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Issue No: 531; 1 March 2001The garment industry believes that more garment factories are likely to close in the coming weeks. Media reports quote the President of the Fiji-Australia Business Council, Mark Halabe as saying that he expects more factories to close and workers to be laid off in the coming weeks. He is quoted as saying: "Buyers from overseas will not do business if there are threats of trade bans and political instability. Its simple - if there is instability there will be no orders". Two factories based in Lautoka closed down and removed equipment from their premises two weeks ago. About 1000 workers were laid off. Numerous reasons were cited, but it is understood that the main reason for one of them closing was the expiry of the 13-year tax holiday which it received. The regime after the 1987 military coups had introduced a 13-year tax free holiday package to attract investors. The Qarase regime has recently announced that there will be no new tax holidays. Another factory closed because it had financial difficulties. One of the two factories closed is relocating to Vietnam. |
People's Coalition Government - Fiji Islands |