PRIME MINISTER
TRANSCRIPT OF THE PRIME MINISTER THE HON P J KEATING MP
SOUTH PACIFIC FORUM
I AUGUST 1994
PM: Thank you for your introductory remarks. I think the first thing I would
like to say is that we've had an excellent day of informal discussions
at the Leaders! Retreat. This Is a day without officials, so that its not
as if there is the distraction of, if you like, documentation and notes et
cetera in the course of presentations and discuissions. Rather, an
informal discussion where the leaders can sit down and discuss
problems and review the progress of the. region. Now, we had a long
discussion this morning about economic growth rates in the region,
about per capita GDP growth rates relative to other similar regions in
the world, looking at ways in which we might improve our economic
performance, looking at some of the inhibitions to that economic
growth 2nd deciding that in some areas we ought to focus agin on
the theme of the conference which is resource management or how
to manage resources better. So, we had quite a lengthy discussion
about fisheries, airlines, forestry, tourism et cetera. And also I'll
come back to those in a moment also, we agreed to re-appoint the
Secretary-General, leremia Tabsi, and to decide that the Forum next
year will be held In Papua New Guinea, and the year after that in the
Marshall Islands, and the following year, in the Cook Islands. SO, I
think that the forum has produced some substantial outcomes and let
me just go to them.
In fisheries, leaders have agreed on the merits of a multi-lateral
approach to negotiating access to their exclusive economic zones on
the basis that they can better and adequately improve the terms by
negotiating on a multi-lateral basis, and where we believe existing
bilateral arrangements are adequate, they can be maintained in a
multi-lateral context This, I think, would be a substantial departure
from the nature of bilateral arrangements between Pacific Island
countries for the exploitation of their economic zones with some of
the major fish-conisuming nations, and tha the aim would be to lift
income in the area for what is one of the largest fishery regions, and
fisheries, of the world. So, we've agreed to agree on the merits to a
multi-lateral approach and we'll be using our, we believe we need to
strengthen our forum fisheries agency capacity so it can ensure more
effective national control and management of the region's fisheries.
So. that of course will ensue in the next year.
On airlines, there was general agreement about the need to deal with
airline losses and the combined airline losses of the Pacific area now
equate to the aid which Is being provided by both Australia and New
Zealand, which means there's a very large drain on the net income of
Pacific Island countries. So, we agreed to look at the airline losses to
examine the option for a rationalisation of air services among Forum
island countries, perhaps on a sub-regional basis. That is, on a basis
where air route and air route management would be in zones that
made sense in terms of reach, access, service, price etc. Taking into
account, of course, the needs of sub-economic clients, that is, the
needs of some distant island countries where the service will be
perpetually sub-economic.
On forests, leaders have agreed to take further steps to prevent
unsustainable rates of logging and to ensure a reasonable return to
land owners and governments. During the afternoon, Prime Minister
Hilly and I made a separate statement and some Important
commitments which will assist Solomon Islands to manage its forests
more sustainably And, as a consequence of that, leaders strongly
expressed a strong concern about the exploitation of tropical forests
in the region and welcomed the recent initiatives by Vanuatu and the
Solomon Islands to halt the spread of unsustainable logging practices
Including the introduction of independent monitoring systems and
an agreement on the need to secure better and adequate returns for
the exploitation of this resource for national income purposes. The
forum also endorsed the undertaking of leaders to the Melanesian
spearhead group to examine uniform legislation procedures and
practices in forest resources and there, Australia and I think New
Zealand have offered assistance where that may be valuable.
