HA to meet defaulting owners

Fiji Live News - May 24, 2010 

The Housing Authority of Fiji has embarked on an initiative to provide defaulting property owners with a final chance to retain their homes.

The authority last month met with 27 defaulting property owners in the central and western divisions to restructure their repayments and identify solutions on arrears.

They plan to meet with more than 150 other customers.

Housing Authority spokeswoman Shirley Tagi said their primary objective is to help the homeowner work out an arrangement to avoid foreclosure and allow the homeowner to stay in his or her home.

“We are willing to listen and find mutually acceptable solutions within reasonable boundaries as long as our customers’ financial situation is well-substantiated,” she said.

Tagi said they will be contacting their default customers on a case to case basis over the next few weeks to identify effective solutions based on genuine need.

“This ensures beneficial outcomes for both parties and prevents anyone from becoming a chronic defaulter, or worse becoming homeless,” she added.

This will be done before homes are placed on mortgagee sale or put up for auction.

Tagi said the authority could not afford to sustain its services if non-performing loans kept escalating.

“We are now calling on default customers to meet with us and discuss the options before it is too late.”

Meetings are scheduled for customers in Suva for May 25, 27 and 29 and in Lautoka from June 3 to 5.

Fiji Inflation Risk

by Shalveen Chand

Fiji Times - Monday, May 24, 2010

INCREASED liquidity in Fiji's banking system poses risks of inflation and loss of competitiveness, while high State debt and contingent liabilities, together with 70 per cent of GDP raise concerns about fiscal sustainability, says the International Monetary Fund.

The IMF, in its situation report released last week, said economic growth in Fiji of 2 per cent was likely in 2010, driven by a rebound in tourism, the global recovery, and rebuilding after the floods.

Fiji, however, faces considerable downside risks.

The growth outlook remains highly uncertain. The IMF cited volatility of commodity prices, the risk of natural disasters and the complex structural reform agenda.

The IMF has recommended tighter fiscal policy to safeguard macroeconomic stability and ensure sustainability. A reduction in the budget deficit to about 2 per cent of GDP in 2010 has been suggested. This excludes the cost of civil service reform with further consolidation over the medium-term.

Fiji agreed on the need for medium-term consolidation, but at a gradual pace.

The 2010 budget targets a small increase in the deficit to 3.5 per cent of GDP, with consolidation planned for 2011 and beyond.

The IMF also noted that the public enterprises were a source of significant fiscal risk and to eliminate losses and encourage private investment in these areas, tariffs for all goods and services provided by public enterprises should be raised to full cost recovery levels.

The report said the Fiji Electricity Authority's tariffs, among the lowest in the region, should be raised to reflect the cost of imported fuel and adjusted over time in line with changes in import costs.

Tariff adjustments should be accompanied by well-targeted transfers to protect the poor.

IMF said that a more flexible exchange rate would help absorb external shocks and protect Fiji's reserve position.

The authorities are considering raising tariffs, strengthening oversight of public enterprises, and moving regulatory functions to an independent entity to improve governance.

In a meeting held between IMF and Fiji, it has been agreed that monetary policy should be tightened to ensure inflation returns to low levels and protect foreign exchange reserves.

The Reserve Bank of Fiji (RBF) recently increased banks' required reserves and removed ceilings on banks' lending rates and spreads. The RBF is considering further steps to tighten liquidity, but did not see the need for a substantial increase in interest rates given the fragile economic outlook.

The authorities are evaluating the possibility of a more flexible exchange rate arrangement. IMF said that a more flexible exchange rate would help absorb external shocks and protect Fiji's reserve position.

Employers owe FNPF $7.6 million

by Rejieli Kikau

Fiji Times - Monday, May 24, 2010

MORE than 100 employers owe $7.65million to the Fiji National Provident Fund for outstanding contributions, says FNPF chief executive officer Aisake Taito.

In an advertisement last Saturday, FNPF gave the employers 10 days to clear all outstanding FNPF contributions owed to their workers.

"This is another option explored by the fund to recover unpaid contributions from defaulting employers," he said.

"We're now asking them to do the right thing to their employees by complying with their statutory obligation as prescribed under the FNPF Act," he said.

He said the employers needed to pay FNPF contributions as these had been deducted off workers' wages and income.

Mr Taito said that was not the first time they were giving employers time to pay up their outstanding arrears to the fund.

"Once an employer has defaulted on payment, we send them reminder notices and our inspectors visit them," he said.

"If they still do not comply, we refer the matter to our enforcement team, who send them demand notices; non-failure to pay these contributions then leads to court action."

He said employers are also surcharged for failing to meet their payment deadline.

