Parliament of Fiji

COMMUNICATION FROM THE CHAIR

MR. PRESIDENT.- Honourable Senators, I wish to share with you the Word of God this morning and is taken from the Book of Jeremiah: 9-23, which says, and I quote:

"The Lord says the wise should not boast off their wisdom, nor the strong of their strength, nor the rich of their wealth."

Honourable Senators, with us this morning is the honourable Speaker of the House of Representatives. Sir, we warmly welcome you and wish you a very blessed day.

CUSTOMS TARIFF ACT (BUDGET AMENDMENT) BILL, 2006

HON. SENATOR H.D. KHAN.- Mr. Speaker, Sir, I beg to move:

That a Bill to amend the Customs Tariff Act, being Bill No. 22 of 2006, be read a second time.

HON. SENATOR J.L.S. BOUWALU.- Mr. President, Sir, I beg to second the motion.

HON. SENATOR H.D. KHAN.- Mr. President, Sir, thank you for this opportunity. Sir, this Bill is one of the consequential Bills that comes about, as a result of the 2007 Appropriation Bill which we dealt with yesterday. In this particular instance, Sir, the Bill brings into effect the changes to the import excise duty, as well as other changes to the Customs Tariff Act.

This was a new tax introduced this year, if you recall, Sir, with models of other developing countries. Initially, the import duty was levied on some of the white goods at various rates between five and 10 per cent, and the intention was to cover a wider range of these products. This has now been increased or suggested to be increased as a result of this proposal to the rate of 10 per cent and 15 per cent respectively. These changes are part of the ongoing emphasis to improve the revenue collection regarding tax base and strengthening compliance.

Mr. President, Sir, the tariff schedules that we adhere to are based on the Harmonised System Nomenclature and it is therefore, critical that appropriate amendments are made to tariff schedules, to ensure facilitation of trade and revenue collection. We are part of the World Customs Organisation and as such, we continue to harmonise and update the legislation to ensure the administration and enforcement of tariff laws.

The last change to the Harmonised System was done in 2002. This proposes another set of amendments, comprising some 354 sets, which shall be inserted into the Bill. The other changes to the customs tariff related to the initiative which was announced by the honourable Minister for Finance and National Planning, to encourage domestic production of agricultural produce and as such, to increase import duty on items such as vegetables and meat that are produced locally, for example, carrots, cabbages, tomatoes, prawns, goat meat, pork, eggs, et cetera.

Mr. President, Sir, again, as announced by the honourable Minister for Finance and National Planning, Government encourages the agricultural sector through various means of assistance and concessions and this is a further feature in making sure that this encouragement is enforced and to ensure that the marketability of our produce in Fiji and overseas is supported.

Sir, we in Fiji are committed to the trade liberalisation. Our administration base will be affected negatively as a result, and will have an impact on government's revenue in years to come. The supporting factors have been justified and identified promptly and implemented to avoid any major negative impact, therefore these features, Sir.

The increase in tariff rates for some of the agricultural products and import excise on various goods will be expected to cushion the impact of reduced rates in the future, as the trade liberalisation issues come into effect. Some of the goods that are imposed with the 15 per cent import excise duty are tobacco products, spirits, cigarettes and motor vehicles. The 10 per cent covers white goods which include washing machines, televisions, microwaves, vacuum cleaners, musical instruments, other goods of white nature and the like.

Mr. President, Sir, with those comments, I commend the Bill to the House.

HON. SENATOR B. PRASAD.- Mr. President, Sir, I wish to make a very brief contribution. I shall only focus on the agricultural products. Sir, I think this measure to increase the tax or tariffs on imported fruits and vegetables have come in a bit too late. We should never had sought of all these things, if the management of our agricultural was handled professionally.

Sir, I notice that an enormous chunk of the Budget goes towards this institute which are supposed to be turning out agricultural experts. We have the Institute for Research, Extension and Training in Agriculture (IRETA) at the University of the South Pacific (USP). Its mission is to assist in meeting the needs and improving the well being of the people of the South Pacific and also responsible for developing and adapting new technologies to improve food production, resource conservation and sustainable development.

