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Niue is a country “self-governing in free association with New Zealand”. This means:
Since Niue attained self-governing status in 1974 it has retained an exceptionally close relationship with New Zealand. At the heart of this is the presence of large numbers of Niueans living in New Zealand. New Zealand budget support and development assistance programmes for Niue also demonstrate the multifaceted nature of the relationship.
Niue experienced massive devastation during Cyclone Heta in January 2004. Substantial damage to buildings, vegetation and essential services, particularly on the island’s western side, seriously threatened its ongoing viability. In the spirit of its special relationship with Niue, New Zealand swiftly and comprehensively responded with both immediate and longer term assistance. In the months directly after Cyclone Heta a comprehensive reconstruction programme was developed, together with a multi-year infrastructure commitment.
In October 2004 New Zealand’s Cabinet agreed that Niue’s deteriorating viability and depopulation and its status as part of the Realm of New Zealand warranted a change in New Zealand's approach towards managing its relationship with Niue. Accordingly, during a visit to Niue in October 2004 the Prime Minister, Rt Hon Helen Clark, and the Premier of Niue, Hon Young Vivian, signed a Memorandum of Understanding, the Halavaka ke he Monuina Arrangement, for a new Strengthened Cooperation Programme (SCP) with Niue for a five-year period. This programme, for which additional funding of $20 million for the period October 2004 - October 2010 has been allocated, is an overall approach that includes the ODA programme and supplements it with mentoring, training, policy advice, and other support from government departments and agencies in New Zealand. The New Zealand agencies work to their Niue counterparts so as to increase capacity in the Niue Public Service to meet the range of demands made upon it. The Arrangement also assures continued budgetary support for Niue. An additional programme of capital and infrastructure projects has also been approved.
A Joint Consultative Group (JCG) established in March 2000 and comprising senior government officials from Niue and New Zealand, meets every six months to review the working partnership and is also now tasked with overseeing the implementation of the HKHMA. The most recent meeting was held in Niue in April 2008. The next is expected to be held in September 2008.
Official Name - Niue
Land Area - 260 sq km - one single raised coral atoll
Population
- 1,625 (September 2006 Census)
Capital - Alofi
Religions - Predominantly Protestant (Ekalesia Niue)
Official Languages - Niuean and English
Currency - New Zealand Dollar
EEZ - 390,000 sq km
Political system - Parliamentary democracy
National government - The government comprises four ministers, led by the Premier - National legislature - Unicameral Assembly made up of 20 members, of whom 14 are village representatives and 6 from a Common Roll
Last election - 7 June 2008
Next election due - mid 2011
Head of State - The Queen in Right of New Zealand is the Head of State represented by the Governor-General of New Zealand
Head of Government - Head of Government is Premier Toke Talagi.
On 18 June 2008 the new Assembly convened and elected a new Premier Toke Talagi who appointed three other Ministers to form the Cabinet
GDP - NZ$17.2 million (2003) - GDP breakdown - Government non-market 40%, formal cash economy 25% - GDP per capita - NZ$10,048 (2003) - Exports - NZ$0.264 million for year ended June 2006 - Imports - NZ$9.935 million for year ended June 2006 - Main exports - Fish, taro, noni, honey, vanilla - Current account - N/A - Inflation - 0.38% (2005) - Gross external debt - N/A - Budget balance - The 2005/06 Budget appeared balanced when passed, but required an advance of NZ$1.4 million on 2006/07 funding to enable the Government of Niue to break even. A similar sized deficit is in prospect in 2006/07 unless Niue moves urgently to address its problems.
NZ Exports (FOB) - NZ$10.022 million (year ended December 2007) - Main Exports - Meat, other food, building materials, machinery and equipment, petrol, beverages - NZ Imports (CIF) - NZ$1.003m (year ended December 2007) - Main Imports - Taro, fish, noni, vanilla
New Zealand and Niue have a special relationship. It is founded on close historical ties, unique constitutional arrangements and a common citizenship and currency. Niue became a British protectorate in 1900 and was annexed by New Zealand in 1901. In 1974, following an act of self-determination under United Nations auspices, the people of Niue adopted a Constitution providing for full self-government in free association with New Zealand, a status distinct from that of full independence.
Niue is believed to have been settled about a thousand years ago from Samoa, Tonga and the Cook Islands. Captain Cook was the first European known to have visited the island in 1774. In 1830 well-known missionary John Williams was repulsed. A Samoa-trained Niuean missionary, Peniamina, landed in 1846, converted some of the islanders to Christianity and established the first Christian (ie London Missionary Society - LMS) foothold on the island. The first resident English missionary, George Lawes, arrived in 1861. Missionaries, especially the Lawes brothers, George (1861-72) and Frank (1868-1910), were instrumental in establishing a central government (a fono and an elected king), Western-style health clinics, a legal system and training on the island. Niueans were subject to blackbirding by slave traders in the 1860s.
