Trade deficit hits $1.1 billion
04/10/2008 - www.fijilive.com
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Fiji’s trade deficit hit almost $1.2 billion for the 12 months ending September this year, the country’s central bank has revealed.
This is compared to around $950 million recorded for the same period last year.
The Reserve Bank of Fiji’s (RBF) September economic review said higher growth in import payments contributed to the increase in the merchandise trade deficit.
On trade developments, the RBF said domestic export earnings rose by 15.2 per cent in July, attributed to higher inflows from sugar, fish, mineral water, timber, sweet biscuits, flour, gold and other domestic exports.
This was supplemented by earnings from re-exports, contributing to a higher growth of 20.9 per cent for total exports.
Total imports swelled by 23.1 per cent in July.
All categories of import – intermediate (11.6 per cent), consumption (8.9 per cent), and investment (2.6 per cent) goods rose.
On the domestic front, activities remained subdued, the RBF said.
Lending for consumption purposes rose in July by 6.4 per cent on an annual basis.
In addition, imports of consumption goods rose by 23.8 per cent cumulative to July, although this could be driven primarily by higher prices.
Moreover, the poor performances of major sectors such as cane and sugar, subdued labour market conditions and the decline in remittances receipts (21.7 per cent) are expected to moderate consumer spending.
At the end of August, official foreign reserves stood at $911.3 million (provisional), sufficient to cover 3.6 months of imports and goods.
October 5, 2008
August 21, 2008
Forum has run out of patience with Fiji
Forum has run out of patience with Fiji
www.sun.com.fj - 8/20/2008
Pacific Forum leaders have “run out of patience” with the interim Government.
While there have been mixed reactions from members of the Forum at the absence of interim Prime Minister Commodore Voreqe Bainimarama from the Niue meeting, New Zealand Prime Minister Helen Clark said her regional peers had run out of patience.
The meeting, which began yesterday, heard immediate reactions to Cdre Bainimarama’s failure to attend.
“I think the Forum should send a very clear message to him,” said Ms Clark.
“We don’t really know what the dynamics are in Fiji at this point but I think people will be surprised that their self proclaimed PM is not ready to face his peers here.”
Pacnews reported she likened Commodore Bainimarama’s reaction to that of Zimbabwean President, Robert Mugabe, when he was expelled from the Commonwealth.
“I have a feeling of deja vu about this,” she said.
“It seems like the dance the Commonwealth had with Zimbabwe but the Commonwealth stuck to its principles. Robert Mugabe left rather than face his peers. One hopes that Fiji sees the sense of sticking to the commitments it gave to leaders.”
She did not rule out further sanctions against Fiji but only hinted that the report of the Forum Ministerial Contact Group (MCG) is expected to be endorsed by the leaders today.
“The report concludes that there is no technical, administrative or managerial reasons for Fiji not to honour its March 2009 elections commitment. The problem is there is no political will.
“In my bilateral meetings with the Samoan Prime Minister, Tuilaepa Malielegaoi and the Papua New Guinea foreign affairs minister, who are members of the Ministerial Contact Group, they indicated their support for the MCG report,” said Ms Clark.
Tongan Prime Minister and outgoing chairman of the Pacific Islands Forum, Dr Feleti Sevele said, he personally felt let down by the non attendance of Commodore Bainimarama.’
“We acted in good faith and as a regional organisation, we included everybody in the discussions on Fiji” Dr Sevele told journalists.
“I am disappointed that he is not fulfilling his commitment and he’s not here. His actions have undermined the Forum, putting it under stress,” said Dr Sevele.
www.sun.com.fj - 8/20/2008
Pacific Forum leaders have “run out of patience” with the interim Government.
While there have been mixed reactions from members of the Forum at the absence of interim Prime Minister Commodore Voreqe Bainimarama from the Niue meeting, New Zealand Prime Minister Helen Clark said her regional peers had run out of patience.
The meeting, which began yesterday, heard immediate reactions to Cdre Bainimarama’s failure to attend.
“I think the Forum should send a very clear message to him,” said Ms Clark.
“We don’t really know what the dynamics are in Fiji at this point but I think people will be surprised that their self proclaimed PM is not ready to face his peers here.”
Pacnews reported she likened Commodore Bainimarama’s reaction to that of Zimbabwean President, Robert Mugabe, when he was expelled from the Commonwealth.
“I have a feeling of deja vu about this,” she said.
“It seems like the dance the Commonwealth had with Zimbabwe but the Commonwealth stuck to its principles. Robert Mugabe left rather than face his peers. One hopes that Fiji sees the sense of sticking to the commitments it gave to leaders.”
She did not rule out further sanctions against Fiji but only hinted that the report of the Forum Ministerial Contact Group (MCG) is expected to be endorsed by the leaders today.
“The report concludes that there is no technical, administrative or managerial reasons for Fiji not to honour its March 2009 elections commitment. The problem is there is no political will.
“In my bilateral meetings with the Samoan Prime Minister, Tuilaepa Malielegaoi and the Papua New Guinea foreign affairs minister, who are members of the Ministerial Contact Group, they indicated their support for the MCG report,” said Ms Clark.
Tongan Prime Minister and outgoing chairman of the Pacific Islands Forum, Dr Feleti Sevele said, he personally felt let down by the non attendance of Commodore Bainimarama.’
“We acted in good faith and as a regional organisation, we included everybody in the discussions on Fiji” Dr Sevele told journalists.
“I am disappointed that he is not fulfilling his commitment and he’s not here. His actions have undermined the Forum, putting it under stress,” said Dr Sevele.
Fiji Moans About Pacific Regional Entities
Pacific Plan questioned by state
www.sun.com.fj - 8/20/2008
www.sun.com.fj - 8/20/2008
The interim government has questioned the decision of the Pacific Forum island leaders to merge some of the functions of 10 regional organisations in the Pacific.
A paper obtained by Pacnews said Fiji wanted to revisit the decision to rationalise some of the functions of the Suva-based Pacific Islands Applied Geoscience Commission with the work programmes of the Secretariat of the Pacific Community and the Secretariat of the Pacific Regional Environment Programme.
It also questioned the rationale behind merging another Suva based regional organisation, the South Pacific Bureau for Education Assessment into the SPC.
“Fiji is very concerned about the process through which recommendations from senior officials about the preferred regional institutional framework particularly the interpretation thereof, may have been put to leaders for a decision,” the paper stated.
“Furthermore, Fiji believes that the format of the retreat further isolated leaders from senior government officials who would otherwise have provided advice that was more effective leading up to the leaders meeting.”
Fiji said the decision on SOPAC and SPBEA was unfortunate.
“This exercise takes the developing Pacific Island States back towards the days when there was just one regional organisation, the former South Pacific Commission. It was an arrangement that was rejected by the Pacific Island Leaders then because their voices were drowned out by the metropolitan members of the organisation.”
Acting Secretary General of the Pacific Islands Forum, Feleti Teo told journalists there were only two country initiative papers prepared by Samoa and Vanuatu are on the agenda of the Leaders Meeting.
August 15, 2008
AFL chairman sacked
AFL chairman sacked
By TIMOTHY NAIVALUWAQA- Friday, August 15, 2008
By TIMOTHY NAIVALUWAQA- Friday, August 15, 2008
www.fijitimes.com
AIRPORTS Fiji Limited chairman Digby Bossley has been dismissed by the interim Government barely a year after taking up office.
Interim Public Enterprises Minister Aiyaz Sayed-Khaiyum confirmed yesterday Mr Bossley's services were terminated on Wednesday.
When asked for a reason, Mr Sayed-Khaiyum said "All I can say is that Mr Bossley's appointment has been terminated."
Mr Sayed-Khaiyum said Public Enterprises permanent secretary Pio Tikoduadua has been appointed to the board and that an acting chairman's position would be announced soon.
Mr Bossley refused to comment and directed queries to Mr Sayed-Khaiyum.
Fiji Public Service Association general secretary Rajeshwar Singh welcomed the decision and urged the Government to carry out further changes at top management level.
Mr Singh said Mr Bossley's failure to settle company obligations could be a reason for his removal.
"I think his removal is for the better because since his appointment he was not able to deliver anything.
"This is a very good decision and Mr Bossley's replacement should take his cue that if they do not work, dialogue or negotiate, it will not be accepted."
Last month, the FPSA issued a strike notice for the company's failure to resolve outstanding issues dating back to 2000.
About 200 FPSA members are expected to walk off their jobs on August 29.
Mr Bossley was appointed chairman mid last year following the resignation of Rick Rickman.
It's believed Mr Rickman will hold the fort until an appointment is made.
Yesterday he was unavailable for comment.
July 7, 2008
FDB chief sent home
FDB chief sent home
TIMOTHY NAILAVUWAQA and MARGARET WISE - www.fijitimes.com
Saturday, July 05, 2008
FIJI Development Bank chief executive officer Tukana Bovoro was forced to take leave two weeks ago.
Yesterday, he said the reasons behind the move were still a mystery to him.
"Yes, I am on leave and I don't know when I will start," he said last night.
Board chairman and acting chief executive officer Taito Waradi did not return calls placed to his office.
Finance permanent secretary Peceli Vocea said the ministry did not manage FDB and all queries related to the bank's operations should be addressed to board members.
When told it was at the directive of interim Finance Minister Mahendra Chaudhry that the bank had restructured its lending policy, Mr Vocea insisted "we have nothing to do with Mr Bovoro's leave".
Fiji Bank and Finance Sectors Unions general secretary Pramod Rae said his members had been in the dark and the chairman was not responding to calls. He said the silence and mystery surrounding Mr Bovoro's leave was "not good for the bank, not good for the staff and not good for business".
He said the board should be open and transparent because the bank was like a ship without direction, especially when it was being restructured.
"The chairman is not responding to our queries. How long will this go on?
"They should resolve this quickly because it is odd that is happening while a major restructure is going on.
"The man who is supposed to lead the change is not there.
"It's like a ship without direction. We are anxious and I want to get to the bottom of this because I have to protect my members' interest.
"We had signed an agreement on the restructure but it was held up for two weeks. We are just starting again and it's just left for the bank to implement it."
Mr Bovoro had earlier said staff at the bank would be given a choice to take a redundancy package and would not be sent home against their will.
He said records showed agricultural and small business loans had resulted in heavy losses for the bank.
Earlier this year, the FDB acted on Mr Chaudhry's call for it to relook its operations by halting corporate and housing loans, which made up $298.44m worth of loans or 76 per cent of the loans portfolio in 2006.
With 5888 accounts at a value of $392.69m at the end of 2006, 76 per cent for home and corporate loans was $298.44m.
TIMOTHY NAILAVUWAQA and MARGARET WISE - www.fijitimes.com
Saturday, July 05, 2008
FIJI Development Bank chief executive officer Tukana Bovoro was forced to take leave two weeks ago.
Yesterday, he said the reasons behind the move were still a mystery to him.
"Yes, I am on leave and I don't know when I will start," he said last night.
Board chairman and acting chief executive officer Taito Waradi did not return calls placed to his office.
Finance permanent secretary Peceli Vocea said the ministry did not manage FDB and all queries related to the bank's operations should be addressed to board members.
When told it was at the directive of interim Finance Minister Mahendra Chaudhry that the bank had restructured its lending policy, Mr Vocea insisted "we have nothing to do with Mr Bovoro's leave".
Fiji Bank and Finance Sectors Unions general secretary Pramod Rae said his members had been in the dark and the chairman was not responding to calls. He said the silence and mystery surrounding Mr Bovoro's leave was "not good for the bank, not good for the staff and not good for business".
He said the board should be open and transparent because the bank was like a ship without direction, especially when it was being restructured.
"The chairman is not responding to our queries. How long will this go on?
"They should resolve this quickly because it is odd that is happening while a major restructure is going on.
"The man who is supposed to lead the change is not there.
"It's like a ship without direction. We are anxious and I want to get to the bottom of this because I have to protect my members' interest.
"We had signed an agreement on the restructure but it was held up for two weeks. We are just starting again and it's just left for the bank to implement it."
Mr Bovoro had earlier said staff at the bank would be given a choice to take a redundancy package and would not be sent home against their will.
He said records showed agricultural and small business loans had resulted in heavy losses for the bank.
Earlier this year, the FDB acted on Mr Chaudhry's call for it to relook its operations by halting corporate and housing loans, which made up $298.44m worth of loans or 76 per cent of the loans portfolio in 2006.
With 5888 accounts at a value of $392.69m at the end of 2006, 76 per cent for home and corporate loans was $298.44m.
June 17, 2008
Election not ‘magic cure’ to Fiji’s ills: Naidu
Election not ‘magic cure’ to Fiji’s ills: Naidu
www.fijilive.com - 17 JUN 2008
The national election is not the ‘magic cure’ for anybody’s ills, let alone Fiji’s economy, says a strong advocate for the country's early return to democratic rule. Prominent Suva-based lawyer Richard made the comment during a panel discussion at the 36th Fiji Institute of Accountant’s annual congress, which ended at the Shangri-La’s Fijian Resort in Nadroga on Saturday.Naidu was responding to a question posed by Pacific Sun’s general manager Manoa Kamikamica who asked whether the election was the genuine answer to moving Fiji forward to a stable and investor-friendly environment.Kamikamica said most questions for the corporate sector in Fiji centred on investment plan and stability.“In terms of moving forward and really moving forward to the future, how difficult will it be without an election, because Ratu Joni yesterday was talking about the abrogation of the Constitution in order to have an election? To actually get things moving forward, do we need to have an election? “It’s not the election,” Naidu responded, adding the election was but one demonstration of Fiji’s ability to follow the rule of law.“The election itself is not a magic cure for anybody’s ills. It’s about following the rule of law and staying within the framework of the Constitution because that’s what investors want,” he said.“They want a stable, understandable set of rules that doesn’t change,” he added.Naidu said for the last 20 years, things had changed. “You have a coup, everything changes, nobody knows what the law is, and nobody knows what the rules are.”During the panel discussion on Saturday, Naidu asked about 300 delegates to raise their hands if they believed that the interim Government was an investor-friendly regime. No hands went up.“Government has got to ask, not tell,” said Naidu.“There’s no point telling us all of the great things that you’re doing to make yourself investor friendly if the community…and this is the investment community, does not believe you,” Naidu said of Government. “It’s about confidence and you cannot have confidence until you have rule of law. And so the elections is not the solution but the elections is the demonstration that we’re actually prepared to go back to the rule of law and stick to it,” he said.“It’s five hard years before anybody will believe us that we can actually stick to the promise. So, the sooner we make a start, the better,” he added.
