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?
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.


What are the privatisation plans of the FEA?

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.


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?

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.


What is the uniqueness, what are the concrete advantages that the Studio City offers that other similar countries do not present?

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.


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?

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.

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?
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.


Mr. Mar, form your point of view, what should the international business community be looking at when they look at Fiji's economy?

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.


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?

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.


What would be your advice to those foreign investors coming into Fiji from now on?

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.


Mr. Mar, you are an example of a success businessman that is in Fiji instead of in other country in the world, why?

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.