The Island fono elected Mataio Tuitogia, a chief from Alofi, as the first king of the island. His successor, Fataaiki, petitioned Queen Victoria to take the island under her protection. When Fataaiki died in 1896, King Togia continued to petition Britain for protection. Niue became a British colony in 1900 and was annexed by New Zealand in 1901. Following protestation from Togia and the fono at New Zealand's administration of Niue as part of the Cook Islands group, a separate New Zealand administrative group was established for Niue in 1903.
Niue became self-governing in free association with New Zealand under the Niue Constitution Act (1974).
Population decline is a key concern for Niue. Niue's total population, as enumerated in the 2006 Census, was 1,625 down from around 5,000 in the 1960s and down by 10 percent on the 2001 census. At the time of the 2006 New Zealand census, 22,500 respondents self-identified themselves as Niueans. Social pressures, employment, educational opportunities and, now, family ties draw Niueans to New Zealand. Maintaining a vital community on-island has become a key objective for the Niue and New Zealand governments.
Elections for the 20 member Legislative Assembly are held every three years. The most recent was on 7 June 2008. The Assembly’s members are divided between 14 village constituency members and six Common Roll members.
At this election, nine village constituency members were re-elected unopposed. This included the outgoing Premier, Hon Young Vivian (Hakupu) and the three other Cabinet members, Hon Fisa Pihigia (Tuapa), Hon Bill Va’akafi Motufoou (Mutulau) and Hon Va’aiga Tukuitonga (Alofi North). Eighteen candidates contested the six Common Roll positions. From a total of 798 voters the results were:
The new Assembly convened on 18 June 2008. After members were sworn in, voting for a new Premier took place. Hon Toke Talagi received 14 votes to five for Hon Young Vivian and was elected Premier of Niue for the period 2008 to 2011.
On 18 June Premier Talagi announced that the following Assembly members would act as Ministers in his Government:
Niue's economy is very fragile. It faces many constraints: limited access to reliable air services, shortages of skilled professionals and entrepreneurial expertise, limited land and poor soil quality. Natural disasters, especially cyclones, have long lasting impact. Its economic difficulties are exacerbated by, and reflected in, the long-term decline of its population.
The Niue Government has 50% joint ventures with Auckland’s Reef Group in fish processing and noni farming. Both businesses were officially opened in October 2004 and have assisted with employment and export earnings.
The 2006/07 Budget, balanced on paper, disguised a sizeable deficit in reality. The 2005/06 situation was only managed through an advance of NZAID funds from Niue’s future entitlements. A reluctance to continue to provide additional funding and the use of Niue’s financial reserves in earlier years forced its Government to consider serious measures to address the current situation.
The 2006/07 situation reflects a continuation of Budget problems in recent years. While some of this is due to fluctuations in revenue, as Niue cashes in on short term earning opportunities, the Government has found it difficult to balance its social aspirations against its financial realities and to provide an environment in which the private sector can begin to contribute more substantially to the economy.
The productive sector has traditionally been small although Reef's operations, the most significant private foreign investment on the island to date, have had an impact on this. Private sector subsistence activity accounted for approximately one quarter of GDP in 2003 and subsistence agriculture and fishing will remain important with the staple crop, taro, also an important export commodity. Other agricultural commodities produced include small amounts of honey and vanilla.
There is no manufacturing on Niue. The tertiary sector consists of a number of retail outlets, hire firms (mainly cars and bicycles) and accommodation facilities.
The government is the main employer on the island: it had 421 employees on its payroll in June 2006. The government has a number of trading arms - eg the port, bond store, telecom, public works and the power corporation. top of page
For all practical purposes Niue conducts its own external relations, including establishing formal diplomatic relations with other states. It participates as a full member of the Pacific Islands Forum, the Forum Fisheries Agency (FFA), the Pacific Community (SPC), and in other regional and international meetings. It was admitted as a full member of the United Nations Educational, Scientific and Cultural Organisation (UNESCO) in 1993, the World Health Organisation (WHO) in 1994 and the Food and Agriculture Organisation (FAO) 1999. Niue is a signatory to a number of international agreements including the Cotonou Agreement, the Chemical Weapons Convention and the Law of the Sea Convention.
