Government allocates additional funding for roads, healthcare, and renewable energy

Infrastructure Cook Islands receives a $400,000 boost to complete road works around Rarotonga, while pharmaceutical needs see an increase of $280,000 in the latest Supplementary Budget.

Prime
Minister Mark Brown tabled the Appropriation Amendment Bill 2024 in Parliament
yesterday, outlining the proposed increases. The Bill was subsequently referred
to the Public Accounts Committee which will scrutinise and report on the Bill
when Parliament reconvenes on February 28.

The
initial budget for 2024/25, passed last June, totalled $325,610,471. As per the
Amendment Bill, this figure will rise to $342,179,552.

Brown
explained the government’s request for an approximately $17 million increase in
appropriation, funded by additional tax revenue and development partner
support.

He
emphasised that this increase aims to enhance public services and strengthen
infrastructure in both Rarotonga and the Pa Enua.

Approximately
$9.3 million of the additional funds will be allocated to various agencies to
improve service delivery, while $7.3 million will be directed towards
infrastructure projects.

The
Prime Minister expressed confidence in submitting the Supplementary Budget,
highlighting the government’s commitment to improving the lives of Cook
Islanders.

He
explained that the Cook Islands Constitution allows for additional funding
allocations, without parliamentary approval, up to a maximum of 1.5 per cent of
the total budgetary appropriation.

As
of January 2024, executive approvals totalling $3.4 million had been granted to
support key initiatives throughout the financial year.

Recognising
the crucial role of healthcare and the rising demand for patient referrals,
both within Rarotonga and to New Zealand, Brown said the government increased
funding by $1 million to ensure a robust patient referral system. This includes
recent policy changes expanding coverage to private healthcare providers, with
an additional $800,000 allocated in the Supplementary Budget.

The
Appropriation Amendment Bill also proposes funding for other key priorities.

Infrastructure
Cook Islands will receive $400,000 to complete essential road and drainage
maintenance work for the remainder of the financial year, ensuring the
completion of roads around the island, including Puaikura.

Addressing
rising pharmaceutical costs, the budget allocates an additional $280,000 this
year to guarantee access to essential medications.

Following
the recent passing of the Narcotic and Misuse of Drugs Amendment Act in 2023,
which legalised the importation of medicinal cannabis, Brown said the
government allocated nearly $60,000 to support related initiatives proposed by
the Ministry of Health. These activities include creating new regulations and
policies, training healthcare personnel and border/law enforcement agencies,
and establishing standard operating procedures for healthcare professionals.

The
Seabed Minerals Authority receives a $310,000 boost to enhance stakeholder
engagement and advance the seabed mineral sector through legal and
environmental expertise.

Another
budget allocation addresses renewable energy in the Pa Enua, with the
government urgently allocating $220,000 to replace essential components of
solar power systems.

The
Ministry of Agriculture receives $280,000 to acquire machinery for community
projects on Rarotonga.

Brown
said: “As we move forward, it is
crucial that we use these additional funds wisely, investing in projects and
services that will further strengthen Cook Islands economy, benefitting our
people, communities and the tourism industry that plays a pivotal role in our
nation’s prosperity.”

“I
believe this Supplementary Budget is true to that goal and continues to deliver
for our country.”