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.”

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).

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.

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.

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.

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.

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.

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."

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.

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.

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.”

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.

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.

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.

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.

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.

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

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.

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.

December 16, 2007

Rotuma Eco Camp 2007

Island sways to new beat

ASHWINI PRABHA
Saturday, December 15, 2007 - www.fijitimes.com

Excitement, adventure and eagerness surrounded the first ever eco-camp on Rotuma this week.

Nearly 70 students, adults and youth volunteers gathered for the three-day camp at Oinafa Bay, overlooking the anchorage on Rotuma Island.

The bay was a hive of activity from Monday, with excited children arriving from the Motusa, Christ the King, Peptea and Malha'a primary schools. The only high school on the island, Rotuma High School, joined the camp as well.

The eco-camp offered hands-on, fun activities that helped the young campers learn about the natural world, other people and themselves.

Activities ranged from driftwood art workshop, visual arts, song and dance activities, field trips, beach profiling, bird watching, rubbish auditing (sorting and recycle) and financial literacy workshop.

"The eco-camp aimed to raise the profile of Rotuma's unique and fragile natural heritage so that the next generation may be more environmentally conscious in this age of climate change and loss of culture," said Alfred Ralifo, eco-camp coordinator, LjeRotuma Initiative (LRI).

The camp links into the ongoing environmental education awareness program that has been part of Rotuma schools curriculum since this year.

This creative camp concept was a LjeRotuma Initiative in partnership with the schools on the island and supported by the Council of Rotuma and the District Office.

The camp was funded by the Vodafone ATH (Fiji) Foundation, GEF Small Grants Programme and private donations from the wider Rotuman community.

LjeRotuma is the only environmental non-government organisation on Rotuma with the mission to strengthen and mobilise the island community to manage and conserve its natural resources through training, research, demonstration and cultural exchange opportunities.

"I'm amazed at what LRI has pulled together and see the benefits of such exposure at a young age," said Tarterani Rigamoto, chairman of the Rotuma Council.

"We need the upcoming generation of Rotumans to appreciate and protect what we have as we depend on the land and sea."

The objective of the camp was to showcase environmental lessons to the wider island community.

The five schools have environmental activities where students adopt different habitats.

"The camp links all the activities the schools carried out throughout the year.

"It shows the students how each habitat is dependent on another, for example, how a forest area is linked to coral reefs and that each habitat can not exist in isolation," said Mr Ralifo.

"All the activities combined make up the eco-system of Rotuma.

"The children brought and displayed all the work they have been doing such as posters, photos, essays on environmental activities."

Teachers and students at the camp had an equally rewarding experience.

The camp provided them an opportunity to meet and network with students from different parts of the island.

Mr Fanifau Rafael said: "This camp is very good exposure for these young minds and shows them how to re-use rubbish and the students who are not good with formal education are learning how to use the simple things lying on the beach to make something useful through the art and craft workshop."

"We take advantage of the natural environment on Rotuma and stop appreciating it in our everyday life.

"But the bush work, beach profiling activities and collecting of shells and things to make art work is making us see things in a different light now," he said.

The Driftwood Art Workshop held by local award winning artist Craig Marlow was an opportunity for students to fire up their imagination by interpreting the driftwood pieces they collected.

That involved the addition of shells, seeds, string, etc, to decorate their pieces to produce a work of art from flotsam and jetsam found along the shoreline.

Wilfer Rigamoto, a form six student of Rotuma High School said, "We only knew how to draw but now I can make a nice artwork out of the things lying around and even learnt to re-use rubbish."

Musically inclined eco-campers were given the opportunity to write and perform drama and dance pieces based on environmental themes by choreographer and dancer Pelu Fatiaki from USP Oceania Dance Theatre.

"I love the dance workshop. We can fly like birds and swim like fish when we dance, it's so much fun," said Chesta William, of Christ the King Primary School.