MY DECISION TO CONTINUE WITH MY RESPONSE TO THE COVID-19 BUDGET MEAURES

My decision to continue with my response to the COVID19 Budget measures, and highlighting some of the inconsistencies in its delivery especially to the people most in need, in the middle of our battle against the Virus and the most recent devastation caused by Cyclone Harold does not in any way mean I do not care about the measures underway or appreciate the effort being made right now [not good enough though I believe it is].

I do care and I do appreciate and am very grateful for the efforts being made right now by the first responders, the Doctors, the nurses, the medical staff generally, as well as our security services.

But having said that, I believe very strongly that just because we face these challenges does not mean we should press ‘pause’ in our efforts to keep the people informed of the facts and in the process help establish the ‘truth’ that are so often overlooked.

When we ‘pause’ we take our eyes off the ball and facts and the truth will get swept ‘under the carpet’ or lost under the haze of COVID19 and TC Harold rescue activity.

By its own admission the government is once again making the FNPF Members finance their own recovery and survival effort by making them pay a staggering 71%. while they, the government funds just 29%.

The last time was post TC Winston when they opened up the FNPF withdrawals to members. A total of 182,571 members withdraw $275.5 million of their own funds under the Natural Disaster (ND) Assistance for TC Winston. The previous year they had 65,713 withdrawals. I do not recall this 278% increase in workload back then being as problematic as the $500 - $1,000 allowance they are offering this time, even when we allow for the special demands that covid19 and now TC Harold presents.

Just as a reminder to all, the FNPF started operations as Fiji’s Pension Fund in 1966 under the Fiji National Provident Fund Act [Cap 219]. Back then although the Minister made Board appointments under Sec 3 (1) the membership had to consist of: - (a) 2 persons holding an office of emolument under the Crown; (b) 2 representatives of employers not being persons holding an office of emolument under the Crown or under the provisions of any Act; and (c) 2 representatives of employees,

Then came the Bainimarama coup in 2006 and by the 2012 Decree 77 which effectively ‘hijacked’ the FNPF and the Board composition changed to be at the sole prerogative of the Minister. Their authority at the time was via the barrel of the guns, then in September 2013 came the imposed 2013 constitution after trashing and burning the people’s 2012 Yash Ghai draft.

The President who assented to the 2013 imposed constitution is the current Speaker and with it came the continuation of all the illegal decrees since 2006 including the illegal changes to the FNPF and the 17 anti indigenous decrees.

Also included was Chapter 10 and their immunity from prosecution for all their crimes yet they have not hesitated to dish out charges left right and centre to everyone else while avoiding their own prosecution by hiding behind their immunity. Sound like people you can trust?

COVID 19 GOVERNMENT SUPPORT MEASURES

GOVERNMENT MEASURES (i-vii) - FNPF MEMBERS TO PAY 71% & GOVERNMENT 29%

This is what is stated in the supplementary budget notes for COVID19 Response.

vi. For measures in (iii) to (viii), Government has provided a total budget of $60 million. It is expected that FNPF will inject around $150 million to support these initiatives.

This statement in the supplementary notes triggered my curiosity because of the Economy Ministers repeated comment that ‘Fiji’s economy remains under prudent and responsible management’ when preparing for his COVID19 budget plans.

I say this because if our economy was prudently and responsibly managed as we have been told, why does the government not have $210 million to fund its support measures for workers who have lost their jobs?

Why does it not have the funds available to fund 100% of its programme and instead of ‘leaning’ on the FNPF members to use their own funds to cover 71% of the cost while it provides just 29%. And this while Government holds $2.6 billion of FNPF members funds in securities.

Back on June 7th 2019 in his 2019-20 Budget Address the handsard records the Minister for the Economy as saying : This age of historic economic achievements, this unbroken decade has been rightly dubbed by some as the “Bainimarama Boom” for our economy, not a bump,not a bubble, but an economic boom that has carried our economy through 10 years of expansion and that will go down in history as the decade we solidified Fiji’s economic future.

What is important for people to understand is that even before the virus was detected in Wuhan, China and first reported to the WHO Country Office in China on 31 December 2019, Fiji was already in an economic downturn which I highlighted in my post 2 months earlier on October 27th, 2019 when I referred to the drop-in business being experienced by small operators at the time being up to 50%.

When the Minister launched his 5 – 20-year development plan in Germany in November 2017, the growth rate was 3.8% and his plan projected the growth rate at 2021 to be between 4%-5%.

Just 6 months later on May 11th, 2018 the RBF notice revised the growth rates as follows: -

2018 – From 3.6% to 3.2% - (0.40%) Approx (11%) drop

2019 – From 3.2% to 3.4% + 0.2% Approx +6.25%

2020 – From 3.2% to 3.2% - No change

Then 12 months later on May 10, 2019, the RBF announced a reduction in the 2019 growth rate from 3.4% to 2.7% which is a drop of (0.70%)

Then just 6 months later on November 7th, 2019 the RBF again revised the growth rates as follows: -

2018 – From 3.25% to 3.5% + 0.30 Approx 9.3% increase

2019 – From 2.7% to 1 % - (1.7%) Approx (63%) drop

2020 – From 3.2% to 1.7% -(1.5%) Approx (46.8%) drop

Although according to the government and RBF we have had unprecedented growth over 10 years in just 18 months from May 11th, 2018 the growth rate went from 3.4% to 1.7% on November 7th, 2019. This represents a 50% drop in economic activity [As I reported in my post Oct 27 post] and more importantly this was Fiji’s real economic situation 2 months before the COVID19 was even discovered.

So, to suggest in a report by Semi Turaga of Fiji Village on Friday 13th March 2020: That the Fiji economy remained under prudent and responsible management? Is misleading and disingenuous.

In my post on March 5, 2020, I outline the two separate burdens facing Fiji, the huge economic downturn already in effect 2 months before COVID19 was first reported and the even greater added impact of COVID 19 on the country and especially its people. I titled the post ‘The Perfect Storm’ and this to my mind probably explains why the government’s measures were ‘weak and confusing as they tried to counter the two impacts at the same time.

And as if that was not enough, we now have a 3rd calamity in Cat 4 Cyclone TC Harold and the destruction it has caused, upgrading our challenge to ‘A perfect Super Storm’.

But the real challenge for government will be its ability to rise above the 'petty partisan approach' it has adopted since it came to power and adopt the more sensible and unifying approach by creating a National Unity Effort to tackle the 3 storms head on.

I remember my Dad saying many times as he told his stories of the War and as an able seaman how all the crew responded to the call by the Captain for 'ALL HANDS ON DECK'

MAKE THE CALL FRANK