Q1. As Chairman
of the Fiji Electricity Authority, what can
you tell us about your plans to develop renewable
energy sources and how do you measure the
importance of this for Fiji?
A1. FEA supplies virtually all the electricity
energy needs in Fiji, 70% of that energy is
already renewable. Our aim is to be a totally
renewable company by the year 2011, in other
words, by the end of this decade. That means
that we now have to use the technology that
is now moving into much more affordable range
(like wind-farming and more hydro) that could
replace the 30% of oil energy source. This
latter source creates environmental issues
like carbon emission and global warming for
instance. What the country also suffers from
every time we import fuel is foreign exchange
drain. This is about 30 million dollars a
year for FEA fuel alone. If we can replace
that by wind energy, other hydro source or
Biogas, clearly there is a national benefit
in terms of foreign exchange savings, in terms
of environment compliances, etc.
We are also importing technology because
Fiji is too small to be conducting R&D
by itself. As we move forward with renewable
substitution, FEA is partnering with overseas
technology companies, firstly so that we
can have access to technology and secondly,
so that we can have access to global practices.
We are too small and to isolated to keep
reinventing the wheel even if we could.
Our joint venture negotiations are now in
various stages of completion, all of them
comply to these basic criteria.
Q2. What are the privatisation plans
of the FEA?
A2. You have to ask the government about
that, it is the only shareholder. I do not
know of any plans to privatise the FEA and
the Board is not looking at it. What we have
to do though is to be competitive globally
in terms of deliverables such as energy cost.
We are cheaper in electricity tariffs, by
the way, than countries like Japan, Portugal,
France or Germany, that is what people do
not realize. Another deliverable is power
reliability. Our Fiji customers have suffered
greatly from Power reliability in recent past
and we have to improve this. The main complaint
is the duration of outages. We have to ensure
there are few and the outages are never long
enough to put business out of operation. We
are striving to improve this with the use
of technology and work practices and we are
benchmarking ourselves internationally so
that it becomes a point of focus in the future.
Q3. As Chairman of the Fiji Audio Visual
Commission, as compared to other competing
sites as an audiovisual production destination,
what would you consider to be the competitive
advantages of Fiji?
A3. First and foremost our tax incentives
have the edge on most. Further, for foreign
investors in this field the government has
already announced and had been past through
Cabinet a rebate amendment for foreign investment
who produce audio and film productions in
Fiji and that will be retrospective to the
1st of January. That will make it much easier
for American companies from Hollywood or Indian
ones from Bollywood. They can come in and
run their productions. They do not have to
worry about double taxation, as we have a
rebate system which is 15% for a certain minimum
amount of expenditures spent in Fiji. Anaconda
II and other productions are looking at Fiji
as a result.
Q4. What is the uniqueness, what are
the concrete advantages that the Studio
City offers that other similar countries
do not present?
A4. Second to none the tax incentives
are clearly one. Ideal locations for beaches,
jungles, rivers, rugged tropical mountains,
etc. We have a competitive advantage to other
countries because of our culture, which is
unique as a result of our isolation. Be it
for movies or for documentary type of production,
it offers great attraction in a film. We also
speak English as the first language. We have
a lot of budding actors and actresses that
can be available locally without having to
import them from abroad. And we have the Studio
City, which, in its ultimate conception, is
a one-stop shop film and audio production
centre with tax free incentives for those
who settle and are based in the Studio City.
Overseas employees earning over $100,000 FJD
a year, especially big stars, are tax exempt
under the Act. The Southern Cross Cable Network
which connects through Fiji is a big conduit
that allows us access to the rest of the world
via electronic means; it is the door to the
rest of the globe. The Southern Cross Cable,
for instance, is capable of running over a
1,000 full-length movies simultaneously. This
is a major opportunity for Fiji's economic
growth.
Q5. The Studio City Project is one of
the most important for Fiji to attract the
FDI that the country needs. What are the
activities or initiatives you undertake
to promote this project?
A5. The Studio City is a private sector
driven project. The Fiji Audio Visual Commission
is the regulator of the industry. Studio City
backers believes in Fiji enough as to put
in their private money to develop the concept.
They will have scaled downa replica of famous
New York City streets, video archives, and
they will be connected to the Southern Cross
Cable Network. In other words, state of the
art stuff. At the FAVC, we promote Fiji and
we promote the Studio City as an asset, which
people can use. The fundamental mandate however
is to ensure that the foreign investors are
aware of the tax incentives, that they are
aware of the wonderful location that they
can use to shoot scenes, that they are aware
of how friendly the people are, that they
are aware of the easy bureaucracy provided
by the FAVC.
