DAILY HANSARD

            MR. DEPUTY SPEAKER.- Honourable Members, on behalf of the House, I wish to welcome visitors in the gallery this morning, which includes the school children from Nadelei Catholic School and Champagnat Institute. So, welcome to Parliament and I hope that your visit will be very fruitful.  

RESUMPTION OF DEBATE ON THE 2007 APPROPRIATION BILL, 2006

            HON. I.U. MATAIRAVULA.- Mr. Deputy Speaker, Sir, I rise to make my contribution to the Appropriation Bill before the House.  In doing so, I reconfirm my support for the honourable Prime Minister. 

            I extend my gratitude to the honourable Minister for Finance and National Planning and his staff, for a well prepared and balanced Budget.

            Mr. Deputy Speaker, Sir, before I make my comments on the Budget proper, I wish to comment on our Multi-Party Government arrangement.  It seems to me that we have reached a constitutional crisis, with the opposition of some of the Ministers from the Fiji Labour Party, to this Budget.

            The court's decision concerning collective responsibility has been explained fully and very clearly by previous speakers.  I fully support the stance the honourable Prime Minister has taken on this matter.

            Sir, in a Westminster system of democracy, it is only proper that considering the principle of collective responsibility, Government Ministers who are opposed to this Budget, should immediately tender their resignation. 

            The Fiji Labour Party had joined this multi-party arrangement without pre-conditions.  In fact, the Supreme Court's ruling is quite clear; it could not impose terms, if it was to be a part of this multi-party arrangement.

            Soon after the handing down of the 2007 Budget by the honourable Minister for Finance and National Planning, the Fiji Labour Party announced it will not support this Budget.

            Mr. Deputy Speaker, Sir, by virtue of the principle of collective responsibility, I believe that it is proper Parliamentary convention and indeed common courtesy, that the Fiji Labour Party should have informed the honourable Prime Minister that its position in the Multi-Party Government has become untenable, due to its declared opposition to this Budget.  It should then withdraw honourably from the multi-party arrangement.

            Mr. Deputy Speaker, Sir, I believe that with better leadership in the Fiji Labour Party, we would not have reached the current constitutional crisis.

            The honourable Member for Ba Open and leader of the Fiji Labour Party and all its honourable Members in this august House have a duty to this nation, to support this Budget or honourably bow out.  Instead, the nation now faces another constitutional crisis because of the lack of moral courage in the Fiji Labour Party leadership, to fully commit to collective responsibility under the current multi-party leadership.

            Mr. Deputy Speaker, Sir, the Multi-Party arrangement is an attempt to bring our people, especially our major races together.  The 2007 Elections has shown us that our community is more divided along racial lines than ever before.

            If the Fiji Labour Party wishes to take us back to the politics of communal division and strife, then the Fiji Labour Party leadership should be responsible for the consequences. 

            Mr. Deputy Speaker, Sir, the honourable Minister for Finance and National Planning delivered the 2007 Budget with the theme "Partnership for Sustained Growth".  It recognised Government's belief of strengthening its partnership at all levels, private sector, civil society partners and all communities in Fiji.

            Sir, it sets the platform for sustained economic growth which will enable the country to move forward by creating opportunities for the people and at the same time, reducing the poverty which is the basic manifesto for all political parties in the last General Elections. 

            Mr. Deputy Speaker, Sir, it will only be sustained (as correctly mentioned by the honourable Minister for Finance and National Planning), if the pillars of our economy are strong, is inclusive and the benefits are equally shared by everyone.  While we felt the economic growth from 2001, we are now facing a lot of challenges. 

            Mr. Deputy Speaker, Sir, we need to increase our export.  Investments must continue, accelerate reforms in the Public Service, Public Sector and Finance and Land Tenure must be resolved as re-confirmed by His Excellency the President, when he opened Parliament in June this year.  Sir, I was surprised when the Leader of the Opposition mentioned that the Budget is a lazy one.  What a comment!  I wish to remind him that only "lazy People" do not fit in this Partnership for Growth.  To our indigenous people, I support what the honourable Prime Minister mentioned the other day that excessive yaqona consumption is the cause of this laziness.

            Sir, this Budget creates opportunities, and it is business driven to lift our living standards, especially in rural areas. 

            Sir, partnership should begin in this august House, and I know all the Labour Members in this august House now have a good suit.  Sir, originally they were cane farmers and now they trying to be smart and act like professionals.  Sir, in this Partnership for Growth, one should remember how one was brought up and this, Sir, includes myself.

            HON. F. ANTHONY.- Point of order, Sir, the honourable Member is implying that the status of a cane farmer is degrading.  Being a cane farmer is in fact very important because cane farming holds the economy of this country, and I expect the honourable Member for Tailevu South Provincial Communal (I.U. Matairavula) to withdraw that statement and not try to show disrespect to the cane farmers of this country.

            HON. I.U. MATAIRAVULA.- Sir, I have not finished my statement and I was trying to complement the cane farmers because they have worked hard and struggled to get where they are today.  They are hardworking people.  Likewise, they should teach their constituents that this Budget needs hardworking people like them to get a piece of cake from the honourable Minister of Finance to get opportunity and creativity.

            Sir, the opposition from the other side is a personal testimony for me.  We all know our family and wives want money from us all the time, so I decided to buy 35 kilogrammes flour for my wife to do some baking.  Now, she bakes bread and sells it in the village and earns about $40 to $50 a day.   Sir, cane farmers should apply the same principle to this Budget.  They should encourage their constituents, talk to the honourable Minister for Finance and National Planning, talk to the honourable Minister for Fijian Affairs Lands and Provincial Development, talk to the Minister for Fisheries and Forests, talk to the honourable Minister for Energy and Mineral Resources - is there any cake for me?  In the few days left now, maybe one of them can do something.  Talk to the honourable Minister for Energy and others because I am sure they can do something because they are now counting their days; make use of the opportunity.  Sir, I appreciate their humble beginnings including the honourable Prime Minister who was a coconut farmer, we have the experience.

            Sir, I would like to reaffirm here that they take the opportunity now and ask the honourable Minister for Finance what piece of cake can they have in order to improve living standards in their constituency.

            Mr. Deputy Speaker, Sir, I appreciate the Economic Summit on Private and Public Partnership in Export, especially on our agricultural produce. 

            Sir, I request the Ministry to identify what produce is market-driven and in demand and local farmers should be assisted financially in producing these produce.  Sir, we must re-visit formalities on goods being imported to Fiji.  From experience including the honourable Minister for Employment Opportunities and Productivity, we plan and sell potatoes and pineapple overseas and now I think he will enjoy it in the next few weeks. 

            The problem for local farmers is the market.  Although they produce tomatoes and pineapples and try to sell to the hoteliers, the hotels rely on the imported items.  So we have to do something on the import of these goods.

            Sir, I appreciate the Government's initiative for beef and dairy farming through the FDB assistance, as most land in my province of Tailevu are lying idle.  Sir, through the Ministry, the Fiji Meat Industry Board is on the right track in fully corporatising the Industry and I request if they could only increase the buying price for pork and beef for the benefit of the indigenous Fijians, in supplementing their transport to the Fiji Meat Industry Board in Nine Miles.

            Affirmative Action:  Mr. Speaker, Sir, we understand that the review for such a programme has taken place and we request the honourable Prime Minister for more programmes and increase in funding for indigenous Fijians. 

            Sir, the Army should thank the Government for their new provision for the relocation of 4FIR Nadi and I joked with the Acting Commander (who is my relative from Kabara), and he said, they are going to relocate the 4FIR to the Black Rock in Votualevu, Nadi.  This is apart from the allowance and whatever they requested.  Sir, criticism with Government will not do any good for our economy and our country.

            Sir, the honourable Member for Laucala Communal (D. Chand) is an educationist or what.  Sir, never in his speech appreciated the honourable Minister of Education for the Grant-in-Aid teachers who are now classified as Civil Servants, but I thank the honourable Member for Macuata East Open (A.D. Singh).

            Sir, I thank the Government for their financial assistance given to my constituency during the Bose ko Viti which was held in the chiefly island of Bau - the Nausori Airport was upgraded, Rewa Bridge was opened and Nausori Town was a hive of activity.  More than $3 million was used, so I have already campaigned for the next five years.  I would like to thank the Government once again, that for the first time two villages (beside the chiefly island of Bau) have new generators which cost, $14,000 each.

            Sir, in Nausori village, they built a big new community hall and all our villages were renovated, which the Government assisted with $3 million. I thank the Government for that assistance and the honourable State Minister for Provincial Development.

             Minority groups:  Sir, the honourable leader of the House and the honourable Member for Suva City, I mentioned to them that apart from the allocation they usually receive, they have a new allocation of $0.5 million from the Prime Minister's fund for special assistance (resettlement) and we should thank the SDL Party for that.

            HON. D.U. MANUFOLAU.- Not good enough!

            HON. I.U. MATAIRAVULA.- Integrated Approach:  Sir, with due respect to the honourable Minister for Finance, I find it hard to accept the Budget formula in allocating funds for each Ministry into one subject, take for example, the allocation of funds for housing, tertiary education and the maintenance of PWD and non-PWD roads - the funds are channeled to different ministries. 

            I would request that we try the integrated approach concept where for example, all who request for housing assistance either go to the Ministry of Social Welfare or the Ministry of Provincial Development.  Those are just suggestions, Sir. People may also have double dipping if proper monitoring is not done in this Programme.

            Shipping Services: There should be continuation of Government allocation for maintenance of Government ships in Walu, and I thank the Government for this allocation to the Ministry of Transport.

            Sir, I also thank the Chinese Government for the multi-purpose ship to collect the agricultural and fisheries products, especially the lumi from the Island of Ono-i-Lau.  Sir, I would request that apart from loading cargoes, if the Ministry would also look into allocating some passengers, otherwise, it will be hard to get the Ono-i-Lau people travel to Suva.

            Reforms of Government Commercial Company and Statutory Authority:  Sir, I would request the honourable Minister for Finance that to create more generated income, by recommending that all 100 per cent owned Government companies must pay all their profits to the Consolidated Fund and amend their Act accordingly.  .  For example, FIRCA - whatever their Budget, will need to request the honourable Minister for Finance with recommendation from their line ministries.  This will be in line with the Audit Amendments Act now in place where the Government Auditor will audit their accounts.  Sir, I would request the same thing to be done to the LTA and to the Minister of Public Enterprise for all Government commercial companies.

            Mr. Speaker, the funds for the Qoliqoli Bill and the Indigenous Claims Tribunal Bill are already in the Budget, and I therefore request the Government to continue working on the Bill up to its final stages because the fund is already in the Budget.

            Before I conclude, Sir, I wish to speak in the vernacular. 

            Turaga na i Liuliu ni Bose, e levu saka tiko na veivosaki me baleta na i qoliqoli, kei na kena vakalesui mai na qele ka volitaki tu vakalawaki.  Au sega saka ni kila na cava e milamila kina vei ira na turaga kei na marama ena noda vanua, ni taukei ni qoliqoli e nodra na qoliqoli e tu ga vei ira me ra vakayagataka ga (Usage Right). Na ka ga e sagai tiko `qo me vakalawataki na nodra vakayagataka nodra i qoliqoli.  E rawarawa saraga.  E sega saka tu ni vakalawataki na nodra vakayagataka tu na nodrai qoliqoli, kei na kena taukeni.  `Oya ga e sagai tiko ena lawa `qo. 

            Me baleta na Land Claims Tribunal, ena neitou dau veisiko wavoki, au dau soli vakasala vei ira ena neitou lako wavoki vei ira na via kauta mai na kerekere me ra taura mai na qele soli vakailowa `qo, me ra kauta mai na kena i vola tukutuku.  Kevaka e lasu na i vola tukutuku, sega ni 100 per cent na ka e vinakati, sa na yaco saka ga e kea; sega ni vakayacori na nodra kerekere.  Kevaka e dina, ena toso me voli vei ira.  E vakadavoca tu `qo na Matanitu e dua na kenai davodavo me rawa ni ra kerekere saka kina, me rawa ni ra kakua ni vuaviri mai muri, vei keimami nai taukei keimami vakaloloma tu ka keimami sega ni rawa ni sauma na lawyer, kei na lako i Vale ni Veilewai esa rui sau levu.  Esa toka saka ga oqo e dua na i tuvatuva me rawa ni keimami bau kerekere kina na i taukei, ka vaqaqai na neimami qele; e dua na Commission me vaqaqai kina na neimami qoliqoli, ni sa vakadeitaki tu ena Tabana ni Qoliqoli ni 410 na i taukei ni qoliqoli e Viti, esa matata tu na nodra yalayala ni qoliqoli. 

            Mr. Deputy Speaker, Sir, I fully support the Budget before the House.

            HON. F. ANTHONY.- Mr. Deputy Speaker, Sir, I rise to make my contribution to the 2007 Budget handed down by the honourable Minister for Finance on Friday, 3rd November, 2006.  Sir, I will later get into issues that affect people and concern people the most. 

            This was a much anticipated Budget, especially by the have-nots and the poorer in our society.  I say this because a very large percentage of our society remains poor, or have become poorer over the last few years.  Just to have a glimpse of what this means, I refer to the latest Household Income and Expenditure Survey which was alluded to by the honourable Minister for Finance and National Planning in his Budget Addresses for 2002 and 2003. 

            Mr. Deputy Speaker, this particular survey indicated 34.4 per cent of our citizens live below the poverty line.  This converts to about 285,527 citizens, based on the last Census figures.  This is absolutely no joke.  The poverty gap is not marginal, but a huge $2,616 per year for the average household.  The average income of these families stand at $5,445.00 per annum which works out to roughly $104 a week, when the poverty line stands at $155 per week - roughly two-thirds of what they really should be getting.  Needless to say, Mr. Deputy Speaker, Sir, that when one talks about averages, a substantial number of these unfortunate people earn much less than the average or earn nothing at all.

            Mr. Deputy Speaker, Sir, these figures are for the years 2002 and 2003.  We are now at 2006 to 2007, and there is absolutely no debate that the cost of living has since increased and in some areas, dramatically.  Rise in fuel prices has impacted just about every aspect of the cost of living, from the price of vegetables in the market to public utilities.  The continuing restructure of corporate entities leave more of our people unemployed without alternative employment and any retraining programmes.  Our measurement of employment creation is seriously flawed.  We measure employment creation by new registration of taxpayers for FNPF registration. Such a method does not take into account redundancies, retirement, part-time workers or casuals.  We need to measure employment in terms of full employment, under-employment meaning casual and part-time employment, unemployed and those who are unemployable for whatever reason. 

            The Reserve Bank Survey in June expected an increase in permanent and temporary employment.  It indicates that the demand for temporary employment has picked up.  I, Mr. Deputy Speaker, am very skeptical of such surveys.  The fact on the ground as we see it everyday is that, there is a strong tendency by employers to convert permanent jobs into part- time or casual job, and this is the trend in many industries around the country.  I have a strong belief that these jobs are being counted in such surveys as new jobs being created. 

            Mr. Deputy Speaker, Sir, that is not so.  An example of that particular industry is the tourism industry.  The industry employs about 60 to 65 per cent permanent workers some six years ago.  Today, the situation has reversed.  We have about 70 per cent of hotel workers classified as "part-timers" or "casuals", with only 30 per cent remaining as permanent workers.  Many of these workers remain part-timers or casuals indefinitely.  These workers are considered to be fully employed by such surveys. 

            Sir, to add salt to the wound, the same survey expects wages to rise between zero to five per cent in the next 12 months.  This may be proof for employment where unions exist.  The fact as it stands today is that, 65 per cent of the workers do not belong to unions.  They have no other choice, may I add, but fear for losing their jobs or unable to do so by law.  These workers would receive no increases at all.

            These surveys are carried out by post via questionnaires to employers and the small percentage of whom responded, are taken as a benchmark for the whole nation as this becomes a guide for those who prepare budgets like this one.  It is no wonder that these budgets become insensitive to the poor, maybe, not intentionally but because of the reliance on such survey conducted, that do not accurately depict the real situation on the ground.

            Mr. Deputy Speaker, Sir, the allocation for poverty alleviation has not seen any substantial increase on the Budget line, considering the problem at hand and the lip service that is given to this scourge we face.  It is an indictment of the Government and the people of Fiji that we allow such a situation to exist and continue to worsen.  This is a situation that none of us can claim to be proud of, yet, we do sweet little as a Government and elected representatives of the people to tackle this problem effectively.  The problem is well known to us and the question is; what do we do?  In this respect, the Fiji Trades Union Congress had advocated a national minimum wage to all workers.  This wage could be set at a lower level initially, and gradually increase to a living wage and that would be above the poverty line.  This is, however, dismissed by Government, which claimed that jobs could be lost as a result.  This is the warning that employers also sounded.  I do not believe that the minimum wage would result to massive redundancies or unemployment.  There are not too many employers who employ workers out of love for them.  Workers are employed on a need basis.

            The other option is to have a comprehensive review of the Wages Council Orders and I thank the honourable Minister for Labour and Industrial Relations for the undertaking that the same would be reviewed and be done soon.  It is of concern that the current minimum rates stipulated in the Wages Councils are well below the poverty line, many of which have not been revised for some years and these wage rates would be well within the range of extreme poverty.  Again, another indictment on us.  With about 65 per cent of the workforce relying on the Wages Council because there are no unions, it is no wonder that a large portion of our people live below the poverty line.  In fact, the 2002 to 2005 Household Income and Expenditure (HIE) Survey which estimates 34.4 per cent of our people who live below the poverty line, is understated, I believe, the real poverty levels now would be much higher, and the gap becoming much wider.

