“TURNING PROMISES INTO DEEDS”
Madam Speaker,
It is my honour today to deliver the 2015 Budget – the first in our new democracy, the first in this new Parliament and the first Budget of the FijiFirst government.
It is also my honour to inform the nation that rarely in our history have Fijians enjoyed such a buoyant economic outlook, one that holds such great promise to improve the living standards of all our people.
We are currently enjoying only the third sustained period of economic growth since Independence 44 years ago.
Last year, we achieved an impressive growth rate of 4.6 per cent against a forecast of 3.6 per cent in the last budget. This was more than double the growth of1.8 per cent in 2012 and more than the 2.7 per cent in 2011.
I am pleased to announce that we expect growth for 2014 to be 4.2 per cent once all the figures are in, also significantly higher than the forecast of 3.0 per cent a year ago. This is a commendable achievement by any regional or international standard. In fact, with the projected growth for next year, our economy would achieve 6 years of consecutive growth, one of the longest periods of sustained economic expansion in Fiji’s post-independence history. And more importantly, it will be the first time in the last 40 years that the Fijian economy grew by more than 4 percent in 3 consecutive years.
This unprecedented growth trend, and particularly the strength of this growth, are clear evidence that our economic policies and the investments Government is undertaking are doing what we intended them to do, and that this is the right economic course for Fiji.
Madam Speaker, the current economic expansion is driven by both public and private sector activities. The Government is doing what it should do: It is creating an environment that allows the private sector to succeed. The competitive tax regime, low interest rates and stable economic policies have produced an environment of easy financing and rising consumer and business confidence. All of this has contributed to the surge in private sector activity. There is no doubt that under current global financial conditions this momentum will continue, and it will certainly elevate Fiji’s position in the region.
Investments will continue to grow, enhanced by the currentconstruction boom, driven by the private sector, our vibrant tourism industry, and capital works that the Government will carry out. Investment for 2014 is projected to be 26 percent of GDP.
Madam Speaker, our external position has also been strong. Foreign reserves stand at $1.8 billion, enough to cover around 4.6 months of imports. I again wish to highlight that since 2009, our foreign reserves import cover has consistently been above 4 months. This is another record: We have never maintained such a strong foreign-reserves position for straight five years.
This comfortable foreign-exchange cushion is no accident: Government has worked tirelessly to strengthen Fiji’s balance of payments situation and has taken decisive actions to ensure that Fiji’s economy is not held hostage by a lack of hard currency. Government has made it a priority to boost our exports and reduce the trade deficit. This policy has not just produced jobs. It has also allowed the Reserve Bank to ease exchange controls, which gives all Fijians more freedom to spend their money as they choose.
Madam Speaker, inflation stood at a low 0.3 percent at the end of October. Year-end inflation is projected at 1.5 percent for this year.
With our healthy reserves position and low inflation, the Reserve Bank has been able to maintain an accommodative monetary policy stance over the last few years. As a result, interest rates are at historically low levels. This has sustained lending in the economy, which makes it easier for businesses to invest, which creates more jobs, which leads to more savings and consumption. Madam Speaker, I think we all get the picture.
Madam Speaker, our exports have been growing and are projected to increase by 8 percent this year and another 3.5 percent in 2015. This growth is broad-based, with all major exports expected to increase. Imports are also projected to increase next year by 6.6 percent, which is in line with our strong economy.
Visitor arrivals are also projected to increase to more than 701 thousand next year, and we expect total tourism receipts to exceed $1.4 billion next year. Personal remittances from abroad have also been increasing, which sustain or assist many families and inject important cash into the economy—and, of course, they contribute to our favorable balance of payments situation.
Madam Speaker, the 2015 Budget will produce more strong economic performance because it rests on a sound macroeconomic foundation and, as we will see,it targets investment to areas that encourage economic activity and growth, improve safety, increase living standards, and lift the poor and marginalised.
You may recall, Madam Speaker, that we held a Budget Consultation Forum last month to make the budgeting process more transparent and capture the public’s view on spending priorities. We invited other political parties as well, and we allowed people to submit their views online. The Forum was an enormous success, and I can assure you and my colleagues in Parliament that the public helped us shape this budget. Further, this year’s Budget document contains a narrative section that explains how each activity of the government, down to the smallest one, uses the funds it has been allocated. As announced publicly, we will put in place a five-year development plan which will be completed at the end of the first quarter of 2015. The Budget Consultation Forum provided us some valuable insights for the plan and, indeed, further consultations will be held before the plan is finalised. We hope members of the other side of this honourable house will find the time and good will to contribute to this national agenda,
Madam Speaker,
We expect total revenue to reach $3.1 billion in 2015 and total expenditures to be $3.3 billion. The estimated net deficit for 2015 is $213.9 million, equivalent to 2.5 percent of GDP. We would prefer no deficit, but this is a healthy and sustainable level.
Government debt currently stands at $4 billion, equivalent to 49.8 percent of GDP. With the 2015 budgeted fiscal deficit and growth outlook, we expect to reduce total debt to 48.7 percent of GDP next year.
Government’s operating expenditure stands at $1.9 billion, while a sum of $1.3 billion is appropriated for capital expenditures in 2015. The 30 percent increase in capital expenditures now brings Government’s capital investment to 41 percent of total expenditure.
Madam Speaker,
Government is committed to ensure that public debt is prudently managed. A reform plan has been formulated with assistance from the World Bank to ensure efficient treasury management, institutional strengthening and capacity building.
The global bond is also maturing in 2016. The balance in our offshore sinking fund account currently stands at USD 117 million. Given the favorable international market conditions and the re-engagement of multilateral development partners such as ADB and the World Bank, Government is exploring the best options, keeping in mind our debt position, outlook for foreign reserves and interest rates.
Discussion with the Asian Development Bank to secure a concessional loan of USD $100 million for investment in transport infrastructure for the next 5 years is also in advance stages. The ADB has offeredanextremely competitive interest rate package and a package of technical assistance.
