General Fono

1 Interim Funding Arrangement 2010/2011 3
2 The future of Shipping Services to Tokelau 3 – 5
3 Renewable Energy Project 5 – 6
4 Miss South Pacific Pageant 2010 6
5 Increase number of qualified teachers 6 – 7
6 Confirmation of Budget 2010/2011 7 – 8
7 Paper from the Department of Environment, Natural Resources,
& Economic
8 – 9
8 Outstanding Issues 9
9 Waste Management in Tokelau 9 – 10
10 Housing Scheme 10
11 Update on the ESA Review 10
12 Proposal for the establishment of new positions within the
Stastics Unit
13 Rates for stevedoring work on Sundays 11
14 Tokelau’s Scholarship Scheme Policy 11 – 12
15 Report of Council 12
16 Ongoing Issues 12
17 Report of the Board of Directors of Teletok 12 – 13
Appendix 1      -           Interim Funding Arrangement 2010/2011
Appendix 2      -           Allocation for Tautiti Tokelau at the Miss South Pacific Pageant 2010
Appendix 3      -           Revenue available for distribution
Appendix 4      -           Draft Aide Memoire as prepared by theReview Team
Appendix 5      -           Amendments to the Tokelau Scholarship Scheme Policy
Appendix 6      -           Report of the Board of Teletok
The General Fono considered a paper from the Office of the Administrator of Tokelau informing that the Minister for Foreign Affairs has approved the overall allocation (NZ$17.25m) and purpose of the funding from New Zealand for 2010/2011.
General Fono members expressed their appreciation of the approved assistance. In general discussion the General Fono: 
  1. agreedto the amount of NZ$17.25m and the purpose for the 2010/2011 funding allocation from New Zealand, as approved by the New Zealand Minister of Foreign Affairs;  [Appendix 1]
  1. agreedthat in the current year New Zealand and Tokelau will be looking to develop Joint Commitments for Development with Tokelau and that officials will present a draft to Council and Taupulega for consideration in due course.
The General Fono resolves as follows:
  1. On the Recommendation to have the MV Lady Naomi as the interim shipping solution to replace the MV Tokelau:
  1. appreciatesthe work and effort that has been put in by both the Governments of New Zealand and Tokelau and experts in the Maritime Industry;
  1. expressedgreat concerns with the recommendation noting the general state of the facilities of the MV Lady Naomi;
  1. furthermore expressedthat a new ship for Tokelau has always been Tokelau’s request to the Government of New Zealand;
  1. notingthat there is no other option for the short term shipping solution;
  1. agree to support the recommendation for the MV Lady Naomi and its immediate upgrade to accommodate Tokelau’s transportation needs as the short term solution;
  1. requeststhe Government of New Zealand to urgently work closely with Tokelau on procurement of a new ship as part of the total transport solution to be in place prior to the end of the interim solution term; and
  1. furthermore requeststhe Negotiation Team to strategically negotiate the interim shipping solution term.
The General Fono resolves as follows:
B.      On the recommendation to sell the MV Tokelau once the new replacement is finalized and that the proceeds and recurrent savings are used to assist fund Tokelalu’s short and long term transport solution:
  1. concernedwith the future safety and appropriateness of theMV Tokelau with its current needs and high maintenance costs;
  1. notingthat the safety and comfort of its travelling community is of utmost priority;
  1. agree to sell the MV Tokelau and that the proceeds and recurrent savings are used to assist fund Tokelau’s short and long term transport solution (total transport solution);
  1. requeststhe Government of New Zealand to clarify how inter-atoll needs including medical evacuations, emergency transport of fuel et cetera are met prior to the sale of the MV Tokelau;
  1. furthermore requestsclarity on the employment of the existing crew of the MV Tokelau and the young Tokelauans currently undertaking maritime training and work overseas;
6.       requests the Government of New Zealand to consider the opportunity for the Government of Tokelau using the MV Tokelau as an infrastructure to support its economic development under the National Strategic Plan.
The General Fono resolves as follows:

C.       On the recommendation to request the Government of New Zealand to continue working with Tokelau on developing an air service between Apia and Tokelau:

  1. notingthe benefits of an air service to Tokelalu’s development and encouraging Tokelauans overseas to travel frequently to Tokelau;
2.       support an air service for Tokelau as part of its total transport solution;
3.       requeststhat further information, including airstrip feasibility studies, be provided to the Taupulega on the float plane and airfield based option;
4.       encourage work to be conducted on the environment impact assessment (EIA) and likewise in regard to the affordability of the air service to the general community; and
5.       noted that further work or study on how the air service will happen, to be conducted in Tokelau and not New Zealand.