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Q6. As member
of the Shell's board, the protection of the
environment is one of Fiji's priority for
the future of the country. What can you say
about Shell's activities in Fiji concerning
this issue?
A6. For all of us at Shell, health, safety
and environment have always been a top priority.
Shell, locally and globally, has a triple
line responsibility: Community, environment
and profit are of equal rank. That gives you
the sort of emphasis we put on our environment.
We are moving towards providing renewable
energy resources. Shell locally is a marketing
company and not a production or refining company.
It markets environmentally friendly products
such as lead free fuels, etc.
Q7. Mr. Mar, form your point of view, what
should the international business community
be looking at when they look at Fiji's economy?
A7. I think people should be looking at
the resilience of the economy of this tiny
little nation. Unfortunately for us, we have
some unfortunate recent events of history
(recent coups) but equally history showed
that we bounced back quite quickly. Most important
of all, history also showed that there has
not been in Fiji large scale and widespread
destruction and killing. The very last one
was probably the worst but compared to what
is happening elsewhere in the world it is
minor. People have to look at how quickly
the economy has bounced back from the disaster.
Most of the foreign investors who were here
at that time stayed. We have seen it all before
and we knew we were going to bounce back.
At the same time, I believe there is a very
strong will right across the nation that that
what happened will not take place again. Everybody
understands that if it happens again the impact
will probably be so disastrous that the recovering
time would be a lot more difficult. In the
political and business sectors, in industries
and amongst rural areas people have gone through
the shattering impact of the previous coups,
they would not want that to be repeated again.
Q8. Law and Order is a must to attract FDI.
We have heard a lot the words: Unity and
Reconciliation, how would you describe the
new Fiji that is currently being built and
the current investment climate in the country?
A8. In relation to law and order, it runs
on two levels and will depend to whom you
speak. On one level the biggest test for law
and order has come through with flying colours.
That is the perpetrator of the 2000 events
is now in jail. The court system worked and
the court decided. This government has often
repeated that it will put up with any court
decision as regards the issue with the Labour
Party court challenge. The Prime Minister,
whatever the decision is, will respect it.
On another level which is in terms of what
happens on the street, it is no difference
to any part of the world. You can get robbed
in Australia, in NZ or in any other part of
the world as you can get robbed in Fiji. In
relative terms our media in Fiji, unfortunately,
tends to sensationalize the things that would
not become news in other parts of the world.
In the same token, I am not denying that we
do not have a crime problem which is affecting
investor confidence, I am merely saying that
it is probably no different to other countries
but the Government must tackle this with vigour
to improve foreign and local investor confidence.
As for the business climate, I think it
is very positive because the government
is targeting investment as a cornerstone
for further economic recovery and actually
doing something on the ground with infrastructure
and venture money to help. They aren't just
talking.
Q9. What would be your advice to those
foreign investors coming into Fiji from
now on?
A9. Apart from normal due diligence work
and your visit to the Fiji Trade and Investment
Board, try and understand the culture in Fiji
as a pre requisite. That is spend time understanding
what is the necessary protocol to ensure that
the locals actually get on your side in order
to help you with your project. If you come
in with a bombastic approach it will be very
difficult. Get them on your side as part of
the team by speaking to them on basic issues
and with respect. I am talking about landowners,
workers and the government. There is a way
of approaching the bureaucracy that will give
you a result. Put everything on the table
as people will want to help resolve issues
if you respect them. After all, Fiji is a
small place and a small economy and your investment
of whatever size is important.
Q10. Mr. Mar, you are an example of a
success businessman that is in Fiji instead
of in other country in the world, why?
A10. My professional career has mostly
been overseas. I worked very early in my career
in a global oil company, Shell, and most of
my career has been outside Fiji and mainly
in Australia, New Zealand, Asia and Europe.
I owe a lot to Fiji in terms of education
and early opportunities. I became Chief Executive
from 1988 to 1992. My last position in Shell
before I retired in 2001 was Chief Executive
and Managing Director of a service company
serving the Arabian region, Asia, Australia
and New Zealand. With these kinds of global
exposure, I believe I have an obligation to
come back here and help in the corporate sector
as the government may please. So after retiring
from Shell I came back home, to Fiji, to help
out in any way I can. I feel fortunate to
have been given the challenge to be on the
Boards of some of the key organisations in
Fiji so that I can fulfil some of these obligations.
To be honest I am quite driven by a desire
to lift the level of corporate management
skills in Fiji.
Winne cannot be held responsible for unedited
transcription.
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V.I.P. INTERVIEWS
