Value Added Tax to remain at 12.5%

Value Added Tax will remain at 12.5% from 1 January 2007 and not increase to 15% as had been recommended by the former Qarase Government. The Fiji Revenue and Customs Authority said that the increase was not passed as law by the former Government, thus, there will be no increases. The announcement gives some respite to lowly paid consumers and those that have lost jobs as a result of the military takeover. The interim government is looking at ways to make up for the shortfall in government revenue that was to have been assisted with the increase in Value Added Tax.

Flour Mills of Fiji to construct a F$15 million brewery

Flour Mills of Fiji, a company listed on the South Pacific Stock Exchange, will be constructing a F$15 million brewery next year. The brewery will employ 200 workers in a four-storey building. Processing machines are to be imported from China with the brewer contracted from overseas.

The company is hoping that the Interim Government will approve their proposal for tax benefits, duty free import of machines and accelerated depreciation for the F$15 million investment.

The company will make three kinds of beer for import to Australia, New Zealand and other Pacific Island countries.

This planned move by the company should bode well for investors in the company.

Note from GV : For investment advice, pls contact our company, Gilbert & Samuels Company Limited, on e-mail gilbert@connect.com.fj or telephone +679 3396427. Our principal, Gilbert Veisamasama Jr is an investment advisor licensed by the Capital Markets Development Authority of Fiji - Fiji's capital markets regulator.

Military government reviews 2007 Government Budget

The Interim Military Government is in the process of reviewing the 2007 Government/National Budget. The Budget was a source of much discussion and disagreement when it was tabled in Parliament by the Qarase Government. Its most alarming features was a recommended increase in Value Added Tax (VAT) to 15%. Fiji consumers already pay 12.5% VAT on goods and services they buy. The Military has not said what its review would entail but it would be interesting to see what comes out after that review.

European Union not to withdraw assistance for a while

A European Union official in Suva has confirmed that it will not be withdrawing any assistance to Fiji for a while. The EU will be meeting to discuss and debate the issue of suspension of aid and assistance which would take from 6 to 8 months. The EU's biggest aid program underway is a F$24 million project to enhance the education sector in Fiji. It is expected that the EU will be meeting with the interim government to discuss issues before a further decision is made.

Over F$750 million investment projects underway

More than F$750 million worth of private sector investments are underway, according to the Fiji Islands Trade and Investment Bureau (FTIB), and will be completed between 2007 and 2008.

FTIB has set up an action group to continue promotion of trade and investment opportunities in Fiji. The Bureau said that while it would contribute to promote trade and investment opportunities in its traditional markets, it will also redirect focus towards the Asian and Middle Eastern markets including India, China, Malaysia, Indonesia, Taiwan, Korea and Dubai.

About F$235 million projects have been established this year, compared to the Bureau's 2006 target of F$200 million.

FTIB said that while the primary focus of investment was in the tourism sector, companies were also investing in the agriculture and fishing sectors.

Note from GV : Foreign investors that require assistance for obtaining all necessary approvals and permits to set up business in Fiji can use our company, Gilbert & Samuels Company Limited. Our contacts are by e-mail gilbert@connect.com.fj or telephone +679 3396427 or +679 9921427.

Bank South Pacific to provide cross country banking

Bank South Pacific (BSP), a Papua New Guinea-based bank that opened a branch in Suva yesterday, said that its presence would assist in the development of bilateral trade between Fiji and PNG.

The bank will also provide cross-country banking facilities for PNG companies established in Fiji and to those that might expand to Fiji in future.

BSP said that it would expand and open a branch in Nadi during the first 12 months of operations and will also be upgrading its core banking system to provide up-to-date transaction and savings products and a full range of electronic banking services including ATMs, EFTPOS and internet banking.

The bank said that it would add a further dimension to the financial system in Fiji and provide an alternative to the established banks, ANZ and Westpac.

As at 30 June 2006, BSP had total assets of F$2 billion, deposits of F$1.8 billion and a loan portfolio of F$40 million. It recorded after tax profits of F$29 million for the first six months of this year which compares favourably to the full year profit of F$55 million made last year.

BSP acquired the operations of Habib Bank Limited of Pakistan.

Note from GV : For those that need investment or business advice, contact our company, Gilbert & Samuels Company Limited, on e-mail gilbert@connect.com.fj or telephone +679 3396427 for assistance. Our principal, Gilbert Veisamasama Jr, is an investment advisor licensed by the Capital Markets Development Authority - Fiji's capital markets regulator.

PNG bank opens in Suva today

Papua New Guinea bank, Bank South Pacific Limited (BSP), opens in Suva today after obtaining a banking licence from the Reserve Bank of Fiji. BSP takes over the operations of Habib Bank Limited of Pakistan, which was been operating in Fiji since 1991. BSP is the largest bank in PNG and is listed on the Port Moresby Stock Exchange. It has a network of 39 branches across PNG and one overseas branch at Niue. The bank is on an expansion drive in the Pacific. Apart from setting up in Fiji, it also has been in arrangements to acquire the operations of the National Bank of Solomon Islands. The bank is located at the same premises that was used by Habib Bank at Renwick Road in Suva.

Interim Government reassures investors

The Interim Government has reassured investors for investing and to continue to invest in Fiji. The Interim President, Frank Bainimarama, has made it clear that the country is safe for investment and have vouched to safeguard, protect and facilitate investment in Fiji by foreign investors.

Note from GV : Foreign investors that require assistance to invest in Fiji, can contact our company, Gilbert & Samuels Company Limited, for assistance. Our contacts are e-mail gilbert@connect.com.fj or telephone +679 3396427.

CMDA looks at projects

The Capital Markets Development Authority would continue to provide an attractive investment alternative for companies intending to raise capital in the Fiji capital markets. The Authority has several projects in the pipeline.

The CMDA said that capital markets were always focussed on long-term development and that current events in Fiji were unlikely to deter investors and businesses who were focussed on investing long term.

