18 October 2013
Address to the 5th Australia-Solomon Islands Business Forum by the Hon Teresa Gambaro MP, Federal Member for Brisbane
Good morning, firstly I would like to acknowledge: The Honourable Gordon Darcy Lilo, Prime Minister of Solomon Islands; Minister for the Solomon Islands present here today, Mr Tony Koraua, President of the Solomon Islands Chamber of Commerce and Industry; Mr Gane Simbe, Deputy Governor, Central bank of the Solomon Islands; Mr Greg Pawson, President and members of the Australia-Pacific Islands Business Council; Mr Matt Anderson, Australia’s High Commissioner to the Solomon Islands, members of the Diplomatic Corps, our eminent Master of Ceremonies, Mr Frank Yourn; distinguished guests, ladies and gentlemen.
I am delighted to welcome you all here to Brisbane, my home town, on behalf of the Australian Government for the fifth Australia-Solomon Islands Business Forum.
My colleague Julie Bishop, Minister for Foreign Affairs, sends her warm regards and best wishes for a successful Forum. She regrets not being able to attend today.
Julie and I were privileged to visit Solomon Islands two years ago and I am delighted to be able to join you today.
The Pacific is a high priority for the Australian Government. I hope to meet as many of you as I can today and contribute to the deepening of business links between Australia and Solomon Islands.
Of course, Australia and Solomon Islands have deep and longstanding ties and we are linked historically, culturally, politically and, I am happy to say, increasingly economically.
Our two-way trade is just under one quarter of a billion dollars.
This has tripled since 2007, led by strong growth in Australian imports of Solomon Islands’ gold.
Australian companies are also active in the banking, insurance, aviation and telecommunications sectors.
And there is a shared sense of optimism in business that things will get better.
The recovery of Solomon Islands in the past 10 years has been nothing short of remarkable.
Ten years ago, the economy in Solomon Islands was nearly at a standstill. But stability and peace has reaped many rewards.
And this year Solomon Islands has embarked on an exciting new chapter in its recovery.
On 1 July, the Regional Assistance Mission to Solomon Islands (RAMSI) became a mission comprised almost entirely of police.
This reflects positive developments in Solomon Islands and the much improved capability of the Royal Solomon Islands Police Force.
It also sends a strong message that Solomon Islands is well and truly open for business.
The Solomon Islands economy grew four per cent in 2012, and is expected to maintain this momentum in 2013.
This follows nine out of ten years of strong economic growth, in most years at least five per cent, and exceeding ten per cent in the two boom years of 2007 and 2011.
Logging has been the country’s economic mainstay but is unsustainable.
Mining has the potential to drive further growth.
Australian miners, St Barbara, have made a long-term investment in Gold Ridge Mine on Guadalcanal Island.
The mine has already yielded strong returns for Solomon Islanders, and has the potential to generate revenue for the Government, as well as royalties for landowners, for many years.
The Australian government supports the efforts of the Solomon Islands Government to provide the security and sound regulation that will make the country an attractive destination for more foreign investment.
Serious challenges remain, and I congratulate the Solomon Islands government on the steps it is taking to meet them.
The initiative of establishing a Mining Development Authority is timely.
And I congratulate you, Prime Minister Lilo, for earlier this year committing Solomon Islands to join the Extractive Industries Transparency Initiative. This commitment to publish the revenues that the Government receives from mining will boost investor confidence.
And it will increase Solomon Islanders’ confidence that all citizens benefit from the development of the country’s resources.
I am confident that over time, Solomon Islands will continue to broaden its economic base.
Fisheries, agriculture and tourism have potential for further development.
And, over time, more Solomon Islanders will participate in the formal economy.
Advances in telecommunications are encouraging. With Australian Government assistance, the number of subscribers to mobile phones has increased more than fivefold since 2009, to over 300,000 people in 2012.
The Australian Government is helping to make mobile phones the pathway for many thousands of Solomon Islanders to open their first bank account.
There is a long road to travel to get the basics right. Improved primary education and reform of land tenure are fundamental.
