New ‘work’ zones
Experts to assist
THIRTY-SIX years ago, two experts on tax-free zones were in Fiji under a United Nations Industrial Development Organisation (UNIDO) sponsorship to advise the then government on the development and operation of the zones.
According to an article published by on May 9 that year, the experts were Tom Kelleher and Sean Murray, both of Shannon in Ireland, who had set up the world’s first tax-free zone in 1959.
The men had worked for Shannon Development, an Irish government organisation which set up the country’s first such zone.
“Our main purpose is to work with the Ministry of Trade and Commerce to refine and develop the organisation and administration of the tax-free zones and factories,” Mr Kelleher told
Both Mr Kelleher and Mr Murray said the tax-free zones would be beneficial for Fiji.
“Fiji has a lot of potential to succeed as a tax-free zone and it has a good package to offer,” Mr Kelleher said.
According to the article, the country was reasonably well developed with infrastructure, financial services and a good workforce.
Mr Kellher said Fiji had a good banking system, a developed transport and freight system, which could be improved to meet additional demands, and an educated workforce capable of learning industrial skills.
But he said Fiji’s telecommunications system would have to be upgraded to meet the requirements of large scale international trading.
“And above all you have a government which is committed to providing backing to private enterprise and improving the economy,” Mr Murray said.
However, Mr Kelleher said it was important to stress that the revival of any economy needed not depend on the success of tax-free zones alone.
“It cannot be looked at in isolation,” he said.
“There are other factors, such as infrastructure, education, which play a role in the economy.
“For instance, if Fiji develops to become the producer of electronic-ware in the South Pacific, it would need an education system to develop and provide a workforce that is versed in electronics.”
Mr Kelleher said much of the criticism aimed at these zones were based on misinformation.
“In any industrial society, there will always be businesses which don’t succeed, and tax-free zones are no exception,” he said.
“But assuming that the worst happens and the idea does not succeed in Fiji, there will be areas equipped with all facilities for industry to start up.”
Fiji has a lot of potential to succeed as a tax-free zone and it has a good package to offer
– Tom Kelleher