Q1. Mr. Qarase,
after the last democratic elections one of
your personal initiatives was to re-structure
the functions of the Ministries. What were
the main objectives behind this restructuring
and how is this measure affecting the administration
of the country?
A1. The main objective was to build a
government that could deliver the promises
that we made during the election campaign.
The second purpose of the reorganization was
to take account of the fact that Fiji is a
small country composed of many islands, we
need to have a small government but at the
same time we had to evaluate the political
realities of the country. Taking these aspects
into account I determined that there should
be 21 ministries in order to respond to our
specific needs. I considered the qualifications
and the talents of the individuals that were
in my team, in the political parties that
won the elections, so that I could allocate
responsibilities to the people chosen to be
in the cabinet in line with their skills.
All in all I ended up with 21 ministries.
But any organization should be flexible and
ours is not an exception. One of the recent
moves has been the transfer of the communications
portfolio to the Minister for Finance and
National Planning, the Ministry for Works
is now Works and Energy, Transport and Civil
Aviation has become a new Ministry and the
Ministry for National Reconciliation and Unity
has come back to my portfolio.
Q2. Why was important for you to run
the Ministry for National Reconciliation
and Unity?
A2. The creation of this Ministry was
my personal initiative during the interim
administration. We never had a Ministry for
National Reconciliation and Unity before.
Because of our problems of year 2000, I thought
it was important to create this portfolio,
it was a priority to heal the wounds that
were obviously there after the events of May
2000. Looking back now I feel glad that I
placed emphasis in this Ministry, that I encouraged
to resolve the differences between different
communities in Fiji and also within those
communities, particularly within the Indigenous
Fijian communities.
Q3. Why have the communications duties been
transmitted to the Minister for Finance and
National Planning?
A3. Communication is a crucial part of
the infrastructure necessary for social and
economic development. Communication has been
changing rapidly due to rapid advancement
in technology. The Minister for Finance and
National Planning is also responsible for
Communications because of the importance I
attach to it. It is also linked to all aspects
of development planning which also comes under
the portfolio of the Minister for Finance
and National Planning.
Q4. Diversification has always been a key
word in your agenda. In order to regain
interest in sectors like Mining, Textile,
Timber, Fishery or Telecommunications, how
is the National Budget for 2003 supporting
this diversification process?
A4. The policy of diversification of the
economy has been there for some time, even
before my government was established and it
is an absolutely necessary policy for Fiji.
Fiji has relied for too long on two industries.
Our reliance on the Sugar and Tourism Industries
has been quite overwhelming in relation to
the entire economy and Fiji cannot afford
to rely any more on one or two industries
because of globalisation and other factors
that are taking place outside Fiji. It is
important that we vigorously pursue a diversification
policy to broaden the base of our economy.
The more diversified the Fijian economy, the
better our chances of providing jobs for our
people. We have decided to focus on certain
key sectors where we believe we have comparative
advantages: Tourism, which is our foremost
industry; Fisheries and Forests, where we
have some advantages; some selected Agricultural
activities; Information, Communication and
Technology, another area with a high potential
for growth; Mining, where the government is
reviewing the legislation with the aim of
encouraging foreign investments into the country;
Textiles and Garments, a sector that is going
through a fairly difficult period because
of overseas competition. We are developing
special access arrangements with certain countries
so that this industry can have better growth
prospects in the future.
Q5. Sugar and Tourism are developed and
recognized strong sectors of Fiji's economy.
Others like Forests, being Fiji the country
with the largest mahogany plantation in
the world, are not so familiar for foreign
investors. From your point of view, what
are the sectors in Fiji in which investors
should be taking a closer look?
A5. There is no doubt that Tourism still
holds the highest growth potential for Fiji.
It is an industry that has always been growing
and it has a tremendous potential. We have
set the necessary incentives for foreign investors,
we have a clean environment and our population
is a big asset to tourism. We welcome visitors
and treat them very well so Tourism will continue
to grow very strongly. In addition to that,
we have the only mature Mahogany plantation
at this time in the world. We would like to
start processing that and we hope this will
take off during the next twelve to eighteen
months. We would like to have value adding
to be done in Fiji concerning this commodity.
