published 28 Feb 2001

The following is a reprint of a hardtalk interview given by Prime Minister Chaudhry to the Fiji Sun, published on 23 February 2001.

Sun: After your People's Coalition Government took office, the economy improved remarkably. It paved a promising outlook for every citizen of this country until the tragic events of May 19. After those political happenings, what is your view on the current state of our economy?

Chaudhry: The economy has been rapidly sliding down since May 19.

There is no investment taking place. Manufacturers are fleeing from Fiji.

Unemployment is rising by the day. Fiji is losing its export markets.

Tourists are staying away and travel agents are looking at new tourist destinations outside Fiji. The sugar industry is in immense trouble with expiring leases, farmer evictions, gradual loss of preferential markets, and sugar mill problems.

The rice industry is rapidly collapsing. The strength of our dollar is strained. Already our dollar has slided significantly against the US dollar.

To make matters worse, the regime has decided to pile load Fiji with a massive debt. We brought the debt to GDP ratio from a high of 3.8% to 1.9%.

The Qarase regime is taking this ratio not only back to where it was before, but to higher levels of over 4%. Infrastructural development is almost at a standstill, and in fact our water supply, roading, drainage and irrigation systems are collapsing.

The health system is clogged up with major problems of doctor and nurse shortage, and shortage of essential drugs.

The well-off are seeking medical treatment either abroad or with the private hospital. The poor are stranded with substandard treatment.

Sun: The poverty rate in Fiji was 25%. Are you saying that this has worsened?

Chaudhry: Certainly. Not only do we see massive unemployment now, but many workers have lost either their working hours or have had their wages reduced.

Prices, on the other hand, have been skyrocketing. We had successfully reduced the prices of essentials items for the poor to enjoy.

Inflation was taken from high levels to negative levels for 5 continuous months. Now it is estimated that the inflation rate will be over 7%.

Only this week the prices of kerosene and diesel have been increased. Fiji now is suffering from a poverty rate of about 50%.

In 1996, the poverty report had stated that the while 25% of the households were in poverty, one third were at risk of sliding into the poverty trap.

Now they have made that slide. The rich are getting richer and the poorer are getting poorer, irrespective of the race the person belongs to.

Sun: Apart from being Prime Minister, you were also responsible for Public Enterprises. What can you say about the performance of public enterprises now?

Chaudhry: Dismal. And worse then even the performance during the Soqosoqo ni Vakavulewa no Taukei (SVT) reign.

We see three major companies forecasting a combined loss of about $100m this year.

The FSC will have a loss of about $30m. The Air Pacific, which was making good money in 1999 and early 2000, is expecting a loss of $28m. And FEA is also expecting a similar loss.

Rewa Rice is doing badly now. So are other enterprises.

Beginning with the SVT government, and now with the Qarase regime, the public of Fiji have been short-changed.

The short-sighted policy of privatisation saw a company like the Government Shipyard being sold for less than $1m by the government, in terms of what the government actually received, and then repurchased for over $6m. The current regime is continuing with the SVT policies. These will surely lead the enterprises to ruin, and create added burdens on the taxpayers.

Sun: During your leadership period you really put your foot down on taxes. Why were you really on to tax compliance?

Chaudhry: This was a major weakness of the country for many years. Fiji has been losing, conservatively speaking, over $100m each year in taxes not collected.

The major culprits are big businesses, who have been making deals with those in authority. We put a stop to all this, and saw better tax compliance. The additional money raised through better tax compliance was marked to uplift the standard of living of the poor people and rural and village dwellers. We also had proposed to reform the tax system by streamlining the incentives like tax-free system. We see now that the regime, despite making big noises to the contrary some months back, is also silently adopting this policy.

SUN: Finally, as the democratically elected Prime Minister of Fiji what are your visions for the country?

CHAUDHRY: A Fiji free from racial prejudice where our people live together in peace, harmony, understanding and appreciating the diversity of our cultures.

A Fiji with high levels of economic growth, developing to the full its human and natural resources, which can provide quality, well paying jobs for the growing number of our young men and women who are crying out for a fair chance to make an honest living. A Fiji where men and women have equal opportunity to utilise their talents, develop their potential and realise their aspirations in life.

A Fiji where social justice prevails, where workers receive a fair wage for a fair day's work and are rewarded for their drive and initiative. A Fiji where rural development is given as much emphasis as urban, so that people in villages and settlements are not deprived of the benefits of modern living.

A Fiji where the indigenous people enjoy improved standards of living and lifestyles through the sustainable development of their natural resources such as land, fisheries and forests.

A Fiji where we all as citizens take special pride in preserving the unspoilt beauty and natural attractions of our environment, where we respect our bounteous gift from God and work together to keep it clean and wholesome with political and economic stability required to achieve more of our special goals.