Madam Speaker,
Our strong economic performance is no blip or spike on the graph, but a consistent and upward movement. Fiji is on the move. Our progress is sustained. It is indisputable. And if we can keep our focus – keep Fiji moving – the possibilities are limited only by our imagination.
Our current standing in the international community is unquestioned and unprecedented. I rise in this Chamber in a week in which the leaders of the two most populous nations on earth– India and China – are gracing our shores. That the leaders of more than 2.5 billion people see fit to visit a nation of less than one million people is a testament to Fiji’s stature. Great things are expected of us. We expect great things of ourselves.
Moreover, the growth of our economy comes at a time of severe challenges in the global economy generally and in the economic position of many of our neighbours. So we can take great satisfaction as a nation from our performance.
Madam Speaker,
All of this is because of the hard work and consistent policy settings of the Bainimarama Government.We do not believe in the gimmicks or quick fixes. We know from our own experience and the experience of other countries that managing our economy requires us to be smart, flexible and adaptable—andnever to be slaves to ideology. We set our economic policy settings to local conditions and changing circumstances, not to global fads or the prescriptions of individual economists or for experimental purposes.
We know from experience that in Fiji, economic growth flows fromstability and consistency, from consistent policies that encourage the private sector – domestic and international – to invest with confidence and create the jobs that many of our people need to prosper.
It also flows from creating partnerships;for Government to work closely with the private sector to establish economic conditions that are pro-growth and provide greater incentives for investment.We will continue to do that, and technology is a prime area for cooperation. Fiji is expediting an uptake of technology, and government, business and academia working together can fast track it even further. As a nation, we need to weave technology into our daily lives. It is good for business, it is good for government, it is good for service delivery, and it is good for the country. It will make us more competitive and attractive to investors and will prepare our people for anything the modern economy brings. We all need to be more than computer ate; we need to become one with technology. That is what we mean by an uptake of technology. We mean that we must exist with it at a whole new level.
Still, Madam Speaker, something is missing. Real growth and innovation need institutions willing to take financial risks, something that has been missing in Fiji. We have been in discussions regarding the creation of a venture capital funding institution, with Government participation, to finance new ventures. Unfortunately, mainstream banks have shown to be more conservative, and the Fiji Development Bank has undertaken that role to compensate for the conservatism of our banking sector. When we establish an organisation in Fiji to fulfill that role, FDB can focus on development full-time, in particular in agriculture.
The International Community has endorsed our overall management of the economy. So we intend to maintain our economic framework in which lower taxes and investmentincentives stimulate the private sectorand are accompanied by public investment in better infrastructure and in the education that is needed to produce a smarter and skilled workforce. This will oil the wheels of the Fijian economy and make it more efficient.
Madam Speaker,
A national budget is not exclusively a financial document, although it provides financial guidance. It is really a statement of intent. It is the government in action, turning its philosophy into programs and its promises into deeds.Over the last three years, the Bainimarama Government has done three things with the budgets we have presented: We have rationalised funding across the board to ensure that all sectors of society are treated fairly and all necessary activities are funded. We concentrated funding in a few high-priority areas that needed immediate attention. And we have sought out ways to correct past oversights or injustices, to make people feel whole, to pay past debts or to fulfill forgotten promises. We will do that again in 2015.
We will continue to develop and expand our infrastructure program and build our national capacity through our education revolution. And as I will outline shortly, we will also expand our reform program into two new areas:The first is a major investment to improve the quality of our health system – new hospitals, more doctors, more nurses, more allied workers. The second is the commencement of a major overhaul of the Civil Service to make it more efficient and responsive. We will do all of this with the assistance and cooperation of our development partners.
Madam Speaker,
No government can put its ideas into action without an able and professional community of public servants who have the education, skillsand experience to deliver on our ambitious development agenda. Fiji is dispersed across so many islands, and our public servants have to be especially innovative, responsive, and dedicated. They also need to be able to leverage new technologies, including mobile communications. With the support of our development partners, we will enter a transformational phase that brings out the best in our public servants.
Two years ago, the Honourable Prime Minister, as Finance Minister, announced the biggest infrastructure spend in Fiji’s history to tackle one of our biggest infrastructure challenges – the state of our roads. Since then, we have invested more to develop and improve these vital arteries in our economy, on which the free flow of people and goods and services depends. And we have made other major investments in infrastructure—especially inour ports and airports to streamline their operations, free up the blockages, bolster our exports and reduce the cost of imports.
All this will continue in 2015, including a major investment to upgrade Nadi International Airport, our nation’s gateway and the main entry point for the international visitors who support our biggest revenue earner – tourism.
Madam Speaker,
Last year, we announced the biggest spend in any Fijian budget on the biggest investment any Fijian Government has evermade: a landmark breakthrough to provide our young people with free schooling at primary and secondary level, plus scholarships and a tertiary education loans scheme.
With this bold program, we established once and for all that no poor child will ever be denied the opportunity to receive a proper education. Poverty must be a temporary condition, and education is the weapon of its destruction. By doing this, we have broadened the horizons of every Fijian child, given hope to every Fijian parent, and made a gift to the Fijian nation.
Madam Speaker,
In 2015, we will have 142 new teachers in our primary schools and 206 in our secondary schools and embark on major initiatives in curriculum development. And as we have already flagged, we will extend our free schooling program to the nation’s pre-schools.
By funding students attending accredited pre-schools in their final year before moving on to primary school, we are equipping them better and earlier for what we hope will be years of continuing education. We want to instill a culture of learning in every Fijian. Because that is the key to becoming a smarter and skilled country.
As the Honourable Prime Minister has stated, nothing that the Bainimarama Government has ever done is more important than ensuring the future well-being and prosperity of our people or the future well-being and prosperity of our nation. We are building a smarter Fiji, a Fiji with an even more educated workforce able to compete in our region and in the world.
