The Peoples’ Coalition Cabinet held its first meeting of 2024 today, Tuesday 16th January 2024.
Decisions made at the first meeting of Cabinet for this year include the following:
1. Cabinet approves process, timelines and guiding principles for the formulation of a new National Development Plan
Cabinet has approved the framework, processes, approach and timelines for the formulation of a new National Development Plan by the recently re- established Strategic Planning Office in the Ministry of Finance.
The new NDP will cover the 3-year period 2024-2026 and a 20-year plan for national development which will set the long term development aspiration for Fiji.
The primary objective of Government in formulating the NDP is to enhance the overall well-being of all by pursuing a path of inclusive and sustainable development.
The 5-Year and 20-Year NDP launched in 2017 by the previous Government have become obsolete due to unattainable targets which are inflexible in responding to multifaceted challenges which include geo-strategic priorities, climate change, adverse weather conditions, and changes in political mandate.
One of the key difficulties in achieving the strategic priorities of the 5-Year and 20-Year development plans launched in 2017 is the lack of a coordinated and cross-sectoral approach to policy monitoring and evaluation following the closure and dis-establishment of the Strategic Planning Office by the previous government.
Consultation will be a cornerstone in the process of formulating the new NDP. Consultation will ensure ownership and cohesion in policy implementation and accountability.
It is anticipated that the new NDP will align and harmonize Fiji’s international and global commitments, such as the UN Sustainable Development Goals (SDGs).
Following the National Economic Summit which was held on 20-21 April 2023, participants identified the following guiding principles for the formulation of the new Plan:
Inclusive and Participatory Approach;
Informed by Evaluation and Data;
Good Governance & Transparency;
Leaving No One Behind;
Sustainable Economic Recovery - setting the fundamental building blocks for Fiji's inclusive medium term economic growth strategies; and
Mitigating the impact of climate change and protecting our environment.
The SPO will reconvene the 12 Working Groups established in the National Economic Summit to ensure continued the consultative dialogue with stakeholders in the formulation of the NDP. A nationwide consultation on the new NDP is planned to commence in February 2024. The new NDP is planned to be finalised and approved by mid-2024.
2. Land Issues Taskforce and Assistance Towards Outstanding Offers for Lease Renewals
Cabinet approved the provision of $1,220,893.36 to clear outstanding lease payment and lease arrears for 218 farmers. This will facilitate the issuance of
long-term leases (50 years) to 218 farmers and encourage them to continue farming.
The assistance will boost the sugar and non-sugar sector’s long-term viability and sustainability. It will also incentivize farmers to continue farming, and thereby discourage rural to urban migration.
Moving forward, sustainable practices and diversification is necessary for the agriculture sector's resilience beyond such short-term assistance. Encouraging technological advancements and innovative farming practices will also enhance the efficiency of cane farming.
The Taskforce was formed in September 2023 to deal with issues regarding land leases, renewals and land premiums for sugar and non-sugar agricultural land.
Following consultations, the Taskforce noted that a total of 2,180 agriculture leases will be expiring in the period of 2023 to 2030, including the lease rental arrears of 218 farmers.
Cabinet has also approved the Ministry of Finance to further assess the renewal of 1,780 TLTB leases that will be expiring from 2023-2030 and propose necessary lease premium initiatives in the 2024-2025 Budget.
3. Change in Sale Price for Cattle with Improved Genetics
Cabinet approved a proposal from the Minister for Agriculture for an increase in sale price for cattle with improved genetics.
In an effort to improve genetics and develop prime quality beef and dairy breeds in Fiji, the Ministry of Agriculture has since 2017 embarked on a program to rear and develop prime quality beef (Senepol, Wagyu and Droughtmaster) and dairy (Brown Swiss) breeds.
These breeds have been sourced from Australia through the Australian Reproductive Technology Company, a company approved by the Fiji Government Major Tenders Board.
This project has been facilitated by means of Embryo Transfer Technology.
Imported embryos were implanted into local recipients (surrogate mothers) at Ministry of Agriculture livestock stations from 2018 - 2022 in four phases (Progressive Transfers and Calving, compliance).
The four breeds of cattle (Senepol, Brown Swiss, Wagyu and Droughtmaster) have been carefully selected for good performance in terms of adaptability to heat stress, growth and development, reproduction and meat quality as well as considering the market needs.
The program has identified the Senepol cattle for beef breeds after having demonstrated a number of desirable commercial traits and is also climate resilient while the Brown Swiss cattle has been identified for dairy, due to its high volume and quality milk production. The quality of Wagyu beef meets the standards required by hotel guests and it ensures the taste, texture and cuts of beef are of superior quality and have excellent marbling characteristics which add quality, flavour and taste in either steak, barbeque or cooked in various dishes.
The Embryo Transfer Technology was adopted in several stages. The first stage saw the establishment of the tropically adapted elite beef and dairy herds, followed by a secondary stage of mass replication on stations and eventually onto selected farms.
