J Kevi Group (Fiji) CEO Kevi Reddy (left) hands over the lease documents to Starwood Hotels Fiji Golf maintenance manager David Brennan at Denerau Island, Nadi yesterday. Photo: Sheik Dean

Starwood Hotels Fiji has partnered with J Kevi Group (Fiji) Nadi for the leasing of turf equipment to maintain the Denarau Golf Course.
Starwood Hotels Fiji Golf maintenance manager David Brennan said the investment is worthwhile to lease ten Ransomes Jacobsen fairway mowers.
“It is a very important step to stay with the brand standards of Starwood Hotels worldwide. For the golf course, this is a massive boost in maintenance,’’ Mr Brennan said.
He added, the investment would help maintain the international standard of the golf course for guests and golf members.
But operating such equipment is a challenge and with the help of suppliers J Kevi Group (Fiji), Starwood employees are undergoing training.
“We have set up an extensive training for our staff to train them with not only from the OHS point of view but how to maintain the machines to service us longer.
“Starwood will be working closely with J Kevi to keep these machines in good running condition. We have a good relationship with the suppliers and hopefully more to prosper in years to come,’’ he added.
J Kevi Group had been pioneers in supplying world class golf carts, but have now stepped into turf equipment.
J Kevi group chief executive Kevi Reddy said the company had been the pioneers in supplying golf carts since 1981.
“This is a stepping stone for the group with the first batch of the latest turf equipment with an investment of more than $1 million,’’ Mr Reddy said.
He said the group is keeping up with the strengths and the growing demands of its customers and the technological change.
Mr Reddy said: “We have assigned 48 staff on these systems to look after those trained by experts from Ransomes. The equipment will be leased to Starwood hotels.”
The company plans to also expand to the Solomon Islands and Samoa.
sheik.dean@fijisun.com.fj

MARAIA VULA
Suva

Good news for Life Insurance Corporation of India (LICI) policy holders in Fiji after the insurance company announced it had distributed $7.6 million as bonus as of July 1.
This is despite a decline in interest rates from 5.83 per cent in 2009 to 1.79 per cent in 2013.
LICI Fiji operations general manager, Vimlesh Dhar said LICI bonus had remained the same during these periods.
“LICI will pay the full year bonus to those policy holders as well as for those who take the policy at year end. In addition we also pay a final additional bonus as a top up over the bonus,” Mr Dhar said.
“95 percent of the surplus which is F$7.6 million have been distributed to policy holders as simple reversionary bonus for the year 2013.”
The final additional bonus goes up to 35 percent of bonus for the long term policies.
Mr Dhar announced this during a press conference in the LICI building on Butt Street yesterday.
He added the company had been enjoying a 22 per cent growth since last year.
“Our bonus rates are in public domain everything is very transparent with us even the final rates and interest rates.
“In the current year our business has been growing as of July 15 we have fortnightly figure we are having a 22 percent growth in the business over the same period last year.”
Mr Dhar believes keeping the interest of the policy holder paramount would continue to offer a good value for the investment and the purchase of the policy they always cover.
maraia.vula@fijisun.com.fj

From left: LB Masters MD, Adrian Michael, Fiji Car Club president, Raizal Hanif, Cheaper Rentals general manager, Asish Chetty and Fiji Car Club executive, Sandeep Prakash at Wish Bone Laucala Beach yesterday. Photo: Alfonsa Wayap

The Fiji Car Club hopes that more motor dealers and industry stakeholders will come onboard and show support to the organisation.
With more support, the club would then be able to harness the talent that avid car lovers in Fiji already have.
Club president, Raizal Hanif said this as LB Masters and Cheaper Rentals handed over their sponsorship support to host the first of the 2014 Car Show.
Mr Hanif said while there were some support from various dealers, there was always room for help in organisation.
“We have spoken to a few of the motor dealers in Fiji but at the moment the support is not there yet. But in one way Fiji Car Club can promote their brands,” Mr Hanif said.
“We would like to see more of their products. It’s good if motor dealers and industry stakeholders can come onboard and sponsor such events and that’s how they go.”
Mr Hanif said as interest for an event as such increases, the support by the industry was welcomed as together they would steer the industry in the right direction.
“We’re having a very large interest from the members especially in last year’s car show, where there were 37 cars taking part,” Mr Hanif said of the event.
LB Masters managing director/chief executive, Adrian Michael said there was a lot of talent out there.
Car lovers in Fiji were getting creative by the day and it was the onus of business to harness that creativity given Fiji’s position in car shows on the global front he added.
A total of 16 competing categories are up for grabs this year, club executive, Sandeep Prakash.
“This year we’ve got the Golden Oldies which is one of the best ones that we have. We have to the Best Dressed Car, the Best Sports Car and the Best Drags Car,” Mr Prakash said.
“We expect about 80 per cent of them to be present on the day. The Golden Oldies, people are working on their Mercedes vehicle at the moment and the fortunate thing is that 80 per cent of them are also coming.”
The car show will be held at Civic Carpark in Suva on Saturday with a second in the West later this year.
Meanwhile the Quarter Mile Drag Race to be held in Pacific Harbour is expected to take place on August 1.
feedback ranobab@fijisun.com.fj