To this end, in 2015 we are establishing a number of dedicated technical schools to supplement our existing technical colleges and universities. It is all part of a long-term investment in our future that is bold, socially responsible and economically justifiable.
More than any other of our initiatives as a Government over the past eight years, it is a statement about our values and where we want to take the Fijian nation – into the ranks of the“clever countries”, those nations acknowledged for the skill sets of their people. Citizens of the world, not just of their own nations. Smart enough to compete against the best.
Madam Speaker,
This year, we will concentrate some needed resources on health, security and water.
This budget funds the beginning of a major reform program through which we will hire 150 new doctors, 200 new nurses and 91 other health workers such as lab technicians and pharmacists. We will open new hospitals and renovate existing ones, invest in new equipment and laboratories, develop the means to treat most serious health problems here in Fiji, and take health services to rural areas by opening clinics and nursing stations. We will also use technology, including remote diagnostics.
We have increased capital grants to the Water Authority of Fiji by a huge amount—nearly $99 million—in a concentrated effort to eliminate most of the impediments to ensuring that all Fijians have access to clean water and adequate sanitation. The total budget for the Water Authority of Fiji for 2015 is $239 million.
Madam Speaker, the people cannot wait through endless budget cycles for clean water. They need it now, and we need to do everything we can to deliver it now. It is a large undertaking, and it requires investments in equipment, laboratories, plants and systems. We can’t do it overnight, but we have to begin now, and we have to concentrate resources to do as much as we can as soon as we can.
The last concentrated effort I wish to point out here is the need to deliver better security and more effective justice. We are investing heavily this year in technology to help the police solve crimes, coordinate their efforts, fight international crime and keep people safe in their beds at night. We are investing heavily in police science, dedicating close to a million dollars for forensic laboratories, equipment and training. Science is a key to better justice. Modern forensics, properly administered, catches more criminals. And there is another beneficial effect: It reduces the number of wrongful convictions. It is not enough just to put someone in jail; we only get justice when we convict the right person of a crime. The people are not protected when a criminal goes free, and we are all diminished when justice is denied.
We will also invest in police facilities to make them safer and more professional. We will begin a major procurement to replace analogue police radios with an integrated multiband digital system that will connect police in all four divisions. New traffic management equipment, including cameras, will keep the roads safer. We are funding an integrated border management system that will enable us to combat international crime—terrorism, drug trafficking, trafficking in persons, and fraud. Our police work with police organisations from all over the world, and they need to be just as prepared and well equipped as the police in developed countries.
And what of the unfinished business, the repaying of old debts, and the drive for fairness and justice for people who had been forgotten? Last year, we committed to compensate women who been short-changed on their government pensions because they hadn’t been credited for their years of service before marriage. The Honourable Prime Minister distributed cheques to some of these women just this morning.
And there are a few examples for 2015.The Government has put together a financial assistance package for Fiji’s Christmas Island veterans, who were exposed to nuclear radiation while serving on Operation Grapple between 1958 and 1960. They served well, and they were exposed to dangerous radiation. Although Fiji was a British colony at the time, we have a debt to our fellow Fijians, and it must be paid. We also are adjusting the pay for police officers whose salaries were adjusted in 2009 due to the government’s Job Evaluation Exercise. Others security agencies had implemented the JEE retrospectively, but the police agencies did not. They will now receive a lump-sum payment to make up the difference, putting them on a par with other security agencies.
Retired government workers were overlooked when government workers received pay rises in 2012. We will increase their annuities in 2015 by 20 percent. This includes former Prime Ministers, members of Parliament,civil servants and members of the judiciary.
My last example of unfinished business is rural electrification. It may be more expensive to deliver electricity to homes in sparsely populated areas, but we believe it is unjust to force rural dwellers to pay huge fees to connect to the grid. It is no wonder that so many of our rural citizens are without power when they might have to pay thousands of dollars for installation. If we are a community, then we can come together to share that burden with them. We will and we must.
Madam Speaker,
No Government in our history has done more to transform Fiji for the better, to lay the policy framework for a modern nation-state. As the Honourable Prime Minister recently told the United Nations General Assembly, more laws have been passed to improve our standard of governance in Fiji during the past eight years than in the entire 36-year period since Independence.
Furthermore, no Government in our history has done more to give the Fijian people access to basic services. Indeed, service delivery has been one of the defining features of the Bainimarama Government. We deliver. We serve. And the Fijian people recognised that by giving FijiFirst a landslide win in the September election.
As His Excellency the President outlined in his speech last month opening the Parliament, many of the Government’s spending initiatives for the coming year are skewed towards assisting the less fortunate among us. As our economy grows, we can embark on more programs to address disadvantages and take the cost-of-living pressure off low-income earners.
But we also need to do more to streamline and improve our service delivery. Or as this Budget’s theme puts it: “turning promises into deeds.”
Madam Speaker,
A centerpiece of this budget is the commencement of a major overhaul of the Government’s principal instrument of service delivery – the Civil Service—to ensure that it meets international best practice, delivers what Government decides quickly and efficiently, is prudent with public finances and plays a more effective role in national development and the growth of our economy.
In 2015, with the support of some of our development partners, a team of international consultants will move into the Civil Service and dissect its functions, working with it, not against it, to evaluate its performance. As the Honorable Prime Minister has already stated, this is not a purge, and most civil servants have nothing to fear. But it is abundantly clear from the Auditor General’s reports that some of our existing processes are deficient, and we need to fix them.
Our vision for the nation calls for a skilled, professional and accountable civil service. But that requires something of government leaders: We have to ensure that the systems that civil servants work in, the technologies they work with, and the rules of administration that they follow encourage and support them. That will be the game changer in our ability to deliver services. Our citizens expect more from our governments. They expect more services, they expect faster services, and they expect government to be responsive and to care about them. We cannot let them down. Madam Speaker, we believe our Civil Service will rise to this challenge as long as we design the right system, the right processes, and the right incentives.
