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Fund loses $.5m in contributions

ASHWINI PRASAD
Tuesday, May 29, 2007

THE Fiji National Provident Fund lost about $0.5million in employee contributions from staff of the hotel industry in the first quarter of this year, it was revealed yesterday.

Figures released by the Fiji Islands Hotel and Tourism for the first quarter of this year showed cumulative hours lost by employees were 702,000. Association president Dixon Seeto said this amounted to about $2.8million in wage loss and $0.5million lost towards Fiji National Provident Fund contributions.

FNPF's Wainikiti Bogidrau said they would comment today on employee contributions.

In April 245,000 hours were lost by employees, which was the highest in the first four months.

It was also revealed the industry had asked for an extra $3.8million for marketing to help it return to normal.

Fiji Visitors Bureau chief executive Viliame Gavoka said the submission of $3.8million was made a few days ago.

University of the South Pacific's Professor Biman Prasad had warned the contraction of the economy would continue especially with the lack of recovery in the tourism industry. The FVB and Tourism Action Group were given $10million for marketing in the revised Budget but the interim administration had promised $15million for the bureau and $3.8m for TAG.

In March the industry asked for another $9million but it was rejected by the interim administration.

Attempts to contact the Finance Minister Mahendra Chaudhry were unsuccessful.

Mr Gavoka said if the $3.8million was given by the interim administration, the industry would have $13.8million for marketing.

He said this was the same amount the bureau had spent on marketing last year.

The Prime Minister's Office yesterday confirmed a submission was made by the industry.

Permanent secretary Parmesh Chand said discussions were under way and "serious considerations were been given".

Mr Seeto said the figures were for the association's major members and the performance of Fiji tourism was far from satisfactory and normal.

Mr Seeto said the industry was doing so poorly and it was certain the interim Government had a responsibility to support the industry as it was the only industry that could turnaround "given the proper support". "Funding is a key element for us," he said. Mr Seeto said it was critical for the industry and the interim Government to work towards eliminating the travel advisories. He said the lack of funding and travel advisories did not assist in the development and recovery of the industry.

"I hope the government will listen to our plea as the funds are critical for the survival of the industry," Mr Seeto said.

End of story

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