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SUVA: Fiji's military installed interim government plans to spend more than F$1 billion in an effort in jump-start the economy in its 20001 budget announced yesterday but reaction has been mixed. The Fiji Times today quoted Interim Finance Minister Ratu Jone Kubuabola as urging taxpayers not to be "short-sighted amd think only of our lot". "Rather, if we are struggling to find jobs now, we sould pose the question - what can we do to create more jobs for our children? Following the path we are currently on has not, and will not, give us the economic wellbeing that we desire," he said. The $1.096 billion budget has a net deficit of $145 million, or about four percent of the gross domestic product. The total deficit (net deficit plus debt repayments next year) is about $253 million. The administration plans to finance this through overseas and domestic loans. Highlights include: * An investment incentive package with reduction in cxompany taxes and concessions. * A reduction of corporate taxes for residents and non-residents by one percent to 34 percent, which will be further reduced to 32 percent in 2002 and 30 percent in 2003. No tax would be charged for locals who earn less than $6500. * An increase in duties on beer, spirits, cigarettes while petroleum duties have been reduced. * An increase of the military budget to $102 million. * An allocation of $212 million for education. * Restoration of the 12.5 percent civil servants' pay cut from December 1. * Reintroduction of the 10 percent value added tax on staple foods of flour, rice, tinned fish, edible oil, powdered milk removed by the deposed coalition government. But duty will also be removed from these items. * A $28.65 million affirmative action plan for indigenous Fijians and Rotumans. This will include a $10 million trust fund for indigenous business and an interest-free loan of $5 million for the Fijian Affairs Board to purchase shares in Yasana Holdings Ltd, and a $0.5 million interest free loan to assist Fijians buying back ancestral land. Independent economist Dr Mahendra Reddy, of the University of the South Pacific, said the rich would get richer and the poor become poorer under the budget. "The 2001 budget is simply a rich man's budget," he told the Daily Post. He said the reintroduction of VAT on staple foods exempted by the Mahendra Chaudhry government would mean an increase of prices which would not help low income earners or those living below the poverty line. "An ordinary Fijian will find it difficult to have these basic food items on his table each day," he said. Dr Reddy said the administration's move to offer concessions to attract foreign investment would not be of much help. "Unless we have political stability in this country, the interim administration can forget about investment." He added that the budget was too "slanted" to just one section of the country's population. Other communities, particularly ethnic Indians, had been left out. A statement by the ousted coalition government highlighted the delivery of the budget in a hotel room in contrast to the usual presentatation of the budget in the House of Representatives. "The budget was presented despite the High Court ruling that the interim regime has no legal basis," the statement said. The deposed Assistant Minister for Fijian Affairs in the Peopleıs Coalition Government, Ratu Isireli Vuibau, was filing for a judicial review in the High Court against the decision of the civil servants to disburse funds "to the people holding power illegally". The Fiji Times described the budget in an editorial as "pragmatic" and what might be expected of experienced businessmen and government administrators. "An unelected government should have been able to do more. This was a golden opportunity to introduce some much-needed measures that an elected regime would shy away from," the paper said. It said the administration was justified in increasing revenue from alcohol and tobacco but it should have gone further. "For example, a government that believes in the user pays principle might have sought to make the revenue raised from those two sources at least match their cost to the nation in terms of health treatment, lost productivity and family disruption." Samoa APIA (Pacnews): Samoa's Opposition leader Tuiatua Tupua Tamasese Efi has accused government of intimidating the media by making available public funds for the Prime Minister and Cabinet ministers to sue for defamation, Pacnews reports. "If you want to protect your good name go and pay your lawyer to do that," Tuiatua said. He was reviving criticisms of government as his Samoa National Development Party (SNDP) prepares to fight the general elections scheduled for early next year. Tuiatua said giving ministers the power to use public funds for defamation cases was unacceptable in enlightened and democratic governments. "We know power corrupts," he said. The measure was introduced two years ago by then Prime Minister Tofilau Eti Alesana when he was suing Samoa Observer newspaper for defamation. Tuiatua said as far as he knows, at least 1.3 million Tala (US$379,111) in taxpayers money were used to pay Tofilau's legal fees. His Human Rights Protection Party (HRPP), now led by Prime Minister Tuilaepa Sailele Malielegaoi, has maintained the policy