Madam Speaker,
There are four keys to transforming the way we serve our people. First, we must improve the leadership in public service with a strong cadre of public service managers. Secondly, we have to lift staff performance by helping employees develop their skills. Civil servants have to work in an environment where effort and hard work are recognised and rewarded. Many departments will need to restructure to keep in line with developments in the global economy and enable our country to overcome the challenges that the global economy poses for a small island state.
Third, we need to start a revolution in the way we deliver services–through new technologies and new government centres, through mobile devices and the Internet. We have already gotten a start on that here in Fiji with our tele centres and online services. In the future, all services that can be delivered electronically and at a distance will be. Finally, we have to be able to recruit and retain the best possible people. Public service is a noble calling. It deserves respect and proper compensation—respect and compensation that is earned through performance and accountability.
Madam speaker,
This Government will transform the way citizens interact with the Government. We will transform the way services are delivered. This will require innovation and leapfrogging into the use of new technologies. This will require our departments and agencies to reorganise themselves and for civil servants to reskill themselves. This what our citizens deserve.
It is time to address the deficiencies that have plagued successive governments once and for all. Fijians are entitled to expect that their hard-earned tax dollars are used to maximum advantage. So we are instituting a range of measures to make the system more transparent, more accountable and more efficient. To achieve this, we will strengthen the ability of civil servants across the whole of government to manage finances, audit programs and accounts, and procure goods and services, among other responsibilities. We will ensure that we are able to attract the most talented professionals to work in these areas in government, pursue their careers in government, and be rewarded for their labour and dedication.
Civil service reform will go hand in hand with reform of procedures like procurement. We will retool our thinking to look for best long-term value rather than simply go for low prices. Government is too important to use shoddy goods and work out of poorly built and maintained buildings that were not designed for their purpose.
In that regard, we are in early discussions with the Fiji National Provident Fund to lease to the government modern, purpose-built structures. By operating out of buildings that were designed for the work of each ministry, government will be more efficient, civil servants will have more pride in their work and the public will have more pride in their government. All Fijians would benefit from the revenue FNPF would earn as a major landlord to the government.
Education
Madam Speaker, the 2015 Budget will build on our decisive and bold investment in the education sector in 2014 and continue our drive to give all Fijian students access to free, quality education at all levels.
Madam Speaker, the total funding for the education sector has been increased to $556 million in the 2015 Budget. This is an additional investment of $30 million compared to this year and accounts for around 17 percent of the total budget.
The revolutionary investment towards building a smarter and more skilled Fiji and providing free education for both primary and secondary school education has proved to be one of the greatest achievements of the Bainimarama Government. We will continue to build on this achievement.
Madam Speaker, the free education program, free textbook program and the free bus fare scheme have provided needed financial relief for parents, and its impact on the education of our children has also been immediate. Enrollment in schools has increased this year by 3 percent, and daily attendance has also improved. School facilities have been upgraded with new investments in IT equipment, libraries, and building upgrades. All this will lead towards the creation of an environment that supports good teaching and encourages learning.
Government has allocated $35 million for primary education and $31.4 for secondary schools in order to continue the free education initiative and to encourage parents to keep their children in school.
While the grant allocation to schools will continue to be generally aligned to the number of students, Government will also take into consideration the location and economic status of schools. This will ensure that increased funding is provided to disadvantaged and remote schools in the rural and maritime areas that need more financial assistance.
Madam Speaker, Government will also provide flexibility on the use of the school grant. This will mean that if a school has a well-maintained and proper building facility that does not require much repair or upgrading, the maintenance component of the grant could be applied to improving library facilities or IT infrastructure. This, however, will have to be justified and approved by the Ministry of Education to ensure that that there is no abuse of funds.
Madam Speaker, from the second term of next year, Government will extend the free education program to pre-school students at recognised and accredited schools. In the next few months, the Ministry of Education will finalise the list of these schools.
Educators believe that this program will yield the best results for the dollars spent by targeting those pre-school students who are one year away from attending primary school, and we will limit funding under this program to those students. A sum of $1.4 million has been set aside for this purpose, and we expect to assist around 20,000 school children.
Government will also continue to provide $3.3 million next year to fund the salaries of pre-school teachers, and a building grant of $150 thousand is also budgeted for early-childhood education schools.
Madam Speaker, Government’s new initiatives and investments in the education sector next year are also focused in areas that will help students learn more. Students benefit when they get more attention from their teachers, and we will improving the teacher/student ratio to ensure that more teachers can give focused attention to their students.
This means we will recruit more teachers and provide training to help them deliver quality education for our modern era. Teaching has evolved with technology and advances in school research, and we need to take advantage of the new and effective ways that students are encouraged to learn and teachers are encouraged to be creative and energetic.
In this regard, Madam Speaker, Government has set a target to improve the teacher/student ratio in primary schools andin secondary schools by 2016. We are providing $7 million for the recruitment of an additional 142 teachers for primary and 206 for secondary schools. This will not only improve the learning environment and allow teachers to give their children the attention they need, it will provide new job opportunities and absorb more of the graduates that our institutions produce.
Madam Speaker, Government from Term 1 next year we will also provide 250 ml of milk per day to all Year 1 students. This would help improve the concentration of these young students at this early stage of education and provide important nutrition that some might not get at home. A sum of $3.6 million has been allocated in the 2015 Budget for this, which will also cater for transportation costs for schools in maritime and rural areas.
The Grants per Child for Schools will be adjusted to give a higher per-child payment to schools in rural areas, where costs per child are higher and enrollments lower than in urban schools. This flexibility will inject more fairness into a process that unduly favored well-resourced urban schools over needier rural and maritime schools.
Apart from the funding for free education, Government will continue with to provide the bus fare subsidy to assist students from low income households. Students who travel by boat, carriers and other transport where bus service is not available will continue to receive this assistance as well. A sum of $20 million is allocated next year, which will assist approximately 80,000 students.