Film industry in Fiji confident

The Fiji Audio Visual Commission will continue to promote Fiji as a great film destination because the country still has the most attractive tax incentives in the world for film production.

The Commission's comments came after CBS Limited wrapped up its shooting of Survivor in Fiji last week. CBS earlier pulled out some of production staff from Suva and apart from some minor issues with travel and delivery of supplies, the show was not affected.

The company said that its producers on location were assured by the Fiji military what they were safe on the remote island where they were filming and that the cast and crew would be permitted to leave the country safely when the show wraps production.

The Fiji Audio Visual Commission said it will continue to promote Fiji as a great film destination, with its many exotic and untapped locations, its unique culture and multiracial and multi-religious people.

The Commission is planning to conduct aggressive promotional campaigns abroad next year.

Note from GV : Foreign investors that wish to invest or set up business in Fiji can contact our company, Gilbert & Samuels Company Limited, for assistance. Our contacts are by e-mail gilbert@connect.com.fj or telephone +679 3396427.

Internet providers welcome competition

Competition in wireless internet services were welcomed by the two service providers in the industry, Unwired Fiji and Connect Fiji, after a move by Fiji Telecommunications Limited (FINTEL) to provide those services.

Unwired Fiji said there was room for competition in that industry in Fiji while Telecom Fiji, whose subsidiary is Connect Fiji, said that competition was good for the industry.

Consumers should now see more competitive rates offered in the wireless internet sector.

Tourism Action Group works on rebuilding confidence

The Tourism Action Group (TAG) has been reconstituted and will focus on rebuilding confidence in Fiji as a preferred holiday destination. TAG will advise Fiji's source markets for tourists that despite the political events, Fiji is still beautiful and as friendly as ever. The body's focus will be on the need to mobilise its efforts with other tourism related businesses into rebuilding the industry.

Interesting times for investors

These are indeed interesting times for investors who have already invested in Fiji and those considering to invest their hard-earned dollars. What does one do? Buy government papers? Will government be able to make good its promise to honour those papers when they fall due? Do you invest here, yes, right here in Fiji? If you do, what options are available to you? How about investing overseas? Investing in Australia and NZ are options that could be considered. How do you go about that with all the foreign currency and exchange control restrictions just put in place by the Reserve Bank of Fiji yesterday? For advice, contact our company, Gilbert & Samuels Company Limited, on e-mail gilbert@connect.com.fj or telephone +679 3396427. Our principal, Gilbert Veisamasama Jr, is an investment advisor licensed by the Capital Markets Development Authority - Fiji's capital markets regulator. Read his profile at the right hand side of this blog.

Property gives best returns: study

We duplicate here the outcome of a study in Australia which was reported on www.news.com.au.

Investors should be devoting at least 20 per cent of their investment portfolio to direct property assets in the retail, office and industrial sectors, a study shows.

The study commissioned by the Australian Direct Property Investment Association (ADPIA) found increasing the direct, or commercial, property component in an investment portfolio significantly reduced risk and the chance of investment loss.

The research looked at the performance of 11 different asset classes over 10 and 20 year periods, such as local and overseas shares, residential and listed property, Australian fixed interest and cash, and managed funds.

"ADPIA's view is we should have at least 20 per cent in direct property," ADPIA immediate past-president and executive committee member Richard Cutler said.

Mr Cutler, who also heads up Macquarie Bank's Direct Property division, said there was a very significant mismatch between the findings and what was happening in the market, with the allocation to commercial property from investors and their advisers declining since the 1980s.

"It (property) is the financial wealth of the world and ... we've got a very low and decreasing allocation to it," he said.

"So common sense says we've got it back to front and this research will really flesh that out."

Atchison Consultants managing director Ken Atchison, who carried out the study for ADPIA, said the decline was caused by a lack of available research, as well as behavioural finance.

"A market goes bad and everybody withdraws – that's the time when you should invest ... it's a classical psychological reaction," Mr Atchison said.

Investment in direct property peaked in the property boom of the late 1980s and early 1990s.

He said the research showed direct property provided strong total returns of 9.5 per cent in the 20 years to June 30, 2006, and 10.5 per cent over the 10-year period, with industrial and retail assets the best performers.

In the 10 years to June 30, direct property also produced the highest levels of income return of any other asset class, at 7.2 per cent, the report found.

According to the study, the asset class also exhibited the lowest volatility of income returns over both periods, a valuable characteristic that made a significant difference to long-term returns because it reduced the chance of making a timing error entering or exiting the market, Mr Atchison said.

He said a fully diversified property portfolio should be made up of "four states, three sectors", being NSW, Victoria, Queensland and Western Australia, and across the office, retail and industrial sectors.

ADPIA represents property industry professionals such as fund managers, custodians and financiers and was set up as the peak industry body in 1999.

Note from GV : For investment advice in Fiji, contact our company, Gilbert & Samuels Company Limited, on e-mail gilbert@connect.com.fj or telephones +679 3396427 or +679 9921427. Our principal, Gilbert Veisamasama Jr, is an investment adviser licensed by the Capital Markets Development Authority of Fiji - Fiji's capital markets regulator.

Interest rates continue to rise

Commercial banks' interest rates in Fiji continue to rise. Whilst this will affect borrowing for investment purposes, it is good for those seeking to invest. For one year term deposits, ANZ now pays the best rate at 7% followed by Credit Corporation Fiji Limited at 6.75% and HFC Finance at 6.5%. While some investors may be a bit hesitant to invest at the moment, it is important to point out that none of Fiji's banks have failed as a result of previous political crises. For more information and advise, contact our company, Gilbert & Samuels Company Limited, on e-mail gilbert@connect.com.fj or telephone numbers +679 3396427 or +679 9921427. Our principal, Gilbert Veisamasama Jr, is an investment adviser licensed by the Capital Markets Development Authority - Fiji's capital markets regulator.

Note from GV : For self catering accommodation in Suva, check out our two bedroom rental home through links at the right hand side of this blog and then get in touch with us on the contacts noted above. Book early for the Southern winter, June to September 2007!