            Mr. Deputy Speaker, Sir, this brings me to another issue that compounds the problem of a poverty and that is VAT.  The VAT increase of further 2.5 per cent, taking it to 15 per cent from 1st January, 2007, will severely burden the already struggling poor and the disadvantaged in our country.  We are concerned to note that there is no addition to the list of the seven basic food items which were zero rated in the 2006 Budget.  It is not possible for people to continue to survive on only seven zero rated essential food items.  This list has to be far greater to include public utilities, town rates, school books, shoes, bags, sugar, et cetera.  I can go on with the list. 

            Sir, VAT is a form of regressive rather than progressive taxation.  Even people who do not earn any money, for example, subsistence farmers, have to pay taxes indirectly for all the food items as well as for basic needs.  I believe that it is only fair that those who earn more, perhaps, should pay more.  This is what progressive taxation is all about.  Sir, VAT has reduced the living standard of not only a majority of the wage earners, but also those with non-formal jobs, casual labourers, small farmers, villagers and dependants including students, the elderly, retired and unemployed.

            Mr. Deputy Speaker, Sir, VAT negates any Cost of Living Adjustment (COLA) granted through negotiation or the Arbitration Award.  When workers are given a slight pay increase, in reality, it is eroded by an increase in inflation.  In fact, the nominal wage may increase and the real wage either remains stagnant or declines, and this has been the case across the board in this country.

            Government assistance towards poverty alleviation is insufficient when one examines the allocations in the Budget.  The allocation of $3 million to the squatter problem, is grossly insufficient.  The problem is growing at a faster rate, than the current Budget is able to tackle.  Other than $1 million increase to HART allocation, there is no real increase in assistance to the poor.  The Poverty Alleviation Project actually gets $1 million lesser for next year from $4 million to $3 million.  Grants to voluntary organisations who work with orphanages, family counselling and professionals involved in special education, have actually had a decrease in their budgets from $630,000 to $400,000.  Care and protection allowance for abandoned children have also decreased from $300,000 to $230,000.  Sir, while I welcome the increase in Family Assistance Scheme from $14 million to $18 million, it is important to understand that the demand has been far greater than what the State has been able to provide over the years.  The additional $4 million will, to some extent, ease the demand but will not be able to fulfil the same.  It must also be understood that the current family assistance payments to destitutes are only $60 per month or $2 a day, and have not been revised realistically for some years now.  I hate to think that these people would survive on $2 a day.  These people will also be affected by VAT increases and will also be paying VAT.  It is in this backdrop, that I have reservations about this Budget. 

            Mr. Deputy Speaker, Sir, I agree with the honourable Minister for Labour that no Budget is perfect.  However, I am of the view that a Budget must be judged on the impact it would have on the majority of citizens of our country and more so, the weaker part of our society.  In applying that test, I cannot support this Budget.

            Having said that, there are some positives in this Budget that could cushion the negative effects of VAT, and I totally agree with the honourable Minister for Labour, insofar as the Employment Relations Bill and its implementation are concerned.  My concern is, our approach should not be to first create a problem and then remedy it by other means, thus effectively negating the benefits of the review that have been long overdue to workers of this country.  I also applaud the Government's decision to review the Workmen's Compensation Act and the reactivation of the tripartite forum.  I note a budget has been allocated for these processes.  The workers of our country have been looking forward to these developments for many years now. 

            Mr. Deputy Speaker, Sir, the Multi-Party Government has provided us the citizens of Fiji with a rare opportunity to work together in the interest of all the people of Fiji.  It is an opportunity that must be carefully nursed in the spirit of give and take and in the best interest of Fiji.  It has provided us an opportunity to heal the pain and suffering that many suffered after the unfortunate events of 2000.  We must not squander this opportunity.  Here, Sir, the onus on ensuring that this Multi-Party Government works, lies squarely on both the SDL Party and the Fiji Labour Party equally.  It is about good faith, trust, commitment and open dialogue between the parties.  This is a big ask in politics but is not impossible if we care for the people who put their trust in us.  I will urge, Sir, both leaders of the SDL and FLP to work together and find an acceptable middle ground that puts people first.  I agree fully with the honourable Minister for Labour when he says that we should not throw the baby out with the bath water.  Yes, we totally disagree with the introduction and the subsequent increases of VAT.  Yes, the question of Cabinet solidarity, that it govern effectively is a legitimate one.  Let us not use these to sabotage the multi-party concept, for our people hold much hope for their future and their children's future in such a concept.  It is time to show leadership and the onus lies on all of us in this august House. 

            Mr. Deputy Speaker, Sir, let me turn to other issues that concern the people we represent.  Much has been said about the sugar industry.  While I will not repeat what others have said, I will address just two issues.  Firstly, we all understand that the Fiji Sugar Corporation plays a pivotal role in the industry, and is far too important to be just ignored.  Yet, it is now more than two years that the FSC has had no Chief Executive Officer.  There is an acting appointment only.  Surely when we talk of a wholesale restructure of the industry, where FSC plays an important and pivotal role, we definitely need a CEO who will provide the direction, leadership and vision to guide the Corporation and the industry back to viability and profitability.  Here, I urge the honourable Prime Minister and the Minister for Sugar to act on this matter without undue delay.  May I, also at this juncture, Sir, remind Government of the heavy price we paid over the last two decades with FSC, since 1987 when promotions and appointments were made based on either political affiliation, race or simply nepotism.  The Corporation, from one of the most profitable organisations has been reduced to one of the worst performing Government owned enterprises.  I will urge the honourable Prime Minister to ensure that the appointment of a CEO is based on merit and merit alone.  Too many lives are dependent on the industry.

            The second issue is that of Government's assistance to cane farmers and cane access roads.  My constituency is made up of predominantly cane farmers and a smaller part of vegetable farmers.  The terrain is rough and the farmers face huge difficulties in transportation of their crops.  I note that the budget allocation for cane access roads is a mere $1.5 million.  Mr. Deputy Speaker, Sir, in 2006 there were hardly any cane access roads maintained as the budget was used up prior to the crushing season on roads before and during the Elections.  The supervision of these activities were actually done by SDL candidates in the area.  As a result of improper use of this allocation in my constituency, cane access roads are in a terrible state and some have actually been converted to horse tracks. 

            I urge Government to seriously look into this problem and take appropriate steps to redress the difficulties faced by farmers.  While Government hopes to encourage local farmers diversify and go into vegetable farming by raising import duty on vegetables, it has actually decreased the extension agriculture budget (to boost commercial development of root crops, fruits,  vegetables, spices and other viable agricultural crops) allocation from $6000,000 to $100,000.  The budget does not appear to be effective and supportive of farmers from the Vuda Constituency and I urge the honourable Minister for Agriculture to address this issue.  Like other constituencies, my constituency also has water supply problems, some of it with regular occurrence, with little or no assistance from PWD on emergency water supply in the area.  Law and order remains a serious concern in the constituency more particularly in the interior areas.  Again, numerous complaints have been made to the Police by residents, yet very little or no action has been taken.  People are made to fend for themselves.

            Much has also been said on the Public Sector Reform without these commentators realising the full implications and outcomes of the restructure.

            Mr. Deputy Speaker, Sir, on the Public Sector Reform, the honourable Minister stated that salaries and wages of Public Service stands at 14 per cent of GDP and the Reform should reduce salaries and wages to seven per cent of GDP.  The honourable Minister further stated that a road map is being prepared to clear practical direction on how to proceed with the Civil Service Reform.  What this obviously means is corporatising and the revenue earning departments of the Government under the Public Enterprise Act.

            The water and sewerage services will soon be corporatised and it already has a new name, Fiji Water Authority, under which it will operate as an entity.  The first step which the directors of this entity will take is to see how more profit can be extracted from the public, and to this end, the first casualties will be the workers, the poor and the disadvantaged in our society.  This is just an example of what these public sector reforms could mean.

            Sir, the other area of concern that I have is the current Airports Fiji Limited (AFL) and Strategic Air Services Limited (SASL) saga.  The existing dispute is continuing with some of the air traffic controllers either being refused work or work under unhealthy work conditions.  The situation has created great danger to air traffic safety and the travelling public.  Under the International Civil Aviation Organisation (ICAO) rules, the airlines serving Fiji can refuse to fly to Fiji because of safety requirements.

            Mr. Deputy Speaker, Sir, the ingrained problems of the SASL which was recently exposed and the decisive roles played by former and current Government officials in its formation and sustenance, to-date has largely been overlooked.  The crux of the matter is that a once thriving arm of Government has been reduced to severe financial strain, constant loss of resources, ongoing controversy and other crucial aspects.  In this process, Mr. Deputy Speaker, Sir, the ability and credibility of an important Government institution, which has continuous international exposure has been put to severe test.

            Sir, after the transfer of FIR to SASL, three neighbouring States commenced action internationally, which resulted in nearly one-quarter of Nadi's FIR space being wrested away from Fiji and its contractor (SASL).  Through this fragmentation, Sir, there was an annual loss of $3 million to Fiji of pure overseas currency.  No amount of excuses, Sir, will defend that and I will ask the Minister responsible to pay due attention in this area and take appropriate action.

            Civil Service: We talked about the review or downsizing of the Civil Service.  I believe, Sir, the place to start would be at the Public Service Commission itself.  To just give one example of this is the appointment of the CEOs.  Of the 23 CEOs that were appointed, only two or three were judged to be competent and fulfilled their targets.  This constitutes 90 per cent failure on the part of other CEOs that were appointed at a cost of about $0.5 million to the consultants. 

            This matter needs serious and urgent attention, and I again urge the honourable Minister responsible to act on this matter and start the reforms from where the real problems arise.

            Sir, having said that, I once again state that I am unable to support the Budget before the House.         

            HON. J.B. VOSANIBOLA.- Mr. Deputy Speaker, Sir, I rise to support the 2007 Appropriation Bill before the House.  In doing so, I would like to join those who have spoken before me in congratulating the honourable Minister for Finance and National Planning for continuing to push strategies of sound economic polices that will bring about economic stability in our country.  I would like to thank the honourable Minister and his hard working team for the sterling job in producing this Budget.  It is a good Budget, one that is balanced and accurately reflects Government's commitments to serve the people of this country.

            Government will continue to do all within its means to ensure the security and stability of our nation.  This will be achieved through providing strong leadership to all those who have a stake in the security of Fiji.  The development of relevant policies and the necessary legal and law enforcement framework, is a continuing priority task.  Government will continue working in partnership with a wide range of individuals and groups, in order to maintain the professional integrity and the highest standards of our security agencies.

            Mr. Deputy Speaker, Sir, I would like to assure the nation that the security and stability of the country will be maintained at all costs.   It is one of my Ministry's responsibilities to ensure peace and stability in our nation.

            Mr. Deputy Speaker, Sir, security can have military, social, political, economic as well as ecological and environmental dimensions.  My Ministry is expected to be vigilant against these security threats.  It is a well known fact that threats to security can develop internally as well as externally.  When they originate externally, they may readily leap-frog the conventional defences of our society and country, defences which, in addition to security forces, consist of immigration and labour laws, customs regulations, investment and taxation regimes, land and marine resource protection measures, protection from ecological devastation and environmental degradation, resource plunder and so forth.

            Mr. Deputy Speaker, Sir, law and order problems nowadays are generally a source of profound social tension and anxiety, a growing cost burden for business, government and even the private person.  It can be a threat to sound development, if it is not contained or arrested in time.

            Sir, for a small country like Fiji, one of the guarantees of our national security is our membership of regional and international organisations, such as the Pacific Islands Forum and the United Nations Organisation and our active support for the organisations with the primary responsibility of maintaining peace and security.  By being members of these bodies, we have shown that we can do much, collectively, that would otherwise elude us.

            Our security forces have served in many areas of conflict around the globe as peacekeepers since 1978.  They have served with distinction and have indeed established a high reputation in the performances of these duties under the most trying conditions. Mr. Deputy Speaker, Sir, I have recently visited our peacekeepers in the Middle-East (Sinai and Iraq) and Africa (Sudan), and there was no shortage of praise for the sterling performance of our men and women serving in those theatres.  Fiji is indeed a global power in peacekeeping.  In both Iraq and Sudan, my counterparts and the Governments of both countries have made the appeal for our peacekeepers to continue serving in their countries for as long as the UN presence peacekeeping effort is required.

            Mr. Deputy Speaker, Sir, peacekeeping activities provide small countries like Fiji with an opportunity to demonstrate their commitment of support to the UN Charter and for the maintenance of International Peace and Security.  We make this contribution, in expectation of similar reciprocal response from the region and the international community in time of our need, if it ever arises.

            Living as we do in the greater Asia-Pacific area, we must be engaged in our region, not only to our neighbours' advantage but also to our own.  We must strengthen existing friendships and be in a position to exercise our choice and have the freedom to follow options in our best interest.  The example of other countries suggests that such courses involve costs, including that of defence.  Moreover, it is self-evident that a small country must make an effective contribution towards its own defence in the demanding field of security, and it cannot stand aloof from its major partners when they request genuine help.  To secure our own sovereignty, we must be self-reliant.  We live in an interdependent world; but we cannot be wholly dependent on others, however close their friendship, because to do so, would compromise our sovereignty and dilute or even jeopardise our status as an independent nation state.

            Mr. Deputy Speaker, Sir, Fiji is now seeking to focus its defence role closer to home.  Renewed emphasis has been given recently, to strengthening longstanding defence relations with Australia and New Zealand, both in the development of defence co-operation and fostering close collaboration in military exercise and training.   This tie will be fundamental for the future, as Australia, New Zealand, Fiji and the rest of the Asia and the Pacific are increasingly seen as a single strategic entity. 

            Recent history has taught us that we cannot rely totally on even the best of our friends when there is a conflict of interest.  In the case of national security, even our best friends will place their own security interest foremost, as perceived by themselves, before what we may consider as our vital interest, hence our policy of keeping old friends, even strengthening our ties with them, and also seeking new partners. 

            Mr. Deputy Speaker, Sir. I would like to assure the nation that the Military and Police, which come under my Ministerial portfolio, will continue to uphold the rule of law as stipulated under sections 111 and 112 of the Constitution.  Both institutions will carry out their responsibilities in accordance with the relevant provisions of the Constitution.

            It has already been stated that Government will continue to do all within its means to ensure the security and stability of our nation.  In this regard and especially in light of the fundamental significance of the Rule of Law, Government has turned its attention to address, by constitutional means, the damaging impasse between itself and the Commander, which currently threatens the stability of the nation.  It has already had disastrous consequences in terms of the international perception of Fiji, and in respect of its tourism industry and the economy, which have continued to deteriorate as a consequence of the standoff.

            Mr. Deputy Speaker, Sir, Government sees the impasse and the standoff as arising directly from the continuing assertion of the Commander, founded as Government believes on erroneous advice, that the Army has an extensive role to play in the political life of the nation.  The assertion of such role by the Commander threatens to undermine the rule of law, as do the continuing threats by him against the democratically elected Government.

            Sir, Government sees the obsessive preoccupation of the Commander and his advisers with the above fallacy, as the root cause of current difficulties.

            Mr. Deputy Speaker, Sir, the Government will always seek to resolve an impasse of the kind described by lawful and constitutional means.  For that reason, Government has instituted the process provided by the Constitution for clarification of vital issues affecting the well-being of the nation, namely the process for the Supreme Court to make declarations upon issues arising under the Constitution.  The prime question raised, concerns the asserted political role of the military.

            It is hoped that the above matter will be heard by the Supreme Court at the earliest possible time.  In the interim, those concerned are respectfully invited to hold their peace, desist from confrontation, and await the ruling of the highest Court in the land.  Sir, Government also calls upon the Commander to fully respect the decision of the Court once it is given.

            Mr. Deputy Speaker Sir, we must accord the Police Force our gratitude, for the unwavering commitment they have shown towards the enforcement of law and the maintenance of order in the country during the last 12 months.  We can all agree that there has been a general reduction in crime around the country, even though there has been an increase in certain types of crime, namely violent crime, home invasion and sexual offences.

            Sir, I would like to commend the Police Force for its new policing initiatives, such as community policing, and for working closely with religious organisations, schools, NGOS, youth groups, the vanua and local government institutions.  We will continue to strengthen the close relationships between the Police and other law enforcement agencies, like FIRCA, Immigration, Quarantine, and with our regional as well as international partners. 

            Mr. Deputy Speaker, Sir, having said that, I wish to strongly condemn the destruction and desecration of places of worship.  I wish to make an appeal for the support of the community leaders and society in general, in stamping out these types of acts.

            Mr. Deputy Speaker, Sir, the Police Force recognises emerging trans-national criminal trends, such as money laundering, people smuggling and trafficking, identity fraud, arms and drug smuggling, prostitution, paedophilia and e-crime, to which the Police Force has responded by capacity building and enhancing professional standards and training.  These will continue as part of ongoing development programmes of the Force.

            Mr. Deputy Speaker, Sir, social stability is one of the most important preconditions of sustained growth and poverty reduction. The links between security and development have never been clearer and are well expressed.  Whenever the fear of lawlessness exists, it will deter investment and employment generation. 

            Sir, I fully support the significant increased allocation that has been given to the Ministry of Provincial Development, for it will undoubtedly contribute towards socio-economic development in the rural areas.  This will, in turn, contribute towards arresting the present trends in urban drift and its well-documented socio-economic ills.  It is, Mr. Speaker Sir, a well-founded strategy in Government's attempt to build a social safety net that will be better able to supplement the efforts of the Police Force in its fight against crime.

            Reverting to the problems caused by urban drift, that drift is largely caused by the perception by many (including especially young people), that the rural and village lifestyle is lacking in attraction.  Such a perception, insofar as it drives young people to a life of crime in urban areas, is disastrous.  The remedying of the problem may be sought by taking steps to make the rural and village lifestyle more attractive.  Necessarily, Sir, that process requires very substantial expenditure.  This is where the Budget comes in.  By bringing more money into the Government coffers, the Budget gives Government more funds from which to carry out necessary expenditure. 