IQRA Group Limited director Imam Buksh (sitting) with his wife Noorun Buksh, Bobby Khan (third from right) and Malaysian investors in Nadi yesterday. Photo: Sheik Dean

Government’s attractive investment policies and a supporting push from a fellow back-home Fijian businessman, has prompted Imam Buksh to invest into a $40 million resort project.
Mr Buksh started a construction and development company known as IQ Property Development Limited in Australia 40 years and now intends to expand his reach to back home in Fiji.
The development is located on Nacovi island just off Sonaisali Island.
“Construction…on the first stage kicked off today (yesterday) billed at $10 million and going up to $40 million when the project finishes proper in two years,” Mr Buksh said.
While he has yet to give a name for the resort, Mr Buksh said a lot of employment opportunities will come out of it.
He added, the investment was made possible through Government’s dual citizenship policy, the political stability and robust economic growth.
“Close to 300 employment opportunities will be created with construction works headed by Western Homes Limited.
“I have confidence in the Bainimarama Government and it is doing very well.”
He said Government has a fair deal to every individual and investors.

Area
The resort will cover 40 acres of crown land on Nacovi Island.
Registered under the IQRA Group Limited in Fiji, the first stage will see a tourism resort before heading to the second stage of a Health and Spa Resort.
And added to this, Mr Buksh also intends to have a water sports park of international standards and a marina.
“I have investors from Malaysia and they have inspected the resort site and plans are underway to have water sports activities of international standard,” Mr Buksh said.
“I have been out of this country for 40 years. I love Fiji and it is time to give back and share our expertise and experience to do business in Fiji.
Western Homes director, Bobby Khan said under the current Government, a number of investments had been seen.
“Mr Buksh supports the Bainimarama Government. He has a number of investors, who are waiting to invest once this project is completed,” he added.
Mr Khan further added a total of four resorts will be constructed in Nacovi opposite Sonaisali Island in the next three years.
Meanwhile, an upcoming resort, Resort Relax Fiji by Mr Khan is reaching its final stages and is set to open its doors in February 2015.
Feedback: sheik.dean@fijisun.com.fj

Members of the Solovi PL ONE gang getting the loading cane for the journey to the Lautoka Mill. Photo: NANDNI VANDHANA

The Sugar Cane Growers Council has welcomed the announcement of the reduction of fuel prices.
Chief executive, Sundresh Chetty, said this would greatly benefit the sugarcane farmers.
“The famers will benefit as they use the lorries and tractors to help transport the cane to the mills,” Mr Chetty said.
“Farmers will no longer be burdened with the fuel costs and this will make the harvesting season go smoothly.”
Sanmorgan Pillay, 63, was glad of the decrease in fuel price, as this will greatly benefit him in transporting cane.
“I have been a farmer for 20 years and through the earnings from my farm, I have supported my family all these years,” Mr Pillay said.
“The weather is favorable and now I will be able to save costs as well.
“At the moment, we are cutting on my farm which has about 300 tonnes of sugarcane.”
Mr Pillay said one of challenges he faced was the damaged bridge.
But he said the farmers got together and fixed it so they can transport cane to the mill.
Feedback: nandni.vandhana@fijisun.com.fj

Fiji Revenue and Customs Authority chief executive Jitoko Tikolevu (right) talks to Mahen Billimoria of Ba during the demonstration of the commissioners assessment in Lautoka. Photo: WAISEA NASOKIA

The Fiji Revenue and Customs Authority has assured taxpayers that they are working on accelerating outstanding tax refunds.
Authority chief executive, Jitoko Tikolevu, confirmed this in Lautoka yesterday following the Commissioner’s Assessment that all the refunds will be processed in the coming weeks.
“A lot of issues and complains have been coming to my office as well as to our staff on delays in the issuing of refunds,” said Mr Tikolevu.
“There were some issues internally but everything is normalised now and all the complaints are being looked into,” he said.
Mr Tikolevu said those tax payers with big amounts of refunds will also be getting the refunds in the coming weeks.
“I acknowledge all the complaints in regards to the delay and if there are any more complaints, please inform us,” he urged.
“We are getting on board some of the queries, complaints and difficulties on the ground.”
Mr Tikolevu also encouraged employers to seek assistance from the authority for filing of outstanding Electronic Monthly summaries (2013) for employees.
“The new system has challenges but we are looking to working together with the employers to get it right,” he said.
“It has been a long journey for the authority, which started two and a half years ago and this is all part of reform for taxation in the country.”
Feedback: nandni.vandhana@fijisun.com.fj

