Exporters want dialogue on 'rising costs'

October 19, 2009 01:57:21 PM

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A local businessman is calling for more dialogue between the private sector and government to help exporters deal with the rising cost of doing business in Fiji. 

Humphrey Chang, who serves on the boards of the Fiji Export Council, the Fiji Chamber of Commerce and Industry and the Fiji Manufacturers’ Association, told FijiLive that doing business from a place such as Fiji continued to be an uphill struggle because the cost of raw materials keep increasing in the major markets. 

Chang has called on government to lend a listening ear to pleas from the private sector on ways it can help them ease these costs.

“At the moment, the scale of operations in Fiji is such that we don’t attract enough overseas buyers. And we are reviewing what we might best do to increase our sales. But it’s an uphill struggle if you like, not so easy at times,” Chang said.

“We are confronted in many ways with challenges, for example we have to pay duty on all our raw materials, we have to pay freight for one thing, the insurance and all that.  Whereas a company that is operating from a country that has its own raw material, they don’t have to worry about all these things - no freight, no insurance, no duty.  Here, we have to pay for all these and the government is not allowing us to bring all these in duty free so that we can then compete with them.”

If a local manufacturer or exporter imported raw materials from China for instance, they would pay US$1800 per container for freight alone, said Chang, and a third of that if imported from Australia, which immediately put Fiji businesses at a disadvantage.

“We are trying to do something to reverse the issue and see what can be done but the main thing is the lack of consultation between the government and the private sector.  We really want to see that (closer consultation) taking place but you know, the government is not hearing from the private sector what our problem is, and they need to hear it. 
At least they would know what our problem is and if there is a way that they can help us.”

Chang said while the government was trying to form a closer bond with the private sector, getting things done seemed to be its weakness.

“From this last economic summit that we had in September, government asked the private sector to demand the things they want.  That is all right but easier said than done. When we do put a demand, they don’t respond. One good example is one of our members asked if he could use a Nasinu sawmill. All he wants to know is can he use it or can’t he use it, or if he can use it, what is the charge.  Now a month has gone but no reply.”
 
He said the private sector would continue to seek a more useful partnership with the government.