June 16, 2008
Shock move by FHL board
Shock move by FHL board
www.sun.com.fj - 6/15/2008
A veil of secrecy surrounds the future of a Fijian investment company's board and managing director.
Fijian Holdings Limited managing director Sitiveni Weleilakeba and some of the board of directors are understood to have resigned following a board meeting last Friday.
Mr Weleilakeba could not be reached for a comment last night. His partner Laisa Digitaki said yesterday Mr Weleilakeba would not be making any comment to the media as yet.
In his capacity as FHL's managing director, he is also chairman of this newspaper's board of directors.
Those who have resigned include chairman Joe Mar, group managing director Mr Weleilakeba, directors Tui Maleikai, Mohammed Asif Razak and Ioane Naiveli.
Those who remain on the board include Ulaiasi Baya, Isoa Kaloumaira and Robin Storck who now becomes the chairman.
Mr Storck said he was not aware of the reasons behind the resignations of the other board members.
“From what I know, they resigned voluntarily and only they know the reason for their resigning,” said Mr Storck.
He said the new changes were in the best interest of the company and the decision was made by B Class shareholders. Newly appointed to the board are businessman Padam Lala, Basic Industries chief executive officer Sereana Qoro and Fiji Military Force acting chief of staff Colonel Mohammed Aziz.
No comments could be obtained from them regarding the appointments.
Ms Qoro is tipped to replace Mr Weleilakeba as the group managing director. Colonel Aziz was appointed deputy board chairman.
No confirmation could be obtained from board members on the reasons for their resignation.
Fijian Holdings Limited is an equity investment company. The company's subsidiaries include Basic Industries Limited, Blue Lagoon Cruises Holdings Limited, Clariti (South Pacific) Limited, FHL Securities Limited, Fijian Property Trust Company Limited, Fiji Industries Limited, Fijian Holdings Trust Management Limited and Merchant Finance and Investment Company Limited.
Former company executive Laisenia Qarase declined to comment on the changes to the FHL board.
The new board is expected to release a media statement on Tuesday to inform the company shareholders on the changes.
www.sun.com.fj - 6/15/2008
A veil of secrecy surrounds the future of a Fijian investment company's board and managing director.
Fijian Holdings Limited managing director Sitiveni Weleilakeba and some of the board of directors are understood to have resigned following a board meeting last Friday.
Mr Weleilakeba could not be reached for a comment last night. His partner Laisa Digitaki said yesterday Mr Weleilakeba would not be making any comment to the media as yet.
In his capacity as FHL's managing director, he is also chairman of this newspaper's board of directors.
Those who have resigned include chairman Joe Mar, group managing director Mr Weleilakeba, directors Tui Maleikai, Mohammed Asif Razak and Ioane Naiveli.
Those who remain on the board include Ulaiasi Baya, Isoa Kaloumaira and Robin Storck who now becomes the chairman.
Mr Storck said he was not aware of the reasons behind the resignations of the other board members.
“From what I know, they resigned voluntarily and only they know the reason for their resigning,” said Mr Storck.
He said the new changes were in the best interest of the company and the decision was made by B Class shareholders. Newly appointed to the board are businessman Padam Lala, Basic Industries chief executive officer Sereana Qoro and Fiji Military Force acting chief of staff Colonel Mohammed Aziz.
No comments could be obtained from them regarding the appointments.
Ms Qoro is tipped to replace Mr Weleilakeba as the group managing director. Colonel Aziz was appointed deputy board chairman.
No confirmation could be obtained from board members on the reasons for their resignation.
Fijian Holdings Limited is an equity investment company. The company's subsidiaries include Basic Industries Limited, Blue Lagoon Cruises Holdings Limited, Clariti (South Pacific) Limited, FHL Securities Limited, Fijian Property Trust Company Limited, Fiji Industries Limited, Fijian Holdings Trust Management Limited and Merchant Finance and Investment Company Limited.
Former company executive Laisenia Qarase declined to comment on the changes to the FHL board.
The new board is expected to release a media statement on Tuesday to inform the company shareholders on the changes.
June 11, 2008
Fund shortages nothing new: SDL
Fund shortages nothing new: SDL
http://www.sun.com.fj/ - 6/10/2008
http://www.sun.com.fj/ - 6/10/2008
The shortage of funds in many Government departments is nothing new, says a major political party.
Soqosoqo Duavata Ni Lewenivanua party national director Peceli Kinivuwai said ever since the December 2006 military coup the State has been facing money problems.
The reports have been strongly denied by Interim Finance Minister Mahendra Chaudhry.
Reacting to media reports claiming the State had no funds for planned projects Mr Kinivuwai said the problem had become serious.
“There are reports that the one-third cash contributions already paid into government for self-help projects cannot be refunded because of shortage of funds.
“Owners of these projects have asked for refunds because they have waited too long for the implementation of their projects. Some of them have waited since December, 2006. They want their funds back so that they can use them for other investments,” Mr Kinivuwai said.
Mr Kinivuwai said the release of funds is the primary responsibility of the Ministry of Finance. He has blamed the interim Minister of Finance, Mahendra Chaudhry for the current problems. Mr Kinivuwai said that Mr Chaudhry is so obsessed about achieving a budget surplus at any cost.
“Mr Chaudhry knows that the easiest way to achieve this is to withhold essential expenditures.
“As a result of this disastrous policy our roads are in very poor conditions; water supply problems continue; there are serious shortages of drugs in many hospitals; students are starving; rural development projects have ceased, and the list goes on,” said Kinivuwai.
Mr Chaudhry in response to the report said the media company that ran the story was ill-advised.
He alleged that the media company was bent on discrediting the interim government and its work
June 10, 2008
Consumer Council Questions Air Pacific
Consumer Council Questions Air Pacific
www.fijivillage.com - 10/06/2008
www.fijivillage.com - 10/06/2008
The Consumer Council of Fiji has questioned the International carrier, Air Pacific on why it has decided to increase the air fares from Fiji to Australia and New Zealand when it is making a record profit of 38.2 million dollars.Council CEO Premila Kumar said a record profit of such an amount was made despite being faced with numerous hurdles last year including rising oil prices and the grounding and rescheduling of a number of flight disruptions at peak season.She said Air Pacific together with Expedia is running huge promotions overseas to lure tourists to Fiji by offering great incentives and discounts while the local consumers get nothing in return.Kumar's comments come after Air Pacific announced that it can no longer sustain current fare levels with the price of fuel reaching record highs thus it will increase its fares from Fiji to Australia and New Zealand by approximately 4% for tickets issued from tomorrow.Chief Executive Officer John Campbell has confirmed the hike saying that this is no surprise move, even though the airline has effective internal cost management and fuel hedging. Despite numerous attempts, Campbell has not made any other comment to our queries. Air Pacific operates 22 services weekly to the Australian cities of Brisbane, Sydney and Melbourne as well as services to Auckland twice daily and to Christchurch twice weekly.
June 9, 2008
Performance Reflects Leadership:Economist
Performance Reflects Leadership:Economist
www.fijivillage.com - 09/06/2008
www.fijivillage.com - 09/06/2008
A leading Economist believes that the current poor state of the economy is because of lack of good leadership to take the country in the right direction.Dr Mahendra Reddy, while strongly denouncing claims by the interim Finance Minister that the country is on the mend, said most pacific islands countries economy are not doing well because there is a leadership problem.Reddy said Fiji's economy has faced a lot of uncertainty from January which in turn has contributed a lot to investors losing confidence.This comes after Interim Finance Minister Mahendra Chaudhry that the economy is on the right track and there are positive indicators that the economy is definitely on the mend in the short span of 15-18 months, compared to the highly precarious state it was in when they took over from the Qarase led SDL government. According to Chaudhry, Fiji's Foreign reserves have stabilized, the Government's debt levels have declined to 47% compared to the 52% under the SDL led Government, the Budget deficit has been contained to less than 2% from 5% of the Gross Domestic Product, and the interests rates have also declined from 14-15% right down to 7%.
June 8, 2008
Development bank braces for restructure
Sai's Comment: 7 June 2008
- Chaudhry's directive to FDB reminds me of a former NZ Finance Minister, Robert Muldoon. I would therefore not be surprised if the result of such interventionist approach will be the same-disaster! Economically, it does not make sense to direct FDB to concentrate on one sector. In fact, FDB will not survive unless it has a diverse portfolio of loans. The market in Fiji is small and already competitive. No wonder, loans applications have reduced both in volume and size. Otherwise, government has to make available some type of ongoing support or subsidy thereby further raising on tax payers. Chaudhry and his lot should not be making such drastic changes to FDB's policies as they are merely INTERIM government. The sooner they're gone come the elctions the better it will be for FDB and its customers.
Policy shift forces FDB to cut costs
www.fijilive.com - 08 JUN 2008
The Fiji Development Bank says it will need to cut its operating costs to keep its margins.This comes as its commercial loan books begin to shrink leading to reduced income following a government directive to change its lending focus, away from commercial to resource based, manufacturing and the micro loans sectors.FDB chief executive officer Tukana Bovoro said if the bank was unable to cut costs then the Government would be required somewhere along the line, perhaps in a couple of years to start putting capital in to plug possible losses.However, plans are now being put in place to ensure that this does not happen and this includes realigning staff needs to the new structure as part of the bank's cost-cutting measures.On how much FDB would lose because it has stopped lending to commercial customers, Bovoro said he could not really quantify that."The fact is that as our commercial loan books begin to dwindle, income will begin to be reduced accordingly,” he said.“Really the option for the bank is to reduce its costs so that the margins are still there.”Early this year, a government directive was given to the state-owned FDB to cut down its commercial and home lending and expand its agricultural loan portfolio.However, Bovoro indicated that the FDB's initial target over three years, was to increase loans to what it then termed as the Agriculture & Development Finance Sector to 50 per cent of the bank's total growth portfolio.“So the directive not only reinforced the direction the bank was heading but also clearly articulated what the FDB needed to achieve the interim Government's wishes,” he said.FDB had set itself pretty tough targets in trying to change its portfolio mix over the next three years, however, given the new direction, and that not much growth is expected out of its commercial book, the desired ratio of 60 per cent in focus sectors and 40 per cent in the non focus sectors, may now be possible, he added.FDB's initial intention was to go into the agricultural sector but with the support of its commercial books, which Bovoro said were very important in enabling the bank to refocus its attention.“The danger here is that we no longer have the steady income (from the commercial loans) required to steady the volatile nature on lending to the resource-based sectors,” he said.“That is the challenge the bank has and management and the board are already in discussions on how this is to be addressed.”He said the bank would look at providing loans to different sectors in the agricultural industry including dairy, beef, agricultural crops, coconuts and bio fuels.Given the increased prices in imported food and milk product, this is an opportune time for the bank to enlarge its portfolio in these sectors, however this must be approached with some caution given the associated risks, he added.“It must be remembered that FDB’s new focus sectors are volatile, very susceptible to environmental factors like the weather apart from the normal business risks like markets and so on,” Bovoro said.However, at the end of the day, the Government owns this bank, and the bank will articulate and implement government’s policy directives, Bovoro pointed out.On how much capital the Government gave the FDB every year, Bovoro clarified that government has not given the bank any capital for some time."Government provides us with interest subsidies that enable the bank provide subsidised loans to the agriculture and other sectors determined by government,” he said.In the last two years, Government subsidies have been in the range of around $3.7 million.“I think that it is important to note that even without Government subsidies the bank has been able to operate on a sustainable level, and this is a positive note about FDB’s operations to date,” Bovoro said.“The positive thing about this is that it places the bank in a stronger position to begin to do what is has been tasked to do now.“However, going forward, the challenge for the board and management will be how to continue in the same manner without depending on Government subsidies for its bottom line.”
Development bank braces for restructure
http://www.fijitimes.com/ - 07 JUN 2008
From July this year, the Fiji Development Bank will begin changes to the structure of the bank, rewriting its policies and repositioning its staff as part of a move to refocus its attention on agricultural lending. Interim Finance Minister Mahendra Chaudhry in January had given a directive to the state owned FDB to cease all corporate and housing lending and focus on agriculture. The directive was heavily criticized by industry observers who said the bank must be allowed to maintain a diversified loans portfolio if it was to survive Fiji’s very competitive banking industry. Four months on, the FDB chief executive officer Tukana Bovoro said that in compliance with the minister's directive, the bank has stopped its lending in commercial lending areas. But he also pointed out that very little business is coming in now for the bank as a whole. "The small loans are still coming through. But the level of loan applications has really gone down." On its lending to the agricultural sector, Bovoro said it was too early to judge." The first thing that we have done now is restructure the organisation.“ We have to do that because when we started off we were building an organisation that was going towards obtaining a retail banking license." But we have now been told to change direction, and concentrate on this - resource based industries, manufacturing and micro loans." So apart from changing the structure of the bank, we have got to rewrite our policies and procedures and reposition our people.“ We will go into that from July 1. That is when the structure will be in place, staff place in their new roles and the bank's new KPI kicks in."Bovoro said that in order for the bank to really get in there (agricultural sector) it needed to redevelop policies and procedures and for certain areas of the business, then to market these products into those sectors. “That does not happen overnight,” he said." So we are developing our marketing plans and when things are in place, we are going to roll the people out to do those things. So it is a big shift in the way we are doing things." He said the bank will have to work with other stakeholders including agriculture, fisheries, forests, the dairy industry, the Fiji Meat Industry board, agro marketing "to find out what else we can do together to push the production of those sectors". Meanwhile, this week the Bank Employees Union agreed on the voluntary redundancy package offered by the FDB.
