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PM defends credibility of 2026 Budget, rejects ‘alarmist’ debt claims

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BY NED GAGAHE

Prime Minister Jeremiah Manele has mounted a strong defence of the 2026 Appropriation Bill, rejecting opposition arguments that the government is driving the country toward fiscal danger, and insisting the budget is both credible and grounded in sound economic analysis.

Speaking in Parliament during the second reading of the bill yesterday, the Prime Minister said critics were “bordering on misinforming” the public by portraying the 2026 budget as risky, despite clear evidence the government is strengthening its fiscal position.

He said the deficit would fall sharply next year—from this year’s $1.1 billion (7.5% of GDP) to $548 million (3.5% of GDP)—a deliberate move under GNUT’s medium-term strategy.

“Contrary to the views advanced by some colleagues from the other side, the budget before us is credible,” the Prime Minister stressed. “It is based on sound analysis of both domestic and international contexts.”

Manele dismissed claims that rising debt would burden the country, pointing instead to strict borrowing controls under the Public Finance Management Act (PFMA).

He highlighted that all 2026 borrowing will be for development and infrastructure, not for covering recurrent spending, saying domestic revenue is projected to exceed recurrent expenditure by $96 million next year.

“This clearly shows our recurrent budget is fully supported by domestic revenue, reducing exposure to cash flow pressures,” he said.

The Prime Minister also pointed to the latest IMF Debt Sustainability Analysis, which shows the overall risk of debt distress remains moderate, while the risk of external debt has improved to low—a significant upgrade from last year.

“We are not reckless. We have been diligent right through the preparation of this budget,” he said.

Manele criticised what he described as political rhetoric over inflation, saying opponents were misleading the public by claiming projected inflation of 3.5%–4% in 2026 would make life harder.

“From 2022 to 2024, inflation hovered between 5% to 6%,” he said. “This government is working earnestly to make life easier for our people by bringing it down.”

The Prime Minister said the budget’s agriculture investments, particularly in export-oriented programmes and food security, were designed to support farmers, reduce rice imports and strengthen household purchasing power.

He highlighted nearly US$30 million worth of agriculture and food security support being channelled through IFAD, FAO, UNICEF and Japan.

Manele concluded by calling the budget a disciplined and credible plan that balances ambition with affordability. He urged the House to support the bill and allow government to continue steering the country toward economic stability and growth.

The 2026 Appropriation Bill seeks to authorise $5.6 billion in spending for the coming financial year.

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SJLA faces mounting criticisms

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BY BEN BILUA
Gizo

The San Jorge Landowners Association (SJLA) is facing mounting criticism amid growing allegations of corruption and lack of transparency in its dealings with a mining company operating at San Jorge Island.

A number of landowners have spoken out in recent weeks, expressing disappointment over how the association has been operating and questioning whether it genuinely represents the interests of resource owners.

Last month, outspoken landowner Allan Tavake claimed that many landowners had been sceptical of Far East Mining Company Limited and the association from the very beginning of the engagement process.

Tavake alleged that most decisions reached between the company and the association did not reflect the views of the actual landowners but were instead pushed forward by the association’s leadership.

He further warned that unresolved issues between landowners and the company could potentially threaten the mining project.

This week, fresh questions were raised on the Association’s Facebook page regarding several payments allegedly received from the mining company.

Among the concerns was a SBD200,000 payment for damage and compensation.

The post called for clarification on how the money was spent and who the rightful beneficiaries were, in line with the tenements marked for mining operations.

Other payments also came under scrutiny, including a SBD10,000 payment linked to the SARA agreement and a SBD40,000 withdrawal from the Association’s bank account. In addition, the public questioned a SBD5,000 assistance payment made to certain families.

Responding to the allegations, SJLA Secretary John Kabu welcomed the criticisms, saying they were important for promoting transparency and accountability.

Kabu explained that the SBD200,000 compensation was paid to the G7 land block, where the main concentration of mining and prospecting activities has taken place.

