PARLIAMENT OF FIJI

PARLIAMENTARY DEBATES

HOUSE OF REPRESENTATIVES

DAILY HANSARD

MONDAY, 20TH NOVEMBER, 2006

The House resumed at 9.40 a.m. pursuant to adjournment.

MR. SPEAKER took the Chair and read the Prayer.

PRESENT

All Members were present, except the honourable Member for Suva City Open (M. Weleilakeba), the honourable Member for Cakaudrove West Provincial Communal (N. Nawaikula), the honourable Minister of State for Agriculture, Alternative Livelihood and Outer Island Development, the honourable Minister for Commerce and Industry, the honourable Minister for Agriculture, the honourable Minister for Curative Health Services, the honourable Minister for Labour and Industrial Relations, the honourable Minister for Environment, the honourable Minister for Public Enterprises and Public Sector Reform and the honourable Minister for Fijian Affairs, Lands and Provincial Development.

MINUTES

That the Minutes of the sitting of the House of Representatives held on Friday, 17th November, 2006, as previously circulated, be taken as read and be confirmed.

COMMUNICATION FROM THE CHAIR

MR. SPEAKER.- Honourable Members, before we proceed on the Resumption of Debate on the 2007 Appropriation Bill, 2006, I would like to remind you again on the three Standing Orders that are important in our deliberations. Standing Order 40 on pecuniary interest, be mindful if you are speaking on the motion, if there is some peculiar interest, let us know in advance. Standing Order 41 on relevancy - let us confine ourselves to what is contained in the Bill before the House and Standing Order 43 on reference to others.

PAPERS LAID ON THE TABLE

Opportunities for All 2005 - Report on the Implementation of Affirmative Action Programmes Under the Social Justice Act 2001 (Parliamentary Paper No. 83 of 2006)

Fiji Investment Corporation Limited Annual Report 2005 (Parliamentary Paper No. 85 of 2006)

2007 APPROPRIATION BILL, 2006

HON. RATU M.Q. SAUKURU.- Mr. Speaker, Sir, I rise to support the 2007 Budget, the very first for this nation's first Multi-Party Government, presented by the honourable Minister for Finance and National Planning on Friday, 3rd November, 2006.

Firstly, Mr. Speaker, Sir, I would like to thank the honourable Minister, for the vision of effective partnership across all our development stakeholders, in the various sectors and in our different communities. The theme "Partnership for Sustained Growth," when put into practice, has real potential to move the country forward, to better and brighter days.

I fully support the honourable Minister's desire, to consolidate the respectable gains we have made in our recovery and reconstruction, after the social and economic upheavals of 2000, and to meet the national challenges, which lie ahead.

What we need first is to maintain our stability, by supporting our democratic processes, especially the promotion of freedom and goodwill, and respect for the law.

Mr. Speaker, Sir, at the opening of the new Parliament early this year, His Excellency the President of the Republic of the Fiji Islands, appealed to all our citizens, to give their strong support to representative governments and join him in his firm belief that it would guide this nation towards prosperity, security, peace and unity.

This is assured when we, as the leaders of the people who elected us to this august House, take only those decisions that will improve the welfare and interest of our people, what is best for our country.

In this period of some anxiety, our people want more than ever to be part of something new, beyond the ordinary leaders who will be their example, where each of us should honestly be able to say, as Christ had said 2000 years ago and I quote; "follow my footsteps".

Mr. Speaker, Sir, there have been much negative comment, predictions of gloom and misery, but considering how much we had lost our society, our nation, has come a long way. I believe that with our united resolve, to sustain the right environment for industry and development, our continued growth can exceed projections for next year, as we have seen for this year.

We must agree that, overall, we can already discern our brighter future, when we look beyond ourselves and our own personal interest, but this time, this opportunity must not be allowed to slip from our hands.

Mr. Speaker, Sir, I congratulate the last Parliament and the SDL-Coalition Government, and all our stakeholders and our communities, for the peace and stability we have enjoyed, since the 2001 General Elections. We must maintain this at all costs.

We still have to navigate some difficult waters. Fortunately, there is growing interest and excitement in new opportunities, to engage with each other, where it was normal to carry on separately.

Mr. Speaker, Sir, this is our best chance, to connect in our vision of a more united future, and to heal and progress together. Our people look to us for leadership in the development of representative democracy. This Multi-Party Government must therefore, be allowed to take the country to promised new heights, something which a deteriorating fragmented society can never achieve.

Budget Increase: Mr. Speaker, Sir, I had hoped for some significant increases in the budgetary allocations for my Ministry's programmes and activities, but I am happy with the additional funds we have received. We will fully achieve our new targets and will continue to sharpen our systems and strengthen our collaboration with other agencies and the community.

Department of Multi-Ethnic Affairs: Mr. Speaker, Sir, the Ministry will continue to provide support for the socio-economic development of rural and disadvantaged families in the Indo-Fijian and minority communities. This will encourage the fuller participation of all our communities in our nation's development.

Scholarships: Mr. Speaker, Sir, the Multi-Ethnic Affairs Scholarship Scheme is part of the Government's Affirmative Action Programme. It assists students from disadvantaged families in the Indo-Fijian and the minority communities, who wish to pursue tertiary training towards employable qualifications.

We will continue to ensure that the most deserving cases, win our scholarship awards. They will attend training programmes, which can address our national needs and help members of our more disadvantaged families to gain employment.

Applications received for next year's awards are being processed. Sir, beginning next week, we will conduct interviews around the nation for some 2,500 students. Our Scholarship Committee will finalise the list of awards early in the new year, after results of external examinations are received. We will be sponsoring more students for a wider range of courses.

Mr. Speaker, Sir, I call upon all leaders and members of the public to assist us in ensuring that our poor and disadvantaged families are properly served.

We offered new scholarships in the first and second semester this year, so that we can support the 1,943 students under our scheme from the $4 million budget allocation. Soon, 554 of them will graduate and their places will go to new scholarship holders. With a higher budget of $4.15 million, the Ministry will provide just over 660 new scholarships early next year.

RATU M.Q. SAUKURU.- Our total will jump to more than 2,000 students in Semester One of 2007. We are consciously expanding opportunities to our families under this programme, and are again on track to assist at least 5,000 families when the term of this Multi-Party Government comes to an end.

HON. RATU M.Q. SAUKURU.- Community Self-Help Development Programme: Mr. Speaker Sir, the Ministry is proud of and will build on its achievement under our Community Self-Help Scheme. We funded over 1,500 development projects in every district over the last five years. This year, another 332 projects were assisted with our $1.4 million budget allocation. Ours are small scale projects, but we focus on basic needs.

Sir. this year's 86 water projects, for example, worth a total of $409,712, have improved the lives of thousands of families in our rural and outer islands. Boreholes, reservoirs, water tanks and piping systems, which have been constructed jointly with health and water supply officials, have improved access to better drinking water, especially where a large section of our population have, for years depended on unhygienic sources.

The Ministry will handle proposals next year for other community amenities to raise the living standards of our people in less developed areas, as well as establish a greater sense of community. With the $1.6 million budget allocation, the Department will assist some 340 projects next year. My officials will be meeting with community leaders and officials in the districts over the next few weeks, to work out development priorities in line with those of the new five year Strategic Development Plan. This will focus our application of development funds, and strengthen our collaboration with agencies and the community.

HON. RATU M.Q. SAUKURU.- Culture: Mr. Speaker Sir, our cultural enhancement activities are also part of the Government's Affirmative Action Programme under the Social Justice Act. They promote participation by the Indo-Fijian and minority communities, in quality cultural performances and help in the protection and management of their cultures for current and future generations.

In addition to the six existing centres in Suva, Nausori, Ba, Nadi, Labasa, Savusavu and recently in Rakiraki, the Ministry will collaborate more closely in the new year with a wider range of community organisations and educational institutions. Our aim is to apply the $170,000 provision to promote greater exposure and celebration of our cultures, and foster stronger national identity.

Mr. Speaker Sir, our multi-cultural and multi-religious country, needs investment in culture promotion. The Ministry will continue to play its part in promoting the following:

HON. RATU M.Q. SAUKURU.- I cannot stress this enough, that religious organisations, cultural groups and community leaders, must join the Government in building these foundations in individuals and families for a more successful society.

National and District Advisory Councils: The two National Advisory Councils for the Indo-Fijian and minority communities, chaired by the honourable Prime Minister and Minister for Sugar Reforms, link our different communities directly with the Government at national level. They were established in late 2001 and provide advice on policies that address the needs and concerns of the people and the nation as a whole. They give an excellent forum for Government, to gather first hand information on important development issues.

Mr. Speaker, Sir, the community is also directly involved in managing their own developments, through 18 District Advisory Councils. There were previously 17 of these, and increased this year, when the boundaries of the District Advisory Councils were aligned with those of provincial councils.

The second round of meetings for this year (the first under this new arrangement) has just been completed. I am pleased to report that the Indo-Fijian and minority communities are working together ever more actively, to address their needs in their respective areas. We have also received an enormous amount of encouragement in the participation of provincial council officials.

As intended, there will be more active collaboration across all systems in the new year, to promote inter-ethnic cooperation, especially on common issues of interest and shared development initiatives.

National Reconciliation and Unity: The Department was established as a Ministry in September 2000 to:

(a) promote racial harmony and social cohesion amongst our diverse communities for peaceful, as a pre-condition for political, social and economic advancement;

Mr. Speaker, Sir, our goal is to deepen responsibility and cooperation, to strengthen peaceful relations between and among ethnic, religious and political communities with a history of mutual hostility. With the important contribution of other stakeholders, sources of tension and conflict, and potential for peace-building, are understood and applied.

Mr. Speaker, Sir, I wish to stress again that this is a complex and long term undertaking. It depends on the nature of the conflict, the strength of the State's democratic and legal institutions, the commitment of community leaders to national reconciliation and access to dispute resolution mechanisms.

Sir, such efforts elsewhere in the world, have taken several generations and remain, in the opinion of many, an unfinished, ongoing process. What is critical is our resolve, because we believe in the long term outcome. At the outset, the honourable Prime Minister, as Minister responsible, had rightly said that, "Reconciliation is not for the fainthearted". This is because what needs the most courage and strength is the humility that is needed.

Mr. Speaker, Sir, Mahatma Gandhi once said of Christ's advice of "giving the other cheek", that we should, "be willing to take a blow, several blows, to show that you will not strike back nor will you be turned aside, and when you do that, it calls on something in human nature, something that makes his hatred decrease and respect increase."

HON. RATU M.Q. SAUKURU.- Mr. Speaker, Sir, we must develop our capacity to address claims of discrimination and injustices. We must set up more permanent structures to successfully address differences and division in future. An allocation of $100,000 has been earmarked for this important undertaking.

Promotion and Awareness: Mr. Speaker, Sir, Government declared 2006 as the National Year of Friendship, to promote solidarity for our common future.

Mr. Speaker, Sir, the Ministry will continue to work with official agencies, and all sectors of our population, to create the environment conducive for open-mindedness and acceptance so that trust between and amongst individuals, and between and amongst communities, can be rebuilt.

The theme selected for this year: "Walking Together in Friendship" and the slogan "Embracing our Shared Future" highlights the importance of unity in our diversity, joining hands and striving for a shared future that transcends the barriers that divide us.

Mr. Speaker, Sir, the Ministry will also continue with our efforts to promote national patriotism in the use of national symbols like the national flag, the national anthem and national pledge.

The Ministry, Sir, will process proposals from consensus building consultations, to foster greater understanding amongst our religious communities and to encourage dialogue and cooperation. We have been provided $100,000 to continue our joint efforts with the media and other partners.

Fiji Week: Mr. Speaker, Sir, we again celebrated Fiji Week this year, which coincided with the 3rd Melanesian Arts Festival. We were able to celebrate our diverse cultures and forge friendships between ethnic communities and development agencies.

Government has allocated a budget of $200,000 for next year's celebration as this must remain an important event in our nation's annual calendar. We must and will continue to promote its historical significance, to foster a greater sense of national identity across our land.

Father Michale Lapsley/International Partnership: Mr. Speaker, Sir, the wounds of our divided past are slowly healing. There remain deep-seated feelings of hurt and hardship. Through a partnership agreed by two Prime Ministers, honourable Helen Clark and honourable Laisenia Qarase, between the Government of New Zealand and the Government of Fiji, a series of visits were organised for Father Michael Lapsley from the Institute for the healing of memories in South Africa. His work is in response to the emotional, psychological and spiritual wounds inflicted on nations, communities and individuals by wars, repressive regimes, human rights abuses and other traumatic events or circumstances.

Mr. Speaker, Sir, through his own experience of living in exile, serious injury through state sanctioned violence, listening to the stories of survivors he has counselled, Father Lapsley stresses the importance of giving people a space in which their experiences could be told and acknowledged.

Twice last year and again in July to August this year, Father Lapsley held meetings and training sessions with our political leaders, religious leaders, community and student leaders in all divisions in Fiji. He is here again, to continue this useful collaborative effort. The vitality in his approach lies in the interactive nature, and the emphasis on the emotional and spiritual, rather than intellectual, on understanding and interpretation of the past. Sir, these processes prepare the ground for forgiveness and reconciliation between people of diverse backgrounds, races, cultures and religions.

We acknowledge with appreciation the substantial and continuing support of the Government of New Zealand, to continue Father Lapsley's visits through to next year. My Ministry is deeply grateful for this unique contribution to Fiji's journey of national healing.

Peace, Stability and Development Analysis: Mr. Speaker, Sir, the Department of National Reconciliation and Unity, in partnership with UNDP and the Ecumenical Centre for Research, Education and Advocacy (ECREA) collaborated on a joint national initiative called Peace, Stability and Development Analysis (PSDA) for Fiji.

Mr. Speaker, Sir, we deeply appreciate the support by the Australian Government for this important development research project. This is a participatory process for development planning that uses a peace-building and conflict prevention approach supporting the vision for "A Prosperous and Peaceful Fiji" by:

Mr. Speaker, Sir, this Project, which is now in its final phase, draws on established good practice for multi-stakeholder planning processes practiced elsewhere in the world and recognises our distinct realities. The initiators invested time and energy to adapt it to our needs and context.

Our greatest challenge is the creation of a roadmap for our better future, which we want our children to inherit. The "framework for action", which has been proposed will be developed with relevant State and non-State actors.