            Mr. Deputy Speaker, Sir, poverty alleviation and rural development are keystones of Government policy.  The extra funds to be realised from the Budget will enable the Government more fully to fund rural developments, so as to assist to make the rural and village lifestyle more attractive, which in turn, will assist to counteract urban drift.  This is the point already made by the honourable Minister for Finance, that Government prefers to alleviate poverty and the condition of rural dwellers rather by targeted expenditure, than by way of adjustment of tax rates. 

            Sir, VAT is paid by the rich, as well as by the poor, and by urban dwellers, as well as by rural and village dwellers, so that the increase of expenditure upon poverty in rural areas allowed by the increase in VAT, is enabled inter alia by the richer members of society and urban dwellers.

            Speaking of the Budget more generally, Mr. Deputy Speaker, Sir, it is with respect unbalanced to focus upon the VAT increase to the exclusion of all else, as if the VAT increase represents the only mechanism being employed by Government to generate additional revenue.  Government is also committed to greatly enhancing tax collection by programmes involving greater efficiency, generally in tax collection. 

            Again, Government is committed to tax proceeds of land sales which are taxable under the Income Tax Act, and profits derived from tax avoidance and transfer pricing, and to deal with the tax consequences of e-commerce.  The regulation of such activities will vastly expand Government's tax base, and will certainly, to the greatest extent, target the better off and the rich, rather than the poor.  Government's commitment to such programmes shows its determination to be even handed in the administration of its tax programme.

            Mr. Deputy Speaker, Sir, the Fiji Police Force is on a reform programme, targeting lawlessness.  The 2006 General Elections was conducted freely and fairly.  On the home front, people are feeling free to report crimes, knowing that Police actions will be initiated.  This also indicates that the rule of law is being effectively administered.  Some categories of crimes are increasing, but police action is and will always remain swift.

            Mr. Deputy Speaker, Sir, you will have no doubt noted the enormous changes and reforms that have taken place within the Police Force, brought about through the initiative of the Fiji Government and assisted by the Australian Government.

            Mr. Deputy Speaker, Sir, let me make it clear that we are truly thankful for the increased allocation to the Police Force. The additional allocation would not only cater for the implementation of the Job Evaluation Review, but also provides for the creation of new votes for vitally important operational requirements, which will undoubtedly, enhance the effectiveness of the Force.

            However, Sir, Fiji Police does not wish to rest on these laurels. It will remain the primary law enforcement agency, and be rest assured that the Police continues to pledge its full support to Government, in its attempt to transform the Force into a modern law enforcement agency.

            Mr. Deputy Speaker, Sir, the events of 1987 had taken our economy down a slippery slope, from which we have never fully recovered:

            (a)        our economy was shattered;

            (b)        resorts and hotels were reduced to ghost-towns;

            (c)        Fiji was expelled from the Commonwealth;

            (d)        our trading partners closed their doors;

            (e)        shop shelves were emptied; and

            (f)         our current account levels tumbled to its lowest ebb.

            Private sector confidence suffered the most when investment levels tumbled from double digit levels of pre-1987.  This year sees the highest level of private sector investment for the last 19 years at seven per cent.  The resilience of our people saw us re-emerge, and we were on the verge of a second economic take-off, when the events of 2000 happened.

            Sir, the picture of 1987 repeated itself in 2000 with dire consequences.  Fast forward to 2006, and the consequences symptomatic of the 1987 and the 2000 events, are poised to rear its ugly head again, but with a difference.

            Mr. Deputy Speaker, Sir, we have reached critical levels of foreign reserves, requiring all sectors of society to put their full weight behind the 2007 Budget.  We must all identify ourselves with the measures outlined in the 2007 Budget.  We must stand together as "one nation and one people", and to agree to the common vision encapsulated in the 2007-2011 Strategic Development Plan (SDP), for which this House has been asked to provide the necessary resources to operationalise.  The 2007 to 2011 SDP have been taken through the widest consultation with all key stakeholders. We need to hold on to that vision, for Proverbs 29:18 says, and I quote:

            "Where there is no vision, the people perish".

And perish, we will, unless we are prepared to subjugate our individual interest for the common national good of our people now and for posterity.

            The Multi-Party Cabinet has shown us what we can do when we are united in our quest to achieve a common goal.  Sectarian partisan politics have no place in a plural society like ours, and in a world that is fast diminishing because of the WTO free trade regime and the growing influence of the digital economy in our lives.

            Mr. Deputy Speaker, Sir, Margaret Thatcher, David Lange and Manmohan Singh all have a common trait.  When the latter assumed the prestigious office of Finance Minister for India, and Margaret Thatcher and David Lange became Prime Ministers (PMs) of United Kingdom (UK) and New Zealand (NZ) respectively, they all warned their countryman that they intend to embark on an economic reform programme, which would snatch the economy from the brink of collapse and disaster.  They had only one of two choices: "To reform or perish".  All three countries chose life and went on to become successful and leading economies of the world. We have reached such a time to consolidate, and I extend my hand of invitation to members from the other side of the House to join us in reviving our economy.

            Mr. Deputy Speaker, Sir, throughout modern history, it has been human experience that societies that reward hard work, initiative, enterprise and success have progressed. Indeed, great civilisations have been built around these virtues.  When success draws envy and jealousy, when enterprise attracts ridicule and contempt - how then do we achieve growth and prosperity?  The underlying complexities that ultimately find expression in these destructive forces are matters for deliberate examination.  Suffice it to say, Mr. Deputy Speaker, Sir, that the presence of these destructive forces in our society is a reality of such proportion that cannot, and must not be ignored, or their effects underestimated. On the contrary, they must be acknowledged and managed.  If we are to grow and prosper as a nation, then managing this reality is as important as formulating sound economic policies.

            Mr. Deputy Speaker, Sir, and honourable Members of the House, you will all appreciate that if we are to have stability in our country, and if we are to progress in peace and harmony, we cannot allow the significant part of our population to be excluded from full participation in our economy.  Whilst indigenous Fijians own about 83 per cent of the land, they are under-represented, disadvantaged or marginalised in key areas of the economy.

            Mr. Deputy Speaker, Sir, I would urge honourable Members to try and understand the traditions and cultures, as well as the aspirations of the Fijian people, only then will peace and stability be maintained in our country.  Peace, reconciliation and unity are sentiments meant not only for the person next door.  They affect each and every one of us.  We live in a multi-ethnic and multi-cultural society.  We must therefore, make a conscious effort to understand the traditional and cultural beliefs that to some extent influence the various ethnic groups in our society.  It is, therefore, to our mutual advantage that we acknowledge our neighbours, respect their cultural and religious beliefs, and work together for the peaceful and progressive developments of our country.

            We must start from the beginning and examine ourselves, if we are contributing meaningfully towards these high ideals.  We must begin with our families at home, by teaching our children respect for the elderly, for one another and for those who lead our country.  At the same time, it is incumbent on those in positions of leadership to earn that respect, and here, I would like to share with you Christ's last moment with his disciples, and I paraphrase from the Gospel of St John:13, and I quote:

                        "Jesus knowing that the Father had given all things into his hands, took a towel and girded himself, poured water to a basin and began to wash the disciples' feet, and to wipe them with the towel wherewith he was girded.  The disciple Simon Peter asks, `Lord you wash my feet'?  Jesus replied,  `If I do not do this, you will never be effective for me.'"

            Mr. Deputy Speaker, Sir, undoubtedly the church is a stabilising force in our beloved nation for which we ought to be thankful.  We owe much to the church for its spiritual guidance, firm support and active contribution in nation building.

            Mr. Deputy Speaker, Sir, our democracy is entrenched in the three-legged stool, which the late Ratu Sir Lala Sukuna emphasized in his pursuit for peace and stability in this country. The three pillars of our democracy are the Matanitu, Vanua and Lotu and they are critical to good governance for our nation.

            The conciliatory process is integral to the development of our nation.  Reconciliation must come from our hearts.  It cannot be achieved by preaching alone, or by instructions from someone else.  It is not enough.  We all must work together.  Everyone in Fiji is duty-bound as stakeholders in our nation.  Indeed, it is our duty to ensure the conciliatory process evolves into the unifying force we want to achieve, for our children and generations to come.  

            Mr. Deputy Speaker, Sir, those of us who are privileged with the call to lead, should do so in a manner that is befitting of such high calling.  Sadly, this has not always been the case.  There are some who have difficulty in being more accommodating and conciliatory. The Government of the day is doing its utmost to address the fundamental issues underpinning the conflicting interests that we see as the major obstacles, holding us back from realising our collective national socio-economic and political potentials. 

            Mr. Deputy Speaker, Sir, reconciliation is not a new thing for us.  Well before Fiji was colonised, our chiefs accepted the spirit of reconciliation.  Through the influence of our early missionaries, our chiefs put down their war clubs and embraced the teachings of Jesus Christ and His church.  If our chiefs and ancestors saw the wisdom of reconciling their ways, putting aside their differences and seeking forgiveness for their tribal enemies, then what better reason for us to follow their example.  Let us also remind ourselves of the significant part the early missionaries played in advising the chiefs to drop their spears and war clubs and consolidate as one people.

            The church, Mr. Deputy Speaker, Sir, was instrumental in establishing and maintaining peace among the indigenous inhabitants of our country. It was instrumental in bringing our chiefs and their people together.  Collectively, they signed the Deed of Cession and embraced Western civilisation, which planted the seeds of democracy, as we now know it in this country.

            Mr. Deputy Speaker, Sir, I would like to refer to the Gospel of St. John 17:11, when Jesus prayed that mankind would be one as He is with God the Father.  In other words, Jesus sought the unification of mankind through reconciliation, so that we could live in peace and harmony.

            In conclusion, Sir, the Budget is bold and decisive, which will lead to socio-economic and political stability in this country. 

            Mr. Deputy Speaker, Sir, I support the 2007 Appropriation Bill before the House.

            MR. DEPUTY SPEAKER.- Honourable Members, I intend to shortly adjourn the House for morning tea.  However, before I do, may I remind the members of the Business Committee to attend to a meeting during tea break.  The subject of that meeting will be the Batting Order for today which says that the meeting will conclude at 8.25 p.m., but that will be subject to confirmation by the Business Committee.

            On that note, I will now adjourn the House.  The House is now adjourned.

            The House adjourned at 11.00 a.m.

            The House resumed at 11.40 a.m.

            MR. DEPUTY SPEAKER.- Thank you honourable Members, we resume the debate on the Bill No. 20 of 2006 and before we do, I wish to welcome again visitors in the gallery, who are the students and teachers of St. Peter Channel School, 85 of them who are here on education visit, so to the teachers and students, welcome and may you have a fruitful visit.

            HON. ROKO J. WAQAIRATU.- Mr. Deputy Speaker, Sir, I rise to make my contribution to the 2007 Appropriation Bill before the House.

            I wish to acknowledge and congratulate the honourable Minister for Finance and National Planning for continuing to provide the engine for growth and economic stability in our country and for creating opportunities for both the private and the public sectors.

            Mr. Deputy Speaker, I note with great enthusiasm the Government's ambition, to generate import substitution and increase export and investment, and of great importance, the recognition of the economic viability of our human resource.  This, Mr. Deputy Speaker, Sir, is the sole purpose of why the Government has out-sourced more funds for education. 

            Mr. Deputy Speaker, Sir, quality education requires quality teaching, whether it be in the form of increasing the number of teachers, or the creation of a revolutionary and an adaptable curriculum that is centred in a culturally, socially and mentally equipped work force.  I note with appreciation the creation of 1.351 established posts to absorb Grant-in-Aid (GIA) teachers into the Civil Service.  This is a commendable milestone for the Government.

            Mr. Deputy Speaker, Sir, this will be a great morale boost for GIA teachers.  For the current status of hire and fire by the Management and the feeling of inferiority complex, amongst their own colleagues will cease.  The new status will see to the end of senior teachers over exploitation of the GIA teachers.  It acknowledges their contribution to the senior exam classes and also of great importance is the possibility for them to apply for positions of responsibility within the Ministry for Education, a privilege currently being made available only to civil servants.  Sir, for schools that employ Grant-In-Aid teachers, this change allows them to redirect the 20 per expenditure for GIA salary to purchase other essentials, ultimately putting less pressure on schools to fundraise as alluded to earlier by the honourable Minister for Education.  For a very large secondary school, on average, 20 per cent GIA salary amounts to $40 to $50,000 annually and definitely on squatters parents in these schools will benefit a lot from this policy.

            Mr. Deputy Speaker, Sir, the Ministry's policy for the provision of three teachers for primary schools with a school roll of less than 50, regardless of the number of classes it has, is the main cause of poor quality education in schools especially in the rural and remote areas.  This is a cost effective decision when considering the location of these schools, but the rationality and comprehension for teachers on the field is suicidal.  These teachers are required to have composite classes, and all classes have to be maintained.  The question that we may ask is this.  How can a teacher teach three classes at the same time?  This is the problem faced by teachers in rural primary schools but the initiative in the Budget in providing $160,000 to the establishment of Distance Learning Centres, to address rural school's staff shortage and the ever reducing school roll is now addressed in no other better time.  The Nasinu Advance College is sanctioned to prepare these educational tools.  These children will receive quality education via television.  Sir, I envision that this tool will stimulate and capture the reality of the subjects being taught, making it an ideal motivational tool.  In due course, I firmly believe that this programme will expand to the use of the internet.

            Mr. Deputy Speaker, Sir, I foresee that these school structures, can then be used as centre for community, civic education and e-Government for the outer islands.  The vision to create awareness for communities to generate and market their product is slowly becoming a reality.  I am mindful, that the Government will be equipped for public onslaught, for development and consultants once these ideas take shape, and are applied within the rural communities.

            Mr. Deputy. Speaker, Sir, our culture and heritage is an identity component, of what it means to be a Fijian, surrounded by societies that are differentiated by behaviour and understanding of the world.  Our culture is predominantly based on its oral tradition.  The preservation of our oral history requires interviews and documentation of our elder's tales and folklores.  Unfortunately, time is our main enemy.  Sir, the art of mat weaving, the Fijian nursery rhymes "o bawa" are just a few cultural indicators that are slowly being lost by our urban dwellers.  I am thankful that the Government has allocated funds for this exercise.  I am also mindful that the exercise would require the joint participation of the Provincial Councils, to ensure that our national and cultural identity is safeguarded.

            On Agriculture, Mr. Deputy Speaker, Sir, the allocation for rural and outer island development and the farming scheme is welcomed.  Often the concerns for rural-urban migration and providing services for squatter settlements have been highlighted in this august House.  I am happy to say that this project is one of the solutions to that problem.  Mr. Deputy Speaker, Sir, this programme will identify economic generating opportunities and priorities the infrastructure to support development, thus removing the "pull factor", for the rural community to go in search for a better opportunity in the urban areas.

            Mr. Deputy Speaker, Sir, seaweed farming is becoming a lucrative business for those in the islands.  There are 214 farmers spread throughout the maritime islands.  This year alone, the seaweed farmers' turnover income was $73,500.  But, Mr. Deputy Speaker, Sir, this commodity is hindered by transportation and the lack of markets identified.  The purchase of a multi-purpose collection vessel by the Government and the construction of six seaweed stations in 2007, will greatly assist this commercial industry, that is expected to have a revenue turnover of $744,000 per year.

            Mr. Deputy Speaker, Sir, Fiji has the potential to be a competitive provider of agricultural products, and I urge the State to ensure that there is a viable market ready, and willing to acquire our products.  The Agricultural Marketing Authority is sanctioned to provide this service, and I firmly believe that the officials will carry out this task successfully.

            On my constituency matters, Mr. Deputy Speaker, Sir, a proposal for a provision for tutorial classes would be welcomed.  Sir, the Tamavua/Laucala constituency has set up 10 centres for tutorial classes for Forms 6 and 7 students in Mathematics, Science and commercial subjects in Namadai, Cunningham, Marava, Kinoya, Nabua, Nawanawa (Nadera) and Kilikali to name a few.  Assisted by Members of Parliament in those areas, students provide the weeks' allowances for teachers.  These tutorial classes are to assist students from low-income families that reside within the areas.

            Given the current student-teacher ratio of 1:40, in the Suva schools and the behavioural patterns of our students to refrain from raising questions, there is a need to have tutorials to encourage the ideals of quality education to prosper.  Many a time, elders have preached about education as the tool to a prosperous life and to some, more than others, society hinders that transition.  Sir, these tutorials will address that need. 

            Mr. Deputy Speaker, Sir, I am concerned with the increase in Value Added Tax (VAT) to 15 per cent.  I urge the honourable Minister for Finance and National Planning to make this increase a one-off exercise, and see to the gradual decrease in VAT as from 2008 onwards.  I am aware that this increase will put a strain on the economically disadvantaged.  I seek their indulgence and assistance for the development and economic survival of this nation. 

            Mr. Deputy Speaker, Sir, Government must acquire a substantial return if it needs to operate, but I note with concern the minority return on assets that the Government Commercial Companies are making. 

            Sir, a classic example is Fiji Hardwood Limited.  We need to revolutionarise this industry.  This product, because of its durability, high stability and attractiveness has the potential to rake in substantial income for the Government, but that, Sir, can only be realised, if we choose to diversify the line.  Not only must we sell mahogany logs at its primary stage, we must also develop the product through the right skill and craftsmanship, thus the possibility of manufacturing furniture can become a reality. 

            Mr. Deputy Speaker, Sir, the United States consumes more timber per capita than any other country.  It accounts for 59 per cent of US tropical hardwood lumber by volume and value.  Lately, the list of South American countries supplying mahogany to the United States has changed, as inventories decrease or access to the forest is restricted because of environmental concerns. 

            Mr. Deputy Speaker, Sir, America processes these logs into furniture.  We can offer international markets the same products, but at a smaller scale.  Improving the craftsmanship and skill of our human resource and marketing, is a way to move forward.  We need people of vision and skills for this mandate.

