Tuvalu - Trust Fund

Uploaded by AusAIDvideo on 04.04.2011

MAN: The government came up with the idea of a trust fund,
with its main purpose to finance the budget deficit -
the differences between what we were getting
and the difference between the revenue and the expenditures.
And also, to give some degree of autonomy, self-reliance,
you know, as an independent country.
For a country to be fully independent,
you need to be economically independent.
Tar-sealed roads on the capital was being able to be financed
because of the high revenues from the Tuvalu Trust Fund.
The Tuvalu Trust Fund plays a very important role
in underpinning the budget
and maintaining the government services to the public.
For example, the 'Nivaga', the boat that goes out to the outer islands,
you know, people pay highly subsidised fares
to travel between islands,
and the government wouldn't have been able to provide that service
without the help of the Tuvalu Trust Fund.
And like other services as well -
the salaries of the civil servants,
the improved service at the hospital, Princess Margaret Hospital,
improved level of teaching, for example.
Without the Tuvalu Trust Fund,
maybe we wouldn't have this level of service.
We have a board of directors,
which consists of the minister of finance as the chairman
and, of course, the two other representatives
from the good government of Australia and New Zealand,
because they have been the main contributors to the fund.
I have been thinking how to adjust ourself to situations
where we can, you know, live on what we have, yeah,
within our hands.
And I think the issue here is to live within our means, yeah?
Although it was established through donor donations,
including Tuvalu's contributions,
the revenue that we are getting from it annually,
you know, it's up to Tuvalu, to the government of the day,
how to spend those.
The trust fund is being invested globally
through Australian-based fund managers.
Although they are based in Australia,
we are also accessible to international funds
through those managers.
Australia has been one of the major contributing...
..contributors into the fund,
and that has been well appreciated.