Foreign Exchange Control

The act has been criticised by businesses but Mr Tu'ionetoa said it was aimed at ensuring Tonga has sufficient foreign reserves.

Businesses fear it will undermine their activities and at least one is promising to cut back substantially.

Mr Tu'ionetoa said previously many exporters didn't bring the earnings back into the country and the act requires that up to 60 percent of profits should be repatriated.

The minister said while the changes had been made for the benefit of all the country he was willing to discuss the businesses concerns with them.

The Foreign Exchange Control Act came into force in November and there has been growing concern since, among the local business community.

One company, Pacific Sunrise Fishing, which employs 75 people and operates six fishing vessels, said it will have to cut back its operations because of the claw back effects of the legislation.

Former minister, 'Aisake Eke, said the government has to re-think the legislation and this time keep the people affected in the loop.