He said the payment was agreed upon and would be supported by a damage assessment report to be made available for public scrutiny.

He said the SBD10,000 payment was accepted in good faith as a token of appreciation for the negotiation and signing of the SARA and was not a bribe.

Meanwhile, the SBD40,000 withdrawal by the Treasurer is currently under investigation, with further clarification promised once the review is completed.

The SBD5,000 assistance paid to certain families is also under review due to concerns about fairness.

“We, the Executive, were entrusted to act in the best interests of our people. That trust is not taken lightly. “Transparency and accountability remain our guiding principles, and we will provide full clarifications as promised,” Kabu said.

He assured landowners that all outstanding concerns would be addressed with facts and supporting evidence.

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Tourism Bounces Back

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  • 12% growth in visitors signals post-COVID rebound as Solomon Islands targets 100,000 arrivals by 2035

BY SAMIE WAIKORI

The country’s tourism industry is gaining strong momentum as visitor arrivals continue to rise, signalling a solid recovery from the impacts of COVID-19 and renewed confidence across the sector.

Minister for Culture and Tourism Choylin Yim Douglas, speaking during Wednesday’s debate on the 2026 Appropriation Bill 2025, revealed that visitor arrivals for the third quarter of 2025 increased by 12.1% compared to the same period in 2024.

She said the upward trend puts Solomon Islands on track to reach pre-COVID levels of 30,000 visitors by the end of this year, adding that long-term projections aim much higher.

“Our overarching goal is to reach 100,000 visitor arrivals by 2035,” the Minister said. “To achieve this, we will require consistent annual growth of 11% to 15%, and based on current development activities and strong government backing, we are confident this target is achievable.”

Minister Douglas highlighted that tourism growth is strongly tied to ongoing infrastructure improvements, including upgrades to domestic and international airports which will boost connectivity, accessibility and safety for travellers.

She pointed to a string of new hotel developments and expansions in Honiara, Western, Central and Makira provinces, as well as product developments such as the Bloody Ridge National Heritage and Historical Park.

The reopening of international markets—particularly China, improvements in visa processing and the upcoming Henderson International Airport extension—are expected to drive greater visitor flows. The airport extension will pave the way for future direct flights between China and Solomon Islands.

The Minister revealed that visitor spending has climbed significantly.

The 2024 Visitor Survey shows each tourist spent an average of US$3,611 per trip, a 9.7% increase from 2023.

“With current arrivals, this translates to about SBD $800 million circulating annually in our economy,” she said.

She added that as the country expands its tourism products and experiences, the aim is to increase both visitor stay duration and daily spending—key drivers towards building a billion-dollar tourism industry by 2035.

“This will be a sustainable, inclusive and non-extractive sector that supports true economic diversification,” she told Parliament.

Minister Douglas also applauded the GNUT Government for significantly increasing the Ministry’s budget this year—the largest ever allocation for Culture and Tourism.

She said more than 75% of the Ministry’s funds were invested directly into the private sector, with 30 local tourism operators benefiting through various support programmes.

As a result, the country is expecting to add over 300 new international-standard beds to its National Room Inventory, which currently stands at 4,385 beds.

“These investments underscore the importance of empowering local Solomon Islanders to take ownership of the tourism industry,” she said.

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Principal Mepobu warns students against rising distractions

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BY NED GAGAHE

Principal of St Mary Tanagai Community High School, James Mepobu, has warned students over the growing distractions affecting their education, urging them to stay focused and disciplined as they move into the new academic year.

Speaking during the school’s 2025 Graduation and Prize-Giving Ceremony on Friday 28 November 2025, Mepobu said many young people are losing sight of their goals because of poor choices and unhealthy habits.

He reminded students that education is “a journey, not a destination,” and challenged them to take their learning seriously.

Mepobu pointed out four major distractions—mobile phones, drugs and alcohol, romantic relationships, and lack of discipline—as key factors derailing student performance.

