A Suva teenager is thanking his lucky stars after winning $3000 cash in Digicel Fiji’s Valentine’s text and win competition.
17-year-old Ravneet Kumar, of Suva, won the grand cash prize in the SMS game.
“I’ll have another chance to buy a gift for my Valentine,” Mr Kumar said.
“And I’ll also use part of the winning purse to help my family to buy some building material to repair our home in Rewa Street.”
Digicel Fiji’s head of marketing, Sheryl Singh said this was another chance to reward their loyal customers.
“We organise interesting SMS games with a lot of good prizes and I’m happy to see the number of customers who take advantage of such initiatives,” Ms Singh said.
Other prizes that were on offer included night stay and dinner for two at a resort of your choice and five gift hampers valued at $500 each.

Ravneet Kumar, of Suva, won the grand cash prize of $3000 in Digicel Fiji’s Valentine’s txt and win competition. Photo: DIGICEL FIJI

By RACHNA LAL

Developed by a team of fresh programmers, Telecom Fiji’s MyConnect app on Google’s Playstore has gained quite a lot of recognition.
In less than two months of its release, there has been approximately 400 downloads with 90 per cent being active in the past week.
Telecom Fiji chief executive, Mothilal De Silva, said the major highlight was that the app is now listed in the “Top Free in Android Apps” at 378th position.
He noted this was surely a big achievement as there are hundreds and thousands of apps on Google’s Playstore.
“We released this app to the public on January 3 with a mere Ad widget on the my.connect portal,” Mr De Silva said.
“The app has made it to number 378, which is surely something for an app that has such a relatively small consumer base.
“These apps don’t get listed here because of its massive number of downloads, otherwise we would never made it to the top 1000 perhaps.
“But because of users’ reviews, this ranking states how well the public has accepted the app and have left behind good reviews.”

Being the first
Mr De Silva said being the first of its kind and probably being the first company to bundle their service with a locally-built mobile app, this was a very good achievement.
“And this was from that simple ad on the portal and word of mouth, imagine the numbers when this is marketed properly to the public,” he said.
“This sets us in the eyes of the world and lets them know that we are more than capable of competing with the rest of the world.”
Mr De Silva said the Connect Wifi app has not received any advertising on any platform yet and it can also be a big selling point for their services.
“It would be nice to see some word about this as it makes the experience of the user more pleasant when using our services,” he said.
Telecom Fiji has also introduced a new feature to the Connect Wifi App: “Find your closest hotspot”.
Mr De Silva said this feature pinpoints the current location of the user and gives them a map view of where to find the nearest Connect Wifi hotspot.

By RANOBA BAOA

Fiji and New Zealand have become pilot countries to adopt a strategic project by DHL Global Forwarding business unit.
The New Forwarding Environment (NFE) came live the past month and was set up to standardise and industrialise DHL’s process and system landscape throughout the 220 countries it operates in.
Global Forwarding chief executive in Asia Pacific, Dr Kelvin Leung, said the platform will eventually be rolled out to the remainder of the 220 countries.
Dr Leung said: “Basically we’re shaping the forwarding industry which we operate.
“The system is only one part of the jigsaw and eventually we will conceptualise the whole operating flow of the whole forwarding industry.”
Dr Leung revealed this yesterday during a media interview at the Holiday Inn Suva.
He, as well as chief executive South Pacific, A.P. Boll, arrived on a special visit to meet with the Prime Minister, Commodore Voreqe Bainimarama, as well the DHL team here.

Why Fiji?
Mr Boll said: “This was a very important job and a challenging job as well as we are part of the global process.
“Fiji’s done extremely well and it will be very good learning for the rest of the globe when they go live in the rest of the year.”
Meanwhile, Dr Leung, said the adoption ties in well with the company’s $700,000 revamping investment in its Nadi office equipment and Raiwaqa office in Suva.

Meet with PM
To add to its commitment to the local community outside its business portfolio, the company pledged $10,000 to go towards Government’s Disaster Relief Fund.
Commodore Bainimarama received this yesterday.
“Wherever we operate, we also have a social responsibility to the society…to demonstrate that DHL does care about the society where we service,” Dr Leung said.
Dr Leung thanked PM for his valuable time in accommodating the timely visit and committed to more developments in Fiji in the future.

