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FLOAT ON $4B

Written by
Eddie Osifelo
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-Government promises to help local businesses

-Electricity cost down, May

By EDDIE OSIFELO

LOCAL businesses will receive tax incentives from Government to remain afloat during the coronavirus pandemic.

Minister of Finance and Treasury, Harry Kuma revealed this when he tabled the $4 billion budget in Parliament yesterday.

He said Business Incentives are as follows:

1.            Government will not lift but continue with the current tax incentive relief measures for the tourism sector.

2.            Government will continue to fund the State Owned Enterprises Community Service Obligations in 2021.

3.            Government will also continue the grant/subsidy programme for both copra and cocoa industry in 2021 to help in the cost of freight and prices.

4.            Government will also provide special incentives for the NONI industry and local farmers in 2021.

5.            Finally, the government has completed the independent review of electricity tariff.

Kuma said based on this independent review, all Solomon Power tariff rates have been reduced, and will be effective as of May 1, 2021.

These include;

1.            Domestic or household customers are likely to see a reduction of 22 percent,

2.            Commercial customers are expected to see a decrease of around 27 percent, and

3.            Industrial customers are expected to see a fall of five percent.

He said the government expects an overall reduction averaging by 18 percent.

“SIEA will provide the details of the reduced rates in the coming weeks before they are implemented,” he said.

Furthermore, Kuma said the Non- Tax Revenue collection for 2020 showed that despite the impacts of the COVIO-19, there is potential to improve further in this area in 2021.  

He said Ministries collecting non-tax revenue need to seriously look into ways to improve and seal off loopholes to collect this much-needed revenue to finance services and boost the fiscal spending to stimulate the domestic economy.

Debate continues today.

Top Down – gov’t introduces new approach to $4b budget

Written by
Eddie Osifelo
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0

By EDDIE OSIFELO

THE Government has introduced a ‘top down’ approach in this year’s $4 billion budget.

Minister of Finance and Treasury, Harry Kuma told Parliament yesterday the 2021 budget process taken by the government was slightly different from the previous years’ budget preparations.

The theme of this year’s budget is “Towards A Path to Economic Recovery: Advancing   Growth     and     Service   Delivery   through    Better Partnerships”.

He said in 2021, the government decided to guide the development of the budget from a top down approach.

“In times of hardship, it is crucial that all government ministries adhere to government policies and not do their own usual business.

“As you would recall, the Government has decided to delay the 2021 budget preparation late last year to ensure government has sufficient time to revise and develop its policy priorities along its Policy Redirection mandate for 2021 and beyond,” he said.

Furthermore, Kuma said many have questioned the rationale for the current government’s Policy Redirection.

He said anyone who questions governments Policy Redirection initiative must be blind to what covid-19 has done to the global economy, and to us in 2020.  

“As I said earlier, the Solomon Islands economy had suffered tremendously because of covid-19.  

“Its negative impacts are real and must be addressed,” he said.

Kuma said Government’s Policy Redirection is to prioritise budget spending on specific targeted objectives in all sectors, with specific focus on the productive and resource sectors.  

He said the aim is to support the economy in response to negative impacts of covid-19, while maintaining a continued long-term focus on developing Solomon Islands into an economically strong and vibrant nation and advance the livelihood of our people.

“Government had decided to redirect its policy after thoroughly reflecting on our past drawbacks and using this experience to set the basis for future growth and further development in our country.

“Actual government spending on investment projects in both the productive and resource sectors had drastically declined over the last three years,” he said.

“For example, in 2018, government spent $557.5 million on investment projects in both the productive and resource sectors.

“This further declined to $412.5 million in 2019 and to $355.5 million in 2020,” he said.

Kuma said this downward trend is a concern to the government.

“Both the productive and resource sectors are important pillars of the economy. 

“If Solomon Islands economy is to grow and provide jobs for the growing population, then adequate financial resources must be allocated to both the productive and resource sectors,” he said.  

Kuma said this explains why government has redirected resources and increase budget allocations to both sectors to $580.2 million in 2021.

He said in this trying time, it is very important that our limited financial resources be prioritised and only focus on economic activities that would provide the highest socio-economic benefits to our people.

Only less than 3,000 people jabbed so far

Written by
Jennifer Kusapa
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BY JENNIFER KUSAPA

As of yesterday, the pilot covid-19 vaccination programme is still to reach halfway, with just over a week to go for Honiara.

Only 2,651 have been jabbed, said prime minister Manasseh Sogavare in his nationwide address.

