MR. PRESIDENT.- Honourable Senator Dr. Ratu Epeli Nailatikau, on behalf of this august House, I extend to you our very warmest welcome and do hope and believe with all sincerity, that in joining us, you will boost the morale in ways of performances and perhaps, our major task in reviewing legislation of our beloved country. God bless you and us all.
MINUTES
HON. LEADER OF THE HOUSE.- Mr. President, Sir, I beg to move:
That the Minutes of the sitting of the Senate held on Friday 3rd September, 2004, as previously circulated, be taken as read and be confirmed.
HON. SENATOR M. BULANAUCA.- Mr. President, Sir, I beg to second the motion.
Question put.
Motion agreed to.
COMMUNICATION FROM THE CHAIR
MR. PRESIDENT.- Honourable Senators, our scripture reading is taken from Ephesians 2: 13-14:
"13. But now, in Christ Jesus you who were once far away, have been brought near through the blood of Christ.
14. For He himself is our peace, who has made the two one and has destroyed the barrier, the dividing wall of hostility."
Honourable Senators, we have a message from the Speaker of the House of Representatives, which I will direct the Secretary-General to read.
SECRETARY-GENERAL.-
"Message No. 5/2004
To: The honourable President of Senate
1. The House of Representatives acquaints the Senate that it has passed the following Bills in which it desires the concurrence of the Senate-
1. A Bill to appropriate a further sum of Thirty Eight Million, Nine Hundred and Fifty Two Thousand, Five Hundred and Seventeen Dollars in addition to the sum previously appropriated to the services of the Government for the period ending 31st December, 2004 (Bill No. 22/2004) - Passed in the House of Representatives on 7/10/2004.
The House of Representatives also acquaints the Senate that it has passed the following Bills with amendments, which now form part of the Bill:-
1. A Bill to establish a Trust Fund for Fijians and Rotumans, to provide financial autonomy to the Bose Levu Vakaturaga, to earn income for the purposes of the Fund and for related matters (Bill No. 21/2004 - Passed in the House of Representatives on 30/09/04
2. A Bill to regulate the Financial Management Bill, 2004 (Bill No. 18/2004) - Passed in the House of Representatives on 7/10/2004.
I certify that Bill No. 22/2004 is an appropriation Bill.
Signed (Epeli Nailatikau)
Speaker
Houseof Representatives"
PAPERS LAID ON THE TABLE
Fiji Ships & Heavy Industries Ltd - Statement of Corporate Intent for the Year ending 31/12/04
(Parliamentary Paper No. 33/2004)
Lautoka City Council - Annual Report for the Year 2002
(Parliamentary Paper No. 34/2004)
Ministry of Education - Annual Report 2003
(Parliamentary Paper No. 40/2004)
Ports Terminal Limited - Annual Report 2003
(Parliamentary Paper No. 44/2004)
Yaqara Pastoral Company Limited - Annual Report 2002
(Parliamentary Paper No. 45/2004)
Nadi Town Council - Annual Report for the Year 2001
(Parliamentary Paper No. 47/2004)
Reports of the Auditor-General:
Volume 1: Audit Report on the Accounts and Finance of Government 2003
(Parliamentary Paper No. 49/2004)
Volume 2: General Administration Sector - 2003
(Parliamentary Paper No. 50/2004)
Volume 3: Social Services Sector - 2003
(Parliamentary Paper No. 51/2004)
Volume 4: Economic Services Sector - 2003
(Parliamentary Paper No. 52/2004)
Volume 5: Infrastructure Sector - 2003
(Parliamentary Paper No. 53/2004)
Accounts and Finance for the Year ended 31 December, 2004
(Parliamentary Paper No. 59/2004)
Prime Minister's Office - For The Good of All - A progress Report on the Implementation of Affirmative Action Programmes under the Social Justice Act: 2002-2003
(Parliamentary Paper No. 66/2004)
First Interim Report of the Auditor-General - Special Investigations Report No. 1 of 2004
(Parliamentary Paper No. 67/2004)
PRESENTATION OF REPORTS
Report of the Joint Sector Standing Committee on
Economic Services and Administrative Services
on the Financial Management Bill, 2004 (Bill No. 18 of 2004)
HON. SENATOR RATU K.M. TAUKEINIKORO.- Mr. President, Sir, I rise this morning, in my capacity as Member of the Joint Sector Committee on Economic Services, to present a brief report on the Committee's deliberations on the Financial Management Bill, 2004, Bill No. 18 of 2004.
