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Government to consider, provide and facilitate the provision of funding for business recovery and rehab programmes.
II.
Assessment Survey on Damages Following the 16/11 Riot
An assessment survey was conducted by the Ministry to identify the extent of damages and appropriate measures for the
immediate recovery of the affected businesses. Annex 1 provides the results of this survey. As indicated, the current cost value
of losses to the affected businesses is estimated at around T$117m. However, this is only the current cost value, the
replacement cost value would be much higher, say with a 50%-60% premium. And with likely imported inflationary effects, the
final replacement cost value would be in the vicinity of T$200m.
Please note that the Ministry will continue to review this survey to establish more accurate and up-to-date information on key
issues vital to the recovery of businesses. Your business will be consistently updated on the progress of these efforts. At the
same time, the Ministry is conducting a separate survey on job losses by the affected businesses, and their impact on individual
families.
III.
Communication and Prioritization of Immediate Business Recovery Needs
As of date, the immediate needs for business recovery identified in the aforementioned assessment survey and consultative
meetings, have been tabled as a priority agenda item at meetings of Cabinet and Privy Council. Meetings with the Ministry of
Finance and the Cabinet Reconstruction Sub-Committee have also been called to discuss the issues raised by the affected
businesses.
IV.
Financial Assistance for Containers at the Wharf
In collaboration with the Ministry of Finance, Customs and Inland Revenue, MLCI has formed a Sub-Committee to assess and
recommend financial assistance for immediate uplifting of containers currently located or about to land at the Wharf. This effort is
a response to the call from the affected businesses to replenish their lost stock, and to immediately re-commence operation.
V.
Accessibility to Businesses inside the Proclaimed Restricted Zone
Despite difficulties because of security reasons, the Ministry continues to work closely with the TDF and TPF to facilitate
accessibility to the damaged premises. It is now stated that lifting of restriction to damaged premises would be made on or
around 5th December.
As of Tuesday November 27th, the Ministry has recalled all its staff members in an effort to efficiently and effectively carry out the
much needed tasks relating to immediate recovery of businesses in the Nukualofa area.
In closing, I would like to take this opportunity to sincerely thank you all for your cooperation during this very difficult time. In
particular, I would like to thank you for your cooperation with the assessment survey, and its subsequent reviews. Your input not
only forms the basis for governments action on its business recovery plan but also provides the threshold for governments
negotiations with the donor community. My Ministry and staff are committed to forming a closer working partnership with you all,
and we will continue to inform you on the progress of our discussions with the Ministry of Finance and the donor community in
the effort to expedite the recovery of your businesses.
I wish all of you the best during this trying time.
Sincerely
ANNEX 1
SUMMARY REPORT ON ASSESSMENT SURVEY OF DAMAGES TO
BUSINESSES FOLLOWING THE NOVEMBER 16th RIOT
Objective of Assessment Survey:
A Ministry of Labour, Commerce & Industries effort to assist the immediate recovery and reconstruction of businesses
affected by the November 16th riot. Objectives were to identify:
the extent of damages caused to businesses following the riot
measures for the immediate recovery of these enterprises
2. Assessment Survey Data Collection Methodology:
Methodology
:
Questionnaires
Target Population :
Enterprises whose business premises were damaged during the November 16th riot.
(144 businesses incl. 33 enterprises owned by Chinese or naturalized Tongans of
Chinese origin).
NB: - 15 businesses are not included in the survey analysis (theses businesses were not located or had failed to submit
questionnaire forms)
- Survey analysis does not include damages to public infrastructure or government offices.
3. Assessment Survey Results:
i)
T$106,659,316 plus 10% contingency to cover errors and other unknown factors, thus
TOTAL ESTIMATED COST OF DAMAGES TO BUSINESSES : T$117,325,248
Note: the 10% contingency covers unknown costs such as the 15 affected businesses that have not provided
information required by the survey analysis, the cost of losses to other businesses whose premises were not
damaged but are affected by the incident, and the value of imported inventory that are yet to be cleared by damaged
businesses from the wharf.