Initiatives of Change/Moral Rearmament: Mr. Speaker, in collaboration with the international affiliations of the initiatives of change movement and the Government of New Zealand, a one-week conference began last Friday at the University of the South Pacific that includes delegates from Romania, United Kingdom, New Zealand, Australia, United States, Indonesia, Holland and other Pacific Island States. The theme "Can Fiji and the South Pacific surprise the world? New hope from Fiji" is our challenge.

Initiative of change is a worldwide network of people who have started with themselves to bring the changes they want to see in the world around them, starting with the readiness of each person to live according to the voice of conscience.

It is an attempt by ordinary people to search for "what is right" in every situation, rather than "who is right", making restitution for past wrongs and letting their life to be used for an unselfish purpose.

Mr. Speaker, Sir, before I go on to my concluding remarks, I just want to remind honourable Members, Leader of the House, Leader of the Opposition and the leader of the Fiji Labour Party, that at this junction, I think it is about two days to go. I look at my friends and see only two here.

Ih log bhaiya long kaha mageh jawo? Mago baire kadero, tora acchase deko. Ih log nahin mage jaye, humlog sangheh mago raho.

Honourable Leader of the House and the honourable Leader of the Opposition, I am sure that most of us from the Ba Province, tum long mago kushi raho ki panch Ministers idhar hain. Humlog yeh nahin mago ki humareh bhaiya log ghreh jawo. Humlog mago yahn sangeh baitho.

Khali panch mahina humlog ke saath is office mein baitho. Hum mago ki ih log aur panch saal yahn baitho. Khali dwi roj baki hain. Ih log ke parivaar abhi sabere TV mein dekhai jane wali bahas ko dekhtein hongeh. Nahin mago gatai maro ihlogh ke. Ih log sako jawo Phasi lagawo. Mago raji raho aur mago sanghe baitho. Hum nawa hain yahan par, han, hum yekdam nawa hain. Woh log rakkho tab ih logh sako yahan raho. Sanghe jawo, han nahin mago badali karo. Ih log mago sanghe baitho. Tum log nahin mago yahan awo. Khali ih log yahan rahein.

Finally, Mr. Speaker, Sir, I agree with many who have highlighted our potential as a society and nation for peace building. We will step up our work, to collaborate with community groups in our process of social transformation.

Sir, we salute our people, many will remain unnamed, for what we have achieved, and the greater hope they have established. From the reluctance and some overt hostility six years ago, there is a widespread commitment and participation in our quest to build a peaceful and progressive society.

Our social and religious leaders, those from our intellectual community, and now with a real opportunity in our multi-party arrangement for political leaders, have embraced our vision of a united country. It is time now to institutionalise best practice towards inclusive governance, peace-building and sustainable development.

Mr. Speaker, Sir, my Ministry needs everyone's participation, especially from this honourable House, in promoting greater multi-ethnic solidarity and progress for all.

Sir, on constituency matters, I do not want to repeat what other honourable Members from the Ba Province have already said because there are so many in this House and we have the same problems. The only thing is that I want to thank the Government for what they have done in our Province of Ba, starting from Tavua to Nadi, the interior and the Yasawa group.

Vina valevu sara Momo na Speaker, kwa levu na va vinavina, qi sa mata vadeitakinia koto na ledu were ni Bose nikua, mu sa wilikia na pepa, mu rogo ena nai rajio na vei vajeitaki na veitokoni ena yasana o Ba. Lequ tata koto balejia na yasana o Ba, ki sa okaji ru koto ke na Leader of the Opposition, o kora taucoko na Communal, na Open seats, kora taucoko mai na Fiji Labour Party, o kora na lewe ni yasana o Ba, you are from the Ba Province. Sa leimami kusu koto ni veitokoni. Ma koru tamu tokonijia na Budget, qi na dua muni na vakayataki jia na veivuke vua. Mami sa vavinavina valevu na veikwa sa tara na Matanitu ena Yasana o Ba. Sa levu sara na vei mataicola e no ke. Qi sa mata vadeitaki boto na veitokoni na veivakadeitaki vua na Momo na Prime Minister, me kodataki na lima na yabaki sa oti, ki na lima na yabaki muni koya, mami sa tola koto ena vuku ni gauna vina esa tau koto ena neimami mata, mami na tokoni koto na Matanitu esa la. Me kodaki na honourable Leader of the Opposition, o koya me luve ni Yasana o Ba, na leader of the Fiji Labour Party, who is also from the Ba Province, and all of us here, we will support the Budget.

MR. SPEAPER.- Honourable Members, at this juncture, I wish to acknowledge the presence of visitors in the gallery, in particular, the senior officials from the Ministry of Health.

HON. U. NARAYAN.- Mr. Speaker, Sir, before I begin, I need your guidance. I am also supposed to speak on behalf of the honourable Minister for Curative Health Services. The time allocation, I see, is only half an hour, will I be given another opportunity or shall I continue with added times.

HON. U. NARAYAN.- Mr. Speaker, Sir, I rise to contribute to the 2007 Budget presented in this august House by the honourable Minister for Finance and National Planning on Friday, 3rd November, 2006. The 2007 Budget reflects the effort by the Government to boost economic growth and sustaining confidence for both local and overseas investors, to expand and establish business ventures in Fiji, together with much needed giveaways and incentives to improve and better the life of all communities, while maintaining social and political stability.

Mr. Speaker, Sir, my response will be in three-fold today. Firstly, I would contribute to the Ministry of Primary Preventative Health budget. Secondly, I will speak as the Acting Minister for Curative Health Services. Thirdly, I will speak on the much talked about impact of VAT on the poor and measures to overcome the impact.

The 2007 Ministry of Health's budget reflects the continued commitment and effort by the Government to improve health facilities and services, so that the citizens enjoy the best. There are also incentives given to business ventures to improve health facilities and better the lives of all communities.

I believe, Sir, that the Ministry has an enormous responsibility in realising this vision and is committed to its attainment through a healthy and productive population. The Ministry of Health's goal is to provide a health care system that is accessible, affordable, responsive, equitable and of high quality to the people. In doing so, the Ministry of Health will address the strategic themes of the health services, protection of health, promotion of health, productivity in health and people in the Ministry of Health, to achieve its major outcomes with output linkages to the Government's priorities in the Strategic Development Plan of Government.

The overall increase of the budget from $144,968,800 in 2006 to $155,370,100 for 2007 is welcomed. However, there is still need to increase it further to effectively address the numerous upcoming emerging and re-emerging health challenges.

Mr. Speaker, Sir, the need for good health is an important component of the nation's socio-economic development strategy, and the Ministry of Health recognises that people's lifestyles, living standards, quality of life and the conditions of environment in which they live, work and play, strongly influence their life. Therefore, I would strongly urge the critics to listen very carefully to the facts and figures I would be presenting in my address.

The Ministry of Health's Strategic Plan contains and outlines key themes, strategies and programmes in health for implementation by the Ministry of Health. Mr. Speaker, Sir, Government is well aware of the importance of a healthy society, as just mentioned, and consequently has just allocated a total of $147,062,300 in 2006 for the Ministry of Health to deliver its health services for the poor of this country.

The Ministry of Health's budget stands at 9.5 per cent of the national budget for 2006 and it remains at 2.9 per cent at the Gross Domestic Product (GDP) that Fiji spends on health.

I also wish to thank the honourable Minister for Finance for a reasonable increase of $5 million in the Ministry of Health's budget for 2006. While the Ministry of Health has requested for a higher increase in its budget allocation, we are nonetheless pleased that key areas have been accommodated and that by working smarter, we are certain that we can still achieve a reasonable level of health service provision.

Mr. Speaker, Sir, our dedicated health workers will ensure that policies and budget commitments, as set out in the 2006 Budget, are fully implemented during the year. We will also ensure that we have efficient and effective monitoring and control systems in place so that we can manage our health budget prudently.

The Financial Management Information System (FMIS) will also allow managers to monitor their expenditure against budgetary allocations, and to more accurately identify the costs of delivering health services on a daily basis.

Mr. Speaker, Sir, I must say that our nation is not as healthy as we would love it to be with 80 per cent of our deaths attributable to lifestyle or Non-Communicable Diseases (NCDs) and 70 per cent of these due to cardiovascular diseases and more than 50 per cent of these deaths occur in the age group of 45 to 59 years.

The prevalence of Diabetes and High Blood Pressure has increased significantly since the last surveys in the 1980s. In the latest Fiji NCD Steps Survey 2002, the prevalence of Diabetes was 16 per cent and High Blood pressure was 19 per cent for the age group between 15 to 64 years that was surveyed. Cancer and heart disease rates in Fiji have more than doubled in the last 10 years.

These statistics are inextricably linked with a lifestyle that our population has adopted over the years, the so-called "Western lifestyle", which differs in a lot of ways from our Pacific way and has come with development, but there is a need to educate our people on ensuring we are living it the healthy way.

The main lifestyle issues that one needs to be aware of centres around the four main risk factors for NCD, which are poor nutrition, physical inactivity, smoking and alcohol/kava abuse. Researches have found that in the absence of these risk factors, coronary heart disease is a non-issue in any community.

Sir, 65 per cent of the population surveyed takes less than one fruit serving (quarter of a small pawpaw) per day and only 20 per cent of our population do physical activity at leisure. The overall proportion of overweight in the Fiji population is 29 per cent and an additional 18 per cent, who are obese and there was significant maximal increase prevalence of obesity up to the age of 30 years in both gender groups.

The 1999 Global Youth Tobacco Survey in Fiji shows that the prevalence of smokers in the population is 37 per cent and 43 per cent currently do so with 22 per cent of youths beginning before the age of 10 years.

For alcohol use, the prevalence was 24 per cent and 45 per cent currently do so with 73 per cent of these binge drinking. Prevalence of kava drinking was 65 per cent.

There is a great need to lower these figures because as the saying goes, "the risk factors of today become diseases of tomorrow". The call is for the nation to wake up to this reality and divert some undivided attention towards the improvement of lifestyle in individuals and communities as the mentioned risk factors are all modifiable.

Although it may be termed lifestyle and assumed to be under the control of individuals, experiences show that lifestyle change cannot happen in individuals without the accompanying environmental changes in the community and nation that would enable each individual to make healthy choices. Unfortunately, children do not have much control over the environment they are brought up in and most of these lifestyles are adopted from early childhood. The community and nation in this regard have a responsibility to bring children up in an environment that enables the children to adopt a healthy lifestyle and adults alike to make healthy choices.

At national level, let us re-look at our policies and efforts on the exposure of our children from conception to tobacco smoke until adulthood, the level of physical activities in schools and environment for such in communities, the type of snacks in school canteens and dietary foods we allow onto our markets and so on.

NCDs are preventable, as the main risk factors identified can be addressed individually or corporately and the responsibility for prevention lies with the people and not solely with health authorities.

Mr. Speaker, Sir, for 2007, Government has allocated $260,000 for NCD programmes, the same amount as in 2006 which was increased from $60,000 in 2005, and will support the implementation of the National Strategic Plan for Non- Communicable Disease 2005-2008. The multi-sectorial National NCD Committee monitors and coordinate these activities as well.

On Oral Health, the completion of the National Oral Health Survey 2004 provided the baseline statistics and information to develop the National Oral Health Policy, National Oral health Strategic Plan and develop the new community oral health clinical and community packages for strengthening oral health services in Fiji. Further development in the oral health clinical services is also earmarked for 2007

On National Blood Service, Mr. Speaker, Sir, the Ministry of Health is appreciative of the role played by Fiji Red Cross in the collection and distribution of blood to hospitals for the years up to 2004. Following the international policy of Red Cross with regards to blood safety, this vital service has been re-organised and handed over to Government for its continuation in 2005. The Ministry of Health with the same vision, goals and targets on blood safety, collection, storage and patient administration has established a new National Blood Service this year. Divisional offices for blood collection have been established and Government has allocated $190,000 in its 2007 Budget for ongoing work in this vital area of health service.

Mr. Speaker, Sir, on National Food and Nutrition Centre and National Nutrition Survey, analysis of the findings of the National Nutrition Survey 2003 has been completed. The Ministry of Health is pleased with the support of our key partners in this national venture. The survey, coordinated by the National Food and Nutrition Centre (NFNC) yield interesting but troubling results. If I may be allowed, Sir, I would like to share a few key findings of the survey;

(a) The national low birth weight percentage remained at 10, which is similar to 1993.

(b) Obesity is a growing problem in our country today. The survey results showed that;

(i) 12.9 per cent of our children under four years are overweight compared to 4.9 per cent in 1993; and

(ii) Similarly 15.3 per cent of our children of ages five to nine years are overweight as compared to 5.9 per cent in the 2003 survey;

(i) Vitamin A deficiency is noted to be present in 13 per cent of our population; and

(ii) Zinc deficiency, which is noted to be as high as 39 per cent in our women is a public health concern.

Sir, for the work of the National Food and Nutrition Centre, Government continues to allocate a budget of $290,000, which was in 2006.

On Rural Local Authorities, Mr. Speaker, Sir, one of the components of Public Health is the Environmental Health. The work of the Central Board of Health, Rural Local Authorities and Environmental Health Offices is an ongoing programme that continues to be supported and funded by Government. The Environment Health Programme covers a whole range of activities, including:

Sir, Government continues to support the work of the 17 Rural Local Authorities nationwide through the provision of staff and funding, to facilitate the work of the local authorities. The Ministry of Health's 2006 Budget had provided an increase in the Rural Local Authority allocation from $80,000 to $130,000, to support the work of the Rural Local Authorities and its governing body - the Central Board of Health.

I also thank the support of our hospital boards throughout the country, especially their initiative in encouraging and supporting our Government's private sector partnership.

Health Promotion: Mr. Speaker, Sir, the Ministry continues to promote and implement healthy settings, using the healthy settings approach and the healthy island concepts. The National Health Promotion Council and the Divisional and Subdivisional Management Teams co-ordinate and facilitate the various health promoting activities. The continued health promoting messages to seek positive behavioural changes is an ongoing challenge and the utilisation of the M-RIP concept, in that, the health messages are to be Massive, Repetitive, Incentive and Persistent have proven to be successful as shown during the mass measles campaign that was conducted in May this year during the Measles outbreak in Fiji.

Family Health Programmes: Mr. Speaker, Sir, the numerous Family Health Programmes, include:

These are some of the ongoing programmes that also utilise Government budget provisions.