Seven thousand doses have been allocated to be administered in Honiara, in the first phase of the roll-out programme. The second phase will be carried out in the border, with 17,000 doses put aside for this.

Government last week, after a disappointing low turnout by frontliners to be jabbed, said it has put two weeks for the vaccination roll-out in Honiara to be completed.

This would put just over three weeks for the vaccination programme to be done in Honiara.

Addressing the nation yesterday, Mr Sogavare stressed the urgency of having frontliners vaccinated according to schedule.

“I encourage the remaining front-liners to please go and take your covid-19 vaccines this week,” PM Sogavare said.

Sogavare also that health teams in Western, Choiseul, and Malaita Outer Islands have already commenced awareness meetings in all three provinces.

A team from the Ministry of Health will deploy this week to jointly conduct further training for vaccination teams in the Western and Choiseul provinces in the first instance.

“It is our hope that COVID-19 vaccination will start rolling out in Western Province as early as next Monday, April 12, 2021 to be followed closely by the roll out in Choiseul province and then Malaita outer Islands.

“A total of 17,000 does of the AstraZeneca vaccine is being deployed to the border zone to vaccinate our communities along the emergency zone at the western border.

“As from Monday, April 12 people over 40 years of age who have co-morbidities or existing diseases such as diabetes, high blood pressure or asthma etc, to present themselves to the Central Field hospital with your medical records for your first dose of COVID-19 vaccine.

“If you are over 40 years old and are healthy and have no other existing disease such a diabetes, or high blood pressure of asthma etc, please do not come at this stage. We will ensure you get vaccinated in future roll-out phases of the vaccination programme” Sogavare added.

We need leaders who are not afraid: Kuma

Written by
Eddie Osifelo
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0
Minister of Finance and Treasury Harry Kuma

By EDDIE OSIFELO

SOLOMON Islands development challenges since Independence in 1978 offers two lessons.

Minister of Finance and Treasury, Harry Kuma stated this when he delivered the $4 billion budget in Parliament yesterday.

He said first, if Solomon Islands is to grow and develop into a society that is economically vibrant, sustainable and prosperous, then “we must ensure there is political and economic stability, and strong ethical leadership. 

“We need leaders who are not afraid to ‘DO THE RIGHT THING’ even in the midst of severe crisis and mounting difficulties,” he said.

Kuma said second, is that the true wealth of this country does not lie in monetary values and material goods alone.

He said “the true wealth of this country is our people; the very people we represent in this Honourable House.

“Our people’s possessions such as the natural environment, land, sea, culture, religious beliefs, and ethnic diversity are also part of our wealth.

“The DCGA government policies and development strategies are premised on moving away from doing business as usual, to actually getting things done. Getting things did mean helping our people to help themselves improve their quality of life,” he said.

Kuma said the task of transforming our people’s socio-economic challenges is immense and well known:

1.            our economy is small, highly dispersed and very vulnerable to international adverse developments;

2.            the private sector is not well developed and needs to function in a transparent environment supported by quality infrastructure;

3.            More than half of our population is young and not employed; and

4.            emerging environmental challenges pose serious threats to our people’s livelihood.

As such, Kuma urges the 50 Members of Parliament to RISE AND DO THE RIGHT THING and take the initiative in the critical task of reversing the damage done arising from the covid-19 pandemic.

He said “all Members of this Honourable House must therefore remain united and show that we are all here for the common interest of our country”.

Debates continue today.

SI expects 84k Astra

Written by
Alfred Pagepitu
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0

BY ALFRED PAGEPITU

The country is expecting more batches of AstraZeneca vaccine in the coming months.

These are the remaining 84,000 from the allocated 108,000 which COVAX facility had earmarked for Solomon Islands.

This is according to the Prime Minister Manasseh Sogavare, in his nationwide address yesterday.

He adds, the Government of India has responded favourably to his government’s request for 600,000 doses of the AstraZeneca vaccines.

“We are currently finalising the necessary paperwork to be given to the responsible authorities in the Government of India after which we will be informed of the specific delivery and logistics arrangements.

“Our vaccination roll out in the border zone is currently underway,” he said.

Meanwhile, Sogavare said the health teams in Western province, Choiseul province, and Malaita Outer Islands have already commenced awareness meetings in all three provinces.

He added that a team from the Ministry of Health will deploy this week to jointly conduct further training for vaccination teams in the Western and Choiseul provinces in the first instance.

