure and marketing services with eventual expansion of private sector fishing.

More Guam air links Rapidly expanding air services through out Micronesia will grow still further now that Philippine Airlines has begun operating between Manila and Guam twice a week, using a 240-seater airbus 300. Meanwhile, Continental Air Micro nesia has started up its planned Guam- Seoul service. O