From left: DHL Global Forward country managing Fiji Mahendra Singh, DHL Global Forwarding chief executive Aisa Pacific Dr Kelvin Leung, Fiji national sales manager Ray Viegas and colleague at Holiday Inn Suva yesterday. Photo: JUSTINE MANNAN

By RACHNA LAL

The Tanoa Hotel Group has been doing a fair amount of celebrating over the past few days following one of its properties wins at the AON Fiji Excellence in Tourism Awards 2013.
The Tanoa Hotel Plaza in Suva was handed the Accommodation Quality award during the event the past Friday at Sofitel Fiji Resort and Spa on Denarau Island.
Tanoa Hotel Group Area general manager Fiji and Samoa, Matthew Gillespie, said: “The AON Fiji Excellence in Tourism Awards is the showcase of the best in our industry.
“They are designed to celebrate success. And within the Tanoa Hotel Group, one of our internal practices is to celebrate success and this is what we have been doing over the past few days.
“As a company, and individually, we are very proud of our achievements at this year’s AON Fiji Excellence in Tourism Awards.”
The group had four of its six Fijian properties shortlisted as finalists.
Tanoa Rakiraki Hotel was in the Accommodation Budget category and Tanoa Waterfront, Tanoa International and Tanoa Plaza Hotel’s in the Accommodation Quality Category.
Mr Gillespie said Tanoa Plaza Hotel’s win was tremendous recognition of all of the hard work by the Hotel manager Mere Rakoroi and her team at the hotel.

Commitment and dedication
An elated Ms Rakoroi believes this award was an affirmation of what commitment and dedication can achieve.
She always felt that such awards would be difficult for properties in Suva to win based on the limitations and restrictions of being in the city.
She said this was as hotels here aren’t able to have white sandy beaches and facilities like a tennis court, Bowling Green, golf course and so on.
However, Ms Rakoroi reiterated that despite being in the CBD, if a property is committed to providing the best to its guest it can attain wonders.
She also added that the win reinforces the commitment that the Tanoa Hotel Group has towards its guests and the industry as a whole.
Ms Rakoroi dedicated the win to the chairman of the Tanoa Hotel Group, YP Reddy, for his vision and dedication and her hardworking and determined team.
“Tanoa Plaza has come a long way these past ten years and it is through Mr Reddy’s visionary leadership, the support of the directors and the management and staff of the entire Tanoa Group,” she said.

No looking back
Ms Rakoroi said the uniqueness of the win was the challenge which the beautiful trophy brought.
“After this win, there is no looking back as it provides the impetus to maintain the good work, ensure consistency and to take to another level our standards, services and facilities,” she said.
“The onus is now on my team and I to continue to strive to provide our customers value for their money and more.”
Ms Rakoroi said this win was the beginning of another level for Tanoa Hotel Group and its brand image.

Revving up development
Ms Rakoroi is now looking at revving up their training and development programmes to ensure there is consistency and high standards at all times.
“My message to the other hoteliers is that anything is possible with dedication and hard work,” she said.
“No matter what the star rating of your property is, it is what you do with your resources and limitations that matters.
Both Mr Gillespie and Ms Rakoroi also acknowledged the group’s training department for the several internal programmes that also has contributed to this recognition.
Mr Gillespie said: “The Tanoa Hotel Group invests considerable time, effort and resources into our people development programmes.
“We believe Our People are the key to our success, both in the past and in the future. Strong focused development is the key to keep developing our people, our brand and our guests experience.”

The Tanoa Plaza Hotel team in Suva with their AON Fiji Excellence in Tourism Award 2013 for Accommodation Quality.

By RANOBA BAOA

Pernix (Fiji) Limited is the successful bidder to supply Fiji Electricity Authority’s 30MW Heavy Fuel Oil (HFO) Generator for its Kinoya Power Station.
The additional generator set costs $60 million.
It was announced yesterday during an official contract signing between the two parties with witnessing stakeholders at the Holiday Inn Suva.
The United States-based company known as Pernix Group is a construction and power infrastructure company with integrated design and engineering capability.
In light of the event and things to come, Pernix Group chief executive & president Nidal Zayed said Fiji was in for great opportunities ahead.

Regional HQ
“Fiji we feel from our perspective is really on the cusp of significant growth and investment opportunities for itself, for its people and for companies,” Mr Zayed said.
“Because of how we feel, we’ve decided that our regional headquarters will be located here in Fiji and we will use our resources to expand as we have been.
“That’s because of the faith that we have in the Fijian people and the prospect of the Fijian future. And we’re excited to be a part of that.”

Partnership
Authority chairman Nizam-ud-Dean said the authority was confident of the deal having shared previous partnerships with Pernix in recent years.
“Our relationship as far as Pernix goes is a lot further back. We’re very comfortable with the decisions we have made by our independent consultants,” Mr Nizam-ud-Dean said.
He said the move was essential to meet the demand of power supply for the Suva area as the load increases over time.
“Once we sign, they move. They actually have to build a totally new power station not just putting machines in an old station,” he added.
“This is a totally new building, new machines so it’ll take them something like about two years and hopefully the sooner the better because we’d like to see this to come into service.
“The machines that we have now ordered through Pernix hopefully will pay for themselves in the savings of having fuel costs within three years.
“If we shut down the ones that are running on IDOs and ran this HFO machine, it’s a three-year pay back. I think in anybody’s book that’s a very good commercial return.”

