Pacific Magazine > Magazine > March 1, 2007

Business Briefs

Business Briefs

Fiji  
Fiji’s monopoly landline provider Telecom Fiji Limited has brushed aside a report in January by international market research company Research and Markets, which listed Fiji as one of the Pacific countries where rates are relatively expensive. The report suggested while mobile and Internet service is becoming popular, it was still too expensive. TFL spokeswoman
Salote Uluinaceva says the company has reduced rates over the past two years bringing it to a level comparable to other developing countries and lower than Vanuatu, the Cook Islands and PNG.

Fiji’s interim Commerce Minister Taito Waradi says the country’s economy was headed for ruin if deposed Prime Minister Laisenia Qarase had continued to govern. Waradi, who was president of the Fiji Chamber of Commerce before his appointment to the interim Cabinet, said with the Qarase government’s economic policies and financial indiscipline, the country would have been faced with the “real and unenviable position of becoming bankrupt sooner rather than later.” The Reserve Bank of Fiji, in its quarterly report, says the economy suffered a slow-down in the last quarter because of the drawn out impasse between the military and the government which, resulted in the December 5 coup.

Papua New Guinea
A top world aluminum producer, Rusal, has struck a deal with the Papua New Guinea government to jointly explore the country’s potential for energy and aluminum. The agreement between the Russian company and the PNG government was signed by PNG Environment and Conservation Minister and acting Minister for Petroleum and Energy, William Duma. The parties will now work to set up a framework for ongoing discussions on the possible utilization of PNG’s gas resources. Rusal is the second largest producer of primary copper in the world.

Canadian natural resource company Vangold Resources Ltd. and New Guinea Gold Corporation will run a 1,500-2,000 meter (1,625-2,166 yard) diamond drill program to test new gold targets at their Feni project in the New Ireland Province in the first quarter of this year. The Feni Islands Project, which is owned 50 percent by Vangold, is located within the Lihir corridor, which hosts the copper-gold deposit that the Bougainville copper mine was built on, as well as the world’s largest gold porphyry, hot spring gold deposit at Lihir Island.

Solomon Islands
New Zealand company Appollopack has hired more than 40 Solomon Islanders to work in the company’s apple orchard and packing facilities. Company official Mark White, who was in Honiara in January on a recruitment exercise, says he has received support from the New Zealand government for recruiting Solomon Islanders unrelated to a “labor mobility scheme” that New Zealand announced at last year’s Pacific Islands Forum leaders meeting in Fiji. White says he knew nothing about the labor mobility scheme, which is due to start in April with only five Pacific Island states taking part. White says he favors Solomon Islanders over I-Kiribati workers he previously recruited because they did not want to return home at the end of their work permits or at the end of the harvest season. A total of 47 Solomon Islanders left for New Zealand in early February, and were given work permits that expire at the end of August. All expenses are to be deducted from their wages in New Zealand. This is the second recruitment the company has done in the Solomon Islands. White said the workers are paid NZ$11 (US$7.60) an hour.

Samoa
South Pacific Games major sponsor SamoaTel launched an extravagant new Go Mobile service as the mobile phone wars with regional telecommunications newcomer Digicel continues to be waged in Samoa. Both companies have been rolling out promotional campaigns in an effort to garner a bigger share of the local market. Digicel has made a big impression since entering the Samoan market last year, recently announcing new appointments to its new Apia based office and capping their entry with competitive rates. But SamoaTel pulled out all stops when it invited famous New Zealand based Pacific entertainers Adeaze, Jamoa Jam and comedian Tofiga Fepuleai for the launch of Go Mobile in January, also teaming up with the South Pacific Games Authority.

American Samoa
American Samoa-based Quantum Pacific (QP) was recently contracted by the Commonwealth of the Northern Mariana Islands to find solutions to address the persistent power problems in this U.S. territory. QP official Gerhard Sword said the company has an initial three-month $250,000 contract that began January 16 with the Commonwealth Utility Corporation (CUC). “The CNMI government is currently reviewing all options for CUC, including privatization of the utility,” Sword says. QP’s officials include senior employees who were once employed at the American Samoa Power Authority.

Guam 
The Guam Contractors Association has begun a Trades Academy to help local workers gain construction skills so that they will be prepared to participate in the expected construction boom accompanying the military buildup that is projected for the next several years. Member organizations lent the GCA $50,000 in “seed money” and 22 students began taking classes that will lead to nationally-recognized certification in carpentry, electrical, heavy equipment, masonry, and heating, ventilation and air conditioning.

CNMI  
Tourist arrivals for the December 2006 showed a little over 7 percent decrease compared to the same month a year previous, according to statistics from the Marianas Visitors Authority (MVA).  This follows a 12 percent decrease for November, compared to the same month a year before.  However, Korea, China and Russia all showed increases, with Koreans increasing by 9 percent, Russians by 7 percent, and Chinese by 28 percent.  Japanese arrivals, however, decreased by 18 percent.  A total of 35,556 tourists arrived in December 2006, as compared to 38,353 at the same time in 2005.

New Saipan Chamber of Commerce President, Juan Guerrero  PHOTO: JACQUELINE HERNANDEZ

The Saipan Chamber of Commerce installed its new officers
for 2007.  Businessman Juan T. Guerrero is the new president; Alex A. Sablan, vice president; Mike A. Johnson, treasurer; Jim Arevnoski, secretary.  The boards of directors are David M. Sablan, Kathryn Barry, Harry Blalock, Becky Castro and Steve Jang. Guerrero was also voted Businessman of the Year for 2006. 

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Marshall Islands
The explosion in mobile phone usage since a GSM system was installed 18 months ago continues in Majuro, with over 6,000 users in the capital, giving it an estimated ratio of one cell phone for every five residents. The unanticipated upward spiral in cell phone use continues to challenge the National Telecommunications Authority, which is playing catch up with demand to expand the number of channels and improve coverage with the addition of new equipment.
U.S. postal rates for the Marshall Islands and Federated States of Micronesia will jump again this year, as part of the Compact of Free Association’s phased-in five year international rate increase. Airmail parcels are set to nearly double in price, with the one pound minimum package rate to jump from the current air parcel post rate of $5.90 to $10.20—a 73 percent increase. “This is really affecting the economy of the Marshall Islands and revenue for the government,” says G&L Enterprises owner Grant Labaun. “The U.S. government should really look at this.” The shift from domestic to international designation has hit Marshall Islands business, which historically have ordered from U.S. suppliers, at a time when they are under severe stress of competition from Taiwanese and Chinese run businesses that source their products from Asia.

New Zealand
Rival Pacific community radio stations Radio 531pi and NiuFM joined forces in a reluctant merger last December. New Zealand government officials said the move would strengthen broadcasting for Pacific communities in New Zealand and allow the two stations to pool resources, avoid program duplication and enhance the service they both provide to Pacific communities. “The stations have common objectives and play a valuable role in promoting and maintaining Pacific languages and culture in New Zealand,” Broadcasting Minister Steve Maharey says. The stations have combined under the umbrella of the National Pacific Radio Trust, the government-appointed charitable trust responsible for NiuFM.


Contributors: Ricardo Morris, Alex Rheeney, Alison Ofotolau, Afamasaga Toleafoa, Peter Rees, Fili Sagapolutele, Frank Whitman, Frank S. Rosario, and Giff Johnson.