FIJI AT A GLANCE

SIZE : 332 islands (approx.one - third are inhabited)

TOTAL AREA : 18,333 sq.km. (Viti Levu - 10,429sq.km Vanua Levu - 5,556sq.km)

LAND : 82.9% Native Land, 8.41% State Land 8.06% Freehold Land, 0.24% Rotuman Community Owned

CLIMATE : Southsea Maritime Climate

SEASONS : May - October (cooler months) November - April (dry months)

CAPITAL : Suva

INTERNATIONAL AIRPORT : Nadi, Nausori

POPULATION : 772,655 (Census August 25, 1996) This included 394,999 Fijians(51.1%), 336,579 Indians (43.6%) and 41,077 (5.3%) others.

LABOUR FORCE : 301,500 ( as at December 1996)

LANGUAGES : English, Fijian, Hindi and Rotuman

CURRENCY : Fiji Dollar

TIME : 12 hours ahead of Greenwich Mean Time. FIJI TODAY 2004 / 2005

Ministry of Information, Communications and Media Relations CONTENTS

1 GEOGRAPHY 22 Diplomatic Mission Population 2 Climate 23 ECONOMY Flora/fauna 23 Overview 2004 3 Land Administration 24 Natural Resource Sector Native Land Trust Land Sugar Industry Mineral Resources 5 HISTORY/PEOPLE 25 Manufacturing Culture Transport, Storage & Communication 6 Great Council of Chiefs Tourism Europeans 26 Investment 7 20th Century Labour Market Citizenship 27 Inflation 8 Immigration Monetary Policy Religion Trade Race Relations Balance of Payments Language 28 Foreign Reserves Women Government’s 2004 Budget 9 Youths 29 Government’s Medium Term Strategies Investment Packages 11 GOVERNMENT, EXTERNAL Taxation RELATIONS AND CONSTITUTION 30 Indigenous Fijian Affirmative Action 12 Constitution 13 Parliament 31 TRADE AND INVESTMENT Cabinet 32 Increased Investments 14 Government Ministries 33 Strategic Development Plan Judiciary 34 Co-operatives 15 Local Government 35 Direction of Trade Fijian Administration 36 Fiji Islands Trade 16 Police & Investment Bureau 17 Army Diversification 18 Foreign Policy Investment Incentives 19 Trade Policy 37 Minerals 20 Fiji and the South Pacific 38 Garment 21 Fiji and the World Building & Construction International Peacekeeping Industrial Relations

FIJI TODAY 2004 / 2005 CONTENTS

39 The Tripartite Forum 61 EDUCATION 40 Labour Relations 64 Fijian Education National Productivity Charter The University of the South Pacific 65 Fiji School of Medicine 41 AGRICULTURE 66 Fiji College Of Agriculture Sugar Vocational & Technical Education 42 Copra & Coconut Oil Cocoa 67 MEDIA 43 Ginger Media Review Yagona & Dalo 68 Print & Radio 44 Rice Information & Media Relations Fruits & Vegetables Electronic Media 45 Dairy 70 Audio Video Industry Sheep 71 Broadcast Service Fisheries 72 Journalism Training 47 Forestry 73 RECREATION & SPORTS 49 TOURISM 74 Fiji Sports Council Fiji Visitors Bureau 75 Festivals 50 Ecotourism 76 Recreation

51 HEALTH, SOCIAL WELFARE 77 TRANSPORT, & LIVING STANDARDS COMMUNICATION & ENERGY 53 Primary Health Care Services Roads Curative Health Services 78 Road Maintenance Sector Project Private Sector Participation Shipping 54 Social Welfare 79 Air Services Rehabilitation Services 80 Land Transport Authority Poverty Telecommunications 56 Housing 81 Information Communication Tech. 57 Home for the Poor 82 Energy 58 Food & Labour Force Fiji Electricity Authority 59 Water 83 Rural Electrification 60 Environment 84 FEA’S Friendly Policy

FIJI TODAY 2004 / 2005 GEOGRAPHY

Fiji lies in the heart of the Pacific Ocean and 41,077 others (5.3%). Compared with midway between the Equator and the South the 1986 Census there was a net increase Pole, and between longitudes 175 and 178 of 57,280 persons during the 1996 census. west and latitudes 15 and 22 south. Fiji’s Fijian numbers had increased by 65,694 Exclusive Economic Zone contains approxim- persons. Indian numbers registered a decre- ately 330 islands of which about one - third ase of 0.3 per cent as a result of high inte- are inhabited. It covers about 1.3 million rnational emigration, and lower rate of square kilometers of the South Pacific natural increase. The annual average growth Ocean. Fiji’s total land area is 18,333 square rate between the Censuses was 0.8%. kilometers. There are two major islands - Fiji has a relatively young population Viti Levu which is 10,429 square kilometers with about 53% or 413,100 persons below and Vanua Levu 5.556 square kilometers. the age of 25 years. This percentage has Other main islands are Taveuni (470 sq km), declined from the 1986 figure of 58.7%. Kadavu (411 sq km), Gau (140 sq km) and The economically active population in 1986 Koro (104 sq km). Eighty three percent of was 62% of the total population or 441,852 the land is owned by indigenous Fijians persons and in 1996 it was estimated at while nine per cent is state land and eight 67% or 523,428 persons. The number of per cent is freehold land. Only 16 per cent people aged 60 years and over was of Fiji’s land mass is suitable for agriculture estimated at 47,027 persons or 6% of the and are found mainly along the coastal total projected population in 1996. This plains, river deltas, and valleys. The capital figure has risen from 4.9% or 35,395 in 1986. is Suva and it is one of the two cities in The dependency ratio in 1986 was 71 but Fiji. The other city is Lautoka and both declined to 70 in 1990 and 68 in 1996. This are located on the island of Viti Levu. means that the percentage of people dependent on those who are working is Population decreasing. The population of Fiji on August 25, 1996 Fiji is becoming increasingly urbanised stood at 772,655. There were 358,131 as internal migration to towns and cities persons in the urban areas and 414,524 in continue. Extension of urban boundaries the rural areas. Of the total 394,999 were has also contributed to this trend. By 1996, Fijians (51.1%), 336.579 were Indians (43.6%) some 46 per cent of the population were

FIJI TODAY 2004 / 2005 2 GEOGRAPHY living in urban areas, up from 39 per cent predominant winds over Fiji are the Trade in 1986. Around 41 per cent of Fijians and Winds from the east to south - east. On the Rotumans now live in urban areas. The western and eastern sides of Viti Levu and urban population has grown at 2.6 per cent Vanua Levu however, day time breezes per year between 1986 and 1996 and the blow in across the coast. In general, the rural population has been shrinking by 0.5 winds over Fiji are light or moderate, the per year. Apart from the indigenous Fijians, most persistent being in the period July - Fiji has accepted many other nationalities December. Temperature averages 22 Cel- to its shores - Indians, Europeans, Chinese sius (72 F) for the cooler months (May to and many Pacific islanders. October) while (November to April) temp- eratures are higher with heavy downpours. Climate Although rainfall is highly variable, the Fiji enjoys a tropical South Sea maritime average rainfall increases steadily inland climate without great extremes of heat or from coastal areas. It usually increases cold. The islands lie in area which is between December - April, especially over occasionally traversed by tropical cyclones, the larger islands, but in May - October it and mostly confined between the months is often deficient, particularly in the dry of November to April every year. On the zone on the western and northern sides of average some ten to twelve cyclones the main islands. per decade affect some parts of Fiji, and two to three cyclones can be Flora/Fauna very severe. At all seasons the Fiji’s flora and fauna are relatively few in number but are of exceptional scien- tific interest because of the higher proportion of endemic forms - i.e. those found no where else in the world. Ten per cent of the 476 indigenous Fijian plant species identified are endemic. Fiji also has a few rare reptiles and birds. Notable of this, is the Crested Iguana, found only in some parts of Fiji namely Yadua Taba in Bua and the Yasawas. Other rare species include the Fiji burrowing snake, Fiji petrel, the pink billed parrot finch, the red throat lorik- eet and the long leg- ged warbler. Two

FIJI TODAY 2004 / 2005 GEOGRAPHY 3

researches in conjunction with the Fiji Muse- •reviewing the role of the Native Land um found bones of crocodiles, giant tortoi- Trust board (NLTB), which has fresh mana- ses and giant Fiji pigeons during one of the- gement and a new vision of efficiency and ir projects. The crocodiles were around two service. and a half metres long and the giant iguanas •transferring ALTA leases as they expire a metre and a half long. The amended bones and the issue of new 50 year leases under of these long extinct animals were found an Native Lands Trust Act(NLTA), in the Volivoli and Qarinivokai caves which •providing options of a residential lease is situated to the West of Sigatoka dunes. or relocation to a new farm to outgoing farmers and Land Administration • writing off of $34 million of government Land is an important factor in the develop- loans to the Fiji Sugar Corporation (FSC). ment of the economy. The Department of In line with the implementation of this re- Lands and Surveys and the Native Land form programme, Government is to est- Trust Board are two authorities which ablish a Land Claims Tribunal to provide a undertake management and administration user - friendly mechanism appropriate for of most land in Fiji. The Department of the settlement of land claims by indigenous Lands and Surveys manages all State lands Fijians of which a sum of $100,000 has which includes leases from state land of been allocated and an allocation of $2.5 both schedules – leases from owned freehold million for infrastructure and development and fore shore leases of land lying between and a further $4.0 million for land resettl- high and low spring tide limits. The Depar- ement for incoming and outgoing tenants. tment has established a Land Informa- tion System. Native Lands Trust Board Government is committed to reforming In 1940, the Fijian Chiefs and people entrus- land administration where the issue of ted the management of their land to the native land in particular is concerned. This Native Land Trust Board NLTB). Since then, is due to the rigidity and arbitrary nature the NLTB has become one of the most of the existing legislation such as the important institutions in Fiji. Agricultural Landlord and Tenants Act It is the only institution of its kind in the (ALTA). The reform programme focuses on: world and is the largest land management

FIJI TODAY 2004 / 2005 4 GEOGRAPHY organisation in the South West Pacific. The aside for the use, maintenance or support primary role of the Board is to administer of the indigenous landowner. Native land native land for the benefit of the indigenous outside reserve many be dealt with by way landowners. The board comprises the Presi- of lease or licence. However, the Board dent of Fiji as president, the Prime Minister must first satisfy itself that the land that and Minister for Fijian Affairs as chairman is to be the subject of the lease will not and a 10 - member Board of Trustees. The be required by the indigenous landowner Board may delegate some of its powers to during the currency of the lease. Native the General Manager who with other officers land comprises 1,487,581 million hectares carry out the Board’s plans and instructions. of the landmass in Fiji. The Board currently The Board administers some 83 per cent of administers 28,700 leases covering 387, 075 Fiji’s land owned by the indigenous Fijian hectares with a potential annual income people and at the same time, promotes the of $20 million. The current lease terms vary development of the nation. As custodian from 2 years to 99 years. Native land is of Fijian owned land, the NLTB is responsible leased out to tenants for agriculture, com- to the indigenous landowners and the nation merce and industry. The landowner receives to ensure that land or natural resources rentals and other benefits such as jobs, are used and managed in a wise and dividends, royalties and commercial oppo- sustainable manner. The Board must also rtunities associated with land develop- ensure that the unique and important ment. The successful development of native features of the indigenous Fijians natural land also provides significant benefits to and cultural heritage are set aside and the communities in Fiji. Many of the nation’s protected for the benefit of the current cane farms are built on a solid foundation and future generations. Native land compri- of leased native land. Native land has also ses either native reserve or non-reserve been made available for major hotels and land. Reserve land has been specifically set businesses who create source of employment for thousands of people. In 2002, the Soqosoqo Duavata ni Lewenivanua (SDL) Government fulfilled an election pledge by allowing Crown Land (schedule A & B) to become the responsi- bility and control of the NLTB. The NLTB is to also launch the Vanua Develop- ment Corporation Ltd, a business apm which will consider business proje- cts and safe and profitable investments.

FIJI TODAY 2004 / 2005 HISTORY/PEOPLE

According to Fijian legend, the great chief the sugar plantations. After the indentured Lutunasobasoba led his people across the system was abolished, many stayed on as seas to the new land of Fiji. Most authorities independent farmers and businessmen. agree that people came into the Pacific Today they comprise 43.6 per cent of the from Southeast Asia via Indonesia. Here the population. Melanesians and the Polynesians mixed to create a highly-developed society long Culture before the arrival of the Europeans. Fiji was first settled about three and a half The European discoveries of the Fiji group thousand years ago. The original inhabitants were accidental. The first of these disco- are now called “Lapita people” after a dist- veries was made in 1643 by the Dutch explo- inctive type of fine pottery they produced, rer, Abel Tasman and English navigators, remnants of which have been found in including Captain James Cook who sailed practically all the islands of the Pacific, through in 1774, and made further explora- east of New Guinea, though not in eastern tions in the 18th century. Major credit for Polynesia. The Lapita people are said to the discovery and recording of the islands have originated from Southeast Asia and went to Captain William Bligh who sailed are also ancestors of the Polynesians. Vast through Fiji after the mutiny on the Bounty distances were crossed to complete the in 1789. settlement of the Pacific to Hawaii in the The first Europeans to land and live north, Rapanui (Easter Island) in the east among the Fijians were shipwrecked sailors and Aotearoa (New Zealand) in the south. and runaway convicts from the Australian Unlike the islands of Polynesia which showed penal settlements. Sandalwood traders and a continuous steadily evolving culture from missionaries came by the mid 19th century. initial occupation, Fiji appears to have Cannibalism was practiced in Fiji at that undergone at least two periods of rapid time, but quickly disappeared as missionaries culture change in prehistorical times. This gained influence. When Ratu Seru Cakobau may have been due to the arrival of fresh accepted Christianity in 1854, the rest of waves of immigrants, presumably from the country soon followed and tribal warfare the west. Prehistorians have noted that a came to an end. From 1879 to 1916 Indians massive 12th century volcanic eruption came as indentured labourers to work on in southern Vanuatu coincides with the

FIJI TODAY 2004 / 2005 6 HISTORY/PEOPLE

continues to be held in high esteem by all communities in Fiji. The BLV appoints the President of the Republic of Fiji Islands. Currently, the BLV consists of 55 members. Three each are nominated from the 14 provinces, 3 from the island of Rotuma and six nominated by the Minister for Fijian Affairs in consultation with the Presid- ent of Fiji. The current Prime Minister, President and Vice -President are also automatic members while former Prime Minister, Sitiveni Rabuka is a life - member of the Council.

Europeans Fijians first impressed themselves on Euro- disappearance of a certain pottery style, pean consciousness through the writings of and its sudden emergence in Fiji. Fijians the members of the expeditions of Cook are usually called “Melanesians”. However, who met them in Tonga. They were desc- from a cultural stand - point, they are seen ribed as formidable warriors and feroc- to be very similar to the Polynesians as over ious cannibals, builders of the finest vessels the centuries, their contact with the in the Pacific, but not great sailors. They neighbouring Polynesian islands of Samoa, inspired awe among the Tongans, and all Tonga and Rotuma have seen the Fijians their manufactures, especially bark-cloth come to share much of the Polynesian and clubs, were highly esteemed and much language and culture. in demand. They called their home Viti, but the Tongans called it Fisi, and it is by Bose Levu Vakaturaga this foreign pronunciation, Fiji, first prom- or Great Council of Chiefs ulgated by Cook, that these islands are now The Bose Levu Vakaturaga (BLV) or Great known. After the explorers, other Europeans Council of Chiefs is the highest assembly followed. For over half a century, Fijian of the traditional chiefs of Fiji, with a small culture enjoyed what has been called its number of specially qualified commoners, ‘golden age’, as tools and weapons brought who meet at least once a year to discuss by traders were turned by resourceful chiefs matters of concern to the Fijian people. In to their own advantage. Canoes and houses earlier days this Council had the power to were built, confederations formed and wars pass laws and regulations binding Fijians fought on a grand scale without precedent. but this was removed towards the end of Gradually and inevitably, however, the the colonial era when separate Fijian Fijian way of life was changing. As Christ- regulations were abolished. Despite this, ianity spread in the islands, wars ceased the Council's advice is always sought on abruptly and western clothing was adopted. matters affecting the Fijian people, and it After Fiji was ceded to Great Britain in

FIJI TODAY 2004 / 2005 HISTORY/PEOPLE 7

1874, epidemics nearly wiped out the back to India, many stayed. Despite previous population and it seemed as if the natives fractions between Indigenous Fijians and were doomed. But the colonial government Indo-Fijians Fiji is now enjoying an increase took the Fijians’ side. Land sales were in national unity with reconciliation being forbidden, health campaigns implemented a top priority within Fiji’s governance. As and the population picked up again. Theirs a country, Fiji’s population is based rurally. was not, of course, the culture of the 60 per cent of the nation’s population lives heathen ‘golden age’, but one modified by in the rural areas. The Fiji Day (indepen- the new religion and increasingly the new dence) celebration has become a part of economic order. the yearly calendar of events. It is observed during second week of October. The objec- 20th Century tive of Fiji Day is to celebrate our achieve- The 20th century brought about important ments, showcase the richness and diversity economic changes in Fiji as well as the of our land and people, encourage patriotism maturation of its political system. Fiji deve- and nation building and promote our hope loped a major sugar industry and established for the future. productive copra milling, tourism and secondary industries. As the country now Citizenship diversifies into small scale industries, the Fiji does not recognize dual citizenship. economy is strengthened and revenues person may acquire citizenship of Fiji by provide for expanded public works, infra- birth, naturalization or registration. One structure, health, medical services and of the main provisions under the new citizen- education. The country’s central position ship laws is the equal opportunities and in the region has been strengthened by privileges given to foreigners who are recent developments in sea and air com- married to either male or fem- munications and transport. Today, Fiji plays ale Fiji citizens in acquiring a major role in regional affairs and is citizenship of Fiji. Applic- recognised as the focal point of the South ations can be lodged at Pacific. More than 50 per cent of the any Immigration Office. entire population are Indigenous Fijians, who are the ethnic majority here in Fiji. Fiji is now home to many other races - Indians, Part Europeans, Chinese and other Pacific islanders living in harmony, and keeping their own cultures and identity. Indians make up over 40 per cent of the total population here in Fiji. Indians were brought to Fiji as indentured labou- rers to work in Sugar plantations over 100 years ago. Although they were offered passages

FIJI TODAY 2004 / 2005 8 HISTORY/PEOPLE

Immigration Language Most countries do not require pre-entry English is the official language. However, visas to Fiji. An Application for visa can be Fijian and Hindi are also taught in schools lodged at any of the Fiji missions overseas as part of the school curriculum. Indigenous or directly with the department. Visitors Fijians have their own dialects and you are normally given 4 months stay initially can tell where one comes from, from their on arrival which can be further extended dialect. Indians, too have their own, and by two months provided they arrive with generally speak a distinctive Fiji-Hindi passports valid for not less than six months dialect. This is not the same as the one and properly visaed for other countries spoken in India. where necessary, return or onwards tickets and sufficient funds for their stay in the Women country. Women in Fiji, about 49 per cent of the population, have a literacy rate of 89 per Religion cent. As stated in the "Development Strategy A multiracial, multi-cultural nation, Fiji is for Fiji", Government is committed to invol- represented by all the major religions ving women as equal partners in the of the world. This is quickly obvious to the national, political, economic and social visitor who will see Christian churches, development of the country. In recognition Mosques, Sikh and Hindu temples in towns of women's contribution, Government has and the countryside. More than half of created the Ministry for Women, Social Fiji’s population are Christians (52.9%), Welfare and Poverty Alleviation. The Min- Hindus (38.1%), Muslim (7.8%), Sikhs (0.7%), istry is committed to seeing the empow- Others (0.5%). erment, liberation and the equal footing of women. Other areas of interest are a Race Relations priority focus in the area of micro-enter- Race relations in Fiji are prises and working closely with the Micro- generally harmonious. Enterprises Unit of the Ministry of Trade The Compact provi- and Commerce and with the Start-your- sion in the Constit- Own Business Programme to start of new ution requires initiatives. Government aims to promote that the inte equity for women in their economic and rests of all social development and to eliminate all communities forms of discrimination. The National Plan are accounted of Action for Women will provide the main for. It is unlaw- platform in its efforts. It supports the mains- ful to discrimin- treaming of gender concerns to attain parity ate on the grounds at decision making levels, training, prom- of colour, race or otion and appointments, promotion of ethnicity and it is women in business, protection from dome- an offence to incite stic violence and sexual abuse, and review racial disharmony. of laws which disadvantage women. The

FIJI TODAY 2004 / 2005 HISTORY/PEOPLE 9

Plan of Action recognises the necessity of Youth, Employment Opportunities and Sports the full and active participation of women, will continue to focus on developing the and therefore seeks to strengthen the full potential of Fiji’s youth so they can institutional capacity of the Ministry of positively contribute to the economic and Women, Culture and Social Welfare as well social development of the country. Govern- as its inter linkages with NGO's. The Ministry ment’s plans include improving the work has established a National Women's Advisory of the Youth Employment Options Centre Council to advice the Minister for Women to help school leavers and the jobless to on women and gender issues. A positive make informed choices about their careers. development which has taken place recently The Annual Careers Expo, the Small Business is the passing of the Family Law Bill in the Development Programme, and the Fiji Parliament. The Bill now allows for the National Youth Band will be developed nullification of marriage within 12 months further. The National Youth Service progra- period instead of 3 years. In case of children mme is being continued following its born of defacto relationship, they will given success. The programme aims to provide full recognition. The new Bill will also see disadvantaged young people with opport- the establishment of Counseling centres unities to develop work skills and gain and the establishment of the Family Law experience through vocational training and Court. individual and community based social and economic projects. The government has Youths allocated $350,000 for the National Youth Using the generally accepted definition of Service Scheme, $80,000 for the establis- youth as persons aged between 15 -24 years, hment of Youth Business Incubators, $61,000 the 1996 estimates show that this category allocated to implement Positive Mental make up 20 per cent of the total population. Attitude training programmes in various This is a reduction of 4 per cent from the areas and $138,000 grant to the Tutu Train- 1991 estimate. Approximately 60 per cent ing Centre in Taveuni. The establishment of the youth population reside in rural areas. of a permanent youth advisory panel is also Various training programmes have been being looked at to complement the succe- instituted to equip them to establish self ssful youth parliament of last year. The employment activities. The Ministry of youth advisory panel is to consult with and

FIJI TODAY 2004 / 2005 10 HISTORY/PEOPLE advice ministers regularly on questions elated policy initiatives aimed at ensuring associated with young people, especially that young women and men have the the effectiveness of government services. attitudes, skill and competencies needed In many countries, including Fiji, young for the world of work and enhancing and people usually bear the burden of unempl- expanding employment opportunities for oyment because they lack the skills and them. Throughout 2001, a total of 1,582 experience required in places of work. To youths were served by the Ministry in terms tackle this problem the Ministry of Youth of counseling, work attachments, employ- with the assistance from the International ment, income generating projects and youth Labour Organisation and in consultation club registration. Over this period, employ- with the important stakeholders from the ment was found for 203 young people, work private sector, trade unions and officials attachment for 309 and 173 income genera- from different Government departments ting projects were established and 1,297 and ministries and other groups in civil people were counseled. The Ministry’s societies including the National Youth contribution to Affirmative Action Program- Congress have developed a Youth Employ- mes for youth under the Social Justice Act, ment Policy Framework. The policy would will involve three major components. This be a part of the Integrated Human Resource will include the establishment of trade programme for employment promotion training schools by the Republic of Fiji Milit- within the Labour Administration and ary Forces as a means of improving trade- Productivity Sub programme. A Youth Emp- craft skills in rural areas as well as promoting loyment Policy Framework is a set of interr- discipline and increasing employment. Suitable locations for national youth service scheme is to be activated where centres are to be identified throughout the four divisions. The scheme will provide an alternative access to further training in employable skills.

