Briefs

Nauru signs loan agreement with ADB The Nauruan president, Bernard Dowiyogo, mid-January announced the signing of the first loan agreement between the Republic of Nauru and the Asian Development Bank (ADB).

The ADB has reviewed the Nauruan economy and an agreement on a major economic and financial adjustment pro gramme has been reached between the

bank and the government.

Subsequently, the ADB has agreed to provide Nauru with loan assistance and technical assistance grants. The agreed programme takes into account the likely exhaustion of Nauru’s phosphate reserves over the next 8-12 years.

Economic and financial structures will be put in place to allow orderly adjustment at the time when phosphate incomes and foreign exchange earnings come to an end. In preparation for this inevitable event, the government of Nauru has decided to adopt a number of measures aimed at reducing both government

spending and the fiscal deficit to sustain able levels.

Region needs to be ready for

globalisation

The South Pacific Forum Secretariat will have to help its member countries pre pare to cope with globalisation, one of the many economic issues the region will have to deal with this year. New Zealand’s high commissioner to Fiji, Tia Barrett, made the comments at the Forum Secretariat, while handing over 2.2 million New Zealand dol lars (SUSI.I million) to forum Secretary General Noel Levi.

Barrett says 1999 will be a very impor tant year as economic issues assume greater importance in the global sphere and the region needs to be ready. He says part of the Forum Secretariat’s role will be to help develop the readiness of the Forum member countries to cope with globalisa tion - a tide that will not stop.

The funds represent NZ’s annual mem bership and extra-budgetary contribution to the Forum. The NZ 2.2 million includes a regular budget contribution of SNZI.2 million, equivalent to about one-third of

the total regular budget which is mainly for the operation of the Forum Secretariat. It also includes $NZ489,000 for the opera tion of the New Zealand Trade Office in Auckland which promotes trade and investment in the Pacific Islands, and $NZ525,000 towards the extra budget to fund a number of positions directly con tributing to the delivery of the Forum Secretariat’s 1999 work programme.

Hoods devastate western fiji HEAVY rainfall associated with Cyclone Dani caused flash floods, loss of lives and severe damage in the western part of Viti Levu, Fiji’s main island, on January 20.

The heavy rainfall was caused by rain bands surrounding a cyclone which was close to Vanuatu at the time.

Fiji’s Disaster Management Council, DISMAC, was activiated but not many recovery measures were possible because of the closure of major roads, debris and landslides.

The rainfall in some areas of the west such as the Sugar City, Lautoka, was the highest on record.

The Papua New Guinea government was quick to respond with a donation of $144,000 for flood relief and rehabilita tion.

Meanwhile, the country’s major news group, The Fiji Times, which also owns PIM, has lauched a drive called Helping Hand to aid flood victims.

The Fiji Times kicked it off with a $50,000 donation, followed closely by Mobil Oil Ltd which donated $20,000.

Ansett entry sparks long-called for com

petition

Fiji’s tourism industry is keeping a keen eye on what appears to be an escalating air fare war between airlines flying from Fiji to Australia and New Zealand.

Ansett Airlines announced a new pack age for Australians flying to Fiji, after Fiji’s international carrier. Air Pacific, launched a special package in response to

an earlier fare special launched by Ansett.

Ansett and Air New Zealand jointly introduced what they called “Golden Age” airfares for senior citi zens travelling from Fiji to Australia and New Zealand.

Aimed at the over-50 age group, the airline said the older the travellers were, the bigger discounts they would get. In tongue-in-cheek full page advertisements, Air Pacific and Qantas announced “ageless” packages, saying there were no age restrictions on their fares. They are offer ing a 499-dollar (SUS2SI) return airfare to Auckland and

a return trip to Sydney for $599 (SUS3OI).

Ansett counteracted by throwing in four nights accommodation at a Nadi hotel, in a 699-dollar package for Australians flying to Fiji. The package also includes airport transfers, a daily continental breakfast and

round-trip connecting flights from

Melbourne and Brisbane. For a long time, Fiji’s tourism industry has blamed the lack of competition on the routes as one of the reasons behind sporadic drops in arrivals from particularly the Australian market.

Continued decline in Japanese tourists to Micronesia and Hawaii predicted A continued decline in Japanese tourists visiting Hawaii, Guam and the Northern Mariana Islands - particularly Saipan - is forecast by Continental Micronesia air lines. Airline vice president Wally Dias says the carrier projects a further three per cent reduction in 1999 tourists from Japan compared to last year as a result of the con tinuing Asian economic crisis. Dias says continental Micronesia has no current plans to expand Micronesian and Hawaii services from Asia, after scaling down seat availability to Micronesia. ■