“Mobile phones are useful tools, but excessive use destroys your focus and relationships,” he said.

“Drugs and alcohol will ruin your health. Romantic relationships can be major distractions. Prioritise your education.”

He also urged students not to treat school as a place to “pass time,” saying education is a precious investment that requires commitment and sacrifice.

Turning to parents, Mepobu made a firm appeal for stronger support, noting the increasing trend of students coming to school with mobile phones while lacking essential school items.

“Parent contribution fees must be paid on time. Requirements must be provided. Let’s work together to set things right,” he stressed.

Mepobu also paid tribute to his teachers for their dedication, teamwork and hard work throughout the year, acknowledging their role in shaping the academic and moral growth of students.

Reaffirming the school’s Catholic foundation, he said Tanagai CHS strives to nurture both academic excellence and spiritual strength, guided by the motto “Education for Life.”

He encouraged the graduating students to lean on their faith as they step into the future.

“Life will test your convictions. In those moments, trust in God—He will guide your steps,” he said.

Mepobu urged graduates to use their knowledge to serve their families, communities and the nation, saying their achievements carry greater meaning when shared with others.

The ceremony brought together church leaders, education officials, parents, guardians and the wider community, celebrating under this year’s theme: “Together We Achieve the Best.”

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We don’t want Noro to be like Honiara: Totu

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BY BEN BILUA
Gizo

THE Clerk of Noro says all infrastructure development within the town will follow proper planning standards to ensure orderly growth and to avoid unplanned expansion similar to that experienced in Honiara.

Gavin Totu revealed that a Town Planning Scheme has already been forwarded to the Ministry of Lands and Housing and the Ministry of Home Affairs for further consideration and approval.

He explained that the Planning Scheme will guide the future expansion of Noro Town in an organized and sustainable manner.

“This Planning Scheme outlines the future development of Noro Town. It clearly identifies where roads, buildings and recreation areas will be located,” Totu said.

According to Totu, Noro is a rapidly growing town and it is timely to establish a proper town plan to effectively administer incoming developments.

He explained that good town plan is essential to support business growth by allowing the smooth movement of goods and services.

Totu said buildings should be constructed according to a clear town plan that separates residential, commercial and industrial areas.

“We don’t want Noro to be like Honiara,” he stated.

Totu highlights that a well-planned town is not just about physical development, but also about creating a healthy, safe and sustainable future for everyone.

He emphasized that a well-planned town can grow in an organized way that benefits both present and future generations.

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ROAD BOARD REVIVED

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  • Gov’t strengthens Road Transport Board to tackle traffic chaos, improve road safety

The Government has officially revived and strengthened the long-dormant Road Transport Board (RTB), signaling a major push to address Honiara’s worsening traffic congestion and improve road safety nationwide.

The RTB originally established in 2009 under the amended Road Transport Act—has been inactive for years due to a lack of dedicated funding, a statement from MID said.

But under the leadership of Minister for Infrastructure Development (MID), Ricky Fuo’o, the board is now being rebuilt, resourced and prepared to enforce long-neglected road transport regulations.

Last week, the RTB unveiled its new official logo, following a nationwide design competition.

New official logo

Local graphic designer David Kabulanga was awarded $10,000 for creating the winning design, a circular seal featuring a road lined with a yellow dashed marker and five white stars symbolising the Southern Cross, reflecting both national identity and the board’s regulatory mandate.

The logo has already been mounted on six new patrol vehicles, fully fitted with sirens and decals through support from the Australian Government. The fleet is now awaiting operational deployment.

A delighted Director of the Ministry’s Land Transport Management Services Division (LTMSD), who is also the board’s acting secretary, Leslie Nate, said given the renewed support, this board will be up and running to carry forward its mandated duties.

