Budget priorities questioned at post-Budget forum

The Government's Budget priorities have been questioned, with business leaders raising concerns about whether public spending is focused on creating jobs and driving economic growth.

Speaking at a post-Budget discussion organised by Dialogue Fiji at Tanoa Skylodge Hotel in Nadi, Viti Indigenous Tourism Alliance executive Salote Malani said significant funding had been directed towards tourism in recent years, but the benefits had yet to reach many ordinary Fijians.

She said tourism centres still fell short of the standards expected of a leading tourism destination.

"I was very disappointed to see the lack of innovation and investment in improving our tourism towns," Ms Malani said.

She said many people were willing to start businesses and generate income but needed greater financial support to turn opportunities into reality.

"The policies and paperwork are there, but what people need is access to funding so that they can contribute to the economy, generate income and help reduce the national debt," she said.

Ms Malani also questioned the return on the millions of dollars spent on tourism initiatives over the past four years.

"We do not see the improvements, and that is my main feedback to the panellists," she said.

Finance Minister Esrom Immanuel said the Government had allocated funding to support small and medium enterprises (SMEs) and tourism businesses, but uptake had been lower than expected.

"We expected more SMEs to take advantage of these programmes. Unfortunately, there have been few takers," Mr Immanuel said.

He said the Government had also introduced additional tax incentives to encourage businesses to partner with iTaukei landowners in tourism and cultural ventures.

Priorities challenged

Ms Malani also questioned the Government's Budget priorities, arguing that more funding should be directed towards entrepreneurship and job creation rather than the Fiji Corrections Service.

She criticised the increase in funding for the Fiji Corrections Service, whose allocation has risen to $64.7 million.

"It's a people's budget, but we are prioritising the wrong people," she said.

"There are three per cent of the population who need to generate the lifeblood of the economy, bring revenue into the national budget and improve livelihoods."

Ms Malani said entrepreneurs and business owners, who play a key role in tackling unemployment and social challenges, were often overlooked.

Mr Immanuel said the additional funding for the Fiji Corrections Service was largely to meet delayed salary adjustments.

SME finance access

Cacao Fiji founder Arif Khan urged the Government to make finance more accessible for small and medium-sized enterprises, saying limited access to affordable loans was slowing growth in the agriculture sector.

Mr Khan said cocoa offered strong potential to diversify Fiji's agricultural sector while delivering significantly higher returns for farmers.

"Cocoa is an important diversification crop, but we are not making the necessary investments," he said.

"While there is debate over payments of $85 to $105 a tonne in the sugar industry, we pay up to $3000 a tonne to cocoa farmers."

Mr Khan said Government-backed SME loans introduced during the COVID-19 pandemic had helped many businesses survive and had been repaid responsibly.

"We have just finished paying off those loans after five years. We were responsible borrowers," he said.

However, he said securing finance through commercial banks remained a major hurdle for agricultural businesses.

"To be honest, it is easier to borrow $1 million to buy real estate than it is to secure a $50,000 loan for an agricultural business or an SME," he said.

Referring to the Reserve Bank of Fiji's import substitution lending facility, under which banks access funds at one per cent before lending to businesses, Mr Khan called for easier access to the scheme.

"I would suggest the Minister look at making it easier for SMEs to access those loans," he said.