A lot of successful achievements have been recorded in this area. Fiji now has 13 baby-friendly hospitals, declared by the World Health Organisation (WHO) and United Nations International Children's Emergency Fund (UNICEF) of the 14 baby-friendly hospital initiatives in the Pacific, with Sigatoka Hospital declared as a baby-friendly hospital last week as the latest addition. Also, both the North and Western Divisions are declared baby-friendly Divisions.

Mr. Speaker, Sir, I acknowledge the support and technical assistance from WHO and UNICEF in our health programmes in that regard. The IMCI Programme continues to roll out to the North and Western Divisions this year, and further expansion is expected next year.

A specific budget lies in the child health development, although small will be providing the budgetary requirements for this. Fiji also continues to pay our vaccines and reproductive health communities, and I acknowledge the support from UNFPA and UNICEF in that regard in this programme.

Emergency Ambulance Service: Mr. Speaker, Sir, the Ministry of Health is serious with its intention to improve emergency ambulance services in Subdivisional hospitals, particularly in the Western and Northern Divisions. The ongoing work of the St. John's Ambulance Brigade for emergency ambulance and related services in Suva and some township areas, is applauded. Government had recently made a decision on the strengthening of emergency ambulance services in rural areas and for this, an allocation of $320,000 has been provided in the Budget to support this service. With this new re-organisation, the Ministry aims to produce a much-enhanced emergency ambulance services in rural areas in 2007.

Fiji School Of Nursing (FSN): Mr. Speaker, Sir, the Fiji School of Nursing has continued to maintain its supply of qualified nurses for the country and the region. The strategies in place in the recent years have become sustainable, as by September this year, all the 1,826 nursing positions had been filled. As from next year, we will begin to see the effect of oversupply, as we expect another big group graduating from the School and migration saturating, hence our annual intake is now reduced.

The nursing workforce is being reviewed where various options could be explored for multi-skilling as an approach to retention strategies, and the determination of real service needs by nurses. The Nurse Practitioners who have been in the system since 1999, have proved to be effective workforce strategies in the face of acute medical shortage.

In-Service Training: Mr. Speaker, Sir, in-service training of our health workforce is an undertaking of the Ministry, to ensure both ongoing up-skilling of our staff and staff retention. The yearly funding of $440,000 has supported in-service training of our staff, including doctors to the qualification of Masters in Medicine, Surgery, Paediatrics, Anaesthesia, Obstetrics and Gynaecology at the Fiji School of Medicine (FSM).

Sir, this funding has also supported the post-graduate training of nurses to the level of Bachelors in Science - Nursing with the James Cook University of Queensland. This level of funding has been maintained in our budget for 2006, and we expect to support the same range of training needs of our health staff.

Capital Works: Allow me now, Mr. Speaker, Sir, to turn to the issue of health infrastructure. Infrastructure development and maintenance are essential for the realisation of quality, affordable and accessible health service. Maintenance of existing health infrastructures in all Divisions are also of priority consideration.

Sir, $2 million is provided in the 2007 Budget for health infrastructure maintenance and upgrading. These infrastructure improvement works also include the training institutions such as the FSN, where work has already started on its new computer laboratory, library, clinical laboratory and the extension to its dinning hall and kitchen.

(f) repair and maintenance of Paying Ward, Accident and Emergency Unit and X-Ray Unit at Lautoka Hospital; and

(g) repair and maintenance work, new state-of-the-art scanner machine, together with site preparation and construction of the new Oncology and Cardiac centre at the CWM Hospital.

Other capital projects to be implemented in 2007 are the HIV/AIDS Centre, as there are still undiagnosed HIV positive people out there in the community.

Government has again made a budgetary provision of $500,000 in 2007 for the control of HIV/AIDS. Although this amount is still small, this specific budget allocation will be supported by other technical and funding assistance like Global Fund, SPC, AusAID, WHO, UNFPA and UNICEF. However, Fiji is the first country in the region to provide specific Government budgetary allocation for HIV activities.

Mr. Speaker, Sir, the Ministry is also proposing the establishment of the National Advisory Council for AIDS, to better coordinate all control and treatment activities for HIV/AIDS. The Council, to replace the current National Advisory Council on AIDS (NACA) is expected to be more independent with more freedom to undertake HIV control activities, and seek outside Government budgetary sources.

The $0.5 million budgetary allocation is expected to support the work of NACA, in its implementation of the five priority areas of the new National HIV/AIDS Strategic Plan 2007 to 2011.

Mr. Speaker, Sir, other notable activities of the Ministry of Health against this deadly disease HIV/AIDS include:

(a) universal access and upscaling of the prevention, management and control of HIV, including continuous care of HIV positive;

(b) establishment of three Divisional HIV/AIDS Multi-sectorial Committees in the West, North, Central/ Eastern;

(i) ongoing collaborations with other development partners and stakeholders for technical advice and funding assistance in particular WHO, AusAID, UNFPA, UNICEF, SPC and Global Funding.

Mr. Speaker, Sir, although a lot of progress have been made and achievements on HIV attained, more work is still required to be implemented. However, the main challenge is the absence of an appropriate legal framework to address legal issues with its implications such as the willful transmission, confidentiality, stigma, discrimination and human rights with responsibility.

The review of the current HIV Plan has identified gaps and other concerns that have been incorporated in the new Fiji HIV Plan, which is aligned to the SDP Plan of the Government, the Regional HIV/AIDS Strategic Plan and the Pacific Plan for the region.

Non-Communicable Diseases (NCDs): Another major health problem in Fiji, Mr. Speaker, Sir, is the ever-increasing incidence of lifestyle diseases or NCDs. Last week, we have just celebrated the Fiji NCD week, in which the national activities organisers tried to focus as a nation on the category of diseases, which mainly includes diabetes, heart diseases, high blood pressure, stroke, cancer, chronic respiratory diseases and accident and injuries, as well as oral health, mental health and suicide prevention. I believe everyone of us either suffers from one of them, or has a relative who suffers from such.

The theme for the 2006 Fiji NCD week is "NCDs the Silent Epidemic" unveils the reality that this category of diseases are stealthily robbing families of their loved ones early, particularly fathers. We therefore, need to work together in raising awareness on these diseases and collectively work towards promoting healthy lifestyles on the cost of delivering health services on daily services.

Preventative and Primary Health Care: The Ministry of Health will continue to place emphasis on the principles of preventive and primary health care as the basis of achieving and maintaining good health for our population in Fiji. Multi-sectorial collaboration and community participation as a main component of preventive and primary health care will continue to be strengthened and emphasised to empower people to take ownership and be responsible for their own good health.

Communicable Diseases and HIV/AIDS: Mr. Speaker, Sir, communicable or infectious diseases have in general, achieved reasonable control in Fiji and most of the developing world. Globally, it is acknowledged that emerging new infectious diseases such as SARS and Avian Flu continue to be a threat to developing health systems such as ours. Preventative measures against such types of infection will remain a priority for the Ministry of Health.

The multi-sectorial National Task Force on Avian Influenza or Bird Flu has been established and currently refining and collating Fiji's preparedness and response Action Plan for the anticipated pandemic.

The road map for the new International Health Regulations (IHR) in Fiji that has to be in place by July 2007, as endorsed in the 55th and 56th World Health Assembly this year is still being developed. This IHR will also allow WHO member countries to report incidences that are an international risk that poses as a threat using the criteria on the legal instruments laid out for this.

Leptospirosis, Dengue, Diarrhoeal Diseases and Typhoid are the other ongoing challenging communicable diseases that continue to make their negative impact in Fiji situation and needs to be addressed effectively. The provision of special budget lines will assist the Ministry of Health in implementing the various strategies in place. Safe water source drinking and community mobilisation in source reduction for mosquito population are some factors that needs to be tackled collectively.

Mr. Speaker, Sir, the three National and Divisional Plans that have been finalised this year include the Public Health Emergencies and Disaster Management Plan, Fiji Pandemic Influenza Plan and the Fiji Communicable Disease Surveillance and NCD Outbreak Response Plan. Strategies in these plans will facilitate the appropriate control of all the conditions above.

Mr. Speaker, Sir, Fiji had successfully hosted in March this year the largest ever health conference in our shores, focusing on the elimination of filariasis or elephantiasis. This global Conference, supported by the Global Alliance for Elimination of Filariasis (GAELF), Pacific Elimination of Filariasis (PacELF), World Health Organisation and the Government of Fiji.

The conference had definitely showcased Fiji, not only to the medical establishments, but to the rest of the world. Fiji will also have its final Mass Drug Administration this year to complete the five-year cycle of this programme.

The global pandemic of HIV/AIDS, Sir, continues to be a convoluted and multifaceted issue that is now a potential threat for Fiji and as such, requires an ongoing and multi-sectorial and collaborative response to address the numerous issues encompassing this. The completion of the new Fiji National HIV/AIDS Strategic Plan 2007 to 2011 after thorough consultations with all stakeholders throughout the nation is ready to be implemented in 2007, with the indicators synchronised with the Millennium Development Goal 4 (MDG 4).

Mr. Speaker, Sir, although the number of HIV positive cases detected in our societies may seem small, they are likely to have a significant impact in small populations like ours. In addition, the high rate of yearly increase of the disease is alarming and that must be taken seriously. The cumulative figure for HIV positive in Fiji since 1989 to September 2006 now stands at 219, with 29 new cases already confirmed in the first nine months this year. As this is a clinical diagnosis through voluntary testing, we cannot afford to be complacent and must continue with our aggressive and collaborative fight to combat HIV/AIDS.

In addition, Mr. Speaker, Sir, the much awaited Keiyasi Dental facility is almost complete and will be in operation soon and with dental problems will no longer travel to Koromumu Hospital.

Legislation: Mr. Speaker, Sir, the new Parliamentary calendar 2007 to 2008 has listed the formulation of new legislation for the Ministry, and the review and upgrading of existing Acts and Regulations.

Furthermore, other Bills to follow due process of formulation or review include;

Most recently, Cabinet has endorsed the Ministry's amendment to Schedule A in the Public Health Act Cap. 111, to incorporate HIV as a disease entity in the definition.

Partnership in Health: Mr. Speaker, Sir, partnership in Health including Private Sector investment in health is strongly supported by the Ministry of Health and Government.

The Australian Government's assistance under the Fiji Health Sector Improvement Project is greatly appreciated. The annual budget provision of $5 million for the next three years will greatly assist the Ministry of Health achieve some of its annual health targets in selective areas.

Sir, the Infant Immunisation Programme will get further support through assistance of the Japanese Government. A project for Fiji and the Pacific Islands is currently under way and this will greatly assist the Ministry of Health in its effort to eliminating immunisable diseases such as measles from our country.

Mr. Speaker, the Government is also assisting the Kidney Foundation of Fiji in its commitment to set up a Renal Dialysis service in the not too distant future. The Ministry is pleased that in this partnership arrangement, renal dialysis service can be offered to all patients suffering from end stage renal failure.

Sir, the Flour Mills of Fiji's assistance is acknowledged for its role and contribution to the Iron Enrichment of wheat flour. This enrichment programme is expected to reverse the trend of chronic iron deficiency anaemia in Fiji in a few years time.

Mr. Speaker Sir, the Australia & New Zealand Bank (ANZ) is acknowledged for their funding assistance towards the renovation of the Kadavu Ward in CWM Hospital. This work, which was recently completed, has greatly enhanced the image of the Kadavu Ward and ensured greater patient comfort and staff satisfaction.

Mr. Speaker, the Ministry of Health, on behalf of Government would also like to thank all partner Governments, business houses and private organisations for the assistance in ensuring the provision and delivery of quality health care for the people of Fiji.

Mr. Speaker Sir, in partnership with the Board of Visitors and the Friendly North Festival, we have been able to build a canteen with internet facilities at a cost of $100,000 and a rest room for awaiting mothers to deliver during pregnancy at a cost of $70,000 to serve the people in the remote Northern area.

Sir, I will now turn to Curative Health. Speaking as the honourable Minister for Curative Health Services, you will agree with me, as being a former Minister for Health that health cannot be treated in isolation, and that it should be central to any human and social development undertaking, because people's interaction with their environment is a major determinant to their health and well being. This principle, Mr. Speaker, Sir, has been adequately considered in the 2007 Budget.

As a nation, if Fiji wants to boost its economy and provide better living for everyone, then the good health of its people, who will keep the wheels of national development turning must be granted. Put in another way, Mr. Speaker, Sir, the burden of diseases, which constantly afflict our people, must be reduced at any cost to guarantee a healthy and productive population.

Health and Development: The Ministry of Health endorses the statement in the preamble to the Constitution of the World Health Organisation that the enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition.

Sir, the wisdom of every culture teaches that health is wealth in a more instrumental sense as well. For individuals and families health brings the capacity for personal development and economic security in the future. Health is the basis of job productivity, the capacity to learn in school and the capacity to grow intellectually, physically and emotionally.

Mr. Speaker, Sir, because of this intimate relationship between health status and the degree of development in any nation, I am compelled to address this issue further and also to reiterate as it is also true today, the World Health Organisation's health strategy; "Health for all in the 21st Century" is based on its firm belief and acknowledgement that new trends influencing health are composed of non-medical issues or socio-economic issues, which this very Budget is trying to address some of these issues.

Sir, the Ministry of Health wishes to assure this august House that it will reciprocate equally generously. The Ministry is committed to spending wisely, to ensure that the health of our people is maximised, disease burden reduced and the standard of our health care service is raised. In addition, Sir, the Ministry of Health will ensure that policies and budget commitments, as set out in the 2007 Budget, are fully implemented during the year. We will also ensure that we have an efficient and effective monitoring system in place so that we can manage our health budget prudently.

Mr. Speaker, Sir, running of our major hospitals exert heavy burden on the health budget and the greater portion of our large hospitals are in the urban centres. This means that a large slice of our budget is spent on health services in urban areas compared to rural areas or on the secondary and tertiary care level, rather than primary care and preventative services, therefore posing problems of equity.

Health Care Finances: To address the financing problem in health, Sir, the Ministry of Health is exploring options for health financing reforms in Fiji, with the help of experts to mobilise more resources desperately needed to supplement the health budget, and at the same time improve health services delivery with consequent improvements in health outcomes. Consultations is now continuing with key stakeholders and members of the community in how best this can be addressed, and the best option that seem to emanate from these discussions is the option of a social health insurance scheme for the formal and informal sectors. This notion, Sir, is based on social solidarity whereby the rich susidising for the poor and pooling of risks.