New Zealand is the largest bilateral donor to Niue. Other donors include Australia, China, France and various multilateral organisations. The indicative total bilateral New Zealand Official Development Assistance (ODA) to Niue for 2007/08 is $9.1 million, of which $7.1 million is to assist the Government of Niue in meeting the demands of its current budget. A further $20 million over 5 years for infrastructure and economic development was allocated as part of the HKHMA (see above) and $10 million over 5 years for developing partnership relationships with New Zealand government agencies. New Zealand also contributes to the Niue International Trust Fund from time to time. The current balance of this Fund is around $23 million.
Progress on the site of the Niue Public Service Building project underway in Niue March 2008.
Given the central importance of continued and effective air services in supporting Niue's continued viability, economic development and people-to-people links, the New Zealand government was closely involved in the negotiation in 2005 of an Agreement for Provision of Air Services to Niue. An Agreement was signed between Niue and Air New Zealand in Auckland in October 2005 and has been renewed subsequently on an annual basis. In November 2007 Air New Zealand advised the Government of Niue that it proposed a commitment for a further three years. The certainty of this air service has been crucial in encouraging longer term business commitments on Niue. Air New Zealand's weekly service commenced in November 2005, coinciding with the phase-out of Polynesian Airlines’ services to the island.
Reef Shipping provides a cargo service to and from New Zealand every 3 to 4 weeks and also supplies fuel to the island and exports products from its fish and noni processing joint ventures.
In terms of the 1974 Constitution Act, New Zealand is responsible for Niue's defence. By convention this responsibility would only be exercised at the request of the Niue Government. A Defence Adviser based in Wellington (currently Commander Shaun Fogarty) is accredited to Niue. Surveillance flights of Niue's EEZ are carried out by the Royal New Zealand Air Force on a regular basis. The New Zealand Army held a major exercise, Operation Tropic Twilight, in Niue from May until July 2005 and carried out a number of community support and construction programmes in the wake of Cyclone Heta the previous year.
There is one primary school (including a pre-school) and one high school on Niue and both have rolls of around 200. Niue follows the New Zealand curriculum and Niue High School has been accredited by the New Zealand Qualifications Authority. Niue has implemented Levels 1 and 2 of the New Zealand National Certificate in Educational Achievement (NCEA), in keeping with the changes made in New Zealand senior secondary assessment, and is moving on to implement Level 3. Form 7 was introduced at High School in 2004.top of page
Niueans are New Zealand citizens. They travel on New Zealand passports and have automatic right of entry into New Zealand. In the 2006 New Zealand census 22,500 people in New Zealand identified themselves as of Niuean descent.
Niue's declining population and its need to maintain a viable population level has led to consideration by Niue's government of changes to current immigration laws. Among the options being considered is granting to all New Zealand citizens the right to enter and live in Niue. Other nationalities are required to apply for a 30 day permit on arrival in Niue.
New Zealanders and returning Niueans are the main visitors to the island. Tourist numbers to Niue are not high as the attractions the island offers are different to the normal “South Pacific experience”. Tourist numbers fell from 1400 in 2003 to 723 in 2004 due in large part to the effects of Cyclone Heta but increased to 2,800 in 2005 and 3,000 in 2006. In 2007, tourist numbers increased to 3,500, indicating that the introduction of a more reliable air service with cheaper fares has primarily benefited Niuean travellers rather than visitors. Considerable efforts are still being made to rebuild the tourism sector following Cyclone Heta and to provide more mid-level accommodation.
Under the South Pacific Area Regional Trade and Economic Cooperation Agreement (SPARTECA) New Zealand permits duty free and unrestricted access to goods from Niue, subject to rules of origin requirements. Most imports into Niue are subject to a 10 percent import levy.
In September 2002 Niue became the seventh country to ratify the Pacific Agreement on Closer Economic Relations (PACER), enabling the agreement to come into force. The PACER is a framework agreement that sets an outline for future development of trade and economic relations across the whole of the Forum region. It does not contain substantive liberalisation provisions. It envisages a step-by-step process of trade liberalisation, starting with a subsidiary-free trade agreement in goods among Pacific Island countries and foreshadows the future negotiation of Forum-wide reciprocal free trade arrangements (ie an FTA arrangement including Australia and New Zealand). The PACER also includes provisions on trade facilitation and on financial and technical assistance. top of page
NIUE CONSTITUTION ACT 1974 Act 42 of 1974 (NZ) - 19 October 1974 Analysis
An Act to make provision for
self-government by the people of Niue, and to provide a constitution for Niue
[29 August 1974]
[The State Services Act 1962 was repealed by the State Sector Act 1988].
The Safetravel website provides a travel advisory for travellers to Niue [external link].