Madam Speaker, the curriculum is considered the heart of the education system. It is therefore important that our curriculum be robust, relevant and responsive to the changing environment. We are strengthening our Curriculum Development Unit by creating 8 new positions. We will also appoint subject matter specialists who will be required to have a minimum of a Bachelor’s degree and Master’s degree in the respective subject area. Government will continue to prioritise the implementation of the Fiji National Curriculum Framework and the New Assessment Framework with an allocation of $1.2 million.
School Construction and Upgrade
Madam Speaker, Government is mindful of the growing demand for new schools.
Government has allocated $1.3 million for the construction of a new secondary school in Ono-I-Lau that will also cater for students from the nearby islands including Fulaga. This development in the far-away maritime region will enable more students to attend school close to home. This will also mean parents will be much closer to their children and able to guide them through these formative years.
A further $2.7 million has been allocated for the completion of the New Bau College that will cater for the increasing number of students in this area.
Also, $700 thousand is allocated for the extension of St Francis College and RatuLalabalavu Memorial School and $350 thousand for the establishment of the Nakorotubu Secondary School in Ra.
Madam Speaker, Government is also funding the relocation of the Sigatoka Methodist College to Kulukulu with a budget of $2 million. The relocation would allow for the expansion of the college and also create more space for the extension of the primary school at the current location.
Government is also providing $842 thousand for the establishment of the Vatubalavu Infant School and a further $118 thousand for the completion of the new Nailou Infant school. These schools will cater for Year 1 to 3 students.
Government has provided a building grant of $423 thousand in 2015 to upgrade schools declared as heritage sites in Levuka.
A further $1.5 million is allocated for the maintenance and upgrading of Government schools and staff quarters, with a further $1.8 million allocated to cater for food and other administrative costs at Government boarding schools.
A building grant of $300 thousand is provided for non-Government primary schools, and $700 thousand for non-Government secondary schools, for upgrading and maintenance.
The One Laptop per Child program will now be called the “One Learning Device per Child” program so that we can provide other learning devices—such as tablets and other devises—in line with the fast-changing technological environment. Government will provide $800 thousand for this initiative.
A grant of $550 thousand is provided for special schools to cater for blind, developmentally disabled and physically handicapped students. To create awareness of alcohol- and substance-related abuse and promote safe student lifestyles at schools, Government has increased the allocation to the National Substance Abuse Advisory Council to $700 thousand.
Vocational Education and Training
Madam Speaker, Government has over the years placed special focus on technical and vocational training to prepare our students for demanding and well-paid jobs in vitally important skilled trades.
Next year, we are taking a new approach to technical and vocational training in order to make up for the current shortages of workers in booming sectors—particularly construction–and prepare Fiji to develop a pool of qualified workers with the skill sets that industry requires. This investment will not only provide opportunities for employment in Fiji, but can also build expertise that Fijian companies can use in the region.
Government will set up three new fully-fledged technical colleges, with appropriate infrastructure and equipment, in the Suva/Nausori corridor, Nadi and Labasa to provide Award programs in specific trade areas.(That’s for next year.) By 2016, ten more colleges will be up and running. We will work very closely with industry in identifying areas of need and in designing and delivering training.
A total of $7 million is allocated for the establishment of the 10 technical colleges, which will include remodeling of workshops and purchase of equipment in preparation for additional colleges that will be established in 2016. For the maritime region, the full vocational courses will continue to be provided at mainstream schools
These colleges will also cater for short-term training to meet immediate demands from various sectors. A funding allocation of $1 million is provided for the Life Skills Training program next year.
A tuition-free grant of $1.3 million is provided to cater for technical and vocational students at these schools.
Madam Speaker, Government will continue the Vocational Education Training Scholarship with a budget support of $2.6 million in 2015 (CHECK), and will provide $1.8 million for vocational training in rural and maritime regions. These programs will continue to be administered in collaboration with the Fiji National University.
Tertiary Education
The tertiary education loan scheme (TELS) introduced this year will continue, but with further streamlining to make it more efficient and responsive to student needs.
A sum of $52.5 million is allocated for the tertiary education scheme for next year. This includes funding for the Toppers scheme and the provision of low interest loans for tertiary education. All students meeting the admission requirements at any tertiary institution will be accommodated.
Madam Speaker, I am pleased to report that students from the technical colleges will be eligible for TELS beginning next year.Apart from this, an increased allocation of $12 million within the TELS allocation to cater for accommodation, transport and other expenses for students.We will continue to provide 600 full scholarships under the Toppers scheme for high achievers to pursue tertiary education in Government priority areas.
In addition to the funding for TELS, $15.7 million is provided to continue funding for existing students who were awarded scholarships prior to the introduction of the new tertiary education scheme. This will eventually be phased out as students under previous scholarship scheme complete their studies.
Madam Speaker, Government will also continue to support higher education institutions under the new funding model that was adopted this year to ensure a more level playing field. For 2014, the University of the South Pacific will be provided an operating grant of $36.6 million, the Fiji National University will receive an operating grant of $38.6 million, and the University of Fiji provided with be provided $2.5 million.
In addition to its operating grant, FNU will receive a capital grant of $4 million for the construction of its Labasa campus.
Madam Speaker, these enormous funding allocations towards the provision of quality education for early childhood, primary and secondary school, and technical and vocational and higher education is in line with the right to education enshrined in our Constitution and Government’s commitment to honor and protect this fundamental right for all Fijians.
Health
Madam Speaker the Constitution also guarantees the right to health, and it is Government’s responsibility to provide conditions and facilities necessary for quality health care services.
For 2015, Government has provided a total budget of $269.7 million towards give people better access to quality health care. This is an increase of around $47.3 million from this year and will fund several new initiatives designed to provide a strong response to current needs and build a healthier nation over the long term.
Madam Speaker, next year the Ministry of Health plans to spend $8.1 million to recruit and retain an additional 200 nurses and 150 doctors. Government will also ensure that doctors and nurses are well trained and properly motivated to upgrade their skills and remain in Fiji. Our objective is to achieve an internationally accepted doctor-to-patient ratio by 2020. Government has also provided $2.7 million next year to hire 91 additional health workers such as pharmacists and lab technicians, and has allocated $1 million for in-service training of health personnel in the Ministry of Health.
