Niue Country Brief - September 2008
Introduction
Australia and Niue enjoy a friendly relationship based on shared membership of Pacific regional organisations and a small aid program.
Political Overview
Partnership with New Zealand
Niue is a self-governing state ‘in free association with New Zealand’, an arrangement dating from October 1974. From 1901 to 1974, Niue was a dependent territory of New Zealand. Niueans are New Zealand citizens with the right of free access to New Zealand.
Government
The Head of State is HM Queen Elizabeth II, represented by HE the Hon Anand Satyanand PCNZM, who is also the Governor-General of New Zealand.
Niue's parliament is the Niue Assembly and consists of 20 members (14 constituency or village seats, and 6 common roll seats) elected every three years by universal suffrage. The 20 members elect a Premier, who then selects three cabinet ministers from the other 19 members. Assembly members currently all serve as independents. The members appoint a Speaker from outside their ranks.
Recent political developments
The Niue General Election was held on 7 June 2008 for five of the 14 village-based constituencies and the six common-roll seats. The nine other village seats had been previously decided by uncontested single candidates. The elections saw key ‘opposition’ members Terry Coe and Veve Jacbosen re-elected and several longer-serving, more conservative members defeated.
Toke Talagi was appointed Premier of Niue on 18 June 2008. Premier Talagi will retain portfolio responsibility for areas including finance, external affairs, public service, crown law, immigration and population, police, civil aviation, tourism, economic development, environment and climate change. Ms O’Love Jacobsen was appointed Minister for Health, Public Works, Women’s Affairs and the Niue Power Corporation. Tongia Sioneholo was appointed Minister for Community Affairs, Justice, Lands and Survey; Education; Shipping and Bulk Fuel. Pokotoa Sipeli was appointed Minister for Post and Telecommunications; Agriculture, Forestry and Fisheries; and Administrative Services.
Foreign Relations
Niue's strongest ties are with New Zealand, where Niue maintains its only diplomatic office overseas. Under the terms of its free association agreement, New Zealand is responsible for Niue's defence. Niue's ties with other Pacific countries are primarily built on its membership of regional organisations, including the Pacific Islands Forum (PIF), the Pacific Community (SPC) and the Forum Fisheries Agency (FFA). Since November 2006, Niue has contributed two police officers to the Regional Assistance Mission to the Solomon Islands (RAMSI). Niue has recently signed the Pacific Islands Air Services Agreement (PIASA) and acceded to the Pacific Islands Civil Aviation Safety and Security Treaty (PICASST).
Niue is also an associate member of the UN and the Commonwealth and participates in some UN organisations: it is a member of the World Health Organization (WHO), the United Nations Development Program (UNDP), the Food and Agriculture Organization (FAO) and the United Nations Educational, Scientific and Cultural Organisation (UNESCO).
Niue hosted the Pacific Islands Forum Leaders Meeting in August 2008 and is chair the Pacific Islands Forum for the 2008-09 term.
Economic Overview
The economic challenges experienced by Niue are common to other small island states within the region. Geographic isolation, limited natural resources and a small population hamper the development of an independent economy. Cyclones such as Heta (January 2004) occasionally devastate the island's infrastructure, including housing and tourist facilities.
Under the terms of the constitutional agreement between the two countries, New Zealand provides substantial economic and administrative assistance to Niue. Economic assistance is provided in the form of both direct budget support and project-related aid.
Sources of income
Fishing licences and the international lease of Niue's unique four digit telephone numbers are important income earners for the country. In the aftermath of the devastation of public and private infrastructure by cyclone Heta in January 2004, remittances from Niueans living abroad played a fundamental role in supplementing the income of island families.
The tourist industry is a small, but potentially important, sector in the economy. Noni-juice production also provides ongoing employment opportunities for the population.
Niue's declining population has been a concern to successive governments and currently stands at around 1,625 (2006 Census). Despite government attempts to encourage them to return, this migration pattern persists. Over 20,000 Niueans currently live in New Zealand and just under 500 live in Australia.
Bilateral Relationship
Niue was devastated by cyclone Heta in January 2004, which destroyed key infrastructure including government offices, housing and Niue's hospital. Australia responded with an Australian Defence Force field hospital and over $200,000 in relief funding for essential medical infrastructure, equipment and emergency staffing, and other minor equipment. The Government of Niue is committed to post-cyclone reconstruction and in the longer term seeks to reduce the flow of young skilled workers from the country, and promote tourism as a key sector for economic development.
Australia currently provides bilateral assistance of around $800,000 annually to support Niue's efforts to promote economic development and growth, and increase in self-reliance. Niue is also eligible for funding under regional development assistance programs.
Trust Fund Approach
On 25 October 2006, Australia, Niue and New Zealand became signatories to the Niue International Trust Fund (NITF) Deed (the Deed) at the Pacific Islands Forum in Suva, Fiji. Signature of the Deed set in place the formal legal arrangements required for the long-term operation of the Niue Trust Fund. The aim of the NITF is to provide a long-term, dependable revenue stream for the Government of Niue, to encourage self-reliance and decrease dependency on official development assistance.
Since 2004, Australia has contributed approximately $5.5 million to the Trust Fund, which was held on trust in the New Zealand-managed Niue Trust Fund Account until the full implementation of the NITF. Australia participates in the Trust Fund on an ongoing basis through its annual contributions and membership on the Trust Fund Board of Directors.
Australia intends to gradually transfer its bilateral aid allocation to Trust Fund contributions in the future. Until such time, Australia will continue to support some bilateral aid activities in education scholarships and human resource development.
Australia has nominated a Trustee to the Board of Directors of the NITF. From October 2009, Niue will be able to draw on the interest earned from the trust fund.
Bilateral Economic and Trade Relationship
In 2007, Australian exports to Niue totalled $3.5 million, with $3.4 million worth of ships, boats and floating structures. Imports from Niue to Australia totalled $32,000 comprising fish, telecommunications and clothing.
Visitor Information
Australians entering Niue for a stay of up to 30 days do not require a visa provided they have a valid passport, a ticket for onward travel, and does not intend to take up paid employment. Australians intending to visit Niue should contact their travel agent for full information on entry requirements.
Websites
The Niue Government website is at: http://www.gov.nu/. Niue Tourism maintains a web site at: http://www.visit.nu/ Australians wishing to visit Niue should also consult our travel advice at www.smartraveller.gov.au.