Divide and rule claim
NARUBE OFFERS ALTERNATIVE TO BOOST PRIVATE SECTOR
FOR the private sector to realise its full potential, Unity Fiji leader and former governor of the Reserve Bank of Fiji Savenaca Narube has made recommendations to Government in an alternative budget. Mr Narube proposes that:
$100 million to help small businesses;
Help the cash flow of businesses by releasing over $100m in outstanding VAT returns;
Introduce more transparency in the tender process where the minister is required to publish all exemptions from the rules of the tender process; and
Remove the long wait for government approval of all matters in starting and operating a business.
Mr Narube claims “Government intervenes heavily in the private sector forcing businesses to take political sides”.
He claimed this “divide and rule” could create fear and uncertainty in the private sector which discourages risk taking.
THE divide and rule tactic of this Government has prevented the private sector from reaching its full potential which has cost the country jobs and incomes, claims Unity Fiji party leader Savenaca Narube.
The former governor of Reserve Bank of Fiji highlighted this in an alternative budget by the political party.
In the alternative budget, to support the private sector, he proposed that $100 million to be invested to assist small businesses, over $100 million in outstanding VAT returns be released to help cashflow, introduce more transparency in the tender process where the minister is required to publish all exemptions from the rules of the tender process and remove the long wait for government approval of all matters in starting and operating a business.
He claimed Government intervened heavily in the private sector forcing businesses to take political sides.
He claimed, “this divide and rule” could create fear and uncertainty in the private sector which discourages risk taking.
“Ultimately, such a tactic stunts the growth in the private sector which leads to the creation of less jobs and less incomes.
“Government pays lip service to the private sector being the engine of growth.”
He said despite government’s claim of modernising business platforms, Fiji’s ranking in starting a business remained very low.
“Our ranking in getting credit had progressively worsened from 79th in 2015 to 165th last year. “Only twenty countries in the whole world were worse than us.
“We see our banking system flushed with liquidity, but new loans were stagnant and interest rates on loans were edging up.
“Consequently, since the crisis began, the interest rate spread is widening which implies that banks are protecting their bottom line when the entire country is suffering. I am therefore calling on the Reserve Bank of Fiji to undertake a thorough study of why we are ranked poorly in accessing credit.”
Mr Narube said in a crisis as threatening as this, the Reserve Bank must not play a subsidiary role as it is currently doing.
Government is yet to respond to this statement.