Madam Speaker, Government from next year will ensure that all necessary prescribed medicine under price control is provided free of charge to Fijians with incomes below $20 thousand. This is a new initiative and will ensure that no citizen’s health care is compromised because they can’t afford medication. This will also include medicines for non-communicable diseases. $8 million is provided in the 2015 Budget to fund this initiative.
Government has budgeted $1.3 million for next year to cover expenses relating to overseas medical treatments and consultancy services for people requiring specialised treatments not available in Fiji. Government is also using expertise from overseas visiting teams to assist our local hospitals with advanced specialised services. For next year, $500 thousand is allocated to cater for such overseas visiting teams.
Government will provide $1.5 million to charter aircraft to evacuate patients who suffer life-threatening medical emergencies.
Capital Projects
Madam Speaker, Government will also undertake a number of capital projects in 2015, some of which are already underway, to modernise our health facilities.
Government is providing $17.5 million in the 2015 Budget for the construction of the new 55-bed Ba hospital, which commenced this year. This public-private partnership arrangement with the Ba Chamber of Commerce is a good model for private sector collaboration in improving the delivery of health care.
$4 million is provided for the construction of the new Nausori hospital with another $5.5 million allocated for the construction of the 10-bed low-risk maternity unit in Makoi.
The relocation of the Naulu Health centre will be undertaken at a cost of $850 thousand, while $200 thousand is allocated for the site works for upgrading the Valelevu health centre.
Madam Speaker, Government is providing $6.5 million in 2015 to overhaul the Lautoka Hospital Accident and Emergency Department and make it more modern, efficient and patient-friendly. This project is expected to be completed by next year.
$2.2 million is budgeted to upgrade the Keiyasi health centre, with a further $2.4 million provided for the upgrade and extension of the Rotuma hospital.
Madam Speaker, Government will also continue with the extension of the CWM maternity unit, and has provided $3 million for the civil works next year. This project involves the construction of a new 224-bed unit that will cater for the rising demand for maternity services in Suva.
The construction of new health care facilities will bring health services closer to all Fijians and ensure that timely medical assistance is provided.
Also, $3 million is allocated for the upgrading and maintenance of urban divisional hospitals and institutional quarters. Government has provided $1 million for the maintenance of health centres and nursing stations, and a further $300 thousand for the purchase of equipment.
Madam Speaker, in total a total sum of $41 million has been budgeted for the purchase of drugs, vaccines, consumables, laboratories, rations, oxygen supplies and medical equipment.
Government is also undertaking a large investment to establish a world-class tertiary hospital in Lautoka. This will be run in collaboration with the Medical College of the Fiji National University. When it is completed, it will provide advanced medical and surgical services.
Medical services at the tertiary hospital will be provided free of charge to those households with income less than $20 thousand and to all retirees, irrespective of whether they are on pension or not. Given the need to complete preliminary works, Government has provided an initial budget of $2 million for this initiative and is collaborating through FNU with development partners.
Transport and Infrastructure
Madam Speaker, in 2013 Government made a critical commitment to improve the state of our roads, which had suffered from years of neglect. The Fiji Roads Authority has received substantial funding in the last 2 budgets to plan, build and maintain good roads in the country. Investing in infrastructure like roads makes sound economic sense. A good transportation frees people to travel where the jobs are, helps everyone from large manufacturers to small farmers take their goods to market, attracts investment, and reduces injuries and wear and tear on vehicles and equipment. We have seen much improvement all around the nation because our roads are better.
However, more needs to be done. We still have a huge backlog to clear, and we especially need to upgrade our bridges and jetties, in particular in the maritime areas.
Madam Speaker, reducing this backlog and meeting the increasing expectation for improved services will require a much larger investment this year. This is a critical year of investment in our journey to see much better roads, much better water systems, and modern standards throughout the country.
Next year’s increased investment is necessary, and we fully expect spending on roads to taper off and stabilise in the next few years. The Fiji Roads Authority (FRA), contractors and workers are all geared up and capable of delivering a much larger program next year.
Madam Speaker, Government is providing a capital grant of $653 million to the Fiji Roads Authority next year for this critical investment. This is a significant increase of $179.1 million from this year’s allocation.
With this much-needed investment, we will have come most of the way to modernising Fiji’s infrastructure and bringing it up to international standards.
Madam Speaker, Government will address the need to clear the backlog of bridge replacements all over the nation. The Stinson Parade and Vatuwaqa bridge renewal will be funded through $15 million grant from the Chinese Government.
Major work will continue on road projects in Nabouwalu to Dreketi, Moto to Buca Bay and Sawani to Serea, all funded by the EXIM Bank of China. Total funding allocation of $103 million is allocated for these projects.
Madam Speaker, we have also provided funding for the Nadi to Lautoka 4-lane project. Demand for expansion of the road network is necessary because of increased development activity and greater movement in this area.
An increased allocation is also provided for maintenance and renewal works all around the country. This is essential to clear the backlog again and ensure that our investment in roads is protected by not having to take on the burden of additional and unnecessary long-term rehabilitation costs.
Madam Speaker, Government next year will launch an initiative to put up street lights all around the country, near villages, police posts, shops and market places. This investment, while beautifying and making our roads safer, will also create opportunities for local communities to engage in productive business activity at night. And it promotes safety.
Government will also undertake a nationwide survey and consultation process to gather information on the travel behavior, mode of transport around the country, types of vehicles and other pertinent data to assist with future planning of developments in the transport sector. $750 thousand is allocated towards this under the National Transport Database and Transport Planning Software allocation.
The Land Transport Authority is provided an increased operating grant of $14.9 million for next year. This will cater for salary adjustments after the Job Evaluation Exercise undertaken by the Authority. A capital grant of $3.4 million is given for the purchase of vehicle inspection equipment, repair and upgrading of weighbridge, and construction of the new Labasa office, which suffered a fire this year.
