The 2010 Budget Consultative Forum was held at Novotel Convention Centre in Lami on Thursday 17 September 2009.
The objective of the consultative forum was to seek views and suggestions on initiatives and priorities to be considered in the formulation of the 2010 budget with the ultimate aim of growing the economy and reducing poverty.
The Prime Minister, Cabinet Ministers, Members of the Private Sector Organisations, Members of the Business Community, Civil Society, Trade Union and Civil Servants attended the Forum.
The scene of the Forum was set by the Prime Minister through his keynote address to the participants emphasising his commitment to maintain dialogue will all stakeholders in the country. It was highlighted that the Government’s focus for the next three years will be the economy with the intention to “leapfrog” economic development. A ‘business-like’ approach will be taken to change and modernize the economy by engaging all stakeholders. Suggestions for 2010 Budget were invited from participants whilst taking into account the domestic and the global economic environment.
Reserve Bank of Fiji’s Governor highlighted that since the global economy was recovering, the Fiji economy was expected to improve next year. Investments require a boost and even higher foreign reserve levels are required. It was emphasised that current account deficit was more than 17 percent of GDP which should be a concern to everyone. The need to buy Fiji made or Fiji produced goods was emphasised.
Government intends to maintain a fiscal framework that does not lead to accumulation of massive debts. Borrowings will target capital construction, particularly infrastructure and utilities. Government expenditure on capital projects will continue with added emphasis.
Sir Dr. Mogan Lourdenadin of Carpenters MBf suggested that Fiji needs to utilise its natural assets to generate more income. He proposed the establishment of a Bali-like tourism zone that caters for younger tourists and revellers who just need basic accommodation rather than the five-star hotels promoted in the past.
During the day representatives from the Private Sector and Civil Society proposed the following among many others:
• Incentives for Local Investors;
• Productivity based wage increases;
• Demand driven training schemes;
• Organized systems for Agricultural sector – value chain;
• Commercialising sheep farming;
• Increase focus on value added agricultural processing;
• 3 year funding for marketing Fiji by Tourism Fiji;
• Targeted infrastructure improvements;
• Equal treatment of local and foreign investors;
• Effective implementation of Tourism Development Plan;
• Streamlining and simplifying the taxation regime;
• Electronic tax payment system;
• Improved business regulatory framework;
• Bank support government/national initiatives and financing for priority sectors;
• Establishing a sustainable micro-finance model (cooperative model);
• Support for labour mobility and flow of remittances;
• Re-activation of tripartite forum;
• Legislative changes to address labour mobility – retention strategies;
• Skills shortage – improved training and development Increase funding for poverty reduction and social welfare initiatives;
• Senior citizens (non-FNPF pension and hospitalization scheme);
• Volunteer services scheme/sector;
• Increase support for implementation of women’s plan of action; and
• Empowerment and participation of women in development and decision making processes.
There were also proposals to increase tourism development in the central division through initiatives of local governments. Measures also needed to be put in place to ensure poverty alleviation and that private sector needed to play a greater role in this regard.
During the wrap up session the Prime Minister emphasised that his government was in effective control to ensure that taxpayer’s funds were used for the betterment of livelihoods in Fiji. He also emphasised that officers in Government agencies have to work for the betterment of the people of Fiji. He encouraged the public to report to his office cases of non-performance or poor service delivery.
The 1-day Consultative Forum was a success and Government will consider all views received during the Forum in policy development and project implementation. Stakeholders in the country are encouraged to bring forth their views on how Fiji’s economic growth can “leapfrog”.