This, Sir, in my humble view, is the best way forward for Fiji's Health Care System. Preliminary data gathered has shown that out of pocket payment of health in Fiji constitutes 35 per cent of current financial sources, compared to 52 per cent contributed by Government Budget and 13 per cent through donation.

Human Resources for Health: Mr. Speaker, Sir, the Ministry of Health places a lot of emphasis on the provision of adequate number of doctors to provide health care to our people. In our decentralised management structure, it is anticipated that an equitable distribution of doctors across the many facet of service delivery areas will materialise. The Ministry of Health is also mindful of the impact of a globalised market economy, where movement of doctors overseas will continue to happen. For this reason, Sir, the Ministry of Health continues to support the training of an adequate and appropriate number of medical officers at the Fiji School of Medicine. It should also be noted, Sir, that the Ministry of Health also supports postgraduate studies for our local graduates in specific specialised areas of their choices.

Fiji School of Medicine: The Fiji School of Medicine budget from this year has been incorporated within the Ministry of Health's budget. The school has been given $3,894,800 as operating grant and $150,000 as capital grant for 2007.

As an institution that relies solely on the tuition fee model, the school will continue to request from the Fiji Government grant although it serves as a regional medical training centre.

The Fiji School of Medicine is not meeting the needs for doctors and medical specialists in Fiji and the regional countries. In order to train more doctors and medical specialists, the Fiji School of Medicine needs to expand teaching to the Lautoka and Labasa Hospitals, where there are additional clinical areas because CWM Hospital cannot accommodate any more.

With these proposed expenses, there will be major infrastructure improvements required to be done. This will also include expansion of the newly constructed Pasifika Campus by the European Union to accommodate administrative and academic staff.

Drugs and Medication: Sir, the lack of drugs in Government health facilities continues to attract the media because of the significance that these medical items play in the lives of our people. We are thankful that next year will see an increase in drug budget by $1.5 million for the first time during the last five years.

This additional funding would help to support vaccines for children under the expanded programme on immunisation, family planning commodities, integrated management on childhood illness, drugs to manage non communicable diseases and diabetes, heart diseases, hypertension and cancer an opportunistic infections for people with AIDS.

Taxation: We continue to commend the goodwill and kind gesture of people and corporate houses in the area of partnership with public services and the Ministry of Health. We would like to record our heartfelt gratitude to the following organisations:

and others not mentioned for their generous donations in the upgrading of health facilities.

Information Technology: Mr. Speaker, Sir, the Ministry of Health will continue development in the information technology area in strengthening a comprehensive computerised Human Resource Information System (FRIS) to capture all information pertaining to each employee of the Ministry. The new expenditure item for the payment of Approved Software License Fees for the FMIS/HRIS and Reporting Systems in the 2007 Budget would be very useful. The main data base/server is based at the Ministry of Health Head Office and inputs are carried out in the three Divisions.

Sir, it is anticipated that the new system will help management to gauge staff training needs and other human resources management issues.

Mr. Speaker, Sir, let me turn to my third and final point, that is the impact of VAT on the poor. Mr. Speaker Sir, the plight of the poor is paramount and it is the responsibility of a caring government to see that all its citizens are fairly treated. I believe, it is now time that the poor definitely need assistance. For too long, we have been penalising the poor by hitting them below the belt for the benefit of the rich and elite.

Mr. Speaker Sir, let me share my concerns on the impact of VAT in my constituency. The proposed 15 per cent VAT for 2007 will definitely have a disastrous affect on the already low income earners who earn $10,000 or less per annum in this country. The increase will make families who are already stretching their limited family budget thinly, to struggle even further to put bread, roti and cassava on the table. Not to mention, trying to meet other family basic needs like water, shelter, education and seeking health services. If this will be implemented, we will see more destructive social and economic impacts in this nation.

Mr. Speaker Sir, raising the income threshold from $8,840 to $10,000 will not assist the poor, as majority of the workers do not earn much and are already enjoying the tax benefit. The additional 2.5 per cent increase is going to directly affect the pockets and on every purchase, we pay an extra 2.5 per cent.

Mr. Speaker Sir, for too long, the business tycoons and employers have been enjoying at the expense of the poor, I see no reason why we cannot share the burdens together. Sir, year in and year out, the civil servants demand for pay increase and COLA. The Government does not have any option, but to agree to their demands. Last year, most of our Ministries Budgets were taken up to pay COLA for civil servants. Fiji does not have a minimum wage system and the poor workers, apart from civil servants, do not benefit from COLA and other increments. Sir, I see no reason why Government cannot order a 2.5 per cent wage increase across the board for all workers, who earn below $10,000. This will assist the poor against the 2.5 per cent VAT increase. The business firms and employers are able to claim VAT returns, whereas the poor workers do not enjoy this, and by paying 2.5 per cent wage increase, they will not lose much.

Mr. Speaker Sir, I have been reliably informed, that there are locals who are working for international agencies such as WHO, UNICEF, UNFPA, to name a few, do not pay any tax at all, yet we keep on penalising the poor.

Mr. Speaker Sir, education plays a vital role and parents are struggling to send their children to attain the best education. Another measure to assist the poor, would be, to add all education materials into the essential item list, so that the poor people will be relieved of this VAT, and I urge the honourable Minister for Finance to consider this seriously and act immediately.

Mr. Speaker Sir, at every forum, we talk about MDGs and one of them is to eradicate poverty; what are we doing? I believe that by increasing VAT by 2.5 per cent, we will put more of our people in poverty.

Mr. Speaker Sir, I strongly urge this august House to take one step back and think of the thousands of families who are already struggling with this simple bread and butter issue but simultaneously have a right to enjoy as much good quality of life as the rest of us.

To conclude, Mr. Speaker, Sir, much has been said about the Multi-Party Cabinet and to keep it alive, I believe in the absence of the ground rules, which is the most important document in any power sharing arrangement and bi-partisan Government, therefore good sense must prevail. All FLP Cabinet Members should be allowed to express their views and exercise their rights by voting on party line, and they should not be penalised because that is their right.

Finally, Mr. Speaker Sir, the Ministry of Health is committed to playing a key role in shaping Fiji's Health through the provision of quality health services for the people of Fiji, in an integrated and decentralised health system, to foster good health and well being. Having said that Mr. Speaker, Sir, I wish you and your family and all honourable Members of this august House and their families, a joyous Christmas and a very happy New Year, and I reserve my right to vote until Wednesday.

MR SPEAKER.- Honourable Members, I will adjourn the House for morning tea. The House is now adjourned.

HON. J. GAWANDER.- Mr. Speaker, Sir, I rise to contribute to the debate on the 2007 Budget. Sir, in view of the magnitude of the Budget, I wish to restrict myself to a few issues, which I feel I can make some meaningful contribution. I intend to read my narration on the following topics:-

Sir, I also wish to raise some of the concerns of my constituents, as part of my text this morning. Sir, the Budget is probably the single most important document in any nation in any one year, except for the Constitution. Thus, it is not surprising, the theme is "Partnership for Sustained Growth".

In any nation, no matter how rich or how poor, there is only a limited amount of money that is available for a Government to run its business. It all depends on the affairs of the Government, how they have been looking after their affairs.

A well planned Budget attempts to achieve, not only most of its objective for the year but also launches a platform for coming years, that is the word in the theme "sustained".

Sir, the buzz word "sustained" normally means continuous, lasting, perpetual and constant. What is surprising is that, between 2003 and 2007, this word has appeared about three times, as a theme in the Budget. Maybe, this is because it did not achieve its goal sustainability previously.

I say this, Sir, as we must be aware that there are risks at present to sustainable growth. That is:-

A Budget normally provides an estimate of expenditure that the Government plans to make over a period of a year. It also outlines ways in which the total amount of expenditure is raised. It lays down the rules and allocation of funds for the running of the country, so that there is growth. As the Budget only provides an estimate of expenditure and revenue, it is thus, built on best educated assumptions. Thus, let there be no doubt in anyone's mind that budgets cannot be built on assumptions and targets.

Mr. Speaker, Sir, the running of a democratic government is supposed to be such that it reflects the wishes of the people and how they want the economic and social goods delivered to them. The first budget after the General Elections by any government, generally attempts to fulfil parts of the winning parties' objectives, as set out in the manifesto.

Mr. Speaker, Sir, this Budget provided an excellent opportunity for the Multi-Party Government, to give to ordinary people what was assured to them in the recent Elections, which is a new wave of economic growth. However, I assume all in the Multi-Party would have desired to see this also but the limitations are very real and thus, the honourable Minister for Finance, in his Budget, had to juggle with what he has.

Mr. Speaker, Sir, the Budget appears to be developed through the eyes of political strategies and was developed with little interest in the social, economic and environment mass left behind.

Mr. Speaker, Sir, after careful assessment of this Budget, it appears to lack novel concepts and would deepen the poverty level of the poor, again it fails the middle class of people and mortgages the future generations of Fiji.

The Budget is worth approximately $1.7 billion, which is approximately 10 per cent higher than the last Budget. The number of employees would be increased by approximately 5.5 per cent over this year's numbers. The economy is not expected to show major increased growth but the composition of expenditure and the method of financing the expenditure-revenue difference (budget deficit) is a cause of concern.

Mr. Speaker, Sir, the issue is, how will the Budget deficit be financed? Will it be the easy way out, as has been happening - that is to go to the FNPF? This is a worrying scenario, as this would worsen the foreign exchange position, which could lead to further stringent monetary policy tightening by the RBF. Added to this, are the recent increase in oil prices and the possible impact of emerging El Nino next year, which is now considered to have moved from weak to moderate in intensity on agriculture, which could leave the nation very vulnerable by not achieving the assumptions or targets on which this Budget is based. In short, we have all the necessary ingredients for a possible recession in the nation in the coming year, if we are not careful.

Sir, FNPF has always been an easy target, to bridge the gap between Government expenditure and revenue, but this needs to cease somewhere, or else we could be heading for disaster in our monetary situation. It is recommended that deficit should be funded with concessional borrowing from overseas and FNPF is allowed to spread itself into international equity.

(b) what happens in the telecommunications sector due to further liberalisation, as this could reduce returns from ATH in which FNPF is a major stakeholder?

This could erode the ability of FNPF, to deliver as per its vision - that is the people of Fiji will enjoy peace of mind during their working life and in retirements.

Sir, we also need to address the issue of pensioners' return on their FNPF contributions, who during their working career, contributed a lot of their buying power to FNPF but today, their remittance does not have the same buying power because of the increased cost of living index.

Mr. Speaker, Sir, it is time some consideration in way of tax credit up to a sum of $1,500, be considered for retired couples for medical purposes. Sir, actions like these would make the people of this nation feel a sense of partnership with this Multi-Party Government. Sir, the people of this nation are also questioning the management of their funds.

Sir, let me dwell a little on sustainable growth. One of the important factors for sustainable growth in any business is to allocate reasonable sums for capital expenditure and not the reverse. Thus, common sense in any business would warrant that one would decrease the operating expenditure, increase the capital expenditure and the functioning of the Government is not much different from any other business. Government needs to be operated as a business which encompasses good governance, accountability and innovative ideas, to deal with its financial, economic and social responsibilities to its people.

Thus, it is not surprising that on several occasions in recent years, Government had not only indicated but mentioned that operation to capital ratio would be reduced from 80:20 to 70:30. A closer examination of this Budget indicates that the likelihood of this to be achieved in the near future is very remote, in view of the expenditure use and management systems adhered to.

On the same token, to be fair to the architects of this Budget, it has to be noted that this ratio has decreased from 83 per cent in 2006 to 80 per cent this year which provides a ray of hope. Sir, the other similar trend is in the capital, allocated for infrastructure where the operating budget has been reduced to 38 per cent in comparison to 46.3 per cent in 2006.

Mr. Speaker, Sir, we are all aware of the fact that our nation is in dire need of infrastructure development as this can provide the necessary impetus for private sector growth which is the power house of economic growth of any nation for long term sustainability. To develop infrastructure, we need to allocate more funds as this is a critical sector for future growth. Having said that, we note that the Ministry of Infrastructure and Public Utilities, received a rise in allocation by $39.5 million. Out of this, $17.9 million is set aside for the development of Momi Bay Road thus leaving as little as $21.6 million for other developments. Added to the existing allocation, this will not see any major development for infrastructure. This is really unfortunate if we are to see sustained growth.

It is also saddening to see that such large sums of taxpayers' money is used somewhere, where most of the taxpayers will probably never be able to reach, hence, one needs to address the issue. Is it fair to allocate this fund for the purpose? I am very sure, Sir, that if the developers of Momi and Natadola projects can spend millions of dollars, they can share part of the responsibility of building infrastructure around it. These much needed funds, could be better utilised on other important projects for sustainable growth in the nation and for the poor. This money could have been used to quench the thirst of the people of my constituency due to lack of water in their homes most times, or improve senior citizens' home or roads. I will not dwell much on roads as many previous speaker have spoken on the same. I am glad to note, however, that a sum of $4 million has been allocated to the water woes of Lautoka.

I only request the honourable Minister to see to it that each dollar allocated for this project, is spent for this purpose and does not land in the hands of unscrupulous people. Sir, worst than the leakage of water in Lautoka, is the leakage and misuse of funds on various projects and until this is addressed, no matter how much funds are allocated to such projects, very little would be achieved.

Mr. Speaker, Sir, let me dwell slightly on the issue raised by the honourable Minister for Labour and Industrial Relations with regard to avoiding VAT. Sir, it is saddening to see that someone like the honourable Member of his stature and being a historian, who spent most years of his life championing the cause of poor people, is now feeling authoritative in suggesting how a family can pro-actively relook at their lifestyles and make innovative and cost effective solutions to cushion the VAT increase. I assume, Sir, some of the socialistic habits and mannerism take time to die. However, it must not be forgotten, that the world has moved away from the socialistic era and all the people in this nation have a right within reason to decide on what choices they make, particularly, in regard to their eating habits and life style. It surprises me, that the honourable Minister did not see fit enough to provide the same innovative and proactive ideas to the honourable Minister for Finance on how to avoid this extra burden of VAT to the very people who have placed the honourable Member in this Government.

Sir, VAT affects the poorest of the poor more than anyone else. On one side, I assume its objective is to reduce consumer spending, encourage production of local produce and fill the Government coffers. Sir, all these are valid reasons, however, by doing this, we are penalising mostly the poor who cannot afford to pay VAT while on the other hand, Government is reimbursing the increased VAT to the civil servants by paying out Cost of Living Adjustments (COLA).