despite criticism by local and overseas media. The criticism was revived when Prime Minister Tuilaepa recently talked generally of public responsibility and individual responsibility. "Where do you draw the line when the legal expenses of a Prime Minister or Minister who sues a journalist or a newspaper for defamation, is drawn from public funds?" Tuiatua asked. Previously cabinet ministers attempted to silence the Samoa Observer, the country's main newspaper, by filing legal action and then withdrawing after the newspaper had built up a huge legal bill, according to newspaper publisher Savea Sano Malifa Bougainville PORT MORESBY: Negotiations on the political future of Bougainville will resume today, reports the Post-Courier. No talks were held between the Papua New Guinea national Governmentıs negotiating team and the Bougainvillean leaders on Friday or Saturday after the Bougainvilleans team walked out of the talks on Thursday afternoon. The team, co-led by Governor John Momis and Bougainville Peopleıs Congress president Joseph Kabui, walked out of the talks after what they said was the National Governmentıs back tracking on a number of issues critical to their push for an autonomous government and a referendum on the political future of the province. Mr Kabui said yesterday afternoon he and his team was intact and would wait for talks to resume today. "Nothing happened last Friday or Saturday,ı" Mr Kabui said. He said there was an understanding reached with the National Government last Thursday that the negotiations will resume today. "There is an understanding in place that both parties will get together again and carry on the negotiations tomorrow (today)," he said. "Thatıs contained in a letter Sir Michael (Somare, Bougainville Affairs Minister and the leader of the Government team) sent to me and Governor Momis. "We are still here. "My team is all intact and we are ready to continue the negotiations." On Friday, Sir Michael told Parliament during Question Time the talks were discontinued prematurely last Thursday because the Bougainvillean leaders were unhappy with the ³wordingıı and had walked out in protest. He said the walkout by the Bougainvilleans had come at a time when discussions had reached a critical stage. Negotiations up to that time had been "very good",he said, adding his side had been in touch with the Bougainvilleans immediately to organise reconvening the talks. Sir Michael said such a walk out was expected at such negotiations. Prime Minister Sir Mekere Morauta reiterated his Governmentıs commitment to the peace process, saying Bougainville would continue to be a priority area for his Government Soloman Islands GIZO, Western Solomons: A former Malaita Eagle Force member suspected of setting fire to a building housing the office of the militia legal representative has been shot dead in the capital of the Solomon Islands, Honiara. Assistant Police Commissioner Operation, Wilfred Akao revealed that the man was shot by armed MEF militia while in police custody but died on his arrival at the Honiara National Referral Hospital. The dead man, who was one of two suspects over setting fire to the building last Friday, allegedly fled Honiara to neighboring Malaita Provincial town, Auki. Police confirmed that over the weekend, armed members loyal to the MEF spokesman, Andrew Nori, went to Auki and captured the suspect. On arrival in Honiara yesterday, police placed the suspect who was badly beaten in custody, but armed MEF militia allegedly walked into his cell and shot him in both his legs. The latest killing by militia of their former colleague in police custody climaxed an alleged split in the MEF camp over the last two weeks. The three-story building, which housed the law firm of the legal adviser of the MEF, Andrew Nori, caught fire on Friday afternoon but fire fighters were unable to douse the fire. Police in the Solomon Islands capital, Honiara, yesterday claimed that the fire was allegedly started in the third floor. The legal law firm of the MEF spokesman, Crystal Lawyers, had formerly occupied the third floor of the building, where the fire allegedly started. Other local businessı formerly occupying the building included Placemakers Hardware and the Romanos Resturant. Wilfred Akao, yesterday said due to the sensitivity of the case the preliminary investigation so far has not found any lead or suspect. He said an investigation team comprised of members of the unarmed Solomon Islands Police and MEF continued to probe the case. Sources closed to the national government yesterday said the burning down of the building had been caused by a number of reasons. Prior to the burning down of the building, discharged members of the ethnic Malaitan militia demanded their leaders pay money allegedly owed to them. A few days after the dispute, a similar fire engulfed the former headquarters of the Guadalcanal Province, seized by the MEF militia after the coup on June 5. Following this, disgruntled militia went on a drinking spree at one of the countryıs premier hotels. Disgruntled militia later harassed a member of the Solomon Islands Peace Monitoring Council. This prompted the chairman of the PMC, Sir Peter Kenilorea, to appeal to the MEF ethnic militia to stop harassing members of his group...
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