The General Fono was briefed regarding the progress of the Renewable Energy Project focusing on Solar Power. The General Fono highlighted the following: 
  • it is very important that, while we are still exploring the real costs of the project, the villages continue preparations to ensure immediate implementation on atoll once all external issues have been addressed; 
  • to explore other options of renewable energy e.g. thermal energy; 
  • Tokelau may not be able to sustain repayments of a loan from New Zealand as a funding arrangement.
The General Fono:
  1. notedthat 14 companies  responded to the Expression of Interest but only 8 companies were considered by the Committee; 
  1. noted that the estimated cost from these 8 companies ranged from $6m - $10m;         
  1. notedthat the next step is the tender process which will reveal the real costs of the Project; 
  1. noted  that the Department of Energy has asked the villages to prepare a site for the solar panels for the project; 
  1. notedthat while the Department will continue to explore other sources of renewable energy, solar power and coconut oil are the best options for Tokelau for the time being;   
  1. acknowledged the comment by the representative from New Zealand to note that discussions will be continued in Wellington to look at alternative ways to fund the project other than through a loan;     
  1. agreed in principle to moving forward on the Tokelau Renewable Energy Project pending the outcome of the discussions with the New Zealand Minister of Foreign Affairs and the General Fono;   
  1. agreed to the proposal to immediately employ a project engineer to lead the tender stage of the project.
The General Fono considered a proposal for the Tautiti Tokelau to represent Tokelau in the Miss South Pacific Pageant 2010. 
The General Fono:
  1. notedthe benefits for Tokelau should the Tautiti Tokelau attend this pageant;  
  1. notedthat the Tokelau Fatupaepae will provide the traditional wear and the gifts the Tautiti Tokelau will be taking with her to the pageant, as their contribution to the Tautiti Tokelau. 
  1. noted, that the issue of where NGOs fit within the overall government structure should be discussed and considered by the Constitution Committee in determining a recommendation to the General Fono;   
  1. requested that the Fatupaepae and their supporting officers recognise and acknowledge that communication be through the Taupulega;
  1. instructed the Office of the Council for the Ongoing Government to work together with the Fatupaepae, as a way forward, to develop a terms of reference  for ongoing work the Tautiti Tokelau should carry out; 
  1. agreed for the Tautiti Tokelau to attend the Miss South Pacific Pageant 2010;  
  1. agreedto allocate $32,280.00 as per the proposal in Appendix 2 for the Tautiti Tokelau participation at the Miss South Pacific pageant and for the Fatupaepae to decide who will be included in the Tautiti Tokelau entourage. 
The General Fono discussed the proposal for the development of a specific programme for increasing the number of qualified Tokelau teachers and to allocate funds for such. In recognizing the importance of education,
The General Fono: 
  1. notedthat the proposed allocation is only for this financial year; 
  1. agreedto establish a programme for teachers starting in 2011; 
  1. agreedto allocate $84,000 for this purpose separate from the $84,000 being requested under the Administrative Assistance; 
  1. agreedthat funding for this programme be continued for the next 2 consecutive financial years . 
  1. CONFIRMING BUDGET FOR  2010/2011 
Recognising that the Mid-Term budget review will be held in February 2011,
The General Fono:  
  1. noted that the Budget Revenue for 2010/2011 financial year is $13,698,000 [Appendix 3];    
  1. noted that Revenue available for distribution is $11,775,750 [Appendix 3];
  1. agreed to the allocated levels for the 2010-2011 financial year:
Budget Areas Financial Year
ATAFU 1,807 560
FAKAOFO 2,179 075
NUKUNONU 1,599 252
EDNRE 259,888
ENERGY 441,501
FINANCE 547,935
HEALTH 1,203,995
OCOG 1,158, 858
Crane/Transport 154,551
TOTAL $11,775,750
  1. agreed to the allocations for Administrative Assistance funding for the 2010 as follows: 
Capacity Building Initiatives
1.      Existing Education and Finance ATAs             375,000.00
TOTAL $375,000.00
Available for Allocation:  
2.    Atafu – Capacity building initiatives            50,000.00
3.     Fakaofo – Capacity building initiatives 91,000.00
4.     Nukunonu  - Capacity building initiatives          160,000.00
5.     Census 2011 (OCOG)            75,000.00
6.     Legal – government land conveyance (OCOG)           20,000.00
7.     Costing of TNSP  (OCOG)            30,000.00
8.     Teacher Training Programme (Education)           84,000.00
9.     Professional training for doctors and health staff (Health)           25,000.00
10.   Sustainable Development Advisor (EDNRE)     20,000.00
11.    Economic Statistician     20,000.00
12.   Public Sector Advisor 10,000.00
13. Constitutional Lawyer 50,000.00
14. Public Service Training 50,000.00
15. Public Health Officer 20,000.00
16. Asset Management 40,000.00
17. TeleTok 20,00.00
18. Project Engineer (TREP) 60,000.00
Sub-Total 825,000.00
TOTAL    $ 1,200,000.00
  1. noted, the opportunity is still open to departments and villages to make a proposal to the Department of Finance for fundings from Repairs and Maintenance (R&M) allocation of $250,000 for consideration during the Budget Review in February 2011.    