The nation seems to have gained a little from this institution, whereas in Papua New Guinea (PNG), the National Agricultural Research Institute (NARI) has changed the approach and management of local agricultural commodities.

Sir, I will use rice as an example; tomatoes, carrots and lettuce will come later. Rice is not a traditional crop in PNG but has become a staple food for most people, both for urban dwellers and those in the rural areas - very similar to what we see in Fiji today. Efforts to grow rice in PNG were very disappointing. PNG has been importing almost all of its rice and most of the vegetables from Australia. That National Agricultural Research Institute in PNG took on the challenge and in 2003 formally released four rice varieties to small holder farmers and for the upland cultivators. All four varieties are high yields, tolerant to major pests and agro-vast cultivation practices and acceptable eating qualities.

Fiji was almost self sufficient with all these commodities, but wealthy rodents wiped out the silos. Imported grains sold cheaper than locally grown rice. My figure points at the Government here. We must find pesticides to scare away these rodents, if our institutions are not geared up to provide proper seeds, training and the know-how, and seek assistance from Taiwan, India or China to promote cultivation of these staple food items and vegetables.

Sir, I wish to thank the Taiwan Technical Mission for setting up an agricultural research farm in Nacocolevu, Nadroga, and also helping set up a commercial fruit and vegetable farm for the Nayawa villagers at Oloolo. This venture has proved that with a bit of financial and technical assistance, our Fijian youth can successfully grow and market their produce. This is what the Government should be doing seriously, rather than wasting money to buy votes under the guise of affirmative action.

To set up a garden similar to the Nayawa Village Farm, the cost of the installation of the irrigation system, preparation of land, manure, seeds, garden, sheds, drainage, et cetera, could approximately cost $50,000. With $30 million escaping right under the nose of the Interim Prime Minister just before the 2001 General Elections, that would have been in the hands of our villagers as well as spent on the 600 flourishing, productive and profitable farms. Some 9,000 villagers would have been gainfully employed.

Furthermore, the entire requirements of vegetables and mostly fruits for our hotels as well as for local consumption, would have been met. There would have been millions of dollars of savings in imports and our innocent youth would have been spared from criminal activities they are forced on, because of poverty. I ask the Government to show the nation returns from its 2000/2001 $30 million investment in agriculture. If there is nothing to show, then surely it was a scam and corruption of the highest order.

Sir, there is a lot more to be said, but I will stop here because my blood pressure has gone up.

HON. SENATOR L.W. PADARATH.- Mr. President, Sir, I just like to make a very short contribution on the Bill before the House.

Sir, I would like to ask; where are the rights in providing opportunities for everyone to what is affordable? Sir, I particularly refer to the increase in white goods - washing machines, televisions, microwave, vacuum cleaners, et cetera.

Some may say that these are not critical, but my whole point is that, the common people (underprivileged), who right now are (at least) able to go and buy these items on terms in shops like courts, MHs, et cetera, find that the prices have gone up. It is limiting the rights of these people, giving them such opportunities and making it affordable to all the people.

Fruits and Vegetables: Sir, I know that under the Government's Strategic Development Plan, it is trying to cut down on imported items. Right now, fruits and vegetables are very important for hotels and the tourism industry. To increase this from three per cent to 27 per cent will only lessen or discourage people from buying them because it will cost a lot of money.

I know that even working people, including us, would like to eat imported fruits, like apples, pears and vegetables like capsicum, broccoli and tomatoes for that matter, when they are not in season. We are now not able to afford them, least of all and when we think of those even less fortunate than we are, they cannot even afford to buy them.