Mr. Speaker, Sir, one may say that there is VAT exemption on seven items but how many of us can live on the same items only. I wait to see the prices of local goods in the market in three months time. This is an unfair expenditure on the poorest of the poor and that is why I class this as an "unfair Budget".

Sir, I do not say it is unfair, as a sum of $1 million has been allocated to the honourable Prime Minister and Minister for Sugar Reforms' home and I personally have no problem with that. After all, the honourable Prime Minister deserves a decent dwelling,

Sir, prices of local vegetables would rise, as supply would not meet the demand because we do not yet have the capacity to produce many of the needed items in quantities needed by the nation. Some of these are seasonal vegetables. Sir, the philosophy of introducing VAT, is based on the principles that the poor are least affected by this indirect taxation by reducing the direct tax for the people. Unfortunately, most of the poor earn so little that they are already exempted from direct tax thus any increase in indirect tax have a major impact on this poor section of the population, who can least afford the added cost. Sir, nearly half the people of all races either live below poverty level, or close to the poverty level, thus about 50 per cent of the nation's population would be severely affected by the increased fiscal and excise duty on a number of items, including imported vegetables, meat and VAT on just about everything except for the seven items and market produces.

Sir, I do not agree with the increased VAT and other duty on food items as expressed very strongly by my constituents in our meetings. However, I would have appreciated if VAT could have been eradicated on the following items:

Sir, the increase in income tax threshold to $10,000 is appreciated because it would provide some relief for approximately 25,000 people. No matter how small this may represent, it does provide slight relief to some people.

Sir, we should reassess our philosophy with regard to VAT, particularly, in light of the fact that we have allowed the Embassy of the richest nation on earth, the United States of America (USA), to be exempted on payment of VAT on their residence and complex under some international convention. On the other hand, we are taxing the poorest of the poor with an increased VAT of 2.5 per cent. Where is the justification on this? Are we for the poor or for the rich and the mighty? This is difficult to comprehend and the logic behind it is even more convoluted.

The new Tax Free Zone for Information Communications Technology (ICT), is looked positively upon but many of my constituents in Lautoka are victims of similar previous concessions provided to garment factories who dumped them high and dry after the concession period. As a result, a large number of them are without work today. We would have very much appreciated if this zone could have been also situated in Lautoka where there is hardly any growth.

Sir, let me move on to another issue where duty has been raised continuously, and that is vehicles. It must be remembered that vehicles are not a luxury but necessity for most people. Most ordinary people buy second hand vehicles. I have learnt recently, that a second hand car dealer gets things on Free on Board (FOB) at the value of $2.5 million and pays duty to the level of $4.5 million. What do the ordinary people get out of this huge duty and tax paid to the Government, except for bad roads and over rated LTA officers?

You can calculate what the amount would be, with a further five per cent increase in Excise Duty and 2.5 per cent on VAT. This amount again goes to the Government coffers. It is alarming to note that the Government appears not to consider the feelings of the ordinary people and the duty is increased across the board on vehicles. It would have been better to increase the duty on bigger vehicles and reduce it on smaller vehicles which ordinary people purchase. This would also provide quality cars on our roads.

Also, Sir, in the era of high cost of fuels, there is no relief on duty on hybrid cars or on the LPG cars for private use. Sir, this is surprising as these are energy efficient and environmentally friendly cars and we should be encouraging the sale of these cars to save our environment and reduce use of fossil fuel, thus save foreign exchange. That is why I believe very little if at all, any revolutionary ideas that have come in this Budget and now I can understand why the honourable Leader of Opposition termed it as a "lazy Budget".

Sir, another example of how the Government has been lax in its drainage of foreign exchange, is the recent establishment by Land Transport Authority (LTA) of a New Zealand company for vehicle inspection in Japan and Singapore. This company would charge an average of $300 to $800 per vehicle thus an average of $500 per vehicle and approximately 5,000 vehicles are imported every year. This company will reap something like $2.5 million off the nation. What I cannot understand is why these vehicles cannot be inspected in Fiji like the vehicles that come from Australia and New Zealand.

Mr. Speaker, Sir, let me slightly throw some light on agriculture. I definitely support the concept that agriculture has the potential to increase the export earning of the nation. This is because Fiji's agriculture industry is potentially attractive to niche international markets. The sector could offer production processes such as;

(f) boutique practices that contrast with the mass production methods of our neighbours.

However, the Ministry needs technical assistance that will prepare not only a branding campaign to provide a distinct identity or brand that differentiates Fiji's agricultural products from those of other countries, but also the skills needed to produce basic food crops. The latter is of utmost importance, that is, to have technologies to produce these food items. Today, Fiji's most vegetable planting occurs at subsistence level.

We need to get experts to develop technical, economic and social strategies and polices aimed at increasing not only farm productivity, but also economic profitability by providing skills and technology to the growers in a manner they understand and Government to provide the necessary infrastructure.

The research institution needs to be given support for without research and development there is no progress. However, research institutions must remember that unless research and development are translated to the growers, they do not become a technology and this is what is needed at the farm level to increase production - technology.

Sir, I am surprised that the funds provided for Crop Research is approximately $3.2 million, which is, when wages, travel and communication, vehicle maintenance are taken out, there is hardly any money to do research. If we are to increase production, Sir, we would need to provide funds for this basic research and you might as well send all researchers to do extension work if there are no funds for research.

Sir, I also do not see any budget allocation for Sugar Research Institute of Fiji, which the Government is obliged to pay, but I am sure the Government would provide its share in due course.

The branding and marketing campaign could be considered for funding through grants from development agencies. The branding campaign could help Fiji enterprises command an international price premium for their products in niche markets. However, investments will be necessary to fund processing facilities, management, and raw material supply before agricultural enterprises can meet the quality and reliability standards expected by international markets, and this I see is lacking in the current Budget.

Sir, it is my belief that the time has come when the Ministry of Agriculture needs to look outside the box, if they wish to further increase the export of agricultural produce, and that is why I stated that this Budget needs ground-breaking ideas of achieving its objectives.

Mr. Speaker, Sir, we could pour in millions of dollars in this Ministry, and if business as usual mentality remains compounded with natural disasters like the weak to moderate emerging El Nino expected next year or cyclones, the set targets for growth would not be achieved and economic growth stagnate once more. Thus fund needs to be re-allocated to such activities for the nation to progress.

Mr. Speaker, Sir, let me briefly dwell on environment, as it is one issue that affects us from generation to generation. It is well understood that we humans ultimately depend on the health of the planet for our well-being. Once this is well understood by all, there will be a real change in people's thinking, yet our track record shows it remains poor. The measurements of ecological health do not lie, and what they tell us is that, by most standards and in most areas, we are going backwards.

Undesirably, much of this has happened on this Government's watch, for we are now an island of ecological reverse. Our river systems are sick, silted and stressed, corals are bleached, certain mangroves are used beyond their environmental limits, some rivers are drying, literally, for a drink of water, the erosion of soil from bad management practices, such as logging and crop production, are silting the rivers, and loss of nutrients to our streams, rivers and ultimately to the sea which is affecting the qoliqoli areas

Mr. Speaker, Sir, honourable Members are aware that there is one super issue that presents the most profound environmental and political challenge we will face in this century and that is global warming. It is now accepted by most reputable, independent scientists and by most governments that massive increases of greenhouse gases into earth's atmosphere, some 30 per cent since the pre-industrial era is producing a corresponding increase in the earth's temperature and this presents a worldwide problem of immense scale, for example, Cyclone Katrina, more droughts and cyclones of greater frequency and intensity. Humans remain entirely atmosphere dependent, so there is no choice but to respond to extreme climatic behaviour and its many effects. Sir, the economic costs of global warming are also rapidly rising with reported losses increasing substantially in billions of dollars.

Mr. Speaker, Sir I am not aware why the Government is not moving towards a National Carbon Trading Scheme, and consider a carbon tax. Sir, Lihir Gold Mining Company in Papua New Guinea has been registered for carbon trading under Clean Development Mechanism of the Kyoto Protocol, gaining about $3 million. Income earned through this system would not only ease foreign reserves, but also go some way to solving the increased taxation issues. More than that it would go to developing an alternative programme to reducing greenhouse gases.

Sir, the truth is that, while this Government fiddles, Fiji burns. Global warming is kicking in, with higher temperatures evaporating our precious water, stressing valuable stocks and exposing us to forest-fires, cyclones of greater intensity and frequency and sea level rise of unprecedented levels. We need to urgently move to a mixed-energy economy with a much greater emphasis on demand management, use of renewable energy and increased energy efficiency, especially in the transport, building and agriculture sectors. The agenda for the next decade must include sustainability reform. There is evidence that environmental modernisation can help drive the economy with increased employment, innovation and capacity for additional export income.

Sir, Germany and Denmark have created entirely new industries based around renewable technologies and energy efficiency. Fiji, with its abundant supplies of sun, thermal energy and wind, could adapt to this path and prosper, however, we are still to see a comprehensive policy to meaningfully address these issues. At present, all the institutions like FSC, FEA and others are having their own programmes and it needs to be consolidated in a National Energy Policy.

Sir, whilst an increase of $1.6 million has been allocated to this Ministry, their needs will be much more if these pristine islands are to be retained for the future generations.

Mr. Speaker, Sir, let me move back to the nature which is so closely related to environment. It must not be forgotten that natural world carries strong cultural and inherited connections for indigenous communities, as well as the possibility of increasing employment prospects in these areas on eco-tourism, et cetera, for them. Sir, degrading the environment is a question of lost opportunities for the indigenous people as well and these issues are not adequately supported in this Budget.

Mr. Speaker, Sir, just briefly on the sugar industry, the National Adaptation Strategy has many loopholes and these need to be addressed. I am sure they will be addressed because this is a very important industry that needs to be operated well, and because it will still remains the backbone of the nation for longer periods to come.

Mr. Speaker, Sir, the Budget needs a revisit with some evolutionary concepts that increase sensitivity towards the poor, and until that happens, I cannot support the Budget before the House.

HON. P. RALULU.- Mr. Speaker, Sir, I rise to contribute to the debate before the House, that of the 2007 Budget Address, handed down the by honourable Minister for Finance and National Planning on Friday 3rd November, 2006. Before I do, Sir, I would like to thank the honourable Minister and his hardworking staff at the Ministry of Finance and National Planning for a comprehensive presentation of the Budget.

Before I continue, Sir, allow me to take this opportunity to echo the words of my compatriot from the Ba East Constituency (Ratu M.Q. Saukuru) to express on behalf of my Constituency, the Ba East Communal, as well as on behalf of the 21 chiefs, from the 21 tikinas in the Yasana o Ba, our unequivocal and unwavering support to His Excellency the President, Na Momo na Taukei Vunisei, Ratu Josefa Iloilo, the Chairman of the Great Council of Chiefs and Members of the Bose Levu Vakaturaga, especially to our honourable Prime Minister.

Mr. Speaker, Sir, the chiefs and the people of Ba would like to put on record their support for this Government, especially at this critical time of our history.

Na ledu momo vaturaga, na bulou ena Yasana Vakaturaga e Ba, wili koto ke mutou na momo na roko levu kei kora na vakalesilesi ni vale volavola ni Yasana, mati sa mi vakarogocia na lemutu veisiko mai ena mua ni macawa, vina du vakalevu and lemutu vakaraitakinia koto mai na ledu mai tiavata koto ena ledu veitokoni vua na momo na Peresitedi levu ni ledu vanua, na momo na taukei Vunisei, kei koya na liuliu ni ledu Matanitu, na Prime Minister, vina du riki vakalevu.

Mr. Speaker, Sir, I must admit that apart from raising issues relating to one's Ministry or portfolio, one of the downside of having to be at the tail-end of the batting order, in such an important debate is that most of the issues and arguments that one wishes to make with regards to the key features of the Budget are, mostly covered by the previous speakers. So, it leaves the rest of us to pick up the pieces as it were.

However, Mr. Speaker, Sir, after having said that, one of the upside in the same context is that, being at the tail end of the batting order, it gives one the opportunity of having to listen to most of the speakers, and their contributions and one would be able to enjoy a panoramic scan of the contributions and to have an intelligent view of the strengths and weaknesses of the arguments presented so far, that, Sir, is my task today.

Let me begin, Mr. Speaker, Sir, at the 2006 National Economic Summit that was held in September, where we were given an overview on Fiji's economic performance and challenges by the Governor of the Reserve Bank of Fiji. In terms of how Fiji's economy has performed, it was stated that economic growth has been volatile over the past decades. However, there have been pockets of years where sustained high economic growth has been achieved.

Statistics have shown that when benchmarked against Pacific economies and selected Asian economies, Fiji can do much better.

Mr. Speaker, Sir, it was stated that the following factors contributed to this lacklustre performance. These include:-

Mr. Speaker, Sir, when one focuses on the factors that I have just outlined, those that contribute to the lacklustre performance of our economy, one could deduce that apart from the first two issues, that relates to our smallness, isolation and the fact that we are susceptible to natural disasters, I might state, Sir, that the other factors, such as the loss of preferential access, slow reforms and the rest are very much in our hands.

Mr. Speaker, Sir, all we need (if I may use the favourite phrase of my friend on the other side of the House), is a "paradigm shift" and our concerted effort and partnership to address these issues.

Mr. Speaker, Sir, we are also reminded at the National Economic Summit that the economic growth has averaged around 2.4 per cent over the last five years and is expected to average around 2.7 per cent in the next three years.

It is also important to note, Sir, that for many years, Fiji's economy suffered from chronically low and declining investments. However, this cycle has now been reversed. The investment rate, Sir, has risen progressively in recent years from below 11 per cent of GDP to 18 per cent this year.

Mr. Speaker, Sir, the contribution of the private sector capital to this continues to grow. It is up from three per cent to eight and this is a very encouraging trend.

Sir, what I am trying to paint or highlight here are two simple scenarios of our economy from the many that one may wish to paint, because of the time limitation, Sir, I will just focus on these two scenarios.

Scenario One, Mr. Speaker, Sir, portrays a lacklustre socio-economic environmental condition that is associated with uncertainties, under-employment, cyclical and seasonal unemployment due to loss of preferential access, an atmosphere of lull, laxity and mundane attributes due to slow reforms and slow policy implementation. There is low productivity and efficiency, Sir, all within the environment of political instability.

Scenario Two, Mr. Speaker, Sir, is one that portrays a positive socio-economic environmental condition that creates a positive trend for investment, a growing and supporting private sector and an economy that has all the positive attributes and vibes, and a general embracing capacity conducive for higher economic growth.