Madam Speaker, Government is also investing to improve transportation to our maritime region.
Government has provided an increased allocation of $2.4 million for the shipping franchise scheme. The increase will cater for increased frequency of services to remote and uneconomical shipping routes subsidised by Government.
$800 thousand is provided for upgrading of existing Government Shipping Vessels. $850 thousand is also provided for upgrading of Government wharf infrastructure, and an additional $800 thousand will go towards the dredging of the wharf entrance.
Government is providing $3.1 million for the final installment on the purchase of a vessel to service our maritime area.
The Maritime Safety Authority of Fiji (MSAF) is provided an operating grant of $2.2 million and a further capital grant of $3 million next year.
An operating grant of $3 million is provided to the Civil Aviation Authority of Fiji for air transport services, and a further $1.68 million for subsidy to serve uneconomical domestic routes.
We are also allocating $200 thousand for preparatory works for the Rotuma airstrip and another $300 thousand for upgrade works at other airstrips around the country.
Water
Madam Speaker, Government will continue with its program to ensure that all Fijians are provided access to clean and safe drinking water. It is a right guaranteed under our Constitution.
The demand for water has been increasing along with the increasing development in the major urban centres in Fiji. It is critical to identify new water sources and undertake increased capital investment to cater for this demand.
The Water Authority of Fiji has been provided a grant $239.2 million in 2015. This is an increase of $99.6 million.
The capital grant has increased by a substantive $95.1 million for next year, with the Water Authority provided a total of $176.1 million for capital works.
$63.2 million is provided for the operations of the Authority, an increase
Madam Speaker, next year Government will undertake a major investment to ensure that clean and safe drinking water is available in rural areas. We have allocated $2 million for the installation of Ecological Purification Systems in water sources used by rural communities to purify water that will be safe for drinking.
Madam Speaker, Government will also provide 91,250 litres of free water annually to Fijian households with income less than $30 thousand from next year. The Water Authority of Fiji will manage this initiative, and the operational framework will be finalised very soon.
Energy and Electricity
Madam Speaker, Government is also committed to improve access to electricity to those who are currently unconnected.
Government is increasing the budget provision for rural electrification projects to $19.5 million to cater for the extension of electricity supply, solar system installation, and house wiring. This is an increase of $9.5 million.
Government will make sure that all community projects where deposit has been paid is pursued urgently and all backlogs are cleared next year.
Also, from next year we will reconfigure the contribution formula to ensure that people living in areas where houses are scattered apart are not burdened with higher deposit requirements, as is currently the case. Government will bear the costs to ensure that every household is connected affordably and fairly.
Madam Speaker, Government has also increased the electricity subsidy for low-income families from the current 75 kilowatts to 85 kilowatts. An increased budget of $5.7 million is provided to cater for this next year.
Grid extension will be undertaken for the Nacavanadi/Korotasere, Takaimalo and Dawasamu/Bureiwai projects. A sum of $2.7 million is provided for this in next year’s Budget.
Maintenance of existing power distribution infrastructure to rural Government stations will continue with a budget of $400 thousand.
Madam Speaker, Government has been undertaking investment to expand our supply of energy from renewable sources and reduce dependence on imported fossil fuels.
$800 thousand is allocated for the Somosomo hydro project, which includes funding for maintenance of road access, line construction, house wiring and other logistical costs. This project is co-funded by the Chinese Government.
Government is providing $625 thousand next year to establish an accredited Biofuel Testing Laboratory in partnership with the University of the South Pacific. This would include the purchase of equipment and consumables and provision of training and accreditation.
Government has provided $275 thousand for renewable energy development projects, $400 thousand for Bio-Diesel Implementation projects and $200 thousand for Biogas development in rural areas. $450 thousand is allocated for the Bukuya Hydro Power Scheme.
Madam Speaker, the Government is preparing a process to import fossil fuels such as petroleum and gas. Government will call for international tenders for the supply of fuel, which will enable us to negotiate lower prices and pass savings to consumers when local oil companies procure fuel from Government. This new initiative will ensure stability of fuel prices in Fiji and will ultimately lower both the cost of doing business and the cost of living. $250 thousand is allocated for this purpose to finalise these arrangements.
Housing
Madam Speaker, the provision of affordable housing to all Fijians is a key priority for the FijiFirst Government.
Government is aware of the rising demand for housing in the major urban centres and is allocating funds to encourage new land development for housing and construction of new homes for Fijians.
To ensure that Fijian residents have access to affordable residential housing, Government is increasing the stamp duty to 10 percent on transfer for non-resident strata title property buyers and 5 percent on non-resident strata mortgages.This should curb the foreign demand to own residential properties and make it more affordable for Fijians.
These measures will be complemented by amendments to the Land Sales Act that will restrict non-residentsfrom buying freehold land or leasing state land for residential purposes. They can, however, purchase strata title property on these two categories of land. This restriction will not apply to the leasing of iTaukei land for residential purposes. The effect of this would be to create demand by foreigners for the leasing of iTaukei land, which is currently not their preferred option, thereby increasing the value of iTaukei land. This will mean more lease money for land-owning units.
Government from next year will also exempt from capital gains tax any transfer of assets in cases of transfer for “love and affection”—that is, transfers from parents to children, between spouses and within and between grandchildren and grandparents, and between siblings.We will also continue the stamp-duty exemption on purchase of a first home. We will also grant stamp duty exemptions for mortgages for agricultural purposes.
Madam Speaker,
Government has again set aside $10 million to assist first-home buyers. Fijians with income of less than $50 thousandannually are eligible for a grant of $10 thousand for the construction of a new house. A grant of $5 thousand is also available for the purchase of an existing first home.
In addition, we will continue with the VAT refund scheme to encourage construction of new houses by first-home owners. Proper documentation and verification is necessary to take advantage of this program. These incentives will encourage construction of new homes.