No need to ‘copy’ Singapore’s civil service
No need to ‘copy’ Singapore’s civil service
www.fijilive.com - 06 JUN 2008
There is no need for us to visit Singapore to find ways of how Fiji can improve efficiency in the civil service, says a former Education minister. Nelson Delailomaloma, who was part of Laisenia Qarase’s interim regime after the 2000 coup said our civil service has a long history of inefficiency. “It is multi-layered, there are about 9-10 layers from the permanent secretary down to the clerical officers and to the PAs and to the secretaries,” he said.He made these comments at a panel discussion in Suva yesterday on the theme ‘The economic challenges and lessons to raise Fiji’s competitiveness’.Delailomaloma proposed that the civil service and players in the private sector alike should ensure it was customer-focused, an organisation with a flat structure and high productivity.He said productivity was “absolutely” essential for economic success.“What we need is a restructure in the civil service. For the sake of the people in the civil service themselves, people there have the abilities of doing whatever there is that needs to be done to restructure the civil service, so that it becomes much more effective in their decision then it is at this point in time,” Delailomaloma said.He said he also believed that people actively involved in politics should be well equipped with a vast knowledge of economics to assure the country’s economic growth.Governments’ inefficiencies and near-zero productivity is a result of policy-makers who lacked knowledge of national economic development, he said.He added that in the past, some organisations were independently resourced and operated, which indicated that there were sufficient people to create those things needed to promote the idea of productivity.“Now, I wonder therefore, quite often, whether people who have been determining our policies in government in relation to economic development make it understandable,” Delailomaloma said.“…. let’s insist that those who stand for politics have a university degree in economics before they can qualify,” he said.“This will allow them to be able to understand what economic development is all about, what national development is all about,” he told participants at the Training and Productivity Authority of Fiji (TPAF)-organised productivity symposium. Participants included chief executive officers and executives from both the public and private sector.
June 6, 2008
Transtel launches home-grown Yehdo!
Transtel launches home-grown Yehdo!
www.fijilive.com - 05 JUN 2008
People in Fiji, particularly those in rural and geographically-isolated areas, can now pay their bills or purchase goods and services from the comfort of their own homes with the launching of Yehdo.Yehdo is a reloadable debit card which provides a convenient and easy means of payment of bills, purchase of goods and services, and for the transfer of value for use by everyone in the country, and would be available from any place, any where, anytime.This product, the brainchild of young local skills in the company, is expected to be rolled into the region and eventually hitting overseas markets.And the Reserve Bank of Fiji (RBF) has applauded this initiative saying it is encouraging to see companies like TransTel take on new initiatives during such challenging times in the country.RBF Governor Savenaca Narube reiterated the RBF’s call that Fiji companies must push forward and that businesses must go on.He said it was pleasing to note that innovations as such was alive in a critical sector like telecommunications reasoning the sector played a key catalytic role in the economy.“It determines the efficient flow of information across the country and to the rest of the world. And we all know that information is power. Business cannot survive without an efficient transfer of this information,” Narube said.He said now with a deregulated telecommunication industry, “we can be guaranteed that the motivation and incentive to fulfill customer’s demands will be stronger than ever before”.He added in today’s business world, the expectations of customers on telecommunications were very high as they know what was available globally. “They want to have the kind of service they want, when and where they want it. It is not good enough for telecommunications providers to simply meet these expectations but more importantly they need to anticipate them,” Narube said.He said the new product was created in the realization that the telecom industry could and and does have a positive impact on human lives by the use of new technologies. “Advancement in the telecommunication sector and in particular the internet has, in the developed world at least, presented the market new and convenient ways of interaction between the customer and the supplier of goods and or services,” Narube said.“Customers are now able to dedicate a lot more of their time and energy to pursue their economic goals rather than being at a queue or traveling to one, to pay for goods or services.”TransTel chairman Pratap Singh told Fijilive that this product would be stretched out to the region in 12 months time with the possibility of expanding it abroad.He said all in Fiji could use this product as transactions could be made via plain old telephone (POT), EFPTOS machine, internet, and mobile phones.He said this particularly benefits rural communities where the only means of communication with the rest of Fiji is often via the Telecom Fiji phone system. “Yehdo will inculcate our corporate responsibility – to conduct business in a way that meets social, environmental and ethical concerns. We have leveraged our core competencies and business knowledge and are convinced that Yehdo will have a positive impact on everyday lives of our people while still providing a viable business solution,” Singh said.
Govt ‘has no say’ in Commerce Commission
Govt ‘has no say’ in Commerce Commission
www.fijilive.com - - 06 JUN 2008
The Fiji Government has no say in the decisions of the Commerce Commission, says chairman Charles Sweeney.However, in the case of the Fiji Electricity Authority, the statement by the interim Finance Minister was made in government’s capacity as owner of FEA.Sweeney says Mahendra Chaudhry’s decision to halt the increase in fuel tariffs was not an indication of the government having authority over the Commission.“In a price control matter, such as the FEA matter, a company subject to price control is entitled to make a request for an increase if, for example, its costs are increased by an event outside its control,” he explained.“This is what FEA has done. The first application for an increase was refused by the Commission because it had been caused by the government's decision to increase the tariffs which FEA had to pay on its petroleum purchases.”He said the Commission considered that since this was a decision of the government and since the government was the owner of FEA, FEA should be left to work through the consequences of a decision of its owner without being able to pass on the extra costs to electricity consumers.The second application by FEA, he said, was based on an increase in the cost of petroleum arising from the increase in world prices. It was not based upon the tariff change,” said Sweeney.He said it was important to understand that the Commission only authorised FEA to increase its charges to a new maximum price.“The decision whether to do so or not is a decision for FEA. Generally, however, the Commission assumes that firms do not seek price increases unless they intend to actually charge them if permitted to do so,” Sweeney said. He said Chaudhry’s decision to halt the increase was a matter for FEA and its relationship with the Government and that this did not affect the Commission's position.“The government has not made any attempt to influence the Commission in relation to FEA's application for a price rise,” Sweeney said.“The Commission is extremely careful to preserve its independence. That independence is the cornerstone of the Commission's credibility as an economic regulator.”
The Fiji Government has no say in the decisions of the Commerce Commission, says chairman Charles Sweeney.However, in the case of the Fiji Electricity Authority, the statement by the interim Finance Minister was made in government’s capacity as owner of FEA.Sweeney says Mahendra Chaudhry’s decision to halt the increase in fuel tariffs was not an indication of the government having authority over the Commission.“In a price control matter, such as the FEA matter, a company subject to price control is entitled to make a request for an increase if, for example, its costs are increased by an event outside its control,” he explained.“This is what FEA has done. The first application for an increase was refused by the Commission because it had been caused by the government's decision to increase the tariffs which FEA had to pay on its petroleum purchases.”He said the Commission considered that since this was a decision of the government and since the government was the owner of FEA, FEA should be left to work through the consequences of a decision of its owner without being able to pass on the extra costs to electricity consumers.The second application by FEA, he said, was based on an increase in the cost of petroleum arising from the increase in world prices. It was not based upon the tariff change,” said Sweeney.He said it was important to understand that the Commission only authorised FEA to increase its charges to a new maximum price.“The decision whether to do so or not is a decision for FEA. Generally, however, the Commission assumes that firms do not seek price increases unless they intend to actually charge them if permitted to do so,” Sweeney said. He said Chaudhry’s decision to halt the increase was a matter for FEA and its relationship with the Government and that this did not affect the Commission's position.“The government has not made any attempt to influence the Commission in relation to FEA's application for a price rise,” Sweeney said.“The Commission is extremely careful to preserve its independence. That independence is the cornerstone of the Commission's credibility as an economic regulator.”
Fiji growth ‘at bottom of HDI pile’
Fiji growth ‘at bottom of HDI pile’
http://www.fijilive.com/ - 05 JUN 2008
Productivity growth in Fiji has averaged 1 per cent over the ten year period from 1996 to 2006 which when compared to other countries is somewhere at the bottom of the pile, Reserve Bank of Fiji governor Savenaca Narube warned.And he said that with Fiji slipping in world rankings in the United Nation’s Human Development Index (HDI ) (Fiji, at 92, is about halfway on the ladder), in economic performance and in the ease of doing business among other things, he said Fiji has a lot of catching up to do with other countries. He suggested that productivity could contribute to solving Fiji’s problems.Speaking at a Productivity Symposium at the Holiday Inn today, Narube said there was a lot of waiting for Government to do something – “introduce more incentives, set up committees, appoint think tanks, make laws – you name it - before we can do our own thing”. “But if I may boldly tell you this morning - this waiting around is a waste of time and money! “Productivity is one of the few things that we can do something about without any help from anyone. The ball is clearly in our court,” he told about 50 chief executive officers at the symposium organised by the Training and Productivity Authority of Fiji. He said Fiji needed to raise its investment to over 25 per cent of GDP. “We need to support and promote local investment. But this is not enough. We need to attract foreign investment,” Narube said. “Here, we are competing for the same investment dollar with some bigger and richer countries.“Investors look at several things before they invest. They look at the environment – political, economic and social. They look at government policies and regulations and how these are applied. Investors look at the state of the infrastructure. “Finally, investors also look at the quality of labour and their unit cost. The efficiency of capital is a key decision maker. Productivity therefore becomes an important issue for investors,” he added. Narube said exports must drive Fiji’s growth. Exports must be the key driver of economic growth for a country like Fiji, he pointed out. “There is, in my view, no other way to grow the economy in a sustainable manner. When we export either goods or services, we are competing with other countries supplying the same products.”He said Fiji cannot rely on preferential access anymore, something he said was being reduced. Fiji must compete not only in prices but also in quality, he added. “We are competing with many countries which have low-cost structures and high productivity,” Narube said. “Our work is cut out for us. Therefore raising our productivity level must be a priority. If we cannot compete in this integrated world, we perish - simple as that.”But how is Fiji to raise the productivity in its export sector? For Narube, Fiji must change how it does things. “Productivity in the cane fields and the sugar mills are critical to the sugar reform. We must change how we work our agricultural sector,” he said. Narube warned that the existing model was clearly not working. “Our land is fertile. We have the best pawpaw in the world, the tastiest bananas and the sweetest pineapples but alas we are not even supplying enough of these to our hotels and supermarkets,” he said. “Our oceans are large yet the price of local fish keeps rising. Our mahogany forests are mature, yet we are not exporting high valued timber products. Obviously, something is seriously wrong and we need to correct that urgently.”He said there was a tendency to talk a lot about the potential of small businesses to raise growth and provide incomes and employment. “Again, while we continue to talk, we see very little progress in this important area,” Narube said.“Are we following the right model? Where is the bottleneck?Narube said Fiji should acknowledge and accept the significant role that productivity and competitiveness could play in overcoming many of its economic challenges that it faces particularly that of lifting economic growth, attracting investment and supporting exports. “More importantly, we need to do something about this now at all levels, micro as well as macro.”
May inflation drops to 5.8% 05 JUN 2008
Inflation in May fell to 5.8 per cent from 7.6 per cent recorded in April.This compares with an inflation rate of 6.6 per cent in May last year, according to the Reserve Bank of Fiji’s latest Economic Review. For the first time since September 2007 consumer prices declined by 0.1 per cent over the month. The fall in prices were led by lower costs of food items and clothing and footwear. Marginal decreases in charges for preserved meat, fresh and preserved fruits, spices, top dressings, confectionery and some vegetables and rootcrops underpinned lower prices in the food category. Moreover, cheaper costs of men’s and children’s wear underpinned the decline in the clothing and footwear category.Consumer prices in May have weakened partly due to base related effects and some improvement in the supply of primary produce (vegetables and root crops).The removal of value added tax from eggs and fiscal duties from rice, tinned fish and cooking oil - effective since June 1 - and the base related effects will result in annual inflation trending downwards for the next few months.However, a pick up in inflation is expected towards the later part of the year, the RBF said.
Fiji job advertisements up: RBF - 05 JUN 2008
Fiji’s labour market conditions appear to have improved in some sectors including manufacturing and mining, according to the Reserve Bank of Fiji. Cumulative to April, the RBF said the number of jobs advertised rose by around 9.5 per cent when compared with a year ago.“The demand for labour was higher mainly in the manufacturing; electricity and water; mining and quarrying and community, social and personal services related firms.”The RBF said the increase could be attributed to some expected improvement in business confidence and general optimism of economic activity this year coupled with emigration of skilled workers.
Intra-regional travel ‘future of tourism’ - 05 JUN 2008
The future of tourism in the Pacific, particularly in Fiji, lies in intra-regional travel by tourists, says interim Tourism Minister Tom Ricketts.He said Fiji’s tourism industry was faced with a lot of enormous challenges, one of which was that highlighted by the World Tourism Organisation (WTO) – the accelerating changes in the travelling pattern.“With the insecurity of travel, be it perceived or real, there is no doubt that the future of tourism lies in intra-regional travel with a growing preference for short break vacations close to one's home,” Ricketts said. “According to the WTO, about 80 per cent of the international tourist arrivals were short-haul regional holidays,” he said while officially opening the annual Bula Fiji Tourism Exchange (BFTE) at the Warwick Resort in Sigatoka last night. “We must work together to capitalise on this increasing trend night.”He said over the past ten years, the BFTE had gained a formidable reputation as the largest trade show in the South Pacific, continuing to attract tourism organisations and operators from throughout the region with a majority still from within Fiji. “This event gives Fiji and the Pacific region an opportunity to market its products,” he added.Ricketts said success in tourism must also be built on the strengthened partnership between private and public sectors. He said Fiji’s effective tourism revival campaign after the events of 2006 were possible with the close public and private co-operation that the crisis brought about. “Thirdly, WTO reminds us that competition is the key driving force of change. One key development is the use of information technology which has brought ever closer the distance between travellers and a destination,” Ricketts said. “The competition among destinations is intensified and has become globalised.” Ricketts said: “The BFTE brings together the regional tourist operators and the wholesalers from different parts of the world.“We hope that apart from renewing old relationships, new ones will be made and that the end result will be a growth in new business opportunities for both parties.”He reminded all players in the tourism industry that they needed to grow tourism to benefit their people.“Our aim is to exceed the expectation of our visitors,” Ricketts said.“We want to establish Fiji as a unique destination and ensure that the industry is seen as a benefit to all by embracing social and cultural traditions and practices while minimising the impact on our ecology.”
May 27, 2008
$200m worth of projects on hold
$200m worth of projects on hold
27 MAY 2008 - www.fijilive.com
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Fiji’s capital Suva would have been a hive of construction activity now if three proposed projects with a total value of around $200 million had been given the green light to go ahead.
On hold are the proposed multi million dollar Suva Market (projected to cost around $30m), the upgrading of the Grand Pacific Hotel (projected at $42m) by the Fiji National Provident Fund (FNPF); and the proposed high class apartment block, conference centre behind the Bowling Club also by the FNPF, a project believed to cost over $100m.
These major projects were put on hold after the December 5, 2006 coup by the military government after the takeover of the Qarase government.
Even if the proposals get the thumbs up now, it would likely take a year and a half for them to get off the ground, Suva City Council director engineering services Jagdish Singh said.
