Thank you Ross Porter, President of the Australia-Fiji Business
Council, Martin Darveniza, President of the Fiji-Australia Business
Council, the Hon Kaliopate Tavola, Fiji Minister for Foreign Affairs
and Trade, the Hon Tomasi Vuetilovoni, Fiji Minister for Commerce,
Business Development and Investment and Mr Bob Lyon from the ANZ
Bank, distinguished guests, ladies and gentlemen.
I am very pleased to be here tonight, at the beginning of your
annual joint business forum.
I last addressed many of you in Fiji in March this year.
It was a most productive visit.
I obtained a first-hand appreciation of Australia's involvement
in the Fiji economy - my visit to an Australian joint venture tourist
resort and an Australian-owned garment factory, employing over 400
Fiji Islanders, was particularly valuable.
And thanks to discussions with government ministers and the business
community - including many of you - I gained a very useful insight
into the business climate in Fiji and the challenges and opportunities
we face in strengthening trade and investment between our two countries.
Of course, governments look to business and, in particular, the
people-to-people links fostered through the business councils, to
drive the trade and investment agenda.
Let me say at the outset how much the Australia Government appreciates
the contribution of the Australia-Fiji and Fiji-Australia Business
Councils in boosting the long-standing commercial links between
Australia and Fiji.
Business links strong and growing
The theme of this year's business Forum "Fiji: Open and ready for
your business" is well chosen.
Indeed Fiji is a substantial market for Australian goods, services
and investment. And Australia is Fiji's largest export destination.
Two-way trade in goods and services is around $1.3 billion each
year - that's both merchandise and services.
Australian investment in Fiji stands at around $2 billion - clearly
Australian companies see Fiji as a good place to do business.
Indeed, Fiji is a natural market for Australia: it is close to
Australia, its legal, banking and financial structures are familiar
and English is the business language.
Australian TCF companies have a very firm foothold in the Fijian
economy: over the past 14 years, they have either established operations
in Fiji or sourced product from Fiji.
Australia is also a long-term and stable supplier and investor
in the Fiji processed food sector. In some instances, Fiji adds
value to Australian raw materials for export to other markets -
including Australia.
Goodman Fielder has very substantial investments in this sector
of the Fiji economy and - gratifyingly - these are operating very
well.
There are also spin offs in the hospitality sector, where tourists
demand high quality products such as Australian wines - Australia
is only too happy to supply this sector.
I should also mention the growing education links, exemplified
by joint ventures between Australian and Fijian institutions to
provide specialist training and by the presence of a Central Queensland
University campus in Suva.
New opportunities
So we share a healthy and well-established trade and investment
relationship, developed over many years. But we also need to be
alert to new opportunities.
We are encouraged by recent developments in Fiji's economy and
are optimistic about the future.
The forecast 4.4 per cent growth figures for 2002 and the projected
figures of over 5 per cent in coming years are very good, especially
considering the problems Fiji has experienced during the past few
years.
We commend the National Economic Summit theme of "Rebuilding confidence
for stability and growth for a peaceful and prosperous Fiji" - confidence
and stability are absolutely necessary if we are to expand trade
and investment.
And they will be important for some of the big projects in the
pipeline, especially in the tourism industry.
I know Australian investors have showed continued faith in Fiji
as a unique travel destination.
This is not surprising: Fiji has a truly wonderful resource in
the beauty of its islands and the warmth of its people.
It now has an image as a safe, affordable and different holiday
destination, and has carved out a niche for itself in the prosperous
family holiday market.
Visitor numbers have picked up tremendously and are reaching record
levels.
It is exciting news that several new tourist developments are planned
for Fiji over the next few years, as well as the upgrading and refurbishment
of several existing tourist facilities.
I was very lucky to get a taste of the truly world-class facilities
Fiji offers the tourist when I stayed at the Sheraton resort on
Denarau Island and visited the new Outrigger resort, during my visit
last March.
Martin Darveniza, President of the Fiji Australia Business Council
and Managing Director of Tabua ("Tam-bua") Investments, the developers
of Denarau Island, told me that there were a number of projects
in the pipeline for Denarau including three hotel developments,
a new golf course and a large residential development project.
It is pleasing to hear that the Fiji Government is investing substantial
funds in the infrastructure to cater to these and other developments
- a good example of private enterprise / government co-operation.
I understand that major developments are planned in port, bridge
and road construction, transport infrastructure, water supply, telecommunications
and power generation sectors - a total potential investment of over
one billion Fiji dollars over the next few years.