Minister for Works, Transport and Public Utilities Captain (Navy) Timoci Natuva (front sixth left) with other participants of the Symposium on Exploring Korean Contributions to the Blue-Green Economy of the Pacific region at the Holiday Inn Suva yesterday. Photo: PAULINI RATULAILAI

There is a need for the Pacific island countries to understand the Korean business culture in order to continue the momentum and building of bilateral trades.
This was the remark by Fijian Ambassador to Korea, Filimone Kau, during the opening of the Symposium on Exploring Korean Contributions to the Blue-Green Economy of the Pacific Region yesterday.
The one-day symposium was held at Holiday Inn Suva with speakers from key organisations in Korea, Fiji and the Pacific Islands.
With Korea’s impressive shift from being a beneficiary to a donor economy, there was much to learn from what Mr Kau described as is well-known as Korea’s pali pali system.
“Sometimes if they do not understand the processes at the local level, at the national and regional level, they will be frustrated and will return empty-handed,” Mr Kau said.
“In that process, for those of us who need to accommodate that interest, we need to get into a serious pali pali (sense of urgency) mode.
“We need to be on one accord. In order for us to be stronger in our relationship, we need to interact first at a personal level and understand their culture of doing business.”
Mr Kau acknowledged Government’s policies and business partnerships that enabled Korea to develop a business network, one of which was GIMCO-Tropik Woods, a biomass waste initiative.
Korean keen
Korean Ambassador to Fiji Seong-in KIM said Korea was very keen to support and strengthen ties with Fiji and the rest of the Pacific islands on sustaining a Blue-Green Economy.
“Korea is a country that has rapidly developed and is one of the world’s leading countries in areas such as shipbuilding, ocean technologies, telecommunications, IT and scientific and technological research,” Mr Seong-In said.
“I strongly believe Korea and the Pacific region could mutually benefit with better and deeper involvement of Korean technological expertise in this region.”
The event, he said, was meant to provide interactive dialogue to explore possible areas of mutual interest between Korea and the Pacific.
This is in the application of science and technologies to the Blue-Green Economy and the business opportunities that could arise, Mr Seong-In said of the symposium.
maraia.vula@fijisun.com.fj
ALSO READ
Cane farmers welcome reduction in fuel prices >P12

Vodafone Fiji
SUVA
Vodafone Tahiti has signed a one year service agreement with Vodafone Fiji. This will leverage Vodafone Fiji’s depth in industry experience and know-how to optimise Vodafone Tahiti’s return on investment.
Vodafone Fiji chief executive, Pradeep Lal, has hit the road running securing his first major contract within the first week of his appointment as the new CEO of the company.
Vodafone Tahiti CEO, Patrick Moux, said “Vodafone Fiji has an enviable and proven track record in mobile telecommunications industry in Fiji.
“Particularly impressive is their fast to market rollout of new network technologies and related products and service. They have successfully defended their turf in a post-competitive environment with a strong grip on majority market share after 6 year of full competition.
“We are very fortunate to have signed this service agreement with Vodafone Fiji and are quite keen to adopt some of their success strategies in our business.”
Mr Lal said: “Over the past two years, many operators in the Pacific have looked at Vodafone Fiji’s business model and success in a post competition environment, and have approached them to assist with their own strategies.
“The services we provide are in all functional areas of a mobile telecommunications business.
“This includes roaming, wholesale, sales, marketing, procurement, engineering and other value added services in which we have the capability and capacity to do so.”
Vodafone growth
Mr Lal said Fiji’s enabling telecommunications industry environment has also had a direct and positive impact on how Vodafone has grown leaps and bounds from 3G to 4G services provider in just the past eight months.
“I wish to commend the Government for shaping a forward looking regulatory environment through policies such as the National Broadband Policy,” Mr Lal said.
The very conducive environment has been the major catalyst for innovation in Fiji compared to some of the other regional island countries.
There are many opportunities that are being created as result of closer strategic relationship through the Pacific Islands Development Forum and through the Melanesian spearhead groups.
The region as a whole is looking to its neighbors for partnerships and alliance to leverage off each other’s strength.
Vodafone Fiji is happy to offer its expertise and know-how in mobile telecommunication network operation to other network operators in the region to create a more vibrant, competitive and robust mobile communications network across the region.
Mr Lal said the mobile telecommunications industry in Fiji is now reaching saturations points and going regional through strategic alliance is an opportunity that Vodafone Fiji finds a good fit with current business model.
“Several regional operators interest in Vodafone’s services has piqued recently and we will be signing up more clients very soon.”
Feedback: rachnal@fijisun.com.fj