According to him, there were a lot of developments happening prior to the December 5 coup in 2006 but developments slowed after the political upheaval. “People are not willing to invest.”
27 MAY 2008 - www.fijilive.com
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Fiji’s capital Suva would have been a hive of construction activity now if three proposed projects with a total value of around $200 million had been given the green light to go ahead.
On hold are the proposed multi million dollar Suva Market (projected to cost around $30m), the upgrading of the Grand Pacific Hotel (projected at $42m) by the Fiji National Provident Fund (FNPF); and the proposed high class apartment block, conference centre behind the Bowling Club also by the FNPF, a project believed to cost over $100m.
These major projects were put on hold after the December 5, 2006 coup by the military government after the takeover of the Qarase government.
Even if the proposals get the thumbs up now, it would likely take a year and a half for them to get off the ground, Suva City Council director engineering services Jagdish Singh said.
According to him, there were a lot of developments happening prior to the December 5 coup in 2006 but developments slowed after the political upheaval. “People are not willing to invest.”
More people withdraw pension fund
More people withdraw pension fund
26 MAY 2008
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The Fiji National Provident Fund (FNPF) has recorded an increase in the number of members wanting to take their superannuation abroad.
The FNPF received 2581 applications from January to December last year, compared to 2433 the previous year.
FNPF chief executive officer Aisake Taito said in 2006, 2070 applications were received from locals and 363 from expatriates.
Of these, only 2265 applications were approved with a monetary value of $38.9 million.
In 2007, Taito said the Fund received 2581 applications; 2201 from locals and 380 from expatriates.
He said only 2402 applications, worth $39.9 million, were approved.
From January to April this year the Fund has received 739 applications from locals and 102 from expatriates.
Taito said the Fund has approved and processed 741 of these applications worth $12.7 million.
When asked if the overthrow of the Qarase Government in December 2006 had an impact on the increasing number of applications, Taito said: “Migration is a personal choice made by individual members. The FNPF only facilitates members request to withdraw for resettlement overseas”.
He added: “The Fund continues to register new members and that there was an increase of 3.75 per cent in membership for the financial year 2007”.
Taito said this translated to about 12,000 new members for the Fund comprising both those entering the labour market as employees and those registering as voluntary members.
Fuel price to increase
26 MAY 2008
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The local price of fuel will increase from today, the Price and Incomes Board has announced.
The wholesale and retail prices of motor spirit, pre-mix outboard fuel, kerosene and diesel will all increase.
This is due to the significant reduction in OPEC crude oil supply due to field maintenance in oil producing countries and tight demand for distillates together with the continued weakening of the US Dollar, a statement from the PIB said.
As of tomorrow, the new retail price of kerosene per litre will be $1.67 (up 13 cents), diesel/litre will be $1.95 (up 13 cents), premix outboard fuel/litre will be $2.12 (up 3 cents).
26 MAY 2008
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The Fiji National Provident Fund (FNPF) has recorded an increase in the number of members wanting to take their superannuation abroad.
The FNPF received 2581 applications from January to December last year, compared to 2433 the previous year.
FNPF chief executive officer Aisake Taito said in 2006, 2070 applications were received from locals and 363 from expatriates.
Of these, only 2265 applications were approved with a monetary value of $38.9 million.
In 2007, Taito said the Fund received 2581 applications; 2201 from locals and 380 from expatriates.
He said only 2402 applications, worth $39.9 million, were approved.
From January to April this year the Fund has received 739 applications from locals and 102 from expatriates.
Taito said the Fund has approved and processed 741 of these applications worth $12.7 million.
When asked if the overthrow of the Qarase Government in December 2006 had an impact on the increasing number of applications, Taito said: “Migration is a personal choice made by individual members. The FNPF only facilitates members request to withdraw for resettlement overseas”.
He added: “The Fund continues to register new members and that there was an increase of 3.75 per cent in membership for the financial year 2007”.
Taito said this translated to about 12,000 new members for the Fund comprising both those entering the labour market as employees and those registering as voluntary members.
Fuel price to increase
26 MAY 2008
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The local price of fuel will increase from today, the Price and Incomes Board has announced.
The wholesale and retail prices of motor spirit, pre-mix outboard fuel, kerosene and diesel will all increase.
This is due to the significant reduction in OPEC crude oil supply due to field maintenance in oil producing countries and tight demand for distillates together with the continued weakening of the US Dollar, a statement from the PIB said.
As of tomorrow, the new retail price of kerosene per litre will be $1.67 (up 13 cents), diesel/litre will be $1.95 (up 13 cents), premix outboard fuel/litre will be $2.12 (up 3 cents).
Garment customers threaten to pull out
Garment customers threaten to pull out
27 MAY 2008 - www.fijilive.com
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Efforts by a garment factory in Fiji to increase the prices of its garments have been resisted by its customers.
Mark One Apparel boss, Mark Halabe, said their customers had resisted any intention to increase garment prices by threatening to pull out of Fiji.
Halabe says their competition is from China where the currency used for exports is the $US dollar.
“Over the last two years the $US dollar/$AUDI has been in the favour of Australia of at least 30%. While in 2010 Fiji's trading preferences into Australia will decline by 7.5%,” he explained.
Halabe said their customers saw Fiji as an expensive manufacturing country and with any increased cost of doing business, such as the Employment Relations Bill, was of no help.
“It doesn't help our ability to increase export sales, increase employment or investments,” says Halabe.
Halabe said with the introduction of the ER Bill, his company stood to lose $160,000 each year for the maternity clause, doubling of sick leave pay, redundancy and bereavement clause.
“On a payroll of over $2.5m this is not an insignificant amount of 6.4%. In addition employers have had to pay increases in wages and salaries which would be in the same order over the last 12 months. So increases of near 13% are simply unaffordable to our international customers,” he said.
Halabe has called on the government of the day to offer business owners some relief by means of a 150% tax deduction.
Another option it has suggested in which the interim government can assist is for to offer to pay 50% of maternity pay or allow the employee to fund 50% from their FNPF funds.
Halabe says the ER Bill has other costs that the media has not picked up on including the doubling of the allowable sick days, redundancy pay and the softening of the definition of bereavement pay.
“All these additional costs only hinder Fiji's ability to compete in the international market as there was no productivity offsets,” he said.
27 MAY 2008 - www.fijilive.com
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Efforts by a garment factory in Fiji to increase the prices of its garments have been resisted by its customers.
Mark One Apparel boss, Mark Halabe, said their customers had resisted any intention to increase garment prices by threatening to pull out of Fiji.
Halabe says their competition is from China where the currency used for exports is the $US dollar.
“Over the last two years the $US dollar/$AUDI has been in the favour of Australia of at least 30%. While in 2010 Fiji's trading preferences into Australia will decline by 7.5%,” he explained.
Halabe said their customers saw Fiji as an expensive manufacturing country and with any increased cost of doing business, such as the Employment Relations Bill, was of no help.
“It doesn't help our ability to increase export sales, increase employment or investments,” says Halabe.
Halabe said with the introduction of the ER Bill, his company stood to lose $160,000 each year for the maternity clause, doubling of sick leave pay, redundancy and bereavement clause.
“On a payroll of over $2.5m this is not an insignificant amount of 6.4%. In addition employers have had to pay increases in wages and salaries which would be in the same order over the last 12 months. So increases of near 13% are simply unaffordable to our international customers,” he said.
Halabe has called on the government of the day to offer business owners some relief by means of a 150% tax deduction.
Another option it has suggested in which the interim government can assist is for to offer to pay 50% of maternity pay or allow the employee to fund 50% from their FNPF funds.
Halabe says the ER Bill has other costs that the media has not picked up on including the doubling of the allowable sick days, redundancy pay and the softening of the definition of bereavement pay.
“All these additional costs only hinder Fiji's ability to compete in the international market as there was no productivity offsets,” he said.
May 26, 2008
Easy to do business in Fiji
Easy to do business in Fiji, says report
Last updated 5/26/2008
Fiji has been ranked the highest in the Pacific as a country where they can easily do business according to a recent World Bank report. The report titled “Doing business in small islands developing States 2008” covers figures collected between April 2006 and June 2007.
The report highlighted areas compatible for developing countries to do business.
Fiji is ranked fourth against 32 other developing countries and ranked just below Singapore, Maurictius, St Lucia and Mauritius and ranked 36 in the world economies rank.
The report found that small island developing states like Fiji performed well in three Doing Business areas, dealing with licenses, employing workers and paying taxes, relatively well on the ease of starting a business, protecting investors, and trading across borders.
According to the report, priorities for reform in most of these countries are closing a business, getting credit, registering property, and enforcing contracts. Doing Business analyses government regulations that enhance business activity and those that constrain it in 178 countries, including 32 SIDS economies: Antigua and Barbuda, Belize, Cape Verde, Comoros, Dominica, Dominican Republic, Fiji, Grenada, Guinea-Bissau, Guyana, Haiti, Jamaica, Kiribati, Maldives, Marshall Islands, Mauritius, Micronesia, Palau, Papua New Guinea, Samoa, São Tomé and Principe, Singapore, St.Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Seychelles, Solomon Islands, Suriname, Timor-Leste, Tonga, Trinidad and Tobago, and Vanuatu.
They recommended for country’s to learn from each other and that if they were to adopt the practices of each top performer in the region on the 10 areas measured by Doing Business, they would rank second globally on the overall ease of doing business.
Last updated 5/26/2008
Fiji has been ranked the highest in the Pacific as a country where they can easily do business according to a recent World Bank report. The report titled “Doing business in small islands developing States 2008” covers figures collected between April 2006 and June 2007.
The report highlighted areas compatible for developing countries to do business.
Fiji is ranked fourth against 32 other developing countries and ranked just below Singapore, Maurictius, St Lucia and Mauritius and ranked 36 in the world economies rank.
The report found that small island developing states like Fiji performed well in three Doing Business areas, dealing with licenses, employing workers and paying taxes, relatively well on the ease of starting a business, protecting investors, and trading across borders.
According to the report, priorities for reform in most of these countries are closing a business, getting credit, registering property, and enforcing contracts. Doing Business analyses government regulations that enhance business activity and those that constrain it in 178 countries, including 32 SIDS economies: Antigua and Barbuda, Belize, Cape Verde, Comoros, Dominica, Dominican Republic, Fiji, Grenada, Guinea-Bissau, Guyana, Haiti, Jamaica, Kiribati, Maldives, Marshall Islands, Mauritius, Micronesia, Palau, Papua New Guinea, Samoa, São Tomé and Principe, Singapore, St.Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Seychelles, Solomon Islands, Suriname, Timor-Leste, Tonga, Trinidad and Tobago, and Vanuatu.
They recommended for country’s to learn from each other and that if they were to adopt the practices of each top performer in the region on the 10 areas measured by Doing Business, they would rank second globally on the overall ease of doing business.
May 25, 2008
Cost Of Business High: Halabe
Cost Of Business High: Halabe
www.fijivillage.com - 25/05/2008
A leading Garment Factory owner and Managing Director of Mark One Apparel Mark Halabe said with the implementation of the Employment Relations Bill and its Maternity clause, the cost of business in Fiji has gone up.
Halabe said his personal view is that the maternity clause is unfair to the employer both financially and morally.
He told Fijivillage that to pay an employee full maternity pay for three babies and fifty percent for subsequent pregnancy will affect a company a lot.
Halabe said this will also affect our economy.
Meanwhile, under the ER Promulgation, a woman is to be paid her full pay during maternity leave for her first three pregnancies, while she would be entitled to half pay after the third child.
www.fijivillage.com - 25/05/2008
A leading Garment Factory owner and Managing Director of Mark One Apparel Mark Halabe said with the implementation of the Employment Relations Bill and its Maternity clause, the cost of business in Fiji has gone up.
Halabe said his personal view is that the maternity clause is unfair to the employer both financially and morally.
He told Fijivillage that to pay an employee full maternity pay for three babies and fifty percent for subsequent pregnancy will affect a company a lot.
Halabe said this will also affect our economy.
Meanwhile, under the ER Promulgation, a woman is to be paid her full pay during maternity leave for her first three pregnancies, while she would be entitled to half pay after the third child.
Leave Airlines Alone Politicians
Leave us alone: Airlines
www.sun.com.fj - Last updated 5/25/2008
Regional aviation heads are concerned about government interference in airline operations.
The Association of South Pacific Airlines secretary George Faktaufon said governments should just appoint the right people to management positions and let them run the airline.
Mr Faktaufon said government interference with Air Pacific in the 1960s had been near fatal as it proved to be a major failure.
Earlier in the week a cabinet task force was appointed to look into the operations and services of Air Pacific.
The four-member team comprises Civil Aviation Minister Ratu Epeli Nailatikau, Public Enterprises Minister Aiyaz Sayed-Khaiyyum, Finance Minister Mahendra Chaudhry and Tourism Minister Tom Ricketts.
It has been stated that the cabinet task force will look into staff grievances relating to the airline’s recruitment, training, promotions and delays to flight operations caused by mechanical problems to its ageing fleet of aircraft.
Over the past months Air Pacific aircraft have experienced mechanical problems and passengers faced difficulties as their flights were delayed.
Air Pacific chief executive officer John Campbell could not be reached for a comment on this issue.
www.sun.com.fj - Last updated 5/25/2008
Regional aviation heads are concerned about government interference in airline operations.
The Association of South Pacific Airlines secretary George Faktaufon said governments should just appoint the right people to management positions and let them run the airline.
Mr Faktaufon said government interference with Air Pacific in the 1960s had been near fatal as it proved to be a major failure.
Earlier in the week a cabinet task force was appointed to look into the operations and services of Air Pacific.
The four-member team comprises Civil Aviation Minister Ratu Epeli Nailatikau, Public Enterprises Minister Aiyaz Sayed-Khaiyyum, Finance Minister Mahendra Chaudhry and Tourism Minister Tom Ricketts.
It has been stated that the cabinet task force will look into staff grievances relating to the airline’s recruitment, training, promotions and delays to flight operations caused by mechanical problems to its ageing fleet of aircraft.
Over the past months Air Pacific aircraft have experienced mechanical problems and passengers faced difficulties as their flights were delayed.
Air Pacific chief executive officer John Campbell could not be reached for a comment on this issue.
March 11, 2008
Inflation rises to 7.6pc
10 MAR 2008 - www.fijilive.com
Fiji’s inflation last month rose to 7.6 per cent, up from 7.4 per cent in January, latest figures from the Fiji Islands Bureau of Statistics show.