The Department of Environment, Natural Resources and Economic Development tabled a paper on the proposed new structure for the department with recommendations for new positions within the department and funding to implement their work plan. Based on the request of the Minister responsible, 
The General Fono:
  1. agreedto refer the paper to the three Taupulega for consideration before consideration in the next General Fono. 
Noting that these issues are amongst those that had been discussed a number of times and had been on the General Fono agenda for a while,
The General Fono:
  1. agreed  that the issue “Equal Representation to the General Fono” be referred to the Constitution Committee for deliberation and to make a recommendation to the General Fono;  
  1. agreed that the issue “Tokelau Alphabet and Written Language”  be referred to the Language Committee for a recommendation to the General Fono.   
Nukunonu requested that the Department of Environment, Natural Resources and Economic Development [the Department] be instructed to develop programmes to address the waste management in the villages.  
The General Fono:
  1. notedthat the Department had already negotiated with the Pacific Recycling and the company is now planning a  visit to Tokelau to determine the quantity, size and different types of waste on the islands;  
  1. instructedthe Department to provide to the next General Fono a report as to the status of assistance/support available for waste management;
  1. noted  that the Department will immediately facilitate containers for the villages; 
  1. noted that TALO Office will continue to work closely with the Samoa Custom Office in regards to the shipment of waste;   
  1. instructed the Department to work closely with the IDP to capitalise on shipping facilities (vessel and containers) being used for transportation of IDP supplies; 
  1. noted the announcement by the Minister that the Department will provide wheelie bins for the village as soon as possible. 
Noting the General Fono decision of June 2010 for Fakaofo to work closely with the Department of Finance to revise this paper and provide copies to the Taupulega for comments, 
The General Fono:  
  1. noted that the Department of Finance has not yet  provided a paper to assist the Taupulega in their discussions;   
  1. again instructed the Department of Finance to provide a paper to assist the Taupulega discussions;   
  1. agreed to give the opportunity to the Taupulega for comments before the next General Fono.   
Upon receiving an update on the ESA Review, 
The General Fono:
  1. noted the draft Aide Memoire prepared by theReview Team attached as Appendix 4 which summarises their key findings; 
  1. requested that the report be provided to the General Fono and Taupulega as soon as possible, for their consideration; 
  1. noted the statement by the New Zealand representative that a draft of the Economic Support Arrangement 2011/2012 – 2013/2014 will be provided to the February 2011 General Fono and will be based on lessons learnt from the review. 
The General Fono received a proposal for new positions to be added to the Tokelau Public Service establishment numbers including proposed level of salary.   
The General Fono:
  1. noted purpose of the paper;   
  1. noted the support from the SMT and Council on the proposed new positions within the Tokelau Statistics Unit; 
  1. agreedto the establishment of the following positions which will help strengthen and improve statistical services in Tokelau:
  1. Database Administrator
  2. Economic Statistician
  1. agreedto the levels of salary for the proposed positions
  1. notedthat these positions may be paid outside of the salary scale  if the required skills and capacity cannot be found in Tokelau. 
Noting the General Fono decision on June 2010 for the Department of Transport to prepare a paper to guide the discussions of the request from Nukunonu to review the rates for stevedoring work on Sundays,  
The General Fono:
  1. notedthat the Department of Transport has not yet prepared a paper and again instructed the Department to prepare the paper as soon as possible. 
Some delegates felt that the number of students attending schools abroad e.g. Australia and New Zealand should not be limited. That scholarships must meet the needs of Tokelau ie: to achieve the TNSP; scholarships awards must be aligned to the needs of Tokelau. 