            Mr. Deputy Speaker, Sir, various Members have made derogatory remarks on this Budget in this august House, calling it all sorts of names.  It amazes me that these well-informed and reputable society leaders are badly wrapped up and totally handicapped, blended with the 2.5 per cent VAT increase and disqualifying them from looking at the Budget in totality.  One should be able to at, least, pick up or honestly appreciate just one of the many good aspects that are embodied in the Budget.  A good leader is distinguished from the lad by his ability to think objectively and concisely, and not easily tempted to perceive things through tunnel visions. 

            That reminds me, Sir, of the story of Jesus Christ and His Disciples when they were approaching a small village in Samaria.  In front of them was a dead dog at its decaying state. The Disciples went aside taking a detour because of the bad smell.  To their surprise, Jesus came closer to the dog and was looking at it closely.  The Disciples urged Jesus to move on, but Jesus told his Disciples, and I quote:

            "I really marvel at the extremely white set of teeth this dog has." 

Sir, that reminds me of that old adage; "in every cloud, there is a silver lining." 

            Honourable Members, it is not the end of the world yet.  Go forth and preach the good news to your constituencies that this Budget, which has its own strengths and weaknesses hold so much for the country.  It is our calling, as leaders of this nation, to stand together as a team and project a ray of hope to the people in our charge.

            Mr. Deputy Speaker, Sir, this Budget addresses the three basic needs of any community - shelter, food and security.  Both the Public Rental Board and the Housing Authority are allotted funds to provide housing for low-income earners.  For security, the Military and the Fiji Police combined have received over $163.5 million for the maintenance of law and order, and for the protection and security of our national borders. 

            As for food, Mr. Deputy Speaker, Sir, there is a vast land available to be used productively.  The Opposition are aware that the land issue must first be resolved.  Sir, the assimilation and recognition of Fijian traditional values is paramount to the use of land and the renewal of leases. 

            In conclusion, Mr. Deputy Speaker, Sir, Martin Luther King, when addressing his audience on the theme, "Set Goals and Create Detailed Plans of Action" on 31st March, 1968 said, and I quote:

            "Ultimately a genuine leader is not a searcher for consensus but a molder of consensus; I would rather be a man of conviction than a man of conformity.

            There comes a time when one must take the position that it is neither safe nor politic nor popular, but he must do it because his conscience tells him it is right."  

            Mr. Deputy Speaker, Sir, this Budget will bring in many possibilities and developments, but it requires management and foresight. 

            Sir, I support the Bill before the House.

            HON. N.K. PADARATH.- Mr. Deputy Speaker, Sir, I rise to contribute to the Bill before the House, which was presented to this august House by the honourable Minister for Finance and National Planning on Friday, 3rd November, 2006.

            Sir, in my contribution, I would briefly touch on the economy, tourism, education, good governance and lastly on my constituency matters.

            Sir, at the outset, the Budget gives a rosy picture of the economy by juggling the allocations of funds to various Ministries and portraying a picture where the innocent citizens of this nation are made to believe that the economic growth, reduction of national debt, and lowering of budget deficit is a reality whereas in my view, it is only a paper exercise.  It is like virtual reality, Sir, however, the reality is significantly different than what is being portrayed. 

            Sir, if one looks at the trend in the last five years, it clearly shows that the national economy has dwindled, the national debt has risen and the budget deficit has been overcome by new borrowings to pay previous debts. 

            Mr. Deputy Speaker, Sir, any budget can only be successful, if there are prudent management practices implemented. No matter what system is used, Sir, it boils down to the integrity of the people managing the systems, that is, the civil servants. At the end of the day, substantial funds are misused and poorly managed, resulting in millions of dollars lost on almost a daily basis and as a result, the economic growth stagnates.  Even though money is misused, no one appears to be accountable for it.  It is essential that the Civil Service Reforms are implemented as soon as possible, the capacity building programme taken on board and made efficient, and urgent action taken on all those who breach the code of conduct of good governance. 

            Mr. Deputy Speaker, Sir, the anticipated five per cent economic growth, in my view, is a difficult task to achieve in the next five years.  In view of the present state of the Civil Service, the target may be, attainable if not carefully managed.

            Another subject that one cannot but has to speak out is the Government reforms in the Civil Service, Public Enterprise and Public Financial Management.  The objective of reducing the Civil Service from 14 per cent to 7 per cent of Gross Domestic Product (GDP) in the next five years, appears to be unchangeable and no indication is given as to how this would be achieved.  Sir, in my view, this is where the Alternative Livelihood Programme and the Affirmative Action, if managed effectively, would enhance domestic production and at the same time observe those civil servants who will fall victims of those reforms.  We do not wish to see another example of an agricultural scam in the Alternative Livelihood Programme, as a lot of people will be dependent on this scheme for their future.

            Tourism:  The sum of $17 million which is provided to the Fiji Visitors Bureau (FVB) is another example of useful money being allocated to the marketing of the industry which is capable of looking after itself.  When it was suggested that the sum is very high, some honourable Members on the other side of the House thought that critics of this allocation were against tourism.  This is an example of lack of understanding by those honourable Members who think so.  What we intend to say is that this money should not be wasted and the responsibility of getting tourists into the country is also partly the responsibility of the owners of resorts who already reap huge benefits from the Government for their developments.  Maybe, these honourable Members may wish to think critically sometimes and see what would be the impact of increase in tariff on imported vegetables and dairy products from three per cent to 27 per cent.  This increase will definitely be charged on to the tourists thus an adverse impact on our tourism industry.  Sir, this is a clear message as to who is trying to block tourism.

            Mr. Deputy Speaker, Sir, the introduction of Information Communication Telecommunication Tax Free Zone at Kalabu is in the right direction, as this will not only provide employment opportunities but also provide the rural population to be in touch with the rest of the world by enabling these people to have access to these information technologies.  The Government has to be welcomed on their approach with regard to making an impact by getting a Telecommunications Bill to Parliament to open up the industry.  This is the correct way.  Government is to be congratulated on this important decision even though the local communication industry does not appear to be happy on this issue.  However, this is what the people want, that is, to bring competition amongst companies which provides alternative choices to the consumers.

            We welcome the extra $29 million allocated to the Ministry of Education and absorption of all the Grant-in-Aid (GIA) teachers into the Civil Service.  This helps the schools to overcome the necessity of raising 20 per cent of the salaries of GIA teachers.  This would now help the schools to concentrate on their core business of teaching and much less time would be wasted on fundraising for the school's income.  This would launch the foundation to improve the quality of education for the children of our nation. 

            Sir, another important issue that I wish to bring to the attention of this House, is the approvals of TVET Programmes for secondary schools.  Those schools that applied in the past were given approval for traditional courses like automotive engineering, carpentry and joinery.  These programmes have fulfilled its purpose even though there could be some shortage of joiners, carpenters and mechanics at present and in the near future.  However, it is essential that approval should be given for other courses like teaching small holder farming techniques in livestock, fruits and vegetables.  Sir, this will go towards encouraging development of agriculture which would fulfil our objective of exporting agricultural products and reducing balance of payment. One such school that falls within my constituency and would like to offer such programmes, is the Ba Sanatan College. Sir, I would like declare my interest as I am the manager of the institution.

            HON. P. MUPNAR.- Vinaka, vinaka!

            HON. N.K. PADARATH.- This school provides education to mainly the children of farming communities and such programmes would go a long way to gain useful knowledge in areas that they are already familiar with.  The school already has land available to venture into such programmes in particular, small holder poultry farming as there is a poultry processing plant in close vicinity of the school.  This will also allow the students to get attachment at this commercial poultry industry to get hands-on experience.  At the same time, the school would benefit from the income generated from such ventures.

            HON. P. MUPNAR.- Let the honourable Minister get some grants!

            HON. N.K. PADARATH.- Sir, this would fall under the Alternative Livelihood Programme which the Government is trying to open.  This is mainly for students who do not have the inclination for further academic studies, but would like to gain some hands-on experience in other areas of agricultural development.

            Good Governance:  Sir, this is a paramount issue for any nation that strives to progress so that their citizens can enjoy a comfortable lifestyle in peace and prosperity.  The Law Reform Commission last consolidated the legislation in 1985.  As a result, the legislation which was passed since then, is still in its loose form and need to be compiled.  In 1999, the People's Coalition Government did invite tenders to carry out this activity but before the tender was offered, they were ousted out of office due to the coup of 2000.  My question is; what has happened to this Law Revision Project?

            The last SDL led Government had taken no initiative to continue this important project to completion.  As this is a major project, it needs to be outsourced and so far there is no sign of funding for this essential work in the new budget.  So, I assume this will not happen for another year yet.  Mr. Deputy Speaker, being a lawyer, I think you will agree with me.

            Mr. Deputy Speaker, Sir, another very important issue is the decision of courts that are not reported properly.  The last report was done in 1999 - Volume 45.  This is a very important process that needs to be done as soon as possible after the Courts issue judgements.  For instance, all England Law Reports come to Fiji within three weeks from the time the judgement is passed.  Sir, this is important as recently, Fiji cases have been quoted in Australian courts.

            HON. P. MUPNAR.- Can the honourable and learned Attorney-General do something?

            HON. N.K. PADARATH.- It is essential to have these well compiled on regular basis.

            Sir, let me spend some time on commerce which is probably the most important activity in the private and public sectors, while we appreciate the Government's intention to raise Government revenue and the much needed foreign exchange through international bond issue that recently resulted in Fiji Government's first international bond issue of $US150 million.  Sir, while this may appear to be a great idea for Fiji, there could be a possibility that we may be encouraging money laundering.  Sir, no wonder this first international bond issue was over subscribed by nearly 10 times. 

            Sir, my constituency mainly consists of ordinary farmers who have toiled hard to get the basics of life after almost a lifetime of struggle.  It is saddening to see, that even today, the Government has failed them by not being able to provide the basics of life like good drinking water, good medical care, proper roads and security.

            In this Budget, there is a $800,000 allocation for Ba Water Supply to areas like Navoli and Vadravadra.  At this point, I would like to urge the honourable Minister concerned to include areas like Tauvegavega in Namosau and Cloppcot Street in Yalalevu where the residents experience the acute shortage of water for their daily needs.

            Sir, in view of the plight of farmers in my constituency, I could see that the non-appointment of the Central Agricultural and Western Agricultural Tribunals, there are a number of land issues that have not been resolved and many farmers are suffering from the non-resolution of their grievances on land disputes.  Sir, this involves the landowners who do not know their position as to the status of the land, and the tenants stop receiving cane proceeds because of these disputes.  Sir, the Tribunal used to sit only at Lautoka causing a lot of inconvenience to the farmers in terms of travelling costs, et cetera, but in future, it is important that the Tribunal needs to move within the Western districts as has been the practice in the past.  This would be a  relief to the concerned farmers as a result of the increased cost in travelling to Lautoka only.  Sir, the same also applies to the Small Claims Tribunal which caters for the small scale business in my constituency. 

            Mr. Deputy Speaker, Sir, the people of my constituency have bitterly complained about justice, law and order.  The Ba Court, which is a two magistrate court has only one lady magistrate who is handling a backlog of cases, let alone the current ones.  Considering the plight of the people in Ba, it is recommended that another magistrate be appointed to the Ba Court with immediate effect.  Sir, in the Lautoka Court, one Judge is retiring soon and the people in the Western Division are hopeful that another judge will be appointed, prior to the existing one leaving the High Court.

            Sir, on the issue of heath which is dear to all races and people of all ages, there is a need for appropriate medical care for all in the district of Ba.  The plight of the Ba Hospital, as alluded to earlier by the honourable for Ba East Communal (J. Kumar), needs drastic steps to be taken to improve health facilities at this hospital.  The Ba Hospital Board has not had a meeting for almost nine months now. 

            Sir, this does not augur well for the people on the Board and it brings up the issue of appointing people who are over committed to their own work or in public activities.  Sir, consultation should be done with local NGO's to appoint members who are educated and also have time available to have regular board meetings.  This is crucial, in view of the fact that a sum of $1 million has been allocated to the new Ba Hospital.

            We have an interesting situation with regard to VAT on common pharmaceutical medicines, that is, when a patient goes to a private doctor for consultation and goes to a pharmacy to buy the common medicine prescribed to him, he does not pay VAT on that medicine.  On the other hand, if that same patient goes directly to the pharmacy and picks up the same medication from the shelf, a common medicine like cough mixture, he has to pay VAT.  This is something hard for me to understand.  The above example indicates how the 15 per cent VAT would affect the poor people of my constituency. 

            Sir, after several meetings with my constituents, it was abundantly clear that they felt that the 15 per cent VAT would have a major impact on their day-to-day survival.  This will have a major impact on the community, coupled with the increase in the fiscal and excise duty that would be affecting them when they buy things for their household. 

            Mr. Deputy Speaker, Sir, the words of the honourable Minister for Labour and Industrial Relations said in his Budget contribution, and I quote:

                        "Can a Government base its Budget on the assumption of collecting $100 million to $120 million by stopping corruption and leakage?"

Sir, any government budget is prepared on assumptions that it would collect certain sums of money from various sources, thus, is the responsibility of every government to make an effort to plug the corruption and leakage while preparing its budget.  This would give the taxpayers of this country the feeling of partnership with the Government that some hard decisions are taken by the Government to reduce the money lost through corruption and leakage, hence, reducing the burden of more taxation like VAT on the poor.  It is surprising that someone of his stature would say something like this now when he has been drumming the exact reverse of this for years. 

            Sir, with the above deliberation on the Budget and the strong opposition by my constituents, who are the very people who voted me into this august House to represent them, I have no choice and do not support the Bill before the House. 

            HON. P. TABAIWALU.- Mr. Deputy Speaker, Sir, I rise to make my contribution to the 2007 Appropriation Bill.  First, allow me to offer my congratulations to the honourable Minister for Finance for the sound and prudent fiscal and policy measures, to address the challenges of stimulating investment and growing the economy.  

            Sir, the Budget, contrary to some views, is a result of wide consultations, arising from the National Economic Summit, and the finalisation of the National Export Strategy and the finalisation of the Strategic Development Plan.  

            Driven by the theme of "Partnership for Sustained Growth", we unequivocally need the political will and collaboration of this august house to fully realise our economic and social targets for the next five years.  Sir, the Multi-Party Cabinet provided the perfect platform for such a collective impetus, a summation of our collective wisdom and intellectual capacity. This beloved country of ours has long been shredded by the intransigence of our communal and political leaders.  The multi-party give us real hope, and citizens from all walks of life were unanimous in their praise and support of a constitutional requirement that would have laid the foundations of lasting peace and security.  As aspiring young politicians, we were honoured to be part of a truly historical event, imprinting in our minds the single-mindedness of a purpose to contribute the very best in our efforts to rebuilding this nation.   

            Sir, the last three days have been a surreal exposition of the capriciousness of human nature and intentions.  Blinded once again by the myopic lenses of political expediency, some honorable Members have chosen to sacrifice the survival of the Multi-Party Cabinet, with a spurious and superficial analysis of the Budget.

            Sir, having listened closely to their contributions, one can be forgiven for thinking that there was indeed no intention from the very beginning to ensure the longevity of the Multi-Party Cabinet.  This is indeed a travesty of the trust and aspirations of the citizens of this country, and one is left astounded by the nonchalance in which such real optimism, could be so easily trampled, and nine Cabinet Ministers, who I think were doing a fine job have become sacrificial lambs, on the altar of a self-fulfilling prophecy.

            Sir, contrary to the arguments already heard, the Budget is permeated with measures to alleviate the plight of the poor, and the honourable Minister for Finance has clearly enunciated this, and I quote:

            "... The alleviation of poverty is high on Government's development agenda".           

       This is a key issue of national interest. The lives of our people are involved. It should be the concern of everyone that we do all we can to eradicate poverty

            Mr. Deputy Speaker, Sir, despite great progress in the past 50 years, 1.2 billion people one-fifth of the people on earth live on less than US$1 a day, without access to social services basics to a decent human life. 

            Ending poverty: The aspiration of the Millennium Development Goal is the overriding development objective of the 21st century. 

            In Fiji, the 2002/2003 Household Expenditure Survey estimates that 34 per cent of the Fiji population live below the basic needs poverty line.

            Sir, unfortunately, many development assistance with its emphasis on top down solutions and grand plans intended to eradicate poverty has had little impact in aiding these individuals.

            More promising, therefore, are policy approaches that emerge from the ground up.  One such example is micro-finance, a phenomenon that developed out of a 1976 field trip to a poor village in South/Eastern Bangladesh, by Muhammad Yunus, a young Bangladesh Economist, from Chittagong University.

            Sir, faced with the micro-level example of the depressing cycle of poverty, Yunus began experimenting with ways to make small loans available to the poorest of the poor and gave a total of less than $27 from his own pocket to 42 individual basket weavers.  Finding not only that they survived with so little help, but also that his capital ignited the spark of personal initiative, enterprise, and hope that enabled them to lift themselves out of poverty, he began providing micro-loans to the very poor in neighbouring villages.

            In 1983, Yunus formed the Grameen Bank (meaning "Village Bank").  Its business focused entirely on providing very small loans to impoverished people, mostly women, who organised themselves into small groups to help, reinforce and supervise one another.

            Sir, since its modest beginning, Grameen Bank has grown significantly.  Today, it has 1,512 branches, with 15,000 staff serving six million borrowers in 52,829 villages in Bangladesh.  On any working day, the bank collects an average of $1.3 million in debt payment instalments.  Sir, 96 per cent of the borrowers are women and over 98 per cent of the loans are repaid, a recovery rate higher than that of any other bank in Bangladesh and significantly higher than that of most consumer loan portfolios in the developed world.