FIJI TODAY 2004 / 2005 GOVT, EXTERNAL RELATIONS & CONSTITUTION

Fiji is a sovereign democratic state. A former 3 and United General Party (UGP) 2. The leader British colony, it became a republic in 1987 of the FLP, Mr Mahendra Pal Chaudhry was following two coup d’etats. After the coups, appointed as the fourth Prime Minister of Fiji was run by an Interim Government headed Fiji. The National Federation Party (NFP) which by Fiji’s first Prime Minister, Ratu Sir Kamisese had been in the political scene of Fiji since Mara. The Interim Government ran the country 1966, failed to win any seat. The government for three years until the first general election team included FLP, FAP, PANU, VLV and 2 ind- held in May 1992. This election saw the victory ependents. This election also saw 8 women of the Great Council of Chiefs sponsored party, candidates elected into the House of Represen- the Soqosoqo-ni-Vakavulewa-ni Taukei (SVT). tatives out of which 5 were appointed as Cabi- Twenty months later in 1994, another general net Ministers. This government ruled the election was held following the defeat in Parlia- country for one year. On May 19, 2000, a civilian ment of the budget bill. The SVT party again coup took place with the backing of few dominated this election winning 31 seats. The soldiers from the Counter Revolutionary War- remaining 39 seats were shared between Natio- fare Unit (CRWU) of the Republic of Fiji Military nal Federation Party 21, Fiji Labour Party 7, Forces (RFMF) who stormed the Parliament Fijian Association Party 5 , General Voters 3, and took Prime Minister, Mahendra Chaudhry All National Congress 1 and two Independents. and his cabinet as hostages. The lawful Presi- In 1999, another general election was held the dent declared a State of Emergency. The Presi- first under the 1997 Constitution. This election dent purported to prorogue Parliament for six brought a lot of surprises. Altogether 16 political months pursuant to section 59 (2) of the Consti- parties and 304 candidates (Communal seats - tution. On May 29, 2000, the Commander of 163, open seats - 141) contested this election. the Republic of the Fiji Military Forces (RFMF), The number of registered voters were 441,265. Commodore Voreqa Bainimarama purported to This election brought an outright majority for abrogate the 1997 Constitution and assumed the Fiji Labour Party (FLP) which won 37 seats, Executive Authority. The President, Ratu Sir Fijian Association Party (FAP) 11 seats, Party Kamisese Mara stepped aside. A Military Gove- of National Unity (PANU) 4 seats, Soqosoqo Ni rnment was later formed. The Military Govern- Vakavulewa Ni Taukei (SVT) 8 seats, Independ- ment then handed over powers to a Civilian ents 5, Nationalist Vanua Takolavo Party (NVT- Administration with the Interim President, LP)1, Veitokani Ni Lewenivanua Vakarisiti (VLV) being the then Vice President, Ratu Josefa

FIJI TODAY 2004 / 2005 12 GOVT, EXTERNAL RELATIONS & CONSTITUTION

Iloilo. The new Interim President appointed his (FLP) 27, Conservative Alliance/Matanitu Vanua Interim Government on July 28, 2000. The (CAMV) 6 seats, New Labour Unity Party (NLUP) Interim Government comprised of 20 Ministers 2, United General Party (UGP) 1, National and 8 Assistant Ministers. Renown banker Federation Party (NFP) 1 and Independents 2. Laisenia Qarase was appointed as the Interim Three major political parties: Soqosoqo Ni Prime Minister. Vakavulewa Ni Taukei Party (SVT), Fijian The mandate of the Interim Government Association Party (FAP) and the Party of National was to ensure the general safety of citizens Unity (PANU) failed to win any seat. With the and security of their property, stabilize govern- help of the Conservative Alliance, Independents ment’s finances and rehabilitate the economy, and one New Labour Unity Party member, the initiate a Constitution review and implement SDL was able to form Government. SDL leader a Blueprint for Fijian and Rotuman Develop- and Interim PM Laisenia Qarase was appointed ment. In March 2001, a three day chiefly meet- Prime Minister on September 10,2001. A 21 ing of the Bose Levu Vakaturaga (BLV) was member Cabinet and seven Assistant Ministers held. The BLV appointed during that 3 - day were appointed. meet (March 8,9 and 13), Interim President, Ratu Josefa Iloilo as the President and Bau Constitution chief Ratu Jope Seniloli as the Vice-President. The Constitution is the supreme law of Fiji.The Ratu Josefa Iloilo was sworn in as Fiji’s forth Constitution Amendment Act 1997, to amend President and Commander -in- Chief of the the 1990 Constitution came into operation on armed forces on March 15. During his address July 25, 1998. In principle, the new Constitution to the nation following his swearing - in - cerem- gave regard to recognising, respecting and ony, Ratu Josefa announced an early general upholding the rights and interests of all ethnic election to be held under the 1997 Constitution groups in the country. The passing of the new to allow those who aspire to be in Parliament Constitution led to Fiji's readmission as a mem- to go to the people to seek their mandate. The ber of the Commonwealth in October, 1997, date for the polls was set for August 25 to restoring some of the links with the Crown. September 1, 2001. Like the 1999 General The 1997 Constitution also conformed to all of election - the first held under the 1997 Constitu- the major United Nations instruments relating tion, registration of voters and voting was com- to land rights, customs, traditions and cultural pulsory. Around 468,630 voters were registered inheritage. With the 1997 Constitution, Execu- to vote and when the voting ended some tive Authority is vested in the President who 370,000 voters cast their votes. In this election, is appointed by the Bose Levu Vakaturaga (Great altogether 16 political parties and 351 candida- Council of Chiefs). The President serves for a tes (communal seats 201, open seats 150) conte- five-year period. The President appoints the sted the election. The election also witnessed 32 senators. Fourteen (14) are indigenous Fijians the entry of 20 independent candidates and 31 appointed on the advice of the BLV, nine (9) women candidates. After the results were offic- on the advice of the Prime Minister, eight (8) ially declared, no political party won an outright on the advice of the Leader of the Opposition majority to form Government. Out of the 70 and one (1) from Rotuma appointed on the seats contested, the Soqosoqo Duavata ni Lewe- advice the Rotuma Island council. Following nivanua (SDL) won 32 seats, Fiji Labour Party the political crises of 2000, the Chiefs through

FIJI TODAY 2004 / 2005 GOVT, EXTERNAL RELATIONS & CONSTITUTION 13 the BLV endorsed a Terms of Reference for a the Senate will consist of 32 members of whom: Constitution Commission to review the 1997 14 are appointed by the President on the advice Constitution. This was in recognition of the of the Bose Levu Vakaturaga, 9 are appointed need to establish a new Constitution for the by the President on the advice of the Prime good governance and welfare of the people Minister, 8 are appointed by the President on of Fiji. A 12 member Constitution Commission the advice of the Leader of the Opposition and was appointed by the President on October 1 is appointed by the President on the advice 5,2000. The Commission commenced its work of the Council of Rotuma. The Senate complem- on October 6,2000 and conducted a comprehen- ents the work of the House of Representatives sive information gathering exercise by traveling through the scrutiny and revision of Bills coming widely and hearing many submissions throughout to it. Whilst the Senate has limited powers in the country. The Commission headed by acade- respect to Money Bills, it can guide opinion and mic Professor Asesela Ravuvu visited about 65 clarify issues in general debate and by motions, per cent of Fiji and received oral submissions petitions and adjournment speeches. The Cons- greater than the Reeves Commission, which titution makes it compulsory that all citizens, reviewed the 1990 Constitution. A total of 579 21 and over and who have been a resident in oral submissions were received in comparison Fiji for the two years immediately before appl- to the 350 submissions of the Reeves Commis- ying for registration to be registered. Any qual- sion. The Ravuvu Commission’s was stopped on ified person who fails to apply for registration January 17, 2001 after the Fiji Labour Party commits an offence and is liable on conviction successfully obtained an order from the Lautoka to a fine of $50. A registered voter who fails High Court. to vote and who does not have a valid and suf- In January 2004, Cabinet agreed to the ficient reason for failing to do so must pay a tabling of the Constitution (Amendment) Bill $20 fine. The previous Constitution(1990) ado- in the February sitting of the House of Repre- pted the first past the post system under which sentatives. The Bill contains non-controversial the winning candidate is the person who secures amendments. Based on the success of this Bill, the greatest number of votes. The 1997 Cons- Government will then consider amendments to titution however introduced a preferential more substantive parts of the Constitution. voting system known as the Alternative Vote where the winning candidate is the person who Parliament obtains more than half the number of votes or Fiji’s Parliament largely follows the procedures the ‘absolute majority’. and customs of the British where there is an elected House of Representatives and a nomina- Cabinet ted Senate. The House of Representatives will The Cabinet is made up of the Prime Minister comprise 71 members - 25 MP’s elected on and other Ministers. Ministers are chosen from open rolls, and 46 MP’s elected on communal elected members of Parliament who form the (ethnic) rolls. The candidates for the 25 open Cabinet. Government policies are made by the seats can come from any ethnic group.The can- Cabinet and special sub-committees co-ordinate didates for the 46 Communal seats will be and plan details of government activities. In distributed as follows: Fijians 23, Indians 19, addition, Cabinet also advises the President on Rotumans 1 and Others 3. The Upper House or matters of the government and is responsible

FIJI TODAY 2004 / 2005 14 GOVT, EXTERNAL RELATIONS & CONSTITUTION to Parliament for any advice given to the Presi- The Public Service is independent of the political dent. Cabinet decisions are carried into effect government and its functions and roles are by individual ministers and each Minister is all- established by the Public Service Commission. owed considerable discretionary powers in the The Public Service Commission (PSC) is at the ordinary affairs of a department. Under the moment implementing a number of significant 1997 Constitution, the Prime Minister is required measures aimed at reforming the service. In to establish a multi - party cabinet. The compos- May last year, it approved a new theme for the ition of the Cabinet should, as far as possible, Civil Service Reform Programme called Service fairly represent the parties represented in the Excellence. The five key objectives of the prog- House of Representatives. In establishing the ramme are to provide strong leadership, a pro- Cabinet, the Prime Minister must invite all part- ductive and professional workforce, accountable ies whose membership in the House of Represen- and efficient organisations, quality customer tatives comprises at least 10% of the total mem- services and an integrated approach to service bership of the House to be represented in the delivery. The Civil Service Reform includes: Cabinet in proportion to their numbers in the • The formulation of A Senior Executive Service House. This is to ensure power sharing between Policy Framework. the main political parties. After the 2001 Gene- • Permanent Secretaries on employment ral Election, the new Prime Minister Laisenia contracts from January 1,2004; Qarase invited Fiji Labour Party leader, Mahen- • The delegation of powers of appointment and dra Pal Chaudhry to join Cabinet as required promotion over remaining occupational so under the multi - party provision of the Cons- groups; and Skills upgrading for executive titution. However, this did not eventuate. The management. Fiji Labour Party took the multi - party case to Government will begin the implementation the Fiji Court of Appeal and later to the Supreme of a new Financial Management Information Court. The Supreme Court in its judgment on System in 2004. The reform will allow to better July 18, 2003 ruled in favour of the FLP concer- manage, monitor and control government’s fin- ning Section 99 of the Constitution that it is ances. On a broader financial management ref- entitled to be part of the multi - party Cabinet orm program, progress is being made with the having more than 10 per cent of the seats in revamping of the Corporate planning process. the House of Representatives. The Multi-Party The Annual Corporate Plan process provides a case will again be referred to the Supreme crucial link between the Strategic Development Court regarding the number of Cabinet posts Plan and the Budget. the FLP is entitled to be given. Judiciary Government Ministries The Constitution guarantees the independence & Departments of the judiciary by placing the appointment of About 22 ministries conduct the affairs of the judges in the hands of the President after cons- government, and the Minister who heads a ultation with the independent Judicial and Leg- department is responsible to parliament for its al Services Commission. Members of the judici- activities. These ministries are staffed by a ary cannot be removed except under a complica- career public service, whose members do not ted system of checks and balances. The Consti- relinquish their jobs on a change of government. tution allows for three courts-the High Court,

FIJI TODAY 2004 / 2005 GOVT, EXTERNAL RELATIONS & CONSTITUTION 15

Fiji Court of Appeal and the Supreme Court - developed system of local government. City all independent of the executive or any other and town councils fall under the general super- authority and the subordinate courts. The Mag- vision of the Ministry of Housing, Urban Develop- istrates’Courts exercise both limited civil and ment and Environment. Suva and Lautoka have criminal jurisdiction within the limits of the city councils while Nadi, Ba, Tavua, Sigatoka, Division within which they are situated. Their Rakiraki, Labasa, Nausori, Levuka, Savusavu jurisdiction also extends to territorial waters and Lami have town councils. Municipal councils adjacent to the Division. The distribution of have the power to levy rates in order to fund business between Magistrates’ Courts within operating and capital developments. Govern- a Division is subject to the direction of the ment helps local bodies with technical services, Chief Justice. At the present time, there is a town planning, grants and loans. Each municipal Chief Magistrate and 14 resident magistrates council is headed by a Mayor and elected centred in the main towns. In 1991, the Small councilors. Claims Tribunal Decree was enacted by legisla- tion to transfer the resolution of small claims Fijian Administration from the Magistrates Courts to the newly created Fiji is divided into 14 provinces which are the- Small Claims Tribunal. Under the Decree, the mselves composed of still smaller administrative Tribunals are divisions of the Magistrates’ Courts. units, the basic one of which is the village(koro). The Tribunal has jurisdiction in respect of any At the head of a village is the turaga-ni-koro, claim which does not exceed $2000 in value elected or appointed by the villagers. Several and such other jurisdiction as conferred upon koro form a district ( tikina) an consists of num- it by any other law. The High Court has jurisdic- ber of tikina. Each province is governed by a tion to hear and determine any question relating council with an executive head (roko tui) whose to protection of fundamental rights and freedom appointment has to be approved by the Fijian of individual. It has unlimited original jurisdiction Affairs Board, which must also approve all rates to hear and determine any civil or criminal pro- and by-laws applied by the provincial council. ceedings. It also has unlimited powers to hear The Fijian Affairs Board is regarded the and determine appeals in both criminal and guardian of the Fijian administra- civil matters from courts subordinate to it. The tive system and many other aspects Fiji Court of Appeal, however, hears appeals of Fijian custom. This system of generally from any person convicted of any off- local government is exclusively ence from the High Court. The final appellate Fijian. This system of local govern- court is the Supreme Court and under the Const- ment is exclusively Fijian. In 2001, itution, it determines any appeal from a final Pricewaterhouse Coopers was decision or order of the Fiji Court of Appeal. commissioned to review the Fijian It also has powers to review, modify, reverse or affirm such decisions or orders and make such other orders, it sees necessary in the interest of justice.

Local Government The country has a well

FIJI TODAY 2004 / 2005 16 GOVT, EXTERNAL RELATIONS & CONSTITUTION

Administration following the receipt of the and the Ministry of Education; Pricewaterhouse Coopers Report, Cabinet • Establishment of more uniformed police in appointed a Joint Committee of Cabinet and crime prone areas; the Fijian Affairs Board to study the report • Setting up of Neighbourhood Watch Sche- and recommend the way forward. In January mes and Crime Prevention Committees; • 2003, Government appointed a Project Unit Bus Beat System aimed at preventing incid- to study the report of the reviews comments ents of offences on both the passengers and of the Joint Committee and undertake drivers; consultations. • A national campaign against drug abuse. On 31st July 2003, the Project Unit presented • Community Policing. its first report to the Prime Minister and then • Decentralizing the Police service by establish- made a final presentation to the Great Council ing police posts to provide quick response. of Chiefs meeting, at Viseisei,Vuda on November The Police Force also participates in peace 14th, 2003. The Report is currently being studied keeping operations with the United Nations in by Government. Sinai, Lebanon, Namibia, Cambodia and Iraq. Currently, a 15 member police contingent have Police joined in the regional peace monitoring force The Fiji Police Force is responsible for law enf- in the Solomon Islands. Government has also orcement and the prevention and detection of agreed to the formation of a single Police Ass- offences in the country. There are 1909 police ociation. At present there are three associations officers of all ranks supplemented by special in the Force. These are the Police (Gazetted constables and civilian staff. Women are also Officers) Association, Police (Inspectorate Offi- employed in the FPF. They total 164 which is cers) Association and the Police (Subordinate) the equivalent of 8.6 per cent of the total pers- Association. The Association will have its own onnel. Women officers are deployed in all sec- management team and support staff who will tors of the Police Force. Through the years, not be members of the Force.The new Associa- the police force has continued to pursue strate- tion is not to be registered as a Trade Union gies to combat the increase in crime in the or an industrial association within the meanings country. These include: of the Trade Union Act or the Industrial Associa- • Road Safety Awareness Programme in conju- tion Act. The Police Act will be amended to nction with the Land Transport Authority accommodate these changes.

FIJI TODAY 2004 / 2005 GOVT, EXTERNAL RELATIONS & CONSTITUTION 17

Army of internal security and defence. There are Fiji’s army came into existence during the pre 3796 soldiers in the Fiji Military Force. Over colonial days when the Cakobau Government the past 15 years, the Armed Forces have come created a force to exert its authority on the under increasing pressure to enlist service wom- people. The Force was mainly used to fight en. In 1988, women were recruited on a trial tribal warfares in the interior of Viti Levu and basis and 40 were enlisted with 7 successfully other parts of Fiji. However, the first form of undertaking officer training. It was not until disciplined and organised force was led by Brit- 1995 that service women were sent to peaceke- ish officers. The Constabulary was disbanded eping duties overseas. The first two female in 1894 and continued to perform police funct- commissioned officers were posted to the Sinai ions. At the outbreak of the First World War a for a 6 months tour of duty to be replaced by Fijian Battalion was formed which served in successive female officers. A female dental France and Italy. It also participated in the officer was also posted to that region. Second World War in the Solomons and later As a member of the international community in Malaya in the 1950’s to combat the communist of nations, Fiji’s success in creating an environ- insurgence into the Pacific. It was not until ment of peace, security and stability for its 1978 that Fiji’s Royal Fiji Military Forces was people also critically depends on how it manages again involved in active services abroad but its relations with the outside world. As a small only this time to do peacekeeping with the Uni- country, Fiji’s national security interests can ted Nations in the Middle East. Its success in best be served by a policy of active support this operation led to the call for further duties and the involvement wherever we can in the in a British Commonwealth sponsored peacekee- promotion of world peace and security, global ping unit for Zimbabwe-Rhodesia. Fiji was also development and co-operation, and internat- called to observe in Sinai following the Camp ional goodwill and support for the country. David Accord in 1981 and other missions in Afg- Twenty-four years after initially accepting a hanistan, Kuwait and Somalia. More than 1,000 UN offer to monitor a cease-fire between Palest- Fijian soldiers are involved in peacekeeping duties every year. And since 1978, 28 have died while on active service. In 1987 the name changed to Fiji Military Forces after ties with the Commonwealth were severed. And while the Force gained enormous prestige from services abroad, important strate- gic development also took place at the home front, establishment of an Air Wing, Naval Unit, Engineering Squadron and the Trade Training School were some of the major developments. Others include the setting up of a military hosp- ital, counter terrorist unit and legal services department. Recently, after reviewing its role, the Force has embarked to concentrate on its objective

FIJI TODAY 2004 / 2005 18 GOVT, EXTERNAL RELATIONS & CONSTITUTION inians and Israelis, Fiji soldiers serving in Leb- Commonwealth. Fiji’s foreign policy is also anon under the United Nations Interim Force based on political values, which Fiji Islanders in Lebanon (UNIFIL) finally returned home have long been proud to be associated with, for good in December, 2002. Cabinet in July, namely the respect for fairness and justice 2003 also approved in principle Fiji’s particip- in the conduct of trade and political affairs, ation in the Solomon Islands Law Enforcement sustainable development programmes that Mission (SILEM). Around 123 soldiers are promotes environment protection and the desire currently helping to maintain law and order in to live in a world without the threat and/ the country. From August, 106 Fiji soldiers or fear of war, hunger and environmental began to serve in East Timor as part of a Peace- degradation. keeping mission. The recedance of the Cold War rivalry, which dominated and characterised in the most part, Foreign Policy the conduct of political relations in the twen- Fiji’s international relations policy recognises tieth century has increased the awareness of the important role small developing island a myriad of other economic, environmental, states like Fiji plays in the international polit- human rights, religious and ethnic issues, that ical/economic arena and seeks to build upon now forms the core challenges facing the intern- the positive relationships which Fiji enjoys with ational community to which Fiji is an active a wide range of nations in the world. It also part. In short, the political objective is to achi- testifies to the political, cultural and econ- eve excellence in the development and expre- omic values Fiji attaches to the political, relat- ssion of Fiji’s foreign policy through pro-active ions it is now forging with Asia in its “Look participation in the international fora, respec- North” policy and the traditional relationship ting the provisions of intern- it has enjoyed with the Pacific Forum States, ational treaties to which North America, ACP/European Union and the it is party and fostering fruitful bilateral and multilateral diplomatic relations with frien- dly nations and international organisations.

FIJI TODAY 2004 / 2005 GOVT, EXTERNAL RELATIONS & CONSTITUTION 19

Political objectives in foreign policy are is no exception. External trading relations incr- • To maintain and where possible, strengthen, easingly determine the growth and development bilateral relations with friendly countries, of the country, and this influence only increases with increasing focus on new friends within with world wide moves to free trade and globa- the wider Pacific rim, particularly in South lisation. In line with most developing countries, East Asia. the last decade has seen Fiji adopt an export • To project a favourable image of Fiji overseas orientated, outward looking approach to trade through various means, including personal relations. Import restrictions have been largely contact and initiatives, and a range of media lifted in favour of export promotion, and as activities. such Fiji now has a more open economy with • To assist in contributing to international increased volumes of both exports and imports. peace and security, in particular through the Fiji is a signatory to a number of bilateral, United Nations; and regional and multilateral trading agreements. • To seek resolution of regional conflicts born The most significant is membership of the World out of ideology differences, economic rivalry Trade Organisation (WTO), which holds Fiji and/or cultural antagonism through diplomatic to certain obligations regarding trade policy, representations, The objectives pursued thro- but offers huge opportunities to benefit ugh diplomatic activities are - from increased access to foreign markets. • To attract foreign investment particularly for On a regional level, SPARTECA offers duty joint ventures; free access to the products of Forum Island • To promote Fiji’s tourism sector, to identify Countries (FICs) to the markets of Australia new markets for Fiji’s products and expand and New Zealand, subject to “Rules of Origin” existing markets; regulations. The ACP -EU Cotonou Convention • To facilitate and expand overseas develop- (previously known as Lome Convention) offers ment assistance to Fiji; a number of benefits to the Fiji economy, • To assist in attracting skilled personnel to predominantly through the Sugar Protocol that Fiji in key areas, to provide where possible, guarantees preferential access for a set quota assistance to less developed member countries of sugar at prices substantially above the world of the South Pacific Forum; to draw intern- market price. The Melanesian Spearhead ational attention to environment abuse of Group(MSG) consisting of Papua New Guinea, the Pacific region and promote measures of Solomon Islands, Vanuatu and Fiji, has moved environmental protection; from a cooperation agreement. Globlisation • To monitor and report on relevant technology; and freer trade, offer opportunities and dangers and to a small country such as Fiji. The WTO, and • To represent Fiji’s special circumstances in the non -discriminatory “Most Favoured Nation” respect of indigenous and human rights principle it enshrines offers equal rights to matters. market access concessions made to larger countries that Fiji was not able to negotiate Trade Policy on its own. This increased, and secure market International Trade has increasingly become access allows exporters to boost production an underpinning determinant of economic pros- and likewise revenue and employment. perity in most countries of the world, and Fiji The Fiji - Australia Trade & Economic

FIJI TODAY 2004 / 2005 20 GOVT, EXTERNAL RELATIONS & CONSTITUTION

Cooperation Agreement (FATERA) was signed leading member of the Forum, it is committed in 1999 in Canberra, Australia, setting the to assisting its neighbouring island countries framework for better bilateral trade between in their development. Fiji will continue to the two countries in the long term. Australia support regional co-operation in the Pacific is Fiji’s biggest trading partner (about 60% of Islands region, acting in concert with its neighb- Fiji’s total trade is with Australia.) The USA is ouring countries. Fiji’s Prime Minister, Laisenia a major market for Fiji’s export of garments Qarase was Chair of the Forum after being under a quota system as per the Bilateral Textile chosen by Forum Heads in the 33rd Meeting of Agreement signed in 1995 between the two the Pacific Islands Forum, held in Suva in August countries which expires by the end of 2004. 2002. Prime Minister Qarase was busy furthering Bilateral relations with Japan, South Korea and the interests of the forum countries since China have always been cordial. The newly holding the Chair, and in 2003, jointly chaired promoted “Look North Policy” hopefully will the 3rd PALM Summit (Japan - South Pacific further strengthen the relationship. Fiji has in Forum Meeting) in Japan with the Japanese existence a Bilateral Trade Agreement with Prime Minister, Junichiro Koizumi. In 2003 Prime China, in 1997, under which China offers Fiji’s Minister Qarase handed over the chair of the exports MFN treatment. The recognition of forum to New Zealand Prime Minister, Helen need to engage a major emerging world power Clarke who in April 2004, conducted the first saw the opening of the Fiji Embassy in Beijing Pacific Islands Forum Special Leaders Retreat in July, 2001. A bilateral agreement on where a Pacific Vision was adopted to guide agriculture was signed in August between China the Forum’s actions and policies. After being and Fiji and relevant ministries of both countries an observer in the Melanesian Spearhead Group are also working on a bilateral agreement on (comprising Papua New Guinea, Solomon Islands quarantine issues. and Vanuatu) for three years, Fiji became a full member at the 10th MSG Summit in PNG Fiji and the South Pacific in June 1996. Fiji has become a member of the Regional interests focus on membership of the General Agreement on Tariffs and Trade (GATT). South Pacific Forum and other regional agencies, It now becomes the 120th contracting party and bilateral relations with countries in the and which became effective from November, region. Fiji plays a very important role in the 1993. Prior to that Fiji had enjoyed defacto South Pacific Forum. Being a founding and status since independence. Fiji also has long