Sir, I would also like to make the point that the timing of the taxing of these items is very wrong, in the sense that I feel they should work hand in hand with Ministry of Agriculture in its preparation. I know that at this time, under the Government plan for reforms, when they get things off the ground like planting, for example, (I have read somewhere that Joe's Farm is intending to do special hydroponic farming where they can produce these) that they do not become a total failure. I am mindful, Sir, that in the past, at least two (I do not know how many others) and we have had hydroponic farms, that have been a total failure. Sir, we are rushing into doing this. We would not be able to meet the needs of the hotels and the tourism industry, and this would be an inconvenience not only for the hotel and tourism industry but the people as a whole.

I would also like to make the point that sometimes, because of our seasonal fruits, our children in particular, miss out on fruits that contain vitamin C and that are how children get sick quite easily. They need these fruits and this is the point I am making. We would not be able to afford them because of this increase in import tax from three per cent to 27 per cent, which is a lot of money. Those are my observations, Sir.

HON. SENATOR E.L. MALANI.- Mr. President, Sir, whilst I reluctantly support the increase in import tax on the agricultural produce as a strategy to reduce consumption and to increase revenue, I am mindful of the capacity of our farmers to meet the local demand from hotels and restaurants. I have perused the agricultural budget and do not see any increase in allowance, to assist farmers in improving production.

The issue of the renewal of expiry land leases further adds to this problem. Perhaps, we could request the Taiwanese Government to have other model farms in other provinces, as they would work with local communities, as that was done in Nadroga.

Furthermore, under the Public Private Partnership Agreement, we could enter into a partnership arrangement with multinational companies, to do value-adding for our agricultural goods. These companies will not only have the technology, but will also have the capital and will provide employment for our people.

Sir, with that brief contribution, I support the Bill before the House.

HON. SENATOR H.D. KHAN.- Mr. President, Sir, very briefly, some of the comments that have been made on the imposition of customs tariff are to be expected, considering that no one likes to pay more for goods, be it white goods, black goods, green goods or green vegetables because it affects everyone's pocket lining. Obviously, there are certain practices and tastes that we get accustomed to, which are hard to forego as time goes on.

Obviously, the comments that the poor and the marginal were getting comfortable and were being able to afford the white goods through hire purchase schemes, et cetera, is notable because that, in itself, some of the criticisms that the current Government's last six years budgets have eroded the ability of the poor people to live, are pretty hollow and we now share the same breath that these people are able to afford to buy these goods. They are available at a lower duty rate.

Mr. President, Sir, the efforts being proposed by the Government and this Bill in terms of trying to impose higher tariff or higher customs duty on vegetables and goods that are largely being targeted at the tourism industry, are justified to the extent that unless and until some sort of penal arrangement or penalties imposed, people are not prone to make these adjustments by themselves voluntarily. Sir, I come from a sector that is tourism related, and I must say that there are definitely players in our industry who do not adhere to the support that is necessary for local supplies. It is very easy to import anything and everything that you want in the hope that you can pass on the cost to the traveller, tourist and the effluent people who generally patronise these hotels and resorts. However, Sir, at the same time, the criticism that is generally levelled at our tourism industry in Fiji is that we are pricing ourselves out of the market, not only the rates, but we are definitely pricing ourselves in the market with food and beverage and value added facilities.

There is a lot of justification, Sir, in some of those comments because we have a lot of special promotional activities by the industry and this will be seen more so in the months to come with all the problems we are facing. However, when these people come to our shores, even though the promotional activities would give them concessions in room rates and other facilities that are part and parcel of the everyday tourist requirement, they will still find it prohibitive to be able to eat and drink at the many of the resorts that we have in this country. As such, you will find that a lot of these people who do take on the cheaper alternative, find themselves having little choice but go to the little restaurants, cafes and shops that are multiply abound now in the little towns that are supporting these areas. This is natural, Sir, because these little locally owned shops are obviously using local products to be able to be competitively pricing themselves on the cheaper end of the scale.