We also had a discussion about the contribution which tourism can
make to the economies of the region and noted, in particular, the
need to protect the region's fragile coastal zones so that, again, with
some focus on the need to maintain coastal zones and also to try and
adopt better coastal zone management practices wherever it's
possible, for some assistance to be provided there. The recent report
by the Australian Resource Assessment Commission has led to a
number of conclusions and recommendations, which may have
application to the Pacific Island states, and the Government of
Australia has provided a booklet which is a guide to where these
sorts of services might best be assisted in Australia, or from Australia,
but with a renewed emphasis on the need to preserve attractive
coastal zone regions. I think it was in that vein that Prime Minister
Hilly made his announcement about the Marovo Lagoon, which is, of
course, one of the most attractive regions of the whole Pacific. And, I
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think it bodes well for the understanding which leaders have, of the
need to protect important parts of the environment
So, could I just sum up by saying that I think its been a very
productive day. Coming to conclusions about such things as
fisheries, the need to lift national income from them, airlines, the need
to reduce the call on national budgets, forestry the need to, again,
lift national Income and take steps to prevent unsustainable rates of
logging was. I think a very good and important outcome of the
meeting. And. of course, we will go into formal session tomorrow.
J: Prime Minister, Chris Hammer from SBS television, this new fishing
arrangement, could that be described in any way as a cartel
arrangement?
P: No. I think that it is important for wealthy nations like Japan and
South Korea to understand that they can't secure valuable resources
at sub-economic rates of return. And, what the existing arrangements
have shown is there has been a considerable exploitation of Pacific
Island countries, under-reporting of captures, insufficient monitoring
the multilateral nature Is not simply for any negotiation. But, rather,
also to look at fish stocks, the prospects for aquaculture in adding to
fish stocks and. also, better monitoring and better reporting so that
these small states can get a better return from their valuable, and one
of their few, natural resources.
J: Mr Keating, lan McPhredran from the Canberra Times. I'm wondering
if you expect any sort of a backlash from Malaysia on the issue of
environmental, combating environmental piracy, and will you be
raising that matter with Dr Mahatir or President 8uharto in the future?
P: I haven't mentioned Malaysia but I've just said that I think the
important thing is, that, again, Pacific Island companies are not
exploited by unscrupulous companies who then, not only pay
inadequate rates of return but also carry out logging practices which
would not be tolerated in a developed forestry culture. Now, I think
that, an understanding by wealthier countries who use these
resources and who exploit them, of the smaller countries, is
important And, whether, at the moment, of course, many of these
companies are Malaysian companies and Korean companies and
also some Indonesian companies. But, whoever the companies
belong to, I think that they should be encouraged to be good
corporate citizens, to not see an opportunity for exploitation arise and
then take It to the full. At any rate, the national governments involved
here are concerned about rates of exploitation and modalities of
forestry and are obviously taking rdmedlal steps to change it
J: Kelinga Seneviratne from IPS Newsagency.
PM: Where are you from?
J: IPS Newsagency. Australia has been very strong on asking the
Pacific Island nations to restrict logging because of its environmental
impact. Now, also, now some of the foreign countries are going to be
wiped out from the map in a couple of generations because of the
greenhouse emissions and rising sea levels. As the Chairman of the
Forum and also as Australia is one of the major users and supporters
of coal, for example, would you, Australia, be willing to take the
initiative at this Forum to offer restricting mining and export of coal
and if not would Australia also be willing to consider opening up the
borders for environmental refugees from the South Pacific?
PM: Well, I don't tht~ s a very broad question. Lot me tell you this though,
that Australia's interest in this matter is not so much protection
against global warming. That is, the implication of your question is
that the forestry, Australia's moves on forestry, are self interested
ones which go to the international environment in which it lives. Well,
this is not so. I mean, that is a natural interest, but the predominant
interest is seeing a sustainable rate of exploitation of forests in the
Pacific Island countries, because at the current rate of exploitation
these reserves are going to go. But not only are they going to go, but
in the doing of it the exposure to high rainfall of the resuling terrain
will mean that a lot of the topsoil will end up in coastal waters and in
lagoons and in reefs, and affect the fishing stocks as well. I think that
Australia's interest in this Is to see that a. that there is a sustainable
basis for alogging; b. that the environmental despoilatlon is one
which is contained and manageable, and c. that national incomes are
rising. We are not doing this because of what one may see as some
threat to Australa in global environment terms. Now, the subject of
our greenhouse gas emissions and water levels is a subject way
beyond the capacity for me to detail at a press conference like this
and involves, of course, commitments by other countries and the
whole progress of international climate change conventions and the
commitment to those conventions by the major developed countries.