Mr Taito said the deadline for contribution deducted in one month, was set to the end of the next. (i.e contributions for April, would be paid before May 31).

He said in the last few weeks they have been publishing names of these employers in the newspapers asking them to pay outstanding contributions.

"The names of these defaulting employers will be forwarded to the Director of Immigration for further action. Specifically, the Immigration Department will also extend the reminder notices to these employers when they try to leave our shores.," he said.

He said the advertisement therefore served as a reminder to these employers to pay-up or make necessary payment arrangement before they intend to travel overseas.

It is believed employers who did not pay up their arrears on time could be placed on a travel ban.

Fiji Economic Growth Downgraded

24 May 2010

Governor of the Reserve Bank of Fiji Sada Reddy

The devastating effects of tropical cyclone Tomas has led to a lower than expected forecast for economic growth this year.

Chairman of the Macroeconomic Policy Committee and Governor of the Reserve Bank of Fiji Sada Reddy has revealed that the domestic economy is now forecast to expand by 1.8 percent in 2010 compared with the 1.9 percent growth announced in November last year.

Reddy said this marginal downward revision to the GDP growth is largely due to Cyclone Tomas earlier this year which greatly affected agriculture in the Northern Division and Eastern Maritime areas.

He said the contraction in the economy projected for 2009 has also been revised to a 2.2 percent decline from the forecast 2.5 percent decline announced in the 2010 National Budget.

Reddy said the improvement is due mainly to better than expected performances in the transport & communication, wholesale & retail trade, public administration & defence, health & social work, education, manufacturing, real estate, other community, social personal services, mining & quarrying, electricity & water and financial sectors.

The RBF Governor said the real GDP growth projections for 2011 and 2012 have been revised downwards to 1.7 percent from 2.4 percent in 2011 and 1.9 percent from 2.5 percent in 2012.

The 2 downward revisions for both years mainly arise from forecast weaker performances in the manufacturing, transport & communication, construction, wholesale & retail trade, real estate and other community, social & personal services sectors.

Speaking on trade Reddy said exports and imports are anticipated to rebound in 2010 by 9.5 and 12.5 percent, respectively.

He said the growth in exports is projected to be underpinned by a growth in re-exports of mineral fuels, gold, mineral water, garments and other domestic exports.

However, Reddy said imports are also expected to increase due to a pick up in domestic demand as growth prospects are expected to improve this year.

Official foreign reserves as at 14th May 2010 were $1.07 billion, equivalent to around 3.4 months of imports of goods and non-factor services.

Fiji faces ‘considerable risks amid growth’

Posted by Pacific in the Media. - May 22, 2010 

Fiji’s GDP is likely to grow 2 percent in 2010 driven by a rebound in tourism and the global recovery but it faces considerable downside risks says a new International Monetary Fund country report.

The report said increased liquidity in the banking system poses risks of inflation and loss of competitiveness while high government debt and contingent liabilities (together 70 percent of GDP) raise concerns about fiscal sustainability.

“The growth outlook remains highly uncertain due to political developments, volatility of commodity prices, the risk of natural disasters, and the complex structural reform agenda,” the report said.

It said the IMF recommended tighter fiscal policy to safeguard macroeconomic stability and ensure sustainability.

A visiting IMF delegation advised a reduction in the budget deficit to about 2 percent of GDP in 2010 – excluding the cost of civil service reform – with further consolidation over the medium-term.

The authorities agreed on the need for medium-term consolidation but at a gradual pace, the report said.

The 2010 budget targets a small increase in the deficit to 3½ percent of GDP with consolidation planned for 2011 and beyond.

The report said the IMF and local authorities agreed that monetary policy should be tightened to ensure inflation returns to low levels and protect foreign exchange reserves.

“The Reserve Bank of Fiji (RBF) recently increased banks’ required reserves and removed ceilings on banks’ lending rates and spreads. The RBF is considering further steps to tighten liquidity, but did not see the need for a substantial increase in interest rates given the fragile economic outlook.”

The report also said that preliminary data on financing shows that as bank lending to government “reached sovereign exposure limits”, the Fiji National Provident Fund provided most of the funding of the fiscal deficit which increased to about 3 percent of GDP in 2009 from near balance in 2008.

Central government debt was expected to rise to 53 percent of GDP by end 2009.

Contingent liabilities arising from “poor performance” of public enterprises were also noted as sizable.

“Net losses of the Fiji Sugar Corporation, Fiji Electricity Authority and Air Pacific amounted to 1 percent of GDP in 2008/09 and entail fiscal risks while central government guarantees of public enterprise debt amount to 15 percent of GDP at end 2008.”