            Mr. Deputy Speaker, Sir, the Norwegian Nobel Committee has recently awarded the Nobel Peace Prize for 2006, divided into two equal parts, to Professor Muhammad Yunus and the Grameen Bank, for their efforts to create economic and social development from below.  In their citation, the Committee stated and I quote:-

                        "Across cultures and civilisations, they have shown that the poor can work to bring about their own development.  Yunus and the Grameen Bank have demonstrated that, in the continuing effort to eliminate poverty, micro-finance must play a major role. Development from below also serves to advance democracy and human rights."

            Sir, when poor people save and get loans to develop businesses, they are able to generate income to invest in education, access better health and invest in their communities. For women, it often means empowering them to determine their own economic destiny and influence.

            Mr. Deputy Speaker, Sir, we have introduced micro-finance services in different parts of the country and women dominate these programmes. To date, the eight micro-finance institutions, have provided savings to more than 23,000 people, with a net balance of $1.7 million.  More than 6,000 of these clients have accessed 13,200 loans worth $4 million, of which $4.1 million has been recovered. 

            Sir, to cite a more illustrative example, the tikina of Tavuki in Kadavu, which started the scheme in 2003 now has more than 600 clients now in its savings programme and had a total savings of $27,000 in the first quarter of this year.  If the trend continues, this would mean a total savings of $108,000, by year end.  If the scheme was to cover the whole of Kadavu, with a potential client base of 3,000, then a total savings of approximately $500,000 per annum can be realised. 

            Mr. Deputy Speaker, Sir, I guess my tauvu's can easily make a down payment for a new boat with such money.  Such schemes can easily be replicated in other provinces, generating much needed financial liquidity in the market and consequential positive ramifications on interest rates.

            Sir, from an allocation of $1.6 million in the 2007 Budget to the National Centre for SME Development, $0.8 million has been provided for further extending the delivery of micro-finance services. The Centre plans to expand micro-finance service through its partner organisations to the provinces of Rewa, Lomaiviti and Lau.  The Centre is working on forming strategic alliances with other organisations, with similar goals and targets.

            Sir, the ANZ Bank, through its rural banking service, has had much success in their savings and micro-loans service to Fiji's rural population and according to the Minister for Finance's address, it has generated 46,000 accounts, while accepting $3.6 million in deposits and extending $310,000 in small loans.

            Mr. Deputy Speaker, Sir, all these have proven that the poor and low income earners, in both urban and rural areas, want to save and will save, if accessible services are available to them. 

            Sir, the micro-finance programme in Fiji has been established and nurtured with the strong support of this Government.  It needs to be strengthened to reach a long-term level of sustainability. Commercial banks and other financial institutions have an important role to increase the scale, efficiency and competitiveness of micro-financing. At present, financial institutions, including commercial banks and investment agencies, exclude the poor and rural people by their policies and physical locations.

            Sir, it is time for financial institutions to be creative and bold and to take financial services to the poor and the rural population of Fiji.  This does not have to be seen as social welfare or corporate responsibility.  It is a matter of good business. A viable and sustainable service, with micro-entrepreneurs, gradually becoming active clientele of financial institutions.

            Mr. Deputy Speaker, Sir, Government acknowledges that listening to and consulting the public on important issues, lead to better service delivery and more effective outcomes, therefore Government is ultimately responsible for providing basic services to every citizen.  However, in the face of competing priorities, it is neither always best suited, nor does it have infinite resources, to properly discharge this responsibility.  On the other hand, the private sector, despite having the expertise and capability, is often not motivated to supply basic services to the poor, as it does not make good business sense to do so.

            Therefore, the public and private sector, community service organisations and the underprivileged should, in the spirit of the budget theme, inculcate active partnership in the business of providing basic services to the poor.          

            Sir, such partnerships ensure that the provision of basic services become more efficient, empowering poor communities and engineering more meaningful social development for the community.

            Sir, may I refer to the Supplementary Notes to the Budget already alluded to by the honourable Leader of the Opposition (M.M. Beddoes) and I quote:

                        "... that Government is well aware of the impact of Small and Micro- Enterprises on employment and growth, have quite small financing requirements and having relatively major impact on employment and livelihood and that SME's are particularly suited to rural enterprises and serve as a distributive role to develop livelihood in rural areas."

            But contrary to his views of inadequate allocation for SME development, the Minister for Finance has quite prudently made allocations to ministries that can best deliver such programmes.  For instance, Sir, the budget allocated $1.6m to the National Centre for Small and Micro Enterprises for the development of small business entrepreneurs, $300,000 for Eco-Tourism Projects and $200,000 for business incubation centres.

            Mr. Deputy Speaker, Sir, I wish to mention a training programme by the SME Centre. It is a fast-track programme, of 10 days, to prepare workshop participants to set up their businesses and prepare "bankable" business plans.  The training programme is based on experiential learning.  This means that the package is particularly targeted to the needs and educational levels of participants, especially the poor and marginalised.  If need be, some of the lessons are conducted in the vernacular if required by participants.

            Mr. Deputy Speaker, Sir, the National Centre will also implement a component of the Alternative Livelihood Project, which has an allocation of $4 million to assist sugarcane farmers whose families will otherwise suffer from the expected fall in sugar prices.  The project will provide a safety net for people who are likely to lose their livelihoods, so that they do not face destitution and become part of the poverty statistics.  The Centre has advertised for eight Business Counselors who will be stationed in the sugar cane centres in the Western and Northern Divisions.  These officials will advise clients on business opportunities, start-up, and operations.

            Sir there are also allocations of $2 million for Rural and Outer Island Development Projects; $750,000 for the development of coastal fisheries; $800,000 for aquaculture, brackish water and seaweed projects; $1.5 million for the Integrated Human Resource Development for Employment Promotion and the allocation of $1 million for the Women's Plan of Action, part of which, I believe will be utilised for the development of business ventures for women.  All of these allocations will invariably be used by SME ventures.

            Mr. Deputy Speaker, Sir, an allocation of $1.9 million is made in the Budget for the Department of Cooperatives, which is under my responsibility.  The core activity of the Department in 2006 has been the promotion and development of small and micro enterprises to generate income and employment opportunities.  

            Sir, in promoting the establishment of SMEs, the challenge is in identifying appropriate small cottage and service industries whose products are in high demand with low capital requirements and employ simple basic technology.   The honourable Minister of State for Public Utilities Reform mentioned honey production yesterday.  Sir, I heard from Fisheries officials that they had just made a payment of $24,000 last month to sea-weed farmers in Ono-I Lau, the furthest island in Fiji.  Yes, Sir, this Government is not blind to the plight of the poor or our  far flung communities.  The provision of a $4.5 million for a multi-purpose vessel from China will also assist in bringing in the produce of outer island Small Micro Enterprises.

            Mr. Deputy Speaker, Sir, the promotion of export and import substitution are two key objectives of the National Strategic Development Plan.  Co-operative groups contribute towards achieving this goal through group or communal agricultural production. 

            To improve the Department's outreach, it is vital that the officers of the Department are provided the financial and physical resources to carry out their functions efficiently and effectively.  Sir, this is my humble request to the honourable Minister for Finance.  Mobility for easy access to all rural locations is essential for the field officers to ensure SME development and its benefits are felt and enjoyed by a wide cross-section of the population.

            Sir, ICT is the technology of the 21st Century and the basis of the new economic order.   What this new technology means is the need to change, because the tools have changed, and with that, knowledge has changed, therefore attitude and skills must also change.  To cope with this change, education and training to build capacity for sustainable growth is pivotal in realising information capital.

            Sir, at present, there is a big "gap" between the old economic order and the new.  The holistic framework, business context and entrepreneurial perspective with the SDP for 2000 to 2007 for partnership and sustainable growth is not even considered an option by the other side.  To solve problems and elevate these to become opportunities require market data and information, which is provided by the Budget 2007.  Sir, Management is a process and therefore, the issue is team-building to reap the real benefits for all citizens. 

             Sir, in the meantime, the National Centre for Small Micro Enterprises will ensure the provision of statistics on micro, small and medium enterprise creating and using ICT, through e-government and e-community networking.  This will produce relevant data and information to feed into the planning processes.  Furthermore, the allocation for exports and investment, will simultaneously take advantage of Fiji's hub position in the South Pacific and benefit from technological spill-overs from developed neighbouring countries.  Therefore, the establishment of an ICT Economic Free Zone at Kalabu is a welcome start and I disagree with the honourable Member for Macuata East Open (A.D. Singh), as this area is for all types of learners, to become smart learners who will add value, because information is capital, not personality.  Additionally, the incentives of the 10-year tax holiday, zero rating for VAT on sales to the local market and free fiscal duty on importation of plants and machinery are innovative to reduce risk with the benefit of being business friendly.

            Mr. Deputy Speaker, Sir, in the context of the theme of this year's Budget "Partnership for Sustained Growth", I am encouraging the two agencies under my responsibility, the Department of Co-operatives and Small Businesses, and the National Centre for SME Development to support and follow closely SME financing and development undertaken by Ministries and other Departments, and to discuss with them the best possible ways in which we can add value to their programmes. 

            Sir, being a student of literature once, may I add with Shakespeare with his most famous quote:

            "To be or not to be, whether it is noble in the mind to suffer the slings and arrows of outrageous fortune or to take arms against the sea of troubles."

            Sir, this Government has decided to take arms in meeting the challenges of our shared future.  Sir, with those few comments, I fully support the Budget before the House.

            MR. DEPUTY SPEAKER.- Honourable Members, at this juncture, I would like to welcome visitors in the gallery, who I am told are Maria, Asena Bukadua and Sanaila Vuki, who have traveled all the way from Vanua Levu to be with us and take back memories of this place.  We hope that you will have a fruitful visit.

            HON. J.N. BANUVE.- Mr. Deputy Speaker, Sir, I would like to join my fellow colleagues in extending my utmost appreciation and gratitude to the honourable Minister for Finance for a very good and balanced Budget.  I also offer my strong support to the 2007 Appropriation Bill, 2006.

            First, I must express my sincere appreciation and gratitude to the honourable Prime Minister, the SDL Party, my fellow colleagues the honourable Members, the Secretary-General and staff of Parliament, for their condolence, and support during my recent bereavement.

            I reconfirm my support to the honourable Prime Minister and our Multi-Party Government.

            Before I begin my contribution on the Budget proper, I wish to add to the thoughts which some of my fellow colleagues, have expressed concerning the Multi-Party Government.  Last June, in my reply to His Excellency's Address, I had expressed my gratitude to both the honourable Prime Minister and the honourable leader of the Fiji Labour Party, for agreeing and facilitating our Multi-Party Government.

            Mr. Deputy Speaker, Sir, I had said that their names will be treasured by all communities in Fiji and overseas.  Sir, I said then that the Multi-Party Government can only work under a consensus decision-making system.

            This Budget is the result of deliberations in Cabinet.

            Under the principle of collective responsibility and accountability, so pivotal in a Westminster parliament system, any of our honourable Ministers, regardless of party affiliation, cannot vote against this Budget.

            One of my fellow colleagues, who had contributed earlier had succinctly reminded our FLP Ministers of the oath they took in becoming Ministers of Government.  I am sure that I speak for all the right thinking people of this nation, in upholding the integrity and courage of the honourable Member for Nasinu Communal (K. Datt), the Minister for Labour and Industrial Relations, in the principle stand he had taken. 

            May I offer, at this juncture, the wisdom of the great Indian leader Mahatma Gandhi, when he said and I quote:

            "Rights that do not flow from duty well performed are not worth having."

This critical time calls on all of us to perform our duty in upholding the unity of our people.

            The multi-party arrangement ensures our political unity at national level.  This is why it is important, that having been part of the Cabinet decision, all honourable Ministers should support this Budget.  The principle at stake is more than just divisive communal party politics, and political survival.  The moment calls for political courage and integrity for the good of all, our multiracial community and our nation.

            Mr. Deputy Speaker, Sir, we are at a significant crossroad in our political development.  We face a test, not only for our Constitution and Multi-Party Government, but a test of moral characters of Ministers concerned.

            Sir, not only will the outcome decide how united we will advance politically in our multiracial nation, this moment also calls on Ministers concerned to show to our nation and the world, their integrity and moral characters, which makes one truly thankful that we have amongst us champions of unity, peace, stability and goodwill, such as we have in our honourable Minister for Labour and Industrial Relations.

            Mr. Deputy Speaker, Sir, it is a sad state of affairs that events now force some of the honourable Members amongst us and some diligent Ministers of our nation to this political abyss.  There is little that we can do, considering the stand of the Fiji Labour Party on this matter.

            I am shocked that, instead of showing Fiji and the world that we, the elected representatives of the people, stand united for peace, goodwill and stability, the FLP has chosen this Budget to show Fiji and the world that it chooses the communal strife and instability that comes from divisive communal politics.  Sir, like Mahatma Gandhi has said, the right to our political survival in a nation that espouses division and communal strife, is worth nothing against our duty to a good exemplary leadership, that will secure for all our people peace, goodwill and stability, only on which we can build our prosperity.  For our FLP Ministers, please take note that the whole of Fiji and the world will be watching!  I beg you kindly to do the right thing.

            Mr. Deputy Speaker, Sir, I wish to thank the Government, especially the honourable Minister for Finance, for a well-balanced and visionary Budget.  We have heard from the honourable Member for Tavua Communal (A. Babla), that this Budget is against the poor.

            Sir, the poverty alleviation measures of this Government have already been stated very clearly by honourable Members from this side of the House.  We have also heard from previous speakers on this side of the House that rather than increasing the burden on the poor, the increase in VAT will actually be, for their long-term benefit.

            My colleague, the honourable Member for Tavua Communal (A. Babla) said that he will now pay 20 per cent more for his goat curry for Christmas.  I urge him that after this Budget session, to please come and visit the honourable Minister for Women, Social Welfare and Housing at Namuaimada in Ra, and to buy a local goat from him.  I am sure the honourable Minister will give him a whole live and tasty goat at a much cheaper price, than the frozen, tasteless imported variety he laments so much.

            The honourable Member also stated that after the approval of this Budget, he may not afford apples, oranges and grapes for his children.  It saddens me, Sir, that we have leaders of our nation, who are feeding their children imported fruits.  I wonder if the exodus of some of our younger people overseas is really because of their preference for cheaper oranges, apples and grapes.

            If we, as leaders, cannot show patriotism for our nation and bring our children up on the abundant produce of our land, it augurs well indeed.  I urge that we give our children Rotuman sweet oranges, our local pawpaws, pineapples and mangoes.  They are fresh, more nutritious, far cheaper and save on foreign exchange.  Even better perhaps, as honourable Members of this House, we could lead by example by having more of our people plant more vegetables and fruits, and rear more goats and local sheep.

            Mr. Deputy Speaker, Sir, I applaud the very wise motive behind the increase in duty on imported food.  I know that it will hit hard on our pockets, especially so amongst the poor.  However, we have been told by the Ministry of Health that we are eating our way to our deaths, through processed imported food.  We have better, tastier and healthier local alternatives, but we live in a commercial world where the multinational operator is king; the supermarkets, with its marketing efficiency, have offered us the lazy alternative of unhealthy, processed food that have sat on shelves or freezers for weeks and sometimes, months.  With their marketing power and price-fighting gimmicks, supermarkets and shops enable us to enjoy the privilege of buying these unhealthy food and the non-communicable diseases that come with them.

            Sir, the alternative of getting people to grow some of their own vegetables and food crops gives us a healthier body and much needed exercise.  Some of us are now harvesting beans, pumpkins, cabbages, carrots and chillies from their backyards, so the increase in VAT is good.  It will set an incentive towards the growing of more local food, and actually reducing people's spending, especially the poor in our rural areas.

            Mr. Deputy Speaker, Sir, about 13 per cent of our imports are food commodities.  According to the Ministry of Agriculture, our vegetables, including capsicum and tomatoes, are rotting on the ground.  It appears that either we have a preference for imported food, or that we need to develop better marketing infrastructure for our farmers. 

            Too often, we have heard that hotels have to import their food because of the unreliable supply of local food.  We import about $20 million worth of mutton annually, yet, it has been proven that our local mutton meat tastes much better.  The increase in prices, as a result of the VAT increase, should force us to re-look at our agricultural and marketing practices.  It will create a much-needed barrier, to enable our people to take stock, and opt for the healthier and cheaper choice of local food.

            I thank the Government for the provision for upgrading the Fiji School of Agriculture.  There is a need to upgrade our skills in agriculture, so we can make the most of the big markets for our agricultural commodities.

            I believe that negotiations are taking place between the Ministry of Agriculture, USP and the Cornell University of USA, towards a full degree in agriculture to be offered at the Fiji College of Agriculture.  That is certainly a move in the right direction, and I thank the honourable Minister concerned, and the Government accordingly.

            Mr. Deputy Speaker, Sir, a number of my fellow colleagues have highlighted the many provisions that Government had provided in this Budget, to ease the burden of education on the poor.  With regard to technical or vocational education being offered by the many institutions in Fiji, I reiterate my support for Government's provision in this Budget.

            I support the franchising of the Fiji Institute of Technology (FIT) certificate courses to secondary schools.  I am concerned, however, that entry qualifications, instruction and practical work standards should be strictly monitored.  I believe that the FIT is franchising its certificate courses so that it could concentrate on its Diploma and Degree programmes.  I urge Government to closely monitor this matter, so that the focus of our technical education is in line with our projected skilled manpower needs, and that we do not have too many people with engineering degrees at the cost of much needed skilled technicians at lower levels.

            With respect to Sports Development, I applaud the provision, to enable the Fiji Netball Association to host the World Netball Championships to be held next year.  I thank Government for the provision of $700,000 for our athletes, sportsmen and women to participate in the South Pacific Games.  I support the provision of $0.5 million to help the Fiji Rugby Union, for their preparation towards the 2007 World Cup in France.

