permits'

Solomons’ outlet better

Solomon Islands Central Bank Governor, Mr Tony Hughes has said the resump tion of economic growth in 1987/88 is now a strong possibility because the govern ment, as well as the private sector,is waking up to invest ment opportunities. Mr Hughes was speaking at the presenta tion of the bank’s 1986 report.

He said the country’s economy continued to grapple with the reality of reduced export in comes, structural deficits in the balance of payments and an inadequate level of public and private sector investment.

Encouraging features in cluded a growing understan ding in the community of the need for adjustment in re sponse to the fall in external income , with the fruitful dia logue which had taen place between the government, pri vate sector and trade unions. A great amount of pre-investment activity underway should lead to an increase in investment in the productive sectors of the economy in 1987/88. Mr Hughes said exports of copra and palm oil products were depressed by both low prices and the disruption caused by Cyclone Namu, but, on the

positive side, the fishing and timber industries had strong performances and were ex pected to continue that trend in 1987.

National income rose by almost 5% in nominal terms, but, when the effects of inflation and population growth were taken into account, real income fell by about 10% to 15%. The balance of payments showed a surplus of about SS6 million (aboutsUS 3 million), a turn around from the 1985 trade deficit and caused by reception of a grant of SSI6 million (about SUSB million) under the European Community’s Stabex scheme as compensation for lower commodity export ear nings. In addition there were strong flows of aid from abroad in the wake of Cyclone Namu.

The trade account was in deficit by $525 million (about SUS 12.5 million) and the services account by $549 million (about SUS 24.5 million). These de ficits were partly offset by a surplus of $552 million (aboutsUS 26 million) giving an overall current account de ficit of $522 million (about SUSII million), which was more than offset by capital flows of $528 million(about SUSI 4 million).

marine water quality and marine life is likely to be less than the current levels of im pact: tailings will settle rapidly at the pipeline outfall because they are thickened and have not been dispersed by the full flow of the river; the fine com ponent of the tailing is bound up within the tailing and is not expected to separate out; aci dification and release of heavy metals will be minimal, and the wind and wave climate in the Bay is not sufficient to remobil ise significant volumes of tail ings.

With the limited tailings dis persion the impact on animals on or in the sea floor should be reduced.

Rise in Fiji’s

industrial

production

Fiji’s all items Industrial Pro duction Index recorded an in crease, unadjusted for seasonal variations, for 1986 of 19.6% over 1985. The unusually high increase was attributed largely to the record sugar manufac ture, an increase of 74.4 % also being recorded in the fish can ning industry.

The Export Goods Index in creased by an average 50.1%, the Investments Goods Index by 2.5% and the Other Group Index by 7.8%.ANZ cuts loan rates in Fiji. The Australia and New Zealand Banking Group Ltd in Fiji has reduced its lending rates by 1% on certain categories of loans involving agriculture, exports and owner occupied houses, with effect from April 22. The average interest rate for owner occupied housing falls to 10.5% and for agriculture loans to just under 10%. Chief manager Mr Gavin Barnes said the reduction accentuated the bank’s desire to assist in priority lending and is the third reduction since November 1986.

Naval base

transfer

The PNG Defence Depart ment will spend nearly K 1 million (aboutsUSl.l million)

over the next two years in transferring its naval base from Lombrum, in Manus Island, to Port Moresby. The Americans established a naval base at Lombrum in World War 11, and it was later maintained by Australia until it was handed over to PNG in 1974.

Record batch

of building

permits'

PNG’s National Capital Dis trict Building Authority approved a record number of new building permits last year involving building costs totalling K 71.4 million (about SUS 80 million) for 654 buildings including the new shopping complexes at Boroko and Gerehu.

According to Mr Jack Pidik, chairman of the Building Board, new residential buil dings were, generally, high cost types, development of low-cost housing having dropped dramatically. Port Moresby city authorities are concerned that if the trend continues, it may force the low-income popula tion to rely on illegal settlements for housing.

Take-over

bids for Pafco

The Pacific Fishing Com pany, based in Fiji’s old capital of Levuka, and 96% owned by the Fiji Government with local shareholders holding the re mainder, has attracted take over offers from interests in Australia, the United States (Bumble Bee Seafoods of San Diego), Europe and Canada.

The company, operator of fish freezing and canning factories, has duty-free access to the European Common Market through the Lome Convention, a valuable facility attracting multi-million dollar bids. The Government which bought out its Japanese partner, C. Itoh, has made no statement yet.

When the government took over last year, the factory out put was 50 tonnes of canned tuna a day. Tuna exports are expected to realise about SF27 million (about $U525.224 mil lion this year.