A good time to buy?

With what is happening now in Fiji, investors should keep a close watch on the following :

• property market as prices there is likely to come down with the rise in interest rates and the loss of jobs making it difficult for some people to be able to service their residential loans;
• sell out of businesses as owners try to make something out of them before things go down further;
• stock market as more existing investors will likely sell their interests pushing share prices down.

This may provide a good opportunity for investors who target buying low and selling when things go up again. It is also a good time to come for a holiday as accommodation providers bring down their rates to attract people after the mass cancellations of bookings by tourists and tour providers. For more on this, contact our company, Gilbert & Samuels Company Limited on e-mail gilbert@connect.com.fj or telephone +679 3396427.

South Pacific Stock Exchange exceeds F$1 billion mark

The South Pacific Stock Exchange (SPSE) has exceeded the F$1 billion mark during the financial period ending 30 June 2006, thus creating history.

A total of 3.8 million shares exchanged hands on the trading floor during the year, an increase of 65.8% compared to the same period last year. Consideration for shares traded totalled F$9.4 million, almost double the F$4.9 million consideration last year.

To compete with lower interest rates being offered during the most part of the financial period to June 2006, a lot of businesses opted for debt options to finance their expansion projects rather than equity.

However, with the situation on interest rates reversed now with these rising, a number of businesses will now seriously consider raising funds through the equity market.

Over the year, the total return from companies listed on the SPSE averaged 24.2% with a dividend yield of 3% and capital growth of 21.2%. 13, out of 16 companies listed, declared and paid dividends with a total of F$40.8 million distributed to shareholders during the period.

Institutional investors will continue to have a major impact on the level of activity in the market and the increase in private equity and venture capital projects by some of these institutions will promote listing in years to come as these institutions look for exit strategies or objective valuations of their investments.

Note from GV : For those considering listing on the SPSE, our company, Gilbert & Samuels Company Limited, can assist with preparing your listing application and all submissions required to the regulatory authority, the Capital Markets Development Authority. To contact us, e-mail gilbert@connect.com.fj or call telephone +679 3396427.

FTIB sets investment record

About F$235 million worth of projects have been established this year, the Fiji Islands Trade and Investment Bureau (FTIB) said. The figure represents the net value of the 182 new businesses that have been set up.

This is a record achievement for FTIB given that its 2006 target was only F$200 million worth of projects. The Bureau has, however, exceeded this year’s target in less than 9 months.

The projects have reportedly created 4,470 new jobs.

Furthermore, FTIB has approved a total of 317 investment applications which is indicative of the level of interest in Fiji as an investment destination. If all the applications are implemented, it could bring another F$767.4 million into the country.

The Bureau said that the primary focus on investment was in the tourism sector but overseas companies had also invested in agriculture and fishing.

FTIB has attributed part of the success to a major improvement in turnaround time for processing investment applications which has been part of Government’s efforts to inject more efficiency into the investment approvals process.

Corporation invests F$8.2 million

Fiji Investment Corporation Limited has invested F$8.2 million in its five joint ventures with private sector companies in the tourism, agriculture and fisheries industries.

The corporation said it achieved a return of about 33% on its portfolio of investments in 2005. These were in the form of dividends, interest, income and capital gains.

The capital gain arose mainly as a result of the sale of the Grand Pacific Hotel property amounting to over F$3 million.

In line with Government's Look North Policy, the Corporation has invested into a joint venture with Kilowen (Fiji) Limited and Kontiki Growth Fund, to construct the Savusavu Harbourside complex's first stage. The stage involves the construction of a two storey complex which would house 14 luxury split level apartments on the top level, with professional offices and retail shops on the ground floor.

Breadfruit exports hit a high

Breadfruit exports increased by 21% last year compared to 2004 and exporters anticipate further increases given the high demand. The Ministry of Agriculture said 17 tonnes of breadfruit was exported last year compared to 14 tonnes in 2004.

The Ministry said there was a big demand for breadfruit in Australia and New Zealand. It said that at present breadfruit was not grown in organised plantations and the ministry's long term project was to have a breadfruit plantation.

National Exports Limited, a company exporting breadfruit, said there was a big demand for breadfruit overseas. He said his company exported "uto dina" (a type of breadfruit) to New Zealand and the United States at F$2.80 to F$3.00 a kilogram. "Uto dina" is preferred because of its taste.

Note from GV : Foreign investors that wish to set up business or invest in Fiji can contact our company, Gilbert & Samuels Company Limited, for assistance. For further information, send us an e-mail on gilbert@connect.com.fj or call telephone +679 3396427.

Fiji/NZ Work scheme by April

New Zealand authorities say a seasonal work scheme that will be open to workers from Fiji and other island countries, is expected to be activated by April 2007. The New Zealand Department of Labour said the scheme is yet to be finalised and may take some time.

Interested candidates for the temporary work permits to work on New Zealand's horticulture and viticulture industries will have to wait till next year to apply.

The New Zealand authorities are still fleshing out the details and will need to talk with employers there about how the scheme will work.

The scheme will enable workers from countries such as Vanuatu, Fiji and Samoa to work for about four months on fruit orchards and vineyards in New Zealand.

Note from GV : Check out our two bedroom rental home in Suva through links at the right hand side of this blog. The home has seaviews and is equipped with a Personal Computer and Broadband Internet access for guests' use. To contact us, you can e-mail gilbert@connect.com.fj or call telephone +679 3396427.

Suva Chamber of Commerce & Industry : 2007 Budget Discussion

The Suva Chamber of Commerce is organising a discussion on the 2007 National Budget on Thursday, 9 November 2006, 6.30pm to 8.30pm at the Lali Room, Holiday Inn, Suva. The discussion will include cocktails. Entry fees are : F$30.00 for members and F$50.00 for non-members. Limited seating. Contact Ms Bibiana Marama on telephone +679 3314044 for details.