            Mr. Deputy Speaker, Sir, I extend my gratitude to the Government for the provision of $1 million in the Women's Plan of Action.  This sum will be used as one-off payment, in establishing small and medium enterprises, targeting those eligible for family assistance.  Unlike past recurrent payments, this is a viable welfare support system that supports our poor families in the commercial use of their available resources.

            Mr. Deputy Speaker, Sir, with respect to the increase in the provision of squatter settlements to $3 million, my fellow colleagues have already spoken on this issue.  I wish to re-emphasise that squatters are among the poorest among us, and it is good that this Government is giving them assistance.  We cannot resolve our squatter problems, unless there is a concerted effort by all to find affordable and better houses for the poor who live in squatter settlements. 

            I urge, Mr. Deputy Speaker, Sir, that the Housing Authority and the Public Rentals Board should be more imaginative in the lots they develop and the houses they build, while our municipal councils should be more realistic in the standards they set, especially for low-income housing developments.  I am happy that we have more private sector involvement in the provision of housing.  I specifically applaud the contribution of HABITAT, and GOODNEIGHBOUR in the housing of low-income earners

            The Native Land Trust Board is developing a subdivision at Veikoba, which will yield quite a number of lots and settle a large number of our people.

            Vei kemuni saka na Turaga na i Liuliu ni Bose, au gadreva ga me'u tukina na noqu vosa ena sigalevu oqo, me'u vakavinavinaka vakalevu sara kina veivuke levu sa vakayacora tiko na Matanitu kina noqu constituency, na Vualiku ni Vua-i-Ra kei Viti.  Oya, o Ba, Lautoka kei Nadi.

            Vinaka sara vakalevu na veivuke, ka oka tiko kina na i yaya ni vuli kei na veika kece, vakauasivi na veivakavaletaki kei na veivuke levu sa vakayacora tiko na Housing Authority mai Matavolivoli, Nadi ena gauna oqo.

            Mr. Speaker, I fully support the Bill before the House.

            MR. DEPUTY SPEAKER.- Honourable Members, we will now adjourn for lunch and resume at 2.30 p.m.  The House is now adjourned.

            The House adjourned at 12.55 p.m.

            The House resumed at 2.45 p.m.

            HON. M. RAGHWAN.- Mr. Deputy Speaker, Sir, I rise to contribute to the 2007 Appropriation Bill before this august House.  After a week and a bit of pouring over dozens of papers and books, and listening to most of the Government Ministers' presentations, consulting people and attending party caucus and dealing with constituency matters, I  began to wonder where to start?  I will be speaking on the Bill and constituency matters side by side.

            Mr. Deputy Speaker, Sir, I thought I would start with the word "Budget".  The laptop dictionary gives the meaning as "financial plan" (noun) and a "plan" (verb).  The Oxford Advanced Learner's Dictionary states, and I quote:

                        "An official statement by the government of a country's income from taxes, etc, and how it will be spent".

            A "budget deficit" is  "when the government spends more money than it earns".  Then I realise that the Hindustani word for Budget is "bajat", meaning, "to save" or spend what you have and not what you do not have.  Budget se budget aa gaya; meaning "from savings we get a budget".

            For any budget to be effective, one's income should be able to cover one's expenses and needs to stay within it, not relocating it as one wishes.  When it is relocated, it is called "blowing one's budget", and I think we have a high success rate of that.  In any household budget, parents will always put their children's need ahead of themselves.

            Mr. Deputy Speaker, I wish at this point, to thank the Government (and I do not see many of them), for allowing the Fiji Labour Party backbenchers to attend the Ministerial briefings on the Budget and seeking clarifications.  One of the most notable features in almost every Ministry was that between 50 to 70 per cent of the Budget was allocated towards emoluments and Government wage-earners, thereby leaving each Ministry between 30 per cent to 50 per cent on maintenance and operation costs, capital construction and capital purchase.  Ideally, budgets should work on one-third salaries and two-thirds capital and maintenance costs.

            Mr. Deputy Speaker, Sir, my seat (Samabula/Tamavua Open) has a cross-section of people residing within its boundaries - those who can afford their needs and wants and those that make do and others barely surviving.  I say this, Mr. Deputy Speaker, Sir, as there are nine major settlements within this area.

            Like we all need air to survive, other necessities such as shelter, food, clothing and water are common, as well as essential.  Livestock is not permitted in these areas and neither do most people have enough land around them that is arable to be growing vegetables on.  The settlements nearer to the sea and rivers are prone to flooding, as the soil are fairly well compact, thus taking a while for the water to recede or simply because it is slightly above sea level.  As we are all aware, the number of people in these settlements, between the Suva-Nausori corridors have doubled in the last five years, from approximately 45,000, to 90 odd thousand, possibly more as we speak, most barely surviving.  This is called a "hand to mouth syndrome".

            Mr. Deputy Speaker, Sir, we, as leaders are not magicians, nor have all the right answers, but we must have vision.  The mushrooming settlements could be because of the non-renewal of land leases, uncertainty of political stability and possible hosts of other reasons.  Sir, had we have a vision for economic stability, the renewal of leases would have been resolved, no mass movement of people from one island to the other, people would still be working the land, land leases being paid, local production could be better, and lets try and encourage the situation.  We would not have the same people living in deplorable conditions, trying to make ends meet, overcrowding on land that is too small to house everyone.  Then Government wakes up to the scenario but does not realise that it created it.  It tries to rectify it by spending more money than it can ill-afford, having chopped part of its arm already on social welfare benefits, housing schemes, utilities and being unable to cope with the continued increase in the inflow of people needing assistance and the demands to meet rising costs.  This is a vicious cycle that we have got ourselves into.  We cannot force people back on land, if no solution has been reached.

            Mr. Deputy Speaker, Sir, on the much debated topic of VAT, while I see that the intent of the rise in VAT is to generate revenue and redistribute wealth within the economy evenly, I cannot agree that this is not the only form that Government can take in generating revenue.  This sounds more like a quick fix band-aid-job.  Are we not taxing ourselves enough in ways of FEA surcharge, phone rates and the 12.5 per cent VAT amongst fluctuating fuel costs?

            The intent of the Bill is to encourage us to grow our own vegetables and possibly increase local consumption.  The intent is that, locally grown fruits, vegetables, crops, fish, et cetera, will not have VAT on them, hence grow, breed, sell and buy them.  This, I believe, Mr. Deputy Speaker, Sir, could have been an educational exercise, using the local media to encourage local production rather than bend people's choices and causing more hardship.

            Excise duty has been increased from three per cent to a high of 27 per cent for vegetables that we have always found difficult to grow in Fiji.  Vegetables such as carrots, broccoli and capsicum are not easily grown.  Some of these crops are temperate crops, which cannot be grown year around, except under artificial conditions such as greenhouse and hydroponics at greater costs.  Assuming that they are grown, we will we be able to cope with the demand and supply.  Mr Deputy Speaker, Sir, until to-date, we have rarely been able to meet any of our demands as we always have to supplement with imports.

            In the six years that I spent at the Nacocolevu Research Station in Sigatoka, I do not remember a single year where a single demand for seeds to farmers were ever met.  I hope allocations have been made to produce the necessary seeds and for it to be distributed wisely.  In saying this, I would also like to point out that, we as a nation, do not have a rehabilitation plan, where in the case of a disaster, we have seed stock to fall back on.  I would urge the Ministry of Agriculture to look into this.

            On education, Mr. Deputy Speaker, the Ministry of Education has been given the largest portion of the pie.  I was extremely excited when I first heard this.  Finally, schools can be fixed, windows repaired, buildings painted and I was also thinking that finally, we could possibly see a change to our 20 plus years old curriculum.   I was, however, highly disappointed to see that 65 per cent of its Budget was going directly into emoluments and we have been given reasons for this.  We hope that the 20 per cent that the schools now have since the costs of emoluments are absorbed by Government, will really see some decline in added costs to the students and money put towards bringing schools up to OHS standards.

            Mr. Deputy Speaker, Sir, we are mainly coastal dwellers.  A good number of schools are along the coast.  I hope, Sir, that the honourable Minister for Education will understand why I keep bringing up the topic of safety drills and evacuation procedures in schools and their implementation.  Sir, I raised these questions at our last Parliamentary sitting and I was told that all schools had been given manuals.  I recall saying manuals was not implemented. 

            I further mentioned that I had visited the DO's office and spoken to the Director of DISMAC and both had mentioned that drills were not in place.  I was then told by the honourable Minister that I had not visited any schools, fair enough.  On 13th October, I visited seven schools, two being special needs school, except for Suva Grammar School, which had a demonstration the day before my visit.  None of the other schools had earthquake drills or evacuation plans in case of a tsunami or tidal wave warning. 

            My concern is, Mr. Deputy Speaker, that in the event of a tsunami or tidal wave, should there be ample time, the immediate reaction of a parent would be to reach the child.  Can you imagine the chaos on the roads?  We need to look forward and plan to minimise disaster.

            A simple circular to Principals of all schools at the beginning of a school year, outlining procedures would work to initiate these drills and to inform parents what to do on such an event.  Sir, it reminds me that we here in Parliament, have not had drills either.  I do not think most of us will be able to fit under our desk in case of an earthquake.

            While on tsunami and tidal waves, Mr. Deputy Speaker, Sir, I see that there is a budget allocation for a new archives building at Kimberly Street.  Great idea, but is this the best possible location?  Like the Suvavou House, Ro Lalabalavu House, Lands et cetera, store historical records and documents of which we may not have electronic copies or duplicates.  In the event of a natural sea disaster, we stand to lose a lot by way of records and original historical work, as the buildings are based too near the sea.  A two or 20-storey building will not make a difference when up against tonnes of water.  In terms of forward planning, Sir, I urge the honourable Minister for Information and Communications, to consider finding a location on higher grounds now, rather than moving later at a huge loss.

            Mr. Deputy Speaker, Sir, accountability is essential to good governance.  If we give allocations for this year, it is important that allocations for the last year be looked at, assessed and see what we have not been able to achieve.  For example, if we had allocated money for x kilometres of roads, was this achieved?  Not just achieve the target, but the quality control in places as well.  Checks and balances need to be put in place, where Government machineries are concerned.  Chief Executive Officers should be held accountable for the spending and over-spending in their departments.

            I now move to the area of Tourism and Public Private Partnership (PPP).  Mr. Deputy Speaker, Sir, in the past, hotel developers would come in with their plans and put into place their own infrastructure and basic amenities at their own costs.  Then we did not have a PPP.  I notice with interest that the budget allocated for the repair of our roads according to the CEO would likely try to dry out by mid next year.  However, we have allocated $17.5 million, I believe for Momi Bay alone for the Momi development.  I am still trying to figure out our PPP system? Government and landowners build road access, developers build roads at their own expenses and at the completion of the project, Government pays back the developer for the road which we did not need in the first place?  I have been led to believe that this is a political agreement.  I wonder how much we have lost or stand to lose on the Natadola Scheme.

            Meanwhile, Sir, those of us who pay taxes travel on potty roads, where the budget allocation is not sufficient.  I am sometimes left looking for the road amongst the pot holes. I also fail to understand why LTA fines are not diverted towards road works and maintenance.  I would like to suggest, Sir, that in the areas that have high flow of traffic and have lots of pot holes, particularly at junctions, that the Ministry consider using concrete road surfaces.  Costly at first, yes, but less maintenance on the long run and a high road quality unless we start pounding grog on those surfaces.

            I note with interest the money allocated for water projects, like road projects are not funded on a start to finish budget, money is poured in stages.  Road projects when contracted out need money put aside.  Delays in projects are costly and termination of contracts mid way too.  While I commend the honourable Minister and his staff for working under constraints, I would urge him to look into the quality of the work done by contractors and hold them accountable.  One way of savings is when Ministries like the Ministry of Works hold talks with Telecommunication and Fiji Electricity Authority.  Our roads and footpaths then, would not need to be dug up three to four times, and one Ministry to foot the whole bill.

            While on waters, Sir, allow me to relate a little incident during the recent water cuts.  I, with one of our FLP researches, Mr. Moroca took a ride up to the Wanibuku Reservoir.  The story as it goes is that, first a path had to be cleared to the site, then the boys dug three metres down in muddy conditions.  The leak was located, fixed, boxed in and cement poured.  The story should have ended there.  The curing time for the cement was eight hours, however, because the people were under pressure, valves were opened after four hours, the cement was still soft, there was a crack and they had to repeat the process.  This time, we had to wait for another eight hours, for water to fill the reservoir up to the two meter level, which took approximately six more hours.  Sir, is this not mismanagement? 

            Meanwhile, OHS starts asking institutions to close and for people to go home.  Mr Deputy Speaker, Sir, every plan that is sent to the Council or Town and Country Planning for approval should only be passed when there is provisions for water tanks.  We have no excuse for not being able to store water for emergency uses.  Water itself is not an issue, it is the infrastructure that is causing all this nonsense.  Until such time, and God alone knows when water is a normal feature, we need to look at alternatives.  This will also get rid of the high costs of carting and truck expenses that we can ill-afford but cut back on our own water bills, not to mention the losses incurred in business and productivity.

            I would also like to highlight the unusual directory expenses under purchases of goods and services under each Ministry.  The cost vary from $1,000 plus to $11,000 plus per Ministry and for the life of me, I could not find the formula used. Whether it was based on the number of lines, directory entry or number of people per department.  I hope that with the Governments move to e-Government the only directories that come in would be the ones that are given, because we have phones registered or the phone lines paid for.  The other form should be electronic copies that can be accessed on the net.  Besides, as far as I know, all ministries have receptionists.

            On the allocation to the Women's Plan of Action, I am still waiting for the honourable Minister, his CEO and Director to give me the break down of the $1 million.  I was told today, then tomorrow since Friday last week.  I do, however, hope that we include within women in peace talks for this Action Plan.  Women and children are the most vulnerable, whenever we have political instability on the land.  In these last few minutes, I have a few requests to make.  I want the Ministry concerned to help fix fields in Nabua off Sukanaivalu Road.  Some of our rugby greats started off on these fields.  Players like Tomasi Cama, Waisale Serevi and the Rauluni brothers, to name a few.  Sir, where we have not been able to reward them financially in the past, or even at present, playgrounds can be upgraded and named after such players, who have given much to the nation as a whole.

            Sir, a plea to the citizens in the area of Nabua settlement to stop vandalising the health centre so that the centre can be equipped and functional. 

            I thank the honourable Minister for Primary and Preventative Health Services and his staff for refurbishing the health centre.  While the Government endeavours to help where it can, we citizens need to respect such properties as our own.  There are many points one could look at and speak more on both; positive and negative.  While no budget is very good, checks and balance need to be put in place.  

            Sir, each Ministry should run like a business, and the effectiveness of that business is seen in its outputs and our accountability.  Much has been said about leakages and we need to assess and re-assess our achievements and failures each year and improve.  I constantly remind myself; if I cannot do it, then get someone who can.  With so many grey areas, many not highlighted due to time constraints, firstly, the effect of rise in VAT and other duties where the end-users are us, the people.  Mr. Deputy Speaker, Sir, I cannot support the Bill before the House.

            HON. S. KAITANI.- Turaga na i Liuliu ni Bose, ena vukudra saka na turaga, marama kei ira na lewe ni noqu Yasana ko Lomaiviti, au via vakaraitaka na neimami vakavinavinaka vua na noda Kalou bula ena vuku ni veika lelevu ka sa vakayacori tiko baleti keda ena noda Vanua.  Keimami duavata saka kei na Tui ko Tevita me keimami kaya:

            "Dou vakavinavinaka vei Jiova na lewe ni veivanua kecega, dou vakavinavinaka vua na vei Matanitu kecega, ni sa ka levu na nona yalo loloma vei keda, sa sega ni mudu na nona yalodina vei keda, dou ia vei Jiova na vakavinavinaka." 

            Turaga na i Liuliu ni Bose, esa ka dokai saka vei au ena noqu i tutuvaka vaka Mata Digitaki ni neimami Yasana ko Lomaiviti kina nomuni Vale ni Bose cecere oqo, me'u vakadeitaka na nodra veitokoni na lewe ni vanua ko Lomaiviti kei na kena veiyanuyanu, kina veiliutaki ni Matanitu ka sa cici tiko mai oqo. 

            Era duavata vakalevu sara na lewe ni Yasana ko Lomaiviti ena nodra digitaka tale na i Soqosoqo Duavata ni Lewenivanua, vakabibi na Turaga na Paraiminisita, me liutaki keda tale me vaka na macala ni Veidigidigi Levu, ka keimami tokona vakaukauwa na nona veiliutaki vinaka ka vakabauta ni sa i tuvatuva ni Kalou vei keda e Viti.  Eda sarava na veiliutaki, ka yavutaki tu ena rerevaka na noda Kalou bula, ka vakaliuci kina na veirokovi, veidokai kei na vakabibitaki ni qaravi ni veika baleti keda na i Taukei, kei na veimaliwai vinaka kei ira na wekada na veitamata kece sara ena noda Vanua. 

            Ena yaga me'u tauca tale na neimami vakavinavinaka na lewe ni Yasana ko Lomaiviti, kina veika lelevu sa mai vakacavari rawa ena loma ni lima na yabaki sa oti, ka marautaka sara talega vakalevu na veika ka ra sa baci vakarautaki tu oqo me sova yani na Matanitu kina loma ni neimami Yasana ena i Tuvatuva ni Lavo, ka sa tu oqo e matada. 

            Au vakavinavinaka kina vakalevu ki vua na Turaga Talai ena i Wasewase e Natokalau, kei ira na nona vakailesilesi ena vuku ni tuvatuva ni Tabana ni Veivakatorocaketaki ena Taudaku ni Veikoro Lelevu ena 2006 ki na 2008.  E sa vakarautaka tu na Matanitu oqo e dua nai lavo vakaitamera, e rauta ni $4,294,929.80 na levu kece ni lavo me na vagolei yani ena neimami Yasana ko Lomaiviti, ena i tuvatuva oya. 