J Craig Skehan, from AAP. To what extent do you accept that
corruption by some Islands' officials and politicians has been a large
contributing factor to unsustainable agreements in resource areas
such as forestry. Was that discussed today at the retreat and, what
measures could be taken at the regional level to deal with corrupt
practices in resource areas?
PM: Well it was discussed today, but I couldn't say to what extent. That is
a cause of the rates of exploitation and modes of exploitation on now.
I think a lot of it is, perhaps a lack of comprehensive understanding of
the impacts of the agreement of logging licenses and exploitation
rates, which may seem feasible at the early stages of the exploitation
of a forest, but then seem more worrying later. I think that's what has
happened now, and given the fact that at least two of the island
states have now taken action to introduce moratoriums on further
exploitation in certain regions and articulated a willingness to
renegotiate licences, I think gives an indication that whatever is the
reason for the permissible exploitation as to date, thats now being
reviewed. In the case of Papua New Guinea, of course, Papua New
Guinea is a much larger country with a much deeper resource base
and a multi faceted resource base and has much more of a capacity
therefore to be able to make judgements or professionally manage
the development of resources and to deal with the more predatory
behaviour of particular resource exploitation companies.
1: Victor del Rio from Eco Television in Latin America. Mr Keating,
about three months ago I attended a conference in which they were
inviting mining companies, Australian mining companies to invest in
Latin America, and during the conference they said that Latin
America was surprised because of the few restrictions that the
environmret using another task force. Is Australia willing to put
some kind of code of ethics to the Australian companies, when they
are investing in regions like Latin America to stop this practice of
using the in Latin America?
PM: Well, I am not aware of where one may say Australian companies
have, as a class of investors, exploited regions. They will certainly
exploit mineral and other opportunities in various parts of the world,
but. I should hope their international corporate citizenship and their
regard for the interest of other co untries and their communities is as
high as their regard in Australia. Thaes not to say that any realm of
commerce unfettered, and certainly unfettered by commitments of a
company to best practice in, particulary in resource exploitation,
won't be important So at this stage, I don't think we have seen the
case for Australia needing to say to its corporations that there should
be a code of conduct under which they observe, but I don't think youll
find an example of an Australian company that's involved In the
wholesale exploitation on an unsustainable basis and despoilation
that cause concern in this context Now, I mean, I'm sure all
companies around the world can be better corporate citizens and you
can take environmental concerns to the nth degree. It all a matter of
what the, proponents are prepared to do, what the licensing authority
wishes, and in that case it's mostly national governments, what their
concerns are. By and large, I think it's fair to say, Australian
companies will take heed of concerns expressed by national
authorities about particularly large extracting developments. I mean, I
wouldn't think, -in fat I know of no Australian company, certainly a
major one, involved in wholesale exploitation and under reporting of
Income, and that's one of the problems here.
J: Janice.. from Radio New Zealand. Mr Keating, the decisions on the
airlines today, wilt this, do you expect closure of some national flag
carrying airlines?
PM: Well, I think it means that there is a willingness on the part of the
leaders to think about ways in which, I mean, let me put it this way,
what they are interested in is air services. not airline ownership
necessarily. They ame interested in the provision of air services and
air services at an effective and efficient pricing. Now, whether that
can be done, by, if you like, Pacific sub-regional carriers who service
a region of the Pacific including those places which will always
remnain sub-economic, or whether in fact this will need to be carried
on National budgets, is a moot point. Thats the point that needs to
be, that will be examined. I mean, I think what may arise, is tat, sub-
Pacific carriers could service a region and even so * inso me areas it
will be completely commercial, in others it will be sub-economic, but
not requiring the subsidies of the magnitude they require now. So it is
that willingness to look at multi-lateral, multi-lateral regional solutions,
and the drain on budgets which, I think, is causing leaders to
consider such an outcome, such an approach.