What's in the 2007 National Budget for Foreign Investors

Government has announced its Budget for 2007. The Budget has some features which might be of assistance to foreign investors who wish to invest or set up business in Fiji. One of the major features have been an increase in Value Added Tax (except on essential food items) to 15% from the current 12.5%. We will be reviewing and summarising those features and putting it up on this blog. For any particular queries, you can e-mail us on gilbert@connect.com.fj.

Fiji TV expands to Tokelau

Fiji TV will be providing Sky Pacific services to Tokelau in a two-year deal signed with Teletok Corporation. This would bring to 6 the number of licensed Sky Pacific distributors in the Pacific region.

Teletok Corporation, Tokelau's governmental telecommunications company, is the sole provider of telecommunications on the island nation.

Sky Pacific will provide for the first time, 100% television coverage to Tokelau.

Note from GV : Check out our two bedroom rental home in Suva through links at the right hand side of this blog.

Leaders to discuss and resolve land issue in 2007

The Prime Minister and the Leader of the Labour Party will discuss and resolve the land issue early 2007.

The PM said that Government would form a tripartite forum to discuss the land issue. He added that the chances for land issues to be resolved were good as they had been having discussions with the Fijian Affairs Board and the Native Land Trust Board while discussions with the Labour Party have also been good.

One of the main sticking points in trying to resolve the issue is whether to use the Agriculture and Landlord Tenants Act (ALTA) or the Native Lands Trust Act (NLTA) as the main law to govern land use and tenure. About 84% of the land in Fiji is owned by indigenous Fijians and cannot be alienated. The lands are administered on behalf of village groups by the Native Land Trust Board.

PM calls for smaller civil service

The Prime Minister has called for a reorganised and cost effective civil service in order to achieve a stronger economy, more employment and to reduce poverty. The comment was made at the annual civil service awards function at the FMF Dome on Friday night, 3 November 2006.

The PM said the civil service consumed far too much of government funding in its operating expenditure but that this would now be controlled to allow for an increase in Government's capital investment expenditure.

This, the PM said, would permit Government to spend more money on education, health, agriculture, rural development, and law and order.

The PM said there was also a need to stop laxity and abuse in spending public funds, considering the instances of corruption that continued to surface.

In the meantime, the Chairman of the Public Service Commission had to ward off criticism of providing annual civil service awards in a service which is still not productive and efficient enough.

The Chairman said that major improvements in the service will not take place until the reform process begins, adding that they have been given 2 years to do that.

Shell Fiji's operations bought by french company

Shell Fiji's operations have been bought by a french based company. Now known as Total Fiji, Shell Fiji's operations was bought by the french company together with operations in Samoa and Tonga. Shell's operations at New Caledonia, Vanuatu and French Polynesia have been bought by Albert Moux and Partners.

The takeover completes months of negotiations between all companies.

Fijian Holdings Limited sets record profit

Fijian Holdings Limited (FHL) has recorded its highest profit after tax of F$16.9 million for its financial year ended 30 June 2006. This compares with F$12.4 million made for the 2005 financial year.

The result this year was driven by revenue growth of 26% which was mainly attributed to good performance by Fiji Industries Limited and Basic Industries Limited - two subsidiaries of FHL which operate in the booming construction sector.

Basic Industries was the key performer for the group and contributed its highest profit after tax to date of F$5.5 million.

Fiji Industries Limited enjoyed its first full year of operation under a new production process which helped the company achieve a 12% growth in cement production.

The group's investment portfolio also grew (by 114%).

Fijian Holdings shares are traded on the South Pacific Stock Exchange.

Atlantic Packaging Company turnover falls

The financial year ended 30 June 2006 saw the turnover for Atlantic Packaging Company Limited, a company listed on the South Pacific Stock Exchange, fall to F$5.3 million from over F$6.1 million recorded in the preceding financial year. Likewise, profits fell from F$0.31 million to F$0.15 million over the same period.

The fall in turnover and profits have been attributed to a continued deterioration in demand from the garment industry, although this has been countered by an increase in supply to the Biscuit Company of Fiji.

Note from GV : Individuals and groups that need investment advice can use our company, Gilbert & Samuels Company Limited. Our principal, Gilbert Veisamasama Jr, is a licensed investment adviser and has over 17 years experience in the financial sector in Fiji. Our company has now consulted to two major financial institutions and has provided legal advice to a subsidiary of the Fiji National Provident Fund. To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Fiji investment laws relaxed

Foreign investors will be allowed to enter restricted activities without local shareholding. However, approvals will be at the discretion of the Minister responsible for investment.

The Foreign Investment Act defined "reserved" and "restricted" activities. Agriculture is listed as a "restricted" activity and a foreign investor that wishes to do business in the agricultural sector must have at least a 40% equity held by Fiji citizens.

The amendment now provides the Minister responsible for investment discretionary authority to allow a foreign investor to invest in "restricted" activities without local equity participation.

The Minister's evaluation and approval will consider issues such as " the business history of the foreign investor; history of the foreign investor; the financial ability and capacity of the foreign investor; the management systems being brought in; the expertise and level of technology to be introduced; the type of capital intensive agro-businesses coming in; the need for such investment; and any other relevant matters.

The 40% local equity participation will remain for activities such as market gardening, cane farming and less capital intensive forms of farming.

