19 Nov 2012

Cook Islands plans sovereign fund for seabed mining revenues

8:07 pm on 19 November 2012

The Cook Islands Government is planning the establishment of a sovereign wealth fund for the storing of revenues generated by seabed mining.

The Finance Minister, Mark Brown, this week released a report by the International Monetary Fund on its recommendations on the design of a sovereign wealth fund.

The policy objectives of the fund are to protect in perpetuity government revenues resulting from seabed mineral mining, to stabilise fiscal revenues from fluctuations and enhance returns on reserves.

The IMF recommends legislation be structured in the most vigorous manner possible to protect the long-term stability of the fund and to avoid short-term diversion of fund resources.

It also recommends clear and consistent principles be established for allocating the revenues.