rachna lal
suva

The Attorney-General and Minister for Civil Aviation, Aiyaz Sayed-Khaiyum, has hailed Fiji Airways’ half year financial results as a “great achievement” for the airline and the nation as a whole.
“From being on the verge of bankruptcy four years ago, we have achieved a remarkable turnaround in the fortunes of our national airline,” he said.
“This has been the direct result of the Bainimarama Government’s reforms, its insistence on financial discipline and the introduction of a new culture of management and staff working together with clear objectives and their eyes set firmly on the future.”
Mr Sayed-Khaiyum said their decision to invest in new fuel-efficient aircraft was paying dividends.
“We have established a firm foundation for Fiji Airways to expand to more destinations and fulfill its vision to become the world’s best boutique airline,” he said.
“I especially want to thank the staff of Fiji Airways for their dedication and commitment to securing the airline’s future.
“Every single worker now has a personal stake in the airline through our profit sharing scheme and an incentive to help us take the airline to even greater heights.”
“This is also good news for every Fijian, whose fortunes are tied to the airline because of its critical role in supporting our biggest export revenue earner, tourism.
“This result also demonstrates beyond doubt that the debt facility provided to Fiji Airways to buy new aircraft by the FNPF – our national superannuation scheme – has been a wise investment in our collective future.”

Result noted as best half year Operating Result in National Carrier’s History

RACHNA LAL
SUVA
The Fiji Airways Group has reported an underlying operating profit of $17.2 million for first six months of this year as at June 30.
In the corresponding period of 2013, the group’s underlying operating profit was $0.5 million.
The amount is the total adjusted operating profit excluding release of aged management accruals and one-off items like the introduction cost of the first A330 in 2013 and the hard landing cost in 2014.
Managing director/chief executive, Stefan Pichler, said: “In the first half year, we financed the extra cost of the hard landing and made some provisions for the next ATR 72 to join the fleet in December this year.
“But, we also released some aged management accruals from previous years. If you net those things off, then we have achieved an underlying operating profit of $17.2 million.
“And, if you do the same exercise for the previous half year 2013, it gets you to a break even result of $0.5 million.
“So, in a nutshell, we are $16.7 million better than in 2013.”
He attributed the strong performance to higher load factors, more efficient cost management, streamlined management structures and a highly-motivated staff.
“It has been an excellent start into 2014 and now we have to keep the pace as we want to pay a profit share to our staff for 2014 as well as a dividend to our shareholders,” Mr Pichler stated.
“The key driver of this underlying profitability was the 10 per cent higher load factor across the whole network.
“We flew four per cent more passengers and produced five per cent more sectors, but in a much more efficient way.
“Our company was not in a good shape back in 2013, with a lack of leadership and strategy and a rather dysfunctional management structure.
“We put in place corrective measures and laid the challenge to our entire team.
“I’m delighted with the spirit of a winning team we have created. We have now gained momentum and the focus is to work hard to keep the ball rolling.”

Hard landing cost
Meanwhile, the airline reported a net cost of around $8.6 million for fixing the Airbus A330 which got damaged in the hard landing incident at the Sydney Airport earlier this year.
Mr Pichler confirmed this net cost was the cost they had to bear after claiming a substantial amount of money back from the insurance.
“So, it is an expensive exercise and therefore we have made some changes in management as well as in operational processes. We need to try to avoid this kind of expense in the future,” he said.

Commitment
This is the first time the Airline Group has released interim results for half its financial year, the best ever in the airline’s history.
Mr Pichler said they believe reporting provisional results for the first half of the financial year is an important step for Fiji Airways.
“We are committed to improving transparency and credibility, not only at home in Fiji but also for our international financial partners,” he said.
“We will continue our strategy of increasing revenues while controlling costs.
“Our pricing remains competitive in the market and we will continue to make investments in our customer experience across all touch points.
“This includes the on-board and on-ground experience, our customer service and the training for our team.”
Despite the good results, Mr Pichler is not taking this for granted.
“Today we are sailing in nice weather, but we also have to be ever-ready for difficult times as the airline industry is highly volatile,” he said.
“Although the outlook for the remaining Fiscal Year remains positive, there is no leaning back. This is like a rugby game, we have to pick and drive continuously.”
Feedback: rachnal@fijisun.com.fj

Car owners with some vehicles and Fiji Car Club members at the Takashi Suzuki Gardens on Queen Elizabeth Drive in Nasese yesterday. Photo: ALFONSA WAYAP

Fiji Car Club’s 2014 Car Show sponsored by LB Masters and Cheaper Rentals will be on tomorrow showcasing vehicles that have been modified costing up to five figures. The show will be held at the Civic Car Park from 10am to 4pm tomorrow.
Fiji Car Club president, Raezal Hanif, encouraged people to support the show and bring families along.
“We are looking at an exciting event ahead of us so bring along your family and friends, enjoy the food that’s available and help us raise awareness for car shows in Fiji,” he said.
Yesterday, a number of vehicles to be showcased at the event, were parked at the Takashi Suzuki Garden in Nasese, Suva.
Avid car-lover, Vicky Nath, modified his father, Satendra Nath’s Mazda 1987 RX-7, Series 3 spending $30,000 modifying it. He said he will contend the vehicle for Best Interior category. Mr Nath thanked the club for keeping the momentum of the car shows in Fiji and hoped for more future activities to take place as the industry grows.
For another contender, Asish Kumar, owner of a Honda Accord 1994 said, it cost him around $15,000 to do up his vehicle.