            Ena yabaki oqo, e rauta ni $989,935,000, ena vagolei kina 84 na vei sasaga ni veivakatorocaketaki eso. Ena yabaki mai qo (2007), e rauta ni 103 na sasaga ni veivakatorocaketaki, ka vakarautaki kina e $1,585,999.80. 

            Ena yabaki 2008, e vakarautaki kina e 99 na sasaga ni veivakatorocaketaki, ka na vagolei ka rauta ni $1.7 milioni ki na loma ni noqu yasana vakaturaga.  Au via vakavinavinaka kina vakalevu. 

            E rauta ni 286 taucoko sara na sasaga ni veivakatorocaketaki  e sa vakarautaka tiko na Matanitu, ena i tuvatuva oya ka vakaoqo na kena matailalai ni vanua me ra na veigoleyaki kina:

            Vukei Koya vakai koya                -           107

            Dalo/Yaqona Access Roads         -            25       

            Non-PWD Roads                        -            5

            Provincial Dev. Projects               -            14

            Rural Housing                               -           132

            Village Improvement Scheme        -            3

            Levu Kece ni Lavo                       -            4,294,929,000

            Turaga na i Liuliu ni Bose, oya e dua ga na tabana ni Matanitu.  E sega ni okati kina na veivuke lelevu tale eso ka na qai sovaraki tiko yani vakamalua ena kena toso tiko na veiqaravi ni Matanitu oqo ki na noqu Yasana, mai na veitabana eso me vaka na Tabana ni Vuli, Tikobulabula, Tabagone, Soqosoqo Vakamarama, na Valuti ni Dravudravua kei na veitabana ni Matanitu tale eso.

            Ena vuku saka ni veivakatorocaketaki, keimami sega ni galala talega na Yasana ko Lomaiviti mai na veileqa eso ni qaravi ni cakacaka mai na veitabana vaka Matanitu, ka sa ra vosa oti tiko kina na Lewe ni Matabose Lawa cecere oqo.

            Ena vuku saka ni veilakoyaki, keimami sa vakavinavinakataka na kena sa laveti cake tiko ni kena qaravi na wavu vou mai na neitou yanuyanu o Koro, ka vakauasivi na kena rawa ni dolavi tale na yanuyanu vakaturaga ko Gau, ena kena semati kina salatu levu ni veisokoyaki, ka tekivu tiko mai na nodra yanuyanu na Turaga Bale na Tui cakau mai Taveuni, ki Nasavusavu ki Koro, Gau ka yaco sara ki Suva.  Oqo saka e dua na vatavatairalago era gagadre tiko kina vakabalavu na yanuyanu vakaturaga o Gau, ka nuitaki ena loma ni lima na yabaki oqo, ni na rawa ni veivuke kina na Matanitu ena kena vakavotukanataki. 

            Turaga na i Liuliu ni Bose, ena rawa saka oqo ena kena vakadabera ga e dua na wavu vou na neimami Matanitu vinaka oqo mai Qarani, ena sasaga ni veivakatorocaketaki ena loma ni lima na yabaki esa tiko `qo e matada.  Au sa vakamamasu kina vua na Turaga Minisita ni Matai kei na Idinia kei na Minisita ni Veisokoyaki, ke rawa ni ko ni nanumi keimami kina mai Lomaiviti ena tikina koya.

            Ni sa na tadola na gaunisala ni veilakoyaki e wai oqo, esa na qai rawarawa talega na veilakoyaki vei ira na lewenivanua, ka na qai laki vakayagataki vinaka ka vakawasoma talega kina na gaunisala ni lori ka sa vaka me sa baci caca sara tu ga vakalevu ena gauna oqo mai na Yanuyanu Vakaturaga o Gau.

            Turaga na i Liuliu ni Bose, e lailai na gauna me'u sereka kece sara na lomai keimami.  Sa vakanuinui saka tiko na Yasana ko Lomaiviti ni na dua tale na yabaki lima vinaka e tiko oqo e matada, dina ga ni mai tekivu tiko ena dua na o loaloa ka bikai keda tiko ena gauna sara ga oqo.

            Mr. Deputy Speaker, Sir, much has been said about the Appropriation Bill No. 20 of 2007.

            I would, in my contribution to the debate on this Bill, focus on the facts that are facing us as a nation.  As national builders, it is important that we put aside our personal interests and focus on the interest of the nation at heart.

            Mr. Deputy Speaker, you were very correct in pointing out yesterday, that we need to put aside political opportunism but instead to strive for the call of the nation upon our individual lives.

            Apart from the authority of God himself, we must realise that we possess the power to make and break legislations for the welfare of the people in this land we all love, the land we call Fiji.

            Mr. Deputy Speaker, Sir, the honourable Minister for Finance has clearly outlined the very hard realities of our economic situation.  Like all developing countries, we are moving ahead but with much to be achieved.  The Asian Development Bank has forecasted our GDP growth to edge up to two per cent in 2006 and 2.4 per cent in 2007.   According to them, this two per cent may not be sufficient to generate employment and incomes needed to substantially reduced poverty and improve welfare.

            The problems in the sugar and clothing industries are impending tax revenues.  At the same time, they are raising demands for social services which points to further budget deficits.

Progress on the Public Sector Reform will greatly determine our nation's capability to contain our public debt, as well as narrowing the fiscal deficit to four per cent being the target of GDP for 2006 and 2007.

            Then our Government's fiscal position is also exposed to the performance of State enterprises, given Government's ongoing recurrent transfers to fund these entities, as well as providing loan guarantees and other liabilities.

            Mr. Deputy Speaker, Sir, the above forecasts provided by the ADB, in one of their recent Report, do pose critical issues to us as nation builders.

            Some of the honourable Members from the Fiji Labour Party had, of course, enjoyed their stakes by riding on some of these Reports in their contributions to the debate too, prophesying doom upon our land.  They have only, however, qualified to become Prophets of doom and gloom themselves.

            On the other hand, the honourable Minister for Finance did not mince his words when he took the bull by the horn and highlighted our recent macroeconomic performance and I wish to congratulate him for that.  The Fiji economy, let me remind honourable Members again, has been growing at an average rate of 2.4 per cent over the last five years.  In 2002 and 2003, the economy expanded by 3.2 per cent and one per cent respectively, and 2004 was a record year with growth reaching 5.3 per cent.

            The honourable Minister was very straightforward in highlighting the fact that growth last year was 0.7 per cent, which was mainly due to the reduction in garment exports as a result of the loss of quota access to one of our major markets.  There were also declines in the production of sugar and gold.  These are the realities before us as leaders of this nation.

            On the Multi-Party issue, let me say that by virtue of the decision to accept the invitation by the honourable Prime Minister and Minister for Sugar Reform to join the Multi-Party Government (as a requirement of our Constitution) earlier this year, the leader of the Fiji Labour Party, in practice, had agreed to join hands with the SDL Party in pursuit of resolutions of the current economic dilemmas and challenges identified by the honourable Minister for Finance in his Budget Address.  The whole of Fiji were taken with a varying degree of acceptance and some reluctance at first, but the message is sinking in now that the Multi-Party Government is certainly the way forward for us.

            Mr. Deputy Speaker, I believe my fellow colleagues will agree with me in that, the whole country is just coming to terms with these rather controversial provisions of our Constitution and like our Judiciary, are all investing their trusts in this august House to act responsibly to secure our way forward.  That is also the underlying foundation and driving principle of the 2007 Budget theme - Partnership For Sustained Growth.  It is sad to note the rather "below the expectation" performances by most honourable Members on the other side of the House in their contributions.  An analysis of their contributions revealed some very interesting features as follows:

            (a)       They were all singing the same song like the frog, which sings away in the monotonous voice, they too were found guilty of the same.

            (b)      They seemed to portray that everything is going wrong, not even an acknowledgement of some sort for the positive features of the Budget (someone once said that if all seemed to be going wrong something must be amiss).

            (c)       All of them seemed to be reluctantly raising their voices against their conscience. They are saying something that they do not really believe in their heads are not in agreement with their hearts.

            Mr. Deputy Speaker Sir, the whole of Fiji upon reflection (and I think everyone knows why it is like that) knows it is common knowledge that they were all being forced to put their personal party interest ahead of our national interest.

            By virtue of the rule of collective responsibility and confidentiality, the FLP leader himself knows fully well that any vote by any honourable Member of the Fiji Labor Party Cabinet Ministers against this Budget, is a vote against the Multi-Party Government.  The honourable Member for Tailevu South Provincial Communal (I.U. Matairaivula), had clearly outlined this morning, the dilemma facing the FLP in terms of their failure to comply to the collective responsibilities being expounded in the Constitution with regard to the multi-party issue. 

            In this context, it would be fair to conclude that the leader of the FLP has again failed the people and the nation of Fiji.  The honourable Member for Ba Open (M.P. Chaudhry) himself continued to be a failure.  By putting self interest ahead of national interest, it is very obvious that the honourable Member is engineering the collapse of the Multi-Party Government.  This is not a surprise to some of us because the honourable Member himself was not in agreement with the spirit of the 1997 Constitution, having being one of its strongest public critics.

            It was publicly reported once that our failure to resolve the land issues is due to the honourable Member for Ba Open's deliberate delaying tactics.  It is a pity that the honourable Member finds it possible to believe that it must be him and he alone, that must redeem our hardworking poor farmers from their problems of land lease renewal.

            The multi-party concept has not been working very well because the honourable Member has been deliberately moving the goal posts every time we are about to come to some common agreement on the way forward.  It is unfortunate that again, he and the other honourable Members on the other side of the House are using this Budget session as another means of taking another bite of the same cherries.

            I feel sorry for those who do follow him blindly.  My Bible tells me that if a blind leads a blind, they shall both fall into the ditch. God help us and God help them!  I have been praying that this would not be the case, for we have some wonderful people amongst them from the other side of the House, whom God has chosen and calling as men and women of the nation to help join us, sustain and steer our way forward for the people of Fiji.

            Mr. Deputy Speaker Sir, so much criticism has been made on the issue of VAT.  I beg to differ very strongly with the critics.  Sir, VAT, as we all know, is a revenue generation item and that is basically what it is all about.  As such, it is important on our part as leaders to educate our people on the importance of this particular policy to sustaining their general welfare in the long term.

            Our fellow colleagues on the other side of the House, are binding together in rejecting this very important revenue generation policy of Government. They are indeed very deceptive. They are riding very highly on some public support through the media, which they have gladly highlighted in their contribution. Sir, as a revenue generation item, VAT is the only meaningful and effective means of stimulating the active participation by our general population into the revenue generation machinery of Government.

            Mr. Deputy Speaker, Sir, our people in the rural areas, as well as the underprivileged, all utilise Government public services and infrastructure.  They all visit public hospitals, use public roads, drink from the public water supply and all benefit from Government's electrification programmes and so on.  It is about time that the whole of Fiji realises that for this reason alone, we must all contribute to the Government's revenue generation machinery.  This is the bottom line.

            The FLP's position of "no VAT", is a complex one.  In fact, it is part of their socialist policies which really fails to appreciate the importance of strengthening people's participation in their own development.  They fail to see the positive impact that through VAT, our general population are actively participating directly in their own economic development. From our community development perspective, VAT is that very powerful component of Government's social engineering and empowering programme to strengthen community action and rid them off their dependence syndrome. Those like the FLP, who advocate "no VAT" do not believe in working with the people.  They only use people for their own selfish ends.  They exploit the vulnerabilities of the poor for their own good, while deliberately denying them the power to break away from their vicious cycle of poverty.

            Mr. Deputy Speaker, Sir, the nation needs to rid itself from the handout mentality that has enslaved us for so long.  The FLP, being champions and advocates of "no VAT", in fact, are slaves in bondage to their own socialist principles. They themselves need to rid themselves free from that mentality.

            Mr. Deputy Speaker Sir, I said earlier that the FLP's position on VAT is a complex one because if they are indeed serious with their "no Vat" stand, why did they not do away with the VAT component of their Budget when they were in Government in 1999 to 2000?  As a Government, they also recognise the importance of VAT as a revenue generation item. However, because of their deceptive nature  and the need to please their voters (like what they are now doing with the Multi-Party Government issue), they did nothing to abolish the VAT legislation in 1999.  Instead, they only introduced controversial legislation, exempting only certain basic food items as being part of the Elections gimmick.  Until now, I still fail to understand why they are still like crying babies over the "no VAT" issue, when in fact, they themselves did not practise what they preached.

            National Security:  I am reminded about the Word of the Apostles that all things work together for the good of those who love the Lord. I do strongly support the views already expressed by some honourable Members of this august House, that there is a need to resolve, as soon as possible, the current impasse between the Military and Government.   My ultimate solution to the current impasse is to come and join hands and take it to the Lord in prayer.  In his closing remarks after the Budget Address by the honourable Minister for Finance, the Speaker of the House did acknowledge something very important and I quote: "The good news is that God is with us." 

            Sir, in ending my contribution today, allow me to appeal to all the people of Fiji and the nation, please let us pray for the current impasse.

            To the honourable Prime Minister and Commodore Frank Bainimarama, the people of Fiji are fervently behind you in their prayers.

            Mr. Deputy Speaker, Sir, it is not for us to judge, for God himself being the supreme Ruler, He will judge each of us according to our actions.

            To the Great Council of Chiefs, we do rally behind you in prayers and in your quest for resolution of the current impasse.  Please do bear in mind that whatever things are impossible to man, they are possible to God, for to our God, nothing is impossible. 

            Let us not forget, Sir, that within the current fears that we have now, there are God-given opportunities for our deliverance. 

            Let us as a nation ask God to give us that holy fear in our lives to be able to call on Him in these turbulous times.  Let us remain one people under one nation.  God bless Fiji.  I support the Budget before the House. 

            HON. D. NAIR.- Mr. Deputy Speaker, Sir, like my other colleagues, I rise to contribute to the debate on the 2007 Appropriation Bill.  Another year has gone past and time has given us another opportunity to debate on the Budget Address by the honourable Minister for Finance.  The literal meaning of the word "debate" is to think about something, talk before deciding what to do.  Different views based on ethnicity, religion, diverse cultures, economic background, financial background, facts on previous achievements, present status and future forecasts are anticipated, therefore, I do not see any reason for honourable Members to show disrespect by uttering nuisances to hide their own incompetence.

            Sir, I refer to the comments by the honourable Member for Suva City Urban Communal (M.V. Ragigia) about the Fiji Labour Party, that it is just a move to camouflage deteriorating situation of Fiji's economy.  He came up with a lot of positive ideas but unfortunately at a time when he has been removed from the ministerial portfolio for reasons best known to him. 

            Sir, I feel that I should correct the honourable Member for Suva City Open (M. Weleilakeba) when he said that the leader of the Fiji Labour Party asked his Members of Parliament to oppose the Budget.  He may have been ill-informed or misinformed.  For his information, the Fiji Labour Party has always given the highest of respect to the rule of law, the Constitution, and we are expressing freedom of expression unlike the SDL Party.  He went further to ask, what hope was there so that collective discussions can be reached?  I would like to call on the honourable Member and say that this is simply shying away from the principles of good governance.  Now, if I ask him the same question as to why would a handful of Fiji Labour Party members or Ministers hang around for Cabinet portfolios if he has no confidence in them, what would his answer?  Is this kind of deliberation doing any good for the multi-party set-up?  Remember, we are saying that any consultation on the Budget would have given an easy path for the Bill, that is what the Members of the Fiji Labour Party are calling out.

            Mr. Deputy Speaker, Sir, my opinion on the economic vision "Partnership for Sustained Growth", lacks the expectations of various ethnicities, working class, business, educational institutions, Government institutions, social institutions, agricultural sectors, natural resource sectors, et cetera.  Therefore, I cannot assume peace and prosperity and get away with the Government to say; "get the wagons moving".  We cannot do that or "my prophet is the last prophet and we should abide by his teachings and principles".  Sir, I will cite an example; if someone says that killing is not a sin; should I blindly follow that?  Should my conscience allow me to follow that script?  Obviously, no.  I cannot be expected to be forced to accept hollow slogans which further aggravates people, and bring about disparity in all aspects of life, based on race, gender and region.  Racial and political polarisation is prevalent and if we want to suppress them, for the fear of becoming unpopular, we are going against the nature of force.  A unique economic vision which can practically free human beings from mundane problems, so that all will have increasing opportunities for intellectual and spiritual liberation. 

            Sir, your stomach is in need of food, can I expect you to concentrate on God as the highest authority for your intellectual and spiritual growth?  We have to appreciate that the country is going through immense hardships and should not be allowed to be further manipulated or exploited by unscrupulous people with self-centred motives.  Fiji is in an economically depressed situation, with reserves to continue for roughly four months.  This is not a healthy sign. 

            Mr. Deputy Speaker, it may not be healthy to simply ignore the voice of the very people who have bestowed all faith in us to perform to an acceptable level.  I express these views because the worse scenario a country can experience is when people start experiencing hunger.  This will force them to revolve.  No crisis can have a more devastating effect than that by a hungry mass. 

            Sir, instead of delving into the breakdowns of the national Budget that might just be theoretical extravaganza and uncertainty on the actual flowing down to the various districts, I prefer to elaborate on the ways and means of making the same figures look more practical if allocated in a proper manner.

            Mr. Deputy Speaker, Sir, because of the visibility of crude factors like the solid and liquid, mankind has taken possession of these resources thereby drawing boundaries for ownership, until such time people keep hanging to these in the name of natural resources, peace and prosperity will never be seen.