Why invest?
Authority chief executive, Hasmukh Patel said: “The mission of FEA is to promote renewable energy so one might wonder why we are here assembled today (yesterday) to sign the contract with Pernix for the establishment of a fossil fuel power station.
“But the fact of life is that while we develop renewable power stations you still need to develop diesel to make sure that you are able to meet the increased demand in electricity in Fiji.”

From left: Pernix Group chief executive & president, Nidal Zayed, Pernix (Fiji) Limited general manager, Michel El-Rahi, Fiji Electricity Authority chief executive Hasmukh Patel and authority chairman, Nizam-ud-Dean at Holiday Inn Suva yesterday. Photo: JUSTINE MANNAN

By RANOBA BAOA

Westpac has yet again launched another credit card that will complement the success of the Classic Visa credit card launched last year.
Adrian Hughes, general manager, Westpac Fiji said the credit card was necessary as seen in the patterns of demand across the globe.
“We chose Visa as the payment method for our new card because it’s accepted in tens of millions of locations in more than 200 countries and territories globally,” Mr Hughes said.
“Nowadays, businesses frequently operate internationally rather than in a single territory. More and more, these customers seek a payment method that’s widely accepted around the world.”

Features
The Visa Business card carries numerous features that provide allow customers and their employees to quickly and conveniently pay for their work-related expenses.
These include the flexibility of pre-set spending limits on each card and a convenient AutoPay feature.
Also featured is a card transaction in local currency to make transacting even easier for international payments or purchases.
In addition, Westpac has provided a further incentive to business customers by offering no application fee, no annual fee for the first year, as well as comprehensive travel insurance.

Convenience
Mr Hughes said: “For example, if on your overseas flight of two hours or more and your luggage containing your clothes and toiletries is delayed in getting to you for more than four hours, the cardholder is entitled to charge up the cost for clothing and toiletries on the Westpac Business Visa credit card up to a certain value.”
To apply for a new Westpac Business Visa Card, visit any Westpac branch or speak with a relationship manager.

By SHEIK DEAN

The ANZ Sail Fiji 2014, an off-shore ocean race, will be a substantial foreign exchange contributor for Fiji, scheduled for June 7 from Auckland to Fiji.
Port Denarau Marina Limited managing director Nigel Skeggs it is likely to generate $300,000 for our economy for the two-week period.
He made the comments as ANZ Fiji pledged $20,000 its sponsorship agreement in the past week.
Mr Skeggs said: “A survey was conducted after the successful completion of the ocean race in 2010, with figures amounting around $160,000 contributed towards the Fijian economy from the participation of 15 yachts.
“With almost double the amount of yachts taking part this year, we are expecting to see substantial contributions of more than $300,000..
Twenty eight boats from Australia and New Zealand have expressed their interest to compete in this event with organisers optimistic to attract a large racing and cruising contingency.
“The yachts coming in also attract families and friends with more earnings in the tourism industry,’’ Mr Skeggs said.
He says an average spin for yachts coming in stands at $32,000.
“These yachts also contribute to communities when they go out for cruises to the outer islands after the ocean race.”

Opportunity to showcase
And for Mr Skeggs, this is an ideal opportunity to showcase Fiji and also to showcase what Fiji has to offer and how the yachting industry has grown over the years.

By MARAIA VULA

Holiday Inn Suva and Edubytes have pledged support in making possible the much-awaited Fiji International Jazz and Blues Music Fesitival.
The four-day music festival will held at Holiday Inn and the Royal Suva Yacht Club from May 1 to May 4.
Festival organiser Billy Te Kahika said: “Without Holiday Inn as a partner right up front this would not be possible and they are not only sponsoring the venue but some needed financial assistance as well.”
Hotel general manager Preston Miskelly said: “Billy approached us with a fantastic event concept for Suva and it had been very successful at the western side.
“We jumped to the opportunity because it will be fantastic for Suva and our venue does live music already. It’s a perfect fit for our hotel, our brand and we can’t wait for the event.

Gala dinner
Mr Miskelly added: “We will certainly host of gala dinners on the Thursday, Friday and Saturday events as well at our Lali room. We will be providing our fantastic food and obliviously Billy’s fantastic music to provide a great event.”
Mr Te Kika said: “Our gala dinner events will feature our A plus artists where we are allowed 25 tables per event. We are half way sold out for the first night, one third sold out for night two with almost no marketing but just through word of mouth marketing.”

Kind sponsor
Edubytes chief executive and PASS director Michael Farrugia said: “My perspective is very different as I have been a supporter of the event since the start a few years ago.
“It’s been a thing that we look forward as a family every year and it could be a signature event for Fiji that will draw tourists in the future if it’s done properly now.”