Higher prices were recorded in almost all categories including food, alcoholic drinks and tobacco, housing, durable household goods, clothing and footwear, transport, services, miscellaneous.
Only in heating and lighting sector no change was recorded.
The All Item Consumer Price Index (CPI) for February registered an increase of 1.5 per cent over January and now stands at 156.7.
The Reserve of Fiji had last month warned that Fiji’s inflation would rise even further in the coming months. This
was after the January inflation rose to 7.4 per cent, the highest since 1998.
The RBF had said that disruptions in supply of market items caused by Cyclone Gene (late January) were bound to push inflation higher in the next few months.
The RBF had attributed the sharp increase in January inflation to the higher oil prices, some increase in duties from the national budget and some disruptions in local supply of vegetables.
According to Bureau of Statistics, last month food recorded the biggest increase (up 3.6 per cent).
Higher prices were recorded for bakery and wheat products, fresh and preserved meat, fresh fish, fresh fruit, fruit juice, dairy products, fats and oils, tea ovaltine, top dressings, confectionary and market items such as beans, English cabbages, chillies, cucumber, tomatoes, egg plant, rourou, bele, okra, tubua, cassava, pumpkin, peas, arhar and yaqona.
Marginal price increases were recorded for alcoholic drinks and tobacco (up 0.1 per cent). This was for a certain brand of alcoholic spirit and warm beer.
Housing was up by 0.1 per cent with marginal price increases for some house repair items.
Durable household goods were up 0.8 per cent with marginal price increases recorded for soft furnishing, jewellery and travel and sports goods.
For clothing and footwear (up 0.3 per cent) marginal price rises were recorded for men’s and children’s wear and men’s and children’s footwear.
Transport was up by 0.3 per cent, with new tyres and spare parts prices up marginally.
Services was up 0.4 per cent with marginal price increases recorded for education fees, medical fees and entertainment.
Higher prices were recorded for (miscellaneous) medical goods, toiletries, laundry and other household goods.
Fiji’s inflation last month rose to 7.6 per cent, up from 7.4 per cent in January, latest figures from the Fiji Islands Bureau of Statistics show.
Higher prices were recorded in almost all categories including food, alcoholic drinks and tobacco, housing, durable household goods, clothing and footwear, transport, services, miscellaneous.
Only in heating and lighting sector no change was recorded.
The All Item Consumer Price Index (CPI) for February registered an increase of 1.5 per cent over January and now stands at 156.7.
The Reserve of Fiji had last month warned that Fiji’s inflation would rise even further in the coming months. This
was after the January inflation rose to 7.4 per cent, the highest since 1998.
The RBF had said that disruptions in supply of market items caused by Cyclone Gene (late January) were bound to push inflation higher in the next few months.
The RBF had attributed the sharp increase in January inflation to the higher oil prices, some increase in duties from the national budget and some disruptions in local supply of vegetables.
According to Bureau of Statistics, last month food recorded the biggest increase (up 3.6 per cent).
Higher prices were recorded for bakery and wheat products, fresh and preserved meat, fresh fish, fresh fruit, fruit juice, dairy products, fats and oils, tea ovaltine, top dressings, confectionary and market items such as beans, English cabbages, chillies, cucumber, tomatoes, egg plant, rourou, bele, okra, tubua, cassava, pumpkin, peas, arhar and yaqona.
Marginal price increases were recorded for alcoholic drinks and tobacco (up 0.1 per cent). This was for a certain brand of alcoholic spirit and warm beer.
Housing was up by 0.1 per cent with marginal price increases for some house repair items.
Durable household goods were up 0.8 per cent with marginal price increases recorded for soft furnishing, jewellery and travel and sports goods.
For clothing and footwear (up 0.3 per cent) marginal price rises were recorded for men’s and children’s wear and men’s and children’s footwear.
Transport was up by 0.3 per cent, with new tyres and spare parts prices up marginally.
Services was up 0.4 per cent with marginal price increases recorded for education fees, medical fees and entertainment.
Higher prices were recorded for (miscellaneous) medical goods, toiletries, laundry and other household goods.
February 22, 2008
Overseas remittances drop by $64m
www.fijitimes.com
MERESEINI MARAU
Thursday, February 21, 2008
REMITTANCES from overseas had dropped by $64million last year, says Reserve Bank of Fiji governor Savenaca Narube.
He said the Reserve Bank would like to see lower remittances charges.
The Reserve Bank was exploring alternative ways of sending money to Fiji at a more reasonable charge.
Mr Narube said remittances had shot up since 2001 to a peak of $320m in 2006 to become the second biggest foreign exchange earner next to tourism.
"But last year they declined by about 20 per cent," he said.
Mr Narube said they believed the main reason for the drop was the number of security personnel in the Middle East that had tumbled significantly.
He pointed out another reason was families receiving remittances might have migrated.
The high transaction costs could also be a reason for the drop in remittances, Mr Narube believes.
He said many were resorting to sending money through mail or friends that were visiting the country.
"Those are not captured in the official statistics," he said.
Mr Narube said the exchange rate might also be a contributing factor as the US dollar had weakened against the Fiji dollar.
"All these reasons however may still not fully account for the $64m drop in remittances last year. There may be other technical reason which we are examining.
"These charges to do not appear to reflect the actual cost of remitting funds," he said.
In the current status, Mr Narube said the sender paid a lot of those charges which ultimately result in the receiver getting less Fiji dollars.
"And then at some outlets here in Fiji, the receiver gets slammed by another receiving charge."
He said in some cases, the charges amount to 50 per cent of the amount sent.
Mr Narube said the comparison of the charges internationally shows it cost $US10 to send money from the US to the Phillipines "but cost $US30 to send the same money to the Pacific."
"In my view there is no basis of these high charges."
Mr Narube said the Reserve Bank was in the process of collecting information on those charges and it intended to publish them for general information.
"We are also keen to mount an awareness program to educate people leaving our shores for work overseas and also the Fiji communities abroad on cheaper ways to send money to Fiji."
MERESEINI MARAU
Thursday, February 21, 2008
REMITTANCES from overseas had dropped by $64million last year, says Reserve Bank of Fiji governor Savenaca Narube.
He said the Reserve Bank would like to see lower remittances charges.
The Reserve Bank was exploring alternative ways of sending money to Fiji at a more reasonable charge.
Mr Narube said remittances had shot up since 2001 to a peak of $320m in 2006 to become the second biggest foreign exchange earner next to tourism.
"But last year they declined by about 20 per cent," he said.
Mr Narube said they believed the main reason for the drop was the number of security personnel in the Middle East that had tumbled significantly.
He pointed out another reason was families receiving remittances might have migrated.
The high transaction costs could also be a reason for the drop in remittances, Mr Narube believes.
He said many were resorting to sending money through mail or friends that were visiting the country.
"Those are not captured in the official statistics," he said.
Mr Narube said the exchange rate might also be a contributing factor as the US dollar had weakened against the Fiji dollar.
"All these reasons however may still not fully account for the $64m drop in remittances last year. There may be other technical reason which we are examining.
"These charges to do not appear to reflect the actual cost of remitting funds," he said.
In the current status, Mr Narube said the sender paid a lot of those charges which ultimately result in the receiver getting less Fiji dollars.
"And then at some outlets here in Fiji, the receiver gets slammed by another receiving charge."
He said in some cases, the charges amount to 50 per cent of the amount sent.
Mr Narube said the comparison of the charges internationally shows it cost $US10 to send money from the US to the Phillipines "but cost $US30 to send the same money to the Pacific."
"In my view there is no basis of these high charges."
Mr Narube said the Reserve Bank was in the process of collecting information on those charges and it intended to publish them for general information.
"We are also keen to mount an awareness program to educate people leaving our shores for work overseas and also the Fiji communities abroad on cheaper ways to send money to Fiji."
February 13, 2008
SDL company raised $1.7m
www.sun.com.fj - Last updated 2/12/2008
A Fiji Inland Revenue and Customs Authority audit into the Soqosoqo Duavata Ni Lewenivanua’s company, the Duavata Initiative Limited, ordered by the interim Finance Minister, Mahendra Chaudhry, found that it had collected over $1.7milion in donations between 2005 and 2007.
The report also revealed that businessman Ballu Khan made a telegraphic transfer of $100,000 on March 7, 2006 to DIL but another cheque of $20,000 was dishonoured in 2005.
The DIL’s receipts for the period January 1, 2005 to October 31, 2007 were over $1.7 million, according to the report dated January 15, 2008, which recommended that the directors should be re-interviewed to explain the source of the large deposits and the destination of large withdrawals.
FIRCA assumed that the $1.7million represented donations or contributions by members, presumably in the large business sector.
Total withdrawals for the same period, according to the report, from two accounts in a Suva bank were over $1.8million.
Mr Chaudhry, according to FIRCA sources, tabled the report in a special Cabinet meeting the next day, on January 16, 2008. According to the sources, he also wanted FIRCA to find a way to tax DIL.Khan recently pleaded not guilty to five counts of conspiracy to murder interim Prime Minister, Commodore Voreqe Bainimarama, Mr Chaudhry, interim A-G Aiyaz Sayed-Khaiyum, and two senior military personnel Colonel Samuela Saumatua and Lieutenant-Colonel Sitiveni Qiliho.
A day after Khan's contribution to the DIL, the Fiji Labour Party had, on March 8, 2006, lodged a complaint with the DPP and then Police Commissioner Andrew Hughes about the distribution of funds by the SDL through DIL.
The FLP had claimed that the funds distributed by the SDL to needy people were an attempt to buy votes.
According to the FIRCA report, DIL was incorporated on January 6, 2003 as a private company limited by guarantee and not having a share capital. The original directors were deposed Prime Minister Laisenia Qarase, and Cabinet Ministers Ratu Jone Kubuabola and Kaliopate Tavola.
In May 2003, the leader of the Fiji Democratic Party and later FIRCA chairman and now an interim Cabinet Minister Filipe Bole, had attacked the formation of the DIL saying the Qarase government was devoid of conscience and had discarded all sense of balance, decency and fairness in order to remain in power. Mr Qarase defended DIL, saying it was meant to raise funds for the ruling SDL party by providing it with ongoing income support.
But Mr Bole said registration of the company was tantamount to overt bribery and corruption of the first magnitude. He had questioned how decent and honest people would stand up to such a high level onslaught for funds.
Mr Bole said the government leadership did not seem able to see the conflict of interest between its official and private capacities.
The 26 objectives of the company, according to the FIRCA report, were widely drafted, with the first being as follows: “To provide financial, social, administrative, structural support and other assistance for political organisations which support free enterprise within Fiji.” The report noted that the DIL was not registered as a taxpayer and a title search showed no properties were owned. Two directors were interviewed in November 2007. They advised that the company was a non-profit one and did not undertake any commercial activity. The main source of income was donations from members.
The company's funds are used for: (a) general office administration (50 per cent); (b) members' benefits (30 per cent); and charity (10 per cent) for example scholarships for the poor.
FIRCA carried out a search of one of the banks in Suva where the directors advised the company's accounts were held.
On November 29, 2007, the bank provided bank statements for accounts 7591733 and 7195843 for the period January 1, 2005 to October 31, 2007. The bank notified FIRCA that the company held no other accounts or interest bearing deposits. It however, according to the report, stated that Mr Qarase had given the bank a $500,000 guarantee on March 28, 2006.
FIRCA provided a detailed analysis of account number 7591733 of all the deposits and withdrawals by the DIL.
On January 1, 2005 the DIL had an opening balance of $25,186 on that account and it had a closing balance of $225,979.80 on December 31, 2005. Between January 1, 2006 and December 31, 2006 it had $118,397.72, with deposits in between the period of $996,043.00 and withdrawals of $1,094,484.40. There were also dishonoured cheques of $1000.
On January 1, 2007, there was an opening balance of $118,379.92 and a closing balance of $61,083.65 on October 31, 2007.
The statements, the report stated, showed some deposit transactions with Ballu Khan, such as $20,000 dishonoured cheques in 2005 and telegraphic transfer of $100,000 on March 7, 2006.
On April 28, 2006 a withdrawal of $400,000 was made which sent the account into overdraft. There was no corresponding deposit to account number 7195843, according to the report.
The analysis of the account number 7195843 revealed that there was an opening balance of $320,231.23 on January 1, 2005, a withdrawal of $312,871.50, and a closing balance of $190,001.23 on December 30, 05. There was a deposit in 2006 of $75,000 and a closing balance of $128,609.97 on December 31, 2006. On January 1, 2007, there were withdrawals of $80,000.00, and the closing balance on December 31, 2007, was $48,544.57 leaving a zero balance on the account.
The withdrawals from account number 7591733, according the FIRCA report, did not match with deposits into account number 7195843 and vice versa, indicating that there may be other bank accounts held by the company. The report noted: “The total deposits for the period 1.1.05 to 31.10.07 for both accounts runs to over $1.7 million. This can be assumed to represent donations or contributions by members, presumably in the large business sector. Total withdrawals for the same period from both accounts are over $1.8 million. At this stage we do not know what the money was spent on or whether transferred to other accounts.”
The report also touched upon the tax status of the company, stating that the chargeable income of a resident company is its total income. Total income is defined in section 11 of the Income Tax Act as (abridged for companies): “… the aggregate of all sources … as being profits from a trade or commercial or financial or other business or calling or otherwise howsoever, directly or indirectly accrued to or derived by a person from any office or employment or from any profession or calling or from any trade, manufacture or business or otherwise howsoever, as the case may be …”
The report concluded that it did not appear that the fund-raising by the company fell into the definition above. Section 17 of the Act specifically exempts from tax the income of charities, clubs, societies, associations, trade unions, co-ops etc. While the list does not mention political organisations, “Duavata Initiative is set up more in line with these other non-profit bodies rather than a “trade or business”.
It went on to note: “If the company can be considered a “club”, and the donors “members”, then the doctrine of mutuality applies whereby the income is exempt. The income of the company is owned by the members who have contributed, and under the doctrine only income from external sources should be taxed. The company's articles are similar to most clubs e.g. upon winding up any funds must be given to another organisation with similar aims.”
The FIRCA report concluded that it was of the view that there were no tax risks associated with the company as it was in receipt of exempt income. No further investigations were done on that basis since December 2007 and, in any event, most of the auditors took leave over the holiday season.
As Key Performance Indicators within FIRCA are driven by revenue raised, there is general reluctance to pursue cases which will not contribute to the auditors' revenue results, it noted.