Fiji export levels 'continue to diminish'

Fiji Live News - May 18, 2010 

Fiji’s Attorney General Aiyaz Sayed-Khaiyum says Fiji has been talking about export for more than a decade but unfortunately export levels continue to diminish.

Speaking at the Awareness Seminar for Exporters in Suva yesterday, Sayed-Khaiyum said while there has been a lot of talks about export and import substitution, on the ground, it has been spiraling the other way around.

“This seminar is very important for you to have information on regulatory perspective and also the various other incentives that are available for you exporters to help determine your business matter.

“As a potential exporter, it also helps you to look at your pricing whether you are competitive in your pricing or not.”

Chief Executive Officer of Fiji Islands Trades and Investment Bureau (FTIB) Annie Rogers said there is a lack of awareness on assistance measures for exporters.

She said these included assistance such as the Duty Suspension Scheme (DSS), the Export Financing Facility (EFF) and on export requirements and procedures.

“I hope this seminar will enhance your understanding of trading on the international scene and strengthen your contacts with the agencies that have been mandated to look after your needs as an exporter,” she said. 

Sayed-Khaiyum noted that government has a national export strategy scheme whereby the Ministry of National Planning, Trade and Investment will carry out various assessments to allow people to place themselves in the export market.

Decree to stop Natadola losses

by Elenoa Baselala

Fiji Times - Thursday, May 06, 2010

CABINET has approved the Natadola Development Bay Development decree to plug the erosion of funds through the Natadola development project. The decree cancels former developers Asia Pacific Resorts Limited's (APRIL) foreign investment certificate because of the non-disclosure and misrepresentation of its foreign shareholders.

It also provides for the forfeiture of the shares held by APRIL in Natadola Land Holdings to FNPF Investments Limited.

In addition, all properties presently held by APRIL that formed part of the integrated resort development would be transferred to the property of NBRL.

"This is necessary to enable Natadola Bay Resorts Limited to continue with the development of the Natadola Bay Project and to ensure that meaningful securities are provided by NBRL to FNPF for the monies invested by FNPF...," Tourism head Aiyaz Sayed-Khaiyum said.

"What this will mean is that the problems faced by various subsidiaries of FNPF in acquiring proper ownership and securities to the development carried out by them using the funds of the members will no longer exist.

"Consequentially, the decree excludes any challenges in the courts against the forfeiture of shares, the transfer of property or any decision made by the Minister of Finance or any State official under the decree.

"The decree also terminates various court proceedings in relation to the Natadola Bay Development which have been pending in the courts for a number of years now and it paves the way for NBRL and FNPF to make advancements to the development of Natadola Bay without any legal or administrative hurdles.

"It should be noted, however, that the forfeiture of the shares under the decree will not affect the day-to-day running of the company nor will it affect the rights and obligations of those dealing with the company or those who have contracts with the company except of course HPPL, its directors and shareholders.

"Essentially, what this means is with the implementation of the decree, it means FNPF will have the legal ability to carry out developments in Natadola without any obstruction from shareholders in HPPL, whose participation in the project had led to these various write-offs arguably.

"It also means that there would be the possibility of write-backs into the members' funds with the development of the balance of the land in Natadola."

Thriving business keeps Kasavu ladies busy

Fiji Times - Wednesday, May 05, 2010

+ Enlarge this image

Women of Kasavu in Savusavu, Cakaudrove sell food by the Buca Bay highway

DRIVE by Kasavu outside Savusavu Town in the province of Cakaudrove at about 6am and you won't miss the vehicles parked along the dusty highway as motorists grab a tasty breakfast.

There you will find a group of women who are too busy to even to take a break as they serve customers all day long.

They're kept cutting up pies, cakes, scones and mixing hot drinks for the early morning travellers.

The six women all operate from a family-owned stall where they sell their own pastries and hot drinks.

One of the women, Kiti Whippy, said business started as early as 5am and ended in the evening when there was no more public transport.

"We start with breakfast where we sell pastries and hot drinks to our customers and that also includes morning tea. But at times, customers ask for cooked food so we also sell that before midday. So we are busy throughout the day.

"The business also gives us good money so we have kept to it for the past years," Mrs Whippy said.

She said their income had helped them financially contribute to their respective families and help meet their other obligations.

"We bake our own pastries and sell them at $1 for big pieces," she said.

"All the public buses stop at our stall to grab a bite of our food and we offer drivers tea and food when they stop because they help us a lot by bringing customers who are their passengers to buy from us

Fiji losing out, says expert

Fiji Times - Wednesday, May 05, 2010

FIJI, like other Pacific Island countries, has lost out on potential export earnings to the American and European markets because of tight controls on seafood exports.