Categories For the Show are:
nBest dressed car
Best sports car
Best family car
Best bike
Best drag car
Best interior
Best exterior
Best engine bay
People choice
Best sound setup
Best sound
Presidents award
Best ute
Best SUV
Best golden oldie
Best restoration

Participation:
nEvery participant for the Day will have the privilege to compete in two categories
n Entry Fees for the day = $40.00 (if you are a member)
n Entry Fees for the Day = $70.00 (if you not a member; in these case new participants will be members at a cost of $30.00)
n Will start at 10am and finish by 4pm

Feedback: ranobab@fijisun.com.fj

Fiji Commerce and Employers Federation president and PIPSO vice-chair, Howard Politini (right) with the Korean Chamber of Commerce & Industry vice president Dong-Geun Lee after signing the MOU. Photo: JONA KONATACI

The Korean Chamber of Commerce & Industry said Fiji was a first choice as its ideal central location to do business in the region.
This was highlighted during a signing between Korea Chamber of Commerce & Industry, the Fiji Commerce and Employers Federation and Pacific Islands Private Sector Organisation (PIPSO).
The signing took place earlier this week at the Holiday Inn Suva.
Chamber vice president Dong-Geun Lee said Korea has good relations with big economies.
“But now it’s time to show the world that Fiji is a very promising country for Korean companies to invest in and trade with,” Mr Don-Geun said.
“Fiji has an abundance of natural resources and Korea has the experience to develop IT infrastructure and other know-how for economic development.
“So combined with Fiji’s and Korea’s strengths, there’s a win-win situation for both countries.”
He added this was the first time the chamber had pledged support for the region and with PIPSO and FCEF and there was high expectations of projects in the Pacific to take place.

A milestone
Fiji Commerce and Employers Federation resident Howard Politini said the MOU symbolised further milestone established between the entities involved.
“Like any sustainable business venture, we must strive for growth. Today marks a milestone as we look for a productive partnership for the future growth of our mutual interests,” he said.
Mr Politini said the federation was Fiji’s long recognised and mostly represented private sector organisation. It has a 54 year history.
He said they recognised this relationship as a valuable and essential component to supporting businesses across the globe for the benefit of the economies of both countries.
Feedback: ranobab@fijisun.com.fj

RANOBA BAOA
suva
While it’s still early to detect direct collaborations between Korean Pacific Island countries in terms of the Blue-Green Economy concept, a recent symposium was a success.
The Symposium on Exploring Korean Contributions to the Blue-Green economy of the Pacific Region: Earth and Mine Sciences & Business Opportunities was held at Holiday Inn Suva on Thursday.
Korean Ambassador to Korea, Seong-In Kim said not only was there a symposium, but business match-making sessions taking place too.
“We also conducted a business match-making with Korean businesses and different Pacific Island representatives and businesses,” he said.
Business match-making participant, Korea Marine Business Association vice president, Hyung Ki Kim, said there was a lot of potential for ocean technology in Fiji.
“What I did was introduced the renewable energy aspect in ocean. Fiji is a good location for ocean thermal energy conversion and creating the technology,” Mr Kim said.
He added they were excited to become part of the symposium and looked forward to collaborations in future.
Department of Energy said that Fiji was looking into this possibility but given its extensive and expensive exercise, there was a lot to ponder in regards to the technology.
Association chairman, Jae-Wan Lee said the association was an incorporated association established under the Korean Ministry of Ocean and Fisheries in 2009 with 170 companies.
“I have no doubt that the association members will contribute to achieving the Pacific Islands’ long term development goal for Blue-Green Economy,” he said.
Feedback: ranobab@fijisun.com.fj

Sun INTERVIEW

Fiji indeed has a lot of potential as a call centre given our neutral accent and a significant portion of well educated population. Mindpearl Fiji’s growth and the recent 2014 European Outsourcing Association Offshoring Destination of the Year award, is a testimony to this potential.
Mindpearl Fiji, a global outsourcing contact centre started in 2009 with only 30 staff and is based in the Kalabu Tax Free Zone in Nasinu. Today, the 24-hour operations, with its headquarters in South Africa, boasts 530 Fiji staff working a nine-hour shifts looking after 14 of the company’s global partners.
General Manager, Mark Mahoney, moved to Fiji with his wife and three children five years ago to open this Suva contact centre as a start-up operation.
Five years on, Mr Mahoney said they are always looking to grow the business creating more opportunities.
“Exposure, such as that generated by our recent success in the European Outsourcing Association Awards certainly helps us raise the profile of Fiji in this arena as awareness is presently our biggest challenge,” he said.
Mr Mahoney said some of the benefits of operating out of Fiji was an excellent, highly-capable work force, with a wonderful customer service ethic and who truly enjoy interacting with overseas customers and representing prestigious global brands.