Mr. Speaker, Sir, above are the two scenarios of our economy that has been painted so far.

Mr. Speaker, Sir, the lacklustre socio-economic conditions as portrayed in Scenario One, in my view, has been more than adequately addressed by various strategies outlined in the Budget Address. Issues such as economic uncertainties, under-employment, slow reform, slow policy implementation, low productivity and low efficiency are being addressed by the various reforms outlined by the honourable Minister for Finance and National Planning such as: (I will list five for the purpose of my contribution today).

(a) Government agreeing to implement the Civil Service Reforms. The Strategic Development Plan aims to reduce the cost of civil service from the current level of 14 per cent GDP to 7 per cent.

(b) The Public Enterprise Reform that is progressing well with reorganisation completed at the Fiji Ports Corporation Limited (FPCL) and the Fiji Public Trustees Corporation. As well as these, several areas have been designated as priorities for reform. These include water and sewerage services, quarantine and immigration.

(c) Government has also tabled the Telecommunications Bill in this august House, which establishes the Telecommunications Authority of Fiji, and to provide the framework for opening up the telecommunications industry.

(d) The Public Financial Management Reforms are fully underway in the implementation of its components. The Reform places emphasis on placing more accountability on Chief Executive Officers (CEOs) in view of the gradual delegation of financial authorities to them. Sir, in 2007 CEOs will be required to produce monthly, quarterly and annual financial reports to relevant authorities as specified in the Financial Management Act, 2004.

(e) Government is pressing ahead with the reform of the Sugar industry with the valuable assistance of our development partners. This is to include improving farm yields and promote crop diversification; to improve the sugar mills and cane transportation, and to develop the Alternate Livelihood Programme to cater for farmers that will be affected by the reforms.

Mr. Speaker, Sir, the above are just some of the numerous strategies that are highlighted in the Budget. To address the Scenario that I have painted in Scenario One.

In short, Mr. Speaker, Sir, it is envisaged that the above strategies will impact on the lacklustre image of Scenario One. To one that will be optimistic, rather than creating uncertainties, where there are new incentives for investment opportunities to create jobs and job opportunities, reforms and policy implementation is gradual and productivity as well as efficiency are on the rise.

In other words, Mr. Speaker, Sir, the numerous strategies outlined in the Budget will totally change the outlook in Scenario One, to be linked to Scenario Two.

Scenario Three, Mr. Speaker, Sir, it the ideal scenario that this Budget and this ship, this Government is trying to steer us towards. That is, Mr. Speaker, Sir, Scenario 3 focuses on increased rate of investments, increased rate of economic growth, increased percentage of exports, declining imports, declining debt levels, increase in productivity and efficiency and a socio-economic environment conducive to growth.

Mr. Speaker, Sir, the theme of the 2007 Budget is "Partnership for Sustained Growth". Sir, a lot has been said in the past week about the need for partnerships between Government, the private Sector, Non Government Organisations (NGOs), Civil Societies and donor partners to realise the objectives and targets outlined in this Budget.

Mr. Speaker, Sir, I would like to refer to the contribution by the honourable Leader of the Opposition, where he highlighted some of the current Government's Budget themes of yester-years, and I quote:

Mr. Speaker, Sir, it is interesting to note that six years down the line, there have been six budgets (and this the seventh one) this Government has presented in this august House. Sir, with the conservative, cumulative revenue/expenditure total of up to $10 billion in the past six years for the economic development of this country, the Fiji Labour Party, which has been in the opposition all this time, have been coming up year-in and year-out with the same baseless rhetoric justification and, mass generalisations, implying a sad lack of the basic general knowledge of the wide consultations in the preparation of the Budget. In short, Mr. Speaker, Sir, they have not acknowledged, supported or said anything substantially positive about any positive initiative that this Government has embarked on for the development of this country in the last six years.

One would expect, Mr. Speaker, Sir, now that we have, for the first time in the political history of this country, the formation of the Multi-Party Cabinet, their stance would change. Unfortunately, Sir, their stance is still the same. In my view, some of the contributions from the honourable Members of the Fiji Labour Party to this debate, leaves a lot to be desired. Their contributions clearly show their lack of understanding of what is the rationale, purpose and the reasoning behind the various initiatives spelt out in the 2007 Budget.

In my view, Mr. Speaker, Sir, most of the honourable Members in the Opposition have lost the plot, and that is the reason that the level and quality of debate from the Opposition has been lacklustre and lacks depth. However, we cannot blame them, Sir, as the members of the Fiji Labour Party have been gagged by their leader. This has made them to behave like frightened little school children, scared of the cane, stick or belt from their Headmaster. They scuttle at the sound of his voice and are mesmerised at the stern look on their leader's face, whether he is caught yawning by a Fiji Times photographer or losing face when confronted by the press on his losing control on some of his senior Members in the Multi-Party Cabinet.

In the last six years, they have been opposing the Budget for the wrong reasons, mainly bordered on racial overtones and anti-indigenous posture. This year, Sir, it is the same story.

Mr. Speaker, Sir, I fully endorse the comments by the honourable Minister of State for Provincial Development when he stated in his contribution that the Fiji Labour Party will never again take the leadership reigns of this country because they failed the people they represent and for the many reasons that have already been expressed in this august House in the past week.

Mr. Speaker, Sir, it is common knowledge, that they have been suppressed, disciplined, their views stifled, and ordered not to question the authority and decision of their leader. In the news item last night, Mr. Speaker, Sir, their President, honourable Senator Koroi, who in my view is just a front for the leader of the Fiji Labour Party, stated on national television that all the members of the Party are to be present on Wednesday for voting. They have to tow the line and they have been warned that anyone who will not vote for the Budget will face the consequences. What an insult to anyone's integrity and intelligence. Sir, they have our sympathies.

In the same breath, Mr. Speaker, Sir, I take my hat off to the honourable Minister for Labour and Industrial Relations for his contribution to the Budget debate, as he clearly demonstrated the wisdom and farsightedness of someone who has a wealth of experience and who has stood by his principles and integrity, despite the fact that he has been temporarily spared from the clutches of his Party Leader.

Mr. Speaker, Sir, allow me to clarify a fallacy or an outright lie that we have been hearing from the members of the Fiji Labour Party, including their leader, and I even heard it from the President of the FLP on the evening news last night. Sir, their bone of contention with regards to the 2007 Budget is that they were not consulted. They claimed that there was no consultation with the FLP on the 2007 Budget. They have been harping about this in this House last week as well as in the media. Let me advise this august House, Sir, and ask the FLP members, how can the FLP go out to their voters in their various constituencies and deliberately lie to them that they were not consulted, when there are three Cabinet Ministers from the FLP who are members of the Cabinet Sub-Committee on the Budget. They are the honourable Minister for Curative Health Services, the honourable Minister for Agriculture and the honourable Minister for Commerce and Industry.

Mr. Speaker, Sir, I have noticed that from the beginning of the Budget debate on Monday, 13th to last Friday, and perhaps, today, the members of the FLP have continued to say that they were not consulted. In my view, Sir, this is a blatant lie. How can they live with themselves? They have been lying to their constituents, taking advantage of their ignorance.

Furthermore, Sir, let me inform the House that the Cabinet Sub-Committee on Budget has been meeting regularly from the start after the General Elections in May until October. At times, Sir, they even meet on Saturdays and Sundays, so how could they say that they were not consulted?

Mr. Speaker, Sir, from today, allow me to inform the FLP supporters out there, please think twice about believing whatever your leader or representatives say, and do not follow them blindly.

Sir, to the members of the FLP, including their leader, we are now in the 21st century. You have been flogging this horse called VAT for the last six years and it has not returned any positive return on your efforts. You have been backing a losing horse. A horse called VAT has bolted. The rest of the world has moved on, so please wake up and smell the roses.

Mr. Speaker, Sir, the utterances from the honourable Leader of the Opposition and the members of the FLP with regards to the status of our debt levels in the last five years, shows the ignorance or their lack of knowledge of the different cycles or phases that an economy of a country goes through.

Mr. Speaker, Sir, a country's economy goes through different cycles or trends, whether it be a period of boom, typified by positive growth, low employment, low inflation and so forth. It could also go through a period of depression or slump, which is characterised by low or negative economic growth, and so forth.

Mr. Speaker, Sir, what a lot of our people, including the prophets of doom from the other side of the House are ignorant of, is the fact that because of the political climate in the year 2000, that period of time was "abnormal times". Sir, I do not need to go through the state of our economy during those abnormal times. In short, the economy of this country was on its knees.

Mr. Speaker, Sir, the government at that time saw it fit that one of the key initiatives to boost the economy at that time was to embark on an expansionary monetary and fiscal policy. Sir, this deliberate expansionary policy approach by Government from 2001 was the only way to stimulate the economy, by spending on sections of the economy to create employment for our people, increase the production of goods and services and embarking on major projects to stimulate growth.

Mr. Speaker, Sir, for the information of the honourable Leader of the Opposition and especially, for the honourable Member for Magodro Open (G. Singh), who in his contribution to the Budget Address accused the Government of lying, stating that our debt levels are not moderate by international standards, I have here the latest statistics provided by the Reserve Bank of Fiji, which compares Fiji's debt levels with selected Pacific Island

Mr. Speaker, Sir, for those who have a problem with deficit budgeting, do not understand that it is an accepted method for creating economic expansion. Some of the critics claimed that public debt is excessive and unmanageable.

Mr. Speaker, Sir, the above statistics show that by international standards, this is not regarded as high. It is in the medium category, however, in the interests of prudent financial management, Government is working on reducing this debt.

Mr. Speaker, Sir, let me turn very briefly to my portfolio, the Technical and Vocational Education Training and Special Education.

Mr. Speaker, Sir, the honourable Minister for Education, Youth and Sports has highlighted and acknowledged the allocation of the Ministry of Education in the 2007 Budget. I do not need to go through the overall features of the Ministry's Budget allocation, however, I might like to make some passing observations about the specific allocation to my Ministry - TVET and Special Education.

Firstly, Sir, despite the fact that the TVET Section was elevated to its own Ministry this year, I note that the budget allocation for TVET in the 2007 Budget has not changed.

In fact, there was a slight decrease from $1,641,200 this year (2006) to $1,631,800 for next year (2007) - a decrease of 0.6 per cent.

HON. P. RALULU.- Since my time is limited, Mr. Speaker, Sir, to conclude, I would like to say that with all the initiatives outlined in the Budget and with the social policy mix, this country will sustain prosperity in future and will even grow.

HON. B.L.R. GANILAU.- Mr. Speaker, Sir, with Divine Mercy, honour and humility, I rise to contribute to the debate in the House.

With a whole week gone by and opinions for and against the 207 Budget coming out loud and clear, I bring to the House my response to some of the issues within the said document, as well as that of gender budgeting, which I have not heard spoken of at all.

Mr. Speaker, Sir, may I also say at the outset that my paper is a compilation not only of my responses to the Budget Address presented by the honourable Minister for Finance on 3rd November in this House, but more importantly it is a reflection from representative members of civil society and the NGO community from my constituency, as well as religious groups, professional associations, captains of industry, academia, the private sector and of course, the women's movement.

Mr. Speaker, Sir, I have often heard in the last week, references by Members of this House to the sad misunderstanding by NGOs and civil society of what the SDL Members of the Multi-Party Cabinet refer to as "an outstanding budget", and that NGOs and civil society members are totally missing the concept of what is, and I quote:

"a very sound macro economic policy... a visionary and able financial document... well balanced and excellent, progressive financial strategies and policies";

However, Mr. Speaker, Sir, NGOs and civil society are the community. They also put us here to be their voices. Consultation and engagement with the public and people is paramount, and their voices will be heard in my debate.

Mr. Speaker, Sir, on that note, may I acknowledge the energetic and colourful debate that has gone on within this House, some slightly out of line and out of context. Some days, one smelt and felt the presence of high levels of sulphur in this room, and what was sad, Mr. Speaker, Sir, was not so much the words spoken, but that the persons encouraged each other and wallowed in it. Nonetheless, our basic right to freedom of speech and expression enshrined under section 30 of our Constitution, has been observed at all times and I thank you for that, Sir.

Mr. Speaker, Sir, there are some commendable measures in the Budget for the people of Fiji, albeit a certain sector, but as mentioned earlier, I will acknowledge its benefits, express my reservations and make some recommendations for more efficiency and output, in line with the submissions of a body of professionals and forward-looking strategists - the Fiji Institute of Accountants, who made their submissions to the Ministry of Finance in the middle of this year.

Mr. Speaker, Sir, a national budget is a difficult document to reach consensus on, especially from where you sit in this House and especially so, from where you sit in the community. May I commend the honourable Minister for Finance for his enabling efforts, in assisting the people of Fiji by trying to deal with various issues in the community, and I start with the sorry present state of our infrastructure, an important commitment which also facilitates development in many other sectors of our economy.

Mr. Speaker, Sir, a budget of $232 million, though still relatively small, considering that the Water and Sewerage Department needs $160 million alone to repair the ancient piping system that presently exists throughout the country and restore water respectfully to all consumers, is none the less welcomed, with $33 million going towards the maintenance of our national road systems and FRUP and $69 million going towards water and sewerage. Sir, $9.5 million goes towards the Natadola Development, which hopefully, should give us at least nine kilometres of good quality road, as present figures (without the VAT increase) to build or maintain roads in Fiji, stands at $1 million per kilometre.

Sir, I have also been challenged constantly by some members of my constituency as to why Government is paying for infrastructural development around a resort. I have explained that in this particular case, instead of waiting for Government to develop their particular area of investment, it will be set up and built to their standards, and then Government is billed for what will be used by the public at large.

Health: Mr. Speaker, Sir, the Ministry of Health will receive a total allocation of $155 million, going to the construction of hospitals and renovations in Labasa and Ba, the upgrading of more than 30 health centres and nursing stations around the country and the provision of drugs and pharmaceuticals. May I acknowledge the excellent work of the Loloma Foundation out in the United States which, several times a year, visits Fiji with a team of medical professionals who pay their own fares and come out with medical supplies and tend to medical needs in villages in the outer islands, free of charge. They have visited Taveuni, Koro, the Lau Group, Kadavu and Beqa so far, with the Yasawas and Vanua Levu being their next stop in January. I also thank the present heart team which is currently here, and thank them for their charity and love to the people of Fiji.