This is all good news and will increase Australian interest in
doing business with Fiji - indeed new opportunities beckon:
Opportunities will also emerge in exciting new areas such the production
and distribution of film and television programs, computer software,
and for e‑commerce and related IT activities.
And Fiji's position on the Cable and Wireless Southern Cross fibre-optic
communications cable across the Pacific positions it perfectly as
a base for these industries.
The Studio City audio-visual industry project, which has substantial
Australian interest, is particularly exciting as it opens up a whole
new industry sector for Fiji, and projects it well beyond its shores.
Australia and Fiji have much to share in the IT and communications
sphere - there are any number of Australian hardware and software
applications that would be useful as the ICT revolution takes hold
in Fiji.
In sum, there is much scope for Australia and Fiji to do more business
together, in a variety of sectors.
Clearing the way for further business
One important theme that emerged from my discussions in Fiji last
March was the role of government in creating the right conditions
for bilateral business links, particularly in reducing barriers
to trade.
My government will of course do what it can to facilitate trade
between our two countries.
Under the SPARTECA agreement, Fiji TCF exports may enter Australia
duty‑free, provided the Forum content is 50 per cent or higher
- this is a significant opportunity.
On top of that, we introduced the SPARTECA (TCF Provisions) Scheme
to provide further opportunities for Fiji's TCF industry.
The scheme is currently being reviewed. I don't know yet what conclusions
will be reached but rest assured that each submission is being considered
carefully.
I hope that the Government will be in a position to announce the
outcome of the review before Christmas.
I am very pleased to advise that Biosecurity Australia has completed
its review of "Quarantine Requirements for the Import of Fijian
Papaya to Australia" and Fiji will again be able to export
papaya to Australia.
Authorities in both Australia and Fiji have agreed on a treatment
process for exports of papaya that will protect Australia from quarantine
risks.
This is a win for bilateral trade, and opens up opportunities for
Fiji to increase its exports to Australia.
Australia and Fiji also have a common interest in reforming our
sugar industries. As Prime Minister Qarase has said, Fiji's sugar
industry needs to restructure to remain competitive. This is also
true of our own sugar industry.
Trade liberalisation: good business sense
Given that the theme of the forum is "Fiji: open and ready for
your business" I should say a few words about trade liberalisation.
Trade liberalisation makes good business sense. It creates a level
playing field where goods and services compete on price and quality
alone, to the ultimate benefit of us all.
It used to be thought that high levels of protection were the way
to build the economy and to protect local jobs. Experience in Australia
and other countries suggests otherwise.
In the 60s and 70s high tariffs imposed high costs on industry
and left Australia with an uncompetitive, low growth economy.
Liberalisation has since allowed Australian industries to seize
new opportunities.
In all, Australia has become a much more favourable environment
for business.
Similarly, those countries that have participated most actively
in the world economy have prospered and improved living standards
for their people.
During the past 20 years or so, many developing countries have
joined early trailblazers like Korea and become the 'new globalisers'.
These countries have embraced trade liberalisation and opened up
to foreign investment. They have gained access to foreign savings,
technology and the global economy.
Similar challenges now face Fiji.
Fiji should not fear these challenges - it should welcome them
as an opportunity for growth, innovation and increased efficiencies,
as Australia does.
As a relatively small market, Australia, like Fiji, will always
be particularly dependent on trade to generate new jobs and greater
wealth.
That's why Australia's overall trade strategy is to pursue opportunities
anywhere it can, be it at the multilateral, regional or bilateral
level.
Of course, those opportunities must complement each other - and
ultimately must support the global trade negotiations now under
way at the World Trade Organisation.
Australia looks forward to working with Fiji to promote freer trade
in the region.
Australia and Fiji have significant shared interests in ensuring
a fair deal on agriculture in the next multilateral trade round.
It is not fair that our farmers should have to compete with subsidy-driven
farmers and farming industries in the developed world. We should
work together to bring about reforms in this important sector.
I note that there is a session in the business forum on the prospects
and opportunities arising out of AFTERA, PICTA and PACER .
These agreements provide a basis for increasing regional integration,
economic opportunities and competitiveness. They will prepare South
Pacific economies to respond to globalisation.
I encourage you to think seriously about how these agreements can
help your business: I suspect they will create new opportunities
for many of you.
Conclusion
May I conclude by expressing once again my optimism about the future
of the relationship between Fiji and Australia.
Fiji is well and truly open and ready for business.
There is much that can be done, by Government and industry, to
build on our already strong business links and explore the potential
that lies there waiting to be exploited.
The Business Councils efforts will be important in boosting the
trade and economic relationship even further.
Let me therefore wish you a successful meeting. I look forward
to hearing the outcome of your deliberations.
Thank you.