By MARAIA VULA

The magnificent cruise ship Queen Victoria made her maiden visit to the Port of Suva yesterday.
In light of this a special presentation by Fiji Ports Corporation Limited was made to the vessel to commemorate its visit.
Witnessing the auspicious occasion were members of the media followed by a tour around the ship by crew. The tour was organised by agents Pacific Agencies (Fiji) Limited.
Queen Victoria is named after the late British monarch, Queen Victoria and owned by Carnival Corporation & plc and operated by Cunard Line.
The local agent looking after it is Pacific Agencies (Fiji) Limited.
Agency general manager Craig Strong said: “It’s very rare that a vessel like the Queen Victoria calls into Fiji and this is in fact the first time she is visiting Suva.”
Ports operations general manager Eminoni Kurusiga handed over a plaque as is the port’s tradition to Captain Inger Thorhauge.
Mr Kurusiga said: “We welcome you to Suva although the weather is unfavorable to you as Fiji is normally a sun shine place.
“We are currently in the cyclone season at the moment nonetheless we commemorate your first visit this year and we hope there will be many more visits to Suva,” he said.
Captain Thorhauge said: “It’s a pleasure to be here although we expected sunny Fiji but nevertheless it’s a nice place.
“We are very happy to be here and thank you so much and we are honored,” she said.
Mr Strong highlighted: “As the local handling agent through Carnival UK we are delighted to be able to facilitate the first of many local media visits, given the importance of the tourism sector in Fiji’s economy.
“The media tour as well is a unique one as the Queen Victoria is captained by a lady, Captain Thorhauge.”
n More about the tour in next Wednesday’s Shipping edition.

The Queen Victoria at Port of Suva yesterday. The vessel made her maiden voyage to Fiji. Photo: PAULINI RATULAILAI

Wellington: The European Union says reports in the Fijian media that the country’s sugar industry will enjoy preferential market access through to 2023 are wrong.
Last week, the Fiji Times quoted the permanent secretary to the sugar industry, Lieutenant Colonel Manasa Vaniqi, as saying he has been assured Fiji sugar would continue to enjoy EU access at a rate significantly higher than the world price.
But the EU Ambassador in Suva, Andrew Jacobs, says this is either a misunderstanding or a mistake.
He says in 2017 the production quota system will end and the only way Fiji can ensure a beefed-up price from the EU is by promptly committing to an Economic Partnership Agreement.
“And what is important for Fiji is that on the first of October 2014 the market access regulation expires. So we are hoping to move forward with the negotiations of the Economic Partnership Agreement which would allow Fiji to continue to benefit from the market access it has now.”
– RADIO NEW ZEALAND INTERNATIONAL

European Union Ambassador in Suva, Andrew Jacobs

By MARAIA VULA

Holiday Inn Suva welcomes Grand Pacific Hotel’s opening saying it would assist in providing more accommodation as the demand increases in the capital.
Holiday Inn Suva general manager Preston Miskelly said the neigbouring hotels are offering different products.
In this case Grand Pacific Hotel’s entrance into the market will help the city in meeting the demand for accommodating international events and other services.
“GPH will assist us and our other key competitors in the hotel market,” Mr Miskelly said.
“We understand that GPH is a five-star product and that we are a four-star product we understand the difference.
“So there will be some people who will migrate from our hotel to GPH the one and only five-star property and we accept that will happen.”
The restored hotel is set to open in the second quarter this year.
But Mr Miskelly believes what sets Holiday Inn apart from the iconic Grand Pacific is the staff whom its guests have developed a strong relationship with.
“They (staff) give our guests the feeling of being at home, they remember our guests’ names, making sure they know how their food is served and coffee to be made extra,” he said.
“That is something GPH won’t be able to compete with in the early stages and we have the recognition of our guests we remember them and we expect that to retaining our loyal clients.”
He said they already have packages and local rates available as well that are suitable for its target market.
“Certainly GPH will have large conference rooms that will be able to secure international events which at the moment Suva doesn’t have a hotel market that can actually cater for those.”

Renovation
Meanwhile, renovation upgrades at Holiday Inn Suva cannot go unnoticed. To this Mr Miskelly said is expected to complete this March.
“Renovations are our big focus and also trying to deliver a great guest experience in amongst those renovations,” he said.
“ It’s a constant challenge and we feel we are doing well at the moment and continue to focus on it.
“Our renovation plans at the moment we are close to completion of our function room or Banyan room that will be completed on March 15.

Restaurant upgrades
“Also our restaurant Victoria’s has been under construction since Boxing Day and it will be reopened on April 15. The restaurant will be renamed Sirocco being a Mediterranean style restaurant.
“We will serve Mediterranean cuisine which is great Italian, Greek, Lebanese, Turkish, French, Moroccan extra.
“This also gives us the ability to do themed buffets and also incorporating some of our Mediterranean dishes into our pool side offering.
“In terms of our rooms we are currently renovating our mockup room which is one of our renovation projects and it will be completed in March.”