The board’s composition: Permanent Secretary to the Ministry responsible for transport (MID) as the chairperson, Clerk to the Honiara City Council (HCC), Royal Solomon Islands Police Force (RSIPF) Commissioner or a nominee, Permanent Secretary of the Ministry of Provincial Government and Institutional Strengthening (MPGIS) or a nominee, Permanent Secretary for the Ministry responsible for Commerce or a nominee, Inland Revenue Division representative, Solomon Islands Chamber of Commerce and Industry, and Director of LTMSD.

Mr. Nate explained that two other members are representatives of Honiara’s taxi and bus association.

He called on these two bodies to organize themselves to choose two representatives to be part of the board.

”There will be reforms and reviews going forward; therefore, the need for these two representatives is important, especially since new infringement notices will come into force next year.

The director further outlined that they will be rolling out their awareness activities soon.

“There are ongoing consultations with relative stakeholders for the formation of a task force, which will be comprised of police officers, MID officers, and Honiara City Council law enforcement officers to help conduct patrols and control our daily traffic.

“Uniforms and other supporting equipment will be sourced soon to enable effective implementation of this board,” Mr. Nate said.

MID Minister Fuo’o, on December 2, 2025 parliament sitting on the 2026 Appropriation Bill 2025, also spelled out RTB’s role in addressing some of the challenges facing the main road network, such as traffic congestion, bus stops, road signage, parking, and enforcing other traffic regulations. 

Again, this board is responsible for formulating, implementing, monitoring, and reviewing policies related to road transport, in conjunction with the ministry’s functions of developing national transport policy. This includes overseeing taxi and bus fares, routes, and the management of road signage and markings. It works closely with the ministry’s vehicle inspector, the police traffic department, and the Inland Revenue Division. Furthermore, this board has the authority to initiate and conduct prosecutions for offenses under the Act, its regulations, or the Highway Code, subject to the directives of the Director of Public Prosecutions.

Kuku cautions government on rising debt

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BY SAMIE WAIKORI

Member of Parliament for North New Georgia, John Dean Kuku, has cautioned the Government for National Unity and Transformation (GNUT) over the country’s growing reliance on borrowing.

Speaking in Parliament this week, Kuku warned that persistent borrowing is undermining the country’s fiscal stability, reflected in recurring budget deficits.

“The debt is rising. Debt stock is already around $4.2 billion as of October 2025, about 30 percent higher than the previous year.

The government plans to borrow up to $1 billion more in 2026, including $300 million domestically and $700 million externally,” he said.

Kuku noted that although the debt-to-GDP ratio remains below the 35 percent benchmark, the overall trend is worrying.

He highlighted repeated deficits, expanding borrowings, and continued dependence on donor support as factors that contradict the government’s narrative of fiscal stability.

“We must be honest. We have lived beyond our means for many years. We have run deficits almost every year since 2016.

“We have used donor support funds and loans to mask the true scale of our fiscal problems. This budget does not fundamentally change that pattern,” he said.

The MP also referred to comments made by the Minister of Finance and Treasury regarding the potential of the mineral sector.

While he acknowledged the government’s commitment to the Extractive Industries Transparency Initiative (EITI) and the planned establishment of a mineral resource laboratory to verify content and pricing, he described these measures as long overdue.

Kuku further welcomed GNUT’s intention to create a sovereign wealth fund to ensure that revenue from non-renewable resources benefits future generations. He noted, however, that the proposal currently lacks detail.

“We continue to see examples of poor governance in existing mining operations, including weak enforcement, unresolved community grievances, and questions about the valuation of exports.

“Without strong institutions, it is better to leave minerals in the ground than to dig them up only to benefit a few and leave the environment and communities worse off,” he said.

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Tanagai CHS to offer Form 6 Science from 2026

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BY NED GAGAHE

St Mary Tanagai Community High School will expand its senior secondary program to include Form 6 Science starting in the 2026 academic year, giving students greater opportunities to pursue advanced studies.

The announcement was made by Mr Timothy Ngele, Chief Executive Officer of the Guadalcanal Provincial Education Authority (GPEA), during the school’s Graduation and Prize-Giving Ceremony on Friday, 28 November 2025.