FIJI TODAY 2004 / 2005 GOVT, EXTERNAL RELATIONS & CONSTITUTION 21 standing historic ties with Australia and New and bilateral Fiji and the World. In order to be Zealand, including strong trade relations effective in our business abroad, the specific originating from the previous South Pacific roles of the nine missions abroad will be revie- Regional Trade and Economic Cooperation wed, with the firm objective of reinforcing Agreement ( SPARTECA). their performance. A major initiative will be The agreement has been historically impor- focusing on aligning their roles more toward tant in the development of manufacturing in trade promotions and securing market access Fiji particular in textile, clothing and footwear for our export products. It is anticipated that (TCF) which has become a major export industry in the course of their duties, closer consultations following its establishment in 1988. The TCF with our promotional agencies such as the Fiji industry has faced significant difficulties due Trade and Investment Board (FTIB) and Fiji to uncertainty over the extension of the new Visitors Bureau (FVB) will be maintained and SPARTECA arrangement - the SPARTECA - TCF strengthened so that the country can maximise Scheme. effective use of resources and information flow. The Australian Government had agreed in The Foreign Affairs Ministry will closely monitor March 2001 to a replacement preferential access the developments arising from the trade and scheme for TCF thus the SPARTECA - TCF economic agreements with Australia and New Scheme. Defence cooperation with both Zealand to further enhance and facilitate trading countries, Australia and New Zealand has relations, to safe guard our market access with resumed after it was interrupted by the events the two neighbours, consequently providing a of 1987 and 2000. Fiji has strongly opposed the viable alternative to SPARTECA. The Ministry conduct of nuclear tests in the Pacific region, has therefore re-opened the Sydney Consulate the dumping of toxic waste and the use of drift General Office to cater for such an important nets for fishing. It has strongly supported efforts area. Government will continue to streng- to promote sustainable development in the then the Embassies in Asia to get optimum particular conditions of small island states. It benefit from them, particularly in enhancing has drawn attention to the special environment trade and economic relations. It will also threats relating to the small islands of the establish new embassies with the objective of Pacific. Through its membership of the Forum, tapping into potential markets. In Asia and Fiji is involved in the Pacific Island Countries particularly China with a population of around Trade Agreement (PICTA) and the Pacific 1.2 billion people, there is an immense opportu- Agreement on Closer Economic Relations nity to tap new opportunities. India has been (PACER). Negotiations on these two landmark identified as another market which can offer agreements were concluded in June 2002 and potential access for products. The new Fiji provides for the future trade and economic High Commission in India opened this year. cooperation of the forum region as a whole by proving for the establishment of a Free Trade International Peacekeeping Area among the 14 FICS. Fiji will support the United Nations and its con- structive participation in international peacek- Fiji and the World eeping operations will remain a high priority. Regional interests focus on membership of the It has played a prominent role in international South Pacific Forum and other regional agencies, peace-keeping by the United Nations since

FIJI TODAY 2004 / 2005 22 GOVT, EXTERNAL RELATIONS & CONSTITUTION

1978. Apart from receiving in excess of $100 relations.To date, Fiji has formal diplomatic million through salaries and allowances, for relations with 70 nations. Fiji has ten overseas the first time a Fiji national, Major-General, missions. The diplomatic missions are located Jioji Konrote was made the Force Comman- in Beijing, Brussels, Canberra, Kuala Lumpur, der of the United Nations Interim Forces in London, New York, Port Moresby, Tokyo, Lebanon (UNIFIL). The Fiji Military Forces has Washington and Wellington. Most of the Heads served in Lebanon, Sinai, Afghanistan, Iraq, of Mission are also cross accredited to a number Kuwait, Namibia, Cambodia and Rwanda. of other countries. There are, in addition, 11 They have also served in Sinai under the US- honorary consuls to represent Fiji’s interests initiated Multi-National Forces and Observer in Brisbane, Melbourne, Perth in Australia, role. The FMF has established a high reputation Ottawa in Canada, Hong Kong, Tel Aviv, Seoul, in the performance of these duties. However, Singapore and Los Angeles, Portland -Oregon, so far Fiji has lost 34 peace keepers and civilian San Fransisco in the United States of Amercia. officers. Currently, Fiji has peace keepers and The promotion and establishment of external civilian police officers participating in the trade and economic relations through negot- UNIFIL, United Nations Iraq-Kuwait Observer iation is also an important functions of the Mission (UNIKOM). In addition, it has civilian ministry and the diplomatic overseas missions police officers in the United International Police assist with the responsibility for trade policy Transitional Force (UNIPTF) in the Balkans. implementation and coordination of trade Government by virtue of being a member promotion activities. The missions also identify of the special committee on peacekeeping and encourage potential foreign investors. In operations, is committed in ensuring that the addition, the Ministry also liaises with the peace keepers and officers are entitled to private sector, the Fiji Visitors Bureau and the maximum conditions in their area of operations, Fiji Islands Trade and Investment Board in including transparency in disciplinary procee- promoting and expanding Fiji’s trade and dings against them. Fiji participates in UN economic relations. peacekeeping missions in East Timor and Kosovo. Currently Fiji has three Trade Offices in In terms of securing Fiji’s national economic Sydney, Los Angeles and Taipei respectively. security interests, Fiji’s foreign and defence The two embassies that are maintained in the policies will continue to emphasize the closest United States are in Washington and New York, possible degree of bilateral relationships with with the latter being representative to the those countries who are vitally important as United Nations. The embassy in Brussels markets for our exports and tourism industry, represents Fiji to the European Union. A new and as sources of financial and other resources embassy in Beijing and mission in India have to boost capital investment development been opened. The change to export oriented activities in the country. economy policy strengthens the requirement for economic diplomacy in overseas missions. Diplomatic Missions Overseas missions, will in future, play a much Fiji will also continue to strengthen its bilateral stronger role in promoting Fiji products, tourism relations and regional and international particip- and investment. Greater support for the Fiji ations because these are the essential building Visitors Bureau will also be provided through bloc for our regional and multilateral the overseas missions.

FIJI TODAY 2004 / 2005 ECONOMY

Fiji is in its third year of strong and continuous 2007. The Film Industry is also gaining signif- economic growth. This is quite unprecedent- icant ground in Fiji with a Film Tax Rebate ed, clearly indicating that the measures taken Legislation. Mahogany and the Information to rescue Fiji’s economy after 2000 have Technology (IT) industries are two areas that borne fruit. The three-year Strategic Develop- are potentially lucrative. ment Plan (SDP) of Government began implem- Fiji is no longer an agriculture-based econ- entation in 2003. Economic performance has omy. The distribution of economic power in been strong, growing to 5 per cent in 2003, the country comparing the size of the major despite the negative effects of cyclone Ami, sectors shows that the primary resource based the war in Iraq and the SARS virus in the first sector-which encompasses agriculture, fore- half of the year. Government’s vision of “Buil- stry, fishing and mining - has declined in its ding Lasting Prosperity Together,” means first share of GDP since 1986 from 25 to 18 per promoting growth and investment, ensuring cent. It has been surpassed by the wholesale growth is sustainable and involving everyone & retail trade, restaurants & hotels sector in the process on development. The present which now accounts for 19 per cent of GDP expansion of Fiji's economy places it among and is growing. This retail sector incorporates the top rank of economic performers in Asia the flow on effects of tourism. and the Pacific. Numerous substantial private and public sector projects are in the pipeline Overview 2004 ($300 million) reflecting a high-level of local The economy is expected to grow by 5 per and overseas confidence in the economy and cent in 2004. This growth is underpinned by the country. Current projects are estimated strong performances in the tourism, manufac- at approximately $100 million. Cement sales, turing and construction sectors as well as do- a universal measure of economic performance mestic demand. Domestic economic growth are strong, reflecting the robust performance is forecast at 4.1 per cent with global growth of the construction industry. expecting to increase to 4 per cent in 2004 Tourism continues to be the main earner due largely to the economic pick-up in the of foreign exchange followed by garments, United States. Monetary policy in 2004 is being sugar, fish, gold and mineral water. If the geared towards achieving low inflation and present positive situation continues, tourism monetary adequate levels of foreign exchange. will be on target to achieve its goal of annual Inflation is expected to fall around 3 per cent. earnings of $1billion and 500,000 visitors by Foreign reserves are expected to remain at

FIJI TODAY 2004 / 2005 24 ECONOMY adequate levels. The net deficit in 2004 will industry. Government has welcomed the be reduced to 3.5 per cent of GDP. Achiev- approach recommended by the Technical ement of this will be the exertion of more Mission in that it looked at the reform in the control on expenditure. sugar industry as a whole, covering milling, cane production, the transport system and Natural Resource Sector the up-skilling of workers. The medium-term The natural resource sector, which includes outlook for the industry is that sugar produc- agriculture, fisheries and forestry contributed tion will improve this year as a result of the 16.6 percent of total output in 2001. Output positive impacts of Government’s efforts on was expected to fall slightly to 16.1 percent transportation and milling infrastructure in of GDP in 2002 and 15.5 per cent this year, the industry. The export tax on sugar was re- due to the decline in sugarcane productions. verted to 3% in 2004 as a measure of Govern- A notable impediment to progress in these ments sensitivity to the plight of those whose sectors is the issue of unresolved land prob- livelihoods depended on it. lems. Mining and Quarrying is expected to co- ntribute 11 per cent of total output compared Mineral Resources to last year, which was 7 per cent. The potential for the expansion of the mineral sector in Fiji is considerable given its geolo- Sugar Industry gical formation and location in the Pacific. The sugar industry, which has been the princ- Most reconstruction of the past see that Fiji ipal export of Fiji since 100 years ago, contin- not so long ago was an integral part of the ues to occupy a dominant position in the econ- Pacific “Rim of Fire”, a complex plate boun- omy. It has contributed significantly to the dary. This boundary is well -recognised as development of the economy and continues the focus of several major world -class porph- to provide jobs and incomes for many thous- yry copper-gold and epithermal gold systems. ands of people. 200,000 people are dependent Besides precious and base metal prospects on the industry. there are also industrial minerals (stone, In 2003, output in the sugar industry was marble and aggregates amongst others) that about 3.3 million tonnes of cane and 344,102 can be developed in the short to medium tonnes of sugar. Government had approved a term. commercially based restructure of the indus- The mining and quarrying sector has contri- try, to improve efficiency through upgraded buted an average of 2.8 per cent to GDP over machinery, equipment and infrastructure and the past five years. Whilst this sector is domin- to resolve the expiring land lease issue. Gove- ated by the mining activities at Emperor Gold rnment acknowledges that the industry is Mines (EGM) in Vatukoula, operations such as facing severe problems and anticipates that dredging, gravel extraction and quarries do these challenges will be met through reforms exist elsewhere in Fiji. Gold output rose by underpinned by rigorous research, and decisive 1.8 per cent in 2001, underpinned by better actions. quality ore and the improvement in internatio- In April 2004, Cabinet approved in principle nal gold prices towards the end of the year. to adopt the recommendations of an Indian Mining prospects for this year are favourable, Government sponsored technical mission on in line with EGM’s planned expansion of the the commercial structure of Fiji’s sugar mines. Cabinet in March 2004 approved a 21-

FIJI TODAY 2004 / 2005 ECONOMY 25 year extension to the mining leases and rights and footwear to grow by 5.5 percent. In the of EGM, which also produces silver as a by- medium term, Government will focus on diver- product. Production to date in the mine, which sification of the manufacturing base, expansion commenced in the early 1930's is well over of competitive niche industries with high-value 1.7million ounces of gold or 120,000 ounces added components. It will increase its efforts annually. This equals around $70million per in facilitating the linkage between other crops annum. (primary production) and manufacturing through increased promotional activities and Manufacturing awareness programs on manufacturing. The Manufacturing sector plays a strong role in the economic fundamentals of the country. Transport and Storage and Communication The country’s strong economic growth since The Transport , Storage and Communication 2000 has been attributed to production gro- sector has experienced robust growth over the wth’s registered in this sector, much attrib- past few years, apart from 2000. The sector uted to the tax-free factories. The Manufactu- is riding on the wave of the tourism industry ring Sector contributes 12-15 per cent of GDP which has led to the increase in airline and with garments being the second-highest foreign shipping servives. This sector plays a major exchange earner to Tourism. Manufacturing role in the economy, contributing an average output rose by 11.6 percent in 2001, following of 13.5 percent per year to GDP over the last a 6.2 percent contraction in 2000. Although five years and gaining ground to 14 percent sugar and non-food manufacturing declined, in 2003. The sector is dominated by the tourism this was more than offset by a surge in prod- industry, which provided most demand for air uction in the garments and other food manufa- travel as well as a high proportion of other cturing industries. Growth in the garments transport and communication services. Growth industry was good for the year 2001. A few in the sector for this year, is projected at 9.7 large companies performed exceptionally well, percent, based on expectations that 2003 will boosting output in this sector. Furthermore, be a new record for visitor arrivals and the some of the producers also succeeded in secu- increased demand for transport services ste- ring orders from those garment factories that mming from the 2003 South Pacific Games ceased operations, thus offsetting production (SPG).The sector was one of the main drivers losses. The strong and steady growth is of growth in 2001, expanding by 6.6 percent expected in 2004 with other food industries and was projected to grow further by 8.4 per- forecasted to grow by 4.0 percent and clothing cent last year. This was due to an increase in new vehicle registrations of private cars, taxis, buses and goods vehicles and an incre- ase in air travel resulting from high visitor arrivals.

Tourism Tourism is considered Fiji’s star performer after its performance and quick recovery after the 2000 political and economic crisis. Tourism was Fiji’s largest foreign exchange earner last

FIJI TODAY 2004 / 2005 26 ECONOMY

year. For 2003, visitor arrivals rose to 420,000 raising the proportion of its capital spending compared to the 2002 figure of 397,859. In to total expenditure. To ensure this commi- 2002, visitor arrivals increased by 14.3 percent tment is fulfilled, Government has prepared compared to 348,014 visitor arrivals in 2001. a pipeline of well-designed programs and Tourism earnings are forecast at $673.6 million projects in the priority sectors. in 2003. The favourable performance of the tourism industry has been assisted by the Labour Market marketing efforts of the Fiji Visitors Bureau, The labour market is an area where reforms in conjunction with major hoteliers and airline are to be implemented. The reform effort companies, also several major conferences aims to link wages to productivity and skills. last year. The major reform effort in 2003 was the As the industry with the best growth finalisation of the Industrial Relations Bill a prospects both for job creation and for the comprehensive legislation which addresses economy as a whole, tourism will continue to the conditions of employment, trade union be strongly supported in close coperation with recognition minimum wages and introduces all its stakeholders. A major undertaking is a labour court to settle industrial disputes. the review of the Fiji Tourism Commission The May 2000 political and economic crisis and Visitors Bureau Act. The aim is to streng- had caused redundancies and reduced incomes then the Fiji Islands Visitors Bureau to make through shorter working hours. The worst it more effective in marketing Fiji’s Tourism affected sectors were tourism, garments, Industry. retail and construction. A high level of out- flows of skilled citizens through migration Investment has been of great concern. In the medium Investment levels in Fiji have increased with term, skill shortages will be addressed through Government targeting 25percent of GDP. At more and better training programs. Employ- the moment, levels are at 16 percent of GDP ment situation in other industries basically Government adopted an expansionary fiscal improved. With the new foreign projects stance in 2001 and 2002 to provide a more implemented during the first half of 2002, it conducive environment for private, sector was expected that more jobs would be gene- investment, as well as to provide for a higher rated. Providing decent jobs for the 17,000 level of investment spending by Government. job seekers each year is a major challenge This is part of Government’s commitment to for Government. The Integrated Human Reso-

FIJI TODAY 2004 / 2005 ECONOMY 27 urce Development Programme for Employment also having important trading links. Imports Promotion (HDPEP) has been extended to 2004 from all major categories are anticipated to to complete piloting of the initiatives. Its grow, especially investment and consumption replication throughout the 14 provinces will goods categories. In line with expectations facilitate the promotion of sustainable formal of continued strong economic growth in 2002, and informal jobs in the rural as well as urban imports excluding aircrafts, were expected areas. A sum of $1.5 million has been provided to increase by 8.0 percent, led by higher in this years budget for this programme. With payments for investment related goods (such targeted growth of 4.9 per cent in 2002 and as food, beverages & tobacco) and interme- 5.1 per cent in 2003, there is a positive outlook diate goods (mineral fuels). The ongoing prob- that more jobs will be created. On the wages lems faced by the sugar industry continue to front, concerns are of the rise in wages that adversely affect export earnings. For this is not performance or productivity based. year, export earnings are forecast to grow Government will continue to address labour significantly, by 3.4 percent, largely due to market constraints of wage setting and Indus- higher receipts from all major export commo- trial Relations; low productivity, skill shortages dities, except sugar, molasses and copra. and inadequate functioning of the labour Consistent with subdued world economic out- market. look, total export earnings in 2002 were expec- ted to decrease marginally by 2.2 percent. Inflation Mineral water, gold, garments, fish and timber Inflation has been generally low. It ranges at exports are forecast to record good growth around 3 percent, supported by low inflation this year. Exports, including aircraft, grew in Fiji’s major trading parties. largely in 2001 by 2.8 per cent due to higher receipts from gold, fish, mineral water and Monetary Policy fruit and vegetables. Exports of garments, Monetary policy continues to be aimed at textiles, sugar, timber, footwear and copra keeping inflation low and maintaining an adeq- fell during the same period. Consistent with uate level of foreign reserves whilst continuing the subdued world economic outlook, total to support growth. With the monetary policy export earnings in 2002 were excepted to being relaxed in the last 3 years to promote increase marginally by 0.1 per cent higher growth, positive flow on effects have happ- export receipts are forecast for gold, mineral ened. The domestic financial market is still water, fruit &vegetables and molasses. Gold very liquid and consequently the leading inte- earnings are anticipated to rise significantly rest rates of commercial banks have declined due to increased production and higher anticip- to historical lows. The Reserve Bank of Fiji ated gold prices. Earnings from garments, notes a rapid rise in Commercial bank loans textiles, yagona, timber and sugar were in recent months mainly to consumption and expected to fall in 2002. lending for housing. Balance of Payments Trade The overall balance of payments situation is Fiji’s major trading parties are Australia, New expected to improve over the 2003 - 2005 Zealand and the US with Pacific Island neigh- period. The current account deficit is likely bours Papua New Guinea, Samoa and Vanuatu to narrow in 2003, because of strong anticipa-

FIJI TODAY 2004 / 2005 28 ECONOMY ted growth in tourism earnings, as well as ted net short-term private capital inflows and higher expected inflows in other transportation a sharp projected decline in the short term services. The current account deficit is expec- trade credit balance. ted to contract significantly in 2004 and 2005, mainly attributed to the reduction in the Foreign Reserves trade deficit, low anticipated inflows in other Foreign reserves over the last 3 years has ave- transportation services and a projected rise raged around $830 million or about 4 months in tourism earnings. A gradual widening of of goods and non-factor services despite world the capital account surplus is also forecast and national upheavals. in the period 2003 -2004, largely due to an expected increase in direct investment inflows. Government’s 2004 Budget However, the capital account surplus is expe- The theme of the 2004 Budget is “Building cted to narrow moderately in 2005, mainly Lasting Prosperity Together ”. This means; underpinned by a likely decline in direct inv- first, promoting growth and investment; sec- estment inflows. Fiji’s overall balance of pay- ond ensuring growth is sustainable; and third, ments position was expected to weaken in involving everyone in the process of develop- 2002, due to a deficit of $105.2 million from ment. Growth needs to be driven by investm- a deficit of $30.2 million in 2001. The trade ent and exports rather than consumption. To deficit is expected to deteriorate significantly, ensure that the benefits of the growth reach reflecting lower export receipts and a sign- all sections of the community, government ificant rise in import payments. The current will continue to work closely with the private account deficit is expected to widen to $219.2 sector and civil society. This theme is linked million, following a deficit of $126.7 million to Government’s vision of a “Peaceful and in 2001, due to higher expected service outf- Prosperous Fiji”. Securing a sustained level lows reflecting higher outflows on other priv- of economic growth will in turn create more ate services and an anticipated increase in jobs over a longer period of time and allow investment income outflows particularly direct to narrow the income and opportunity gaps investment income payments abroad. The that exist in our society. It also improves the capital account surplus is forecast to contract ability to pursue a strong redistributive spen- $111.4 million from $178.4 million in 2001. ding policy and address the basic This is due to a result of higher anticipated needs of the people, particularly net statutory debt repayments, lower expec- the poor.

FIJI TODAY 2004 / 2005 ECONOMY 29

Government’s Medium Term Strategies ation of raw materials to companies that are Government’s strategy aims to secure sustai- expanding their operations. This package has ned economic growth. In developing this med- been extended for a further 12 months in ium term strategy, Government has considered 2004. Government has also established the the current political, social and economic Fiji Investment Corporation which is to be situation in Fiji and the underlying causes of responsible for providing capital to start up Fiji’s slow progress in social and economic eligible ventures that have difficulties in rais- development. The medium term strategy ide- ing funds. This will make the business enviro- ntifies priorities that must be addressed over nment more investor-friendly. Some of the a three-year period. These priorities are: recommendations include delegating authority • Maintaining macroeconomic stability; for the issue and transfer of shares to non - • Raising investment for growth and jobs; residents to the Fiji Islands Trade and Invest- • Promoting security and unity for stability; ment Bureau. Government has also conducted Structural reforms to promote competition a review of the 1999 Foreign Investment Act and efficiency; and its Regulations to address the effective- • Alleviating poverty and improving rural ness of the Act in facilitating foreign invest- and outer island development; ment, encouraging local participation and • Implementing affirmative action and social reducing the time lag involved in approving justice ;and Foreign Investment Certificates. In relation • Strengthening good governance in all state to the Audio Visual Industry, Government institutions, including the reform of also intends to review the current incentives the public sector. in order to encourage more non - resident Government believes that in adhering to these investors. This incentive should attract big priorities, they will achieve sustained econo- production budgets to Fiji. Simple legislation mic growth of 5 per-cent per year. More impo- will also be enacted in 2003 to ensure that rtantly, Government believes that these prior- hotel owners carry forward losses in respect ities will enable us to fight poverty and raise of their investment for a period of 13 years, the standard of living of all our peoples. These which is an additional 5 years to the normal priorities are consistent with the Plan of Impl- loss period of 8 years. ementation of the World Summit on Sustai- nable Development adopted in Johannesburg Taxation in September 2003 and the Millennium Develo- The revenue collections of the country are pment Goals adopted in 2000. continuously being optimised through impro- ved compliance, broadening the tax base and Investment Packages encouraging investment. Currently, a review Investment is the key to achieving economic of Fiji’s taxation regime is being pursued growth. Government will continue to ensure after the last review held over a decade ago. that Fiji’s economic environment remains A Fiscal Review Committee is now examining conducive to all kinds of investment activity how the tax regime can be adapted to a rapi- in order to support economic growth and dly evolving global trading environment. employment opportunities. Investment pack- ages highlighted include the Short-term Inves- Taxation measures in 2004 include: tment Package which offers duty-free import- • A 150 per cent tax deduction to companies

FIJI TODAY 2004 / 2005 30 ECONOMY

on the costs associated with preparations Justice Act of the 1997 Constitution, affirm- for listing on the stock Exchange ative action is designed to allow disadvantaged • Value-added Tax (VAT) reimbursement of groups equal access to education and training; $240,000 on building materials for schools land and housing, commerce and social wel- • Continuation of the 12.5 per cent, Value- fare. Affirmative Action for the disadvantaged Added-Tax (VAT) on all goods and services is legislated through the Social Justice Act of • 200 per cent tax deduction for all comp- 2001 and covers a total of 29 programmes. anies that contribute more than $100,000 Of the 29 programmes, five are for indigenous to sports. Fijians only, five for Fijians and Rotumans, Specific direct taxation measures include: two for Indians and minority groups and 15 • Reduction of corporate and personal inc- for all persons in rural and peri-urban areas; ome tax rates from 32 to 31 per cent. one for ex-prisoners and one for the disabled. • Increases in allowances for widows and The Blueprint is an ‘affirmative action’ progra- widowers to $1,200 mme specifically targeted at Indigenous Fijians • Implementation of Director’s Tax Liability and Rotumans and designed to bridge the where directors of companies going into socio-economic gaps between them and other liquidation. ethnic groups. The Blueprint has a total of 42 • 150 per cent tax deduction to employers sub-programs that is classified under legislative for the employment of school leavers measures, policy measures and budgetary Indirect taxes include: measures. Provisions have been made in the • Allowance of certain value-adding activities 2004 Budget whereby major activities will be to qualify for the Duty Suspension Scheme implemented under the Blueprint initiatives to support exports and Affirmative Action programmes. Some of • Weekly settlement scheme for payment the programmes include: of customs and excise duty • development assistance scheme for Fijians • Increase by 3 per cent of excise rates on and Rotumans, cigarettes and spirits. • establishment of Fijian Education Fund, • Increase of duty on canned fish and white • establishment of Fijian Trust Fund. rice to 27 per cent to protect the local • provision to assist in buying back ancestral industry. land through interest free loan, • FDB interest subsidy scheme for Fijians A new Fiji Integrated Tax System (FITS) is and Rotumans, currently being undertaken by the Fiji Islands • Boarding facilities to registered and non- Revenue and Customs Authority (FIRCA) to registered Fijian schools, bring together the processing of Income Tax • Review of the Fijian Administration Review and VAT returns so as to enhance quality and report, efficiency of services to tax payers. • Renewal of expiring native leases, • Transfer of State land and Schedule A&B Indigenous Fijian Affirmative Action to NLTB, Government believes in the necessity of provi- • Upgrading of Squatter Settlement and ding special assistance programmes that would existing subdivisions, allow indigenous Fijians and Rotuman’s partici- • Grant to Self - Help Projects and Poverty pation within the economy. Under the Social Alleviation projects.

