Government

Fiji

sells shares

The Fiji government plans to sell off shares in companies it holds equity in or owns. The move is part of a plan for further reform of public enterprises to begin this year.

A statement from the Prime Minister’s office says the plan is based on an acceptance that public enterprises generally have performed poorly compared with their private counterparts.

The statement said the aim would be to prepare public sector

enterprises for privatisation.

Government presently owns or holds shares in 29 companies, enterprises or financial institutions.

Those most likely to be divested first are public shares in enterprises where government is a minority shareholder, such as Fiji Air and Home Finance Ltd.

The statement said the government was also seriously considering corporatising and then selling its shipyard and slipway in Suva.

But some public enterprises which enjoy dominant or market monopoly positions, such as Fiji Posts and Telecommunications Ltd, may not be privatised.

It says private enterprises not destined for privatisation will be required to run as commercial operations.

The government will also look at contracting out services.

This means government deparmtents may choose to buy services from outside if they are cheaper and more efficient those those provided by the government.