Sir, on the comments that our children will be denied the very important ingredients like Vitamin C, et cetera, because we will be imposing higher duties on imported fruits and vegetables, I find that suggestion a little hollow because we grew up on five cents pocket allowances per week and guava and cherries were good enough for our supply of Vitamin C in those days, and I do not see why our children today cannot be encouraged to do the same. Many thousands of children live in the rural areas, villages and islands who get their nutrition from other things that are grown locally, and this is what we should be encouraging. Fiji should be encouraging those good things that all of us who are in the mature or older generation have come out with, and today's children are unfortunately spoilt that they can reach out into the fridge and get these things as conveniently as possible, instead of going out and doing a few things and fending for themselves. I think all these things have to be harboured and nurtured, and the support and encouragement that we are giving through this Bill, is going to be also helping our younger and the youth to be prepared for times in case we have hardship in this country.

Sir, with those comments, I commend the Bill to the House.

Question put.

Motion agreed to.

Bill read a second time.

In Committee:

Clauses, 1, 2 and title and enacting clause agreed to.

Bill reported without amendments, read a third time and passed (Act No. of 2006).

MR. PRESIDENT.- Honourable Senators, I intend to adjourn the House for morning tea.

HON. SENATOR RATU J.L.S BOUWALU.- Mr. President, Sir, I beg to second the motion.

HON. SENATOR H.D. KHAN.- Mr. President, Sir, this is once again a consequential Bill, arising from the budgetary appropriation that we have dealt with yesterday. This Bill deals with the proposed changes to the Excise Act and as announced in the Budget Address, the rate of excise duties are to be brought in line with inflation and be increased to three per cent. This is also a procedure that has been followed in previous years to take into account the inflation and to adjust the revenue streams accordingly.

All the details of each commodity that is covered by these rates and are consequentially increased have been shown separately in the Bill that has been circulated to us.

HON. SENATOR B. PRASAD.- Mr. President, Sir, I rise to speak briefly on the Bill before the House.

Sir, I understand and, of course, it is common sense that without money you cannot do anything. We need money, the Government also needs money. The Government has to raise money and it is nothing new. It is not that we only just had a government since the last five or six years, Sir. Our country became independent in 1970 and I will speak later of the developments that have taken place since. However, I think our nation is poor today not because there is not enough money around but because of the manner in which money is being used or rather misused. Corruption in our country is already making news overseas and just last week a newspaper reported that since 1970, along with a few other Pacific Island countries, we have squandered away $70 million of aid money. It is not a proud record, Sir. I noticed another amusing feature with our corruption committee that is each time the statistics of the world's most corrupt nations come out we call for a celebration because we have either gone up a notch or have slipped a point below. We seem to be anchored somewhere on the wrong side of the mid point, in the list of most corrupt countries.

Sir, this phenomenon did not exist prior to 1987. There have been some thought provoking suggestions and amendments to the proposed Budget to raise funds rather than burdening the poor and the have-nots. My approach is going to be somewhat different, Sir. After the swearing in of the Multi-Party Cabinet, I heard a security officer telling his colleague why the honourable Prime Minister had appointed two health Ministers. He explained that the first one is there to prevent people getting sick, but if he fails, the curative Minister will provide the treatment. That got me thinking I think the Prime Minister should have corruption prevention Ministers in every Ministry. We already have 33 Ministers another 24 may not cause any problems.

Sir, that is not a joke, the message is quite clear. What I am going to say from now on will not be palatable to everyone, but facts have to be expressed and facts remain. All these talks about down-sizing and right-sizing and trimming exercise to reduce the Civil Service number to some respectable level is all a farce. The problem with this Government is, it does not know the difference between a baker and a butcher. The Information Technology has not caught up with our Government. All that seems to have happened is typewriters have been replaced with modules and keyboards.

Sir, in the business sector, Information Technology has helped trimmed the workforce. It is more efficient and cost saving and it does not cheat or discriminate. I have heard other speakers repeatedly point out that our Civil Service is overloaded and inefficient. Before I proceed any further, Sir, I have a message for the honourable Minister for Education. Professor Sivo Papet of Learning Research at the Massachusetts Institute of Technology contrasts the experiences of a 19th century surgeon and a teacher of the 21st century operating theatre and classroom respectively. The 19th century surgeon feels out of place in the 21st century operating theatre, but the 19th century teacher feels at home in the 21st century classroom.