FIJI TODAY 2004 / 2005 TRADE & INVESTMENT

Fiji’s economic achievements since indepe- is now in train. Government will consult ndence have become a model for other closely with the business community on countries in the South Pacific. And the measures to further stimulate increased Government is working on improving these investment both by local and foreign achievements to make Fiji a major trade investors. Some of the specific measures and export centre in the South Pacific. to be undertaken include: Recognising the vital role private investment • reducing the cost of doing business (both local and foreign) can play in this in Fiji; regard, Government embarked on a comp- • promoting small and micro-enterprises rehensive plan to enhance and stimulate through fiscal incentives and easy credit investment in the country. It is also revie- access; wing its export and investment incentives • setting up a separate bank to provide to ensure they remain internationally comp- loans for the farming community and etitive and continue to attract overseas agro -based industries; and local investment. • re-examining the role of the Fiji Government had announced in 2002, Development Bank to be better focused. policies aimed at building a positive envir- The country has also taken an ambitious onment for investment. The policies were step of becoming a member of the General aimed at being business - friendly and as a Agreement on Tariffs and Trade (GATT) and result unquestionably resulted in the develo- becoming part of the international economy. pment of confidence in the economy. For In fact, Fiji joined the World Trade Organ- 2003, there was a new investment incentives isation in January, 1996. And in this endea- package and further concessions for indust- vour to be part of a liberalised and fairer ries identified as having high potential for multilateral trading system, has attempted expansion and development such as tourism, to address the basic principles embodied mining, fishing, bus building and film mak- in the WTO Agreement. The main impetus ing. Government understands that to fight of growth of this sector has been the introd- the lack of investment, it must substantially uction of the Tax Free Factory/Tax Free lift public investment on infrastructure and Zone scheme in 1987. There are currently promote expansion. As such the largest pro- 131 factories operating under the scheme. gramme of public investment in Fiji’s history The factories have a total investment of

FIJI TODAY 2004 / 2005 32 TRADE & INVESTMENT about $95 million, providing jobs to 13,000 The service sector presents such an oppo- people and generating exports of more than rtunity. Fiji has a reserve of educated work $250 million. force and the advantage of being 12 hours The manufacturing sector has attracted ahead of GMT through its geographical a lot of investment in recent years and as location, gives great potential to expand a result has become one of the fast growing the development and investment of the sectors of the economy. In 1999, the man- services sector. The services sector is an ufacturing sector accounted for around 15.4 important sector of the Fiji economy through percent of total GDP. Manufacturing output its contribution to GDP, employment and is expected to have fallen sharply in 2000, exports. Whilst much of this is attributed following strong growth in 1999. to the tourism sector, other areas such as Government supports a political and education, finance, health, information and economic environment in which the private telecommunication based services offers sector can invest and undertake business potential for Fiji. initiatives with confidence. It will provide them with political and economic stability, Increased Investments policy transparency and certainly security Following the enactment of the Film Tax of their investment. Amongst the primary Rebate legislation, there has been an upsu- strategies for generating economic growth rge of interest by prospective investors in and increased economic opportunities for film-making in Fiji. The famous project the people, will be government’s effort to Anaconda II at Pacific Harbour about the raise the level of investment by the private Giant Snake Volume 2 has created jobs for sector through the introduction of special about 600 people, part -time and full time. measures and incentives in strategic areas The Fiji Audio Visual Commission has iden- through the development of capital market. tified at least eight new projects for the The government values the important contri- next 12 months with a combined budget of bution of foreign investment in complemen- well over $200 million dollars. If half of this ting domestic investment, creating jobs was spent in Fiji, $247 million of new income and increasing export earnings. would be generated and 3,000 jobs. The The Foreign Investment Act, 1999 will Colonial and Motibhai Suva Central office, reduce the time for obtaining Government banking retail and residential complex is approval to invest in Fiji for foreign inve- taking shape in the heart of the city. The stors. This will encourage the early imple- Carpenters Group is getting ready to start mentation of investment projects. The Act construction of Carpenters towers, which takes another step forward towards transfo- is to be the tallest commercial building in rming the FITIB. The government will also the South Pacific, at a cost of some $60 strengthen the FITIB, including its overseas million. Tappoo Group has plans for substa- trade offices, which will need to become ntial enlargement of its Suva retail store more proactive and adopt a more targeted not far from the Carpenter site. It is also approach to attracting investment. The completing arrangements for construction government will continue to explore oppo- of a Pepsi Cola bottling plant. An American rtunities for diversification of investment. company has been given approval to

FIJI TODAY 2004 / 2005 TRADE & INVESTMENT 33 construct a five-star hotel, as part of fores- strategy titled the “Strategic Development hore development. The newly established Plan, 2003 -2005” which is to enable Govern- Fiji Investment Corporation, which will act ment to achieve its vision of a “Peaceful as an investment catalyst, is now fully and Prosperous Fiji”. The medium term operational. It has bought the famous Suva strategy identifies priorities to be addressed landmark, the Grand Pacific Hotel, and is during the next three years. These priorities looking for partners to bring the GPH back are: to its former splendor. Punja’s will spend • Maintaining macroeconomic stability. around $30 million dollars on the construc- • Raising investment for growth and jobs. tion of a plant to produce energy from • Promoting security and unity for waste. The processing plant is to be adjac- stability. ent to the EU-funded landfill at Naboro, • Structural reforms to promote close to Suva. The concept envisages using competition and efficiency. 250 tonnes of municipal waste daily to prov- • Alleviating poverty and improving rural ide 4.6 megawatts of electrical power to and outer island development. be sold to the Fiji Electricity Authority. • Implementing affirmative action and At Vatukoula around $90 million is to be social justice; and strengthening good spent for expansion. The FITIB have been governance in all state institutions, active in mounting trade missions to assist including the reform of the public sector. the private sector in penetrating new mar- In adhering to these priorities, Government kets. Trade missions have visited South East believes it will achieve sustained economic Asia, Australia and New Zealand. Manuf- growth of 5 per cent per year for the country acturing exports continue to benefit from and more importantly see the priorities preferential trade agreements, including fight poverty and raise the standard of living SPARTECA, which allows duty and quota of all people in the country. free access for Fiji products to New Zealand Two accompanying documents were also and Australia; the Cotonou Convention to prepared namely the 20 year Development centres in the European Union; and the Plan for the Enhancement of Indigenous Generalised System of Preferences which Fijians and Rotumans, and the Public Sector allows goods originating from Fiji preferen- Investment Programme. The development tial access into the United States and Japan; plan spells out the mainstreaming, empow- and bilateral trade agreements with some ering and advancement of the participation countries. Fiji has also negotiated double of Indigenous Fijians and Rotumans in the taxation agreements with Australia, New economy. Affirmative action and social just- Zealand, United Kingdom and Malaysia under ice programmes are essential for achieving exemptions of tax concessions granted by stability and growth and are part and parcel the Fiji Government are not negated by the of government’s medium term strategy. imposition of tax in the country of residence The development plan is based on the ‘blue- of the investor. print’ which has the approval of the Bose Levu Vakaturaga. Strategic Development Plan The Public Sector Investment Progra- Government has developed a medium-term mme outlines in some detail a pipeline of

FIJI TODAY 2004 / 2005 34 TRADE & INVESTMENT investment projects consistent with the choices in the purchase of goods and Interim Administration’s priority sectors. services. Cabinet has approved the implementation Government is designing a technological of the Small Business Equity Scheme(SBES) policy that will promote greater utilisation that will help advance indigenous Fijian and appropriate technology, to increase and Rotuman participation in business and production efficiency and improve the pro- commerce. The SBES was introduced under duction of locally produced goods. The gov- the Interim Government’s blueprint progra- ernment would encourage companies which mme. However, it’s also aimed at suppor- currently enjoy duty concessions on plant ting the involvement of other races. The and equipment such as those under the purpose of the SBES is to assist people of Tax Free Zone scheme to utilise these conc- all races in raising their equity capital con- essions to acquire technology. New and tribution towards loans for their businesses. modern technology will equip our industries This has been a major drawback for people with the competitive edge needed to survive that wish to raise their loan finance through in the new global environment. The Depar- the Fiji Development Bank, but were unable tment of Fair Trading and Consumer Affairs to provide their 20 per cent equity capital. (DFTCA) was established in 1993. The DFT Business with assets or annual turnover of CA, formed by a merger of the Trade Measu- $100,000 or less will be assisted under the rement Division (formally known as weights scheme for indigenous Fijians and Rotumans. and measures) and the Standards and Quality For the other races, businesses with an ann- Control Division, has the role of enforcing ual turnover of $50,000 or less will be assis- the National and Trade Measurement Decree ted. Consumer protection legislation play 1992, the Fair Trading Decree 1992, the an important role in ensuring that the poor Sale of Goods Act 1979 and the Dumping members of the society are not exploited and Countervailing Duties Act 1998. The as they obtain goods and services needed Department is also required to provide the to maintain reasonable standards of living. necessary infrastructure for standardisation, The Fair Trading Decree and other existi- quality assurance, research and reliability ng consumer protection legislations are of Fiji - made products and prevent inferior, being vigorously enforced to safeguard the unsafe products from entering the domestic interests of consumers to promote effective markets. A Commerce Commission has been and fair competition. This includes the Con- established to ensure that an integrated sumer Credit Act that will encounter the approach to the regulation of consumer unfair practices which have been apparent protection, competition and pricing in all with the provision of hire purchase and oth- sectors of the economy including public er reforms of consumer credit. Government utilities is effectively undertaken by govern- will also work closely with the Consumer ment. The establishment of this Commission Council of Fiji to identify any gaps where reflects the importance of a fair and ethical further action is required, to protect consu- market place. mers and to implement effective educatio- nal programmes to enable consumers to be Co-operatives aware of their rights and make informed Co -operatives have continued to play a

FIJI TODAY 2004 / 2005 TRADE & INVESTMENT 35 crucial role in the Fiji economy and prese- network of the Co-operative department ntly about 29,000 families are involved in to extend advisory services, not merely to the co-operative movement, representing co-operatives, but to all small businesses four per cent of the national population. in the four divisions Co-operatives membership are mostly rural dwellers with a total of 22,000 members Direction of Trade of 531 operating co-operative business of Trade has been a major contribution to various types. Because of scarcity of trading economic growth in Fiji. Fiji accepts that in rural areas, co-operative type of busine- the world is moving towards the globa- sses remain the only cheapest means of pro lisation of trade and thus it’s essential viding services at all times, aiming at that the country be an active participant improving the living standard of the people, in the world market. The ratification of both socially and economically. A total of GATT and the membership of the WTO body 672 people are employed by Co-operatives demands that the country fully prepares and additional employment is facilitated itself for the challenge. In particular Fiji through the provision of services related to must be prepared for changes to special credit production, marketing and inputs preferential access under the LOME arran- supply for the agricultural sector. The majo- gements and closer to home, the country’s rity of co-operatives are however, consum- export base needs to be diversified to iden- ption and service related, this is shown by tify competitive sectors because of the the fact that 80 per cent of the jobs are possibility of the continued erosion of the provided by consumer co-operatives, cons- regional trade agreement, SPARTECA. In umer marketing and product marketing trying to open up new markets for trade, co-operatives. The government will also Government recently entered into two bila- look at ways of revamping the co-operative teral trade agreements. The first, a non movement as a vehicle for promoting busin- reciprocal agreement with Tonga in Decem- ess and industrial ventures. This includes ber, 1995 and the second, a reciprocal the identification of successful models, str- trade agreement with Papua New Guinea engthening marketing and account keeping in August, 1996. Bilateral and generally the image of the co-operatives trade discussions have sector through better also been initiated management practices. with other forum The ministry is already island countries, finalising plans to notably Fiji’s use the extensive Melanesian

FIJI TODAY 2004 / 2005 36 TRADE & INVESTMENT

Spear-head Group partners. There has been molasses from the processing of sugar cane a continuing shift in the direction of Fiji’s are used in the production of high quality export trade over the past five years, due rum. Industrial alcohol which forms the to industries such as garment and the gen- basis of many products, including pharmac- eral free trade approach, adopted by coun- euticals, can be produced on a large scale tries including Fiji’s major trading partners. from sugar cane by-products.

Fiji Islands Trade and Investment Board Diversification The Fiji Islands Trade and Investment Board Australia and New Zealand have continued [FITIB] was set up by Government to pro- to be Fiji’s major trading partners. But rec- mote investment in the country. The Board ently Fiji has been actively pursuing trade consists of representatives from the govern- links with countries in South-East Asia. It ment, private sector and trade unions. It is now re-looking its external trade policy provides information and liaison on all asp- and giving it a new direction and emphasis ects of trade and investment in the country. that it will follow to take advantage of the It also promotes export markets. A wide growth in the South-East Asian market. range of investment opportunities exists in Foreign investment is encouraged in Fiji, Fiji. Government encourages and offers particularly in joint ventures with local incentives in export oriented businesses people and in the export oriented busine- and in the tourism sectors which is showing sses. Foreign nationals may engage in busin- steady growth. ess in the form of single proprietorship, a The FITIB has opened three trade comm- limited liability company, an ordinary partn- issions overseas: Taipei, Los Angeles and ership or a branch of a foreign corporation. Sydney. The aim of these commissions are to assist in increasing Fiji's exports to these Investment Incentives countries and attract investment opport- Apart from various tax incentives that the unities in the country. Fiji has enjoyed succ- investors may benefit from, there are other ess in labour intensive industries such as incentives that Fiji offers. Goods enjoy pre- the manufacture of garments, footwear ferential and unrestricted access to Australia and furniture for export and has room for and New Zealand under the South Pacific further opportunities. By-products such as Regional Trade and Economic Coope-

FIJI TODAY 2004 / 2005 TRADE & INVESTMENT 37 ration[SPARTECA]. Although SPARTECA was safeguard measures, and subsidies and signed in 1987, it continues to offer signif- countervailing measures. While the sugar icant viability. While New Zealand has acce- industry remains the commercial backbone pted a derogation of 45 per cent from 50 of Fiji’s economy, other main contributors per cent previously, Australia under 50 per include copra, gold, timber and fisheries. cent local content rule agreed inclusion of Other secondary industries such as garments, seven of the requested items by the Fiji footwear and food processing are also on government. Fiji derives similar benefits the increase. Small scale industries which from the Contonou Convention which allows manufacture products for local and overseas former colonies in Africa, the Caribbean markets include aluminium products, agricu- and Pacific duty free and the unrestricted ltural equipment, boats, beverages, cement, access of goods ‘originating’ in these territo- furniture, cigarettes, handicraft, plastic ries, to the 15 member states of the Europ- products and tea packaging. ean Union and from the Generalised Syst- em of Preferences [GSP], where by various Mineral industrialised nations grant preferential The mining sector is important to Fiji for treatment to imports from developing a number of reasons. It continues to make countries. a significant contribution to the economy, In light of joining the WTO, trade prefere- averaging about three per cent of GDP in nces are eroding with the gradual disman- the last three years. The Vatukoula under- tling of preferential trade agreements. ground gold mine is the country's largest However Fiji with its limited and restricted private employer with over 1600 employees. financial and manpower resources, has been Gold is the predominant mineral mined and proposing for the extension of trade prefe- explored in Fiji. Other mineral production rences under the LOME Convention to beyo- derived revenues are from sand and gravel, nd the year 2000. With Fiji’s ratification of quarried stone and coral sand. Total ore the WTO Agreement, transparency is being reserves for the Vatukoula mine are 255,500 introduced by the gradual reduction of tariff ounces of gold with annual production barriers and the removal of most licenses capacity of 135,000 ounces of gold. The and subsidies. Policy changes have begun mining and quarrying sector is expected to to be made that will offer nondiscriminatory grow by 12.2 per cent in 2002. trade practices to potential investors. Curr- The outlook for the medium-term looks ent obligations being implemented include bright with output expected to increase the modification of the Customs Valuation by 19.8 percent in 2003. Together with the System.The country would also have to mine, the company holds over 900 square harmonise to new systems of Sanitary and kilometres of exploration leases in Fiji. Phytosanitary Measures, and to new Rules Much of the exploration ground is located of Origin. in the vicinity of the mine and new deposits In addition policies and procedures will continue to be defined by drilling within have to be reoriented to account for the the mine boundaries. The gold mining sector complex and technical provisions on anti- worldwide has undergone severe perturb- dumping, technical barriers to trade, ations recently as a result of sharply lower

FIJI TODAY 2004 / 2005 38 TRADE & INVESTMENT gold prices. The Tuvatu Gold Project located SPARTECA arrangement. However, with the in the Sabeto valley, around 20 kilometers Australian and New Zealand economies northeast of Nadi and slated for startup in becoming more closely integrated and tariffs late 1998 is now on indefinite hold pending being reduced,the level of preference in improvement of the gold market. Nearly these markets is being eroded. The marke- 70 per cent of Viti Levu's land area and 60 ting efforts of the industry are likely to per cent of Vanua Levu's land will be subject become more focused with concentration to exploration licences once existing licenses on the existing markets, successful penetra- are renewed and applications for new tion of the United States market and increa- licenses approved. The recently released sing attention being paid to the European aeromagnetic study, funded by AusAID, is market. expected to generated significant new exploration interest in Fiji. Building and Construction Many building projects have started in the Garment major urban centers. Recent indicators Garments is Fiji’s second highest foreign show that building and construction is boo- exchange owner surpassing sugar. The Gar- ming . Permits for building and construction ment industry grew rapidly in the years for 2002 rose by a significant 29 per-cent straight after the 1987 coup since the int- over the previous year. Current projects roduction of the Tax-Free Factory/Tax Free are valued at approximately $100 million Zone (TFF/TFZ) scheme that year. There with those pending at $300 million. the Garment Industry was making signifi- cant impact as an export commodity. Due Industrial Relations to the political and economic crisis, garm- Government introduced the Industrial Asso- ent production has been affected to some ciation Act in 1942 in recognition of the extent.Garment has been one of the major need to regularise the formation and registr- employers in the economy. The export ori- ation of groups of employer and worker ented garment industry was initially heavily organisations. The Fiji Trades Union Cong- reliant on preferential market access to ress is the umbrella body of all affiliated Australia and New Zealand under the original trade unions in the country. The Trade Uni- on Act was enacted in 1964. Its main purpose was to make fresh provisions for the registra- tion and regulations of trade unions. Regist- ration of Trade Unions was made compulsory and a Registrar of Trade Unions was appoin- ted for this purpose. The Registrar was also empowered to reject the application of any trade union if he was satisfied that any other trade union already registered was adequately representative of the whole or of a substantial number of the interests of those seeking registration. Any seven per-

FIJI TODAY 2004 / 2005 TRADE & INVESTMENT 39 sons can form a union and can make an nment with significant moves to improved application for registration to the RTU provi- pay settlements, variability in pay and less ded they meet the provisions of the Trade industrial disputes. Reforms in the labour Union Act. The Trade Union Act makes it market are currently focused on the draft obligatory for a union to give 28 days notice Industrial Relations Bill, which is under of withdrawal of labour if a strike is contem- discussion by employers, unions and Govern- plated in an essential service. The Trade ment with the intention of tabling the Bill Disputes Act 1971 was established to provide in Parliament in 2004. The underlying objec- for the settlement of trade disputes and tive of the Bill is to promote a harmonious the regulation of industrial relations. It sets relationship between employers and work- out procedures for trade disputes which ers. The Bill will align our labour laws and need to be reported to the Ministry of Lab- practices to the Constitution and relevant our for settlement either through concilia- ILO Conventions. Most importantly, the Bill tion or setting up of disputes committee. gives employees the opportunity to seek However, the labour market reforms redress for dismissal. implemented in 1991 as part of Governm- ent’s exported growth policy saw signific- The Tripartite Forum ant changes to Fiji’s industrial relations Government is looking at re-establishing system. There were amendments to the the Tripartite Forum. There is a need how- Trade Unions Act and the Trade Union Regu- ever to have further consultations between lations, the Trade Union (Recognition) Act, Government and the two legs of the forum and the Industrial Associations Act. The before a decision is made. First formed in amendments were made to ensure a balan- 1976, the Tripartite Forum’s purpose was ced conduct of negotiations, trade disputes to ensure that stakeholders reach a common and trade union affairs. The implementation understanding when dealing with issues of the new labour laws has resulted in a which affect the national interest such as more harmonious industrial relations enviro- industrial relations, job creation, greater

FIJI TODAY 2004 / 2005 40 TRADE & INVESTMENT flow of investment and general economic Act, is also central to the labour market and social development of the country. policy. The Occupational, Health and Safety Unit is based in the Ministry of Labour and Labour Relations Industrial Relations. Government supports a labour market that embraces productivity and responds effect- National Productivity Charter ively to change in the business cycle. The Forum endorsed a National Productivity Following the passage of the Constitution Charter which was approved by Government Amendment Act in 1997, the various pieces in October 1995. The charter has at its core of labour legislation (Industrial Association the creation of jobs and human resources Act, Trade Union Act, Trade Union (Reco- development. It is a crucial part of Governm- gnition) Act and Trade Disputes Act), had ent’s strategy for social and economic deve- to be amended. The purpose of the amen- lopment. It also enhances the development dments was to fill in the gap that was crea- of the productivity movement in Fiji. The ted and to make the legislation consistent movement aims to raise the standard of with the new Constitution. The amendments living of the people and create full emplo- have already been passed by Parliament. yment by producing more goods and services The new Constitution safeguards the trade more effectively and at a level of quality union activities and freedom of association. sufficient to meet the expectation of cust- To meet the needs of the modern day labour omers. The charter has provided the guiding market and practice, and the provisions of principles of a new Occupational Health the new Constitution, Government will und- and Safety Legislation. ertake a comprehensive review of existing The Health and Safety at Work Act 1996 labour legislation. came into force from November 1,1997 and A draft Bill is being prepared to conso- many organisations are well advanced in lidate the laws relating to working conditi- their efforts towards the provision and mai- ons, registration of industrial associations ntenance of safe and healthy workplaces. and trade unions, the recognition of trade This legislation, with the exception of mining unions, the settlement of trade disputes and quarrying, is applicable to all of Fiji's and the provisions of public holidays. The workplaces. It establishes a framework to Bill will include provisions relating to equal support improved occupational health and opportunities, minimum wages, redundancy safety through a cooperative and particip- and a system of procedures for handling ative approach by all workplace parties. personal grievances. The Workers Compen- Among other things, it calls for employers sation Act and the Fiji National Training to develop a good understanding of their Council Act are to be reviewed. Government duties under the Act and to implement new will establish a Labour Tribunal and Labour systems and procedures such as work place Court to deal with all labour related matters. safety committees. The legislation also The Tripartite Forum is to be further develo- provides for the establishment of a National ped into a machinery for regular consulta- Occupational Health and Safety Advisory tions between the three social partners on Board, the membership of which is "tripar- the economy. The successful implementa- tite", in that all social partners have tion of the Occupational, Health and Safety representation on the Board.

