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Brewery, chocolate plant “mothballed”
21 JAN 2008
Flour Mills of Fiji Ltd says that a $30m project which included a brewery, a chocolate manufacturing plant, expansion to existing chip plant and biscuit line has been put on hold due to a lack of business confidence in Fiji.

FMF chairman Hari Punja says the project has been mothballed because of “continuous changes in the rules of the game” particularly changes in tariff rates.

Punja said most of the project feasibilities were done years ago and were based on existing tariff rates.

“And soon after completion it changes then I would be mothballing the brewery and the chocolate plant again.

“The rules of the game appear to change midway.

“I would be a very mad businessman if I went ahead with it.”

Punja pointed out that it takes a long time to plan such projects, usually about three or four years.

“Putting it off just takes an hour. Starting it again will take another four years. It is not a switch on and switch off thing.

“So my answer is no. I have had enough of it. It is off for good, I will not go ahead with it.”

Punja says the projects would have created 120 new jobs.

The company had also highlighted last week that it would be scaling down its rice and pea milling operations because of the impact the reduction in import duty for the two products had on their operations. The company will now buy prepacked products to be sold here.

Import duty on split peas reduced from 27 to 5 per cent and polished white rice from 27 to 15 per cent. 

In addition, last week, Suva Chamber of Commerce and Industry had highlighted that business confidence among the local business community was at an all time low.

It noted that FMF and another company Fiji Fish were laying off workers to minimize their losses.

The chamber called on the government to address the issues facing businesses.

“It can do so by ensuring that the requests by businesses are dealt with fairly quickly to ensure continuity of businesses without undue strain.”




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Posted Comments
Posted By: Babba
Posted On: Jan 21 2008 11:22:55
Comment: Punja needs to pay a fair share to the society in which he does business. Enforcing the laws of the land should be seen as a confidence booster rather than a deteriorating business climate. It's about time that they face real competition.


Posted By: Wake Up
Posted On: Jan 21 2008 16:03:05
Comment: Punjas contribution to the community has been tremendous in very many ways. One also happens to be to employ local people.


Posted By: for fiji
Posted On: Jan 21 2008 15:02:00
Comment: Things seem to be going from bad to worse ....


Posted By: nayacakalou
Posted On: Jan 21 2008 17:28:33
Comment: The IG should make sure that the businesses in Fiji are well looked after. We can see every time they appear in court, the people of Fiji have to pay. We can see in only 2 weeks, water only, a loss of $8 million. Fiji will never survive this one.


Posted By: Naz
Posted On: Jan 21 2008 18:03:36
Comment: Why is Punja complaining? He has made millions from the poor farmers. He is crying because the tariff is changed. But it has not changed only for Punja but for all businesses.


Posted By: rk murti
Posted On: Jan 21 2008 23:10:03
Comment: Punja has made a lot of money over the past decade or so. By saying that they will not operate the chocolate plant and brewery will not change the laws of Fiji. They have to stay within the laws which are implemented for every business and to increase Government revenue.


Posted By: Arvin
Posted On: Jan 21 2008 19:09:32
Comment: Hari Punja should have a better understanding than that FMF would be able to bully the laws into its favour. FMF runs a big industry, fine, but leave the enforcement to the government. I am still not convinced with his claims to stop doing business in Fiji. There will be certain impact but I am sure this will not halt the country. He needs to do his lucrative business here more than the people needing those jobs. He will give up on the boycott soon.


Posted By: Mukesh
Posted On: Jan 21 2008 20:22:33
Comment: Mr Hari Punja's family has been enjoying three good meals a day while there are many Fijians struggling to have a decent meal. Yet he is complaining about the tariff reduction which is helping poor families. It would be a better day for Fiji when other areas are deregulated


Posted By: Sui
Posted On: Jan 21 2008 19:21:53
Comment: What a lame excuse from a mighty businessman. Some business people are finding it hard to make the maximum profit from cheap labour. If one door closes, the other will be open.


Posted By: dodo
Posted On: Jan 21 2008 21:49:04
Comment: I fully agree with Babba.


Posted By: Itzack Rabin
Posted On: Jan 21 2008 20:59:51
Comment: Mr Punja hasn't been jolted for the last 30 or 40 yrs or so, working with the Fijian elite in society. He must come back to reality and a word of advice please refrain yourself from trying to use emotion to derail the good work the IG are doing. It is time you play games on a level playing field.


Posted By: Jugnu
Posted On: Jan 22 2008 03:47:30
Comment: Punja seems to oppose reduction in import duties so that he can monopolise the Fiji market.


Posted By: MOGGYMAN
Posted On: Jan 22 2008 04:33:02
Comment: About time Punja did business without the help of Govt. Millions of dollars have been lost in protecting his business. He has a virtual monopoly in all his businesses. C'mon Fiji wake up.


Posted By: Elenoa Amanaki
Posted On: Jan 22 2008 10:36:53
Comment: Perhaps Mr Punja you should think about coming to Tonga. Govt should provide incentive to local companies to produce.


Posted By: tk
Posted On: Jan 22 2008 17:38:52
Comment: The million dollar question is "What on earth Fiji needs a brewery and a chocolate plant for" in these hard economic times. Why not do some more meaningful things that help the entire society in which the likes of Punja have made their tremendous fortunes.


Posted By: Java
Posted On: Jan 22 2008 21:06:17
Comment: Hari Punja and the likes had made millions and established their business empires during 70s & 80s under an economy heavily protected by tariffs. We saw deregulation in the 90s which was strongly opposed by Punja. Somewhere the spirit of deregulation was lost in the previous government and tariffs started to creep in again providing protection to likes of Punja. Bottom line is we live in a global economy and Fiji needs to take advantage of global prices. If Punja cannot compete with prices and requires higher tariffs then consumers of Fiji are indirectly supporting higher prices of Punja and filling their coffers. I think protection of 120 jobs is a huge price to pay for millions of dollars in higher prices. Consumers in Fiji deserve to pay lower prices in line global prices. $30M in investment is not worth having if consumers are going to pay higher prices.


Posted By: James Sankar
Posted On: Jan 23 2008 09:05:11
Comment: A real businessman. He could have given a real boost to Fiji's economy by offering jobs to local people and local farmers an initiative to grow rice and other commodities.


 
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