The biggest chunk of the Budget goes to the Education Ministry every year. In addition to the millions out of the Budget, a similar amount is collected when you add up the aid-in-kind and cash from various donors and huge amounts raised through fund-raising activities in schools. The question I ask is; are we getting our money's worth?

There is a need for a complete overall of our Ministry of Education and the system. This is what Professor Shrinivasiah Muralidhar of the University of the South Pacific had to say about Science Education Curriculum:

(a) The Science Curriculum is a mile wide and an in-depth pressure to include everything under the sun.

(b) Teachers are more concerned with covering the syllabus than uncovering the concepts.

(c) People are getting test-wise and knowledge-poor for the system encourages rote learning and coaching to ensure good results.

Mr. President, Sir, still on the issue of finding some money to keep our nation going, I will take you back to the year, 1970 when our nation gained Independence. The first Prime Minister was God-sent, the paramount chief of Fiji, the late Ratu Sir Kamisese Mara, who ruled Fiji for 17 years. When one looks back at our records since Independence, all major developments were successfully completed under his leadership. To all his accolades, decorations and titles, Sir, I will recommend that the paramount chief be also referred to as the father of the nation.

His financial skills would only be matched by the honourable Member for Ba Open (M.P. Chaudhry), who led the nation for a mere 12 months. If he was allowed to serve for the entire term of five years, he still would have been the Prime Minister of Fiji because there had been no one with the acumen and skills to excel him.

Mr. President, Sir, may I digress momentarily to pay tribute to another great son of Fiji, who was always frank, honest, dedicated and a disciplined administrator, the late Savenaca Siwatibau. He was instrumental in streamlining operations at the Reserve Bank of Fiji. He did not have the comfort of the modern information systems, but he was always spot on with his economic forecasts. Today, our economy is in shambles, economists, businessmen and also the honourable Member for Ba Open (M.P. Chaudhry) kept warning the nation of the precarious financial situation of our country. All economy indicators were pointing in the negative direction. Government did not heed the warning from the experts, instead it relied on the rosy picture painted by the Governor of the Reserve Bank.

Our current Reserve Bank management is grossly inefficient. Commercial banks are running rings around it. If it was not for the public outcry, the ANZ Bank would have slapped on hefty screwed up fees and charges to its already exorbitant fee charges. A point worth noting is that except for the Bank of Baroda, all other banks are Australian owned with the exception of Habib Bank, which could end up with Australian via other countries. These banks collectively make a net annual profit in excess of $100 million and all of this money is taken out of Fiji. We need to look seriously at our bank licensing regulations to restricting these huge amounts of money going out of our country.

Mr. President, Sir, in 1956, I accompanied my father to the Bank of New South Wales in Nadi, to open a bank account with nine pounds. There was no local staff in the bank at that time. I explained to the clerk at the counter the reason for being there. He told my father and I to return when we had more money. My father went to the Gujeerati shopkeeper from where we used to purchase our groceries and clothing, and requested the mahajan to keep the money. My father never opened a bank account. The mahajan, the old Gujeerati shopkeepers have not been given the recognition they deserve for their contribution in the development of this country. The Indian community is ever so grateful for their unfaltering trusts in our grandparents. They gave goods and even cash on low interest rates for education, bidding and other financial needs. They worked just as hard as the indentured labourers in their own field and made steady financial progress. We should learn from them as well, that honest hard work paves the way to prosperity.

Prominent writers like Saten Nandan, may like to publish the history of local companies, like Tappoos, Punjas and other Gujeerati families who have taken over from old Australian companies. Farmers were blessed with the arrival of the Bank of Baroda, bulk of the farmers enjoy the services of this bank, where the fees on transactions are also cheaper and staff much friendlier.