FIJI TODAY 2004 / 2005 AGRICULTURE

Agriculture remains a major sector of the and farmer groups with 6 to 10 members economy, accounting for 43 per cent of can apply for assistance. Individual farmers Fiji’s foreign exchange earnings. It provi- can apply for a maximum of $1000 each des 50 per cent of the country’s total emp- while farmer groups can apply for a maxi- loyment and contributes 19 per cent to mum of $10,000 per group for basic farm Fiji’s Gross Domestic Product (GDP). implements, agro inputs, land preparation Fiji has a total land area of 1.8 million and establishment of small scale poultry hectares. Only 16 per cent is suitable for units, one sow piggery unit, apiary and farming and are found mainly along coastal agro-based cottage industries. plains, river deltas and valleys of the two main islands of Viti Levu and Vanua Levu. Sugar The rest can be found in the smaller out Sugar has seen an improvement in yields lying islands of the group. Of the arable through effective use of fertilisers and land, 24 per cent are under sugar cane, cane quality, together with favourable 23 per cent coconut and the remaining 53 weather and increased investment has per cent under other crops. About 83 per collectively contributed to the annual rise cent of the land in Fiji is owned by the in output of cane and sugar. The industry indigenous people. And through the Land is mainly centred around the cane growing lord and Tenants Act (ALTA), the Indian areas of Ba, Lautoka, Sigatoka, Nadi, farmers have had the privilege to farm on Tavua, Rakiraki, Labasa and Seaqaqa. Sugar arable Fijian land through long term leases. is processed by the Fiji Sugar Corporation Government has introduced two schem- which is fully owned by government. There es which are in progress to date: Farming are four mills located at Lautoka, Ba, Assistance Scheme (FAS) and the Rural Rakiraki and Labasa. Sugar production in Farmer Assistance (RAF) programme. FAS 2000 was 336,000 tonnes. Production for was implemented to resettle farmers whose 2001 was 318,000 tonnes. This decline of lease under the Agricultural Landlord and 5.4 per cent is due to the uncertainty of Tenants Act (ALTA) had expired and also ALTA land leases, the low and declining assist replacement landowner farmers to farm yield as well as inefficient transport start farming. Under the RAF individual and milling sectors. Sugar production for

FIJI TODAY 2004 / 2005 42 AGRICULTURE

2002 is expected to decline to around to a greater or lesser extent upon coconuts 302,000 tonnes or 5.2 percent below the as a source of cash income. Coconuts are 2001 level. For the 21 years ending 2001, grown throughout Fiji and according to a total of $1.5 billion was received in sugar the 1991 agricultural census, Fiji has 65,000 receipts. Of this amount about 70 per cent ha of coconuts compared with 95,000 ha or $1.058 billion was paid to cane farmers of sugar cane. The lucrative price of copra, and the Fiji Sugar Corporation retained which ranged from $570-$700 encouraged the balance of 30 per cent or $0.453 billion. farmers to supply as much copra as possible From its share , FSC has reinvested $0.267 to the buyers. A total of 15,697 mt of billion or 59 per cent in capital works for copra was produced in 1999. This was the purpose of upgrading its milling effici- almost 100 per cent more than the 1998 ency. On sugar marketing overseas, the production. The Taveuni Coconut Centre ultimate guarantee for access to markets has been able to provide selected hybrid and for remunerative prices depends upon seed nuts. These hybrid nuts have double the quality of our sugar and reliability as the yield of traditional variety. Under the a regular supplier. current coconut rehabilitation programme, For Fiji and other ACP suppliers, the it is targeted that the industry is to produce attractiveness of the Lome Convention 25,000 tonnes of copra. There are 65,000 Sugar Protocal is the very high prices Fiji ha of coconut trees with approximately 6 gets for sugar. The current international million trees. The Northern and Eastern free market price for sugar is 5.6 cents a Divisions have remained the major copra pound. The Lome Sugar Protocol price is producing areas although small quantities about 23 cents a pound. The 175,000 tonnes of copra have been produced on the of sugar Fiji sells to the European Union coastal areas of Viti Levu. as the regular quota under the Sugar Protocol comprises around 43 per cent of Cocoa the total sugar exports. The general Cocoa has been a less emphasised commo- indications from the European Commission dity over the years because of its unattrac- is that the special subsidized Lome sugar tive market price. A total of 172.1 ml of prices will last another 15 to 20 years. The cocoa beans were exported in 1998. Poor country will take full advantage also of production of cocoa is directly attributed special markets like the United States to a number of factors including high (which is currently paying 22 cents a pound) production and processing costs, high and will seek to renew the special sugar incidence of black pod disease and fluctua- contracts the country used to have with ting weather conditions which affect the Malaysia, New Zealand and the People's flowering of trees. Most farmers are aband- Republic of China. oning their crop and turning to lucrative alternatives due to high costs of cocoa Copra and Coconut Oil production. However, efforts to rehabili- The Coconut Industry is worth more than tate major cocoa nucleus projects are $20 million. Around 40,000 households rely currently underway in the Northern Division

FIJI TODAY 2004 / 2005 AGRICULTURE 43 which should see increase in production. uous fall in price, yaqona production incre- The major importers of cocoa were Germ- ased by 0.4 per cent from 3202.6 mt in any, Australia, Western Samoa and the 1998 to 3216.5 mt in 1999. The kava trade United States. restrictions by the European Union coun- tries and the United States of America is Ginger having some adverse results. It has resulted Ginger has proved to be the most successful in hardship for kava growers and the threat diversification crop to date. It has emerged of a reduction in the retail price as produc- as a major growth industry and a strong tion continues without an export outlet. contributor to the national drive for increa- Dalo exports for the year increased by 9 sed exports. It also represents a vehicle percent from 7392 tonne in 1998 to 8058 for increasing Fijian participation in the tonnes. Concerted efforts by the Ministry economy. It has a high labour absorp- tion capacity and contributes signif- icantly to value added output. In recent times ginger production has declined due to pests and diseases such as nematodes and bacterial wilt. Additionally the lack of good planting material is constraining the cultivation of good ginger crop. Prolonged wet weather early in the year affected planting. Produc- tion of immature ginger increased by 10 percent (1465 m/tonnes) whilst mature ginger production decreased by 47 percent (1143 m/tonnes) over 1998. Ginger farming is mostly concentrated in the central, western and the northern divisions. The recently set up Ginger Council is an exa- mple of private sector involvement where all matters relating to ginger production right up to marketing can be capably handled by the Council.

Yagona & Dalo Root crops and Kava have become a major export earner for the country. Potentially lucrative export opportunities exist for exports of root crops and kava provided that continuity of supply and quality are vigorously maintained. Despite the contin-

FIJI TODAY 2004 / 2005 44 AGRICULTURE

of Agriculture resulted in more farmers Fruits and Vegetables growing dalo under the Flatland Develop- Although the promotion of fruits and vege- ment Programme. Farmers have been tables over the years has not recently assisted with planting materials, agro- attracted much private sector attention, chemicals and tractor for land preparation. there is however potential for their export. Fruits such as mango, pawpaw and pinea- Rice pple are currently grown by the Tailevu A total of 7022.6 hectares of rice was plan- Development Company in Nadi for the fre- ted during 1997-1998 . The total rice paddy sh fruit market particularly in New Zealand production for 1998 totalled 5192.2 m/ and Japan. tonnes. The production of rice locally has In fruit processing the involvement of been described as disappointing particularly SIAS-MPA with South Pacific Foods for the that of irrigated rice in Viti Levu where production of banana, mango and guava much of Government investment has been purees has been a success with exports of made. The Northern Division accounts for 1,000 tonnes of frozen product valued at 70 per cent of total national rice produc- $1 million, to markets in Europe, Australia tion. On the other hand non-irrigated or and New Zealand. subsistence rice which accounts for 90 per Tropical fruits under the CDF programme cent of total production remains viable. were mainly confined to the Western The Government's own rice milling com- Division. The three main crops in this pany, Rewa Rice Limited, has also suffered programme were Pawpaw, Mango and as a result of the decline in the industry, Pineapples. Farmers were given assistance to the extent that the company is in receiv- in terms of planting materials and agro- ership. Government is looking at ways to inputs. Around 184.99 m/tonnes of paw- revive Rewa Rice. The company will play paw, 26.82 m/tonnes of mango and 27.55 a crucial role in providing facilities for the m/tonnes of pineapple were exported in milling of local paddy. A task force headed 1999. On vegetables, Fiji has been able to by the Department of Public Enterprises supply temperate vegetables during New has been established to draw up a business Zealand off- season. Export opportunities plan for Rewa Rice. to Canada are also promising following the

FIJI TODAY 2004 / 2005 AGRICULTURE 45 recent relaxation of the transhipment of except bulk butter and powdered milk Fiji’s fresh produce through Hawaii. The products have been lifted and full dere- recent establishment of an industry owned gulation enforced. and operated Hot Force Air Treatment [HFAT] quarantine treatment facility at Sheep Nadi Airport certainly boosted further The local sheep industry comprised 206 exports in fresh fruits and vegetables. private farms with a total stock number of 4,712. This was an increase of 18 percent Dairy in farm numbers and 38 per cent in total In 2003 the local dairy industry suffered a stock. A total of 40.7 tonnes were produced setback due to prolonged weather. Milk locally in 1999 and increase of 36 per cent supply to Rewa Cooperative Dairy Company over 1998. However, the demand for mut- (RCDC) decreased from 12.97 million litres ton exceeded the local supply. The import to 11. 2 million litres or 536 tonnes Milk of fresh carcass escalated to 11,362 tonnes, Fat Equivalent (TMFE) to 463 (TMFE), a a difference of 3,128 tonnes or 38 per cent decrease of 13.6 percent milk. Substantial compared to 1998. The sheep unit contin- amounts of dairy products were imported ued to provide training and disease invest- from Australia and New Zealand during igation services to farmers. Fifty percent the year. With the exception of butter, of sheep farmers were in the Western all dairy products showed a rise totalling Division while others were spread in other to 4.6 percent over 1998. During 1999, areas around the country. there were 31 bulk milk suppliers. Collec- tively they supplied 80 per cent of all the Fisheries milk supplied to RCDC. Around 152 farmers The fisheries sector is currently the fourth supplied the remaining 20 per cent through largest export industry. Fiji’s marine reso- the Chilling Centres. The 19 town milk urce sector meanwhile currently cont- suppliers delivered 62.4 million litres of ributes 20 per cent to total agricultural milk to the greater Suva Areas and the production and while accounting for 1.5 West. The industry is now increasing its per cent of GDP, has considerable potential concentration on milk production. Import for expansion. The sector boasts a diverse licensing requirements for all dairy products range of resources from fin-fish products

FIJI TODAY 2004 / 2005 46 AGRICULTURE such as yellow fin, big eye, albacore and including that of the Mariculture Project skip-jack tuna export species to prawn, and the Fisheries Resource Inventory Proj- seaweed, giant clam and tilapia farming ect. Coastal Fisheries Development has which are cultured at a semi - commercial also been ear-marked including the estab- and subsistence level. lishment of ice plants in coastal areas and The fishing sector is expected to grow the subject of aquaculture. Fisheries has around 1.7 - 2.5 per cent in the medium contributed to the national programme by term given the provision of expanding the organising markets for marine products to Tuna Industry with particular emphasis on move closer to production sites. This makes the Pacific Fishing Corporation’s (PAFCO) it easier and cheaper for rural dwellers to expansion proposal and the provision of sell their products. Ascertaining a reliable appropriate and cost-effective fishing equ- source of income will guarantee an impro- ipment. Great scope for expansion exists vement in living standards. On decentralisa- in tuna exports to the high quality sashimi tion, the most common feature of these market in Japan and the U.S. The artisanal fisheries development is that they have a fishery comprises of small - scale comm- wide geographical spread, and would be ercial fisherman who supply the domestic undertaken where resources are abundant. market and export their surplus catch. According to the Bureau of Statistics, the Government being fully aware of the current employment level in this sector is potential that exists in terms of exports about 22,000. It is estimated that a further as well as coastal and aquaculture fisheries 20,000 is likely to be employed through development in rural areas, agreed in the development programmes in the 2003 to a combination of institutional and fisheries sector. development support. These incl- On foreign exchange, all identified com ude a feasibility study on the modities in this sector have potential exp- establishment of a National ort markets. Based on the current level of Fishing Corporation, production, seaweed alone can contribute intensive research $200 million by the year 2002. The whole fisheries sub - sector, if continued to be encouraged and supported should be earn- ing well over $1 billion by this year. The

FIJI TODAY 2004 / 2005 AGRICULTURE 47 export of canned tuna has made a signifi- such rights. The right conferred will not cant contribution to Fiji’s foreign exchange grant exclusive possession to such traditio- earnings during the last few years. Since nal owners since it will not grant exclusive 1987 export has more than doubled with possession to such traditional owners since the industry expanding significantly. it will both interfere with the right of pub- In 1989 a can manufacturing plant oper- lic access or the right to innocent free pas- ated by the Pacific Packaging Ltd was ope- sage recognised under international law. ned at Levuka, site of Fiji’s tuna industry. The definition of the nature of this legal The majority government owned Pacific right will bring to an end the aspirations Fishing Company (PAFCO) entered into a and expectations of Fijians and Rotumans joint venture with investors from Thailand, in relation to such rights over their custom- Taiwan and Australia to form Pacific Packa- ary fishing grounds as promised to them ging. PAFCO has contributed to economic by the Crown back in 1881. growth in Fiji. Fiji’s other main fishery export commo- Forestry dity is trochus shell and trochus shell but- The forestry sector contributes on average ton. Whilst Fiji’s reefs and lagoons are ge- of about 1 percent to GDP and ranks as nerally fished at levels which are, overall, fifth most important export commodity much below the level of optimum sustain- after sugar, garments, gold and fish. Earni- able yield for the ecosystem, concerns ab- ngs from forestry products are greatly infl- out localised overfishing prompted several uenced by the price of exports, production customary fishing rights areas (qoliqoli) to and weather patterns. Given the appropri- restrict the use of gill nets and limit the ate means and opportunities, the forest numbers of commercial fishermen in these industries can support fisheries and agricul- qoliqoli. Domestic fish prices have stabilised tural sectors in boosting foreign exchange and individual fishermen are currently enj- earnings. A resumption in strong growth oying the increased costs and limitation is forecast for the forestry sector (10.0%) on fishing. Fresh sashimi tuna which is also in 2002 with the expected continual incre- exported, contributed to a large extent ase in logging activity and the strengthening to the growth of the fishing industry in the of the Fiji Pine Limited Extension Services. last 8 years. Foreign investors are coming The outlook for the forestry sector is into this industry and the government is very positive with strong growth expected encouraging local investors to be involved in harvest in 2003 and 2004 due to the in this enterprising business so as to stop commencement in harvest of mahogany the dollar slipping out of the country. plantations. Cabinet has given the go ahead for the Fiji’s forest cover is approximately 935, drafting of appropriate legislation regarding 000 hectares, in relation to a total land the customary fishing rights. The decision mass of 1.8 million hectares and almost on customary fishing rights legisltion relates all forest is on communally owned native to the conferment of proprietary ownership land with 27,570 hectares on private free- of foreshore land within customary fishing hold, 10,270 hectares on government land. rights areas to the traditional owners of This sector has played, and will continue

FIJI TODAY 2004 / 2005 48 AGRICULTURE to play a vital role towards the develop- eign exchange earnings. Government has ment of the national economy. The Forestry also introduced a policy framework on the Department's policies and strategies are commercial development of Fiji’s Mahogany driven towards the sustainable managem- Forest Resources. A set of of basic guideli- ent of forest resources for the benefit of nes has been approved to provide the over- the rural community in particular the land all policy framework for government in owners. the commercial utilization of mahogany High priority will be given to eco-tourism forests. The central objective of governm- and other micro - development in villages, ent’s mahogany policy is to maximize the districts and provinces. The Ministry's policy benefits to Fiji and within that, to optimize is to ensure that this sector becomes more the participation of Fijian landowners in dynamic by expanding its focus to include order to secure for them and their future the depressed economies of the provinces, generations, fair and equitable returns and to contribute to the national economy. and benefits from the government mahog- The policy includes the development of any plantations on their land. This objective hardwood plantation, indigenous logging also recognizes that the bulk of Fiji’s maho- industry and also to foster the development gany forests is on Fijian owned land leases of the use of wood by-product. Almost five by government and that these plantations decades ago, substantial investments in have been developed by government with the industrial plantations nationwide have public funds. been sustaining our forest development. These plantations are therefore, owned The country has been self - sufficient with by the all people of Fiji and Government the surplus being exported. will ensure that maximum returns will be The pine plantations including pine sche- shared fairly between the Fijian landowners mes have an estimated area of 43,700 hec- and the people of Fiji, as a whole. Govern- tares. Under the Fiji Pine Limited, these ment will use Fiji Hardwood Corporation plantations have been supporting our local Limited (FHCL) as a vehicle through which timber consumption with surplus exported they will develop the mahogany industry. as wood chips. Government holds 99.8 per FHCL will be developed into a joint venture cent of shares in FPL, valued at $16 million company between government, the people while the remaining 0.2 percent are held of Fiji and the mahogany forest landowners. by the Fiji Pine Trust on behalf of the land- The landowners will be represented throu- owners. There are 42,000 hectares of pine gh the Fiji Mahogany Trust (FMT) FCHL will forests in the country - 28,000ha on Viti be directly involved in the harvest and Levu and 14,000ha on Vanua Levu. These sale of mahogany logs, however the comme forests are projected to supply 300,000 rcial downstream processing of mahogany, tonnes of pinewood annually for the next including local value adding, marketing ten years. and export will be undertaken through Under Fiji Hardwood Corporation Limit- various joint venture companies, separate ed (FHCL), the maturing of hardwood plant- from FHCL. FHCL will participate either ations will provide high value decorative directly or through subsidiaries in these timber which will generate substantial for- joint venture processing companies.

FIJI TODAY 2004 / 2005 TOURISM

Tourism is Fiji’s fastest growing industry A number of large hotel projects are in terms of employment creation and expected to commence in 2004, including increased foreign exchange earnings. It the Momi Bay Marriot Hotel, Air Pacific has also become Fiji’s largest gross foreign Novotel at Denarau and the development exchange earner. The industry provides of the Grand Pacific Hotel. The ‘back- employment directly and indirectly to an packer’ market has expanded by leaps and estimated 45,000 people. The tourism bounds offering lucrative bussiness to industry, which is mainly private sector operators and the local communities driven, contributes approximately 25 per cent to the GDP. Fiji Visitors Bureau In 2003, a record 430,800 visitors visited While the Tourism Ministry is responsible the country. An increase of 14,000 is for overseeing the overall development of expected in 2004 with the industry the sector, the Fiji Visitors Bureau is targetting 500,000 visitors and a billion responsible for the promotion and dollars business by 2007. This focus of Fiji’s marketing activities. The Fiji Visitors tourism industry is directed at consolidating Bureau markets Fiji’s richness and diversity, mainstream tourism and promoting and its uniqueness. Government has sustainable eco - tourism development. decided to redefine the role of the FVB Efforts are also being directed at increasing with more effective overseas marketing the participation of resource owners in and its recent strategic location to Nadi - the industry. Eco -tourism promotes the the hub of the visitor industry. conservation of Fiji’s biodiversity, Air Pacific is making every positive effort indigenous Fijian culture and tradition, and reducing dependency on overseas and the natural environment. Tourism carriers who may not have national interest earnings for 2002 has been rebased using at heart. Fiji is served by five regional the 2002 IVS per diem expenditure and airlines - Air Caledonie International, Air now stands at $567.6 million. This Nauru, Polynesian Airline, Solomon Air and represents an increase of $72.1 million or Marshall Island Airline and three 14.6 percent over gross earnings of $495.5 international airlines - Air New Zeal- million for 2001. and, Qantas and Air Pacific. With the

FIJI TODAY 2004 / 2005 50 TOURISM growth in the tourist industry, Fiji has great tourism experiences, whilst developed a major duty free shopping safeguarding the welfare of the future industry. Few products available at reduced generations. There are several established prices are electrical and sports equipment, attractions of this kind which have succee- perfumes and cosmetics, jewellery, ded in tapping the tourism market. cameras and radios. Duty free shopping The Garden of the Sleeping Giant at outlets can be found in cities, towns, Nadi offers tourists as an opportunity to hotels and Nadi International Airport. see some of Fiji’s natural heritage and the For 2004, Government set aside $13 Coral Coast Railway takes people on sugar million as a marketing grant to the Fiji tram lines to a picturesque beach in Visitors Bureau. Nadroga.The Rain-tree lodge in Colo-i-Suva offers the eco-experience in a rainf- Ecotourism orest near Suva. Government has already Another interesting aspect of the tourist undertaken a number of other ecotourism industry exhibiting great potential for initiatives which has the potential to profitable business enterprise is secondary diversify and enrich the industry in a new tourism initiatives, or ecotourism. direction and encourage active part- Ecotourism has emerged as an exciting icipation of Fijians in the industry’s complement to mainstream tourism. economic stream. The Bouma Falls and Ecotourism is to be seen as an amalgam the Lavena Walk in Taveuni are already of the whole range of criteria with the open to tourists and the Tongan Hill Fort ultimate outcome for the guests being in Tavuni in Sigatoka.