Note from GV : Foreign investors that need assistance to invest or set up business in Fiji can use our company, Gilbert & Samuels Company Limited, to facilitate all necessary approvals, licences and permits. To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Colonial National Bank makes F$8.89 million after tax profit

Colonial National Bank has made F$8.89 million after tax profit for the financial year ended 30 June, 2006. The bank's key disclosure statement published in the Fiji Times of 31 October 2006, stated that the bank's return on assets was 1.64% with a total assets growth of 20.9% from the preceding financial year. The bank's capital adequacy ratio was 10.9% compared to a minimum of 8% required by the Reserve Bank of Fiji. No comparative figures were given for the bank's performance over the preceding financial year. Note from GV : Business travellers to Suva who need accommodation can try out our two bedroom home. The home has a Personal Computer and Broadband Internet access provided for guests' use as is going at a promotional rate of F$112.00 per night (for the entire home). Check out links at the right hand side of this blog for details on amenities and view photos of the home. To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

HFC Finance achieves record profits

HFC Finance announced a record profit after tax of F$1.926 million for the year ended 30 June 2006. Out of the profits, shareholders have announced a total dividend of F$1.7 million for the period. Highlights for the period included :

• strong growth in Gross Loans & Advances offset by lower margins;
• total operating expenses maintained within 58.9% of total revenue;
• steady decline in total impaired assets during the year;
• general and specific provisions maintained at 150.8% of total impaired assets;
• capital adequacy ratio at 15% within the Reserve Bank of Fiji's requirement of 10% for credit institutions.

During the second half of the last financial year, the company concentrated on completing its new premises in Suva and has just moved into it. The new premises is on top of the old premises in the old Velop House in Suva.

The company is building up its commercial lending area and is also in the process of applying for a full banking licence from the Reserve Bank of Fiji.

HFC Finance is wholy owned by the Fiji National Provident Fund (75%) and Unit Trust of Fiji (25%). As such profits made by the company is ploughed back to members through to Fiji National Provident Fund and to investors with the Unit Trust of Fiji.

To view more of what the company has to offer, please visit the company's website on www.hfc.com.fj.

Government looking for investors to develop Batiri (Citrus) Farm

Government is looking for investors who can commercial develop the 845 acre Batiri (Citrus) Farm. The farm was a government commercial company leased out to Food Processors (Fiji) Limited. Government will provide the investor with technical assistance. The Agriculture Ministry says that the land is ideal for farming sheep, citrus, sugar cane and other crops. Applicants who have a proven track history and experience in commercial agriculture farming will be looked at. Other conditions required is that they will provide jobs to locals and will provide new training and skills to local growers. The investor is required to introduce new technology, expertise and ideologies in commercial agriculture farming that could be hived off to local farmers.

Pacific Plan okayed

Pacific Island leaders have considered the Regional Institutional Framework Review and agreed to establish a taskforce to work through identified issues and report back to the leaders at next year’s Forum Meeting in Tonga.

Leaders tasked the Forum Secretariat to proceed with an exercise aimed at refining its core priorities and to progress the recommendations relating to the establishment of regional offices or the placement of staff members in each member country.

The report, Pacific Plan Action Committee (PPAC), on a new regional institutional framework was commissioned by a project team that proposes significant changes to existing regional institutional arrangements.

Through these changes, it envisages the creation of a framework to facilitate further development, implementation and monitoring of the Pacific Plan.

Regional organizations under discussion are agencies represented on the Council of Regional Organizations in the Pacific (CROP) and include the Fiji School of Medicine, Forum Fisheries Agency, Pacific Islands Forum Secretariat, Pacific Islands Development Programme, and the Secretariat of the Pacific Community.

Note from GV : For consultancy on financial sector related aspects of the Pacific Plan, you can contact our company, Gilbert & Samuels Company Limited, for assistance. Our contacts are : e-mail gilbert@connect.com.fj or telephones +679 3396427 or +679 9921427.

Post Budget Forum Breakfast

To be held on Saturday, 4 November 2006, from 8.15am to 10.30am, Lali Room, Holiday Inn, Suva. The forum offers the opportunity for the Prime Minister and several of his key Cabinet ministers to espouse key strategies and features of the 2007 national budget. It also enabled stakeholders in the private and public sectors to present the Government instant feedback on its national budget.

Limited seats available at F$550.00. For bookings, call Talica on telephone +679 3314333 or e-mail ceo@fbcl.com.fj.

Note from GV : If you need accommodation in Suva, try out our two bedroom rental home. The home has seaviews and is equipped with a Personal Computer and Broadband Internet access for guests. Check out details through links at the right hand side of this blog. To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

ANZ nets A$113 million profit from Pacific Banking

ANZ has recorded an annual profit of A$113 million for the year ended 30 September 2006 from its Pacific Banking business. The profit was a 26% increase on results of the previous year.

The bank said the result indicated the underlying strength of Pacific economies and market share gains in a number of countries including Fiji, Papua New Guinea and American Samoa.

The bank said it had improved its services by opening more branches, refurbishing existing branches, installing more ATMs and introducing Internet banking to a number of Pacific countries.

It has also expanded its rural banking program to Tonga, Vanuatu and Solomon Islands.

ANZ said that its’ financial performance would enable it to make further investments in the coming years for the benefit of customers, staff and communities throughout the Pacific.

Note from GV : For banking and finance related advice for your company or business, contact our company, Gilbert & Samuels Company Limited. Our contacts are : e-mail gilbert@connect.com.fj or telephones +679 3396427 and +679 9921427.

Minister puts pressure on public enterprises

Public enterprises have been told to increase profitability, become investment-oriented and not depend on government funding.

The Minister for Public Enterprises said that because of the pressure on the national budget caused by the high cost of borrowing, expenditure needed to be curtailed.

There has been much concerns recently about Government debt. Some feel that Government is crowding out the other likely borrowers who could put debt to more better use that would benefit the economy.

Check out our other entry on the Post-Budget Forum next week to get an opportunity to ask Government questions regarding its 2007 National Budget which will be delivered next week.

Kontiki invests in Yaqara venture

Yaqara Group Limited (YGL), a company listed on the South Pacific Stock Exchange, and Kontiki Capital have reached an agreement on raising capital for Yaqara.

The agreement will cover Kontiki’s ongoing involved with YGL in the management, corporate advisory and financing of YGL’s Yaqara Studio City development.

Kontiki Capital is to manage and participate in the underwriting of a redeemable convertible note issue for YGL of up to F$4.5 million at a price of F$0.50 per note.

