Fiji not immune to global crisis

Fiji not immune to global crisis
http://www.fijitimes.com/

By Geraldine Panapasa, Thursday, July 30, 2009

THE Pacific, including Fiji, is not immune to the impact of the global economic crisis, says Aus-tralian High Commissioner James Batley. Mr Batley was chief guest at the Fiji Economy Update 2009 presentation at the University of the South Pacific yesterday. The presentation was a co-orperation between the USP's School of Economics, Faculty of Business and Economics, the Crawford School of Economics and government and the Australian National University. "The update is taking place a week ahead of the Pacific Island leaders meeting in Cairns, Australia, and the global economic crisis is likely to be the key issue for discussion," Mr Batley said. "One of the significant issues that leaders will discuss is whether to start negotiation on a new regional trade and economic integration agreement, known as PACER Plus." Mr Batley said trading relationship between Fiji and Australia continued to be a strong one, reflecting the strong link between the two countries. He said Fiji continued to benefit from privileged access to the Australian market under international agreements and arrangements. "Australia has a keen interest in the update as a neighbour who wants to see Fiji fulfill its economic potential." he said.
Mr Batley said the University should continue fulfilling its traditional role of providing space for the free and respectful exchange of ideas and opinions. The Fiji Economic Update 2009 was held at USP Lower Laucala Campus yesterday. Presentations will also be held in Labasa at Hotel Northpole tomorrow.

More poverty around
Thursday, July 30, 2009

THE unemployment rate has been hovering above the 8 per cent mark since 2000, says an academic. The changing of the retirement age from 60 to 55 will increase the number of vacancies. The associate professor of economics at the University of Queensland, Renuka Mahadevan, made the comment while presenting her survey at the 2009 Fiji Economy Update yesterday.

"Along with other factors, increasing unemployment is a likely underlying factor for the consistent decline in Fiji's ranking on the UNDP's human development index," she said. "The index, however, understates the real situation as it excludes gender discrimination, income inequality and more-difficult-to-measure indicators such as respect for human rights and political freedom which have taken a nosedive." She said poverty has worsened three-fold.

Most fuel for energy
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By Geraldine Panapasa, Thursday, July 30, 2009

FIJI'S energy sector relies heavily on imported fossil fuel for industrial, domestic, transport and power generation needs, says associate professor of physics Anirudh Singh at the University of the South Pacific. Speaking at the Fiji Economy update 2009 presentation, Mr Singh said a significant part of imported fuel was directed to electrical power generation. "The commercial sector was the heaviest user of electricity accounting for 43 per cent of generated electricity in 2007," he said. "By far, the greatest consumer of imported fuel is industrial distillate using 45.6 per cent of the 808 million litres imported in 2007. "The aviation industry is the next biggest consumer, using 35.5 per cent of the total. "It is followed by road transportation which takes up 17.1 per cent of total fuel imports." Mr Singh said a significant fraction of total energy demand in Fiji was met by biomass energy. He said coconut oil and biofuel derived from it could be used as alternatives to diesel. While the country's non-fossil fuel generation capacity has remained fixed, total energy demand has risen steadily and rising imported fossil fuel costs have placed pressure on Fiji's imports bill. "The best approach to contain or reverse this is to introduce more indigenous sources of energy into the electricity generation system with the obvious one being renewable energy," Mr Singh said. He said reductions in fuel imports will result when the land transport sector begins to switch to bio fuels.

Fiji Tourism Collapse Not Good

Tourism collapse not good
www.fijitimes.com - Thursday, July 30, 2009

A COLLAPSE in the tourism or sugar sector will have a negative flow-on effect on the economy, says University of Queensland associate professor of economics Renuka Mahadevan. She made the comment in her assessment of the Fiji economy at the 2009 Fiji Economy Update presentation yesterday. She said there was a need for diversification into other crops apart from sugar as non-agricultural production contributed to six per cent of Gross Domestic Product. "The huge potential in this area remains unexploited. About 50 per cent of the people are rural farmers," Ms Mahadevan said. "Creation of employment opportunities is necessary to lift them out of poverty. Local production is insufficient and cannot be depended on to meet the high standards required by the tourism sector which imports food because of the poor quality and lack of continuity in supply." Australian High Commissioner James Batley said Australia was serious about providing direct support for Fiji's export-related sectors. He said the assistance was consistent with Australia's long history of assistance to Fiji. "We also maintain significant programs of assistance in the education and health sectors as well as working on community sector development," Mr Batley said. He said Fiji was benefiting from an Australian pilot program, the Enterprise Challenge Fund, which provides grants to business projects to improve.
livelihoods, incomes and access to vital goods and services for local communities.