FIJI TODAY 2004 / 2005 HEALTH, SOCIAL WELFARE & LIVING STANDARDS

Fiji generally has a good standard of health the improving of health care facilities, and compares well with other Pacific island staffing, availabilty of medicine, reintro- nations. The country's health status meets duction of mobile clinics, management of or exceeds most of the World Health HIV/AIDS, diabetes and hypertension and Organisation's goals for the Year 2000. Such decrease patient waiting times at clinics. a status is due to improved health standards, There are 409 village clinics, 100 nursing sound comprehensive health care prog- stations, 74 health centres, 3 area hospitals, rammes and the untiring effort of the 3 nursing homes, 16 sub divisional medical Ministry of Health in promoting healthy centres, 3 divisional hospitals and 3 specia- living for people. The government's focus lity hospitals with TB, leprosy and medical for health lies in preventative care and rehabilitation units at Tamavua Hospital customer focus rather than service cente- and St. Giles Mental Hospital in the country. red. However, at the same time, there is Many of the buildings date back to the old recognition of curative health care needs colonial days but a comprehensive progra- that support the preventative focus. People mme of upgrading rural subdivision health are living longer with life expectancy at facilities has been a priority project of 61.4 years for males and 65.2 years for Government's short and medium term plans. females. Infant mortality has fallen by 62 The area hospitals increased to seven in per cent in the past 20 years and is now at 2002 from three because, four new hospitals about 16.3 deaths per 1000 live births. Good were opened in Nadi, Vunidawa, Taveuni obstetrical services contribute to the lower and Levuka. A comprehensive patient infor- infant death rate with about 95 per cent mation system (PATIS) was introduced by of births being attended to by trained the Ministry of Health in 2002. medical personnel. The PATIS system registers individuals Fewer children are experiencing vaccine on a computer system who have an occasion preventable deaths with no cases of polio, of service at a hospital, health centre or diphtheria, pertussis and tetnus being nursing station. PATIS will enable the reported in the past several years. The Fiji Ministry of Health to evaluate the use of Nation Plan for the Millenium (2001) outlines health services by the population, to a series of priorities for the health sector consider how the geographic location of during the next five years. This includes the population may impact on the need for

FIJI TODAY 2004 / 2005 52 HEALTH, SOCIAL WELFARE & LIVING STANDARDS health services, to evaluate the effect of that arise from poor disease management. socio- economic factors of the population Government continues to provide the bulk and the need for health services, to comm- of the health services both in curative and ence working the introduction of national public health through its national health service weights for surgical procedures, service system. Increasing demand for to track patient flows from one health services has led to an expansion in the service to another and between divisions number of private general practitioners and and to monitor the use of health services specialists practising in Fiji under the Fiji by tourists. Medical Council. Government is commit- The doctor population ratio as projected ted to providing a health system that is in 1992 is around 1:2448. For the nursing accessible, appropriate, affordable, respon- division, there is a total of 2472 registered sive, equitable and of high quality. nurses practising in the country providing The working conditions of health nursing services in hospitals, health centres professionals i.e. doctors, nurses, param- and nursing stations. Using the 1996 popula- edical and allied health personnel and other tion figure, the nurse: population ratio is health workers will be reviewed. The about 1:312. The top five causes of death immediate priority of the government is are related to circulatory conditions, endc- aimed at reducing long queues, reducing rine, disorders like diabetes, cancers, respir- long waiting and turn around times and to atory problems and injuries. The main cause, facilitate patient flow. The Ministry of circulatory diseases has increased by 14 Health has built and upgraded new health percent in the past 20 years and was respo- facilities: Taveuni Community Health nsible for about 4,696 hospital admissions Project, the New Paediatric Unit at the in 1996. CWM Hospital, Levuka Hospital, Nadi Motor vehicle accidents have become an Hospital, Naitasiri Hospital, Baulevu Nursing increasingly important concern with road Station, Fulaga and Moce Nursing Stations, accidents costing the country about $20 Visogo Nursing Station, Wainikoro Health million per year. Over the 5 year period, Center, Vuna Health Center, a new Health there has been significant decrease in the Centre at Wainibokasi and a new Vector total number of road accidents. While Control Unit and Virological Laboratory at infectious diseases used to claim a majority Tamavua. A private hospital has been of lives, it no longer does so due to the opened in Suva. It is a joint venture between vigorous immunisation programme and imp- the local and foreign investors. This hospital roved living conditions. Diabetes however is geared to cater for medical services continues to be a devastating, disease, similar to other hospitals throughout the Estimates reveal that 1 in every 8 people country. The Ministry of Health has opened are affected in some way by this disease. four new hospitals in Levuka, Nadi, Health education and promotion efforts Vunidawa, Naitasiri and in Taveuni. in schools, community groups and national With an allocation of $121.2million in 2004, campaigns are targeting children and adults an increase of $4.7 million, the Health to prevent the development of the disease Ministry’s major activities include and to reduce the number of complications • $2.7 million to upgrade rural health

FIJI TODAY 2004 / 2005 HEALTH, SOCIAL WELFARE & LIVING STANDARDS 53

facilities government to encourage the public to • $1.8 million for preventative health adopt better and healthier eating habits. programmes. • $1.2 million for biomedical equipment Curative Health Services • $300,000 to HIV/AIDS prevention The government continues to push for improved curative services. The focus has Primary Health Care Services been on the quality of treatment provided, Primary health care involves the provision staffing, upgrading of existing facilities and of primary medical treatment, preventive the provision of equipment and technologies medicine and health education. About 95 to meet current demands. There are a total per cent of primary medical care is provided of 307 doctors in the public service providing by doctors in government hospitals, health inpatient and ambulatory care. centres and nursing stations throughout the country. They are complemented by general Private Sector Participation practitioners in private practice in most These services are offered mainly in the urban centres. The hospitals, health centres urban areas where most of the practitioners and nursing stations provide outpatient gain the family physician status. The private medical treatment, antenatal and postnatal hospital system is also emerging as an care, family planning and development and alternative means of medical care provision screening of children. Divisional hospitals in Fiji. Government continues to acknow- provide screening for cancer of the breast and cervix, immunisation, clinical laboratory facilities, health education and dental care. Psych- iatric care is provided in a separ- ate institution. All school chil- dren are medically examined at regular intervals by school health teams. Health educa- tion activities and training are important ongoing prog- rammes for the sector. The public are encouraged to adopt healthy lifestyles to ensure their well being and to learn proper use of health services through media, publications, audio visuals and counselling. Nutrition, a major determinant of health, is being addressed by the Food and Nutrition Commi- ttee which was established by

FIJI TODAY 2004 / 2005 54 HEALTH, SOCIAL WELFARE & LIVING STANDARDS ledge and encourage the private sector supportive services to orphans, abandoned which supplement the efforts of the Ministry and neglected children through foster care of Health. A new private hospital run by and adoption as well as providing residential the Colonial Group has been established in care facilities for children in need of the capital Suva and offers state of the art substitute care. medical equipment and highly trained staff. Rehabilitation Services Social Welfare Government policy is to rehabilitate and The Social Welfare Department provided retrain offenders, develop preventative by Government has been strengthened to measures and emphasise vocational and ensure that those most affected are in fact skills training for young persons to enhance receiving support. Assistance to the offenders ability to rejoin society as produc- vulnerable and disadvantaged will continue tive members of the society. The community to be provided through schemes like Family is being encouraged to become self-reliant Assistance, Poverty Alleviation, Protection and develop preventative measures to for Children and Family Welfare. The Family reduce juvenile delinquency and criminal Assistance Scheme involves the provision behaviour. Government provides legal of monthly vouchers between the ranges services to those who cannot afford legal of $30 and $100. Families who depend on representation by private solicitors in the Family Assistance Scheme to meet their matters of civil nature. basic needs have steadily increased over the years and are now close to 20,000. The Poverty Scheme will be reviewed to improve cove- Government has put poverty eradication rage, delivery of service and its effective- and rural development at the top of its ness. The Poverty Alleviation Project agenda. Government is working to eradicate includes projects implemented by NGOs on poverty in Fiji through the provision of both behalf of Government to assist the needy. immediate relief and long term sustainable The Care and Protection Allowance mean- measures. The UNDP/Government poverty while has been introduced primarily in study revealed that about every fourth response to the increase in the number of household is struggling below the poverty children and young people at risk through line. The poor are the most vulnerable. In poverty. A monthly cash grant is provided economic terms this was a major concern to caregivers of children placed under the to government who since independence has protection of the Director of Social Welfare. generally conceived poverty in absolute The After Care Fund meanwhile has been terms. In order to improve the living instrumental in assisting the aged, the standards of the poor, the government has widows, the chronically ill, the disabled, set up a Poverty Fund. Creating jobs and the deserted wives and the dependants of self employment will continue to be the prisoners. The allowance paid ranges from most viable way of dealing with the problem a minimum of $12 to $60 per month. of poverty. Recipients also receive free education. The Government also works more closely with government also offers protective and NGOs and other relevant agencies to

FIJI TODAY 2004 / 2005 55 HEALTH, SOCIAL WELFARE & LIVING STANDARDS examine ways in which it can assist the However, the current percentage of poor. A total of $157 million was allocated households living in poverty is said to be last year for poverty alleviation and rural much higher due mainly to the effects of development. Some allocations for poverty the political and economic instabilities of alleviation include $11 million for the Family May 2000. Government’s goal is to reduce Assistance Scheme, $2 million for poverty poverty by 5 per cent annually. Government alleviation projects, $1 million to HART to has announced a $50 million commitment provide cheap and affordable shelter for to alleviate poverty. The money will be the destitute and $1 million for the National used to form a new Department of Poverty Micro-finance Scheme. The new Department Alleviation to curb increasing poverty trends. of Social Welfare and Poverty Alleviation The announcement comes as the latest established in 2001 provides assistance to poverty survey shows that the total number the disadvantaged through its various of people living below the poverty line has schemes. increased by 25 percen The department The Ministry of Education allows waivers will have an annual budget which will solely of school fees for children whose family go towards strengthening and coordinating jointly earns less than $5000 per year if all anti-poverty efforts. Some of the other they are on the family assistance scheme. poverty alleviation initiatives so far in 2003 NGOs provide the bulk of the welfare for the building of homes for the homeless assistance in Fiji, generally through non- as well as for income generating projects, cash donations. Despite the fact that some creating jobs 3770 direct jobs have been 70 percent of the total population live in created through the Integrated Human the rural areas, Fiji enjoys a relatively high Resource Development Programme (HRDP) standard of living. Most of the rural areas and organised training for more than 8000 are accessible by road, they have radio people, social welfare assistance for those telephones, electricity and proper water who can’t help themselves. $12 million supplies. Most urban homes have television allocated in 2004 and helping some 20,000 and video sets. Some 70,000 sets are families receiving Family Assistance available in Fiji homes. The alleviation of Allowance. Upgrading poverty and the development of rural and of squatter settlements and housing outer islands are critical for stability and programmes include: economic growth. • $5 million for upgrading squatter settlem- Government has recognised that stability ents and developing Jittu Estate. and economic growth can be achieved best • 1000 families to benefit from a housing by improving the livelihoods in rural and programme. outer island and those of the poorest of the • $1 million to the Housing Assistance and poor in society. To effectively achieve this Relief Trust (HART) to provide cheap and goal, Government will be implementing affordable shelter to the destitutes. major initiatives to alleviate poverty and • $1 million allocated to the Public Rental develop the rural and outer island sector. Board to benefit 793 families. The 1966 UNDP Poverty Report found that • $2 million to the Housing Authority to 25 % of households were living in poverty. subsidise interest rates for all those

FIJI TODAY 2004 / 2005 56 HEALTH, SOCIAL WELFARE & LIVING STANDARDS

earning less than $6,500 per annum and of job, old age and other economic factors. promote home ownership to the poor Government through the Housing Authority and elderly through financial assistance. (HA) caters for the needs of people earning • Farming Assistance where so far 1303 between $3.700 - $16,500 per annum. Since farmers have been assisted under a $14 1993, there have been plans by HA to build million scheme. a variety of homes with prices that are affordable to clients. The Housing Authority Housing has introduced village housing loans through Housing is characterised by a diverse quality their existing system. Government’s policy of houses in the rural and urban areas. It of providing affordable housing for low to is mainly a private responsibility, but in middle income earners is auctioned through recognition of the status of housing as a the Housing Authority. Its strategy can be basic need, the government has tried to seen in several specific and designed ensure that affordable housing of reasonable initiatives such as the reduction of interest quality is widely available. The Housing rates under the Authority’s “Moving On” Authority and the Public Rental Board are package which has so far benefitted more the two government housing institutions than 20,000 home buyers. Other initiatives that play pivotal roles in the provision of in 2001 -2002 includes the review of tenancy low income housing. A housing needs conditions at Matavolivoli, Tavakubu and assessment was undertaken in 1989 and it Muanikoso and a loan gurantee of $19 million was estimated that for moderate population to the Authority by Government so as to growth, the requirement for new housing support its core activities. The Government's would increase by approximately 60 per aim in housing is to make home ownership cent from 1991 to 2006, this is, from 4,360 affordable to as many people as possible, units in 1991 to 6,960 units in 2006. The especially those in the low income group. Ministry has made a provision of a $3 million Government's assistance will include: the grant to Housing Authority for the payment resettlement of squatter on permanent of interest subsidy and financial assistance sites at affordable price; bringing down the to support home ownership for existing Housing Authority interest rates now run- debtors who are unable to pay for reasons ning at 11 per cent, to a ceiling of 6 per of poverty arising from unemployment, loss cent of those on low incomes; removal of

FIJI TODAY 2004 / 2005 57 HEALTH, SOCIAL WELFARE & LIVING STANDARDS the 10 per cent VAT on first home purchase earmarked to be built on these sites to and workers who lose their jobs and are meet the growing demand for HART homes. unable to repay their Housing Authority Major resettlement programmes involve loans will be assisted through a freeze on 400 families living in Wailea Street and their repayment up to a maximum period Nanuku Street, Vatuwaqa. A large popula- of six months. This is to allow them to tion of that settlement will be resettled in secure a new source of income. Housing Wainibuka, Nasinu. In fact, the resettlement Authority under its Capital Development programme for the squatters had been an Programme is working on new sub -divisions on- going process over the past five years that are to accommodate the increasing and the government has resettled around demands for houses. The new areas include, 1,000 families in Narere, Caubati North and Rara Sub -division in Labasa, Waqadra in South areas. More than 200 families in the Nadi that will accommodate 1,000 lots, Western Division and over 100 families in Waila in Nausori to accommodate 350 lots Labasa have also been re-settled. Some of and engineering work at Field 40 Lautoka. HARTS achievements for last year included The Public Rentals Board (PRB) was created the installation of electricity supply to about to takeover and to manage the rental 298 flats in HART homes in/around Suva section of the HA and to provide econom- and Nausori., the general maintenance and ically sustainable rental housing for low to upgrading of HART homes at Delainasole, middle wage urban families with a view to Nadera and Namosau in Ba worth $95,000. ultimately selling whole or portion of those Also included are the construction of nine estates. As a policy directive,PRB was to new flats in the Newtown-Nasinu area worth sell between 40- 6 per cent of its rental $106,203, the purchase of eight acres of flats. In order to assist these tenants, the land for construction for new homes at Government in 1993 undertook to provide Wainibuka in Nasinu worth $100,000 and rental subsidy to PRB. Government has the construction of 20 new flats at Rara recently made a provision of $694,000 for Subdivision worth $80,000. There have been PRB, which was an increase from the several achievements of the Squatter Devel- previous allocation of $360,000. Around 607 opment Programme under the Ministry of tenants or 34 percent are recipients of this Local Government, Housing, Squatter Settle- assistance. ment and Environment. In Jittu Estate, $470,000 has been utilised. $70 families Home for the Poor will be resettled in this project. In Lakena Government is also assisting Housing Assista- 150 families will benefit from this project. nce and Relief Trust (HART) to provide At Vunidogo settlement in Makoi, the sub shelter for the poor, particularly those who -division will have nine commercial lots, are destitute or semi-destitute. A Capital 17 housing lots, market, taxi - stand, car grant is provided annually to HART. HART park and a major portion will be allocated purchased 8 acres of land in Wainibuka in for the Health Centre. In the Caubati area, October 2001 and 10 lots ar Rara - Sub- foot -path and drainage work have begun division in Labasa with funding assistance where 30 residents will benefit from. In from Government. New villages were Navutu, Lautoka, engineering design work

FIJI TODAY 2004 / 2005 58 HEALTH, SOCIAL WELFARE & LIVING STANDARDS is continuing and also programmes and is believed to have been greater for females works have been going on in Bangladesh in (about 31,400 than for males (about Nakasi, Clocott Streetin Ba, Omkar and 29,000). Government’s policy is to enhance Valebasoga in Labasa. that contribution by further encouraging the participation of women in ‘mainstream’ Food and Labour Force economic activities and by improving Food is good and plentiful. As a rural based women’s access to services which will society people largely depend on land and increase their productivity. In the private marine resources for their livelihood. sector this will be facilitated by ensuring Agriculture contributes about 24% of GDP non-discriminatory access to finance for and provides 50 per cent of total employ- small business. Workers are unionised and ment. The growth in paid employment has most of the unions are affiliated to the Fiji been achieved mainly through the private Trades Union Congress. Wages and sector rather than public sector employ- conditions of employment are subject to ment. This reflects government policies to voluntary conciliation and if necessary by encourage exports and promote private compulsory arbitration. By law, men and sector investment, particularly employment women have equal opportunities for emplo- in intensive industries. The participation yment. It is estimated that the total labour of women in economic activity beyond the force grew at an average annual rate of household has grown significantly since the 2.3 per cent over 1986- 1996. This is consid- mid-1970s. The rising labour force particip- erably greater than the population growth ation rate (LFPR) for women and generally rate over the period of 0.8 per cent per stable rates for males, as estimated by the annum and is due mainly to the increasing Ministry of National Planning, have resulted rate of labour force participation by women. in the net increase in the labour The main objective of Fiji’s immigration force between 1986 and 1996 policies is to encourage the entry of people

FIJI TODAY 2004 / 2005 HEALTH, SOCIAL WELFARE & LIVING STANDARDS 59 who can contribute their skills and & Sewerage section from within. Govern- experience to production, while at the same ment also assists rural communities in time protecting employment opportunities developing water supplies through the rural for those already in the work force. self help scheme, where communities provide one third of the cost of materials Water and free labour, or where boreholes are Water is one of the nation’s most important sunk under the borehole subsidy scheme. resources and the availability of adequate Assistance has been provided in the water supplies is a prerequisite for most development of over 1,400 rural water development activities. It has particular supply schemes since 1965. The government implications for the health of children. will continue with the upgrading of the Suva About 70 per cent of the total population - Nausori water supply scheme and sewerage have access to proper piped water supplies systems. It is expected to spend around compared to 60 percent in the mid eighties. $48.8 million on this project. The Government funds the development of Department of Mineral Resources under- regional and urban water supplies, and also takes hydrogeological investigations desig- carries out the construction, operation and ned to identify potential groundwater maintenance of these schemes through the sources, particularly in outer islands and Water and Sewerage Section of the Public rural areas of the main islands. Sewerage Works Department. Cost recovery is low, and Waste Disposal. It is estimated that 15 and well under half of the annual expend- per cent of Fiji’s population now have access iture (including capital expenditure) is to treated sewerage facilities, compared recovered through water tariff. In 2001, to only 6 per cent in 1980. It is estimated Government announced measures to provide that 57 per cent of all urban areas have basic water (plus power and sanitation) to sewage. There are almost 13,000 sewerage rural areas in the attempt to help eradicate connections to government schemes, just poverty. In 2002, Government announced over 80 per cent of these being domestic major provisions for water - related infrast- connections. Cost recovery is low, with only ructure such as $35.1 million for urban and around 15 per cent of annual expenditure regional water supplies including $17.9 mil- (including capital expenditure) being lion for Nadi/Lautoka, $6 million for recovered through charges for sewerage Suva/Nausori, $2 million for Korovou and services. Town and city councils were $1.8 million for Rakiraki. Another $2.5 mil- traditionally responsible for sewerage lion was provided in the 2003 budget for services within their boundaries, but these other rural water supplies, and $16 million responsibilities have now been transferred for the maintenance and operations of exist- to Government. Urban waste disposals ing water supplies. Government’s policy on including household rubbish and garden water is that all citizens of Fiji would be refuse remain the responsibility of town provided clean water at an affordable cost. and city councils, which operate landfills Government’s policy is to keep strategic for this purpose. The Ministry of Health utilities such as water in public hands. A administers some regulatory respons- plan was prepared to restructure the Water ibilities in relation to waste management

FIJI TODAY 2004 / 2005 60 HEALTH, SOCIAL WELFARE & LIVING STANDARDS and pollution control. At present, the Ports through the National Environmental Strategy Authority of Fiji is the sole industrial and to promote the concept of sustainable urban pollution monitoring agency, and its development. It is doing this through the responsibilities are confined to designated fomulation of a sustainable development port areas. legislation, natural resource management, environment impact assessment, waste Environment management and raising environment A mammoth task in which the Department awareness. This is further enhanced by of Environment had been involved since national projects that have been initiated 1996 was putting together a new comp- from international environmental progra- rehensive and integrated legislation that mmes to address global issues such as will rationalise, streamline and strengthen climate change, depletion of ozone layer Fiji’s environmental management frame and hazardous waste. The incorporation of work. Fiji’s Sustainable Development Bill the principles of these responsibility areas (Working Document and Consultation Paper) into Fiji’s policy for promoting investments was presented by the then Minister for and related economic activities would bring Environment, in December 1996 for public long -term benefits in that they create comments and views. The much awaited international goodwill and Sustainable Development Bill is to be tabled appreciation for Fiji thus in Parliament next year. The Bill will provide securing our national the legal framework that helps government economic interests to police activities that bring about overseas. depletion and destruction of our natural resources. Together with other governm- ental departments, municipal bodies and NGOs, the Department of Environment will continue to promote increased public awareness of the importance of conserving and protecting Fiji’s national environment. Government also intends to formulate clear policies on coral conservation and has directed the department to commission an urgent study on the issue and provide its report. Fiji has joined more than 40 million people in 120 countries in the 'Clean Up the World' campaign. Last year, an estim- ated 22,000 Fiji people collected more than 500 truckloads of rubbish as part of the fifth clean up campaign. The activities are held in an effort to raise health standards and environmental awareness. The Depart- ment of Environment has the mandate

FIJI TODAY 2004 / 2005 EDUCATION

About a quarter of the entire population support for the global iniative, “Education is of school-going age and although for all.” education is not compulsory at any stage, All major exams have been localised over 98 per cent of children between 6 and are conducted by the Ministry of and 14 years of age are attending schools. Education. The principal external examina- In 1996 about 70 per cent of the population tions are the Fiji Intermediate Examination had already received some secondary (Class 6), Fiji Eighth Year Examination(Form education (74 percent Fijians and 66 2/ Class 8), Fiji Junior Examination (Form percent Indians). Nearly all children 6-8 4). Fiji School Leaving Certificate Examina- years of age were enrolled in schools. In tion (Form 6) and Fiji Seventh Form Exami- the same year, the literacy rate was 92.9 nation. Government maintains education percent) and was higher among Fijians standards through accrediting schools, (92.9 percent) than among Indians (89 recruiting teachers, developing the curricu- percent). The rate was higher among males lum, providing teaching materials, and (94 percent) than among females (91 per providing external examinations. Govern- cent). ment also encourages school attendance A Fiji Islands Education Commission was by rural and poor children through measu- established in 1999 to review and assess res like the free tuition scheme for primary the nation’s current educational system and secondary schools and per capita grants and programmes and the quality of the and remission of fees for secondary stude- education which is being offered in schools nts. There is a high degree of community throughout the country. The Commission participation in the delivery of education published in late 2000, its report titled services which is a strength of the system “Learning Together: Directions for Educat- that needs to be maintained, which inclu- ion in the Fiji Islands.” The comprehensive des religion (Christian, Hindus, Muslims) report is now the basis of major education and community organisations as well as initiatives within the education sector. localised communities. Most schools are Governments in the South Pacific region managed by non-government organisations. are guided by the goals of the Forum Basic Government operates only 0.3% per cent Education Plan which in turn reaffirms the of the 712 primary schools, 8 per cent of

FIJI TODAY 2004 / 2005 62 EDUCATION the secondary schools, 8 per cent of vocati- More resources will be given by Government onal and technical education schools, and to schools for children with special needs. 2 out of the 5 teacher training institutions. Compulsory education. The normal examin- The government realises that for ongoing ation fee for Fiji junior Examination is bei- economic development, the country needs ng abolished. Students are to be exempted an educated and skilled work force. The from the examination fees for the Fiji future of the country depends on a good School Leaving Certificate in 2002 and the all -round education for all the people. Fiji Seventh Form Examination from 2000 The broad outcome that Government seeks onwards. to achieve in education is to bring opport- In the interest of developing a profess- unities for learning within the reach of ional and competent pool of teachers in every child in our society. Quality education the country, the Government will continue is the right of all children to prepare them- to work at upgrading and improving teacher selves for a productive and rewarding training and working conditions. In addition, future. Government’s aim is to assist each a Board of Teacher Registration will be family to have at least one child attain set up to monitor teacher quality and university or other higher education qual- professionalism. In co-operation with the ifications. Tertiary and vocational skills two Teachers' Unions, the Ministry of Educa- training and knowledge will be emphasised tion will closely monitor the development to prepare young people for gainful of teachers to improve discipline and perfo- employment. Educational expenditure con- rmance. In the interest of equity, special sistently takes up the highest allocation attention will be given to upgrading and in Governments overall expenditure. A improving services and facilities in Fijian total of $240 million was allocated to the schools. Education Ministry in 2004, an increase of A further advance will be seen with the $19 million compared to 2003. For the first upgrading of the twelve Government secon- time, all form 5 students received Tuition dary schools to Centres of Excellence. A Fee assistance this year. Fee assistance wide range of specialist courses will be was previously provided for forms 1-4. offered, a high academic performance Government introduced several new encouraged. The first schools to benefit policy initiatives for 2002 and these include will be the Ratu Kadavulevu School (RKS) the payment of premiums required by the and Levuka Public School (LPS), both of Native Land Trust Board for new leases to which began the 2 - year development and non - Government owned schools on native conversion process later this year. All twe- leased land. Boarding school assistance is lve schools will be upgraded by 2009. also being extended to all rural boarding Substance abuse will be addressed schools as well as secondary boarding through the National Substance Advisory schools. The Government will increase Council. The Council will focus on raising educational participation for all our chil- educational awareness on the effects of dren. Children in rural areas will be given misuse and abuse of alcohol, tobacco, improved access to pre -school education. illicit drugs and other substances. Values