We will not allow the selling of logs and
we will process them here at least into timber
products. We believe we have the incentives
for investors to come and do further downstream
processing of timber turning it into other
forms of wood products. The timber industry,
relating to Mahogany and Pine, has a lot of
potential for growth. On top of that, we have
a fairly large native forest. Fisheries offer
a very high potential as well. The central
and west Pacific has got the largest stock
of Tuna at this point in time in the world.
We are part of this region and we are reorganizing
the Fishing sector by ensuring that we will
limit the number of licenses that we issue
to fish in our waters. Our objective is that
we must have a sustainable fish stock out
there and that we do not only fish but also
process in Fiji.
Q6 Fiji is quite a dispersed country
with many islands, many potential tourism
destinations to be developed. What is your
vision of the Foreign Investor in the Tourism
Industry as a developer of remote areas
of the country?
A6. Fiji has many beautiful islands with
great tourism potential. We welcome foreign
investors to develop some of these islands
for tourism. They also offer excellent opportunities
for the development of eco-tourism. Eco-tourism
development involving partnership with local
resource owners would be ideal for these islands.
Fiji offers attractive incentives for tourism
development. Tourism is the largest foreign-exchange
earner for Fiji with good growth potential.
Foreign investors who invest in tourism in
Fiji never regret investing here. Their investments
have been profitable operating in a friendly
and secure environment.
Q7 To host the increasing amount of tourists
Fiji needs more hotels. Could you tell our
readers what are the changes that will take
place, if any, concerning the land leasing
in Fiji?
A7. Land leasing for hotel development
in Fiji has never been a problem. Land leases
for hotel development are given for 99 years.
They provide a good partnership basis for
investors and resource owners. A number of
5-star hotel plants and other tourist facilities
are built on leased land. They have continued
to operate profitably. Leasing of land is
normally from the Native Land Trust Board
which administers 87% of the total land area
in Fiji. The terms and conditions of leasing
are well documented and transparent.
|
Q8. The National
Budget for 2003 is more business oriented
than former plans. Fiji needs to increase
investments from the current 11% of GDP to
a 25% of GDP in order to reach the necessary
economic growth. In this context, what is
it being reviewed in the 1999 Foreign Investment
Act?
A8. The Foreign Investment Act that became
law a few years back has some deficiencies
and we have taken the opportunity to review
it so that we strengthen the legislation with
the aim of attracting more and more FDI into
the country. Our level of investment in Fiji
is running at around 11% of GDP, which is
extremely low for a developing country. Developing
countries are currently achieving a 25 to
30% of GDP investment levels and our aim is
to reach these figures. This is a massive
task, we require more than double our current
investment levels in order to have a sustained
economic growth of around 5% of GDP for the
next few years. We need that kind of growth
to provide the jobs for our unemployed people.
Our Budget 2003 is pro business but it is
also pro poor and pro rural. There is a lot
in the budget to strengthen the business sector
but there are also a lot of programmes that
work towards alleviating poverty.
Q9. The sugar industry has received an
important allocation in the 2003 Budget.
Would you say that these measures are sufficient
to make of Fiji an efficient and reliable
producer and supplier of sugar?
A9. I have taken the responsibility to
restructure our sugar industry because I believe
it is crucial for our country. The industry
is in serial troubles and I personally wanted
to supervise the restructuring process of
this industry. We are allocating substantial
resources in the 2003 Budget and that is only
the beginning of this reform process. What
we have in the Budget for next year will not
be sufficient but the restructuring process
will take five years from now. What we have
allocated for 2003 aims to turn around our
milling company, the Fiji Sugar Corporation,
from its current insolvent situation to a
sound and stable company. This is the first
priority, to keep the mill operating during
the next year. We are putting 20 million Fijian
dollars in equity and we are writing off 34
million Fijian dollars in loans. These two
measures will immediately turn the company
around into a viable operation. Beyond that,
we will need to look at the improvement of
the transportation system of the sugar cane
to the mills. There is also a need to look
at the railway system that supports the sugar
industry and we will have to look too at the
size of the farms, some are very small and
we may have to amalgamate them. We also have
to look at the social implications that the
restructuring process will cause. I have appointed
a Sugar Restructure Steering Committee to
work out the details and make recommendations
to the government for whatever is needed to
proceed correctly with this process. These
measures are not sufficient, it is just the
beginning. The restructure is going to take
five years and it will be a very painful exercise
for the whole of Fiji but the ultimate objective
is to ensure that Fiji becomes a very efficient
producer and a competitive supplier of sugar
in the world. We have to be prepared for the
time when subsidies from the European Union
are eventually phased out.