Housing affordability in Fiji

Housing affordability
http://www.fijitimes.com/ - Reports by GERALDINE PANAPASA

Thursday, July 30, 2009

A squatter settlement at Muanivatu outside Suva

RURAL-urban migration, low wages, expired land lease and financial demands are some factors that contribute to the housing crisis in Fiji, says Father Kevin Barr. In his report presented at the 2009 Fiji Economy Updates on housing affordability on Tuesday, Fr Barr said these factors led to the growth in squatter settlements in the country.

"About 15 per cent of Fiji's population live in overcrowded, sub-standard and unhygienic housing in more than 200 squatter settlements," Fr Barr said. "There is inequality and the percentage of those in poverty has grown drastically. Quality of life for the ordinary people has not improved and we have seen the development of the very large Fiji of the poor and struggling and the small Fiji of the rich." Fr Barr said subsidy for housing was not a large commitment by the government particularly when it acknowledged that housing was a human right. "Those responsible for housing the nation's population must think in terms of availability and affordability," Fr Barr said. "It is not just a matter of acquiring land, developing lots and building houses. The lots and houses must be affordable for the people. "Any national housing scheme must take into account the income level of the people to determine what is affordable for those in the particular income levels." Fr Barr said housing agencies need to be able to deliver houses at a level of affordability.
He said when majority of the population earned low income, housing must be provided so that they can afford it.

Professor Wadan Narsey said in his analysis of poverty in Fiji that low income earners in 2002 and 2003 spent about 60 per cent of their pay on food. "The price of basic food is increasing, which leaves little with which to pay rent or pay off a housing loan," Fr Barr said. He said about 25,000 poor people were receiving family assistance which came to a minimum of $60 a month or maximum of $120 a month.

Reassess Housing Authority, PRB role: Barr
www.fijilive.com - July 30, 2009

Fiji Wage Council chairman and poverty advocate Father Kevin Barr has called on government to re-look the roles played by Housing Authority and the Public Rental Board as there was “a very real danger” that their commercialization would go against their intended role to provide housing for the poor. Barr said allowing the two state companies to operate along commercial lines and charging market rates and market rents may make good economic sense but if a high percentage of the population could not afford to pay these rates, there was a serious need to question how they would be provided with affordable homes. “In 1997 when, on the advice from the World Bank, the HA and PRB were separated, the World Bank advisor who came to Fiji said that the PRB must charge economic rents for its rental units. This meant that rents for those living in the Four Storey flats at Raiwaqa would pay $58 a month instead of $12 a month. Someone asked: ‘What happens to those who cannot afford to pay the increased rent?’ The reply was: ‘Just flush them out.’ Many were horrified that this unfeeling, economic/commercial attitude should dominate the man’s thinking. He didn’t seem to be concerned where people went if they couldn’t pay. He didn’t think of the social consequences. His attitudes were dominated by principles such as ‘user pays’ and the theories of ‘economic rationalism’ and ‘free market economics,’” Barr said.“If HA and PRB are to be relevant in today’s world, they need to do careful research to find out what ‘low income’ really means so that their products can be affordable to this group. “With such a high level of poverty in the country, over 35 percent, and such a large number of full time workers receiving wages below the poverty line (between 55 and 60 percent) and 71 percent of workers earning incomes below $15,000, serious reassessment of the demands placed on HA and PRB is needed,” Barr added. Among the many ways that housing could be made affordable to the poor, Barr suggested the provision of government subsidies as well as getting the poor to participate in schemes to build houses, thereby reducing costs.

FHL Investigated

Sidelined chair backs FHL probe
By ASHWINI PRASADMonday

www.fijitimes.com - July 06, 2009

THE Fijian Holdings Limited board should carry on with its investigations, says Chairman Isoa Kaloumaira. Mr Kaloumaira who was sent on leave said he would let the board do its investigations and stand by the statement made by the board last Friday. He did not wish to further comment on the matter. Last week in a statement to the South Pacific Stock Exchange acting chairman Ioane Naiveli had said FHL CEO Sereana Qoro, chairman Isoa Kaloumaira and deputy chairman Lieutenant Colonel Mohammed Aziz were sent on leave to allow "corporate governance" investigations. Mr Naiveli said this was the request of the FHL board, adding it was business as usual for the group's companies. Mariana Saumadu is acting CEO. Efforts to contact Lt Col Aziz or Mrs Qoro yesterday were futile. FHL is in the midst of settling its acquisition of BP Southwest Pacific Limited at a cost of $190million. A deposit of $20m was paid out last year. Two months ago, the company sold its interests in the Fosters Group for $40m. It is still searching for capital to complete the purchase of the oil company's operations in Fiji