Fiji looks on Australia as its big brother, but the offspring of Girmitayas failed otherwise. Sir, when farmers queried why payment for their cane was so low, the answer had always been there was not enough cane, it was all molasses. Thanks to the establishment of some of the sugarcane unions that finally managed to get rid of the CSR company. Mill efficiency and the price of sugar improved considerably. The CSR departed but there was another company minting money. The problem was that most of the departmental heads were Australians.

The then Inland Revenue Department conveniently overlooked the amount of money the Qantas Airways was charging various airlines for providing ground handling services at Nadi Airport. The company paid its workers peanuts and charged exorbitant ground handling fees to the carriers. Mr. Apisai Tora was a thorn in the airlines' cunning endeavours. He formed a union for the airline workers, through threats and actual industrial actions he was able to win respectable wages for airline workers. However, as usual, Qantas split the workers into various grades. This split the union and weakened the bargaining power. Then came the gallant licensed Aircraft Maintenance Engineer, Mr. Dhanskuh Lal Morahji, who united the workers. He formed the Air Terminal Services Limited (ATS) and through the assistance and guidance of the then Prime Minister, the late Ratu Sir Kamisese Mara, Qantas was replaced and they took over the ground handling services, including engineering, cargo and cabin services at Nadi International Airport. The ATS made a record profit in the first year and profits kept soaring until racism was allowed to creep in. If Morahji had continued on as Chief Executive Officer (CEO) of the Company, the first five star hotel on Denarau Island would have belonged to ATS and it would have invested in other business ventures around Fiji. Majority shareholding in the national airline was an option being looked at, but money has been slipping out unchecked.

Mr. President, Sir, let us look at the affairs of the International Airport today. Government is not getting a fair return from its investment in the airport. The Strategic Air Services Limited (SASL) and Airports Fiji Limited (AFL) are fighting a court battle, hundreds and thousands of dollars are missing. There was a rumour that SASL donated a hefty sum to the Soqosoqo Duavata Lewenivanua (SDL) Party for their campaign in the last General Elections. An executive officer from the Accounts Section had been terminated when the missing thousands of dollars was queried. Factions surfaced when the case goes before the court, but then again, Sir, there is always a possibility of settlements outside court.

Mr. President, Sir, we have seen two Australian companies depart, the CSR and then Qantas. My question is; the Australian gold mining company, under which name is it operating under? It is still here, yet, it is not making any profit. This should be the third company to go. What remains to be seen, Sir, who goes first, Peter Foster or the gold mine?

Still on Australia, Sir, only three out of 34 sugar growing countries, Thailand, Australia and Mexico, successfully lobbied to deny us the preferential price for sugar at the European Union Conference. According to media reports, part of the blame goes to our representatives who lacked or failed to adopt appropriate lobbying tactics. Whatever happened, my point here is that Australia should have been more sympathetic bearing in mind the trade benefit it enjoys. A lot of our money is being sucked away by these unscrupulous, so-called contributors to our economy.

On the other hand, Australian is known to have given Saddam Hussein $300 million on behalf of Australian Wheat Board to sell its wheat to Iraq. This news is making world headlines. The move is likely to bring about a change in the Government of Australia in the next General Elections. The memory of Australia refusing our request for short-term unskilled seasonal workers is still fresh. The financial aid that Fiji receives from Australia comes in with all sorts of strings attached, it gets more from Fiji than it gives. Everyone knows it. It time we make our firm commitment to Asian nations, China, India, Taiwan, Malaysia and Papua New Guinea. They will provide better access and reciprocate.

India is the world's largest automobile manufacturer, and now the French manufacturer, Peugeot has joined the Mahendra Group for the assembly of French models in India. Mercedes, fiat and Morris models are being produced and offer stiff competition to Japanese and other European manufacturers. We do not have to import anything from Australia. With doors opening to Asian countries, our tourism will also improve ten-folds.

The garment industry will benefit when shipping arrangements with these five miles countries, both financially and technically is finalised.