FIJI TODAY 2004 / 2005 EDUCATION 63 education is given high priority to inculcate and urban schools by improving teacher in students stronger feelings of national quality, curriculum resources and upgrading consciousness and of the importance of student assessment. Teacher training facili- respect for others and of appreciation of ties are also available such as the Lautoka Fiji's rich multi-cultural heritage and Teachers College, Corpus Christi, Fiji Coll- natural environment. The teaching of ege of Advanced Education and Fulton vernacular languages is encouraged in all College. The pupil-teacher ratio at the schools. In addition to English, the Fijian primary level is around 1:31 with a lower language is made a compulsory subject, ratio(1:20) in the rural areas and higher and Government is to provide increased ratio(1:42) for urban areas, sometimes resources to support this programme. The exceeding 50 are a direct result of high quality of pre-school education will improve population growth, and rural - urban from an increase in the salary grant to migration. pre-school teachers and an accelerated Secondary Teacher Training Course will Specific provisions in 2004 include: address the shortage in Secondary School • an additional 621 teaching posts teaching resources. Fee-free education in completing the full staff establishment essence means tuition free. With free fee • $2.1 million for form 5 Tuition fee education schemes already implemented, assistance focus in the years ahead will be on phasing • $6.9 million for construction and in compulsory education measures to maintenance ensure the attainment of global primary • $15 million for scholarships education for all. Form 7 education will • $240,000 for VAT reimbursment in also be consolidated further by improving building materials. the quality of courses in existing schools and centralising in strategic centres. Positive measures will continue to be made to reduce the disparities between rural

FIJI TODAY 2004 / 2005 64 EDUCATION

Fijian Education their participation in commerce and other To improve the academic achievements professions. Earlier this year, the Ministry of ethnic Fijians, Government has provided drew attention to the importance of accou- more scholarships and better education nting, economics and computer studies, facilities. This assistance will be opened at which so many indo-Fijian students to other ethnic minority groups. The non- excel. There subjects have a much higher indigenous Fijians benefit from Multi - value in today’s job market than traditional Ethnic scholarships provided by govern- ones such as history and geography. Accor- ment. Government has confirmed its dingly, Cabinet has agreed to full tuition investment in improving science teaching fee assistance for Fijian students who take in rural Fijian schools. A Blueprint of Fijian accounting and economics in form 5 and Education was issued in 2000 to point the 6, as well as the provision of a fund for direction Fijian Education should take. the introduction of computer studies in The Blueprint constitutes a 10 year plan all Fijian secondary schools. Funding is and looks at ensuring that every Fijian to be sounght in the 2005 Budget. school is upgraded and every Fijian student receiving the best education. The expected The University of the South Pacific outcome of the affirmative action policies The University of the South Pacific (USP), in this ten-year period included the acce- was established in 1968 and is located leration of Fijian access and participation in Suva. It is a premier provider of tertiary and performance education in the Pacific region and an at all levels of international centre of excellence for education. Emp- teaching, research and consulting on all owering indig- aspects of Pacific culture and environment. enous Fijians USP comprises a vibrant and culturally through imp- diverse community of staff and students roved perfo- from its 12 member countries: Cook rmances and Islands, Fiji, Kiribati, Marshall Islands, higher achievem- Nauru, Niue, Samoa, Solomon Islands, ents in education Tokelau, Tonga, Tuvsalu and Vanuatu, as and training will be well as many other countries World wide. the best long term The University also enjoys a growing solution to number of agreements and memorandums increasing of coperation with international universi- ties and world wide. USP is governed by its own council, which includes represen- tatives of the member country govern- ments, academic staff and students, and from regional organisations and countries including Australia, New Zealand and the United Kingdom. USP is a multi - model,

FIJI TODAY 2004 / 2005 EDUCATION 65

University offering hundreds of courses uting science counselling and social serv- both on-campus and by distance and ices, engineering, environmental manage- flexible learning in a variety of models ment, journalism, public administration including print, video, broadcast, face - and management, science, teaching, tour- to -face and on line. Of the approximately ism and many more, In addition to its tea- 15,000 students currently enrolled at USP ching activities, the university has develo- more than half choose to study by distance. ped a strong track record in research, For these students, the University’s sophis- particularly in the areas of business manag- ticated satellite communications network, ement, teacher education, politics, law, USP Net, serves as a gateway for intera- Pacific studies, marine studies, agriculture, ction, information, research and higher science and technology and eco-tourism. learning, providing links with USP’s three major Campuses in Fiji(Laucala Campus), Fiji School of Medicine Samoa-(Alafua Campus) and Vanuatu The school has become a regional training (Emalus Campus) and its 14 USP centres. centre for medicine and the paramedical Collectively the University’s Campuses professions and is the oldest medical school and Centres are located across 33 million in the Australasian and Pacific basin square kilometres of ocean, covering five regions. Established in 1885, the school different time zones. USP offers interna- has trained and graduated physicians and tionally recognised undergraduate and health care workers in dentistry, environ- postgraduate study programmes in a wide ment health, medical laboratory techno- variety of disciplines, including accounting, logy, nutrition and dietetics, pharmacy, agriculture, banking and finance, comp- physiotherapy and radiography for Fiji and

FIJI TODAY 2004 / 2005 66 EDUCATION the South Pacific region. The FSM gained at Ratu Kadavulevu School at Lodoni, autonomy in 1998. Currently the school Tailevu. The school will provide quality provides a refined MBBS (Bachelor of training mainly to Fijians on a fully Medicine/Bachelor of Surgery) course that residential basis. runs for six years and maintains the The Fiji National Training Council now principles of problem-based learning. known as the Training and Productivity Authority of Fiji (TPAF), a statutory organi- Fiji College of Agriculture sation, was established by a Parliamentary The Fiji College of Agriculture established Act and given the responsibility of skilling in 1954 offers a two-year programme lead- the work force of the nation to help them ing to a Certificate in Tropical Agriculture. become increasingly efficient and highly Today, the college, offers an external productive. Some 50,000 employees of Diploma in Tropical Agriculture with the public and private sector organisations assistance of the University of the South have successfully gone through the Pacific. Students from Fiji as well as other Council’s varied commercial and technical parts of the South Pacific attend the training courses since its formation in college. 1973. The council is a tripartite organisa- tion with representation from Government, Vocational and employers and employees. Its activities Technical Education are financed through a one per cent levy The Fiji Institute of Technology (FIT) is on the payroll of employers. TPAF has the country’s main technical centre. Now reviewed its courses and established a an autonomous body, plans are underway medium term corporate plan to improve to upgrade it to a polytechnic status. Some linkage between the council and industry. $20 million is to be spent over the next Government has endeavoured to 10 - 15 years to upgrade staff and facilities provide a balanced programme of both so that FIT becomes effective and responds academic and practical courses to develop to the demands of the labour market. New and equip our youths in a rapidly changing directions in school-based Argro/technical/ society. Government allocated $0.35 mil- vocational education will be developed lion for the establishment of the Monfort through diversification of school-based Technical School in Savusavu. The institute programmes linked to national tertiary has 48 students undergoing courses in institutions to cater for the lower to cabinet making, upholstery, motor mech- medium level skilled workers now much anics, panel beating and agricultural tech- in demand in our economy. Government nology. Currently there are 45 school- also plans to establish three new vocational based vocational and technical centres in and technical education centres close secondary schools offering courses for to the main centres of employment. students and school leavers. Scholarships The centres would be designed to provide are provided for tertiary education, whilst lower and middle level technical training. annual appropriations are also provided One of the centres is to be established for vocational and technical institutions.

FIJI TODAY 2004 / 2005 MEDIA

The media in Fiji includes radio, press, nce basically involved undertaking a television and magazines. Some date as comprehensive review of all existing legis- far back as 1869 and 1946 while a few as lation pertaining to the mass media in Fiji early as 1987 and 1992. It plays an import- with a view to updating and making them ant role in providing local and overseas more relevant to today’s circumstances. news, current affairs, weather conditions, The 44 page report prepared by the consul- news about the economy, the public and tants, Ken Morgan (former Chairman of society. It also helps to increase social the Great Britain's Press Complaints Comm- cohesion by widening the base of common ission) and John Prescott Thomas (a Broad- experience. The media aids the integra- cast specialist) titled ‘Future Media Legis- tion of individuals into a society by continu- lation and Regulations of the Fiji Islands’ ing socialization process. It also promotes was handed to Government in November, the advancement and enhancement of 1996 for consideration. The government culture, tradition, art and music. In Fiji, is currently examining the Draft Report the government is committed to an open on the Consultation on the Draft Media media policy and sees the media playing Bill. The Draft Report is significant for a ‘pivotal and mutual role’ in nation build- Fiji’s media as it is the culmination of a ing. The government recognises the need six year exercise when the then Govern- to provide information, respond to quest- ment brought in consultants from the ions and give accurate answers so that its United Kingdom based “Thomson Founda- point of view can be communicated. The tion” to conduct a wide ranging media Ministry of Information and Media Relations review exercise. After various internal remains willing to provide information consultations last year the current govern- that is lawfully available and promotes ment decided this year that the Draft accountability. Media Bill is taken into the public arena for public consultation so that an approp- Media Review riate decision is made on the features for In September, 1996, two British Consult- a new Media Act for the country. ants arrived in the country to review Fiji’s Government’s Media Policy is the prot- Media Legislation. Their terms of refere- ection of Freedom of Expression (Section

FIJI TODAY 2004 / 2005 68 MEDIA

30) and Freedom of the Press and other Information and Media Relations Media (section 30b.). The consultation Information and Media Relations are under report consists of five parts beginning with the Ministry of Information, Communica- the origins of the media review, the consu- tions and Media Relations which is the ltations , issues arising from the consulta- Government’s major information agency tions, advice and solutions provided and providing the link between the govern- the various options and recommendations. ment, media and the public. Part of the complete media review exerc Governments basic media policy is ise includes a review of all other relevant guided by the constitutional provisions of pieces of legislation including the formula- Freedom of the Press and other Media tion of a comprehensive Broadcasting (Sec.30(b). The Ministry produces publica- Act, as well as a consideration of the tions, radio programmes, news releases, Press Corrections Act and Defamation Act. photographs and posters of government activities and is the source of government Print and Radio news. It also operates and maintains the Newspapers and radio services operate Official Fiji government Website in Fiji’s main languages - English, Fijian (www.fiji.gov.fj). A 40 minute magazine and Hindustani - and reach a vast majority format TV programme by the Ministry’s of the population. The Fiji Times, (founded Film and Television Unit (formerly Fiji in 1869) is the oldest media organisation National Video Centre) was launched in Fiji, the Daily Post (established in 1987) through Fiji 1 Television in August ,1996. and the Fiji Sun are the three English daily The items include a mix of development, newspapers. Fiji Times owned by American current events, art, culture and tradition Rupert Murdoch has the most circulation and stories on rural development, educa- of around 38,000. Nai Lalakai (Fijian) tion, health and agriculture. The Ministry’s and Shanti Dut (Hindi) are venacular Film and Television Unit has commenced weekly newspapers published by the Fiji a new Fijian television programme called Times while the Daily Post publishes the Voqa ni Davui. The programme largely Nai Volasiga (Fijian). Other magazines are focus on developments and various aspects Islands Business, and Fiji Business published of rural village life around the country. by Islands Business International, and The Similarly it has also introduced a Hindi Review (monthly) published by Associated programme titled Sitara and its focus is Media Ltd. Various other magazines on on development, lifestyle, health issues, tourism, trade and economy are also pub- education and culture and tradition. lished regularly. There are other private public relations Electronic Media organisations operating in Fiji such as A long term plan of government was the Associated Media Limited, Samba, Franklin introduction of a national commercial Design and Ad Time. They provide consul- television service for Fiji. With 70 - 80 tancy services in advertising, public relat- thousand video sets in use throughout the ions and general media work. country, the introduction of television

FIJI TODAY 2004 / 2005 MEDIA 69 with its potential for education, informa- to the public. Fiji Television established tion and entertainment was viewed as a new studio facilities at Gorrie Street, Suva logical development. This medium of com- in 1994. The Fiji 1 local television news munication finally came into being on July service went on air for the first time on 1,1994. The people of Fiji experienced March 20, 1995. A 30-minute bulletin repla- television coverage for the first time in ced the government produced Fiji National October, 1991 when Television New Zeal- Video Centre news. Transmission coverage and was granted a temporary licence to includes the majority of the population telecast live World Cup rugby matches. A of Fiji. FIJI TV's nightly news service regul- licence for a permanent national television arly attracts between 40% and 50% of the service was awarded by the government potential audience, an extremely high in August 1993 to a consortium known as figure by international standards. Two Fiji Television Ltd. The Cabinet later appr- satellite- receive dishes allow a wide range oved a Business Plan prepared by Television of international programming to be retrans- New Zealand and the Fiji Deveopment mitted live within Fiji. The current transm- Bank. Shareholders in ission areas for Fiji Television Limited, the consortium are which is called the "viewing area" comprises the Fiji Development the urban and peri-urban areas of Suva, Bank with a 51% shar- Nausori, Lami, Navua, Sigatoka,Nadi, Laut- eholding on behalf of oka, Ba, Labasa, Savusavu and a defined the Provincial Councils number of rural and other urban tikinas and Rotuma, Television in all of the provinces of Fiji. New Zealand 5%, Fiji Television Limited 's board of direc- Telecom Fiji Ltd 14% and tors have approved capital expenditure 30% shares have been sold for the purchase of transmission equipment to provide signals to those areas that do not have access to television. The areas include the Coral coast, interior of Ba and Northern Lau. Fiji Television has introduced a Hindi programme ‘Jharoka’ aimed to foster better relations between Fiji’s races. Another major devel- opment in television was the intro- duction of Pay TV service. Sky Fiji, the name of Fiji Television Limited’s Pay TV service, began a free trial service in June, 1996. Many homes in the country are now taking advantage of Sky Fiji. A television set, an outside aerial and a basic decoder is required before Sky Fiji can be available.

FIJI TODAY 2004 / 2005 70 MEDIA

Sky's subscription initial cost was $35 for work for more than two years. The Fiji a basic decoder and $40 for a delux Audio Visual Commission (FAVC) was estab- decoder. Sky offers a choice sports cove- lished under as a statutory organisation rage including live rugby, soccer, cricket under the Commerce Ministry to develop and tennis. Other entertainment progra- and promote the Audio Visual Industry, so mming includes Hindi and English language that Fiji becomes a premier location with movies and TV series,Cartoon Network,TNT the world’s best tax incentives. At least Classic Movies, talk shows, national eight new projects are being identified geographic series and other movies. A five by the FAVC as very likely to get into prod- - year television licence has been issued uction within the next 12 months in 2004 to Visitor Information Network Limited. with a total combined budget of well over The licence allows the owners of the $200 million. Necessary legislation have company to operate and maintain a now been enacted which allows for the television narrow cast system for the development and setting up of audio visual purpose of providing visitor information studio city. The Act not only provides for services within the Nadi area. Community necessary control mechanisms to monitor Television in Nadi provides local viewing audio visual operations but also provides to those in the area while in 2002 in Suva, appropriate incentives to attract film a Christian television sewrvice called makers and audio visual producers. The Trinity TV was launched. Yaqara Basin has been tentatively ident- ified as the most suitable location of the Audio Video Industry studio city development. A company has The establishment of an Audio Visual Indus- already been approved to be the studio try in Fiji has been the subject of intense city company and holder of the land lease

FIJI TODAY 2004 / 2005 MEDIA 71 for the studio city zone as the centre for tions - Bula 100FM (English), Bula 102FM the audio visual industries. In this the (Fijian) and Bula 98FM (Hindustani) and government has agreed that a MOU on the is solely funded from commercial adve- land lease at the Yaqara basin be entered rtising revenue. FBCl launched its sixth into between the owners of the land on radio station 2 Day FM in December last one hand and the approved video city year. It is aimed at the under 25 - age company on the other. The approved com- group. This station compliments its sister pany commenced negotiations for leasing station Bula 100FM, which has successfully the land and in due course will map out dominated the older radio listening mar- a development programme. Since its estab- ket. The PSB arm is normally funded by a lishment, it successfully launched the government grant and operates Radio Fiji Fijian Island Night in hollywood in February One (Fijian) and Radio Fiji Two (Hindus- this year where 200 of Hollywood’s top tani). Under a $1.3 million contract with producers, directors and agents were the Fiji Government, PSB broadcast stat- invited. The FAVC, within its first year of ions are contracted to provide marketing, has handled about 15 Television a specified percentage of productions that have spent about $F8 public service programmes. million in the Fiji economy. The main These include religion, achievement to date, is FAVC’s success in culture, education, family attracting a major Hollywood studio, Sony Pictures to shoot the $F50 million budget movie Anaconda II at Pacific Harbour. Anaconda II was the first production to profit from new tax incentives by the government that was introduced to attract overseas funded projects.

Broadcast Service Fiji has three thriving commercial radio broadcasting stations - Fiji Broadcasting Corporation Limited. (FBCL) and Commu- nications Fiji Limited (CFL) and Z FM. FBCL provides an extensive broadcasting services in the three major languages (English, Fijian and Hindustani). The corporatisation of the FBCL was part of Government's public sector reforms. FBCL is divided into two divisions - the commercial arm known as the Bula Network; and the public service broadcast side commonly called PSB. The Bula Network comprises three radio sta-

FIJI TODAY 2004 / 2005 72 MEDIA issues, health, agriculture and information also raise and maintain high standards of relating to national emergencies like decency and decorum and provide for cyclones. There is limited advertising on variety and content. The principles of good PSB stations. citizenship must also be provided for. Two Communications Fiji Limited, on the Christian radio stations have joined the other hand, operates three independent airwaves. They are FM97 and Radio Light. commercial stations FM 96 and Navtarang and Viti FM . The fourth addition has been Journalism Training the launching of its new radio station Journalism Training is an issue that Gover- Legend, a project aimed to cater specifi- nment, the Fiji Media Council and journa- cally for what it calls an urban-based lists are keenly aware of that needs streng- westewrnished audience of over 30 years thening. It is realised that to enhance the old. Legend covers Suva and its surroun- profession training is a vital component. ding areas on 106.8 MHz, Lautoka and Nadi The University of the South Pacific is now on 106.6 MHz. FM 96 started in July 1985 seen as a major provider of formal acade- and it provides a 24 hour service broad- mic journalism training with its degree casting - a mix of music, news, sports and studies in the Bachelor of Arts (Journalism community information in English FM 96 Studies) The Australian Government has broadcasts on 96 mghz to an area which also been a provider of journalism training includes Pacific Harbour, Suva and the through the Pacific Islands Media Initiative. Rewa Delta area, Nadi, Lautoka and Ba The opening of the Fiji Journalism Train- including most of Vanua Levu and other ing Institute at Ma’afu Street, Suva in islands. The second station Navtarang November, 1995 had also marked a mile- commenced operations in September 1989. stone in the development of journalism in Navtarang also broadcasts 24 hours a day the country. The Institute is the result of and provides similar programmes to FM96 a three-way partnehship between journ- only in Hindi. It can be heard on 98.8mhgz alists, government and the United Nations in Suva and surrounding areas, Rakiraki Education, Scientific and Cultural Organis- and Ba; 97.4 mghz in Lautoka and Nadi; ation (UNESCO). Government provided a and 101.6 mghz in Sigatoka and Vanua building to house the Institute and UNESCO Levu. Another recent development in provided the initial US 50,000 grant to get radio is the government signing of the the project underway. licence for the University of the South The Japanese government donated com- Pacific’s FM Radio. The licence is valid for puters and other necessary software for five years. The radio station as under the the Institute. More than 50 students from licence will provide FM sound broadcast the print and radio mainstream have qual- progammes to students and staff of the ified with a certificate from the Institute. USP. Radio reception will be confined to Similarly, the Pacific Islands News Associa- the USP main compound. Programmes to tion (PINA), a regional media organisation be broadcast should promote the advance- based in Suva coordinates training progra- ment of education and culture. It should mmes for media organisations in the region.

FIJI TODAY 2004 / 2005 RECREATION & SPORTS

Sport, with its intrinsic values, plays an namely the Multi -purpose Hall which has important role in nation building progra- the potential to seat up to 4000 spectators mme. It provides lucrative employment and houses three competition size basket- opportunities and promotes Fiji as a tourist ball courts with sprung timber flooring destination. Fiji is gaining an increasing identical to that used for the Sydney Olym- reputation for hosting a range of sporting pics. The National Aquatic Centre features events. Fiji has proved its resilience with a 50 - meter competition pool and a 25- the hosting of what is being called the meter warm up pool, fully lit at night train- biggest and the best South Pacific Games ing and the National Hockey Centre has the ever. The 12th SPG games was held from facility to seat up to 500 spectators and June 28 - July 14 2003 and altogether 22 features a water base synthetic pitch, which island countries participated. With the is the finest playing surface available. The financial support of the Government of the new facilities also include a Netball Centre, People’s Republic of China who spent $25 Beach Volleyball Centre and Baseball Grou- million on the development of sporting nds. A total of 34 venues were being used facilities and a contribution by the Fiji Gov- during the Games, with most of them ernment of $17 million for the upgrading located in the Suva area. A number of spor- of sporting facilities, the event presented ting events took place during the two weeks the largest and most complex organisational and the 22 countries competed for gold , challenge. With the untiring efforts of FASA- silver and bronze medals. Fiji came second NOC, the SPG organising committee, govern- in position by winning altogether 182 ment and the Suva City Council, the games medals. It won 65 gold medals, 60 silver provided an ideal opportunity to rebuild medals and 57 bronze medals. New Caled- the country and to promote the spirit of onia topped by winning 242 medals. multiculturalism, of togetherness and work- Sporting bodies that are involved in their ing for a common goal. The Suva City Council own development projects will be assisted under the leadership of Lord Mayor Cr and encouraged by the government. In add- Chandu Umaria spent around $5 million on ition to this, government has started to the beautification of Suva. The games have introduce sports development officers in seen the development of new facilities various districts and in various sports to

FIJI TODAY 2004 / 2005 74 RECREATION & SPORTS look after the development of a particular This programme promotes mass particip- sports at all levels. Sports in Fiji also plays ation in physical education and sports - a vital role in bringing together people in oriented activities for recreation, leisure, this multiracial society, promoting racial health and fitness. In the same year, the harmony and tolerance. It has also helped game of rugby union moved towards a new promote Fiji’s image regionally and era of professionalism and commercia- internationally. lisation through the formation of Fiji Rugby The country’s outstanding achievements Management Ltd (FRML) to finance the Fiji in the rugby sevens code in Hong Kong in Rugby Football Union. Government guaran- 1990, 1991 and 1992 have been seen as a teed a $2.2 million loan to the FRML to major breakthrough in the international enhance the development of the game. sporting arena. Sports has become a major In world sports, Fiji is making an impact income earner for many of our talented with golfer Vijay Singh being World No. 2. athletes who have successful careers over- Fiji’s own Tony Phillip took the world by seas. Theses athletes are contributing to storm when he won honours in the world the higher level of remittances from abroad. surfing championship in 1991. He is ranked Total remittances increased to over $230 5th in the world. These achievements, have million last year and is now the third largest inspired the government and other sporting foreign exchange earner and may soon bodies to further exploit the many raw surpass the earnings from our sugar exports. talents existing in Fiji. And already under- Fiji won the sevens world title (Melrose way are plans to boost the country’s perfo- Cup) in 1997. Fiji rugby is praised highly rmance in sport and improve its medal by international rugby fans. To further prospects in future olympics. While rugby foster the development of sport, a "Sport and soccer continue to be the major compe- for All" programme was launched in 1996. titive sport played in the country, athletics is also developing steadily together with other sports rated for medal prospects in the Olympic Games. These include boxing, judo, weight lifting, swimming and board sailing. Other sports played extensively in Fiji are netball, volleyball, golf, basketball, and bowling.