The General Fono:
  1. notedthe support from the Department of Education for private students, because they will return to serve Tokelau;   
  1. notedthe views from the Taupulega had been discussed; 
  1. endorsed the revised Scholarship Scheme Policy; 
[The amendments to the scheme are attached in Appendix 5]
In accordance with the rules that Council must report to the General Fono on work and decisions made on behalf of the General Fono when the General Fono is not in session,
The General Fono:
  1. notedthe Report of Council.
[A copy of the report can be obtained from the General Fono Secretariat]
In accordance with the Standing Orders of the General Fono that no remit will be carried forward from one calendar year to another without express decision to that effect by the General Fono,
The General Fono: 
  1. agreedto carry forward the following remits to its 2011 agenda:  
  1. Review of Services in the Villages – (Nukunonu)
  2. Transfer of national services from Apia to Tokelau  – (Nukunonu)
The General Fono noted the report of the Board, which included the company’s financial report 2009/2010. The Board of Directors has resolved that internet services to homes will commence on January 2011. 

Purpose Amount (NZ$) Amount (NZ$)
Budget Support   $10.8m
Administrative Assistance   $1.2m
Repairs & Maintenance   $0.25m
  • Short Term Replacement for the MV Tokelau including refit
  • Ship to Shore
  • Shipping Audit Follow-up
TOTAL $17.25m

ESTIMATED COSTS (Miss Tokelau + Chaperone + Board Member/Pageant Coordinator + Assistant + Fatupaepae Representative)
3 x NZ$100.00 (Miss Tokelau + Chaperone + President)
In Apia:
Casual Meals & Incidental
3 weeks Apia enroute to PNG + 1 week wait for sailing to Tokelau – 21 days x 3 x WS$60.00
Accommodation 21 days x WS$45.00   2,835.00 1,648.00
5 only Airfares + Airport tax ($5200 x 5)
Preparations in Apia & Wardrobe
12 puletasi @ WS$200.00
7 evening wear (muumuu) @ WS$120.00
Accessories + talent + sarong
Traditional wear (contribution from the Fatupaepae of Tokelau)
Entry Fee
In Papua New Guinea (20-27/11 = 7 days) Accommodation US$120 x  2 rooms x 7 days
Casual meals – 5 x US$90 x 7 days
Entertainment + rental vehicle
Pageant Adviser to Tautiti Tokelau and Chaperone (2 weeks)
  3,000.00 1,744.00
TOTAL $32,280.00

2009-2010 Budget @
March 2010 GF
Suggested Revised  2010-2011 Budget Comments
NZAID Funding–Direct Budget Support 13,000,000 10,800,000 Funding allocations confirmed for Direct Budget Support
NZAID Funding – Allocated Administrative Assistance Funding 0 450,000 Funding allocations for current Advisors and Technical Assistance (ATAs)
Local Revenue Estimate (Refer Appendix 4) 3,500,000 2,698,000 Conservative allocation until level of EEZ fees is confirmed
TOTAL FUNDING 16,500,000 13,948,000 -
Less Depreciation Expense 350,000 250,000 Depreciation expense - builds up capital replacement funds
AVAILABLE FOR BUDGET PURPOSES 16,150,000 13,698,000 -
Trust Fund (50,000) (50,000) Standard allocation
Dry-dock of MV Tokelau (668,000) 0 n/a
Development Bank         (60,000) 0 n/a
Land Leases            (80,000) (80,000) Standard allocation
Old Age Pensions            (45,500) (45,000) Standard allocation
Honoraria for General Fono Delegates            (99,250) (99,250) Standard allocation
Motor Vehicles           (90,000) 0 n/a
Tokelau Sports - Mini Games in Cook Islands 2009             (80,000) 0 n/a
Bible Translation         (15,000) 0 n/a
Contribution to Village  Projects   (379,797)   0 n/a
Department of Health       (100,000) 0 n/a
Villages development       (400,000) 0 n/a
Tokelau Superannuation Fund Planning        (50,000) 0 n/a
Audit Provisions         (100,000)   0 n/a
Sub Total    (2,217,547) (274,250) -
Less : Global Provision for Prior year overspending  
Overspending in the 2009-2010 fy which requires funding to be allocated to.