From left: Edubytes chief executive and director of PASS Michael Farrugia, General Manager for Holiday Inn Preston Miskelly and Fiji International Jazz & Blues Festival director Billy Te Kahika at the Holiday Inn, Suva yesterday. Photo: JUSTINE MANNAN

By RACHNA LAL

Tourism operators around the country are on standby in case the tropical depression we are currently facing develops into a tropical cyclone.
Fiji Hotels and Tourism Association president, Dixon Seeto, said: “We are on standby and we have been communicating as an industry.”
Mr Seeto said they are also in constant touch with the Permanent Secretary for Tourism, Elizabeth Powell, who is the chairperson of the committee which manages such events.
“We have been in touch and we are gathering information on who is where etc so we can better handle the situation if this does develop,” he said.
“Currently it is a tropical depression and it’s not a cyclone as yet and the winds, though strong, are not damaging as yet.
“But we are hoping that the depression will move across to the East of Fiji and then move away.”
Nevertheless, Mr Seeto said by now most of the hotels have taken precautions as to what they should be doing.
“The good thing is there has been warning about this weather from many days,” he said.
“Therefore, many of the hotels and resorts have taken precautions already about handling these things.”

Not the first

Mr Seeto highlighted the association has faced such events previously and this was not the first time.
“It is a repeat of what we have faced many times over,” he said.
“So we are just waiting and if the system develops, we will the wait for the Permanent Secretary’s (Ms Powell) instructions.
“We will manage this situation as we have managed many times before.”
When asked on the number of tourists in Fiji, Mr Seeto said they are gathering information on this.
“But all hotels and resorts are making all efforts to look after their guests and ensure they are comfortable. We are getting information slowly,” he said.

Dixon Seeto.

By RANOBA BAOA

When Selita Matebau received her transfer money from her sister from Australia through MoneyGram, little did she know that she was blindly participating in a promotion that would be a game-changer.
In doing so, she won. Thanks to MH Money Express promotion, the 44-year-old solo mother of Qauia received $1000 plus this week to add to the money that was originally sent to her.
She is one of 10 lucky customers of the thousands of money transfer transactions organised by MH Money Express Limited.
“I like it. It’s a surprise for me. Why don’t you run it again,” Ms Matebau told the organisers when asked for her feedback.
MH Money Express general manager, Alok Mishra, said the MH Money Express is the super agent for MoneyGram money transfer in Fiji.
MoneyGram is an international remittance agency and is the second largest in the world with more than 198 countries and 320,000 agent locations worldwide.,
Mr Mishra said they were trying to do a lot more to penetrate more into the market as they already have quite a significant portion of the market share.
“This is a gift not only from us but from those who had sent you money too. Be sure to thank them and tell them to keep sending you money,” he laughed.
Mr Mishra said the promotion was a chance for the company to penetrate into the market more as they see a high demanding trend for money transfers nowadays.
“And from just agents, we became super agents and now we are spreading our wings,” he said.
“We are also providing the service of foreign exchange and money transfer in 28 outlets and our biggest strength are our outlets and extended opening hours.”

More promos assured

At the official presentation at Carpenters Finance on Ellery Street in Suva on Wednesday seven of the 10 winners were present.
In addressing them, Mr Mishra assured more of the promotion as such to come and advised customers to take advantage of the promotions in future.

MH Money Express general manager, Alok Mishra (seventh from left) with winners of the MH Money Express promotion and Carpenters (Fiji) Limited staff members. Photo: RANOBA BAOA

By SHEIK DEAN

The Rarawai Penang Cane Producers Association is amending the association’s constitution for better governance and service delivery.
This follows the non-conformities identified in an unannounced audit conducted the past month by Flo Cert.
This audit had ruled out the dismissal of eight sector/board delegates and a number of non-compliances were also identified.
Association executive manager, Sanjina Narain, said the main area of non-compliance was in regards to their constitution, and the need to clarify clauses around the roles and responsibilities of governance system.
“The association is working with all three districts which include Rarawai, Penang and Tavua on the constitutional review process in advance of the general assembly,” she said.
“After receiving the audit report from the certification FLO CERT, the association has started to improve the dialogue amongst our members of the General Assembly.”
Ms Narain said now the board members are working collectively to put the organisation first and unanimously agreeing on the next steps in order to improve their governance system and bring the organisation into full compliance with the Fairtrade Standards.
“As a result, the eight dismissed board/sector delegates of Vararu, Koronubu, Mota, Varoko, Rarawai, Ellington 2, Malau and Nanuku have been reinstated,” she said.
“A general assembly was held with all the board members to confirm that the differences in the association have been fully resolved.”

By MARAIA VULA

Preparations have begun for the two-day Fiji Indigenous Business Council symposium next month. The previously annual event is being revived after two year.
The symposium will be held on March 19 and 20 at the Holiday Inn Suva
And who better to partner with in this milestone event than Fijian Holdings – a highly successful enterprise intended for iTaukei to invest in businesses.
Council president, Ulai Taoi, said: “The council looks forward to undertake meaningful dialogue regarding the involvement of indigenous peoples in the area of business development and mentoring.
“We see our role as being critical to promoting investments not only in Fiji but to consider expanding our engagement to the other indigenous communities in the region.”
Given Fijian Holdings’ status as the largest and most successful indigenous business, group chief executive, Nouzab Fareed, said they are quite excited about their involvement.
He said this was in particular offering advice to the forum and strategically offering new ways of partnering with indigenous businesses.
“Moreover, listening to the challenges that are often faced by indigenous businesses in such a complex and competitive business environment,” Mr Fareed said.
“I think there’s no one better than us that can be part of this symposium and this is not the first time we are sponsoring as we had sponsored in the past.”