Q10. Education gets the largest share
of the Budget, F$221.5 million. If we compare
Fiji to neighbouring countries, how would
you qualify the educational level of the
Fijian workforce?
A10. Our educational level compares well
with the level of education in countries like
Australia or New Zealand. Our population speaks
English very fluently and it is a literate
population. We believe that education is the
key for development so we will continue allocating
resources to this sector as a matter of priority.
Q11. The 2003 Budget theme "Securing
Sustained Growth for as Peaceful and Prosperous
Fiji" is quite linked to aim of the
South Pacific Games that will take place
in Suva next June 2003. Foreign Investors
have expressed that Stability and Unity
is crucial to come into Fiji. As Minister
for National Reconciliation and Unity, what
would be the message that the Fiji Islands
wants to launch during these Games to the
International Business community?
A11. Fiji is looking forward to the South
Pacific Games to be held in Suva next year.
Fiji offers a secure, stable and peaceful
Fiji for the Games and for all time. For investors
to be attracted to Fiji, we must provide the
right environment and incentives. Fiji provides
these necessary pre-requisites. The message
we would like to send out during these Games
to the international business community is
that Fiji is back in business and in top gear.
Fiji offers an excellent investor destination
which is friendly, secure, and profitable.
Q12. Having this high-educated workforce
in mind, what is the potential that Fiji
has to become the economic hub of the Pacific?
A12. Fiji is already the hub of the Pacific.
We have been the hub of the Pacific for some
time now due not only to our level of development
but also because of our location in the Pacific.
We are the link between the Pacific Islands
and the rest of the world in terms of communication.
Our air and sea transportation connections
make Fiji the crossroad between the region
and the rest of the world. The fact that the
Southern Cross Cable goes through Fiji offers
a lot of advantages in terms of connections
in the IT area and make Fiji the hub of the
Pacific. We are a more developed country as
compared to the other Islands of the Pacific
in terms of infrastructure and also in terms
of regional development. The Pacific Islands
Free Trade Agreement (PIFTA) will come into
force soon and Fiji stands to gain significantly
in the area of trade because of our capacity
to produce goods and services that other Islands
cannot.
Q13. The Fiji Islands is back in the
Commonwealth. There is a Commonwealth Trade
Congress next March in New Delhi. As Minister
for Information, what is the message you
would like Fiji to communicate to its Commonwealth
counterparts?
A13. The message is clear: Fiji is back
in Business. We have returned from those dark
days of year 2000. We have had our general
elections, we now have a parliamentary system
of Government, law and order situation is
normal, our economy is recovering quite well
and political stability is back in place.
We are happy to be back in the Commonwealth,
we are taking our right to be there and we
believe that we are a responsible Member of
the Commonwealth. We value the principles
of the Commonwealth, we are glad to be back
and we are also glad to receive positive comments
from our neighbours Australia and New Zealand.
We feel particularly pleased with the complimentary
remarks from the Prime Minister of Australia
who has recently mentioned several times our
rapid and secure economic and politic recovery.
Q14. Mr. Qarase, the International business
community showed its enthusiasm when a person
like you, with a business background, started
ruling this country. Can you elaborate a
little bit more concerning your professional
background?
A14. My business background relates mainly
to the banking industry. I was Chief Executive
of the Fiji Development Bank for 14 years,
from 1983 to 1997, and after that I spent
three years as Chief Executive of the Merchant
Bank of Fiji. My professional experience is
entirely in the banking area. My political
background is zero till year 2000. I was never
interested in politics but when I was requested
to join the interim government, the challenges
the country had to face became my personal
challenges. We formed a new party and we won
the elections. I am determined to face those
challenges and to accomplish the objectives
Fiji has to achieve to become a prosperous
country. I have had 25 years experience in
the Fiji Public Service which has given me
a fairly good knowledge of public administration,
of how it is like to run a Ministry for instance.
I was Permanent Secretary for Commerce and
Industry, then I became Deputy Secretary for
Finance and then Secretary for the Public
Service. Running a government all of a sudden
was not too much of a shock for me.
Winne cannot be held responsible for
unedited transcription.
|
V.I.P. INTERVIEWS