Mindpearl Fiji’s clientele goes from our local airline (Fiji Airways) to international airlines such as Swiss and American Airlines.

For both of these world renowned airlines, Mindpearl services major markets such as UK, Europe, Asia Pacific and Canada from their Suva contact centre.
“When you are representing some of the world’s largest airlines servicing 90-plus destinations, then no two customer interactions are ever alike. This is what keeps it very interesting,” Mr Mahoney said.

Outgoing president of the Fiji PNG Business Council, Kevin McCarthy, being interviewed by the Fiji Sun Business Journalist, Maraia Vula.

Fijian Holdings Limited Group chief executive, Nouzab Fareed, has been elected as the president of the Fiji Papua New Guinea Business Council.
Mr Fareed, a chartered accountant and investment specialist, has held top jobs in Fiji and Sri Lanka.
He taught MBA programmes at universities internationally before being recruited to work in Fiji.
Fijian Holdings Limited is a successful and significant player in Fiji’s business sector and also has investments in Papua New Guinea.
Mr Fareed who is away on an overseas trip, in a note sent to his council members, said he was happy with his new appointment.
The note was read by outgoing president and Bank South Pacific country manager, Kevin McCarthy, at the council’s annual general meeting at the Grand Pacific Hotel on Thursday evening.
Mr Fareed thanked the members of the council for appointing him as president.
He also thanked the previous committee for the work done over the past two years and said he was confident the new executive committee will continue to take the council forward into a new level.

Further plans
Mr Fareed hopes to host one day business workshops like the Fiji PNG Business Symposium with speakers from both sides.
He said this would be done at alternate locations; one year in Fiji and one year in PNG.
“We are hoping to welcome a PNG business delegation to Fiji. Hopefully it will come to fruition,” he said.
Mr McCarthy, congratulating Mr Fareed on his appointment, acknowledged him as a very competent chief executive of a major company in Fiji which has major business dealings in PNG.
“They have active companies operating in PNG so he has understanding of doing business in PNG and the challenges there,” he said.
“He has the great skills set for the role as a president a very good networker.”
Mr McCarthy highlighted membership would grow but with marketing and more networking events.

New Trade Commissioner
Meanwhile, Mr Fareed said the appointment of Fiji’s new Trade Commissioner to PNG would improve investment ties between Fiji and PNG.
Mr Fareed said the council will await for the appointment of a new Trade Commissioner to PNG.
“As I said, the role of the trade commissioner is really important. If we get that in place and have a trade mission up in PNG, we will then get people naturally who would want to join the council,” he said.
Mr Fareed will appoint a vice president during the council’s next meeting.
Feedback: maraia.vula@fijisun.com.fj

RACHNA LAL
SUVA

The suspension of Fiji Airways flights into Solomon Islands is not expected to have any impact on Fiji Airways revenue.
Fiji Airways managing director/chief executive, Stefan Pichler, confirmed the airline was running on break-even with their Nadi-Port-Vila-Honiara flights.
“We did not make any money from flights between Port Vila and Honiara,” he said.
Mr Pichler stated the suspension of those flights has now enabled Fiji Airways to fly Nadi to Port Vila with their brand new ATR 72-600 instead of a Boeing 737.
“This is great news because we operate ATR 72 at lower cost,” he said.
Meanwhile, Mr Pichler expressed his disappointment over Solomon Islands not participating in a recent regional forum where there could have been a possibility to hold some form of discussion.
“After just coming back from the Melanesia Airline and Tourism Forum in Vanuatu, our team was disappointed not to find any senior representative from Solomon participating,” he said.
“We could have talked. I personally believe that in life you always write yourself apart, but you talk yourself together. So, I think releasing press releases is not the best way to lead a dialogue.”
Solomon Airlines chief executive, Ron Sumsum, told the Fiji Sun given this situation was currently at government level, it would not be suitable for the airline to make any comment at this moment.
“Solomon Airlines is hopeful of a swift resolution,” he said.

