Fiji Time: 3:24 PM on Saturday 29 November

Fiji Times Logo

/ Front page / News

Inefficient structures

Repeka Nasiko
Saturday, March 01, 2014

FIJI Pine has, throughout its history, suffered from a culture of short-term benefits for a selected few at the expense of long-term benefits for the industry and its landowners at large, according to Fiji Pine Group of Companies executive chairman Faiz Khan.

Mr Khan said over the past three decades Fiji Pine had paid hundreds of millions of dollars in ground rent, forest-based levies and stumpage payouts.

"And provision of exclusivity over silviculture, cartage and logging contracts, many jobs have also been created, yet the benefits have failed to truly reach everyone," he said.

"Inefficient cost structures have existed in the pine industry to support institutions that in theory were created to provide returns to the landowners but have failed to do so."

He said some of these institutions received a benefit through commission alone of up to half a million dollars a year from having exclusivity of contract from Fiji Pine.

"If they did not do anything, they would make a profit of half a million dollars a year, yet by running a business they make losses and further expect Fiji Pine to subsidise their inefficiencies despite contract terms well above market rates.

"The simple ideas of doing business is that the money invested must grow as opposed to disappear, frankly, these institutions that turn a commission benefit they receive from Fiji Pine Limited into a loss need to relook at the way they do business."

The executive chairman explained that by inventing the lease security bonus payment system, Fiji Pine intended to have closer links and foster stronger bonds with landowners through more direct benefits.

"There have also been many instances of past managements and even board of directors taking loans from the company and never repaying or abusing the system for their personal gain.

"We cannot go back to such practices."





Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Today's Most Read Stories

  1. In the hot seat
  2. E-ticketing under scrutiny
  3. The way forward for Fiji players
  4. Tuqiri leaves Rabbitohs as champion
  5. Biman stays
  6. 7s team adapts well in Dubai
  7. $60m profit outlook
  8. Glamorous fundraiser
  9. Sewing machines to help women
  10. Heroes give emergency response equipment

Top Stories this Week

  1. Couple return to Fiji after almost a decade Wednesday (26 Nov)
  2. Deal on NZ jobs Monday (24 Nov)
  3. Stop the bickering Tuesday (25 Nov)
  4. No regrets Tuesday (25 Nov)
  5. Indecent jokes warning Wednesday (26 Nov)
  6. President Xi leaves impression on leaders Monday (24 Nov)
  7. Jail terms for former Post Fiji executives Monday (24 Nov)
  8. LTA fires corrupt 4 Thursday (27 Nov)
  9. Man behind the change Wednesday (26 Nov)
  10. Speaker changes her tune Friday (28 Nov)