The issue would be via a rights issue to existing shareholders and underwritten through Kontiki Capital and a syndicate of investor groups. The notes will be convertible to shares at a significant discount to the current share price to encourage maximum shareholder and local institutional participation.

Note from GV : Individuals and groups that need investment advice can use our company, Gilbert & Samuels Company Limited, for assistance. Our principal, Gilbert Veisamasama Jr, is an Investment Advisor licensed by the Capital Markets Development Authority (of Fiji). To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Rules-based trade is best for small states

A rules-based trading system is critical for the survival of small developing countries in the global economy, says Commonwealth Secretary-General, Don McKinnon, at the Commonwealth Parliamentary Association and World Trade Organisation regional workshop being held at the Warwick Hotel at the Coral Coast in Fiji.

Mr McKinnon said such a system was needed for small developing nations in the face of competition from larger developed states with greater economic and political clout.

He said that the successful completion of WTO's Doha Development negotiations would pave the way for developing countries to benefit from globalisation.

Mr McKinnon said special and differential treatment of products from developing countries and aid for trade would develop national capacities for economic growth and sustainable development.

The Commonwealth Secretariat is working closely with the European Union to improve the trade policies and negotiating capacity of African, Caribbean and Pacific nations.

The Secretariat does this through a $20 million project which involves the establishment of a network of senior ACP advisers based in the secretariats of regional organisations who coordinate networks of analysts attached to trade ministries in individual countries.

The technical assistance is vital to enable small island developing states, including those in the Pacific, to overcome their inherent vulnerabilities.

Note from GV : Our firm, Gilbert & Samuels Company Limited, provides consultancy services on banking, finance and financial sector issues. We have consulted to two major financial institutions in Fiji and provided legal advice to the subsidiary of the largest financial institution and pensions provider in Fiji. Our principal has over 15 years experience as a central bank regulator and policy maker and over 1 and a half years experience as a consultant. To contact us, e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Fiji Government 2007 Budget Address next Thursday

The Fiji Government's 2007 National Budget will be presented next Thursday, 2 November 2006, in Parliament. For foreign investors, it will be interesting to see what incentives will be offered by Government to attract them as well as whether there will be further enhancements to the foreign investment approval process which has been a source of frustration for foreign investors and their local counterparts/consultants in recent years. Government has been working on its incentives scheme and on improving the approvals process in recent years to facilitate investment by foreign investors in Fiji. Check out this blog next Friday, 3 November 2006 to see what is on offer. Note from GV : Foreign investors that need assistance with setting up business in Fiji can use our company, Gilbert & Samuels Company Limited, as their local consultants. Our contacts are : e-mail gilbert@connect.com.fj or telephones +679 3396427 or +679 9921427.

Recipients of remittances urged to use them wisely

The Fiji Chamber of Commerce has urged recipients of remittances to use the money wisely. Remittances are funds sent by Fiji residents or former residents working or living abroad. Remittances now contribute about 7% of Fiji's Gross Domestic Product.

The Chamber referred to Tonga and Samoa where remittances contributed 40% and 30% of GDP respectives and where people relied of their relatives overseas to pay for utility bills.

The Chamber said that Fiji should take steps to avoid such a trend and should now educate and build the capacity of recipients of remittances to invest their money in income-generating activity.

Note from GV : Remittances from Fiji residents or former residents working or living abroad is expected to top F$500 million this year. Our company, Gilbert & Samuels Company Limited, provides investment and business advisory services which can be of benefit to recipients of such remittances. To contact us for advice, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Fiji to benefit from Pacific Leaders Forum Meeting

Fiji stands to benefit from the Pacific Leaders which begins in Nadi today.

The Foreign Affairs Minister said the people of Fiji would benefit from all issued discussed by the 16 heads of government attending the week-long meeting.

He said, firstly, being the hosts, paved the way for a new age in regionalism, regional cooperation and regional economic integration after Fiji came in to host the meeting when Tonga could not as a result of the death of their King.

The Minister said that depending on the different issues whether it be marine, trade, HIV/AIDS, medical and social issues, benefits would accrue to Fiji.

He said Fiji had resources and expertise to fill in positions that would be created by the Regional Institutional Framework Review outlined under the Pacific Plan.

The Minister said that apart from the Pacific Plan, discussions on issues like security, ocean policies for Fiji, fisheries and disease would benefit the nation.

Note from GV : Read our other blog, http://promotingsuva.blogspot.com/, which provides information on what is happening in and around Suva and provides an alternative for accommodation for visitors in a two bedroom rental home with a Personal Computer and Broadband Internet access provided complimentary for guests' use.

187 soldiers ready for Iraq duty

A Fiji Military Forces contingent is due to leave for Iraq on Friday, 27 October 2006, to take on peacekeeping duties there. The 187-member contingent will replace another group there that returns home.

Note from GV : Remittances from Fiji residents or former residents working or living abroad has been increasing phenomenally. This year, it is expected to top F$500 million. Our company, Gilbert & Samuels Company Limited, provides investment and business advisory services which can be of benefit to recipients of such remittances. To contact us for advice, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Fiji Sugar Corporation records F$1.7 million profit

The Fiji Sugar Corporation, a company listed on the South Pacific Stock Exchange, has recorded a F$1.7 million profit in its latest financial year, after a F$5 million loss the previous year. The turnaround was despite a reduction in revenue and before equity accounting of investments, impairment charge and income tax.

The Corporations' operating revenue fell to F$235.2 million compared to F$242.7 million last year. This was primarily due to a fall in sugar production that was a result of lower cane production.

This is a pivotal year for the Corporation as it begins its reform program instituted by Government with aid from the European Union.

Note from GV : Individuals or companies that require investment advice can use our company, Gilbert & Samuels Company Limited. Our principal, Gilbert Veisamasama Jr, is an investment advisor licensed by the Capital Markets Development Authority (of Fiji). To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

Pacific Islands Forum Meeting in Fiji next week

The 37th Pacific Islands Forum Meeting will be held in Fiji next week. Trade and security matters will top the agenda at the meeting, according to Fiji's Foreign Affairs Ministry.