J: Richard Breeze from APP. Very simple question, you mentioned that
the combined losses of these airlines equalled the aid given by
Australia and New Zealand. Would you care to point out an
Australian dollar figure on that?
PM: Its around about $ 100 million or thereabouts. That is the combined
operating losses of the eleven airlines, which is around about, a bit
over $ 108 million dollars.
J. 0 Mr Keating, Sid Mart, Brisbane Couriar Mil. How would the fishing
contracts, the new multi-lateral fishing contracts be policed?
PM: Well, already the Forum Fisheries Agency has the capacity for some
monitoring facilities and as you know that one of the reasons why
Australia has developed a Pacific patrol boat program Is for policing
of maritime areas and maritime boundaries. But again, one of the
things that the review can address is how there can be better
monitoring and policing, and of course, with better income, all this
becomes more possible. I mean the fact is, I think many countries are
not receivng adequate returns and therefore, of course, diminish any
on budget costs for surveillance et cetera, a more mature structure
allows for that and I think that's the point
J: I'm Gladis Nofkn from the National ( inaudible) Mr Keating, the
FINKS delegation to the Forum were, yesterday, prevented from
attending the opening. Is there any reason why, and also what is the
Forumn stand on the FINKS issue push for self determination?
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PM; Well, that' not being dlsoussed today, I can only say that well, the
reason they did not attend Is because they are not members, that's
the reaso, and, but again, there-Is a dlose, a relatively close
association between Forum members and ema organisation, and of
course, that will be seen tonight, at tonight's dinner whli is being
hold, and wich Forum representatives will be attending.
J: Mr Keating, Susie Grey from Fiji National Video Centre. I was just
wondering if our Prime Minister, Mr Rabuka, sWoke to you about
SPARTECA Is there is any possibility of. Australia following Now
Zealand's example of a 6% reduction in rules of origin.
PM: No. I haven't had 2 discujssion with the Prime Ministe on this
occasion. I did at the last Forum, I think there has been soma talk
between our countres over the course of the last yewr, and there was
I think, some fear in Fiji that Australia was going to, if you like,
toughen the conditions under SPARTECA of rules at origin. That is
not so, but nor have we made them more conoesslonal. I mean rules
of origin exst for apurpose. If goods are being made In terms of the
rules in Fiji therm is not a problem in Australia.
Mr Keating, do you have anything to say on Mr Dowr's comments
today on Aboriginal health and your governmnenits record on that
Issue?
PM: well, ri just say this about Mr Downer, the thing Is that, the Liberal
party has again, the Liberal party of Australia, the conservative party
of Austraia has again demonstrated that it has no philosophy for
office, It has no policy virtually on Australia's identity. ft claims to
support the constitutional monarchy. it then says it's irrelevant and to
be ignored. ft seeks to deny justice to indigenous Australians by
saying it would overturn the histc Mabo agreement Wts not for
Alexander Downer to say what Aboriginal people hold dear, and like
most indigenous communities in the Pacific the spiritual link between
Aboriginal people and Islander people and the land is a profound
one. and the right to their traditional way of life and happines is tied
up in their access to land. It is not simply about health and oducation.
These are functional Issues whichi are dealt with under fuinctonal
appropriations from the Commnwealth either through ATSIC or
direcly. A reliance on health and eduction by Mr Downer is simply
an obfuscation for a policy to try and remove the opportunity for
indigenous Australians to have aoccss to land via Mabo. And, it
means that Mr Downer is being run by the worst elements of
consrvatve Australia and they, amongst other places reside in a
very generous measure, of course, in the state of Western Australia.
Sham an him, shame on him for contemplating it go much for Mr
Downers fresh start.
ends.