The symposium
Mr Taoi said the symposium will highlight the importance of developing indigenous youth entrepreneurship, sharing business development techniques and stories of success.
President Papua New Guinea Indigenous Business Council, Sir Nagora Bogan, will be speaking on the making of Pacific Indigenous entrepreneurs, an exciting topic for new and established entrepreneurs.
Melanesian Spearhead Group Secretariat Director General, Peter Forau will be speaking on the role of the business sector in strengthening the MSG objectives.
Indigenous Solomon Business Council Vice Chair, Nanette Tutua, will share her experience on government role in accelerating indigenous participation.
Registrations begin today at the Freight Services (Fiji) Limited at 24 Edinburgh Drive in Suva.
Council members pay a fee of $130 while members of the public intending to attend pay a fee of $250 which is inclusive of meals.

Council members
Established in 2002, the Fiji Indigenous Business Council is a peak body for all iTaukei businesses.
It is mandated to represent members of the iTaukei community engaged in business or commerce in Fiji.
Mr Taoi said: “When we had our last count in 2005, we had about 165 members. In 2011, there was a drop of about 35 members.
“But we did have a lot of challenges in the past couple of years because most of us own small to medium businesses.
“Some of the challenges of course is doing business, the cash flow, loan and getting money to finance our companies.”
Mr Taoi stressed that Fiji has always been a leader in developing networks that are vibrant and conducive to the economic and export development of the Pacific.

From left: Fiji Indigenous Business Council secretary, Joe Taoi, council chairman, Ulai Taoi, and Fijian Holdings Limited Group chief executive Nouzab Fareed following a press conference yesterday to announce the details of the Fiji Indigenous Business Council’s revived annual symposium to be held next month. Photo: JUSTINE MANNAN

Big shakeup to cut losses and drive turnaround

By RACHNA LAL

Sydney: Axing 5000 jobs, ditching unprofitable routes and retiring ageing gas-guzzling planes, are amidst Qantas’ plans for what’s believed to be the biggest shake-up of its operations.
This follows Qantas’ announcement of an underlying PBT loss of AU$252 million and a Statutory Loss After Tax of AU$235 million for the six months ended December 31, 2013.
Chief executive Alan Joyce described the result as unacceptable and said comprehensive action would be taken in response.
“We are facing some of the toughest conditions Qantas has ever seen,” Mr Joyce said.
Of course all this comes at a backdrop of when Fiji Airways, in which Qantas is the second biggest shareholder, is performing exceptionally well.
Not only has Fiji Airways had a turnaround in profits and revenue, but also it has received global recognition for its rebranding, has increased flight frequencies to major destinations and introduced three brand new Airbus A330s.

Unfairness claimed
Mr Joyce said Australia has been hit by a giant wave of international airline capacity.
He said this has been as a result of a 46 per cent increase in competitor capacity since 2009 – more than double the global increase of 21 per cent over the same period.
“The Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines and yet retain access to Australian bilateral flying rights,” he said.
Mr Joyce said Qantas has been undertaking its biggest ever transformation over the past four years, cutting comparable unit costs by 19 per cent over four years.
But he said this was not enough for the circumstances they face now.
“With structural economic changes being exacerbated by the uneven playing field in domestic aviation, we must now take actions that are unprecedented in scope and depth,” he said.
“We will accelerate our Qantas Transformation programme to achieve AU$2 billion in cost reductions by financial year 2017.
“Hard decisions will be necessary to overcome the challenges we face and build a stronger business.”

Reduction programme
Details of Qantas’ AU$2 billion cost reduction programme and capital expenditure review was announced as well.
Actions by Qantas Group to reduce costs through to financial year 2017 would include fleet and network changes, productivity improvements, consolidation of business activities, new technology and procurement savings.
More than 50 aircraft would be deferred or sold and the Group’s workforce will be reduced by 5000 full-time equivalent positions by 2017.
Qantas has reached agreement on the return of its Brisbane Airport terminal lease, together with related assets, to the airport owner at a cash value of AU$112 million.
The broader structural review of the Qantas Group portfolio continues and no final decisions have been made on other assets.
Mr Joyce said Qantas would do everything in its control to overcome some of the toughest market conditions it had ever faced.
Closer to home, Qantas closed down its only office in Fiji, in Suva the past year in a bid to cut down costs.