Detailed information on the composition of the stated estimated total cost is as follows:
NB: A number of businesses failed to provide details on the cost of damages to their ventures thus explaining any
discrepancies in the calculation of each detailed cost relative to the above stated total cost of damages.
:
:
:
:
:
T$22,999,393
T$38,164,011
T$26,500,860
T$17,570,300
T$6,072,050
19% are unsure of whether they are insured against riots or not (25 businesses).
NB: - Total approximate cost of damages to businesses insured against riots: T$21,126,461
- Total estimated cost of damages to businesses not insured against riots: T$85,532,855
v) Businesses Willingness to Continue after the riot:
99% (128 businesses) are willing to continue business
1% (1 enterprise) is not certain on whether to continue operation or not.
vi) Immediate Needs for business recovery:
1. Financial Support (30.29%)
2. Locate new facility/location and equipment to continue operation (23.56%)
3. Tax concessions and exemptions from payments of Consumption Tax and Duty (9.62%)
4. Immediate access to businesses within the restricted areas of Nukualofa and to begin operation
immediately (7.21%)
5. Recover lost assets and replenish lost stock (5.77%)
6. Loan Assistance (soft loans, relax loan repayments, lift ceiling on loans (5.29%)
7. Political stability and Security (4.81%)
8. Government Assistance/Incentives to generate business (security, development license renewal, increase
land lease period, value of the paanga not to drop further) (4.33%)
9. Assistance for provision of basic needs (food, living space, transportation) (3.37%)
10. Utility connection (telephone, fax, internet) (1.92%)
11. Ensure that insurance covers losses (1.44%)
12. Subsidiary Staff Assistance (0.96%)
13. Government and other businesses to immediately settle debts (0.48%)
14. Extend Business Visa (0.48%)
15. Assessment of building structure and whether demolition is required (0.48%)
vii) Nature of Businesses Damaged in the November 16th Riot:
NB: Several businesses operate different branches in different sectors. This would explain any discrepancies in the
sum of the below given numbers relative to the total number of businesses surveyed.
Retail businesses
- 31% (54 businesses)
Entertainment & Food Vendors
- 10% (17 businesses)
Supermarket/Wholesale enterprises
- 9% (16 businesses)
Rental businesses (incl. real estates)
- 8% (14 businesses)
Semi-Professional Services
- 8% (14 businesses)
(e.g: hair salons, security services)
Professional Services
- 7% (11 businesses)
(e.g: consultancy services, accountancy services)
Tourism operators
- 5% (8 businesses)
(incl. travel/tour agencies)
Financial services
- 5% (8 businesses)
(incl. commercial banks)
Information/Communication Services
- 4% (6 businesses)
(incl. newspapers, communication services, etc)
Engineering & Electronic Repair Services 3% (5 businesses)
NGOs
- 3% (5 businesses)
Manufacturing Enterprises
- 2% (4 businesses)
Construction Services
- 2% (3 businesses)
Transportation Services
- 2% (3 businesses)
(incl. shipping agencies, airlines)
Power Generation
- 1% (1 business)
2.
Appendices:
1. Graphic summary of survey data
Appendix 1: Graphic Summary of Survey Data
Insurance Status
2% 1%
39%
58%
Insured Businesses
Non-Insured Businesses
Not Sure
Not Covered
Willing
Not Certain
99%
New facility/location
(furniture,equipment)
23.56%
Funding/financial support
30.29%
5%
7%
Information/Communication
Retail v entures
Serv ices
31%
4%
Entertainment & Food
Vendors
10%
Rental Businesses
8%
8%
Manufacturing enterprises
Engineering/Electronic repair
2%
serv ices
Supermarket/Wholesale
Construction
Businesses
2%
3%
9%