Nevertheless, there were some further actions which could be undertaken to ensure the tax compliance of the directors and members of the company. In relation to the company, FIRCA recommended that searches for other accounts could be conducted with all Fiji banks to locate accounts not disclosed by the directors. In relation to the accounts, bank statements could be obtained for the periods not already held - between incorporation on January 6, 2003 and December 31, 2004, and November 1, 2007 to date.
Large transactions could be vouched with the bank (i.e. the cheque forms and deposit slips obtained) to trace the source of the deposits and the destination of the withdrawals. The report however pointed out: “Note that this is a time consuming task for the bank as they have to search voluminous archives. Details of withdrawals from the vouching may point toward other bank accounts not disclosed.”
The information-gathering powers under the tax laws, the report stated, would permit such vouching to be made. “The purpose of the exercise is to determine where the member obtained the funds to make a contribution to the company. Note that contributions to political organisations are not tax deductible. It may be that the funds came from undisclosed profits of the members, or amounts disguised as deductible business expenses,” it said.
The financial statements of the company should be obtained. Under the Articles of Association the company must keep records for inspection by members, and produce a profit and loss account. The source records of the company, recording contributions of various members, should also be inspected. The directors could be re-interviewed to explain the source of the large deposits and the destination of large withdrawals.
If 50 per cent of the withdrawals ($0.9 million) were spent on “general office administration”, it would be interesting to see what this was actually expended on, the report commented.
The report suggested that FIRCA's Financial Intelligence Unit may provide information if the company's funds have been moved offshore, or deposits received from offshore. From January 1, 2008 FIRCA's secrecy provisions have been amended to allow information to be given to both FIU and FICAC.
Finally, the directors could be audited in their own right to determine if they had received income or withdrawals of funds from the company. Neither Mr Chaudhry or the SDL could be reached for comments.
A Fiji Inland Revenue and Customs Authority audit into the Soqosoqo Duavata Ni Lewenivanua’s company, the Duavata Initiative Limited, ordered by the interim Finance Minister, Mahendra Chaudhry, found that it had collected over $1.7milion in donations between 2005 and 2007.
The report also revealed that businessman Ballu Khan made a telegraphic transfer of $100,000 on March 7, 2006 to DIL but another cheque of $20,000 was dishonoured in 2005.
The DIL’s receipts for the period January 1, 2005 to October 31, 2007 were over $1.7 million, according to the report dated January 15, 2008, which recommended that the directors should be re-interviewed to explain the source of the large deposits and the destination of large withdrawals.
FIRCA assumed that the $1.7million represented donations or contributions by members, presumably in the large business sector.
Total withdrawals for the same period, according to the report, from two accounts in a Suva bank were over $1.8million.
Mr Chaudhry, according to FIRCA sources, tabled the report in a special Cabinet meeting the next day, on January 16, 2008. According to the sources, he also wanted FIRCA to find a way to tax DIL.Khan recently pleaded not guilty to five counts of conspiracy to murder interim Prime Minister, Commodore Voreqe Bainimarama, Mr Chaudhry, interim A-G Aiyaz Sayed-Khaiyum, and two senior military personnel Colonel Samuela Saumatua and Lieutenant-Colonel Sitiveni Qiliho.
A day after Khan's contribution to the DIL, the Fiji Labour Party had, on March 8, 2006, lodged a complaint with the DPP and then Police Commissioner Andrew Hughes about the distribution of funds by the SDL through DIL.
The FLP had claimed that the funds distributed by the SDL to needy people were an attempt to buy votes.
According to the FIRCA report, DIL was incorporated on January 6, 2003 as a private company limited by guarantee and not having a share capital. The original directors were deposed Prime Minister Laisenia Qarase, and Cabinet Ministers Ratu Jone Kubuabola and Kaliopate Tavola.
In May 2003, the leader of the Fiji Democratic Party and later FIRCA chairman and now an interim Cabinet Minister Filipe Bole, had attacked the formation of the DIL saying the Qarase government was devoid of conscience and had discarded all sense of balance, decency and fairness in order to remain in power. Mr Qarase defended DIL, saying it was meant to raise funds for the ruling SDL party by providing it with ongoing income support.
But Mr Bole said registration of the company was tantamount to overt bribery and corruption of the first magnitude. He had questioned how decent and honest people would stand up to such a high level onslaught for funds.
Mr Bole said the government leadership did not seem able to see the conflict of interest between its official and private capacities.
The 26 objectives of the company, according to the FIRCA report, were widely drafted, with the first being as follows: “To provide financial, social, administrative, structural support and other assistance for political organisations which support free enterprise within Fiji.” The report noted that the DIL was not registered as a taxpayer and a title search showed no properties were owned. Two directors were interviewed in November 2007. They advised that the company was a non-profit one and did not undertake any commercial activity. The main source of income was donations from members.
The company's funds are used for: (a) general office administration (50 per cent); (b) members' benefits (30 per cent); and charity (10 per cent) for example scholarships for the poor.
FIRCA carried out a search of one of the banks in Suva where the directors advised the company's accounts were held.
On November 29, 2007, the bank provided bank statements for accounts 7591733 and 7195843 for the period January 1, 2005 to October 31, 2007. The bank notified FIRCA that the company held no other accounts or interest bearing deposits. It however, according to the report, stated that Mr Qarase had given the bank a $500,000 guarantee on March 28, 2006.
FIRCA provided a detailed analysis of account number 7591733 of all the deposits and withdrawals by the DIL.
On January 1, 2005 the DIL had an opening balance of $25,186 on that account and it had a closing balance of $225,979.80 on December 31, 2005. Between January 1, 2006 and December 31, 2006 it had $118,397.72, with deposits in between the period of $996,043.00 and withdrawals of $1,094,484.40. There were also dishonoured cheques of $1000.
On January 1, 2007, there was an opening balance of $118,379.92 and a closing balance of $61,083.65 on October 31, 2007.
The statements, the report stated, showed some deposit transactions with Ballu Khan, such as $20,000 dishonoured cheques in 2005 and telegraphic transfer of $100,000 on March 7, 2006.
On April 28, 2006 a withdrawal of $400,000 was made which sent the account into overdraft. There was no corresponding deposit to account number 7195843, according to the report.
The analysis of the account number 7195843 revealed that there was an opening balance of $320,231.23 on January 1, 2005, a withdrawal of $312,871.50, and a closing balance of $190,001.23 on December 30, 05. There was a deposit in 2006 of $75,000 and a closing balance of $128,609.97 on December 31, 2006. On January 1, 2007, there were withdrawals of $80,000.00, and the closing balance on December 31, 2007, was $48,544.57 leaving a zero balance on the account.
The withdrawals from account number 7591733, according the FIRCA report, did not match with deposits into account number 7195843 and vice versa, indicating that there may be other bank accounts held by the company. The report noted: “The total deposits for the period 1.1.05 to 31.10.07 for both accounts runs to over $1.7 million. This can be assumed to represent donations or contributions by members, presumably in the large business sector. Total withdrawals for the same period from both accounts are over $1.8 million. At this stage we do not know what the money was spent on or whether transferred to other accounts.”
The report also touched upon the tax status of the company, stating that the chargeable income of a resident company is its total income. Total income is defined in section 11 of the Income Tax Act as (abridged for companies): “… the aggregate of all sources … as being profits from a trade or commercial or financial or other business or calling or otherwise howsoever, directly or indirectly accrued to or derived by a person from any office or employment or from any profession or calling or from any trade, manufacture or business or otherwise howsoever, as the case may be …”
The report concluded that it did not appear that the fund-raising by the company fell into the definition above. Section 17 of the Act specifically exempts from tax the income of charities, clubs, societies, associations, trade unions, co-ops etc. While the list does not mention political organisations, “Duavata Initiative is set up more in line with these other non-profit bodies rather than a “trade or business”.
It went on to note: “If the company can be considered a “club”, and the donors “members”, then the doctrine of mutuality applies whereby the income is exempt. The income of the company is owned by the members who have contributed, and under the doctrine only income from external sources should be taxed. The company's articles are similar to most clubs e.g. upon winding up any funds must be given to another organisation with similar aims.”
The FIRCA report concluded that it was of the view that there were no tax risks associated with the company as it was in receipt of exempt income. No further investigations were done on that basis since December 2007 and, in any event, most of the auditors took leave over the holiday season.
As Key Performance Indicators within FIRCA are driven by revenue raised, there is general reluctance to pursue cases which will not contribute to the auditors' revenue results, it noted.
Nevertheless, there were some further actions which could be undertaken to ensure the tax compliance of the directors and members of the company. In relation to the company, FIRCA recommended that searches for other accounts could be conducted with all Fiji banks to locate accounts not disclosed by the directors. In relation to the accounts, bank statements could be obtained for the periods not already held - between incorporation on January 6, 2003 and December 31, 2004, and November 1, 2007 to date.
Large transactions could be vouched with the bank (i.e. the cheque forms and deposit slips obtained) to trace the source of the deposits and the destination of the withdrawals. The report however pointed out: “Note that this is a time consuming task for the bank as they have to search voluminous archives. Details of withdrawals from the vouching may point toward other bank accounts not disclosed.”
The information-gathering powers under the tax laws, the report stated, would permit such vouching to be made. “The purpose of the exercise is to determine where the member obtained the funds to make a contribution to the company. Note that contributions to political organisations are not tax deductible. It may be that the funds came from undisclosed profits of the members, or amounts disguised as deductible business expenses,” it said.
The financial statements of the company should be obtained. Under the Articles of Association the company must keep records for inspection by members, and produce a profit and loss account. The source records of the company, recording contributions of various members, should also be inspected. The directors could be re-interviewed to explain the source of the large deposits and the destination of large withdrawals.
If 50 per cent of the withdrawals ($0.9 million) were spent on “general office administration”, it would be interesting to see what this was actually expended on, the report commented.
The report suggested that FIRCA's Financial Intelligence Unit may provide information if the company's funds have been moved offshore, or deposits received from offshore. From January 1, 2008 FIRCA's secrecy provisions have been amended to allow information to be given to both FIU and FICAC.
Finally, the directors could be audited in their own right to determine if they had received income or withdrawals of funds from the company. Neither Mr Chaudhry or the SDL could be reached for comments.
February 8, 2008
Economic Downturn for Fiji Continues
www.fijilive.com
Expect prices to go up: Reserve Bank
07 FEB 2008
In the approaching months, higher global oil and wheat prices, together with the increase in bus fares and flagfall for taxis, are expected to fuel domestic prices, the Reserve Bank of Fiji says.
Currently, the Brent Crude oil prices have eased to around $US 87.00 per barrel.
However, given the volatile and fickle pricing of this commodity, soaring crude oil prices remain a threat to inflationary outlook, the RBF says in the latest economic review.
In 2007, inflation was 4.3 per cent, underpinned by higher prices of alcoholic drinks and tobacco, clothing and footwear, miscellaneous items and durable household goods.
The increases were partially due to the upward revision in excise duties on these items, in line with announcements in the 2008 National Budget.
Moreover, food prices accelerated on the back of higher prices of bakery and wheat products, fresh meats, fish, dairy products, fats and oils and market items.
Over the month to December, consumer prices rose by 1.0 per cent.
Fiji households record lower incomes
07 FEB 2008
Households recorded lower incomes in 2007, suggests Reserve Bank of Fiji.
In 2007, net value added tax collections declined by 1.0 per cent on annual basis.
“Pay As You Earn collections also fell by around 1.0 per cent in 2007 on an annual basis suggesting lower household incomes.”
In the latest economic review, the RBF says consumption remained subdued in the review period, evident by declines in partial indicators of consumer spending.
Cumulative to November 2007, remittances declined by 27.3 per cent when compared with the same period in 2006, contributing further to subdued consumption activity.
Fiji building sector down 31pc
07 FEB 2008
Latest statistics on the building and construction sector indicate that the total value of work put in place cumulative to the third quarter totaled $165.4 million.
This was an annual decline of 31.7 per cent.
By categories, in the year to Quarter 3, the value of work put-in-place by the private sector fell significantly by 28.6 per cent with the public sector recording a much stronger decline of 44.6 per cent, the Reserve Bank of Fiji says.
Expect prices to go up: Reserve Bank
07 FEB 2008
In the approaching months, higher global oil and wheat prices, together with the increase in bus fares and flagfall for taxis, are expected to fuel domestic prices, the Reserve Bank of Fiji says.
Currently, the Brent Crude oil prices have eased to around $US 87.00 per barrel.
However, given the volatile and fickle pricing of this commodity, soaring crude oil prices remain a threat to inflationary outlook, the RBF says in the latest economic review.
In 2007, inflation was 4.3 per cent, underpinned by higher prices of alcoholic drinks and tobacco, clothing and footwear, miscellaneous items and durable household goods.
The increases were partially due to the upward revision in excise duties on these items, in line with announcements in the 2008 National Budget.
Moreover, food prices accelerated on the back of higher prices of bakery and wheat products, fresh meats, fish, dairy products, fats and oils and market items.
Over the month to December, consumer prices rose by 1.0 per cent.
Fiji households record lower incomes
07 FEB 2008
Households recorded lower incomes in 2007, suggests Reserve Bank of Fiji.
In 2007, net value added tax collections declined by 1.0 per cent on annual basis.
“Pay As You Earn collections also fell by around 1.0 per cent in 2007 on an annual basis suggesting lower household incomes.”
In the latest economic review, the RBF says consumption remained subdued in the review period, evident by declines in partial indicators of consumer spending.
Cumulative to November 2007, remittances declined by 27.3 per cent when compared with the same period in 2006, contributing further to subdued consumption activity.
Fiji building sector down 31pc
07 FEB 2008
Latest statistics on the building and construction sector indicate that the total value of work put in place cumulative to the third quarter totaled $165.4 million.
This was an annual decline of 31.7 per cent.
By categories, in the year to Quarter 3, the value of work put-in-place by the private sector fell significantly by 28.6 per cent with the public sector recording a much stronger decline of 44.6 per cent, the Reserve Bank of Fiji says.
February 7, 2008
Fiji remittances decline by 27pc
06 FEB 2008-www.fijilive.com
Remittances to Fiji have declined by 27.3 per cent cumulative to November when compared with the same period in 2006, the Reserve Bank of Fiji says.
In the latest economic review, the RBF says this has contributed further to subdued consumption activity.
In 2006, remittances brought around $350m in foreign exchange earnings. It is unclear what the remittance inflow is for 2007.
