tape slows

EC red tape slows the flow

THE slow rate of dispersement of funds under Lome II and Lome 111 was a major discussion point during the fourth African, Caribbean and Pacific/European Community (ACP/EC) Joint Meeting in Suva on February 28. Pacific Island countries complained that they faced difficulty securing money to get projects running because of EC red tape.

EC representative and meeting co chairman, Frans Klinkenbergh, said this was largely because procedures were too complicated. He pointed out these were laid down in the Lome Convention negotiated by EC and AGP countries. An in-depth study was started in 1990 to find out which procedures caused the delay. A report will be presented to the joint EC/ACP ministers’ meeting in Jamaica in May.

The Suva meeting was attended at ministerial level by Fiji, Kiribati, Pa pua New Guinea, Solomon Islands, Tuvalu, Vanuatu and Western Samoa, and at official level by Tonga. The meeting was to consider a final regional package to be funded under Lome IV.

Under Lome IV which began last year, ECU3S million (US$42 million) has been made available to the eight AGP Pacific Group members for re gional projects.

The meeting agreed that the Lome IV Regional Programme should con centrate on Natural Resources and Environment comprising marine re sources, agriculture and forestry and the environment; Transport and Ser vices comprising air and maritime transport, tourism and trade; and Human Resource Development. The three sectors will receive 45 per cent, 35 per cent and 10 per cent of the ECU3S million respectively with a reserve of 10 per cent being retained for agreed projects outside the three sectors.

Officials from both sides meet again in three months to specify priorities.

According to Tuilaepa Sailele

Malielegaoi, Western Samoa’s Minister of Finance, there were about ECU 110 million worth of projects and a total budget of ECU3S million. Malielegaoi co-chaired the meeting with Klinkenbergh. Total funding for the Pacific countries under Lome IV dropped by about US$4 million from Lome 111. Klinkenbergh said a bit more had been given to the STABEX fund and a bit less to programmable aid. STABEX provides a back-up fund when industries like copra or forestry experience a drop in income. □