Long-term goals
Mr Joyce said their long-term goal remains the transformation of the Qantas Group for profitable, sustainable growth.
“Over the next three years, we aim to secure our strong Group domestic position and maximise Qantas International’s competitiveness,” he said.
“Qantas Loyalty will continue to access new markets and revenue streams, building on its success to date.
“The over-arching focus in Asia continues to be profitably bedding down existing businesses and partnerships.
“Jetstar has been a pioneer Australian brand across Asia and we continue to see major opportunities for it in the world’s fastest-growing aviation region.”
Mr Joyce stressed despite all these, important customer investments will continue.
He said: “This includes the upgrade of our Airbus A330 fleet and the opening of new lounges in Hong Kong and Los Angeles, and the service that Qantas passengers receive will not be compromised.”

Outlook
Qantas Group’s second half of financial year 2014’s operating environment remains very challenging and volatile.
It said soft underlying domestic demand is continuing in the seasonally weaker half, with domestic and international yields and loads expected to remain depressed.

Alan Joyce.

By LITIA MATHEWSELL

The Fiji Pine Group yesterday repaid Fijian Holdings Limited $6.7 million, 16 months after the sum was loaned.
Fijian Holdings Trust Management general manager Sowani Tuidrola received the cheque on behalf of FHL from Fiji Pine Group executive chairman Faiz Khan at the Lololo Pine Station outside Lautoka yesterday.
Mr Khan thanked Prime Minister Commodore Voreqe Bainimarama, who was also present, for helping secure the loan when commercial banks had refused funding because of the Fiji Pine Group’s bad credit reputation.
“Historically our group of companies has a record for all the wrong reasons of not paying loans for around 30 years,’’ Mr Khan noted.
He gave an example of the group clearing a loan the past year taken in 1985 from the European Investment Bank.
Mr Khan thanked the Prime Minister for his faith and reaffirmed his belief in the pine industry being able to reach new heights to compete with the country’s strongest business and match their level of returns.

Fijian Holdings Trust Management Limited general manager Sowani Tuidrola, receives a loan repayment cheque from Fiji Pine Group executive chairman, Faiz Khan, during the hand over in Lautoka. Prime Minister Commodore Voreqe Bainimarama congratulates them. The Prime Minister had helped Fiji Pine secure the loan.Photo: WAISEA NASOKIA

By LITIA MATHEWSELL

An effort to secure the future of the pine industry saw Fiji Pine Limited make lease security bonus payments to 40 landowning units at the Lololo Pine Station yesterday.
A total of $300,000 was handed to various landowning clans from the Western Division.
These are for those whose land either has pine plantation on them or has 15 years of lease term left.
Fiji Pine Limited board executive chairman, Faiz Khan, said the initiative came about after they struggled to get leases renewed upon expiry.
He said many landowners were unwilling to renew their leases because of the lack of benefits they had received out of the pine industry.
Three years ago, the Lololo forest landowners from the Ba closed area agreed to a lease renewal for over 1000 acres of their land on a promise of change.
Mr Khan said yesterday’s payments were a part of that change in motion by delivering that promise.
“These payments are at $5 per hectare or denotes a 45 per cent bonus on the agreed ground rent amount per year, the total amount being paid at $300,000,” he said.
Mr Khan said this amount is expected to grow to $1 million from next year and even surpass that sum.
“The amount that was given will depend on the profitability of our business,” he said.
“It is a form of dividend- our profitability in turn depends on the ability to keep cost structures at efficient levels and continue to grow our business.”
Chief guest Prime Minister Commodore Voreqe Bainimarama lauded the initiative as a way to forge closer partnerships between the Fiji Pine Group and landowners.
The payment witnessed many happy faces, including that of Fiji Pine Trust’s Landowning Unit chairman, Semesa Pio Bolabola.
He thanked Fiji Pine and the Government for the assistance, saying part of the payment would go towards the education of children in Vitogo, Lautoka.

New canteen
Yesterday also witnessed the opening of the pine station’s new canteen facility.
Mr Khan said this was built in recognition of the hard work of all the employees of the Pine Group of Companies.
“They have worked tirelessly with me over the past years to bring about the positive and miraculous changed that we witness today in the industry,” he said.
The air-conditioned canteen also features shower and change rooms for employees.

By DR TK JAYARAMAN

(Dr Jayaraman is a Professor at the Fiji National University’s School of Economics, Banking and Finance, Nasinu Campus. His website is: www.tkjayaraman.com)

“If you owe the bank $100, that’s your problem. If you owe the bank $100 million, that’s the bank’s problem!”
That famous quip from one of the world’s richest men ever, late Jean Paul Getty sums up the tragic story of any bank that failed.
At the launching function of the new HFC Bank the past week, Prime Minister Commodore Voreqe Bainimarama reminded the nation of “the debacle of the National Bank of Fiji (NBF) in the 1990s, the first ever 100 per-cent Fijian-owned financial institution”.
NBF had a FJ$220 million problem. As it could not recover its loans, it failed.