Local money transfer exchanges agree that remittances into Fiji are declining.
One dealer, Exchange World (Fiji) Ltd experienced a 10 per cent drop in remittances last year.
Manager SP Chung says most of their remittances came from Kuwait (from soldiers or bodyguards stationed in Iraq).
Chung says he does not know the reason behind the decline and nor could he project an outlook for 2008. The company has one branch in Suva.
Army spokesperson Lt Col Sitiveni Qiliho says soldiers and bodyguards stationed in Iraq usually go to Kuwait to send money back home. He says the number of people stationed in Iraq has not declined.
However, he says it is possible that money is now being sent through those soldiers coming home on leave which means the money is not going through the exchanges.
Lotus Foreign Exchange Ltd which has five branches around Fiji says it has also experienced a drop but could not say by what percentage.
Manager Ajay Kumar feels the drop could be because of the poor exchange rates.
“Maybe the rates are not good enough for the foreigners to get the inflow to Fiji.”
He says most of the money coming through their agency is in US dollars and from New Zealand (where the company headquarters is located.)
He says remittances had started declining from 2006. “When you compare rates, it is largely affecting the US dollars.”
For instance, he says before $US1000 would bring in about $F1800 but that has now dropped to about $F1400.
“It does not matter how much you are sending, the rates will go down here. So in general there is a decrease”
Kumar feels that 2008 could see a further decrease in remittances.
Last year, Finance Minister Mahendra Chaudhry had said high costs are incurred by people remitting money to Fiji
He said this is clearly not acceptable and that he had asked the Reserve Bank of Fiji to look into the matter with due urgency.
Kumar agreed saying this could be one factor. “Costs are getting high to send money to Fiji.”
Remittances to Fiji have declined by 27.3 per cent cumulative to November when compared with the same period in 2006, the Reserve Bank of Fiji says.
In the latest economic review, the RBF says this has contributed further to subdued consumption activity.
In 2006, remittances brought around $350m in foreign exchange earnings. It is unclear what the remittance inflow is for 2007.
Local money transfer exchanges agree that remittances into Fiji are declining.
One dealer, Exchange World (Fiji) Ltd experienced a 10 per cent drop in remittances last year.
Manager SP Chung says most of their remittances came from Kuwait (from soldiers or bodyguards stationed in Iraq).
Chung says he does not know the reason behind the decline and nor could he project an outlook for 2008. The company has one branch in Suva.
Army spokesperson Lt Col Sitiveni Qiliho says soldiers and bodyguards stationed in Iraq usually go to Kuwait to send money back home. He says the number of people stationed in Iraq has not declined.
However, he says it is possible that money is now being sent through those soldiers coming home on leave which means the money is not going through the exchanges.
Lotus Foreign Exchange Ltd which has five branches around Fiji says it has also experienced a drop but could not say by what percentage.
Manager Ajay Kumar feels the drop could be because of the poor exchange rates.
“Maybe the rates are not good enough for the foreigners to get the inflow to Fiji.”
He says most of the money coming through their agency is in US dollars and from New Zealand (where the company headquarters is located.)
He says remittances had started declining from 2006. “When you compare rates, it is largely affecting the US dollars.”
For instance, he says before $US1000 would bring in about $F1800 but that has now dropped to about $F1400.
“It does not matter how much you are sending, the rates will go down here. So in general there is a decrease”
Kumar feels that 2008 could see a further decrease in remittances.
Last year, Finance Minister Mahendra Chaudhry had said high costs are incurred by people remitting money to Fiji
He said this is clearly not acceptable and that he had asked the Reserve Bank of Fiji to look into the matter with due urgency.
Kumar agreed saying this could be one factor. “Costs are getting high to send money to Fiji.”
February 1, 2008
ADB to review assistance to region
www.fijitimes.com - Thursday, January 31, 2008
Update: 11.38am CITING coups and civil unrest that continue to hamper development in the Pacific, the Asian Development Bank (ADB) is fine-tuning its development assistance in the region, according to a report carried by Pacnews.
''The Pacific region continues to display the symptoms of a fragile development process. Economic growth generally remains low,'' says Philip Erquiaga, Director General of ADB's Pacific Department.
''Civil unrest, political instability, and poor law-and-order continue to hinder the region's development,'' he said.
The midterm review of ADB's Pacific Strategy 2005-2009 affects the Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu and Vanuatu.
Economic growth in the Pacific Islands was modest in 2007, according to ADB's flagship annual economic report, Asian Development Outlook.
The Pacific economies continue to lag behind Asia, and much of the Pacific region's population is exposed to a decline in living standards when economic conditions weaken.
The total level of approved ADB assistance has increased substantially under its Pacific Strategy programme to US$462.4m in 2005-2007, or a 141 percent increase above the US$191.7 million in the preceding three year.
Update: 11.38am CITING coups and civil unrest that continue to hamper development in the Pacific, the Asian Development Bank (ADB) is fine-tuning its development assistance in the region, according to a report carried by Pacnews.
''The Pacific region continues to display the symptoms of a fragile development process. Economic growth generally remains low,'' says Philip Erquiaga, Director General of ADB's Pacific Department.
''Civil unrest, political instability, and poor law-and-order continue to hinder the region's development,'' he said.
The midterm review of ADB's Pacific Strategy 2005-2009 affects the Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu and Vanuatu.
Economic growth in the Pacific Islands was modest in 2007, according to ADB's flagship annual economic report, Asian Development Outlook.
The Pacific economies continue to lag behind Asia, and much of the Pacific region's population is exposed to a decline in living standards when economic conditions weaken.
The total level of approved ADB assistance has increased substantially under its Pacific Strategy programme to US$462.4m in 2005-2007, or a 141 percent increase above the US$191.7 million in the preceding three year.
January 26, 2008
Developer sues Fiji govt for $25m
www.fijilive.com - 24 JAN 2008
Matapo Ltd, the developers of the multi-million dollar Momi Bay Resort in Nadi, is suing government for the reimbursement of about $25 million for a road project it had built from Momi Bay Resort to the Queens Highway.
The developers had built the road on the understanding that the cost would be reimbursed once it was completed and which the government has failed to do, Matapo lawyer Samuel Ram from Ba says.
He says the road was completed in March 2007. The maintenance period is believed to have also expired by now.
Matapo filed a petition in court in December and the case is being called for a hearing next Tuesday.
“Government has not given a proper reason for not reimbursing the money, which is one of the reasons the company has gone to court. We want them to specify why they are refusing to do it,” Ram said.
He said they are asking the court to order the money be paid Matapo now.
The Government had done a similar deal with the developers of other projects including Natadola.
Matapo Ltd, the developers of the multi-million dollar Momi Bay Resort in Nadi, is suing government for the reimbursement of about $25 million for a road project it had built from Momi Bay Resort to the Queens Highway.
The developers had built the road on the understanding that the cost would be reimbursed once it was completed and which the government has failed to do, Matapo lawyer Samuel Ram from Ba says.
He says the road was completed in March 2007. The maintenance period is believed to have also expired by now.
Matapo filed a petition in court in December and the case is being called for a hearing next Tuesday.
“Government has not given a proper reason for not reimbursing the money, which is one of the reasons the company has gone to court. We want them to specify why they are refusing to do it,” Ram said.
He said they are asking the court to order the money be paid Matapo now.
The Government had done a similar deal with the developers of other projects including Natadola.
January 18, 2008
Members flock to withdraw their savings for school
UNAISI RATUBALAVU
Thursday, January 17, 2008
People flock to the Fiji National Provident Fund office in Suva yesterday for partial withdrawals to pay for school needs+ Enlarge this image
People flock to the Fiji National Provident Fund office in Suva yesterday for partial withdrawals to pay for school needs
PEOPLE jam-packed the Fiji National Provident Fund office in Suva the past week to apply for a partial withdrawal for education.
The Fund has been giving up to $500 to low income earners and unemployed members to help their case.
One of the members, Navua casual labourer Sashi Lal, came early yesterday to apply.
"I have been coming for the past two days because the FNPF needed original birth certificates of my children.
"Hopefully, I will get $500 by Friday so I can buy my children's books and school needs," he said.
Mr Lal has three children in primary school this year.
"I'm worried because school starts next week but I have no money to buy books."
A single mother from Wailotua in Wainibuka, Unaisi Tinai, lodged her application yesterday.
She said she was happy the FNPF was helping poor people during this time of need.
Ms Tinai, 30, will be sending her son to Form Three at Naiyala Secondary School.
FNPF acting chief executive Aisake Taito said they were helping low income earners and the unemployed for their children's educational needs.
"For people earning $150 gross and less in a week, the maximum withdrawal is $500.
"Unemployed members can access this assistance once every six months, with a maximum of $500 per assistance," Mr Taito said.
He added that the Fund was aware of the financial hardships most members were facing and introduced the part withdrawals.
"Members need to have eligibility in order to withdraw."
Low income earners need to provide their current pay slip, a letter from school confirming their child was enrolled and the fees owed and original birth certificate to show relationship to member.
Unemployed people must provide a termination letter from their last employer in the past six months, letter from school confirming their child's enrolment and fees, child's birth certificate, together and fill an application form.
Thursday, January 17, 2008
People flock to the Fiji National Provident Fund office in Suva yesterday for partial withdrawals to pay for school needs+ Enlarge this image
People flock to the Fiji National Provident Fund office in Suva yesterday for partial withdrawals to pay for school needs
PEOPLE jam-packed the Fiji National Provident Fund office in Suva the past week to apply for a partial withdrawal for education.
The Fund has been giving up to $500 to low income earners and unemployed members to help their case.
One of the members, Navua casual labourer Sashi Lal, came early yesterday to apply.
"I have been coming for the past two days because the FNPF needed original birth certificates of my children.
"Hopefully, I will get $500 by Friday so I can buy my children's books and school needs," he said.
Mr Lal has three children in primary school this year.
"I'm worried because school starts next week but I have no money to buy books."
A single mother from Wailotua in Wainibuka, Unaisi Tinai, lodged her application yesterday.
She said she was happy the FNPF was helping poor people during this time of need.
Ms Tinai, 30, will be sending her son to Form Three at Naiyala Secondary School.
FNPF acting chief executive Aisake Taito said they were helping low income earners and the unemployed for their children's educational needs.
"For people earning $150 gross and less in a week, the maximum withdrawal is $500.
"Unemployed members can access this assistance once every six months, with a maximum of $500 per assistance," Mr Taito said.
He added that the Fund was aware of the financial hardships most members were facing and introduced the part withdrawals.
"Members need to have eligibility in order to withdraw."
Low income earners need to provide their current pay slip, a letter from school confirming their child was enrolled and the fees owed and original birth certificate to show relationship to member.
Unemployed people must provide a termination letter from their last employer in the past six months, letter from school confirming their child's enrolment and fees, child's birth certificate, together and fill an application form.
Resolve Fiji's land problems first: Qarase
www.fijilive.com - 17 JAN 2008
Fiji’s land problems should all be resolved first before improved utilisation of land occurs, says ousted Prime Minister Laisenia Qarase.
He said landowners need to be given a fair go via improved land rentals and longer and secure land tenure – the two major problems.
“Problems of agricultural land in Fiji will continue unless and until the two problems are resolved,” Qarase said.
His comments followed a recent Cabinet decision to establish a committee on better utilisation of land (CBUL).
He said both these issues were provided for under the Agricultural Landlord Tenants Act (ALTA), and this legislation could only be amended by a special majority vote in Parliament.
“For two decades now, successive governments have failed to resolve the land problems,” Qarase said.
He said a lot of independent studies had been carried out on agricultural land rent in Fiji and the general conclusion was that Fiji had one of the lowest in the world.
“In fact, it was found that even though ALTA sets the rent formula at up to 6 per cent of unimproved capital value (UCV), the actual rent income received by landowners has been around only 2 per cent of UCV,’ Qarase said.
“On this basis, it has been calculated that Fijian owners of leased agricultural land have been denied additional income of over $1 billion since 1976, because 2 per cent UCV is well below a fair market rent,” he said.
Qarase suggested that the interim Government subsidise the land rent to a fair market rate as a temporary measure until both legislation are amended by Parliament.
He said it would be better for landowners to secure a fair market rent on their land, rather than talking about its utilisation. Utilisation of land will come naturally once the basic land problems have been resolved.
Bainimarama had said the proposed establishment of a CBUL had no intention to alter land ownership but only improve land utilisation.
“The CBUL would oversee consultations on this issue with landowners,” he said.
He said the reluctance of Fijian landowners largely resulted from the absolute misadvise, lies and political manipulation espoused by narrow minded politicians and other individuals.
Fiji’s land problems should all be resolved first before improved utilisation of land occurs, says ousted Prime Minister Laisenia Qarase.
He said landowners need to be given a fair go via improved land rentals and longer and secure land tenure – the two major problems.
“Problems of agricultural land in Fiji will continue unless and until the two problems are resolved,” Qarase said.
His comments followed a recent Cabinet decision to establish a committee on better utilisation of land (CBUL).
He said both these issues were provided for under the Agricultural Landlord Tenants Act (ALTA), and this legislation could only be amended by a special majority vote in Parliament.
“For two decades now, successive governments have failed to resolve the land problems,” Qarase said.
He said a lot of independent studies had been carried out on agricultural land rent in Fiji and the general conclusion was that Fiji had one of the lowest in the world.
“In fact, it was found that even though ALTA sets the rent formula at up to 6 per cent of unimproved capital value (UCV), the actual rent income received by landowners has been around only 2 per cent of UCV,’ Qarase said.
“On this basis, it has been calculated that Fijian owners of leased agricultural land have been denied additional income of over $1 billion since 1976, because 2 per cent UCV is well below a fair market rent,” he said.
Qarase suggested that the interim Government subsidise the land rent to a fair market rate as a temporary measure until both legislation are amended by Parliament.
He said it would be better for landowners to secure a fair market rent on their land, rather than talking about its utilisation. Utilisation of land will come naturally once the basic land problems have been resolved.
Bainimarama had said the proposed establishment of a CBUL had no intention to alter land ownership but only improve land utilisation.
“The CBUL would oversee consultations on this issue with landowners,” he said.
He said the reluctance of Fijian landowners largely resulted from the absolute misadvise, lies and political manipulation espoused by narrow minded politicians and other individuals.
January 16, 2008
$77m drop
VUNILEBA
www.fijitimes.com - Tuesday, January 15, 2008
MONEY remitted by Fijians working overseas hit $183.7-million in September last year a drop of almost 30 per cent when compared to the $260.7m for the same period in 2006.
