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Cook Islands Government Relaxes Freeze On Investment Board
by Carla Johnson, Investors Offshore.com

17 September 2001

After only a week, the Cook Islands government has relaxed the freeze on Development Investment Board (DIB) activities following complaints from businesses.

On September 6th, the Islands' Prime Minister, Terepai Maote, launched a full review into the DIB, following complaints from a local couple that it had failed to protect their business interests, and was biased towards foreign businesses. This concern had previously been expressed by New Alliance Party leader, Norman George, who launched an angry attack on expatriates and foreign investors at the end of August.

In response, the government set up a committee, headed by former Chamber President Don Beer Jr, to review investment legislation, code, policies, and the decisions made by the DIB over the last year. While the review was taking place, all operations and foreign investment applications were to be put on hold, said the Prime Minister.

However, the DIB protested the freeze, saying that delaying DIB decisions could prove inconvenient and costly for businesses, crippling their ability to continue with planned expansion and development. Board Chairman, John McFadzien said last week that several local businesses had expressed concern at the announcement of the freeze as well, worried about their applications for import levy and duty concessions.


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