“It is our hope that COVID-19 vaccination will start rolling out in Western Province as early as next Monday, 12th April 2021 to be followed closely by the roll out in Choiseul province and then Malaita outer Islands.

“A total of 17,000 does of the AstraZeneca vaccine is being deployed to the border zone to vaccinate our communities along the emergency zone at the western border,” said Sogavare.

Kuma lays out $4b budget before parl

Written by
Eddie Osifelo
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0
Solomon Islands National Parliament

By EDDIE OSIFELO

MINISTER of Finance and Treasury, Harry Kuma outlined the overview of the $3.9 billion budget in Parliament yesterday.

Delivering the second reading of the 2021 Appropriation Bill 2021, Kuma said the government has planned an overall deficit of $329 million in the 2021 budget. 

He said total consolidated revenue is estimated at $3.710 billion and total expenditures at $4.039 billion.

“Of the total consolidated revenue estimates, total domestic SIG revenue is projected at $3.009 billion.

“The government is confident that the balance of $701.5 million will be externally sourced,” he said.

Kuma said of the $701.5 million balance, government has already secured $341 million from its traditional multilateral and bilateral partners.

He said the remaining balance will be sourced domestically or from other normal external sources.

Further to that, Kuma said in terms of expenditures, the $4.039 billion in total consolidated expenditure consists of $2.830 billion in recurrent expenditures, and $938 million in development expenditures. 

He said a total of $270.5 million will be budget support and $90 million from the Peoples Republic of China (PRC).

“An amount of $32 million, consisting of $12 million for continued Economic Stimulus Package program and $20 million in Contingency Warrant provision is also budgeted for the year.

Furthermore, Kuma said the total revenue estimates for 2021 is $3.710 billion.

This consists of $3.009 billion in normal SIG revenue; $360 million is Budget Support revenue from Donor partners and $341 million secured from development partners to fund Governments development budget initiatives.

He said both the Inland Revenue Division (IRD) and Customs and Excise Division are projected to collect $2,576 million in 2021. 

“This is a slight decrease of 2 percent from the 2020 revised estimates of approximately $2,580 million. 

“Total non-tax revenue is estimated at $433 million dollars for 2021,” he said.

Kuma said the IRD revenue estimate of $1.744 billion is 15 percent below the 2020 original revenue estimates of $2.048 billion, but 4 percent above the revised revenue estimates of $1.678 billion in 2020.

Moreover, he said for Customs and Exercise Division, the revenue estimates of $832million is 15 percent down from the 2020 original revenue estimates of $976 million and 7 percent below the revised revenue estimates of $902 million in 2020.

“For other ministries, non-tax revenue is estimated $433 million.

“This is 20 percent below the 2020 original revenue estimates of $546 million and 2 percent below the revised revenue estimates of $441 million in 2020,” he added.

Debate on the budget continues today.

No date yet for mayor election

Written by
Alfred Pagepitu
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0

BY ALFRED PAGEPITU

A date is yet to be set for an election to vote in a new mayor for Honiara city.

Former Mayor Wilson Mamae was shown the exit door after a deafening majority vote favoured a motion of no confidence against him late last month.

Honiara city council (HCC) is reportedly waiting for an instrument from the minister of Home Affairs, Christopher Laore, to call for nominations and election of a replacement.

HCC legal officer, Vincent Kohata said the instrument is currently with the Attorney General.

Kohata said the AG Chambers will forward the instrument to the Minister, who will sign it and send it to the Council to conduct the election within 14 days.

Furthermore, the minister is also waiting for advice from Attorney General Chamber on any decision to dissolve the Council or not.

This was after the Public Accounts Committee reportedly recommended in its report to dissolve the current leadership following its recent public inquiry.

The Auditor General Report, produced last year, only provided recommendations to refer any serious matter to Police and Leadership Code Commission.

Meanwhile, sources said it is highly likely the Minister will not dissolve the Council following the change of the administration after the motion of no confidence.

Mamae’s reign as Honiara City Mayor came to an end on March 29, 2021 after he was toppled.

An overwhelming majority of eight votes went in favour of the motion, which was moved by Councillor for Vavaya ward, Billy Abae. Only three stood with Mamae.

Deputy Mayor, Francis Idu is the acting Mayor until the Minister of Home Affairs issues a notice for the election.

Gov’t set on measures to make more revenue

Written by
Eddie Osifelo
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0

By EDDIE OSIFELO

THE Democratic Coalition for Change Government (DCGA) has approved   several   revenue measures   to bolster additional   revenue this year.    