ATTACHEMENT 4DRAFT AIDE MEMOIRE FOR SMT Apia and MFAT as prepared by the Review Team
The Economic Sector Arrangement (ESA) Review was commissioned by New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) to determine the effectiveness, efficiency and relevance of financial assistance provided to the Government of Tokelau by New Zealand between 2007 and 2010.    The purpose this draft aide memoire is to:
  • inform the Government of Tokelau’s Senior Management Team (SMT) and MFAT of our key findings;
  • provide an opportunity for the SMT and MFAT to comment on the findings and correct any misunderstandings we have. This may require provision of additional evidence.
Data for the review was collected from documents, from MFAT on 11 and 12 October (New Zealand dates) and then in Apia and Tokelau from 12 - 27 October 2010 (Tokelau dates) using group interviews, individual interviews, MSC and MSC selection panel, and observation of infrastructure and equipment.
We found support provided with funds from the New Zealand Aid Programme has been directed at areas relevant to the Draft National Strategic Development Plan (2007 – 2010).
While there was a lengthy review period leading to the development of the Plan, it does not appear that it was developed through a consultative process. Despite this, the priorities specified reflect those stated by stakeholders at a village and national level. With the exception of Nukunonu villages had not developed a Development Plan for this period. It was therefore not possible to compare relevance to needs specified at a village level.  There is no evidence to suggest that these priorities would differ to those in the Draft National Strategic Development Plan.
At an outputs and outcome level, the activities supported by funds from the New Zealand Aid Programme have generally been effective.
Support provided through the IDP was neither effective nor efficient. This appears to be largely due to MFAT processes.
Support provided through the Technical Assistance has been effective. However in some cases effectiveness and efficiency is likely to be improved had the support been based at a village rather than national level.
The support provided through Repairs and Maintenance has generally been effective. However, with the exception of Fakaofo, the focus appears to be still on new infrastructure rather than the repair, maintenance or renovation of existing assets. Constraints to effectiveness are primarily related to obtaining spare parts in a timely manner (Taupulega approving the funds for the parts and Support Services procuring and sending the part, or the correct part).  In many cases, equipment waiting for spare parts is left exposed which results in its rapid deterioration.
Support through the direct budget at a village level has resulted in improved outcomes in relation to:
  • Education. Over the last three years there is improved: number and percentage of qualified teachers; community participation in education; access to and participation in Year 12 and 13 education; quality of ECE and pedagogy. An improved   curriculum has been rolled out, however its full benefits have not been achieved. Significant further professional development is required to achieve this.
  • Information Technology and Communication (ITC). The introduction of internet has had the most significant positive impact on people’s lives. This impact can not be overstated. However the effectiveness of ITC in offices is mixed with some items inoperative or very ineffective due to poor maintenance. The skill levels of those maintaining IT equipment in the offices is generally inadequate to meet Tokelau’s needs.
  • Waste management. Waste disposal has improved over the last three years. The recycling program is less effective where the motivation is income generation rather than maintaining a clean environment. Disposal of dangerous goods (for example batteries) and large items (construction and white goods) still needs to be addressed.
  • Village development. People’s quality of life has been improved by the construction of houses, water tanks and septic tanks and relocation of pig sties. Seawalls have contained local erosion, but the design of some will exacerbate long term erosion.
  • Economic development. Traditional knowledge and skills have been strengthened in all villages. Initiatives to generate income have been trialed and a number of small businesses established (apparently successfully).  At a national level, opportunities appear to have been constrained by slow processes within New Zealand to address issues in relation to the EEZ, stamps and coins.
The effectiveness of support to health is more limited. Community perception is that service has improved. However, with the exception of a few localized issues (eg skin diseases) overall the health outcomes appear to have declined. The number of Registered Nurses has declined at most hospitals, there is no evidence to suggest public education programs have been effective, health indicators have declined, links to other sectors to address health needs have not been established. There is no understanding (even among many of the health professionals) of the seriousness of Tokelau’s situation in relation to non-communicable diseases (NCD) – in 2005 WHO 2005 found that over 33% of the population had type 2 diabetes and 100% of the population aged 25 to 64 were at risk of NCD due to lifestyle choices. Apart from the fact that TOKELUA is KILLING ITSELF, this represents a high cost to Tokelau in terms of medical care, med-evac, PRS and social cost, and to individuals. It must be recognized that this is not a Health Department issue alone, support and action from the General Fono and Taupulega is essential to change people’s diet and broader life-style choices.
The approach of undertaking labour activities through the Aumaga appears to have had positive outcomes in terms of providing direction, reducing people ‘sitting around’, and supporting the community culture. Funding of programs through the Fatupaepae was identified as supporting women to become self-reliant, and improving their contribution to their own and the broader village development. Where women were employed (rather than receiving a benefit) the same positive outcomes were identified. The two approaches are significantly different.
