Offshore bankers in the Cook Islands have now spoken out in support of Dr Maoate's comments made at the OECD, Commonwealth and Caribbean conference on harmful tax competition in Barbados earlier this month when he was chosen as one of two Pacific Islands representatives among 13 from around the world to serve on a Task Force Working Group on Harmful Tax Practices.

During the conference Dr Maoate, who is also Finance Minister for the Cook Islands, told delegates that offshore banks in his country have not actively promoted the Cook Islands as a tax haven for over 15 years and there is wide spread discontent among the industy. He said: 'The Cook Islands does not sit comfortably with a selective morality, which jeopardizes future cooperative consultation and the sovereign right to develop and implement policies.'

John McFadzien, general counsel for the offshore trust company, Southpac Group, told the Cook Islands News agency: 'Southpac fully supports Government’s firm stance on the one hand, and its willingness to enter into a dialogue with the OECD on the other.' Trustee Companies Association President, Reuben Tylor, also commented on the government's stance, saying it had the 'support of the industry.'

McFadzien said three positive principles emerged from the conference: 'First, the fact that the meeting was held suggests that the OECD may be entering into a more conciliatory phase of conducting genuine dialogue with countries it sees as conducting harmful tax practices.'

Secondly, the Cook Islands government turned out in great force with Financial Secretary Kevin Carr and the Commissioner for Offshore Financial Services, Mathilda Uhrle. Thus showing its recognition of the economic importance that the country's offshore industry holds which 'almost certainly helped the OECD members appreciate the seriousness with which the Cook Islands has taken their concerns and was likely to have been a factor which lead to the appointment of the Cook Islands to the working group.'

Thirdly, McFadzien states: 'Southpac appreciates the stand taken by the Prime Minister in his carefully worded address to the meeting. His address put tax issues in perspective with the other problems in the world which also need to be addressed. Dr Maoate also explained how difficult it is for small island states to diversify their economies.'