Public consultations on establishing a Sovereign Wealth Fund, “a long-term savings account for future generations of the Cook Islands”, begin this evening at 6pm in Vaka Takitumu at the Matavera CICC Sunday School Hall.

The Ministry of Finance and Economic Management (MFEM) is leading the consultations and seeking feedback from the community.

Dean Yarrall, MFEM chief economist, expressed that the primary motivation behind the government plan to create a Sovereign Wealth Fund is to “set up a vehicle to manage the Cook Islands wealth for the long term”.

According to a MFEM statement, the Sovereign Wealth Fund will hold funds that will earn interest over time, providing a source of funds for key areas in the future. It added that this income will be restricted to ensure the fund continues to grow.

Seabed mineral harvesting, government budget transfers and environmental fines are some of the potential revenue sources for the Fund.

“Ko tētaʻi au tuʻanga ka rauka mai te moni koʻikoʻi no te SWF a te Kūki ʻĀirani ko ia ko te ʻakapouanga moni kavamani, moni tūtaki ki te au ʻakaʻapaʻanga aorangi, e te kokotiʻanga mīnera papa moana.”

The statement also explains that the Cook Islands will benefit in several ways from establishing a Sovereign Wealth Fund.

They include intergenerational equity to ensure that the country’s resources and economic benefits are shared fairly across multiple generations, promoting long-term prosperity; economic stability to provide a financial buffer against economic downturns, helping to mitigate the impact of external economic pressures, like the recent Covid 19 pandemic, and natural disasters and saving for the future for the benefit of future generations, among others.

MFEM is hoping to gain valuable insights from the people of the Cook Islands through the public consultations.

“This collaborative approach aims to secure the financial future for our children. The proposal includes the creation of three accounts, each designed to accumulate savings for specific purposes.”

​The public consultations begin tonight, Wednesday, July 17th, at 6pm at the Matavera CICC Sunday School Hall in Vaka Takitumu.  They continue on Thursday, July 18, at 6pm at the Sinai Hall in Tupapa (Vaka Te Au O Tonga) and conclude on Tuesday, July 23, at 6pm at the Aroa Nui Hall in Arorangi (Vaka Puaikura). All sessions run from 6pm to 7.30pm.