These include taxing Lekona under the Tobacco Exercise from July 1, imposing plastic tax, raw sugar tax and soft drinks.

Minister of Finance and Treasury, Harry Kuma confirmed these measures when he tabled the $4 billion budget in Parliament yesterday.

Kuma said imposing the taxes was part of government’s move to control smoking, contribute to clean environment and combat Non-Communicable-Diseases.

He said medical evidence howed that increased tobacco consumption has direct adverse impacts on the health of our people, especially the young population.     

“The government has completed review of Tobacco Excise regime and decided to raise the Tobacco   Excise from 1st July, 2021.

“The government also intends to further strengthen the monitoring and tax compliance in this area, and will consider Introducing a system of tax in Lekona,” he said.

Kuma said Government expects to earn $24.9 million in additional revenues from this measure.

Furthermore, Kuma said as part of DCGA policy on pollution and clean environment, a $0.50 cents environmental levy is also proposed for plastics that are identified as major contributors to environment pollution.

He said single use and harmful plastics are going to attract this levy.

Kuma said the increase will generate minimal revenue of around $1.1 million for the full year.

“This will discourage the importation of plastics and encourage using of environmental friendly products other than plastics,” he said.

Furthermore, Kuma said through Ministry and the Ministry of Health and Medical Services, the Government will impose levy at the rate of $1.00 per Kg on raw sugar effective as of 1st May 2021 as part of Government national strategy in combating non-communicable diseases in the country.

He said this Tax when fully implemented will generate additional revenue of $7 million per year to the Government.

Moreover, Kuma said the other product category covered under the NCO policy strategy includes soft drinks and the proposed Levy rate of $1-00 per Kg. 

He said this tax when implemented as planned will generate additional revenue of $6 million per year to the Government.

Baby found dead at church compound

Written by
Press Release
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POLICE in Honiara are investigating an infanticide incident that occurred at the Holy Cross Cathedral area in Central Honiara area on 5 April 2021.

According to an initial report, the body of the female infant was found in the Holy Cross Cathedral area in Honiara.

The infant was estimated to be about six to eight months old.

Supervising Provincial Police Commander Honiara City (PPC) Superintendent John Matamaru says:

“The matter was reported to police and officers at the Central Police Station and a team from Police Forensics attended the scene and took photographs and conducted an inquiry.

“The body of the infant was later transported to the National Referral Hospital morgue for medical examination.

“Our sincere condolences to the innocent life following the tragic incident.

“So far no suspect has been identified as the investigation continues.

“I call on people living in and around the Holy Cross Cathedral area who may have any information about the matter to come forward and assist police with the investigation.”

Man, 70, dies in boat tragedy

Written by
Press Release
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POLICE at the Kirakira Police Station in the Makira Ulawa Province are investigating the death of a 70-year-old male person after a ray boat powered by a 40-horsepower engine sunk after leaving Kirakira at 12 mid-day on 2 April 2021 on its way to Santa Ana Island.

There were nine people on board the boat including one female and a four-year-old.

Provincial Police Commander (PPC) Superintendent Peter Sitai says, “As the boat approached Manitopaga Point, West Wainoni, in East Makira, it started to experience rough seas with high swells. 

“The boat skipper decided to turn back for safety reasons.

“As the boat turned around, another wave came from behind and broke right on top of the canoe, which then dipped it. Attempts were made to salvage the sinking boat but failed.”

Sitai said the driver reportedly told all the passengers to swim together with the floating objects on the boat while he and the others will try to help them swim to the shore.

“However, the deceased in his 70s, had decided to swim ashore without everyone’s knowledge or help.

“He was unable to make it ashore as they only found his dead body floating near them.

“The rest of the passengers later landed safely ashore after swimming for about an hour,” says Sitai

He explains police at Kirakira were alerted about the incident and left in two outboard motorised boats after 2pm on 2 April to bring back the body of the deceased and the rest of the people travelling on the sunken boat back to Kirakira station late in the evening of the same day.”

The body of the deceased was taken to the hospital at Kirakira where he was confirmed dead by medical authorities there.

Health workers at the hospital also attended the rest of the passengers and released.

“My condolences to the family and relatives of the deceased for the tragic loss of their loved one.

“To my good people in Makira Ulawa Province, always check the weather before travelling out at sea. Do not overload your boats.

“Think safety first. If it is not safe, stay ashore,” says PPC Sitai.

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