The privatisation of State-owned enterprises (SOEs) could address Fiji’s debt crisis.
This, according to former New Zealand Minister of State-Owned Enterprises Richard Prebble, while speaking at the launch of Finding Balance Study 2023 on Tuesday evening at Novotel Hotel, Lami.
“Privatisation of SOEs worked for New Zealand and can also work for Fiji,” said Mr Prebble who was a minister in 1987.
“New Zealand was in huge debt, but after the privatisation of 22 SOEs that were under my watch, they all became profitable and were generating more income than when they were public enterprises.
“Fiji has got a bit of a debt problem – we had a huge debt problem, but had it not been for the reforms of State-owned enterprises, we wouldn’t have gotten ourselves out of the hole.
“So, all the people in this room can actually help the government get out of its financial difficulties, and you can do it very quickly.”
He said the method had not only worked for New Zealand but also for many other countries, including the Solomon Islands.
Deputy Prime Minister and Minister for Tourism Viliame Gavoka, who was the chief guest, said “it was quite illuminating that the SOEs started contributing in a big way to the treasury of NZ by helping repay their debts”.
“It’s something that we can take seriously in Fiji,” he said.
“We are four months into the administration, and these are lessons that we need to learn to emulate what happened in New Zealand. I still have my reservations that it is not the be all, there are some strategic assets that we may still need to control as it is today – Government control.”
Mr Gavoka said big players like Energy Fiji Ltd (EFL) were already going through some privatisation process, but they could diversify a bit more.
He added that small SOEs like Rice Fiji Ltd could not privatise as it still needed support from the Government.
The Finding Balance Study 2023 report benchmarks performance and builds climate resilience in Pacific state-owned enterprises.
The event was organised by the Asian Development Bank (ADB).
