Page 19 - IB JAN 2019

Politics

Canberra ramps up Pacific policy as election looms the Pacific is already about $5.5 billion, including about $2 bil-
lion to the Asian Development Bank and World Bank, and $1.5
billion to Beijing, why are we even contemplating saddling our
neighbours with even more debt? This means scarce government
United States. At a time the Forum Secretariat is seeking new resources must be deviated into debt repayment and away from
funding for climate adaptation and climate resilient infrastruc- critical spending such as health and education.”
ture, this centrepiece of an expanded security engagement in the
region is clearly directed at China rather than “the single greatest Business support
threat” of climate change. With the loss of experienced Australian development staff after
Morrison also announced an Australian Defence Force (ADF) the takeover of AusAID by DFAT, there are real questions about
mobile training team for the Pacific and a Pacific faculty at the the capacity to manage new infrastructure initiatives. In the past,
Australian Institute of Police Management. When they’re not Australia has provided much infrastructure funding through the
busy in the South China Sea, there will be more deployments World Bank and ADB. Critics have raised concern that DFAT does
by vessels of the Royal Australian Navy (RAN) to respond to not have the technical skills to manage these large programmes
disasters like Cyclone Winston. Even as the Forum Secretariat in isolated rural communities and outlying islands
tries to refocus attention on human security, Australian priorities For the Pacific, Morrison has committed a further AU$1 billion
will be promoted through the Forum Regional Security Commit- (USD714m) for EFIC, to create “a new more flexible infrastructure
tee and annual meetings between defence, police and “border financing power to support investments in the region which have
security” commanders. a broad national benefit for Australia.”
Pacific governments may wonder about the priority to be
Infrastructure funding given to “broad national benefit” in the islands, supporting lo-
New Zealand, Papua New Guinea, Fiji and Vanuatu are all cal businesses rather than Australian corporations! One of the
engaging with President Xi Jinping’s Belt and Road Initiative, key reasons that Papua New Guinea and Fiji refused to sign the
China’s major global infrastructure programme. In response, the PACER-Plus agreement was the need to protect infant industries
Morrison Government has announced AU$3 billion (USD2.14b) in the manufacturing and services sector. Yet here, once again,
in infrastructure and business funding for the islands region. is an Australian government subsidising Australian companies
At APEC last November, Australia joined Japan and the United to operate in the Pacific.
States to begin operations for the “Trilateral Partnership for In- Another initiative that seems to focus on subsidies for Aus-
frastructure Investment in the Indo-Pacific.” Australia’s Export tralian corporations is the Morrison government’s pledge to fund
Finance and Insurance Corporation (EFIC), the Japan Bank for media corporations to broadcast into the Pacific.
International Cooperation (JBIC), and the US Overseas Private r nicmac3056@gmail.com
Investment Corporation (OPIC) will work together to mobilise
private sector for infrastructure and energy projects across the
Indo-Pacific region. TRADE MARK CAUTIONARY NOTICE IN
However as Prime Minister of Samoa Tuilaepa Sailele Maliel-
egaoi told the UN General Assembly last year: “The renewed MICRONESIA AND PALAU
vigour with which a ‘Free and Open Indo-Pacific strategy’ is being ASAHI GROUP HOLDINGS, LTD., a company duly
advocated and pursued leaves us with much uncertainty. For the organised under the laws of Japan, of 23-1, Azumabashi
Pacific, there is a real risk of privileging ‘Indo’ over the ‘Pacific’.” 1-chome, Sumida-ku, Tokyo, Japan, does hereby provide
Speaking at APEC in Port Moresby, Morrison stated that new notice that it claims proprietorship of the trade mark
infrastructure projects “effectively have to be bankable. We follow
that discipline when it comes to infrastructure projects and that’s
why the sort of projects we’ve been getting involved in, these are
projects that have revenue streams as well.”
This poses a major problem, as many basic infrastructure needs
in smaller island states cannot generate “revenue streams.” Al-
ready there is a lack of private sector investment in SIS nations,
given the limited opportunity for return on investment (many in relation to:
villagers and workers cannot afford to pay to use new toll roads,
while user pays systems for water, electricity and sanitation have Beers, non-alcoholic beer flavoured beverages.
already generated significant costs for people living in poverty
in peri-urban settlements). ASAHI GROUP HOLDINGS, LTD. cautions that any use
The Morrison Government plans to commit AU$2 billion of the trade mark or any confusingly similar trade mark
(USD1.43b) to an Australian Infrastructure Financing Facility in relation to any of these goods, similar goods, or similar
for the Pacific (AIFFP), incorporating $1.5 billion in loans and services, would be seen as infringement of their rights and
$500 million in grants. Many commentators have raised concern that they will take such action deemed necessary to protect
that the use of loans rather than grants will increase debt, even those rights.
as Canberra routinely criticises China for its “debt diplomacy”
in the Pacific. ASAHI GROUP HOLDINGS, LTD. can be contacted care of
This danger has been stressed by Senator Concetta Fierravanti- their address for service:
Wells, the former Minister for International Development and the
Pacific, who lost her job when Morrison came to office. AJ Park, Level 22, Aon Centre, 1 Willis Street, Wellington
“Let’s be clear. A loan is a loan. It needs to be repaid, usually 6011, New Zealand
with interest,” Fierravanti-Wells said. “Given that the debt in

Islands Business, January 2019 19