Presently, goods from China have to be routed via Australia. When we begin regular train, airline and shipping services will be much more reliable and affordable. Food and grain, fabrics and machinery, drugs and cosmetics, educational material and technical equipment of much superior quality at affordable price could be sourced from Asian block. The sooner we say goodbye to Australia, the better, Sir. Our economy will pick up one day. Australia will come back to us, with all sorts of concessions to opening doors again. The Pacific basin will be able to isolate Australia. Without it, the region will enjoy stability.

Sir, our Government has blindly accepted Australia as a genuine and true friend. Let us just have them as an acquaintance. Papua New Guinea Prime Minister (Sir Michael Somare) and Solomon Islands Prime Minister (Hon. Manasseh Sogavare) both feel sorry for the trust they have pledged to Australia.

Sir, I can go on, and the list will not end. Let us stop the linkage because "linkage" is a mild term for corruption. We are poor today because and yet we are putting all sorts of prices to essential items, increasing taxes, making all sorts of excuses to make money to cover for all that money that has gone because of corrupt practices.

HON. SENATOR H.D. KHAN.- Mr. President, Sir, it appears that the enthusiasm of the honourable Senators have somewhat dampened, and I do not blame them because of the scenario that we have been faced with. A lot of people are perhaps facing confusion and like them, I myself have had difficulty trying to piece words together, and I can understand why the response has been very lukewarm.

Sir, briefly on some of the comments made by the honourable Senator Prasad, I think they are very entertaining and obviously a very laudable contribution by him, but unfortunately for my good friend, the honourable Senator Prasad, the press decided not to come here today because they have other things to chase in the City. Hence, maybe you will not be able to get the highlight that you propose to have got for yourself.

Nonetheless, I agree with many of the comments that you have made. However, I would like to address a few comments and maybe make some more contribution on education. It would seem that we always complain about the level of education and the extent of assistance given by the Government, not only this Government, but previous governments on the level of education and the unparallel amount of assistance being given as can be seen by the budgetary allocations to education. However, we fail to recognise that our level of literacy and standard of education (we need to see over 90 per cent) is perhaps unparallel in the region in terms of the undeveloped and developing island nations.

Sir, all the races (and I say that with the largest and greatest respect to the Indo-Fijian community) haves benefited hugely through the assistance being given by the governments, especially largely Fijian dominated governments, and now the SDL Government in terms of the education standards being attained. The Indo-Fijian students not only attain education, but also very high level of respectability as students. Obviously our investment in them, regardless of what they do and where they live, choose to go offshore and live elsewhere. The Government is not prejudiced or biased against what they do and where they go, we continue to offer them education and these children, young men and women, when they migrate, they take with them all the facilities and contributions made by the people of Fiji. They go and live in wherever country they go and they appreciate if you need them today, as to what they had brought with them from Fiji.

This level of education is going to continue as you can see from the Budget allocations made, regardless of what the existing students and future adults are going to do in the vocation that they choose. I think we do respect all the communities of this country, all the gratitude to this country and the previous governments, as well as the current Government in sincerity for the level of education that is being provided, especially by the community and religious schools.

I head a religious organisation that runs 24 schools, and I can say with greatest of sincerity, the amount of difference it makes for the Government allocations that we receive in schools.

Now, with the grant-in-aid teachers getting $21 million in terms of salary (and all schools had to foot about 20 per cent from their own pockets, is going to be of greater assistance to the teachers, school committees and religious-run schools for the assistance that will come as a result of this. We would not survive if it were not for the Government assistance because salary is the largest component of any organisation and Civil Service and teachers are no less the takers of this contribution.

With all due respect, I would like to add that as a community, we are all thankful for the allocation of education being given to us.

On bank profits, Sir, I agree with the honourable Senator Prasad that the foreign banks particularly, make huge amounts of money in Fiji, but again, Sir, in reflection, that is not unique to Fiji. These banks make up to $3 million to $3.5 million each in their country, so collectively they have made $100 million in Fiji. However, they make $3 billion to $3.5 billion. Most of the Australian and New Zealand banks make these amounts in their country, and this is because that is the nature of the institutions that they represent.