Mr. President, Sir, the Bill was originally referred to the Sector Standing Committee on Economic Services by the House of Representatives on 11th August, 2004. It was subsequently referred to the Joint Sector Standing Committee on Economic Services and Administrative Services.
The Bill provides a new framework for financial management system of the State, both at the whole of Government level and the State entity level.
The reform is intended to accommodate the changing ways with which we do business in the workplace, that is in-keeping with good governance and the need to be accountable and transparent.
Mr. President, Sir, the aim of this Bill is to:
(a) address the poor linkages between the policy decisions taken by Government and its subsequent implementation, so as to ensure that timely, reliable and relevant information are the basis on which executive decisions are to be made;
(b) shift the focus from input-based budgeting that is, cash accounting, to performance-based output budgeting, that is, accrual accounting;
(c) improve accountability; and
(d) decentralise decision-making.
The Committee received submissions on the Bill from relevant organisations and departments.
The Committee received 18 submissions and met on 32 separate occasions to deliberate on the Bill. It was also briefed on the salient features of the Bill by the officials of the Ministry of Finance and National Planning, the arm that will be responsible for the implementation of the Bill, as well as the Parliamentary Counsel.
The Committee deliberated quite extensively on the 84 clauses and the three Schedules in the Bill, taking into account the merits and demerits of accrual accounting, as opposed to the existing cash accounting system and related costs. These and other considerations are contained in the report.
The Committee assessed the Bill from a holistic perspective, having considered various options, given the fact that these reforms have been in the pipeline since 1995.
The Committee's substantive recommendations are contained on pages 118 to 131 of the Report.
Mr. President, Sir, I am very pleased to present to this august House, the Report of the Joint Sector Standing Committee on Economic and Administrative Services on its deliberations on this complex and very important Bill. In echoing the Chairman's appreciation, I also extend my appreciation to all those who facilitated the work of the Committee and to those who assisted through their submissions and briefings.
Report of the Joint Sector Committee on Natural
Resources and Social Services on the
Fijians Trust Fund Bill, 2004 (Bill No. 21 of 2004)
HON. SENATOR PROFESSOR A. RAVUVU.- Mr. President, Sir, I rise as a Member of the Joint Sector Standing Committee on Natural Resources and Social Services, to present a brief report on the Fijians Trust Fund Bill, 2004, Bill No. 21 of 2004.
Mr. President, Sir, this Bill was originally referred by the House of Representatives to the Sector Standing Committee on Social Services to scrutinise and report back to the House at the September sitting. The Bill was subsequently referred to and was scrutinised by the Joint Sector Standing Committee on Natural Resources and Social Services.
The Committee received submissions on the Bill from relevant organisations, departments and stakeholders.
Mr. President, Sir, the Committee noted that the Fijians Trust Fund was formally established in December 2001 under the auspicious of a Trust Deed for charitable purposes with a capital endowment from Government of $10 million. Further, endowments of $10 million each were made in 2002 and 2003. In addition to these grants, arrangements were made to transfer $10 million of class "B" shares, held by the FAB in the Fijian Holdings Limited to the Fijians Trust Fund. The beneficiaries of the Fund are the indigenous Fijians and Rotumans and their institutions.
The total equity of the Trust Fund was $33.02 million in 2003, of which $3.02 million is retained earnings and the remaining $30 million comprising the annual capital endowment between 2001 and 2003 of $10 million annually.
The Trust Fund is invested for the benefit of the beneficiaries, in investment areas both locally and abroad, which generates both good and steady returns.
The Fijians Trust Fund, which now exists under the guardianship of the Board of Trustees and the Trustees Act, will now be terminated and replaced by the Fijians Trust Fund established by this Bill.
The Trust Fund, under the Bill, will now be a Statutory Trust Fund, which is to be governed and administered by a Trust Fund Board. The powers that were contained in the Trusts Act will now be given to a Trust Fund Board.
The Committee also noted that the Bill stipulates that the net income only of the invested funds can be used for the purposes of the Fund as outlined in clause 4, which is to primarily provide financial independence and autonomy to the running of the Bose Levu Vakaturaga (BLV).
Its other purposes are the provisions of funds for programmes that will develop the Fijian and Rotuman languages, art and culture, research in the language and the funding of programmes aimed at developing the management, leadership and entrepreneurial skills of the indigenous Fijians and Rotumans.
The Committee also noted that a major property investment currently pursued by the Trust Fund is the construction of the Draiba Complex, which includes the meeting house of the BLV. It is anticipated that an area of the complex, shall be rented by Government for an agreed period, thereby, providing annual rental income.