“Looking ahead, the Ministry of Education and Human Resources Development has approved plans to establish Form 6 Science next year.

“St Mary Tanagai Community High School will offer this program, providing students with more opportunities to advance academically,” Mr Ngele said.

He added that the provincial government is also directing education providers to identify a suitable school for the first Form 7 in Guadalcanal Province.

The school currently provides education from Form 1 to Form 6, having introduced its first Form 6 Arts program in 2019.

Chairman of the School Board, Daniel Donua, said the introduction of Form 6 Science represents a major milestone for the school, opening pathways for students to access tertiary education.

Mr Donua also shared a brief history of the school.

Established in 1948 by Marist Missionaries, the school was relocated in 1970 to a new site about two kilometres west of Tanagai and renamed St Mary Marara School.

It hosted the Royal Visit of Her Majesty the late Queen Elizabeth II in early 1970.

In 1980, the school moved back to its original Tanagai site and retained the St Mary Marara name until 2023, when it was updated to St Mary Tanagai to reflect its current location.

The announcement of Form 6 Science adds to the school’s growing academic offerings and reinforces its commitment to providing quality education to students in Guadalcanal Province.

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Vella Oil Palm Project expected to create up to 5,000 jobs

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BY BEN BILUA
Gizo

THE proposed oil palm development on Reresare land in Vella, Western Province, is expected to employ up to 5,000 people once fully operational, stakeholders were told during the first formal consultation held last week.

The milestone meeting brought together chiefs, landowners and community representatives to discuss the initial concept of the project and its potential impact on livelihoods, infrastructure and economic growth.

The employment projection was received with optimism, with many attendees describing the project as one of the biggest economic opportunities ever proposed for the island.

Chiefs of Vella publicly welcomed the proposed oil palm project, citing its importance not only for landowning tribes but also for surrounding communities, the province and the country as a whole.

Chief Freedom Tozaka who is also the Ward Member of Ward 100 said chiefs said the large-scale employment would significantly reduce unemployment among youths and create income opportunities for families who currently rely mainly on subsistence farming and small-scale cash crops.

He noted that beyond direct employment, the project is expected to stimulate growth in local businesses, transport services, food supply, accommodation and other support industries.

Tozaka added that improved infrastructure such as roads, wharves and utilities would benefit both the project and the wider public.

However, he stressed the importance of proper consultation, transparency and fair benefit-sharing arrangements moving forward.

Island Sun understand that the consultation last week marked the first step in a broader engagement process, with more meetings expected to be held with landowners and stakeholders in the coming weeks.

As discussions continue, expectations remain high that the oil palm development could become a major driver of economic transformation for Vella and Western Province.

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Labour Mobility program missing from 2026 Budget: Kuku

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BY SAMIE WAIKORI

The Member of Parliament for North New Georgia and acting Opposition Leader, John Dean Kuku, has raised serious concerns over the absence of any mention of the Labour Mobility program in the 2026 national budget.

Speaking during the parliamentary debate on Monday, MP Kuku highlighted the critical role the program plays in supporting Solomon Islanders’ livelihoods and generating foreign exchange.

Thousands of workers are engaged in Australia and New Zealand, sending remittances home to pay school fees, support families, and grow small businesses.

“Yet, in the 2026 budget speech, the Minister for Finance is silent on this area,” Kuku said.

“There are no numbers, no strategy, no budget support for training, pre-departure preparation, financial literacy, or integration of workers when they return. There is no plan to negotiate lower remittance costs or better conditions on accommodation and travel. This is a serious omission.”

He warned that labour mobility is not merely a foreign affairs issue, but a core part of the country’s economic and social strategy.

“If we give less attention to this important scheme, it may end up as modern slavery,” he cautioned.

MP Kuku urged the government to strengthen the program and provide the necessary budget support to ensure it continues to benefit Solomon Islanders and contribute to national development.

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