Funding allocation is also been provided for the provision of low cost housing.
The Public Rental Board is provided $3.4 million for the completion of 50 flats in NaqereSavusavu and a further $700 thousand for the completion of the 36 flats in Uci place Kalabu.
Government is also providing $500 thousand towards the “social housing policy” that allows Housing Authority to write off loans under special circumstances of hardship. Some 400 households and 17 village housing schemes have been assisted since the introduction of this noble initiative in 2011. Next year’s allocation is expected to assist a number of families. A review of this initiative will also be put in place.
Madam Speaker, Government will continue with the squatter upgrading and resettlement project with a budget of $3 million next year. This will cater for the ongoing projects at Cuvu, Caubati and Ledrusasa, which is scheduled to be completed next year with lease titles provided to 260 households. This funding allocation will also cater for the upgrading in Sasawira, which will be completed by 2016 and produce 150 leases.
Government is providing $2 million next year for phases 1 and 2 of the Lagilagi Housing Development project. This will cater for the completion of the 143 home units, community hall, kindergarten and playground and is undertaken in partnership with the Peoples Community Network.
Madam Speaker, Government will continue to fund the Town Wide Informal Settlement Upgrading Project with a funding provision of $3 million in 2015. The funding is for the upgrade of informal settlements on iTaukei land in various areas between Suva and Lami(Qauia, Wakanisila, Nadonumai, and Waidamudamu) and will ensure provision of water and sewer services, electricity and road connection. The project upon completion will benefit approximately 1,050 households.
Similarly, $530 thousand is allocated for the City Wide Squatter Upgrading Project to upgrade settlements in urban and peri-urban areas in the Suva-Nausori corridor, Nadi-Lautoka corridor, Labasa and Savusavu.
Government is also providing $500 thousand to the Housing Assistance Relief Trust for renovation and construction of new HART homes.
Madam Speaker,
Government is also allocating $1.1 million next year towards emergency assistance for home-fire victims. This is available to those with proper lease titles but earning less than $20 thousand and without insurance coverage for fire.
Poverty Alleviation and Social Protection
Madam Speaker, Government is committed to protecting the vulnerable and the financially disadvantaged.
The coverage of Government’s welfare assistance has increased since the reform of our social protection program in 2012 and the introduction of the Poverty Benefit Scheme. Government next year will undertake a comprehensive review of the eligibility criteria and iron out certain administrative issues to ensure that those with genuine needs are assisted.
Madam Speaker, the Ministry of Women, Children and Poverty Alleviation is provided an increased allocation of $44.8 million next year. This is an increase of $4.4 million from this year.
Government is providing $22 million for next year for the Poverty Benefit Scheme. The food voucher will be increased to $50 from the current $30 and the cash component reduced from $60 to $50. This in total would be $10 more than the current package. We expect to assist some 17,000 Fijians are through the poverty benefit scheme next year.
Madam Speaker, we undertake this change keeping in mind the provision of free water, prescribed medicine, electricity, education, and milk for Year 1 students. With most of these essential items now provided free of charge by Government, the cash component has been converted towards an increased food voucher allocation. This will also reduce abuse of welfare payments.
Madam Speaker, Government has pursued a number of policy options over the years to ease the cost of living for low- and middle-income earners. Apart from the targeted expenditure programs that I have just highlighted, Government over the years has increased the income tax threshold, reduced duty on essential items, continued with zero-rating of VATon certain products, introduced minimum wage, incentivised investment and business activity for employment creation, and invested in skills development, amongst other things.
Madam Speaker, we do not have full control over the prices of the many products Fijians consume that are sourced from abroad, such as wheat, meat products, fuel, and groceries. Government believes that the best way to ease the cost of living for the poor is through targeted expenditure programsand buying Fijian products currently available as substitutes.
Targeting these expenditures to the lower income people allows the poor to spend on other goods and services. This is a cost-effective response to the cost of living that puts more spending decisions in the hands of the people.
Madam Speaker, the budget allocation for the social pension scheme has been increased to $8 million next year. The additional $5 million will accommodate the increase in the monthly allowance from $30 to $50 and also cater for the lowering of the eligibility age to 68 beginning from 1 July 2015. This will assist around 13,300 Fijians.
Madam Speaker, the eligibility age will be further lowered to 66 from 1 July in 2016 and will continue to cater for those who do not have any form of income or are not part of any superannuation scheme.
Government will continue funding for the Integrated National Poverty Eradication program with a budget of $300 thousand for monitoring of poverty alleviation schemes across Government.
$500 thousand is allocated for the welfare graduation program, which helps able-bodied recipients of social welfare find jobs or create their own income. In addition, $500 thousand is also allocated for the Sustainable Income Generating Project, which identifies squatters with agricultural backgrounds for training and farming activities that can generate income.
We will continue with the food-voucher assistance provided for pregnant mothers in rural areas attending pre- and post-natal care with a budget support of $1 million.
Madam Speaker, Government will beef up its efforts to protect children from criminal activity and sexual assault. Government will establish help lines and work with NGOs to educate and empower children to report offences immediately to responsible authorities. A total budget of $500,000 million is provided towards child protection.
Apart from this, $2 million is provided for next year to cater for child welfare, care and protection allowances that will assist more than 2,000 children.
Madam Speaker, we are increasing funding for the Women’s Plan of Action to $1 million to address the 5 thematic areas under the plan. This will foster greater participation of women in formal sector employment and decision-making and help train women community leaders to better advocate for women and defend women’s rights.
Government is providing $500 thousand for another Women’s Expo, after the wonderful success of this year’s inaugural event, and we plan to make it annual national event. The Expo provides a good networking opportunity for women to market their products and at the same time get training to develop their own entrepreneurship.
Madam Speaker, the Constitution provides to persons with disabilities the right to reasonable adaptation of buildings, infrastructure, vehicles and working arrangements to enable their full participation in society. The National Council of Disabled Persons will get a grant of $290 thousand i