At the same time, full-time work has limited people’s ability to grow, gather and fish for local food thus increasing dependency on store bought food. With availability of power and improved communication, this has increased costs for the individual. The wage level is a growing issue, and any change will need to be balanced with productivity levels and the present guarantee of employment.
Efficiency of implementation appears satisfactory (except in relation to IDP) but can be improved in specific areas.
From an external perspective, improvements to efficiency can be made in a number of areas. However this would have significant impacts on the way society works and are a matter for the Taupulega to determine.
A number of ways in which the effectiveness and efficiency of village based construction could be improved were identified. Villages have been advised of these in discussions and the draft report provided to each.
There remains uncertainty in relation to compliance of construction with the Building Code. It appears that the villages have the capacity to recognize their skill deficits in construction and now contract qualified trades people to undertake these design and construction activities. Given the quality of the work and the robustness of the accounting systems, village management of works of the scale of those proposed in the IDP is likely to have been significantly more efficient than through the approach adopted.  
The cost of the PRS and medivac is a significant proportion of the health budget, limiting what is available for other aspects of health care. All these costs are carried at a national level. As a result, villages are not encouraged to address the cause of the problem. Consideration of some form of cost sharing may improve efficiency. Inefficiencies were observed through slow and confused decision making and two ships being sent to collect the patient on two occasions during the Review. It also appears there has been no review of whether med-evacs change patient outcomes, and at what point med-evacs represent a good expenditure of significant funds (we were advised approximately $50,000 per med-evac) in comparison to expenditure of these funds on other areas of the health budget.
It is likely that efficiency could be improved by relocating a number of the Department offices and staff from Apia to villages; improved coordination between departments within the national level, the village level and between the two levels; and reviewing the allocation of funds between the national and village levels.
Most Corporate Plans are overly ambitious. It is not possible to achieve what is identified with the available funds or staff. It also appears that some items have been included in Corporate Plans on the basis that they were proposed by an external consultant. Corporate Plans would provide improved direction if priorities were identified (using an evidence based decision making process) and a more realistic scope established.
Reports often focus at a task level, duplicate previous reports and are too long to be of value to the reader. Determining what reporting Tokelau SMT needs to effectively manage their resources and monitor implementation of Strategic, Corporate and Work Plans is likely to significantly improve effectiveness and efficiency.
Sustainability of benefits appears likely but can be improved.
While benefits appear sustainable, a greater focus on increasing and retaining skilled trades people and staff would improve sustainability. Available opportunities to upgrade trade skills are not maximized as they are rarely planned. The most common reasons skilled people are likely to leave appears to be opportunities for increased wages and improved education for children overseas.
Public financial management was found to be good enough.
In terms of public financial management we found that the:
  • Accounting system is good enough;
  • Local revenue control is good enough;
  • In-year reporting is good enough for leaders to make informed decisions and appropriate follow up;
  • Time allowed for budget preparation is insufficient to allow leadership to properly consider budget options.
There were a range of strategic issues in relation to this. These are:
  • Moving towards greater control of development budget spending is warranted on the basis of good enough PFM system that features relatively low development and fiduciary risks
  • Consideration of greater clarity on the nature of payments to work force and implementation of existing policy.
  • Encouraging greater awareness budget awareness of the budget.
  • Currently social and economic policies are often focused on construction of social housing: while this provides jobs, it isn’t sustainable. Consideration will be needed for longer term policies that support jobs and trade related economic growth (e.g.  tourism, fishing, charters, deep sea minerals and other use of tradable labour).
A more detailed summary of findings in relation to public financial management will be provided early next week.
Relations between New Zealand and Tokelau have deteriorated.
The benefits of flexibility of the 2007 - 2010 ESA were recognized. However there is a high level of concern about the relationship between Tokelau and the New Zealand government.  There is a strong feeling that New Zealand makes decisions with little consultation or understanding of the realities on the atolls. Commitments made are not seen as being kept and New Zealand is seen as not trusting Tokelau. The failure to achieve outcomes through the IDP, Ship-to-Shore Project and replacement of the MV Tokelau contributed to this. Communication styles and the failure of representatives of the current Government to visit Tokelau and see the realities have compounded it.
There was also concern that New Zealand does not appear to be attending to matters that require New Zealand’s action to enable Tokelau to progress its economic development. This specifically related to legislative change in relation to the EEZ and actions on Tokelau’s production of stamps and coins.
