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Indigenous Fijian landowners should expect more rental income in the future.
The interim Cabinet has endorsed an increase in native land rentals to 10 per cent Unimproved Capital Value (UCV).
The incentive package for landowners was recommended by the Committee on Better Utilization of Land (CBUL).
Interim Prime Minister and Indigenous Affairs Minister Commodore Voreqe Bainimarama says the increase in native land rentals to 10pc UCV is to ensure that individual mataqali (clan) landowners receive more rental income than what is currently given.
“The increase however will not impact upon the legislated 6 per cent UCV rental. The stipulated amount will remain with Government to fund the additional 4 per cent through a subsidy for all ALTA (Agriculture Landlord and Tenant Act) leases,” he said.
Bainimarama also explained that the Native Land Trust Board will consider waiving the 15 per cent poundage to be charged on the proposed rental subsidy.
He said that this will ensure that maximum benefits of the subsidy are to be passed onto the landowners.
“A one-off grant will be paid to the NLTB to help them defray the initial cost of the new system, and in return, the NLTB is to waive its administration cost.
“Details of this one-off grant shall be determined.”
He also said that the lease premiums will be funded from the Farming Assistance Scheme (FAS) administered by the Ministry of Agriculture.
“These lease premiums are paid in return for reduced rentals for future years based on valuation which uses comparables.”
The proposed land rental subsidy will be for a period of five years or when the relevant legislation is amended.
CBUL has also recommended that the term of native leases be increased from 30 to 50 years.
Bainimarama said that the need to put in place an attractive incentive package that benefits both tenants and landowners is a pressing national issue that needs to be urgently addressed.
