HONIARA (SIBC/PINA) — Solomons Central Bank Gov. Rick Hou says a no-confidence move against Prime Minister Allan Kemakeza’s government is “foolish” if related to the devaluation of the nation’s dollar.
The parliamentary opposition gave notice of its intention to call the vote after Wednesday following the 25 percent devaluation.
Hou said he “cannot see how anyone could regard the government’s actions as irresponsible,” because devaluation is necessary to stop the country running out of external reserves.
SIBC News was unable to get details of what the opposition’s line of attack will be.
But it gave notice of the no-confidence motion on the day on which the government’s first 100 days in office had lapsed.
The government had promised, among other things, total disarmament of former militants within its first 100 days, a promise it is far from achieving. Hundreds of guns are still unaccounted for despite the peace agreement ending two years of ethnic conflict.
Hou said there is an urgent need for the international community to restore aid to the country.
Since the 2000 coup, aid donors have withheld funds. They said they need proof that the Solomon Islands is addressing law and order problems and has re-established credible financial management.
Last Tuesday, the government brought down a budget devaluing the currency and cutting the public sector payroll. It also announced plans to restructure and reinvigorate financial institutions.
Hou said the international community can no longer stand by and watch the Solomon Islands without supporting the government’s actions.
Meanwhile, the Consumer Affairs and Price Control Division in the Ministry of Commerce has called for businesshouses not to increase their prices on goods imported before the devaluation.
Director Oliver Jino said the division has received a lot of complaints from the public over an overnight increases in prices in shops. He said the division has been assured by Solrice that it will not increase the price of rice until its pre-devaluation stock is depleted.
Jino said it is unreasonable for wholesalers and retailers to put up prices before new stocks arrive. He said that at the moment no ships have yet come in with new cargo and shipments.
The government will consider increasing the capacity of the Mataniko water supply to meet the demands of Honiara residents, the prime minister said.
This follows the repeated closure of the Kongulai water source in West Honiara by landowners who say the government is not paying them money they are owed.
Kemakeza said that because 75 percent of Honiara consumers rely on the Kongulai water source, the government is considering increasing supply from Mataniko in Central Honiara.
He said that the Kongulai water source comes under an agreement in which water is charged according to the quantity supplied.
