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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