Fiji Sports Council The Fiji Sports Council was established by an Act of parliament in 1978 to promote and develop sport in Fiji. It is currently the main sporting body. The present govern- ment accepts that sports development must be part and parcel of national development. The Fiji Sports Council has prepared a 5-

FIJI TODAY 2004 / 2005 RECREATION & SPORTS 75 year Master Plan of sports development 1994. Thirty five per cent of the income that is envisioned to culminate with a viable received from Tattslotto has been spent and fully-functional Sport-for- All program on sports development and 65 percent was by the Year 2000. The Ministry, through the utilised for facilities development. It is Fiji Sports Council will pursue a Facility anticipated that the endeavours of the Fiji Development Programme that should see Sports Council will result in the short to sports facilities being developed in main medium term to an increase in the medal centres throughout the country. In 1999, harvests of the country in regional sporting Fiji won the bid to host the 12th South events, and an improvement in its interna- Pacific Games and a master plan was tional ranking. developed in 1998 to guide the development of sporting facilities that would enable the Festivals country to host the year 2003 South Pacific Besides sports, Fiji is also noted for its Games. Sport also contributes to good health colourful festivals, filled with fun. Easter and well - being of all citizens. Over the and Christmas are of great importance to next five years, the Ministry and the Fiji this religious country. In September Fiji’s Sports Council will vigorously promote Sports sugar city, Lautoka, comes alive with its for All Programmes, which will involve all Sugar Festival, Nadi town has its annual citizens regardless of age, size, gender or Bula (welcome) Festival in July, and Fiji’s physical ability. The Ministry is also looking carnival of the year Hibiscus Festival is held into the possibility of having a national in Suva during the month of August. A pretty sports day in which all facilities owned by sight which comes up every year throughout government will be opened to the public Fiji is the Hindu festival of lights, known for sporting activities throughout the day. as the Diwali festival. The island of Beqa It will be a day for families and for all com- munities to come together and promote the objectives of social cohesion and social integration. In addition, the Spo- rts Academy Outreach Programme, will continue to take place in rural comm- unities. In 1994, an agreement was signed between Government and the Tattersall (Tattslotto) Comp- any of Victoria, whereby the Company provides financial support to FSC to fund the development of sports facil- ities nationwide FSC has collected over $2 mil- lion since Tattslotto was introduced in December,

FIJI TODAY 2004 / 2005 76 RECREATION & SPORTS is noted for its spectacular and exciting first moon by following the Lunar calendar. ritual of Fijian firewalking. The Hindu ritual of firewalking is performed by the South Recreation Indians in many of their temples. Other The 300 islands that make up the Fiji group religious festivals celebrated in the country contain a surprising variety of sights, often are the Ram Naumi which is a nine day of great interest and astounding natural activity to celebrate the birth of Lord Ram beauty. Fiji’s bigger towns and cities are and the Diwali festival which is the festival abound with things to do at night. One can of lights a special occassion in the Hindu choose from the cinema to night clubs and calendar and one which brings joy to all restaurants. Films in both English and Hindi the communities in our country. It is a are shown at modern cinemas throughout festival which has kept Hinduism alive for the country. Downtown Boulevard, Dolphins for centuries - the historic event of Lord and Macdonald’s are just some of the grand Rama’s victory after 14 years in exile. The recreational names. Internet cafes provide Chinese community celebrate a colourful valuable service to the public seven days festival during the end of the year known a week. They offer on line games, high as the Chinese New Year. It is observed to speed and low speed connections and people welcome the arrival of the Spring season can send sms (E-mail to mobiles) to anyone and pray for peace and prosperity in the within the country. People can talk to each coming year. The Muslim community celeb- other online in every country in the world rates the Eid festival in November. This is and surf at affordable costs. after 30 days of fasting after seeing the A living exhibit of Fijian history and cult- ure can be found at the Pacific Harbour Cultural Centre in Deuba. At Orchid Island which is about fifteen minutes drive from Suva city, there is a fine collection of Fiji’s plants and animals. There are a number of parks and reserves in Fiji and many of them serve as good eco-tourism attractions. Some of the notable ones are Lololo/Nalowela Forest Park and reserve and the sand dunes at Sigatoka which is regarded as one of Fiji’s earliest pre-historic sites. The Garden of the Sleeping Giants, located 6.5 km from Nadi International Airport, has Fiji’s largest orchid collection; the island of Vatulele is famous for its red prawns and Taveuni known as the Garden Island of Fiji boasts some of the country’s spectacular waterf- alls, miles of white sandy beaches and the home to country’s unique flower; the legendary ‘Tagimoucia’.

FIJI TODAY 2004 / 2005 TRANSPORT, COMMUNICATION & ENERGY

Infrastructure development contributes much Lautoka, $1.5 million for Suva and $1.5 to economic activity and the general standard million for Kinoya and of living. The maintenance of existing infrast- • $3.8 million for the maintenance and urcture to improve the deteriorating conditions operations of urban sewerage systems. of the existing assets will be an area of focus As an island nation with an open economy, in this sector. Therefore, Government will Fiji is heavily dependent on transportation ensure effective periodical maintenance of services. The transport sector accounts for Government assets to sustain their economic around 12 per cent of GDP. Government's value. The major provisions for this sector major role in the transport sector is through include: the development of infrastructure (roads, • $1 million for Repair and Upgrading of jetties and airstrips), and providing the regula- public buildings. tory framework for the operation of all trans- • $1.4 million for Government’s contribution port modes. Statutory bodies run the major to the second Rewa Bridge bypass airports and ports. Transport services are • $11 million for tourism infrastructure mainly provided by the private sector, though • $8 million for periodic maintenance for government is also involved in inter-island roads. shipping, shipbuilding and ship repair. As a • $35.1 million for urban and regional water shareholder in the airline industry, government supplies, including $17.9 million for Nadi/ also assumes a planning role in relation to Lautoka, $6 million for Suva/Nausori, $2 the various transport modes. The National million for korovou and $1.8 million for Transport Sector Plan was produced in 1993. Rakiraki. • $ 2.5 million for other rural water supplies. Roads • $16 million for maintenance and operations Public investment in the road network saw of existing water supplies. its expansion from around 2,600 kilometres • $35.2 million for Fiji road Upgrading to 1970 to about 5,300 kilometres in 1997, Project 111. of which about 1030 kilometres is tarsealed. • $ 1.9 million for upgrading of jetties in Viti Levu and Vanua Levu account for 90 per Kadavu, Savusavu and Taveuni cent of the total network, while Viti Levu has • $ 5.4 million for development of urban 77 per cent of the sealed roads. Public trans- sewerage services, including $1 million for port by road, including bus, carrier and taxi

FIJI TODAY 2004 / 2005 78 TRANSPORT, COMMUNICATION & ENERGY services is provided by private operators. The for Fiji Road Upgrading Project, Stage 111. transport industry is subject to a high degree The Qeleloa over-pass road approaching Nadi of regulation. In addition to technical and town is a new feature. The overpass was safety issues, many economic aspects of the constructed at a cost of $750,000. The const- industry is regulated. Prices are regulated in ruction of the bridge is the first in Fiji where the bus, taxi, domestic aviation and inter - the locomotives pulling cane trailers will pass island freight industries. Route licensing app- beneath. The spot was also prone to floods lies in domestic aviation and the bus industry. as the approach to Nadi town on the Sigatoka A National Road Safety Council (NRSC) as a side was a hazard to motorists because of the statutory authority was formed in 1995 with dip in the road. Nausori is to have a new responsibility for the overall co-ordination of bridge over the Rewa river by the year 2003. road safety activities in the country. The NRSC The government has signed an agreement has a full time Secretariat which provides with the European Union for a $25 million technical service to the council, monitors bridge. road safety activities of the various agencies and promotes safe driving. Shipping Since Fiji comprises 300 islands, shipping is Road Maintenance Sector Project a vital means of transport for people living Over the last five years, the government has in the outlying areas. In terms of Sea Transp- made capital investment of more than 100 ortation, the Department of Government million for improvement and construction of Shipping Services and the Fiji islands Maritime new roads. Until the mid - eighties high emp- and Safety Administration’s primary goal is hasis was given to expand the road network. the provision of frequent, regular and reliable Fiji embarked on more ambitious investment Inter Islands Shipping Services to the Nation. programmes beginning with the first Fiji Road The Department is charged for impleme- Upgrading Programme (FRUP 1). The FRUP II ntry regulations embodied within the Marine has been one of the major achievements in Act of 1986, the strategies of which includes the roading sector. The Asian Development regulating inter island shipping services, Regist- Bank, World Bank and the Exim Bank of Japan ration of all Fiji Islands vessels and the insua- co-funded projects cost $118 million. The nces of Competency Certificate by the Fiji roads included in the project were - Cunning Marine Board, to name a few. ham Road (Suva), Khalsa road (Suva), Kings In Government’s endeavour to provide Road ( Suva-Nausori and Dama-Navolau), Nadi regular and reliable shipping service especially Back road extension; (Queens Road(Airport to remote islands, which may be portrayed to Lautoka) Lomolomo duplication, Transins- as routes uneconomical to private Commercial ular Road in Vanua Levu, Nabouwalu Road Shipping Companies, Government had since and Wanikoro Road. Under FRUP III, the mini- 1997 introduced the Shipping Franchise stry was to spend some $10 million for a five Scheme. Initial areas covered had been Nort- year period for road maintenance. Government hern Lau, Southern Lau and Rotuma whilst in has allocated $192.7 million to infrastructure 1999; franchises were extended to cover development. Major allocations include $8 Kadavu, Yasawa and Lomaiviti with an increase million for road maintenance and $37.2 million in its yearly budget allocation to $1.5 million

FIJI TODAY 2004 / 2005 TRANSPORT, COMMUNICATION & ENERGY 79 from $500,000. As for the Government Shipping responsible for the following: lic- Services operations, the Ministry is currently ensing of airports; certification of people who implementing a Shipping Refurbishment exer- work in the industry; licensing of aviation cise of the current Government Shipping Fleet operators; certification of airport airworthiness with an annual Capital allocation of $1 million. and ensuring that International Civil Aviation The refurbishment project started in 2003 Organisation standards and obligations are and will end in 2005 with the prospects to met. AFL, for its part, is to own and manage continue further depending on funding and all public airports- Nadi, Nausori and 16 outer needs. Other Capital projects that are ongoing island airports. Both Nadi and Nausori airports include upgrading of lighthouses, installation have seen developments in recent years that of Mooring Buoys, Beacon Piles and dredging has left them well equipped to enter the 21st of waterways. century. Government through AFL has just recently expanded over $20m upgrading works Air Services at Nadi International Airport which is the gat- Fiji enjoys regular air services to Australia, eway to our beautiful country. This investment New Zealand, the United States of America, shows the trust we have in our future and our Canada, Europe, Japan and South Korea. Inter- country’s well being. Recent activity at Nausori national airports are located at Nausori and International Airport has seen the upgrading Nadi. The Nadi airport underwent a $10 million of the runway and Air Pacific's introduction expansion in 1987-88, a far- sighted move by of the Boeing 737 - 700 series aircraft and a Government at a time when tourist arrivals new Boeing 737 -800. Air Pacific is the focus were at its peak. In the past, the Civil Aviation of international air services, while a range of Authority of Fiji (CAAF) owned and operated other carriers also serve Fiji. In 2001, Cabinet Fiji's international airport at Nadi and was approved the sale of government shares in contracted by the Government to operate 13 Air Pacific to Qantas Airways for a total of other domestic airports within the country $26 million. The sale reduced Government and Rotuma. In addition, CAAF was responsible for controlling all aircraft passing through the Nadi Flight Information region, an area of 7.5 million square kilometres. The new company, Airports Fiji Limited (AFL) was formed in April, 1999 to take over the commercial operations of CAAF as part of government’s reform of its public enterprises to improve customer focus, lower costs to business and consumers and to improve efficiencies, in particular the return on investment. The present admin- istration has reviewed the current position of CAAFI and AFL and has decided that both entities are to continue as separate operations. CAAFI is to be the regulator of Civil Aviation. In this regard, it is

FIJI TODAY 2004 / 2005 80 TRANSPORT, COMMUNICATION & ENERGY shares in air Pacific to 51 percent and increa- rule. A technical assistant is being sourced sed Qantas equity in the airline to about 46 through the World Bank to look into this area per cent. In the domestic arena there are and to make appropriate recommendations several airlines serving Fiji. Air Fiji which is to Government. Review of the Land Transport 11 per cent government owned is one of the Act 1998 is to be undertaken once interested two airlines providing scheduled air services parties have made appropriate submissions in the domestic market. The other is Sun Air. to the authority. Perhaps what is important Pacific Island Air Ltd, coral Airways, turtle here is, since the Land Transport Authority Airways and air Wakaya provide plane charter was introduced in year 2000 more time is services and Pacific Crown Aviation provide required to assess its efficiency and effecti- a helicopter hire service. veness in service delivery.

Land Transport Authority Telecommunications In terms of Land Transport, the Land Transport Fiji is equipped with modern technology for Division within the Ministry is responsible for both its internal and international telecomm- monitoring the implementation of the Land unications. All major towns have digital telep- Transport Act by the Land Transport Authority hone exchanges and the islands are linked by and the performance of the National Road cable and satellite to world - wide networks. Safety Council as established under Parliam- Worldwide Direct Dialling is available and the entary Act No.18 of 1994. With the advert of full range of modern services can satisfy the the Land Transport Act in 1998 and with line most demanding business requirements. Telex agencies it correspondingly recommends to facilities are comprehensive and facsimile Government amendments to the Act and Land machines are in wide use. At the beginning Transport Regulations as and when the need of 1990, the old Telecommunications Depar- arises. Government very much recognises the tment was replaced by Fiji Posts and Telecom- invaluable contributions and the sacrifices munications Ltd, a private company wholly that has been rendered by our senior citizens owned by Government. FPTL currently consists and as such is currently pursuing the idea for of the Telecom division (now Telecom Fiji senior citizens of 60 years and over to be Limited) and Posts Fiji Limited both headed exempted from bus fares. To protect the high by Managing Directors. International telecom- level of Government investment in the national munications is operated by Fiji International road network and maintain good roadings for Telecommunications Limited (FINTEL) , a joint motorists, effective controls and strategic venture between Cable and Wireless and plans were introduced on vehicle overloading. Government. The integration of Telecomm- Off the road weighing sites were identified, unications Fiji Limited (TFL) and FINTEL into some already constructed and others still be the holding company Amalgamated Telecom completed. The strategic plan to reduce Holdings (ATH) has resulted in the creation excessive smoking of vehicles to international of the merger of the two entities, and through standards is currently being addressed on two an offering, the sale of 51% of the holding (2) fronts. The LTA is booking offenders by company to the FNPF. The Telecommunica- issuing Traffic Infringement Notice using the tions Regulatory Unit (now Ministry of Comm- ten (10)seconds continuous emission smoke unications) was established in 1990. Whilst

FIJI TODAY 2004 / 2005 TRANSPORT, COMMUNICATION & ENERGY 81 generally the unit performs the functions and Information Communication Technology responsibilities of radio frequency spectrum Information technology and knowledge - based management it is also responsible for: industries hold very high potential for Fiji, • development of national plans and policies and the government is keen to see it develop on the utilisation of the radio frequency to its fullest extent. To continue to promote spectrum which ensures the employment of the development of the industry, the IT- rela- the best combination of telecommunication ted investment allowance of 40 per cent provi- systems in the sector to meet the needs ded under the investment Package will remain that have been identified. until 2005. This allowance requires a minimum • development of national positions on key investment of $50,000. In 2002, the importa- spectrum issues of interest co-ordinated tion of computers and accessories were made with national policies and plans, and natio- duty free to make the items more affordable. nal position on issues of common interest Government is currently reviewing its strategic at a regional and international level. direction for IT development and has allocated • co- ordination of all proposed radio freque- $1 million to implement recommendations of ncy assignments with regard to existing the IT review. Recent development in Fiji’s assignments on a national, regional and telecommunications infrastructure and improv- international basis. ements in the communication links to the • application of the national policies, world wide provide the country with a good legislation, regulations and procedures platform for IT development. The Southern governing telecommunications and radio Cross Cable system which links Fiji, New communications. Zealand, Australia and the United States has • stipulation and enforcement of technical opened up great potential in this area. The regulations on operations in the sector. high speed network can now deliver 120 Gbits • development and application of standards (capacity of new submarine cable system) of and procedures for approved customer fully protected capacity between Australasia premises equipment. and North America giving Fiji's businesses • development, establishment and mainten- power to thrive in the globalised on line world. ance of a database and necessary statistical This government is supportive of initiatives technical and operational information for to develop Fiji’s Information and Communica- the proper management of resources tion Technology (ICT) industry given its handled by the Unit potential of being Fiji’s new growth industry. It also exists primarily to be responsible for and to ensure that the duties, functions and responsibilities of the Minister for Communica- tions are satisfactory carried out, which duties,functions and responsibilities are enum- erated in the Posts and Telecommunications Decree 1989 and the Television Decree 1992. Annually the revenue collected by the Unit contributes $2-$2.6 million to the Consolidated funds.

FIJI TODAY 2004 / 2005 82 TRANSPORT, COMMUNICATION & ENERGY

The age of information technology has proved Current projects although small, if successful, that isolation is no longer a constraint to our could provide the much needed answers to pursuit of economic development. Government Fiji's energy problems. The Department of recognises the infrastructure capacity via the Energy (DoE) is continuing its investigations Southern Cross Cable Network provides the to assess the economic viability of a number impetus for “bridging the digital divide” and of renewable energy resources. The major optimising our opportunity as the hub for areas of investigations being wind, geothermal information and communication transmission. and hydro power. Proven solar lighting systems Fiji has also begun to take bold steps towards are being promoted and disseminated as an attracting investments in the IT sector. A option for rural electrification. DoE is also study jointly funded by the FITIB, Telecom pursuing programmes in energy conservation Fiji, FINTEL, and the Ministry of National to improve the efficiency and reduce energy Planning commenced work in this area late costs. Energy conservation programmes which last year. The report has revealed that Fiji to date have been largely confined to the has a well developed infrastructure, attractive public sector include energy management time zone and good supply of labour to move systems for buildings, fuel substitution, air - in this direction. The FITIB has already begun conditioning, heat recovery and lighting. Strat- work in this area and has set a target of five egies are being designed to extend this progra- (5) investments for this year specifically in IT mme to the private sector and the general industries which could generate around 400 public in the form of energy education. Fiji's jobs. Compared to other South Pacific current energy requirements are met from a countries, Fiji has rapidly penetrated into the number of sources including hydro and diesel electronic age. E-Mail, Website and Internet generated electricity, fuel wood, bagasse, have become our daily means of communica- coal and petroleum products. Of these major tion. Fiji’s information technology advisory energy sources, coal and petroleum products council (ITEC) has already been set up comp- are imported while the rest are produced rising personnel from the Ministry of Comm- locally. The total reliance on imported fuel unications, Connect, Information Technology has been an obstacle to Fiji's development. and Computing Services (ITC), Fintel, National Nearly half of Fiji's total energy is imported Planning office, University of the South Pacific from Australia, New Zealand and Singapore. (USP), FITIB and other private secors. A key Australia and New Zealand were the major priority of ITEC is not only to provide the rural suppliers of petroleum products in the country. population with the basic telecommunication The transport sector is the main user of comm- facilities but also Internet access which is ercial fuel mostly in the form of petroleum, considered in most the countries as a while the other half is indigenous and non necessity. The group is working on the final commercial in the form of bagasse, wood and draft of the ITEC policy which is expected to petroleum fuel. be in place by this year. Fiji Electricity Authority Energy The Fiji Electricity Authority established in Fiji continues to seek alternative sources of 1966 is responsible for generation, transmission energy to supplement its large import bill. and distribution of electricity in Fiji. It is esti-

FIJI TODAY 2004 / 2005 TRANSPORT, COMMUNICATION & ENERGY 83 mated that about 57 per cent of Fiji's popula- solar and these can be developed into sound tion have direct access to power supplied by technologies with minimal environmental imp- the FEA. Approximately 40 per cent of energy act. There is also need to reduce Fiji's depend- needs are supplied by local resources and 60 ence on imported expensive petroleum prod- per cent are based on imported fuel. In 1996 ucts and therefore curb global warming by FEA operates six separate supply systems of reducing emissions. DoE has coordinated the which the hydro based Viti Levu interconnected installation of various renewable energy proje- system (VLIS) is the largest, accounting for cts throughout Fiji. These are mainly mini/ more than 90 per cent of the total FEA sales. micro hydro schemes, solar energy for lighting, Other systems operate at Ovalau, Rakiraki, water pumps, hot water system, video and Korovou, Labasa and Savusavu. Generation is television and steam plant for drying copra. entirely diesel based at Ovalau and Korovou The department has installed five wind while at Labasa and Rakiraki it is supplemented monitoring stations at selected sites in Fiji to by electricity generated at the sugar mills. In assess the potential for wind power generation. Savusavu generation is based on 800KW hydro If these sites are found to be viable, potential and supplemented by diesel. Government's investors and funding for wind power genera- effort in the power sector in concentrated on tion will be sought for development. Last year encouraging FEA to operate on a commercial the DoE in cooperation with the Pacific Intern- basis. A review of FEA's operation's and manage- ational Centre for High Technology Research ment was implemented in mid 1996. The Mono- (PICHTR) embarked on a hybrid power project, savu hydroelectricity project opened in 1983, the first of its kind in the country. The Nabou- is one of the most ambitious and largest energy walu Hybrid Power Project was first initiated diversification projects undertaken in Fiji. in 1995 and in 1996. The DoE through its Ren- This project was completed at a cost of ewable Energy Development Program (REDP) $230 million and has resulted in annual savings installed a wind and solar monitoring station of $22 million in terms of petroleum imports. at the site to collect relevant data and determ- However, the Monasavu project which genera- ine the feasibility of utilising wind energy. tes 95 per cent of Viti Levu's electricity has The Nabouwalu Village Hybrid Power System now reached its maximum generation capacity, includes the utilisation of wind and solar requiring diesel backup in times of peak dem- energy and its system design includes eight and. Two rural mini hydro schemes have been wind tubines. It also includes a 40 KW solar completed. The Bukuya project in Ba generates array and two 100k VA diesel generators as a 100 kilowatt of electricity and the Wainique back-up system. This hybrid system is designed project in Savusavu generates 800 kilowatts. to provide power to the whole Nabouwalu Plans are underway to construct similar mini Government Station and Nabouwalu village. hydro schemes in Taveuni, Bua and other areas. The Department of Energy (DoE) is con- Rural Electrification tinuing its programmes to promote the use of Rural Electrification (RE) has been given a renewable energy resources and exploit these high priority by the government. The formation resources to provide high quality energy. Fiji of a Rural Electrification Unit is part of the is blessed with indigenous renewable ene- government's commitment to ensure effective rgy resources such a water (hydro), wind and implementation of the policy. The new rural

FIJI TODAY 2004 / 2005 84 TRANSPORT, COMMUNICATION & ENERGY electrification policy is based on a user pays for the next five years. Two generators have principle with rural consumers paying 10 per been installed at Kinoya while another two cent of the capital costs of a scheme and the are in operational at Vuda outside Lautoka. government, 90 per cent. The policy offers The operations and maintenance of Fiji consumers the choice of electrification system electricity Authority’s (fea) diesel power gene- from diesel, grid connections, solar and hydro. ration plants at vuda and kinoya weretaken over by United States-based Company, Teleso- FEA's New Friendly Policy urce International Inc. in May this year. Previously, electricity users were divided into Telesource International specializes in complex three categories - industrial and commercial construction, power plant operations, water customers who generally demanded very large desalination and broadcasting station projects. quantities of electricity, rural customers, incl- It is a public company listed on the New York uding settlements and villages and rural comm- Stock exchange with total assets of $175 ercial and industrial customers and thirdly, million and a work force of 1,250 emplo- real estate developers who carry out subdivi- yees. Its wholly owned Fiji subsidiary, Teleso- sion works and who had to ask FEA for the urce Fiji Ltd (TFL) will be responsible for reticulation of subdivisions. In the new policy, the operation and maintenance of fea’s diesel where there is a need to set sub-stations or plants at Kinoya and vuda, the two largest extend the supply system to get electricity, diesel power stations in Fiji. FEA is giving a third option-businesses do not THE TFL was awarded a 20 -year, Energy have to pay cash. Instead they simply lodge Conservation Agreement (ECA) with the fea. with the authority a bank guarantee equal to Telesource is an internationally recognised 100 per cent of the cost of the work. There power plant operator. Its expertise in working will be no connection cost for rural dwellers with the latest technology will bring an increa- as long as FEA makes and eight per cent return sed efficiency and the latest best practices on capital investment through tariffs. The to the operation of fea’s power plants. The customer's only cost would be the wiring of present electrical demand on Viti Levu of the house and paying FEA for the electricity 100,000 kilowatts is expected to increase to used. Electricity rates dropped by 1.5 cents close to 160,000 kilowatts during the next per unit from August 1. The reduction is being ten years. Meanwhile, fea and Australian - made possible by the continuing decrease in based Pacific Hydro Limited (PHL) signed a the FEA's total debt. This fell from $344 million joint venture agreement in June this year, to in 1987 to $123 million this year. The cost of develop renewable energy projects in Fiji servicing loans has dramatically dropped from over the coming years. Initially, the two utili- nearly $134 million in 1987 to a little more ties will continue to develop the $18 million than $14 million this year. Wainikasou and Vaturu Hydro schemes on Viti Meanwhile, four new generators costing Levu. Additionally, the joint venture is looking the FEA $28 million has been purchased. And at a $30 million wind farm located in the with their installation, FEA expects to save Sigatoka Valley area. The cost of the projects $2.5 million for the rest of the year. The will be shared equally between the joint generators will help meet the increasing venture partners. The projects are expected energy and demand requirements on Viti Levu to be operational in early 2004.

FIJI TODAY 2004 / 2005