Fiji's economy; Mining giants merge; PNG's catastrophic telecom failure...


Fiji's economy: the conflicting accounts

The 2005 Fiji/Australian/Australia/Fiji Business Council Forum presented conflicting accounts of the state of the Fiji economy. Prime Minister Laisenia Qarase talked about strong growth and job creation centred mainly on the upward trend of tourism arrival figures and an estimated F$1000 million investment (US$570 million) in the construction of new hotel accommodation. But Reserve Bank of Fiji governor Savenaca Narube warned that the once buoyant garment industry would decline by another 20% in 2006. He said the productivity growth average of one percent over the last 10 years was far too low compared with Mauritius (4%) and Australia (2%). The future of gold output was uncertain and real estate prices were being pushed to a bubble bursting level. Narube said that since the level of national debt had surpassed 50% of GDP and the balance of payment was widening and being exacerbated by mounting oil prices, the government's expansion policies might no longer be appropriate.


Mining giants merge

Canada's two mining giants, Inco Ltd and Falcolnbridge Ltd, have announced a C$12,500 million friendly merger that is not expected to adversely affect the massive nickel and cobalt mining and smelting projects they plan in New Caledonia. Inco said its Goro project in southern New Caledonia would proceed as announced.


PNG's catastrophic telecom failure

Papua New Guinea's Chamber of Commerce and eight other key business organisations have warned that the country is on the brink of a “catastrophic telecommunications failure” because its submarine telecommunications cable link is five years beyond its 25-year design life. Chamber president David Conn issued the warning after the failure in October of the mobile phone system. He complained that a “confusing” relationship between Telikom PNG, Pangtel (PNG Telecommunications Authority) and the Independent Consumer and Competition Commission was blocking the creation of an efficient telecommunications agency. He said PNG's business community shouldn't be exposed to the risk of such a failure. Telikom PNG's response was that it would install second-hand cables at a cost of US$30 million.


Temaru's Tahiti Nui Foundation

French Polynesia's government has announced a Tahiti Nui Foundation backed by private funding exceeding US$1million, Tahitipresse reported. President Oscar Temaru said the foundation would have philanthropic, scientific, social, educational, humanitarian and social objectives supported by French Polynesia's eight largest business organisations. They are Morinda International (health food), Brasserie de Tahiti (brewing and soft drinks), Electricite de Tahiti (energy), Wan Distribution (wholesale food sales), Carrefour-Chamion (hypermarkets), Air Tahiti Nui ( international airline) and Banque de Polynesia and Banque de Tahiti (banking).


Mobil policy angers Cooks

The Cook Islands government is unhappy about Mobil policy for managing Cook Islands fuel prices, according to the Cook Islands Times.

The newspaper said a report for the Asian Development Bank by Alan Bartmanovich, the former petroleum adviser at the Pacific Islands Forum Secretariat, alleged that Mobil had manipulated fuel prices.

The report would be made public and that Bartmanovich had been engaged as an advisor to the Cook Islands on fuel tender matters.


US props Marshalls' budget

Of a record US$146.3 million 2006 Marshall islands budget, two-thirds will be funded by the United States Compact of Free Association grants, trust fund contribution and rent for the US Kwajalein weapon testing range. A further US$10 million will be supplied by Taiwan, which is recognised by the Marshalls in preference to China. Nearly 30% of the budget will go to the health sector.


Palau joins SOPAC

Palau has joined the Fiji headquartered South Pacific Applied Geoscience Commission (SOPAC) which was established in 1972, initially for offshore mineral and oil exploration. Its work now covers marine mapping, hazard assessment and risk management, environmental vulnerability, oceanography, energy, water and sanitation, and information and communication technologies.


Constantinou wants casino licence

Papua New Guinea's Constantinou hotel and construction group has told the Solomon Islands Government that it wants a casino licence as a condition of converting the former Governor-General and National Arts Gallery building on the Honiara seafront into a luxury hotel. The company bought the building from the government for about US$1.1 million.


Longline fishing company

A United States fishing company, Lady Kimberly, has proposed to establish a longline fishing company in the Northern Marianas if the territory's government gives it a US$600,000 loan guarantee. A company with 30% local equity would fish and process fish for the United States and Japanese markets.


Rescue plan for Solomons power

The World Bank and Solomon Islands government have signed an agreement for a five-year project to rescue the Solomon Islands Electricity Authority from insolvency. The authority reported a S$170 million (US$23 million) loss for 2004.