Pacific Island leaders focus on economic future

By HELEN TUNNAH deputy political editor

Pacific Island leaders have emerged from talks on how to secure the region's
economic future by focusing on growth rates and combating the economic risks
of Aids.

Prime Minister Helen Clark told reporters during the Pacific Islands Forum
retreat in Samoa that securing economic development for the region was vital
but that could not be separated from tackling the spread of HIV/Aids and its
potential to wreck efforts to create wealth.

"HIV/Aids is not only a terrible tragedy for families and communities, but
it also has a very marked impact on productivity and economic output."

The 16 leaders held their full-day retreat at the Sinalei Reef Resort near
the village of Siumu, and later issued a statement in which it became clear
the much-talked about Pacific Plan would need to pay more than just
lip-service to core principles of good governance and developing member
economies.

"The Leaders again expressed the wish that the Pacific Plan...deliver real
benefits for the Pacific peoples by proposing concrete plans for the
enhancement of economic growth and sustainable development," it said.

But what those 'concrete' plans may be was not outlined.

Forum General Secretary Greg Urwin said a first task would be to identify
exactly what resources each member state has, especially for the smaller
nations which on the surface appear to have few natural resources to base an
economy around.

He made it clear improving revenues from the Pacific's fisheries would be
critical.

After deciding a year ago to formalise a Pacific Plan to try to prevent any
of the regional countries failing, after last year's virtual collapse of the
Solomon Islands, the Forum is now establishing a taskforce to develop how
there will be greater regional cooperation and pooling of resources under
the Plan.

In an indication of the time it is taking to put details around the Plan,
the retreat statement noted "extensive" consultation was necessary.

Helen Clark said she was happy with progress for the Plan.

"There's clear agreement around the table that the key issue is to build
capability for economic growth," she said.

'Identifying practical ways of supporting economic capability is going to be
pretty critical."

Australia's Prime Minister John Howard, a dominant figure here, was at pains
to emphasise his interest in the region, announcing a $4 million donation to
Niue's Cyclone Heta recovery efforts and more funding for regional transport
initiatives.

"We're here as a friend," Mr Howard said.

"We're not here to throw our weight around."

Vital for establishing regional cooperation through the Pacific Plan will be
how regional shipping and air movements are developed.

After the collapse of Tonga's Government-backed airline this year, and
rising fuel prices, there has been an even greater watch on an Australian-funded transport strategy presented to leaders this week.

Helen Clark said there had not been any appetite expressed for a regional
airline, and it was more likely existing carriers -- including Qantas and
Air New Zealand -- would be looked at to supply services.

Rugby was for the second year running debated seriously, but leaders
acknowledged in reality there was little they could do to support Pacific
Islands teams, except state it publicly.

They will, however, raise the need for Pacific Unions to have a voice on the
International Rugby Board.

The Forum ends tomorrow, and Helen Clark will then travel on the frigate Te
Kaha for a two-day visit to Tokelau.