The Ministry said that the issues were part of the Pacific Plan program which is the main issue to be discussed.

Other issues will include :

• the Oceans policy;
• other social issues;
• SPARTECA (South Pacific Regional Trade & Economic Agreement);
• RAMSI (Regional Assistance Mission to the Solomon Islands); and
• technology.

Commonwealth Secretary-General, Don McKinnon, will also attend the meeting. He is expected to hold talks with Commonwealth Pacific leaders and the Forum Secretariat on a wide range of issues including ongoing technical aid programs and further assistance for the implementation of the Pacific Plan.

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Yaqara lease to boost cattle farming

Cattle farming for local consumption is expected to get a boost once paperwork for lease of Yaqara is complete by the end of the year.

California-based cattle ranch operator, Rolls International/Harris Ranch, won the bid ahead of three other tenders earlier this year to take over Yaqara Pastoral Company Limited, a company listed on the Suva Stock Exchange.

The two American companies would lease the Yaqara farm as part of a private and public partnership in an effort to boost cattle farming for local consumption.

Yaqara Pastoral Company yesterday issued its first dividend cheque of F$245,000.00 to Government. The dividend payout was possible due to favourable weather conditions and an increase in royalty from Fiji Water which drills for water on Yaqara land.

The dividend payout was 50% of the company's after tax profits.

With the input expected from the American companies, investors in this company should look forward to good returns as the company benefits from the lessee' expertise.

MoneyGram money transfer services opens in Fiji

Westpac Banking Corporation and Carpenters Fiji Limited have teamed up to provide MoneyGram money transfer services at Morris Hedstrom's supermarkets throughout Fiji.

Westpac said that the bank constantly tried to find ways to develop its products and services. The new venture, it said, extends the banks product portfolio while meeting the needs in the market.

Carpenters Group said MoneyGram was a good choice for the company. He said the service would be available at 12 MH supermarkets over the next few weeks with MH Superfresh, Tamavua, Suva, being the first to make it available yesterday.

MoneyGram will also be available through every Westpac branch Fiji wide.

MoneyGram said customers would not need a bank account or credit card to use the service. Only an identification card would be required.

The services will allow money transfer locally and abroad and will benefit Fiji residents or ex-Fiji residents working overseas who wish to send money to Fiji.

Note from GV : Fijians working abroad can use our company, Gilbert & Samuels Company Limited, for assistance and advice with regard to setting up business or investing in Fiji. We can carry out due diligence work and also arrange all the necessary approvals, licences and permits to be able to set up business in Fiji. Our principal, Gilbert Veisamasama Jr, is an Investment Advisor licensed by the Capital Markets Development Authority in Fiji. To contact us, you can e-mail gilbert@connect.com.fj or call telephone numbers (679) 3396427 or (679) 9921427.

Survivor Series to inject F$6 million into community

Popular TV Series, Survivor, will inject F$6 million direct into the community by creating at least 230 jobs and hosting 250-production crew at Vunivutu in the interior of Labasa.

Government said welcomed the production team saying that the "Look North Policy" of Government was slowly taking shape and Vanua Levu will receive international recognition through the country's expanding movie industry.

Government said income would be generated through lease money, employment and purchase of goods and services including local produce.

It is expected that when the Fiji Survivor program goes on air, the country will attract invaluable international publicity, particularly for tourism.

Up to 230 local people are employed in administrative and office work, catering, security and land clearance. These workers will expect to earn a total of approximately half a million dollars in wages over 3 months.

Landowners will receive significant income from the temporary leasing of their land with infrastructure build (including a boat landing at Wainikoro, Labasa) to remain for use by locals after the production.

Government said that 7 overseas productions were completed in the country so far. This is expected to rise to 13 by the end of the year. It estimates that more than F$150 million worth of economic activity was created through these projects.

Note from GV : Fiji provides incentives to businesses that wish to operate in the area of audio visual production. Foreign investors that wish to get more information on this with the intention of getting a licence to operate in the area or to shoot a movie or TV series in Fiji can contact our company, Gilbert & Samuels Company Limited, by e-mail on gilbert@connect.com.fj or telephone +679 3396427 or +679 9921427.

Free Unit Trust Investment Seminar

A seminar, "Getting Started in Unit Trust Investments", organised by the Capital Markets Development Authority (CMDA) will be held on Wednesday, 18 October 2006, at the Tanoa Plaza in Suva. The seminar runs from 5.15pm to 6.45pm. Admission is free. Participants will receive a free CMDA educational pack including the CMDA Personal Wealth Calculator CD. Register now by calling telephone +679 3304944 or e-mail info@cmda.com.fj.

Note from GV : Individuals and groups that need investment advice can use our company, Gilbert & Samuels Company Limited. Our contacts are : telephone +679 3396427, +679 9921427 or e-mail gilbert@connect.com.fj.

Bureau sees export potential of agriculture, fisheries and forestry sectors

The agriculture, fisheries and forestry sectors have the potential to raise Fiji's level of exports and fill the vacuum created by the decline in sugar and garment exports, says the Fiji Trade and Investment Bureau (FTIB).

The Bureau made the comment while announcing that the commendation awards for the three sectors at the 2006 DHL Prime Minister's Exporter of the Year Award, had been upgraded to full awards. This was after FTIB recognised the export potential of the three sectors.

This year's event to be held at the Sofitel Resort and Spa, Nadi, next month will have the theme, "Export Competitiveness : Our Key to Growth".

Note from GV : Business travellers who travel with their families can rent our two bedroom home with sea views in Suva. The home is fully furnished and has a Personal Computer and Broadband Internet access provided complimentary for guests' use. A 20% discount on the rate per night is being offered as a promotion until 31 March 2007. The applicable rate per night is F$112.00. To check out more details of amenities provided and photos of the home, pls click on the appropriate links at the right hand side of this blog. To contact us, you can e-mail gilbert@connect.com.fj or call telephones +679 3396427 or +679 9921427.

