Niue sees big satellite future

By Staff and reports

NIUE (CNN) -- The tiny Pacific island-state of Niue has unveiled plans to become a satellite launch center.

The five-year $300 million plan would create new jobs and "will not cost Niue anything," Niue premier San Lakatani told the Pasifika Times.

Such services would introduce a new revenue stream to Niue, the world's smallest self-governing state.

To date, it has relied on business registrations and the sale of postage stamps as significant sources of income.

Niue is in the Pacific Ocean, about 500 kilometers northeast of Tonga and 2400 kilometers northeast of New Zealand.

'There to stay'

"The Niue satellite use can be leased out," said Lakatani. "There'll be lots of money in the future."

"It will be a multi-milion project and it will be there to stay."

The satellite would be built and funded by U.S.-based investors.

Niue expects to receive 35 percent of the profit from the satellite's use, with the remainder going to consultants and the satellite's makers.

Call centers would be set up on the tiny island-state to receive satellite communications and, according to Lakatani, employ "hundreds of peoples."

"We have 440 pbulic servants. Half of them may go to the new IT business," he said.

The premier added that the project is similar to TongaSat, a successful satellite business operated by the island neighbor.

Niue's cash-strapped government is looking for an alternative revenue stream after the U.S. imposed trading sanctions in January because of Niue's tax haven status.

The island-state licenses six offshore banks, which the Organization for Economic Cooperation and Development (OECD) is trying to close down.

Lakatani said the introduction of the sanctions would be like "cutting the throat of Niue."