May I call on the Ministry of Health to take advantage also of genuine partnerships and assistance proffered by foreign governments through NGOs working within the areas of health and in this particular case, I refer to the Kidney Foundation of Fiji, which has successfully negotiated assistance for the setting up of a dialysis centre in Suva but awaits Government's sanctioning. Government is only asked for floor space within a hospital area, with the whole programme from renovation to start up stage, being co-ordinated by the Foundation and its funders.

Mr. Speaker, Sir, people are dying to hear from the Ministry of Health, literally dying, and we hope we can hear about the freeing up of the bottleneck within that Ministry for the dialysis centre, and I also take this opportunity to thank the honourable Minister for Curative Health Services and Minister for Primary and Preventative Health Services for their assistance. May I also add that I raised this issue in my maiden speech in June, but we are still at a status quo, despite immediate funding available to develop the centre.

Mr. Speaker, Sir, almost along the same lines, apropo health and well being, the budget for the care for the elderly has been boosted to $37.6 million for the payment of pensions to retired civil servants, widows, orphans and war veterans. In recognition of the hard work and sacrifice of war veterans, $6 million has been allocated to the Fiji Ex-Servicemen's After Care Fund, which we all agree is most deserving and it would be beneficial to all, if it were boosted a little more.

Law and Order: Mr. Speaker, Sir, absolutely essential in any community, law and order has been given a total of $181.5 million to the Fiji Military Forces, Police Force, the Prisons Services and the Department of Public Prosecutions, but all still below their required needs. We are disappointed that the Fiji Human Rights Commission will lose 20 per cent of their staff in February, when funding from the EU ends, and hope that the Ministry of Finance would be able to assist with funding for them to continue with their invaluable work, albeit in cramped surroundings.

The very modest increase in the Budget for Prisons administration must come as a great disappointment to the judiciary, as more and more cell blocks in the older prisons in the country are ruled unfit for incarceration by High Court judges, as they constitute inhuman and degrading living conditions. In looking at the breakdowns of the Prisons budget, Mr. Speaker, Sir, I now understand the constant and early departure of prisoners, as they break out of their temporary homes as the expenditure recorded for next year for their medical expenses is $2,100, whilst food for the dogs is $13,700 and pest control is $37,700. So dogs and pests are of higher priority than the two-legged inhabitants.

Mr. Speaker, Sir, tourism has rightfully received $17 million, with $15 million earmarked for the Fiji Visitors Bureau. While the tourism sector is a key source for economic growth, foreign exchange earnings and employment, especially so in a more stable and calm situation, may I recommend another partnership possibly with some of our more successful export companies like Fiji Water and Pure Fiji. Both these and others create a positive image overseas for Fiji just by being there on the shop shelves, television programmes and films, spas and beauty salons. It would be advantageous surely for the FVB to either follow up, or stage promotions, where these companies have successfully marketed themselves, hence cashing in on the popularity of these Fiji respective products. We need to be more vibrant, inclusive and dynamic when sourcing events like these, as it would not cost the Government a cent, but we would receive millions of dollars of exposure and kickbacks.

Of course, education, Sir, with their $333 million budget is a blessing indeed, particularly for the grant-in-aid teachers. May I also acknowledge the outstanding work of the Marist community in Tutu, Taveuni, of Brother George of Xavier College in Ba, one of the country's finest scholastic achievers, who together with the teachers and parents raised $800,000 in the community towards their first ever multi-purpose hall, which will cost $1.3 million at completion next year. I hope the Ministry will see it fit to find some contributions towards this faithful and selfless project by all at Xavier. I would also like to acknowledge the work of other religious and committee-run schools in Fiji that have produced outstanding individuals.

Mr. Speaker, Sir, may I now record some of my concerns and reservations. Before highlighting points from the community, may I stress an important point that has not been raised in this House, and that is the issue of gender and gender-budgeting. Where are the women in this budget, Mr. Speaker, Sir? We make up almost half the population and contribute to 39 per cent of taxes, and we get a measly $1 million for our efforts. We must not be looked at like poor relatives. May I acknowledge with respectful thanks the European Union (EU), United Nations Development Programme (UNDP), AusAID, NZAid, UNIFEM Pacific, Canada Fund and other donors, as well as the corporate sector, for believing in our rights, capabilities and future by funding developmental programmes for the women of Fiji over the years.

Mr. Speaker, Sir, may I also acknowledge the outstanding work of the Fiji Women's Rights Movement (FWRM), Women's Crisis Centre, FRIEND, femLINK, RRRT, National Council of Women, Aids Task Force, Dorcas, the Catholic Women's League and other dynamic womens groups and businesses, who have worked towards improving the status of women in Fiji.

Mr. Speaker, Sir, basically a simplistic gender analysis of the Budget, which determines if the budget addresses the gender situation and matches policy commitments in turn, should be done at the formulation stage, when we identify what the Government has ratified, signed or agreed to in their international and regional commitments to mainstreaming gender in all levels of government. May I add, Mr. Speaker, Sir, that gender mainstreaming should not be seen as a separate issue altogether, or the work of the national women's machinery, but it should be seen as the end result of looking at gender dimensions in all areas of Government.

Mr. Speaker, Sir, in 1995, the Fiji Government ratified CEDAW (Convention on the complete Eradication of Discrimination Against Women) and our country became state party to international law, but we have not been able to transform CEDAW into practical action. Time and again, legal drafts from the State forget CEDAW, and it has been 11 years since the UN's Fourth World Conference for Women in Beijing.

According to the Review Report of the National Women's Plan of Action, and I quote:

"Gender inequality is evident in data on women's low participation (in numbers, levels and pay) in the formal sector employment in the private and public sectors, and must be addressed."

Also, Mr. Speaker, Sir, women are sometimes discriminated against twice through gender and ethnicity, and I refer to the allocation of $50,000 in this year's Budget, which was granted to the Soqosoqo Vakamarama, and not to the national umbrella organisation of the National Council of Women, whose membership includes women's groups like the Soqosoqo Vakamarama, women's groups of all races, spiritualities and backgrounds, and from community levels to graduate at professional levels.

In relation to land reforms, the EU consultants this year, recognised women as being part of the sugar industry, but nothing has been done to consider the impact of the non-renewal of sugarcane leases on women, and in this case, it would be predominantly Indian women. So once again, this is a case of double discrimination on gender and ethnicity. Where are women factored into natural resource management? They also provide cities, township and families with outstanding and high quality seafood every weekend - where are they in the scheme of things?

Mr. Speaker, Sir, whilst on the issue of discrimination, discrimination in the media is also very blatant, with a recent poll in one of the daily papers, asking whether an overthrow of this Government by the Army would be supported, the responses recorded were only from Indians. Why were no other races asked?

Discrimination with overseas scholarships is also evident. After the events of May 2000, New Zealand suspended their funding for 50 overseas scholarships, whilst Australia gradually reduced its number from 50 to four last year. The Workforce Unit of the PSC Scholarships Division is required each year, as part of its standing policy, to assess the skill requirements for both the Government and private sectors, before submitting a report of the needs to the PSC. The reality of the situation is that, because the PSC has failed to budget any funds for overseas scholarships, since 2001 for Fijians, Indians and other students, Indians and Others have not been catered for by Government at all since 2001.

Mr. Speaker, Sir, a couple of years ago, the Government's annual allocation for the Fijian Affairs Board scholarships increased from $6.3 million to $8 million. The Government should be thanked for that, but what about other races? As a consequence of the current discrimination against non-Fijian students, in respect of PSC overseas scholarships, the non-Fijian students who are able, through sacrifice, to go overseas and achieve success in acquiring degrees in programmes not available at Fiji-based universities, are more likely to find employment overseas, because they are not bound by any bonding arrangement. Millions of dollars of taxpayers' funds are spent on Fijian Affairs Board scholarships, but no funding for non-Fijian students, and yet, nearly 80 per cent of taxes paid in this country are paid by non-Fijian individuals and businesses, both local and foreign-owned by persons who are ethnically non-Fijians. It is very sad to note also the efforts made to attract overseas ethnic non-Fijians to come and invest in Fiji, whilst at the same time, it discriminates openly against local people of various ethnicities.

My opinion, and any other women's opinion is just as important when addressing this Budget, discrimination, access to piped and treated water in a rural community, access to local markets for produce, peace negotiations, particularly with the Security Council Resolution 1325, we opionate on whether a mother should breastfeed or bottle feed her baby, or how much of the funds to the National Aids Council will be allocated to assist in addressing women's specific vulnerability to HIV/AIDS, especially as recent reports and data is clearly noting that HIV transmission is a predominantly hereto-sexual transmission. We need balanced decision-making.

Mr. Speaker, Sir, both men and women play different roles in the economy and they are placed and remunerated differently. The strategic and policy orientations underpinning the Budget does not reflect the interests and concerns of women, men, boys and girls and therefore, engendering the budget is the best way of meeting these aspirations and needs.

Some points as to how Government could engender the Budget in future, and is by no means exhaustive, is that they could:

(a) carry out a focussed gender situation analysis, (determining and analysing the social and economic situations of women and men in each sector);

(b) carry out an analysis of policy (determining if policy responds to the gender gaps and needs identified, as mentioned earlier);

(c) should prepare (both Government and agencies) a Budget document, disaggregating expenditure in terms of the impact on women, girls, men and boys and determine if these allocations intend to promote gender equality; and

(d) call for the enhanced status of a national women's machinery by placing this at the highest level of decision-making in Government, like the Prime Minister's Office, where it will have direct links to ministries and departments and have a strong input in budget formulation.

I mention this in particular, Mr. Speaker, Sir, because we truly need a stand-alone entity for women, like a Gender Policy Unit that can specifically deal with policies, and forward looking strategies for women, and not just walk them out of poverty. We are not only dynamic doers, Sir, we are dynamic thinkers and visionaries and we should do this for the next generation of outstanding young women in our community, as we never had this opportunity.

Mr. Speaker, Sir, it was extremely unfortunate that women were not given substantive places to make presentations at the National Economic Summit, and I hope Government will work to rectify this invisibility, because where else are we able to make our position known on the various sectors of the SDP? It is felt strongly that the Department of Women needs to be able to convene and implement the work of the task forces and other sub committees in a professional manner, so that Government machineries are able to function in an autonomous manner.

I think I have stressed enough on gender, Sir, and now allude to the response from all quarters that our office met with, both formally and informally since the Budget announcement. It was a very negative response, Mr. Speaker, Sir. There is the belief that those in the upper income bracket will not feel as much the negative impact of a 15 per cent VAT increase, Sir, as much as those at the opposite majority end of the socio economic scale, with no extra income, investment or tidy nest egg tucked away for a rainy day, who will feel it like the impact of a runaway train, or in our case, a runaway horse.

I allude to the VAT increase unfortunately, Sir, because it affects the lives of the majority of our people. Constituents along Fletcher Road in Suva complained to me about the price hike for rice, bread, hard biscuits, flour and (heaven forbid) noodles at their local corner store, and when I reported this to the CEO of the Consumer Council, Ms. Premila Kumar, she sadly responded that these hikes had started on the day of the Budget itself.

The increase in VAT reneges on some of our election promises and negates poverty reduction measures that are outlined in Government, as well as voluntary social welfare organisation. Added to that is the reduction in grants to voluntary social welfare organisations. The complete wiping out of operational or administration grants to Voluntary Welfare Organisations, CSOs for their activities in social and community development work is disheartening, as it is difficult to raise funds for maintaining administration.

Mr. Speaker, Sir, whilst on the subject of welfare, I believe that Ratu Maikeli Kalavo, also known as mickey mouse, is at work here. May I explain. The Social Welfare budget of 1999, for instance, when those living under the poverty level comprised 22 per cent to 25 per cent of the population were allocated $600,000. Sir, the Interim Cabinet that came in following the acts of terrorism in 2000, bumped that budget up to a first time historical six figure mark of $1.2 million, with quite a number of self help projects included in it, to make people more independent rather than become dependent on Government. The democratically elected Government that followed, then granted a landmark of $28 million for poverty alleviation and social welfare, which excited everyone because we felt that at last, poverty will be almost eradicated and a new scenario of socio economic development will prevail.

While that is hard to digest, like part of this Budget, Mr. Speaker, Sir, I wonder how a budget increase for those 22 per cent to 25 per cent of persons living under the poverty line have a budget increase of 230 per cent, end up with an increase in poverty to 37 per cent to 44 per cent. You see what I mean, Sir, - mickey mouse equations at its best.

On a similar note, Sir, the allocation for Affirmative Action at $72 million is untaxed and amazing - because growth and well being so far, out of that programme, that was supposed to be developmental has been nil or negligible. How do we gauge that those who were assisted in the fishing or agricultural sectors changed the face of our economy? Perhaps, we can note that our imports have increased and our exports have fallen way below the forecast from last year. We cannot just pontificate from this House and say that raising taxes is the only way for Government to access funds for development.

What is happening to the thousands of acres of vacant and reclaimed land that were leased and now lying empty, leaving Fiji the leaders in the world in the natural production of weeds and paragrass. We import over $300 million of food annually. Why is this land not used for these famous import substitutes that we talk about all the time? Landowning units would be $300 million richer every year, if they worked on their land or partnered with those that they kicked out. Discussing the Qoliqoli Bill is a joke; you know why? Because we import $22 million worth of prawns annually and then that import is from Kerala in India. We import nearly 48 per cent of tuna, that we process, can and then send overseas as Fiji tuna. We import over 314 million kilogrammes of pork a year and our beef imports surpasses that even more; so what is happening with all that land, water, assistance, all that talk and now all those scams? The former Minister told me; "Wu, sa oti sara ga na ika"; so do we just sit and wait for the fish to find their way back to Fiji and spawn themselves?

Mr. Speaker, Sir, whilst there are some commendable measures in the Budget to reduce the trade deficit, including the import duty on meat, dairy products and vegetables which have been increased to 27 per cent, to hopefully bring down the imports, perhaps, we should focus more on facilitating the formal organisation of this change for both those in the agricultural sector and SMEs.

Government should review the level and effectiveness of assistance and inventive packages for the agricultural sector, and small and micro enterprises, and establish processing opportunities through diversifying agriculture, fisheries and forestry ventures. The development of the agricultural sector and Small and Micro Enterprises is very important for Fiji and it would also be fortuitous for all, if partnerships with overseas companies and capable local SMEs were also encouraged instead of being with local big companies.