Failures in 21st century
In 2009, many American banks failed.
The latest news from India is that many public sector banks have bad loans. The Kolkata-based, United Bank of India (UBA), has an “acute Paul Getty problem”.
The Reserve Bank of India got its chairman and managing director sacked and the Board superceded, with severe restrictions on its lending.
The Indian government is ever ready to re-capitalise, since most of the bad loans are reported to be owed by powerful politicians.
India is known for melas (fiestas). Frequent bank melas in each town, after the 1969 bank nationalisation, were famous. It was regular Diwali at somebody’s expense!
Loans, regardless of collaterals were disbursed at low rate under the “quit poverty programmes”, in the 1970s and 1980s. It went on until the economic crisis hit India in 1989.
The German author of the 1940s, Bertolt Brecht in utter disgust observed:
“It is easier to rob by setting up a bank than by holding up a bank clerk”.
Today, in Europe, things are no different.
The February 2014 study by the Paris-based think tank, the Organisation of Co-operation and Development on Economic Challenges and Policy Recommendations for Euro Area identifies Greece, Ireland, Portugal and Spain with high non-performing assets.
These have ratios ranging from 10 to 28 per cent and therefore affecting the euro’s future.
The solutions are: raise capital requirements, strengthen regulations and enforce strict supervision.

NBF saga
Fiji’s NBF saga is documented by USP academics Michael White, Roman Greenberg and Doug Munro in their 2002 book: Crisis: The Collapse of the National Bank of Fiji.
Reckless lending was its undoing. NBF bosses knew it was not their money.
In his foreword to the book, the then-Vice-Chancellor of USP, Savenaca Siwatibau, a former central banker, wrote:
“The bulk of the money lent out by the NBF to borrowers came from the thousands of depositors, many of them small ones, who deposited hard-earned savings with the bank”.
The government introduced an amendment in the NBF Act in the early 1980s. That enabled NBF to lend more than 25 per cent of its capital to any one borrower.
“This led to the concentration of lending to one big borrower prior to the events of 1987. This borrower, when it ran into difficulties, started the bank on its irreversible downward path to ultimate collapse,” Siwatibau observed.

Risks faced by banks
Every bank, which accepts deposits, creates deposits and lends under fractional reserve system, knows it is the depositors’ confidence that keeps a bank strong and helps to grow stronger.
Depositors do not withdraw money all the time. They do so only when needed.
So, banks transform deposits of different size and maturity into interest earning assets of different size and maturity.
Banks earn interest income, pay interest to depositors and make profits. Known as “borrowing in the short and lending in the long”, banks transform their liabilities into assets.
Banks face two kinds of risks: credit risk and market risk.
Credit risk is given rise to when a bank’s borrower fails to meet the obligations in accordance with agreed terms. Market risk arises from movements in market prices including changes in interest rates, foreign exchange rates and equity and commodity prices.
When depositors withdraw funds, and if the bank cannot satisfy them, rumours start floating about its “health. The liquidity troubles begin.
The crisis-hit bank exhausts all possibilities: ranging from borrowing from central bank to selling its assets at a lower price than its market value for getting cash to satisfy its depositors on demand.
A bank panic ensues if more depositors try to withdraw cash. Bank failure eventually follows.
What is more dangerous is the fear of spillover effects.
It leads to failure of other banks, whether they are solvent or otherwise.
The latest measures, which were internationally agreed upon after the 2009 global financial crisis, include raising the capital and liquidity ratios for the banks.
When implemented by 2017, they will impose greater capital requirements for the banks. They will facilitate quicker access to liquidity.
The purpose is to force shareholders, instead of taxpayers, to absorb losses.

The Ministry of Agriculture has signed a memorandum of understanding which will see the establishment of a research institution.
The institution will be equipped for modern seed processing, testing, inspection, certification and storage system.
Minister for Agriculture, Lieutenant-Colonel Inia Seruiratu, signed the agreement with China Business Centre (Fiji) Limited and TianFeng Fu Dao Eco-Agriculture (Beijing) Limited this week.
Representing the other parties were China Business Centre (Fiji) chief executive Ma Fei and TianFeng Fu Dao Eco-Agriculture (Beijing) managing director Wang Feng.
Lieutenant-Colonel Seruiratu said the ministry recognised the potential and opportunity the two companies would provide to Fiji’s agricultural sector.
“There is a need to introduce science and technology to strengthen the seed production capacity and management in order to balance the up-stream to down-stream of the agriculture industry,” he said.
Lieutenant-Colonel Seruiratu revealed that Fiji currently imports around $36 million worth of rice and spends approximately $40 million on importing potatoes, garlic, carrots, tomatoes and capsicum.
“The economic growth that Fiji is experiencing now is largely driven by exports which continue to perform strongly,” he said.
“Therefore, the Fijian government aims to achieve import substitution of agricultural products while increasing the export at the same time.”
— MINISTRY OF
AGRICULTURE