remaining buoyant

Fiji economy looks like remaining buoyant

Providing the forthcoming constitutional conference has no ad verse effect on business expectations and investment plans in Fiji, the country’s economy looks like being more buoyant this year than it was in 1968.

A Ministp' of Finance review on the economic situation has predicted that earnings from sugar could be $4 million more than last year and earnings from tourism could be S 3 to S 4 million more.

It stated that 1968 was a year of progress, with favourable conditions for exports, notable improvements in agricultural output, a high level of construction activity, more jobs and expanded business activity.

Exports were valued at $49 million —a figure exceeded only in 1964, when the world price of sugar soared.

The report attributed last year’s improvement in exports to record sugar sales and an improved average price; high prices for coconut pro ducts in the first half of the year; and a strong upswing in re-exports, mainly because of increased sales of petroleum and oil products to ships and aircraft.

Tourism figures showed a 20 per cent, increase over 1967. Visitors’ spending averaged nearly $2B per head, compared with under $2l in 1967 and just over $l9 in 1966.

ssm. worth of buildings

During 1968, nearly $5 million worth of new buildings were com pleted, 27 per cent, more than dur ing the previous year. Applications for residential permits went up 38 per cent, over 1967.

There were encouraging develop ments in business expectations, with Canadian, US, Australian and Jap anse firms showing increased interest in investment in Fiji. The number of registered companies rose by 14 per cent.

Banking statistics showed that de posits with commercial savings banks went up 15.7 per cent, and total de posits with trading banks 11.6 per cent.

By mid-1968 the number of wage earners was more than 8 per cent, higher than at the same period in 1967.

Between the beginning of 1966 and the end of 1968, average daily wage rates rose by 7 per cent, a year— a markedly higher rate than the in crease in retail prices.

Outlining increases in local food

, w . . , production, the Ministry’s review showed that the output of beef went up by nearly 20 per cent, and the output of butter by 12J per cent.

Because of higher local production, nee imports fell by almost 30 per ce " t * „ , , Imports rose sharply to a record ieyel of $64 million—about $l2 million more than for 1967—but of this amount, about $2 million was for goods for re-export. A little over l if d u f !l 01 ? a backlo 8 deliveries which had been delayed by dock strikes m Britain. ihe review said that taking these items into account, the rise in imports was not too far out of line with what might have been expected —partiGuJariy as devaluation resulted in higher import costs.

Government revenue reflected the buoyancy of the economy, finishing up last year with a recurrent budget sun>lus of nearly $1,600,000. th°! e -f° f - Wa f ning ’ * h ,e s f? ted * hat f ; f J/? vest . ment f ell towards the end of 1969, private con ®^P£° n u cou Jd continue to rise un matched by the country s economic expansmn.

Wage and employment increases generated by the present boom could

lead to a disturbing level of imports of consumer goods, while a compar able continued growth of exports be yond 1969 was not certain. The re view commented that it was “hoped that these adverse effects will not eventuate.”

As if to prove its own faith in Fiji’s future, the Travelodge organ isation announced plans for further expansion a few days after release of the review.

Mr. Colin Thompson, general man ager of Travelodge Fiji Ltd., said it was hoped that a $1 million hotel near Nadi Airport would be com pleted by the end of 1970.

Tenders for the 81-suite hotel had been invited, he said, and it was ex pected that the project would pro vide employment for about 100 people in the Nadi area.

Bauxite, copper

interest in Rennell

Special prospecting licences for bauxite and limestone on the British Solomon Island Protectorate’s Rennell Island, and for copper in the Koloula Valley area of Guadalcanal, have been offered to two mining com panies.

The Rennell licence, covering about 90,000 acres of land in West Rennell, has been offered to the

Japanese Mitsui Mining and Smelt ing Company. The Koloula licence has been offered to the Utah Development Company, Australian subsidiary of the US company.

Last year the Mitsui company ex plored both areas and put in a bid for licences for both. Other com panies looked the areas over and decided not to apply. The question now remains—is there enough bauxite on Rennell and enough copper on Guadalcanal to make their mining an economic proposition?