It is also important for Tokelau to consider how its own plans and internal processes can be improved. Critical self-reflection is important. At a village level, there often does not seem to be a sound understanding that all budgets are limited: if the budget is increased in one area it must be decreased in another. A number of expectations of people in villages appear unrealistic. As New Zealand has, and always will have, a limited budget, expectations of what New Zealand can fund must be realistic.
While outside the scope of this work, the importance of the transport and in particular, the provision of a good ship service, was raised by almost all groups with whom we spoke. Good transport is seen as essential to sustain a population on Tokelau.
The team recognizes that we have only been in Tokelau a short period of time and the experts on Tokelau are those there permanently. The findings of this report are not to be read as direction as to what Tokelau should, or should not do. It is important that the people of Tokelau, through the General Fono, Taupulega and broader discussions, consider the issues raised and determine how they can be addressed in a way appropriate to Tokelau. This should then be reflected in the relevant planning documents.

Government of Tokelau scholarships play an important role in addressing identified human resource needs by building capacity in key development sectors and contribute towards improving social and economic outcomes.
1.1          The Government of Tokelau Scholarships (GoTS) Scheme has been established to provide opportunities to citizens to undertake tertiary level study in the Pacific region or New Zealand.
1.2          The purpose of the scholarships scheme is to enhance the skills, training and knowledge of selected individuals and thereby build capacity to contribute to the sustainable development of key areas in Tokelau.
1.3          GoTS awardees are required to return to Tokelau on completion of their scholarships to contribute to the development of the country through positions in government, civil society or private sector organisations.
Scholarships are available for senior secondary education programme USP Foundation graduates on an annual basis for full-time undergraduate study at approved education institutions in the Pacific region;
                2.2          SHORT TERM TRAINING AWARDS (available from 2012)
Scholarships are available for targeted, short-term vocational and skills-based training in the Pacific region or New Zealand, up to a maximum of one year.  These awards can include work attachments, short courses or undergraduate Certificate or Diploma level technical training.  These awards are NOT available for part-time or academic tertiary study.  Applicants for these awards must be employed or recommended by their Taupulega.  Applications must be endorsed by an employer or Taupulega.
                2.3          REVERSE SCHOLARSHIPS (available from 2013)
Tokelau citizens who have undertaken tertiary studies in New Zealand as domestic students, i.e. on student loans, and upon graduation return to Tokelau and work for the public sector would have their loan written off over an agreed timeframe.
3.1.1      Government of Tokelau Scholarships (GoTS) are offered for full-time, tertiary level study at the undergraduate level (bachelor’s degree level or equivalent);
3.1.2      Government of Tokelau Scholarships (GoTS) are offered for full-time, tertiary level study at Diploma or Certificate level for Trades;
3.1.3      GoTS can only be applied to commence a new qualification and cannot be used to support a programme of study already started;
3.1.4      GoTS are offered primarily for study in an identified human resource development training priority.
3.2          RESIDENCY:
                To be eligible for a GoTS, applicants must
3.2.1      be a citizen of Tokelau
3.2.2      be residing in Tokelau, preferably for at least 2 years prior to application, except for employees of the Tokelau Public Service (or dependants of), currently posted outside of Tokelau;
3.2.3      be aged 17 years or over before the scholarship start date
3.3.1      Applicants must meet the pre-requisites for the proposed course of tertiary study for which they are applying for or awaiting external examination results to confirm this.
3.3.2      Applicants are required to provide documentation evidence with their application that they qualify for the course they intend to pursue under the Scholarship Scheme.
3.3.3      Applicants should not have been recipients of a GoTS in the 24 months preceding the scholarship start date
3.3.4      Applicants must be able to take up the scholarship in the academic year for which it is offered.
3.4.1      All GoTS awardees will be required to sign the Scholarship Agreement in which they agree to return to Tokelau on completion of their scholarships to contribute to her development through positions in government, civil society or private sector organisations for at least two years;
3.4.2      Scholarship awardees who are under the age of 21 when they commence their course of study are required to have a parent or guardian co-sign the Scholarship Agreement as guarantor.
3.4.3      Scholarship awardees who are married and under the age of 21 at the commencement of their course of study are not required to have a guarantor as stated in 2.4.2 above.
3.4.4      Scholarship awardees who do not return to Tokelau upon completion of their course of study will be required to pay sixty percent (60%) of the total amount paid for all scholarship costs.  The Department of Education will make arrangements for repayment of these costs.