MARAIA VULA
suva, newsroom

The Grand Pacific Hotel has officially launched its website.
This is yet another step in the modern redevelopment of the iconic landmark hotel on the Suva harbour front.Hotel general manager Eugen Diethelm highlighted the website http://grandpacifichotel.com.fj/ was a new beginning as its webmasters WEB MEDIA last Tuesday activated the new look GPH Online.
Mr Diethelm said: “I had a series of meetings with Web Media and I explained to them what I wanted.
“Of course the website is very important so now the whole world will know how GPH looks, what service we give it’s very important that we are showcase it to the world.”
This will enable them to share the latest news, updates, and upcoming events with its customers.
Like every hotel website it showcases the rooms, restaurant outlets, ball rooms, swimming pool, leisure activities, spa and gym, bar membership and many more available facilities and programmes.
He noted they would have more online bookings from overseas.
maraia.vula@fijisun.com.fj

Papua New Guinea post courier

Air Niugini has appointed Australian company Business Advantage International to produce the airline’s flagship in-flight magazine, Paradise.
The publisher will replace current publisher, Fiji-based Islands Business International, from the next issue, due in September.
“Business Advantage International know PNG well, as publishers of PNG’s flagship annual investment guide, Business Advantage Papua New Guinea, as well as many other first-class publications,’ said Simon Foo, Air Niugini’s chief executive officer.
“We think the magazine is in good hands and we look forward to seeing how the magazine flourishes under their management.”
Business advantage said as part of the new arrangement, the magazine will be progressively re-designed with content closely tailored to the interests of those using Air Niugini’s international flights.
“The opportunity to reimagine the magazine of the national airline is not an opportunity that comes to a publisher every day,” said Andrew Wilkins, publishing director of Business Advantage International.
“Paradise magazine often provides international travellers with their very first taste of PNG. We are looking forward to producing a magazine that shows them just what an exciting, dynamic and culturally rich country PNG is.”
Mr Foo said: “The appointment of a new publisher for Paradise magazine is part of Air Niugini’s ongoing project to improve and enhance every aspect of our operations.”
feedback rachnal@fijisun.com.fj

European union STAtEMENT

The Government of Fiji notified the European Union on Friday of its decision to apply the interim Economic Partnership Agreement (EPA) with the European Union.
The interim Economic Partnership Agreement (EPA) between the EU and Fiji is therefore ready for implementation.
The EPA provides for free access into the EU for all products from the countries concerned. In the Pacific region, Papua New Guinea has already ratified this agreement and implementation is on-going.
An EU spokesperson for trade said: “Fiji’s decision to apply the interim Economic Partnership Agreement is a very significant step in our relationship.
This agreement is a true partnership for trade and development. The EPA is one of our main tools to assist developing countries, such as Fiji, on their path to economic growth and diversification of their economies.”
The interim Economic Partnership Agreement provides for duty-free quota-free market access into the EU for all exports originating from Fiji and Papua New Guinea.
For its part, Fiji will gradually open its market to European exports over a transitional period until 2023, with the exception of some agricultural and industrial sensitive products.
In addition, the Agreement contains provisions on trade defence instruments, dispute settlement and sustainable development principles. This agreement is a negotiated and lasting framework for trade relations between the EU, Papua New Guinea and Fiji. This agreement is also open to other Pacific ACP States that wish to join.
The interim Economic Partnership Agreement provides for a joint Trade Committee to monitor the implementation of the Agreement.
The fourth meeting of the Committee between the EU and Papua New Guinea will be the occasion to fully associate Fiji with the implementation.

Context
The interim EPA between the EU and Pacific ACP States was signed by Papua New Guinea in July 2009 and by Fiji in December 2009. The European Parliament approved the Agreement in January 2011 and Papua New Guinea ratified it in May 2011. Fiji will now start to implement the agreement as from the end of July 2014.
With the Cotonou Agreement signed in 2000, the African, Caribbean and Pacific (ACP) States and the EU opted for more ambitious trade and development relations.
These new relationships are developed through a negotiated partnership governed by predictable and stable rules, and are accompanied by development co-operation. Cooperation aims to strengthen the institutional and productive capacities of ACP States and to support the necessary adjustment process.
The EPAs seek to contribute to ACP regional integration and the creation of more effective regional markets.
Negotiations of these trade and development agreements under the Cotonou Agreement were launched in 2002.
The EU-Pacific regional negotiations began in October 2004. However, it became clear in late 2007 that it was impossible to finalise the negotiations in all ACP regions before the end of the Cotonou trade regime, i.e. 31 December 2007.
A series of interim agreements were concluded in order to avoid trade disruption for ACP exports into the EU resulting from the expiration of the Cotonou trade regime by 31 December 2007.
From 1 January 2008, an ACP State which had concluded an EPA could continue to have free access into the EU for all its products while continuing its internal approval process for such an agreement.

As a result, the interim Economic Partnership Agreement between the EU and the Pacific ACP States, as provisionally applied by Fiji and ratified by Papua New Guinea, should be considered as a stepping stone towards a coherent and comprehensive partnership between the EU and the Pacific region.
The goal is to reach an agreement which supports sustainable development and promotes regional economic integration.
Other countries in the region potentially affected by the EPA process are the Cook Islands, Kiribati, the Marshall Islands, Micronesia, Nauru, Niue, Palau, Samoa, the Solomon Islands, Tonga, Tuvalu, and Vanuatu. The current scope of the EPA, which relates to trade in goods, could be deepened to cover trade in services, rules on investment and trade-related areas such as sustainable development, competition and trade facilitation.