Mr. Speaker, Sir, the nature and manner of assistance programmes should be such that these are not handouts to undertake business and then left as is without a formal strategy, as there is a danger of creating co-dependence on these assistance programmes for the success or survival of their businesses. The alleviation of poverty is always welcomed, when done in a focussed manner, as the danger, as we see now, creates the poverty of intellect, loss of dignity, loss of pride and self respect in doing what we can for ourselves, and this happens if we make people more dependent on the Government or system.

Recommendations: Some ways we can also ensure efficiency in Government's overall management for the betterment of all, would be through the recovery of debts. Debts of nearly $57 million was not collected, that was about 30 per cent of Government's total arrears of revenue in December 2004, as well as FIRCA at over $120 million, Public Utilities and Infrastructure - $25 million, Lands and Survey at nearly $7 million, to name a few.

If we gathered these taxes, we would not be warranting a tax or VAT increase by Government, as all moneys would be recovered on time and redistributed appropriately.

I also ask for a review of taxation legislation, tax administration, tax compliance and tax simplifications matters. There is an urgent need to undertake a comprehensive review of the Income Tax Act, VAT Decree and other legislation to identify areas and ways to reduce compliance costs, tax administration costs and make taxation simple.

This process will achieve multiple objectives, including reducing administrative costs, compliance costs to taxpayers, improving the efficiency of services and providing assistance to small businesses and small taxpayers.

I also look at export incentives and this can be read in my report, Sir. Group health care and group life assurance for all, promoting investments, Public Service code of conduct, which is effective because we also have that provided in the Public Service Act, as a matter of priority.

I also recommend zero tolerance - Government must implement a zero tolerance policy towards corruption and put into place measures to limit corruption and promote transparency and accountability, because the prevalence of systematic corruption in Fiji impairs political and economic development and adds to the risk of the country being marginalised in the international community. I also urge Public Service Reform.

Perhaps, if I could just mention, Mr. Speaker, Sir, the acceptance or apathy towards this behaviour portrays ways a message that such unjust and despicable practices are acceptable in Fiji. Corruption is symptomatic of fundamental economic, political and institutional causes, which needs to be addressed to eliminate it.

In conclusion, Sir, I am proud to be a citizen of Fiji. I am proud to belong to the nearly 80 per cent of taxpayers not eligible for Affirmative Action handouts, and I am proud that I have travelled the path set by my humble and honest working class parents, who told me and my brothers to always honour God and country.

MR. SPEAKER.- Honourable Members, I have 13 speakers on the Batting Order, and I intend to finish all of them today. We will now adjourn for lunch.

HON. N.V.K. NAGUSUCA.- Mr. Speaker, Sir, sa 'ara na yadra. Before my contribution, I wish to quote from the Holy Bible in Ecclesiastes: 3-1 which says and I quote:

Mr. Speaker, Sir, I rise to contribute to the 2007 Appropriation Bill, which I believe, has attempted to take into consideration the differing needs of our communities.

Mr. Speaker, Sir, before I continue, I must, first of all, commend the honourable Minister for Finance and National Planning and his officials, for putting together a Budget which could only be described as the tools that will in due course, create a prosperous nation.

Mr. Speaker, Sir, development cannot be done overnight, but it is a process that takes the Government's planning over a period of time.

Mr. Speaker, Sir, Government has a challenging task to ensure equitable distribution of resources to all sectors and of course, all would want a larger piece of the cake, which is an impossible task, considering our limited resources.

Mr. Speaker, Sir, in this difficult period facing our beloved country, we can only seek the divine wisdom for guidance. I wish to quote from Proverbs; 3-5 and 6 and I quote:

"Trust in the Lord with all your heart and lean not on your own understanding. In all your ways, acknowledge him and he shall direct thy path".

Mr. Speaker, Sir, the theme of Partnership for Sustained Growth, calls for consultative approach to nation building, where both the SDL Party, Fiji Labour Party, public sector, private sector and civil society organisations must all work hand in hand, to achieve sustainable growth and improve quality of life.

Mr. Speaker, Sir, we are all aware of the current status of our economy, and the ongoing destructive verbal exchange will only further negate any hope of recovery.

Sir, further division will only make us all fall deeper into our economic abyss.

Mr. Speaker, Sir, I therefore, plead to all the leaders and the people of our beloved Fiji, to rally together for once, in jointly exploring ways of addressing some of our immediate challenges on our way to economic recovery.

Sir, we must not lose sight that six years ago, the country was in a political turmoil and the economy recorded a negative growth, following an economic boom in 1999.

Sir, while we were engaged in the restoration of economic growth and political normalcy, the rest of the world continued to forge ahead with the liberalisation of global trade, founded on strong democratic principles. Hence, Mr. Speaker, Sir, resources pertinent to the reform for Fiji, to make the necessary adjustments to align itself to the changes in global posturing for free trade has been diverted to our internal re-building. Sir, a process that I believe, the SDL Coalition Government has done successfully during its last term in Government.

Mr. Speaker, Sir, I believe the time is now perfect for Fiji to make that adjustment. The ushering of the multi-party style of governance has demonstrated to the rest of the world, that Fiji has turned around from being a State in political turmoil, to one that strongly upholds democratic principles founded on its Constitution.

Mr. Speaker, Sir, I therefore, praise the almighty God for providing the wisdom and touching the hearts of our leaders to cooperate in leadership through the multi-party governance.

Sir, the world in return have acknowledged our good efforts and in turn, reciprocated through increased funding and technical assistance in the areas of training, infrastructural development, institutional strengthening, capacity building and trade.

Mr. Speaker, Sir, the country cannot return to the black hole of near hell, that our country had experienced in 1987 and again in 2000. I therefore, thank the leaders, including the Commander of the Fiji Military Forces and his troops, for remaining firm and focussed in 2000, preventing the country from reaching destination doom. However, Sir, recent utterances from this institution and its leadership, seem to contradict the principle it upheld in 2000, causing confusions to our people and creating doubts in the minds of our trading partners, as to whether Fiji has returned fully to normalcy.

Sir, such doubt does not help the efforts of the Multi-Party Government, to secure more financial and technical assistance, increasing in market access and improving the economic climate in Fiji.

Mr. Speaker, Sir, I therefore, plead with our leaders to remain calm and discuss their differences. This is neither the time for grand standing, as they are leaders for different groups of people and their respective institutions, nor time for posturing, as we have gone past the General Elections, where our people have spoken through the ballot box.

Mr. Speaker, Sir, it is time to be seriously engage in action, through constructive dialogue and discussions. Sir, consideration of the legal process can only be the best resort, if all good faith bargaining fails. Good faith bargaining only becomes effective, if there is humility, respect, goodwill, openness and putting the interest of the people first before our own, or that of the institution we represent. It is the voluntary sorting out of differences between two differing parties, without any mediation of a third party.

Mr. Speaker, Sir, I wish to focus on what I believe are the positive aspects of the 2007 Budget.

Monetary policies: Mr. Speaker, Sir, I welcome the introduction of the National Export Strategy, which covers 13 export sectors. This is one of the initiatives to improve foreign reserves. I have noted that only $50,000 has been provided to the Ministry of Commerce and Industry. However, in further examining details of the corresponding work plan, other economic sectors have been tasked to take a lead role in the implementation of activities and to also provide the necessary resources from their own budget.

It is, therefore, critical for the new working group that will play a monitoring role on the implementation of the National Export Strategy, to immediately convene a meeting to ensure that the necessary resources from the implementing ministries are committed and specific time lines are included in the Action Plan. For this National Export Strategy to work, we need to engage rigorously with all stakeholders, for example, farmers, fishermen and resource owners so that they can appreciate the important role that they play in this supply chain.

Mr. Speaker, Sir, personal remittances is Fiji's second largest foreign exchange earner. We applaud the initiative of the Reserve Bank of Fiji (RBF) to commission a study that will be able to identify how these remittances can be used in formal sectors, sustained and expanded.

In light of the current proposal by the New Zealand Government, I suggest that the proposed scheme on labour mobility be also examined and strategies developed on how Fiji can maximise all these opportunities with other countries, including New Zealand.

As an additional strategy, I suggest that an assessment of labour mobility, relative to remittances, must be included as part of the study that will be undertaken by RBF. The outcome of the study, Sir, can then be incorporated into the development work plan of other implementing agencies.

Mr. Speaker, Sir, it is glaring to note the exclusion of the RBF as a member of the implementing agencies in the national export strategy in the labour mobility work plan. Sir, I believe, the inclusion of the RBF is vital.

Reforms: The Government has remained committed to reforming its financial management - public sector and enterprises aimed at bringing about prudent accountability, efficient and productive public service free of corruption, viable and profitable Government owned commercial entities. It is basically promoting good governance, transparency and accountability and good value for money through its costs of goods and services and equitable returns from its investment.

Public Service Reform: We all acknowledge the importance of public service reforms and the corresponding political, economic and social cost is a burden to the taxpayers of this country. Such reform means political will and I am confident that the Multi-Party Government has the will to carry out the much needed reforms in the next five years.

In designing the Reform Programme, we must ensure that the reformed Civil Service is right sized, and has the right competencies and skills if it is to be more efficient, productive and responsive and visionary in terms of our economic development. It is critical that the right sizing exercise must operate on the criteria that only promote merit. Government understands the downside of such an effort in terms of its social impact. However, in mitigation, the following processes have been very much in the Government's consideration:

(a) re-skill and up-skill workers who potentially will become victims of reform in their organisation to be able to fill gaps in other organisations within the Service and outside to participate in the existing labour mobility schemes and the proposed scheme of New Zealand;

(b) reduce the retiring age and introduce an affirmative Small Macro-Economic (SME) Scheme where the retirees can invest part of their pension in operating small businesses;

(c) retain skills and expertise (these retirees can still be available as advisers and consultants when required by Government);

(d) invest in a National Service Scheme for young school leavers between the age of 18 and 22 years to inculcate discipline and a sense of community service as well as livelihood survival skills before they pursue further studies to develop their skills and competencies for their career in life;

(e) formalise bilaterally labour mobility arrangements in the areas of sports, teaching, nursing, doctors, health care providers, peace-keepers and blue collar jobs, farming and preparing locals in established institutions to be certified and internationally recognised;

(f) negotiate with China for the recruitment of Fiji teachers that can tutor English in preparation for the Olympics with a possibility of extension after the event; and

(g) promote Fiji as a retirement home destination around the world that will benefit our people through the coming in better, modern and quality health care services.

However, Sir, one cannot ignore the inherent risks attached to any labour mobility scheme. The economic and social impact must be clearly determined and lessons learnt from current schemes must be incorporated into the new scheme to protect the interest of our people. Government must be actively involved to avoid our people becoming victims to scandalous programmes.

Public Enterprise: Mr. Speaker, Sir, Water and Sewerage Services are one of the four service sectors that have to undergo reform. Sir, I urge the Ministry of Public Enterprise to tread with caution and to undertake a cost benefit analysis of reform before proceeding with the reform.

With the planned Public Service Reform, there will be redundancies and a great number of families will not be able to afford to pay basic needs, particularly, water, if corporatised or privatised. Unemployment is still an issue of concern and self-employment is virtually impossible for new graduates especially when employers always favour those that both have the academic qualification and work experience. So, parents that have invested in the education of their children, will not reap the anticipated benefits.

Ministry of Education, Youth and Sports: The budgetary allocation of $333 million is a welcomed move, particularly, the allocation of payment to Grant-In-Aid teachers, which has been a continued concern raised by the teachers unions. The allocation of scholarships is to be applauded, but I wish to request that given the discontinuation of Foundation classes by the University of the South Pacific (USP), consideration should be given to applications by rural students completing Form Six and scoring the required marks for Foundation Courses offered by other credible institutions.

Sir, I know that the decision by USP will seriously affect students from rural communities. We were hoping that there would be a deferment of the decision until an assessment has been undertaken, but this has not eventuated.

Culture and Heritage Department: Mr. Speaker, Sir, the budget increase in some sections is applauded. Last year, in reply to His Excellency's Address on 8th August, 2005, I spoke at length on the importance of preservation of our cultural knowledge. My fellow colleague, the honourable Member for Tamavua/Laucala Communal (Roko J. Waqairatu), also raised concern on the importance of time for the collection and recording of our oral history. Funds are nothing compared to the evaporation of a culture and national heritage.

Mr. Speaker, Sir, development can no longer be seen as a single entity as this would inevitably lead to the elimination of cultural diversity and the limitation of human activity in the face of a treasured past and unpredictable future. Sir, the United Nations Development Programme (UNDP), has elaborated the notion of human development to accommodate cultural elements in development.

Police Department: Sir, increase in the Police budget is also appreciated. I salute the Commissioner of Police for his far sightedness for putting his officers with the right qualifications in the right positions. I hope that heads of other ministries or departments will learn or follow what the Police Commissioner is currently undertaking within the Police Force. I strongly believe that if all Government departments have the right people with the right qualifications and attitudes for the right positions, they will provide effective and efficient services to the people they serve.

Mr. Speaker, Sir, I will now turn to my constituency matters and wish to speak in the vernacular.

Turaga na i Liuliu ni Bose, au gadreva me'u vakaraitaka na noqu vakavinavinaka ki na Matanitu veiliutaki ena veivuke levu esa vakayacora ena noqu i Wasewase ni Veidigidigi na North East Urban Communal. Oqo na i wasewase ni veidigidigi levu duadua, ni kovuta na i wasewase ni noda Vanua, ka wili kina na yanuyanu totoka ko Rotuma. Sa tu na vakanuinui ni na sotavi na nodra gagadre se kerekere, ka sa tiko ena vei tabana ni Matanitu, ena lima na yabaki sa tiko e matada.

Vei kemuni na lewenivanua ena i Wasewase na North/East Urban, eda sa rogoca rawa na i Tuvatuva ni Lavo ni Matanitu ena yabaki 2007, au nuitaka ni da na waraka na veivuke ni Matanitu ena gauna ga ena qai yaco yani kina, ka sa tiko talega na noda i tavi meda vakaitavitaki keda kina, me qai rawa kina na bula galala kei na sautu vei keda.

Au sa kerei kemuni talega mo ni cakacaka vakaukauwa, me baleta ni ligada ga ena bula kina na noda Vanua lomani oqo ko Viti.

Mr. Speaker, Sir, with that intervention, I wish to register my support for the Bill before the august House.

HON. S.C. MAHARAJ.- Mr. Speaker, Sir, I rise to contribute to the 2007 Budget presented by the honourable Minister for Finance and National Planning on 3rd November, 2006.