3.4.5      Scholarship awardees who have their scholarships terminated as a result of not meeting the course requirements or contravene other regulations and who do not return to Tokelau will be required to pay sixty percent (60%) of the total amount paid for all scholarship costs.  The Department of Education will make arrangements for repayment of these costs.
All successful scholarship applicants will be required to have the necessary personal documents for travel and study, such as:
  • a current and valid passport
  • birth certificate
  • validated or original copy of results of previous academic study or similar documentation that states that they have the pre-requisites for the proposed course of study.
Applicants must meet the GoTS eligibility criteria.  Eligible applicants are then considered against selection criteria, based on the following:
4.1          The applicant has a strong academic background.  Applicants for postgraduate study must hold a recognised Bachelors degree of good standard;
4.2          The proposed study corresponds to a human resource capacity and development training priority identified in the Tokelau National Strategic Plan and Human Resource Capacity and Development Plan or agreed areas of priorities of national development
4.3          The opportunities that the applicant has had to enter into formal study situations
4.4          The applicant’s commitment to return to Tokelau as noted in 2.4 above.
Scholarships will be offered only for study at Tertiary Institutions that are accredited and offer qualifications that are recognized internationally.
5.1          Undergraduate study will be undertaken only at the internationally recognized Pacific region tertiary institutions such as the University of the South Pacific (USP) or Fiji Institute of Technology
5.2          Exceptions for undergraduate study to be undertaken at other tertiary institutions such as in New Zealand will be considered on a case-by-case situation.  The criteria to be used to assess such cases are:
  1. Academic performance and ability of candidate to complete the proposed course of study
  2. Availability of the proposed course of study at a Pacific region tertiary institution
  3. Relevance of the proposed course of study to the Tokelau National Strategic Plan and Human Resources Capacity and Development Plan or priorities for national development.
5.3          Post-graduate Scholarships will be made available in areas as identified in the Tokelau National Strategic Plan and Human Resources Capacity and Development Plan or priorities for national development.

TO:                         General Fono
FROM:                  Chairperson
                                Board of Directors for Teletok
DATE:                    03 November 2010
This paper is to inform you on key issues discussed during Board of Directors of Teletok meeting and also the financial report of Teletok.
Information regarding the financial report 2009/2010
Following is a summary of the financial report that has been prepared for the auditors and which the Board has noted:
  • surplus before depreciation and audit fees is $196,000 (2009: $118,000)
  • Net assets or Equity is $2,021,000
  • cashflow position of $295,000 is lower than previous year of $994,000 due primarily to cost of switching to DAMA and improvements currently underway
  • revenue has increased by $36,000 from last year (2009: $730,000) to $766,000
  • operating cost has reduced from $568,000 in 2009 to $408,000 in 2010
  • debtors has increased by $76,000 to $274,000 (2009: $198,000)
It was noted that this is the third year that the surplus is continuously in the range of $100,000 therefore the Board decided to allocate $50,000 to the Tokelau budget.
The Board also decided to make sure that debts – which had increased by 28% - are collected from debtors.
July – August 2010 Financial report
The Board:
  • noted the revenue for the two months is $111,693.92
  • noted that the expenditure stands at $36,542.82
  • noted that the surplus is $75,161.55
Some minor issues are not included in this report however they do not involve any major changes.

New Charges for Teletok resources
These are the new charges as approved by the Board:
  • $35 per month
  • $10 per 100MB
Telephone charges:
Destination Current New
National – peak time $0.80 $0.40
National – off peak $0.60 $0.20
New Zealand – landline $1.40 $1.00
New Zealand – mobile $1.61 $1.10
Samoa $1.50 $1.10
Australia – landline $1.60 $1.20
Australia – mobile $1.71 $1.31
USA $1.50 $1.15
Pacific and Others $3.00 $2.50
Village Consultations
Other work will continue in the villages in November to improve internet access. Training of Teletok staff will be done during December 2010 – January 2011, and consultation of the Board’s Strategic Plan will also be conducted during this period.
It is recommended that the General Fono:
  • note the paper and the information provided;
  • note the financial report is in surplus for Financial Year 2010 and the beginning of Financial Year 2011 is also looking promising;
  • note the contribution of $50,000 to the Tokelau Budget as agreed to by the Board;
  • note the new Teletok charges as approved by the Board;
  • note that work is continuing in the villages and the consultation of the Board’s Strategic Plan will start at the end of November towards January 2011.
¹No submission was received.