But each successive year of peace and economic growth enables business people to blaze development trails for others to follow.
Solomon Islands has come a remarkably long way in the past 10 years.
I would like to congratulate Solomon Islands and all Regional Assistance Mission to Solomon Islands (RAMSI) contributing countries for their achievements since 2003.
Ten years ago, Solomon Islands was in danger of becoming a failed state.
But RAMSI has worked with the people and government of Solomon Islands to restore law and order, rebuild national institutions, stabilise the economy and improve service delivery.
Once again, the Solomon Islands are called the ‘hapi isles’.
Of course, serious challenges remain.
That’s why Australia, following close consultation with the Solomon Islands Government and partners, earlier this year committed nearly $500 million to continue RAMSI to mid-2017.
The security challenges faced by Solomon Islands require a policing response.
So on 1 July, RAMSI’s military component ceased operation.
RAMSI’s civilian development assistance activities have transferred across to Australia’s (and New Zealand’s) bilateral aid programs.
RAMSI, now comprised almost entirely of police, remains in country to help local police deliver effective services across the country.
RAMSI is proof of what this region can achieve when it stands united with a common purpose.
And RAMSI’s reconfiguration does not mean that Australia will be winding down its efforts to help improve the lives of Solomon Islanders.
Australia remains committed to ongoing support for a more prosperous and secure Solomon Islands.
Australia’s bilateral aid program is better placed than the temporary RAMSI to address Solomon Islands’ long-term development needs.
Our development partnership focuses on governance, health, economic development, education and general development support.
Together we have achieved important results.
Australian and New Zealand helped stabilise the Government’s cash position and reduce debt. Australia has also helped domestic revenue collection grow an average of 20 per cent a year since 2006.
We also helped reduce malaria to fewer than 45 cases per 1000 people – that’s a prevalence rate less than a quarter than was the case in 2006.
We contributed to the removal of school fees; helping more than 150,000 young Solomon Islanders get an education in 2012.
And our support for the maintenance of 344 km of road during 2012 improved Solomon Islanders’ access to services and markets. The maintenance work created at least 207,000 days’ worth of short-term employment, with women accounting for more than half of this.
I am proud of Australia’s development assistance to Solomon Islands. I am also aware that the most decisive factor in successful development stories around the world has been international trade.
Australia is committed to assisting Solomon Islands to benefit from access to regional labour markets and from regional economic integration.
Since July 2012, Australia has provided opportunities for Solomon Islanders to enter our labour market through the Seasonal Workers Program. To date, we have granted 42 visas to Solomon Islanders, who have worked in Tasmania and Victoria, picking fruit. We are also in the early stages of preparations for the first deployment to Western Australia.
These workers have had the opportunity to come to Australia, to earn Australian dollars under Australian conditions.
This is a small beginning, but from little things, big things grow. The Australian Government is committed to working with the Solomon Islands Government to make this employer demand-driven program a success.
Another way that Australia is supporting Solomon Islands in its development is by helping it better integrate with the regional economy.
Australia and Solomon Islands are strong supporters of the PACER Plus negotiations, recognising that such an agreement will be a vital contributor to future prosperity in Solomon Islands and elsewhere in the Pacific Islands region.
PACER Plus should be seen as a long term opportunity to secure jobs, private sector growth and economic development by making it easier to trade and do business across the Pacific.
Ladies and Gentlemen, Solomon Islands’ business community is a source of hope, purpose and drive.
I commend the energy and vision of the Australia Pacific Islands Business Council, and of the many participants in today’s program.
Today’s program of events points the way to growth and prosperity in Solomon Islands: sessions on vocational training, agribusiness exports, building infrastructure and an enabling business environment, sustainably harvesting natural resources, and more.
I would like to underline two central challenges: to secure the future of the mining sector, and diversify the economy.
I look forward to working with you all towards our common goal of continued peace and rising prosperity in Solomon Islands.
Our government is focused on support for Solomon Islands that will enable the country to benefit from all that you and your colleagues have to offer.
Thank you