Reserve Bank of Fiji acting deputy Governor Barry Whiteside said reasons for the decline could not be ascertained by the central bank.
"remittance have grown significantly in the past few years, rising from $50million in 1999 to $320million in 2006," said Mr Whiteside.
"This surge in inflows has helped Fiji's balance of payments position, especially as the rising trends occurred during a period when exports were generally flat (with growth in imports substantial)."
"In 2007, however, we have seen a decline from 2006 levels."
"Latest figures show that cumulative to September 2007, remittance received through the formal channel was around $183.7m, a decline of around 30 per cent, when compared to $260.7 million recorded in the same period in 2006." Mr Whiteside said remittance, like other services inflows, were volatile and sensitive in nature to a number of factors, such as global economic conditions.
He said the RBF could not explicitly ascertain the reasons for the decline in remittance last year.
He said the RBF collated and published data on a regular basis through the formal channel.
That, Mr Whiteside said, was based on reports from commercial banks and authorised foreign exchange dealers.
"However, it is important to note that the personal remittance inflows through informal channels may be significant, similar to the experiences of other developing countries," he said. He said the latest figures were available to September of last year.
The Bureau of Statistics last December quoted provisional figures of $210.4m as tourism earnings for the third quarter last year. This, the bureau said, was a decline of $10.5m or 4.8 per cent when compared to $220.9m for the same period last year.
In its economic review at the end of October last year, the RBF said production in the sugar industry declined by almost 10 per cent cumulative to September with the recent drought expected to affect the 2007 and 2008 crops.
Attempts to get comments from interim Finance Minister Mahendra Chaudhry and ousted Prime Minister Laisenia Qarase were unsuccessful.
www.fijitimes.com - Tuesday, January 15, 2008
MONEY remitted by Fijians working overseas hit $183.7-million in September last year a drop of almost 30 per cent when compared to the $260.7m for the same period in 2006.
Reserve Bank of Fiji acting deputy Governor Barry Whiteside said reasons for the decline could not be ascertained by the central bank.
"remittance have grown significantly in the past few years, rising from $50million in 1999 to $320million in 2006," said Mr Whiteside.
"This surge in inflows has helped Fiji's balance of payments position, especially as the rising trends occurred during a period when exports were generally flat (with growth in imports substantial)."
"In 2007, however, we have seen a decline from 2006 levels."
"Latest figures show that cumulative to September 2007, remittance received through the formal channel was around $183.7m, a decline of around 30 per cent, when compared to $260.7 million recorded in the same period in 2006." Mr Whiteside said remittance, like other services inflows, were volatile and sensitive in nature to a number of factors, such as global economic conditions.
He said the RBF could not explicitly ascertain the reasons for the decline in remittance last year.
He said the RBF collated and published data on a regular basis through the formal channel.
That, Mr Whiteside said, was based on reports from commercial banks and authorised foreign exchange dealers.
"However, it is important to note that the personal remittance inflows through informal channels may be significant, similar to the experiences of other developing countries," he said. He said the latest figures were available to September of last year.
The Bureau of Statistics last December quoted provisional figures of $210.4m as tourism earnings for the third quarter last year. This, the bureau said, was a decline of $10.5m or 4.8 per cent when compared to $220.9m for the same period last year.
In its economic review at the end of October last year, the RBF said production in the sugar industry declined by almost 10 per cent cumulative to September with the recent drought expected to affect the 2007 and 2008 crops.
Attempts to get comments from interim Finance Minister Mahendra Chaudhry and ousted Prime Minister Laisenia Qarase were unsuccessful.
January 14, 2008
Beauty rises from the ashes of divorce
MARY JOHNS-RAUTO
Sunday, January 13, 2008
Unaisi Rakuro sports some of Mrs Heaths jewellery while more are on display+ Enlarge this image
Unaisi Rakuro sports some of Mrs Heaths jewellery while more are on display
IT'S hard to imagine that a flourishing jewellery business would emerge from the ashes of a bitter divorce. But that's exactly what happened in the case of Jennifer Heath.
Mrs Heath, an American, had been married to a Fiji citizen for 12 years but in 1999 decided he didn't want to remain married and left her high and dry with children to support.
They finally divorced in 2004 and by then Mrs Heath had to find a way to support herself and her children.
She chose to stay in Fiji while her ex-husband moved to the United States.
"I was devastated," she said of the divorce. "I turned to God, prayed and fasted.
"I was born and raised an Anglican but I never had a personal relationship with God until then."
It was then that her love of stringing pearls together and making simple necklaces and bracelets for friends began to form into something more substantial.
After a four-year divorce process, she spent Christmas 2004 with her children and ex-husband in California.
They had agreed that as long as they weren't seeing anyone Christmas would be spent with their children.
Instead of returning direct to Fiji, she flew to London and Asia to shop for pearls.
"I loved doing pearl jewellery the usual white, pink and peach, then I stared adding crystals."
Mrs Heath said she would visit businesses with her basket of wired pearl jewellery.
"Then I started going to the ROC market," she said.
"One day I decided that I had to let go of my husband and the divorce, take a leap of faith and trust God with my business.
"If I didn't step out of my comfort zone, how was He going to help me?"
Today, Jennifer is married to Richard Heath the pair was introduced through a mutual friend but their relationship took a while to bloom.
The couple celebrated their first anniversary in December.
"I saw him at the ROC Market in November 2005," she said.
"When I saw him my heart skipped a beat."
By mid-2006 Richard and Jennifer were engaged and six months later they married.
Mrs Heath now has nine people working for her from her home in Lami.
"We pray before we start work every day," she said.
"We ask Him to bless us, the business and to be able to see new opportunities.
"This business has in 18 months taken me around the world six times.
"God has restored my dignity and the glory has to go to Him because He is the one who has given me the strength."
Mr Heath is originally from Napier in New Zealand and in November they opened a shop there.
He resigned from his post with the Hawkes Bay Chamber of Commerce to help his wife.
Mrs Heath's designs can be found at the Cocoon Boutique at the Westin, Sheraton and Hilton Resorts on Denarau.
They can also be found at Tokoriki Island Resort, Pearl Resort at Pacific Harbour, the Art Gallery in Savusavu, Head to Toe beauty salon and MHCC in Suva, Archipelago at the airport concourse or the Vale ni Tadra on Marine Drive, Lami.
Jewellery can be specially ordered. She sits with clients to design jewellery according to their preferences. But most of the jewellery that goes on sale are designed by Mrs Heath and her employees.
"When we do bridal," she said, "we do the whole bridal party from the bride to the bridesmaid's jewellery.
"We do a lot of weddings too so we have a bridal range."
While her biggest clients are commercial, expatriate women also order from her and so do many locals.
Her jewellery prices range from $25 to $300 and prices will drop by 30 to 50 per cent at the next ROC Market to make way for new stock
Sunday, January 13, 2008
Unaisi Rakuro sports some of Mrs Heaths jewellery while more are on display+ Enlarge this image
Unaisi Rakuro sports some of Mrs Heaths jewellery while more are on display
IT'S hard to imagine that a flourishing jewellery business would emerge from the ashes of a bitter divorce. But that's exactly what happened in the case of Jennifer Heath.
Mrs Heath, an American, had been married to a Fiji citizen for 12 years but in 1999 decided he didn't want to remain married and left her high and dry with children to support.
They finally divorced in 2004 and by then Mrs Heath had to find a way to support herself and her children.
She chose to stay in Fiji while her ex-husband moved to the United States.
"I was devastated," she said of the divorce. "I turned to God, prayed and fasted.
"I was born and raised an Anglican but I never had a personal relationship with God until then."
It was then that her love of stringing pearls together and making simple necklaces and bracelets for friends began to form into something more substantial.
After a four-year divorce process, she spent Christmas 2004 with her children and ex-husband in California.
They had agreed that as long as they weren't seeing anyone Christmas would be spent with their children.
Instead of returning direct to Fiji, she flew to London and Asia to shop for pearls.
"I loved doing pearl jewellery the usual white, pink and peach, then I stared adding crystals."
Mrs Heath said she would visit businesses with her basket of wired pearl jewellery.
"Then I started going to the ROC market," she said.
"One day I decided that I had to let go of my husband and the divorce, take a leap of faith and trust God with my business.
"If I didn't step out of my comfort zone, how was He going to help me?"
Today, Jennifer is married to Richard Heath the pair was introduced through a mutual friend but their relationship took a while to bloom.
The couple celebrated their first anniversary in December.
"I saw him at the ROC Market in November 2005," she said.
"When I saw him my heart skipped a beat."
By mid-2006 Richard and Jennifer were engaged and six months later they married.
Mrs Heath now has nine people working for her from her home in Lami.
"We pray before we start work every day," she said.
"We ask Him to bless us, the business and to be able to see new opportunities.
"This business has in 18 months taken me around the world six times.
"God has restored my dignity and the glory has to go to Him because He is the one who has given me the strength."
Mr Heath is originally from Napier in New Zealand and in November they opened a shop there.
He resigned from his post with the Hawkes Bay Chamber of Commerce to help his wife.
Mrs Heath's designs can be found at the Cocoon Boutique at the Westin, Sheraton and Hilton Resorts on Denarau.
They can also be found at Tokoriki Island Resort, Pearl Resort at Pacific Harbour, the Art Gallery in Savusavu, Head to Toe beauty salon and MHCC in Suva, Archipelago at the airport concourse or the Vale ni Tadra on Marine Drive, Lami.
Jewellery can be specially ordered. She sits with clients to design jewellery according to their preferences. But most of the jewellery that goes on sale are designed by Mrs Heath and her employees.
"When we do bridal," she said, "we do the whole bridal party from the bride to the bridesmaid's jewellery.
"We do a lot of weddings too so we have a bridal range."
While her biggest clients are commercial, expatriate women also order from her and so do many locals.
Her jewellery prices range from $25 to $300 and prices will drop by 30 to 50 per cent at the next ROC Market to make way for new stock
January 9, 2008
Ratu Sakiusa branches out
ASHWINI PRASAD
Wednesday, January 09, 2008 - www.fijitimes.com
+ Enlarge this image
Ratu Sakiusa Tuisolia inside his fish and chips restaurant in Samabula yesterday
RATU Sakiusa Tuisolia has gone from being an economist and finance analyst running the country's largest airport, to being a businessman dispensing food.
The 40-year-old, who has worked in the government sector for 17 years, said office work no longer interested him which was one reason he ventured into the food industry.
Ratu Sakiusa, the former Airports Fiji Limited chief executive officer, recently opened the Roma's Hook and Chook Fish and Chips outlet in Samabula, Suva.
"Office work no longer interests me it was like a routine and I was becoming bored," he said.
Ratu Sakiusa said he wanted to broaden his skills and the food industry held great potential. It was an area that had long fascinated him.
"I decided to do something simple that I could manage for a start," he said.
"I have this fascination for fish and chips. Well I always had plans at the back of my mind that I will eventually get my own business to become my own boss and invest in areas of my personal interest," he said.
"I have this interest in food, going to restaurants and trying out different types of food."
Ratu Sakiusa said with the fish and chips he had tried around the world, he knew there was potential to make something better than what was available in the market.
Ratu Sakiusa said he had plans to open a chain of restaurants which started with the first one in Samabula and the second one to be opened in central Suva in February.
Another enterprise he owns is the Seven Eleven convenience store in central Suva. Both the shops employ 15 people.
He plans to make the restaurant a national chain and a franchise in the South Pacific, Australia or New Zealand.
Wednesday, January 09, 2008 - www.fijitimes.com
+ Enlarge this image
Ratu Sakiusa Tuisolia inside his fish and chips restaurant in Samabula yesterday
RATU Sakiusa Tuisolia has gone from being an economist and finance analyst running the country's largest airport, to being a businessman dispensing food.
The 40-year-old, who has worked in the government sector for 17 years, said office work no longer interested him which was one reason he ventured into the food industry.
Ratu Sakiusa, the former Airports Fiji Limited chief executive officer, recently opened the Roma's Hook and Chook Fish and Chips outlet in Samabula, Suva.
"Office work no longer interests me it was like a routine and I was becoming bored," he said.
Ratu Sakiusa said he wanted to broaden his skills and the food industry held great potential. It was an area that had long fascinated him.
"I decided to do something simple that I could manage for a start," he said.
"I have this fascination for fish and chips. Well I always had plans at the back of my mind that I will eventually get my own business to become my own boss and invest in areas of my personal interest," he said.
"I have this interest in food, going to restaurants and trying out different types of food."
Ratu Sakiusa said with the fish and chips he had tried around the world, he knew there was potential to make something better than what was available in the market.
Ratu Sakiusa said he had plans to open a chain of restaurants which started with the first one in Samabula and the second one to be opened in central Suva in February.
Another enterprise he owns is the Seven Eleven convenience store in central Suva. Both the shops employ 15 people.
He plans to make the restaurant a national chain and a franchise in the South Pacific, Australia or New Zealand.
Coup blamed for drop in Fiji-NZ trade
4-Jan-2008 09:58 AM - www.fijidailypost.com
FIJI-New Zealand Business Council president Mark Hirst says jobs in the construction and tourism sectors have declined dramatically since the events of December 2006.
Hirst believes business between the two countries could be smoother if the two governments sort things out.
“The general consensus with our members, there’s been a definite downturn in the business between the two countries, especially in the status of construction and tourism but there are indicators that it is starting to pick up at the end,” Hirst said.
“Most of our members have struggled also in the garment industries etc.”
But Hirst is optimistic about the future.
“From the information we’ve picked up in the last few weeks in different conferences, there’s been a definite upward turn,” he said.
“There’s still a bit of a pain to get through but that can be altered when the two governments from the two countries sit around and sort a few things out,” he said.
FIJI-New Zealand Business Council president Mark Hirst says jobs in the construction and tourism sectors have declined dramatically since the events of December 2006.
Hirst believes business between the two countries could be smoother if the two governments sort things out.
“The general consensus with our members, there’s been a definite downturn in the business between the two countries, especially in the status of construction and tourism but there are indicators that it is starting to pick up at the end,” Hirst said.
“Most of our members have struggled also in the garment industries etc.”
But Hirst is optimistic about the future.
“From the information we’ve picked up in the last few weeks in different conferences, there’s been a definite upward turn,” he said.
“There’s still a bit of a pain to get through but that can be altered when the two governments from the two countries sit around and sort a few things out,” he said.
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