Govt explores strategies to control

The Fiji Government is exploring strategies and controls to stabilise the financial situation of municipal councils.

Minister for Finance Biman Prasad said the councils face significant challenges with rental arrears, which had reached $62.2million as of December 2022.

Mr Prasad highlighted the importance of implementing successful rate collections, as the councils had not managed their funds well nor implemented successful rate collection strategies in the past.

He also expressed concerns about the capacity of the councils to deliver on their mandated roles and responsibilities, citing the financial state of the city and town councils.

“There are a number of things we need to deal with. One is the rate arrears, rate and rental collection. I understand that is a historical issue, but I think over the last so many years and also exacerbated by the pandemic the rental arrears are huge now,” Mr Prasad said.

“Majority of the default rate payers are residential owners. These are people that could afford to pay. The capacity of the municipal council to deliver on the mandated roles and responsibilities has become a major concern due to the financial state of the city and town councils.”

He said it was important to implement successful rate collections.

“The municipal councils over the years have not managed their funds well nor have they implemented successful rate collections and strategies and this is clear from the arrears that we see,” Mr Prasad said.

Mr Prasad criticised the previous FijiFirst Government for not submitting annual reports on time and reiterated the coalition government’s commitment to restore elected councils.