The cattle offspring from the embryo transfer technology and crossbreeding research that have been developed on Agriculture stations are intended for sales to farmers.
Tabulated below are the current and new prices for cattle sales:
The current sale prices have not been reviewed for decades. They are not on par with current market rates and are neither sustainable nor practical in the
present market environment. In addition, the current sale price is far below the cost of production.
The new price adds genetic value to the cattle produced from Embryo Transfer Technology (ETT) at Agricultural Government Stations.
A significant number of quality breeding stock have been sold to farmers by the Ministry of Agriculture have been under-utilised due to low cow numbers or cows ending up being slaughtered prematurely without being allowed to breed and produce quality offsprings on farms.
This is because the breeds were sold at low prices. Since they were under- valued, they failed to serve their primary purpose, which was to improve the genetics of cattle on farms.
Government through the Ministry of Agriculture has invested in the beef sector through stock yard support, ETT, provision of fencing kit support, breeder bulls, supplementation nutrition, staff and farmer training, infrastructure improvement, and improvement of the breeding centre.
The performance of these cattle breeds will continue to be monitored and evaluated at the Agriculture research stations before the genetics are passed to farmers for rearing and multiplication.
4. Review of the Fiji Veterinary Surgeons Act of 1956
Cabinet approved the review of the Veterinary Surgeons Act 1956.
The review is to better position the development of Fiji’s veterinary services to drive a strong, productive and resilient livestock industry.
It is intended that the Review will facilitate the establishment of the Veterinary Statutory Body (VSB) and the formation of the Fiji Veterinary Services Council (FVSC) to expedite the preparation and delivery of Veterinary Registration.
Once the review is completed, the Report and Draft Bill will be tabled in Cabinet for consideration.
5. Lagilagi Low-Cost Housing Development Project
Cabinet endorsed that the Public Rental Board (PRB) complete the construction of the remaining 36 housing units, and manage the Lagilagi Housing Estate.
The Project was initiated by the People’s Community Network Charitable Trust (PCN) to design and construct low-cost housing units for the settlers in Jittu Estate, to provide them with an opportunity to obtain homes on affordable terms.
In 2015, the construction of 44 units were completed and the construction of 76 units commenced, of which 40 were completed in 2017. The remaining 36 units will now be completed by PRB.
6. Cabinet approves amendment to Real Estate Agents (Fees, Forms and Appeals) (Amendment) Regulations
Cabinet endorsed amendments to the Real Estate Agents (Fees, Forms and Appeals) Regulations and the establishment of a working group to monitor the effectiveness of the regulations to ensure its alignment with market dynamics and stakeholder needs.
The principal regulations were gazetted on 26 May 2022 as Legal Notice No. 76 of 2022. It regulated the commission rates charged by real estate agents for residential properties in Fiji and aimed to ensure fairness and transparency in the market while protecting the interests of property owners and potential buyers.
The regulations stipulated a cap of 2% for commission rates on residential properties valued at $500,000 or less. The cap was based on multiple factors including prevailing commission rates charged in the market, associated costs of property transactions and Government’s objective to foster a more transparent and equitable framework for consumers.
However various limitations have been identified since the 2% cap was gazetted in 2022. These include the negative impact on business operations of real estate agents, its hindrance on market dynamics and reduced competitiveness in the sector. It also appears that some agents have manipulated the 2% commission rate especially with the introduction of the disbursement policy.
The following concerns have been raised in consultations conducted by the Real Estate Agents Licensing Board (REALB):
(i) The regulations have restricted competition within the real estate industry as the fixed rate have limited agents ability to differentiate themselves based on services offered;
(ii) Some stakeholders argued that the regulations did not consider consumers diverse needs and preferences, limiting their options and potentially increasing the cost of engaging real estate agents;
(iii) Stakeholders highlighted the administrative burden of monitoring and enforcing the regulation consuming time and resources that could be better spent on delivering quality client services;
(iv) The lack of flexibility in having a fixed commission rate hinders the efficiency and fairness of the real estate market;
(v) A one-size fits all approach may not accommodate the varying values of properties. The fixed rate may unfairly impact property owners when dealing with properties of significantly different market values.
Cabinet approved the removal of the 2% cap on commissions for sale of residential properties below $500,000.00. This will enable the real estate market to operate on market-driven commission rates fostering healthy competition and facilitating growth.
Therefore, any commission to be charged by a real estate agent, officer or licensee on the sale of any residential property amounting to $500,000 or less will not be subject to any prescribed rate.
In addition, Cabinet approved the formation of a working group comprising the Ministry of Trade and stakeholders including REALB, Consumer Council of Fiji and the Fiji Competition and Consumer Commission (FCCC) to regularly monitor the regulations to ensure its alignment with market dynamics and stakeholder needs.