statement for future

Sope reassures investors with a positive policy

By M are Neil-Jones

The new Sope-led Vanuatu government has moved quickly to alleviate nervous investors

over another change in government with the release of its Policy 2000 statement and

proposed legislation to

encourage more investment.

The Year 2000 policy statement has put a major emphasis on

improvements in the Agricultural

sector to boost Ni Vanuatu business development stating, “A greater Ni Vanuatu participation in the economy is of paramount impor tance, especially in the rural agricultural sector.”

The government will set up an

Agricultural Development Bank that

will work in association with Deptartment of Ni Vanuatu Business Development and the Department of Agriculture to promote Ni Vanuatu business development in the rural sector. Credit schemes and cooperatives will be set up to help Ni Vanuatu involvement in business. In the past however this has not worked with the Development Bank getting into serious financial trouble because of giving bad loans that were never

repaid.

The new policy statement announced a major initiative to boost tourism with the construction of a new international airport that can handle large aircraft such as Boeing 747’5. The policy says, “this will not only boost the tourism potential in Vanuatu, but also generate employment and other revenue earning opportunities and added benefits from the extended economic effect that will arise from an increase in tourism related infrastructure developments”.

The government have promised to improve the Foreign Investment Board into a “one stop investment shop’ so that

investors need only to go to one office to get all approvals to set up business in Vanuatu easily and quickly.

Sope has moved quickly to stamp out unauthorised use of government vehicles and has agreed to give the police a huge wage increase to strengthen national security. The police have long complained of poor wages and unpaid overtime and assignments. The government have agreed to pay the police well over A 52.5 million in back pay and another A 52.5 million in budget increases which has raised concerns over a possible budget deficit. The heads of Finance voiced concern over a possible large budget deficit as a result of government promises to the police.

The prime minister is confident that the

government revenue collection can be increased by attracting investors. Already legislation has been drafted to attract

Internet casinos to set up in Vanuatu.

On line casinos are the fastest growth area on the Internet and proposed legislation in the USA is sending

gaming companies offshore. One

research firm estimates that worldwide on-line gambling revenue will total $1.2 billion this year and could grow to $2.1 billion in 2001.

The legislation being tabled for the next parliament sitting after the budget this year will ensure that Vanuatu based Internet casinos are not being used for money laundering through strict audits and bank accounts being held in Vanuatu. A regulator will be appointed to vet

applications. Only Australia has

legislation for Internet casinos at present and companies there have to pay tax unlike in Vanuatu which is a growing tax haven.

The earlier unease with the new government has been helped by the decision to allow the urban road project to go ahead as planned with the upgrading of over 30 kilometres of tar sealed roads in Port Vila and Luganville in Santo. The government

had earlier stated its intention to cancel the contract of the British company Logan Holdings who had won the tender in because a local company owned by Dinh Van Than, whose political party NUP are the biggest in the coalition had challenged the decision of the Kalpokas government to award the tender to the foreign company.

The Attorney general Ham Buie advised against cancelling the contract for legal reasons.

If the Sope led government can maintain transparency and attract investment Vanuatu’s fragile economy can only

improve.

Vanuatu is looking to establish on-line gambling