            Sir, I keep saying that when the Government deals with national issues like the Budget, speeches by honourable Members stress on allocations for the benefit of a particular ethnicity, which does not bring about any good.  It further aggravates people and make them emotional.  At the same time, I must suggest that any Government that wants to practise these skeletal frameworks of the past based on the narrow sentiments of nationalism, regionalism, ancestral pride, et cetera, will undoubtedly fail especially in countries like ours, because people of diverse cultures live here and diversity, not identity is the law of nature.  You will do indescribable damage to the country.  I urge the honourable Prime Minister to relate the controversial Bills, which (if I may say) are anti-social and allocations to various institutions, according to ethnicity, you will reveal that you are not fair to all the people in this country.  I can quote a number of examples of unfairness, leave aside the increase in VAT and fiscal duties on a number of items, which affect us all. 

            Sir, another example is, if we are acting in a responsible manner, there is speculation that some Cabinet Ministers might travel out of the country at this very crucial time when the Budget is being debated.  I would like to ask the honourable Prime Minister, whether this is an appropriate time, as they would be very much required during the Committee stage of the Appropriation Bill.

            Mr. Deputy Speaker, Sir, I do go along with my fellow colleagues who agree that the financial status of the country is not sound, nor can it be expected to improve immediately.  However, to increase VAT to 15 per cent, it does pose a question on the architects of the Budget on the issue of economic democracy.  How is this justified?  I have heard one of the very senior Members that the Government had to generate income as there are expenditures and money is scarce, therefore areas have to be prioritised.  That is fine with me.  If increasing VAT was to fulfil the other priority, I definitely would like to know the importance of the latter, because it will lead to starvation, malnutrition and deprivation of basic necessities of life.  How on earth would these measures be justified?  I level this as shortsighted, unethical, immoral and anti-social deeds.  Is this a sign of a caring Government?

            Mr. Deputy Speaker, Sir, given the wide range of topics to be covered under Rural Development and Energy, please allow me to respond to various areas of operations of Government that affect my area of concern. 

            Mr. Deputy Speaker, Sir, the intent of the Budget discussion is to see and discuss the moneys allocated based on forecasted revenues and expenditures.  Sir, similarly, it is done by the citizens of the country for their household expenditures also, just like when we make our own budgets.  In comparison to the 15 per cent VAT increase, Government may be looking at a better revenue to operate its affairs.  The price hike for general goods to that of annual wage increase and the anticipated job losses, people will fall victim to this mathematics.  Now the Government ends up with a deficit and its style of accounting will lead people to massive difficulties, the same direction in which this Government is heading.  Problems will start to evolve in homes.  People will be virtually left with nothing and spend more on the food items and other amenities.  People hardly get one to two per cent pay rise annually, but it would have been a good idea to increase tax luxury items than food items.  This is bad governance and I say this without hesitation.

            Mr. Deputy Speaker, Sir, instead of further burdening the already crippling, downtrodden, underprivileged and poor people, the Government should have instead guaranteed the minimum requirement of life; that is food, clothing, accommodation and education.  I know a good sum of money has been allocated for these.  The idea should progressively increase the quantum of minimum requirements, so that the standard of living of the common people is always improving.  This noble idea should not be compromised with inefficiency, mismanagement and corruption.  Now, as one of the honourable Member has suggested, the inclusion of Grant-in-Aid teachers in the Civil Service, the managements should reduce the building fund with the savings.  If this suggestion cannot be practically realised, we will continue to experience children being sent home for non-payment of building funds, later on encouraging them towards crimes and a further burden to the Government. 

            Sir, I have always stressed the idea of maximum utilisation and national distribution of resources.  This will provide incentives to increase production.  Increasing the purchasing capacity of each individual should be the controlling factor of a smart government.  Much has been said every now and then on the sugar industry, yet there is another challenge confronting the already ailing industry.  To be on par with the world for technical and scientific advancement is a good idea (such as taking a reform), but we have to assess our readiness, and the readiness of the country, growers and mills.  We should not be compelled to accept changes immediately, if we feel that the damage will be far more than the good.  Developments and advancement from physical to intellectual is required by the time factor, but it should take place gradually to avoid its bad impact on the working class.  Fiji already has thousands looking for employment.  This should be addressed first before adding more to the number. 

            Mr. Deputy Speaker, Sir, the 2007 Budget has not adequately addressed the grievances of sugarcane farmers.  The cost of producing a tonne of cane is almost $35 a tonne.  The price on the open market for sugar is less and now that there will be erosion of quota and preferential pricing, the sugarcane farming no longer remains viable.  It is however, critically important for a country like Fiji, in view of the favourable weather pattern and the number of people it employs, to explore means right away for the thousands of people, who have accepted sugarcane as their livelihood, as well as use cheaper means to cultivate cane.  If there is a need, people should be given grants for land preparation, fertilisers, weedicide and so on.  This Government has allocated nothing to the farmers, especially sugarcane farmers.  The honourable Minister for Finance should have injected money to assist farmers and get a better return than to direct them for further misuse.  This is a good example of mismanagement of funds, which has taken this country to the brink of collapse.

            Mr. Deputy Speaker, Sir, the Government should justify the VAT increase to these poor farmers.  Does the increase in threshold from $8,840 to $10,000 have any impact on these poor farmers, who are already earning little and making no tax returns?  They are now burdened through the increase in VAT.  If they fall within the range of $8,000 to $10,000, they would have experienced a little benefit.

            Mr. Deputy Speaker, Sir, FSC has continuously been losing experienced skilled workers and staff.  Now, FSC has encouraged people towards the Voluntary Separation Scheme and hundreds are attracted towards it.  How long will this mere sum of $8,000 to $10,000, which the companies are paying will feed families with four or five members?  The same might fall back on the Government in the near future, for assistance from the Social Welfare Department.

            One thing I have noted, Mr. Deputy Speaker, Sir, is that, the Government is going in a haphazard manner.  They try to solve one problem by creating another and let me tell you, these measures can bring temporary relief only.  The Government should stop this, unless it wants to be short lived with its regime.

            Mr. Deputy Speaker, Sir, my persistent calls to waive drainage levies fall on deaf ears, ever since I came here.  There is no improvement on the cane access roads funding.  Last year, some $300,000 was requested by Tavua district, and a sum below $100,000 was given.  I do not intend to comment more on the re-capitalisation programme, milling efficiency, reducing breakdowns and increasing sucrose extraction because this has become a norm and hardly anything happens.  I talk with proof from people, mostly lorry drivers spending weeks at the mills, despite the previous assurances while seeking loan guarantees by FSC, that they will improve on the mill efficiency.

            Alternative Livelihood Project (ALP):  Mr. Deputy Speaker, Sir, this is a good idea, yet a better idea would have been to assist farmers with grants and encourage them with inter-raw cultivation, first with Alternative Livelihood agro-products, until the Government sets the infrastructure and arrange ready markets for goods produced in large quantities.  This would have been another step forward to control the indiscriminatory burning of cane because growers will be using inter-raw cultivation, as well as trash.  It will also enrich the soil, stop soil erosion, help control weed and retain moisture - assisting farmers in so many ways.

            Government should immediately look at making socio-economic units in places like Savatu in Nadarivatu.  Factors like natural resources, topography, river systems, cultural conditions and agricultural potential, signals this area to be economically potential.  I have seen that $10,000 is allocated, but I am not sure where it is directed toward that, however, it is not sufficient if it is for assisting the farmers there. 

            Expected services cannot be delivered on the ALP, especially in Tavua as the Tavua Office does not have any vehicle, nor a telephone or seed material for farmers, despite listening about the ALP for the last three years.  They have not even started getting the seeds.  After farmers prepare their land, they need the seeds, so we started looking for them.  Is this a sign of a progressive Government?

            Mr. Deputy Speaker, Sir, due to insensitivity in the past, we are experiencing regions either being left undeveloped or underdeveloped, or simply left idle.  The land issue has already done the damage and the sons of the poor farmers have moved from farm lands, seeking white collar jobs.  The less educated are also not willing to labour on the fields, resulting in soaring unemployment.  My constituency is already experiencing the result of gross negligence by the Government, and the future will reveal that many areas in the country will either remain under-developed or undeveloped.

            Mr. Deputy Speaker, Sir, the increase in the price of building materials is a further burden to those living below poverty line and squatters.  Even if the Government relocates those people, building a decent house will be beyond their imagination. 

            Also, Sir, the increase in allowances from $30 to $60 for one group of assistance seekers, is discriminatory.  This 100 per cent increase should have been across the board, meaning, to cover all the assistance seekers because a person who may have been given $30 may be for two people or a single man, but $100 was given to a family of three.  If you are increasing for one group, from $30 to $60, how can you justify the other one?  We are already receiving $60.  The need for housing has increased in the Tavua area, and I hope that the Ministry will adequately address the concerns of the poor.

            Roads:  Mr. Deputy Speaker, Sir, the problem of roads is before us and it does not make much sense in spelling that out every year.  I only want to remind the Ministry that no one in this country is at ease with the road conditions.

            Police Force:  Mr. Deputy Speaker, Sir, given the nature of the work handled by the Police, their budgetary allocation should constantly increase, like in this Budget.  The Police should be well-resourced, so that they can diligently execute their responsibilities.  Tavua Police Station needs another good vehicle, and that should be taken into consideration by this Government, in view of the wider area that they serve.  Had there been another vehicle, perhaps the money that was stolen from me could have been located then. 

            Ministry of Health:  Mr. Deputy Speaker, Sir, if I ask the honourable Minister to eradicate all the odds and bring about changes overnight, it would mean nothing but a dazzling ostentation.  Nevertheless, I cannot leave this Ministry of essential service and an important Ministry, as it is in a state of mess. 

            Sir, I cannot rule out nepotism, lack of medical supplies, lack of accountability, negligence and poor services in the hospitals.  Constant visits by Ministers and regular consultations with the public on the services rendered may bring about some changes.  From the budgetary allocation, I would urge the honourable Minister to give a thought on the provision of ambulance services.  There is an ambulance in Tavua Hospital, but in a very bad state.  Perhaps, the Ministry should allocate one for Tavua, in view of Tavua taking care of Nadarivatu and other secluded areas.

            Sir, the Tavua Hospital needs an x-ray machine.  People are forced to go as far as Lautoka to get an x-ray done.  Also, the frequency of check-ups for diabetes, cholesterol, et cetera, should be increased to at least, two days in a week.  Doctor shortage is a problem, which the honourable Minister should address in the immediate future.

            Mr. Deputy Speaker, Sir, nature does bring about changes.  There was a time when people used to walk long distances without shoes, but it is different now.  As we progress, there is a need for material fulfilment.

            Sir, water is a basic necessity of life and people in my constituency do face difficulties with this need.  Tavua is a drought-prone area, and is already facing the problem.  The boreholes and wells in the area have dried up.  People are experiencing lots of difficulties and I ask that Tavua be declared an emergency zone, instead of urgency.  I have already written to the District Administrator to start the emergency water supply.  People have to travel long distances to fetch water, and there is a danger of losing livestock. 

            I do acknowledge the developments that have taken place, therefore, giving relief to so many, but these should not stop us from addressing new problems confronting the society.  The sewerage system construction, as alluded to by the honourable Minister for Public Utilities and Infrastructure the other day, I am happy with that.  However, there are speculations that the people of Bangladesh will be removed, but I would urge if thought be given, to subdivide the same area into lots. 

            Mr. Deputy Speaker, Sir, Vatukoula and Tavua lacks recreational facilities and I urge the Government to look into this problem, as this will keep the youth involved in sports at all times and also upgrading of their skills, instead of getting involved in criminal activities.  I have also written to the then Minister for Lands on the recreational centre for Vatukoula, but it is three years now, and people are still waiting for a reply. 

            Sir, whilst we may be happy that development is taking place on bottled water, we should be mindful of the water table that might be going down and if a research could be taken on this because people are taking advantage of the tax free holidays in Fiji, but what the repercussions would be in the near future, is also to be monitored. 

            People are fed up with traffic bookings by the Land Transport Authority (LTA).  I ask that Government look into this issue.  It sometimes results in a person's daily wages being cut because they are late to work, and they find it difficult to feed their families with their paycut.

            Sir, human society is one and indivisible.  It is like a garland, made up of different types of flowers, linked by one common thread.  The overall beauty of the garland is dependent upon the beauty of each flower.  Similarly, Sir, every facet of society is linked together to maintain the unity and solidarity of this social structure.  All spheres of social life must be strengthened and developed.

            Sir, there must be a proper ideological framework, discipline and economic stability.  The economy of a country must be sound and not the high sounding rhetoric, documented upon paper.

            Mr. Deputy Speaker, Sir, this Budget does not convince me and in view of the above statements I have made, I cannot support the Bill before the House.

            HON. RATU J. NAVAKAMOCEA.- Mr. Deputy Speaker, Sir, I rise to contribute to the debate on the 2007 Budget Address, and its related Appropriation Bill (Bill No. 20 of 2006).  At the outset, Mr. Deputy Speaker, Sir, I declare my full support for the 2007 Budget.

            Mr. Deputy Speaker, Sir, I thank the honourable Minister for Finance and National Planning, his staff and members of the Cabinet Sub-Committee on the Budget, for the tremendous effort in preparing and delivering the 2007 Budget.

            Sir, the 2007 Budget is strategic, entrepreneurial and developmental.  It is pro-development, because most of the expenditure allocations in the Budget are directed towards creating opportunities in the rural areas, where majority of the poor and the disadvantaged live.  It is entrepreneurial because it is innovative and is directed to raising investments and facilitating private sector growth.  It is strategic because it is the best Budget that can be delivered, given our current economic conditions.

            However, Sir, it is most intimidating to note that criticisms levelled at the Budget as "lazy, regressive, anti-poor, lack lustre, et cetera".  Mr. Deputy Speaker, Sir, those who criticise the Budget either do not know the underlying principles, rationale and framework upon which the Budget has been formulated, or are simply plain ignorant.

            I see many positive aspects of this Budget, in terms of expenditures and revenue measures.  However, Mr. Deputy Speaker, Sir, the Opposition have been totally blinded by the increase in VAT to 15 per cent.  The VAT issue has apparently overtaken them over the many positive aspects of the Budget.  Without the VAT increase, there would have been more positive support to the Budget.  However, the VAT increase is the most effective means by which to raise revenue to pay for the delivery of goods and services and remaining with our target net deficit of two per cent of GDP, given our current economic conditions.       

            Mr. Deputy Speaker, Sir, preparing the Budget is no easy task and one cannot please everyone.  The honourable Minister for Labour and Industrial Relations said that in his many years in Parliament, he has not seen a perfect Budget.  This is indeed true, because you cannot make everyone happy, and call it a perfect Budget.  Some sectors will gain while some sectors will lose.  Budget setting is a balancing exercise on all fronts.

            Sir, the 2007 Budget theme "Partnership for Sustained Growth" encapsulates the direction embarked upon by the Multi-Party Government to achieve our national vision of "a peaceful and prosperous Fiji", as contained in the nation's new Strategic Development Plan (SDP) for the next five years. 

            The 2007 Budget is drawn from the strategic priorities in the SDP, which captures both the SDL and Labour Party Manifestos.  The SDP had been endorsed by all stakeholders during the last National Economic Summit.  Sir, I would have expected our colleagues from the Fiji Labour Party to be more positive in their contributions towards the debate on the 2007 Budget, in view of their involvement in its formulation in the Multi-Party Cabinet.

            Despite the stance taken by the Opposition, I am indeed encouraged by the sentiments expressed by the honourable Minister for Labour and Industrial Relations, in that he has never seen a perfect Budget given our circumstances.  I agree with the honourable Minister that critics should not consider the 2007 Budget in isolation, but in tandem with the SDP and the manifestos of the SDL and FLP.

            Mr. Deputy Speaker, Sir, the 2007 Budget sets the platform for achieving Government's Medium-Term Strategy of maintaining stability and sustaining growth.  The 2007 Budget reiterates the need for amicable working partnerships to achieve strategies and priorities, which are necessary to maintaining stability and sustaining growth.  This Government has begun a new era of working in partnership, as the honourable Minister for Finance and National Planning stated in his Budget Address.

            Sir, Government ensures that all sections of the community are engaged in matters of national importance.  This is only fitting, as it is this same community that has given us the mandate to lead the nation through the next five years.  Partnerships are about shared and collective responsibilities.  We must act responsibly by informing the people and communities that have given us the mandate to lead, the truth and positives about the 2007 Budget.  

            Mr. Deputy Speaker, Sir, Government will be guided through these five years by the SDP 2007 to 2011, which will be presented by the honourable Minister for Finance and National Planning in the current sitting of this august House.  To remain focused on our medium-term goals, Mr. Deputy Speaker, Sir, hard decisions will have to be made now when allocating our limited resources.  Some sections of the community will gain and unfortunately, some will lose.  That happens everywhere.  It is an economic fact.  It is a fact of life.  However, for those who gain, can more than compensate the losses of others, then society, as a whole gains.

            The 2007 Budget is about this, Mr. Deputy Speaker, Sir.  It is about getting winners to help others through the beginning of these five years.  It is about providing the right environment for winners, the private sector businesses and individuals to flourish and make profits and income, and Government taxing them through VAT and redistributing that income through targeted expenditure allocations to help the losers.  Mr. Deputy Speaker, Sir, a loser cannot help a loser.  It is about everyone, public and private, working in partnership to reach our medium-term goals.  At the end of this five year term, Government anticipates, and I am confident that there will be many more winners, and there will be many more income and wealth to share and distribute to everyone.  That is our vision of a peaceful and prosperous Fiji.

            Mr. Deputy Speaker, Sir, peace in our country can only be achieved if the rule of law is respected by all citizens and institutions of Government that:

            (a)      we provide our under-privileged communities with basic services and opportunities for them to meet their livelihoods and basic needs;

            (b)       we find consensus on a land lease system that promotes fair rental and the entrenchment of land and qoliqoli property rights for our indigenous communities and security of tenancy for our people who lease land;

            (c)       we espouse tolerance and understanding towards our diverse culture, custom and religion in our society; and