Some of the largest capitalist organisations in the world are banks. Banks now are no longer just banks in the pure nature of doing banking facilities over the counter, they are multi-faceted conglomerates. They do real estate, stocktaking, and a lot of things because of the nature of their business. Sir, it is a known idiom and a known fact that money make the greatest amount of money. If you have money, it makes money, and that is the nature of these animals, if you will so to speak. However, fortunately or unfortunately, in this country, we need these institutions because if we do not have the comfort and the security of having the services of foreign banks, which have a very credible credit strength overseas, we as a country will not be recognised as an institution from an investor's point of view. They will not come to Fiji because the banks of Fiji here, with 75 branches because the credibility of that bank, no matter how many branches we have in Fiji, will not stand up to the international rating. The only international rating that comes is the one that is given by the international rating organisations, whatever it be; moodiest, standard and poor and whatever they are. These only come to institutions that have international flags flying.

We are thankful to these banks for being in Fiji, Sir. We are thankful and grateful to these banks for supporting the national economy and being there, providing the outreach to the communities in various facets. It is understandable that years gone by, the banking industry have its own colours and own scheme, but in the current days, Sir, they reach out to everyone. I mean, the ANZ's Rural Banking is a fine example. They have gone out to the rural sector and provided the service. I would say from my previous experience, that some of these sector services they provide are not very profitable, but they are doing it in the interest of a national service, because they know the synergy is there for them to do bigger things if they do things that are smaller.

Sir, whilst the profit elements are obviously a feature (and one that perhaps reeks of large fees, et cetera), nonetheless we are thankful and grateful to these institutions for supporting our economy and for supporting the investment and trade climates that are really needed in this country.

I agree to comments made by the honourable Senator Prasad that when these three countries (Brazil, Thailand and Australia) banded together to object to the ACP countries' preferential price arrangements, the sugar industry in Fiji then protested very loudly, as to why Australia would do so, seeing that they are strong trading and economic partners with Fiji. However, at that point in time, and as usual, we were told that this is a matter of principle and not a matter of Fiji being singled out. Unfortunately for us and the ACP countries, they were successful. It is one of the reasons why you see the preferential arrangements being disbanded even though it is going to come under the World Trade Organisation (WTO) arrangements.

Nonetheless, Sir, in the same vein, Australia has been a close ally of Fiji for many many years both in trade, economic aid and other forms of aid. It is only in the recent decade that the likes of India and China have emerged as large developed nations. These Asian countries were not in the fold of that category for many many years.

At that point in time, when the British left us, Australia and New Zealand were very strong trading, economic and aid partners of ours. They came to our assistance in many facets and we are thankful to them. We continue to rely on them because of proximity and strategic location of Fiji vis a vis these larger island countries. We rely on them for a lot of assistance and in our good times and bad times, they always support us. Needless to say, many of us, perhaps, on a day to day basis, do not agree with some of their policies and political influences. However, we cannot be misguided at this point, or wherever, to say that these people have totally exploited us, because several thousands of former Fiji nationals live in those countries. They earn a decent living and are contributing back to our country through foreign remittances. This is again under the good auspicious of this country that you go with a Fijian Passport on Australian shore compared to any other passports, the friendliness and co-operation you get from Australia or New Zealand, particularly, in terms of being a Fijian citizen, is one of great comfort to Fiji. They treat you as friends and I do realise that they have some strong immigration standings in terms of our so-called "illegal entries". However, we also have similar policies in Fiji. We are very mindful, protective and we very jealously guard our immigration status in this country if we have illegal people coming in. It is in the same vein that they exercise their rights and we have to respect their sovereign rights.

Bill reported without amendments, read a third time and passed. (Act No. of 2006).

MR. PRESIDENT.- Honourable Senators, I will now adjourn the House to 9.30 a.m. on Wednesday, 6th December, 2006.