Burns Philp Warning

A MAJOR Australian company op erating throughout the South Pa cific, Burns Philp, has predicted it will take up to five years for Fiji’s econ omy to recover from last year’s coups.

The company’s general manager for the South Pacific, Mr David McClellan, made the prediction in a submission to an Aus tralian parliamentary subcommittee con sidering Australia’s foreign relations with the South Pacific.

Burns Philp’s investments include wholesale and retail merchandising and shipping, and the company employs close to 4000 people in the South Pacific.

Mr McClellan says Fiji’s military coups had a disastrous effect on the company’s operations there, with saies falling by al most 50 per cent.

He describes the market in Fiji as very depressed with sales only recovering slowly but still 40 per cent down on budget predictions.

Mr McClellan attributes the depressed market to wage cuts, loss of tourism and loss of confidence. He said people are put ting their money straight in the bank rather than spending it.

The Burns Philp general manager says he finds it difficult to believe that any large construction projects would go ahead in the short term, but predicts a slow recov ery over the next five years. □