F$23 million energy project launched

A cogeneration project between Tropik Wood Limited and its overseas partners has been launched as the future for fuel and energy consumptions during the groundbreaking ceremony for the company's F$23 million upgrade.

The project is expected to provide an annual revenue of about F$9 million per annum, providing an increased 72 million units of electricity to the Fiji Electricity Authority's national grid.

The project is a clear example that alternative sources for power need to be pursued given current high international oil prices and the increase in electricity production costs for the Fiji Electricity Authority.

Tropik Wood currently generates 3,000 kilowatts with FEA buying 600 of that from the company. With the expansion of cogeneration, Tropik Wood would be in a position to generate 12,300 kilowatts and supply up to 72 million units of electricity to the FEA national grid.

The project will provide additional employment to about 30 people during construction and an additional 10 people to operate and maintain the plant.

The project is the first of several bio-fuel electricity projects for Tropik Wood who aims to be a serious electricity producer.

The partnership formed between Tropik Wood and its overseas business partners include Siemens Limited providing the steam turbine generators, RCR5 Easteel Energy Systems providing the boiler, water cooling towers from Cooling Towers New Zealand Limited and civil and structural works will be done by Engineering Design Fiji Limited. The project development and management partner for Tropik Wood is Ajynk New Zealand Limited with Westpac Banking Corporation providing the loan required in purchasing the equipment as well as the payment for other services associated with the cogeneration project.

Note from GV : Fiji provides incentives to businesses that wish to operate in the area of alternative and bio-fuel production. Foreign investors that wish to get more information on this with the intention of getting a licence to operate in the area can contact our company, Gilbert & Samuels Company Limited, by e-mail on gilbert@connect.com.fj or telephone +679 3396427 or +679 9921427.

Plan to revamp water management approved

The reorganisation of the Water and Sewerage Department has been endorsed by Government, paving the way for hte establishment of a Fiji Water Authority (FWA).

The FWA will be established under the Public Enterprise Act of 1996 and would allow the newly-formed body to manage and oversee all water supply operations.

Problems facd by the current Water and Sewerage Department is to be resolved through extension and improvement in infrastructure and reforms through implementation of the Water Supply Department Reorganisation Charter.

The primary purpose of the reorganisation has been given as to improve the efficiency of the entity and give it clear commercial and social objectives.

The FWA will be managed by a Board of Directors who will appointed by the Minister of Public Enterprises.

Fijians living in Austrlia encouraged to invest in Fiji

Fijians living in Australia have been encouraged to invest in Fiji by the Prime Minister, Mr Laisenia Qarase.

The PM made the invitation while speaking at the Fiji Day celebrations in Brisbane, Australia, last Saturday.

The PM noted that remittances to Fiji from locals living and/or working abroad was more than F$300 million last year and said that this was expected to be higher this year.

He then invited Fijians living in Australia to invest in Fiji. "Some of you may also be interested in joining former residents who have decided to invest in commercial projects in Fiji," the PM said.

Note from GV : Fijians working abroad can use our company, Gilbert & Samuels Company Limited, for assistance and advice with regard to setting up business or investing in Fiji. We can carry out due diligence work and also arrange all the necessary approvals, licences and permits to be able to set up business in Fiji. Our principal, Gilbert Veisamasama Jr, is an Investment Advisor licensed by the Capital Markets Development Authority in Fiji. To contact us, you can e-mail gilbert@connect.com.fj or call telephone numbers (679) 3396427 or (679) 9921427.

Fiji troops set for Iraq

One hundred and thirty four soldiers are expected to leave for Iraq next month. The contingent will be part of the rotation group to Baghdad. The soldiers will march into camp this week for a three-week training program after which they would take a week's break before leaving for Iraq.

Note from GV : Fiji citizens working abroad has grown over the years with remittances to Fiji from wages earned by them working abroad set to top F$500 million this year, a record for the country. How this money is being spent is not clearly ascertained.

For this reason, our company, Gilbert & Samuels Company Limited, provides services that include giving investment advice to clients that need assistance on how to invest surplus funds. With the high interest rate environment currently existing in Fiji, it is a good time for investors to invest. Other trading partner countries such as Australia, New Zealand and the United States of America also have high interest rates at present. However, before one considers investing in those countries, it would be best that they seek professional advice. To contact our company, you can call (679) 3396427 or e-mail gilbert@connect.com.fj.

Singapore tops trade with Fiji

Singapore became Fiji's main source of imports ahead of Australia, New Zealand and the United States last year, according to the Minister for Foreign Affairs.

The Minister said Fiji exported more to the US than it imported from there - a trend that was barely applicable to most of Fiji's other trading partners.

The comment was made after the Government was criticised for introducing a Bill to amend the Value Added Tax Decree to exempt chanceries built in Fiji from VAT, including a proposed F$60 million American Embassy complex at Princes Road in Suva.

"We have a trade surplus with the US. Trade figures for 2004 and 2005 showed some decline in our exports because of the expiry of the garment quota, but it was still substantial for 2004 exports to the US at F$184 million. We import from the US only F$102 million so we have a trade surplus for 2005", the Minister said.

The US is ranked 5th among Fiji's import markets. Exports to the US consists of taro, tuna loins, Fiji Water, knitted garments, sugar and molasses, fish, mahogany, cassava, vegetables, coral, noni, vanilla, biscuits and coconut furniture.

Import from Singapore being top of the list of Fiji's imports may also be attributed to the fact that Fiji imports fuel from there.

Note from GV : Check out our two bedroom rental home in Suva with seaviews. The home has a Personal Computer and Broadband Internet access provided complimentary for guests' use. A promotion now being offered sees a 20% discount given for all bookings up to 31 March 2007. Details are available through links at the right hand side of this blog. To contact us to enquire or book the rental home, you can e-mail gilbert@connect.com.fj or call (679) 3396427 or (679) 9921427. Christmas 2006 and New Year 2007 is currently available for rent.