EU-Fiji trade
In the Pacific, Fiji is the second-largest trading partner of the EU. The main EU exports are electrical machinery and equipment. Fiji’s main exports to the EU are raw cane sugar, other agricultural products and fish.
feedback rachnal@fijisun.com.fj

The World Cup 2014 matches in Brazil just ended.

Dr TK Jayaraman

However, our attention on Brazil continued for another match: the advanced countries versus the five emerging economies, known as BRICS.
The BRICS, representing three continents, accounts for more than a quarter of the world’s land area and 40 per cent of its population.They have a combined GDP of US$ 24 trillion, about 20 percent of global GDP.
The term, BRICS has evolved from the earlier term, BRIC (Brazil, Russia, India and China), which was coined by Jim O’Neil in 2001, a former staff of Goldman Sachs Group. He foresaw the growing weight of the four largest emerging markets. With South Africa joining them in 2011, the term got enlarged: BRICS.
The BRICS held series of annual summits since 2009. The theme of the just ended sixth summit was: “Inclusive Growth; Sustainable Development.”
It was held on July 15-16 in the Brazilian resort of Fortaleza.
The sixth summit decided to (i) create a US$100 billion Development Bank and (ii) institute an emergency reserve fund, known as Contingent Reserve Arrangement (CRA).

Reforming Financial Architecture
These two decisions are aimed at reducing dependence on the World Bank (WB) and International Monetary Fund (IMF).
Voting power is proportionate to the financing provided by its members. Developed countries have over 60 per cent of voting power across WB and IMF. With around 17 percent of votes the US effectively wields veto power over any changes to the ownership structure.
Although developing countries account for 80 per cent of the world’s population, they have only 40 percent of the votes.
Middle income-countries and BRICs have only one third of the votes and low-income countries just 6 per cent. Among Pacific island countries, PNG has 0.08 percent, followed by Fiji (0.06), Samoa, Solomon Islands and Tonga with 0.03 percent each and Vanuatu 0.04 percent.
The global economic downturn since 2008 did not become another Great Depression only because of impressive growth in BRICS, led by China. In fact, BRICS’ growth rate continues above the global average rate.
Developing countries led by BRICS have been pleading for reforms in regard to organization and voting power and in the governance of WB and IMF.
Frustrated by the developed countries’ reluctance for reforms and the unwillingness to coordinate policies between BRICS and the US, which led to massive capital outflows from emerging markets last year, triggered by the scaling back of U.S. monetary stimulus, are all responsible for the latest decisions.BRICS action reflects the growing desire for a fresh approach to global financing.

The New Development Bank
The new development bank is not only for BRICS but also for all developing nations.No country will dominate. The initial subscribed capital of $50 billion is divided equally between the five founders, ensuring each member has equal voting rights. Lending would start in 2016.
Membership is open to other countries as well, but the capital share of the BRICS cannot drop below 55 percent.There will no stringent conditionalities of the kind associated with WB and IMF loans. Due regard will be given to domestic conditions. The bank will be based in Shanghai with the headship being rotated once in five years.
The first president will be from India; and then from Brazil and Russia.
All these are notable departures from the traditions of World Bank (the President, always an American) and IMF (the chief, always from Europe), ever since their establishment in 1944.

Contingency Reserve Arrangement
The Contingency Reserve Arrangement (CRA) will have $100billion for assisting all developing nations to avoid “short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements”.
China, with the world’s largest reserves holder, will make the bulk of contribution: US$41 billion, followed by US$18 billion each from Brazil, India and Russia and US$5 billion from South Africa. The financial facilities from BRICS are open to all Pacific island countries including Fiji.

Not a rival
With (US$ 50 billion), the new bank is way behind Asian Development Bank (US$136 billion) and African Development Bank (US$98 billion).
The World Bank is far ahead, with US$223.2 billion in subscribed capital.
The BRICS bank will play a complementary role. Skeptics see it as a plot to end Western dominance. But, Brazil’s President Dilma Rousseff noted: “It is a sign of the times, which demand reform of the IMF.”
The World Cup is only for the winner at the finals.
The BRICS cup is for rich and poor nations, partners in development.
nDr Jayaraman is a Professor at the Fiji National University’s School of Economics, Banking and Finance, Nasinu Campus. His website is: www.tkjayaraman.com
CLARIFICATION: In Saturday’s Fiji Sun we ran an article headlined World Cup to BRICS Cup by Dr T.K Jayaraman. Due to technical issues the content of the article was from two weeks ago. We regret the error.