New Zealand-based Solution in Seafood Ltd training and specialist adviser Cushla Hogarth made the comment in an interview yesterday at Pacific Harbour where seafood export officers and Fisheries inspectors are attending a two-and-a-half week workshop on the safety of seafood exports.

"Over the years, there are a number of Pacific Island nations that are attempting to export their fisheries products to markets like the US, Europe and Asian market," Ms Hogarth said.

"So what is happening on an international scene is that there is a need for government departments in each of those countries to form a competent authority a government agency that is responsible for the safety of those products being exported."

Ms Hogarth said specialists from the company and other experts had been visiting individual countries where there was a need to train fisheries officials in those countries on the quality standard required by the importing countries, the EU and US in particular.

She said these two countries particularly, sought for seafood exports from the pacific, particularly tuna.

This, she said prompted this programme aimed at training fisheries officials, both in theory and practical, on how to set up their competent authority and how to maintain it; export standards; how to certify seafood products; how to do inspection and audits of seafood products, etcetera.

"Some of them (countries) have actually got up and running with the US because you do not need a competent authority to do that but in time, that will become a requirement," Ms Hogarth said.

"So the Asian market and US market, they have been able to access that but this will mean they can do it much better," she said.

Fisheries officials from Kiribati, PNG, Solomon Islands, Federated States of Micronesia, Samoa, Tonga, Vanuatu, and Marshall Islands are represented at the workshop.

Fiji has yet to send representatives.

In 2007, Fiji's total canned and frozen fish exports were worth around F$100 million in 2007, compared to F$97 million in 2006.

Mahogany harvest ‘unstructured’

Fiji Live News - May 05, 2010

Although Fiji has one of the world’s largest mahogany plantations, the harvesting of these have until now, been carried out in an unstructured manner.

Minister for Public Enterprises Aiyaz Sayed-Khaiyum said this has resulted in minimal returns given to landowners, Fiji Hardwood Corporation Limited, government and the Fijian economy.

The government has thus issued an invitation calling for expressions of interest from interested partied for the purchase of mahogany timber from FHCL.

This move is expected to be under the scheme established by the Mahogany Industry Development Decree.

“The decree has been put in place to facilitate a sustainable harvesting and reforestation programme with the view to create a liberised mahogany industry with maximum returns to Fiji and her people,” he said. 

This decree established the Mahogany Industry Council whose membership comprises of the Prime Minister being the chairperson, the Attorney General, The minster for Forests, and the Chairperson of the Fiji Mahogany Trust as well as one other person appointed by the chairperson.

Sayed-Khaiyum stated that under the decree, the council supervises and directs the maintenance and development of the mahogany industry and also supervises and directs FHCL and the Trust in the performance of their functions. 

“Particularly, the council is responsible under the decree to fix the terms of which mahogany timber in any mahogany plantation land may be sold by FHCL and to direct FHCL to enter into agreement with specified persons for the sale of mahogany timber,” he added.

The minister said the council would also determine how the proceeds of sale are to be distributed amongst landowners and the State and to determine amounts to be set aside for reforestation or other purposes.

Under the decree, FHCL will act on the direction of the council and is responsible for managing all operations in connection with planting, growing,, harvesting and sale of mahogany timber on any mahogany plantation land.

All expressions of interest are expected to be received before June 14 this year.

Likuliku named best overseas resort

Fiji Live News - 02 May 2010

Likuliku ... delivering the Fijian product successfully

Likuliku Lagoon Resort, which opened its doors in 2007 offering Fiji’s first ever over-water bures has been awarded ‘Best Overseas Resort’ prize in the prestigious annual Luxury Travel Magazine’s 2010 Gold list.

Resort owner and managing director Tony Whitton said he believed Likuliku had successfully filled a previously vacant niche in Fiji in terms of what the resort offers.

“The property offers a unique concept in that it focuses on all things Fijian from design to service delivery while providing a unique product offering through the resorts over-water bures,” he added.

The award is a further endorsement for the luxury Mamanuca Islands property which last year was voted number five in the same category.

Since its opening, the resort has welcomed over 52,000 guests from all over the world with the majority coming from Australia, North American, Italy and other parts of Europe, Korea, United Kingdom, New Zealand and Japan.

“It is clear from the early positive response to Likuliku that we are delivering the Fijian experience we had set out to do and the key challenge remains to maintain that as we become more established,” Whitton said.

He stressed that the resort is proud of ancient Fijian traditions and cultures and is glad to be able to share this with their guests.

Likuliku Lagoon Resort is located 25 kilometers from Nadi International Airport and guests can arrive at the resort by helicopter, seaplane, private speedboat or fast catamaran transfer.