Issue No: 867; 20 June 2001

The Lautoka based DVH Textile Mills (Fiji) Ltd, did not open for business on Tuesday when workers returned to work. Over 100 workers worked for the factory.

Over the past year, numerous factories have shut their doors in Lautoka. These include Trident Garments, Radar Pacific, DG Garments, Nu Star Garments, and Victoria Apparels. Some factories in Suva have also shut down, while some have been burnt under suspicious circumstances.

The closure of the factories has been attributed to the termination of the tax-free factory scheme, and to the terrorist activities. Year 2000's terrorist activities, which was allegedly financed by some businessmen associated with the garment industry, caused a collapse in the ability of the country to supply materials reliably. But the single most important cause of the collapse of the industry has been the expiring tax-free status of most factories.

The military backed regime after the 1987 coups had introduced a 13-year tax-free factory scheme in 1989. These benefits have now begun expiring, thereby leading some factories to quit the industry.

Meanwhile the garment industry is holding the Qarase regime hostage and demanding that new tax-free measures be granted to it.