The Joint Conference was well attended with 74 delegates and spouses representing the two councils. The Governments were represented by Hon Tomasi Vuetilouoni, Minister of Commerce, Hon Kaliopate Tavola, Minister of Foreign Affairs and External Trade and Hon Phil Goff, Minister of Foreign Affairs and Trade.

Planning is under way for the next Joint Conference which will be held in Fiji in 2004.

2.1 The Joint Conference noted that since the last communique was issued, the Fiji Government had responded to calls for improvement in infrastructure encompassing water, power, sewerage and transport, in particular long overdue agreed expenditure on waterworks has been accelerated. However, much remains to be done.

2.2 Water/Wastewater

Major issues with both the need for additional reticulation and security of supply were noted. Poor maintenance, combined with the age of pipes, has resulted in up to 50% leakages. A need for asset management plans and operator training was identified. The Conference re-confirmed last year's recommendation that Government Departments should pay for their water as other users do.

• Given the capital requirements, one solution was for the partial divestment of public ownership to the private sector.
• The Fiji Government's policy of corporatisation (rather than privatisation) is encouraged.

While welcoming the Fiji Government's seven year programme for improvements, the Joint Conference called for urgent action now, which needed to include a balanced investment in both water and wastewater system improvements, to maintain public health and environmental standards.

2.3 Transport

The Joint Conference welcomed the current expenditure on Nadi Airport - both in the runway extension which is so vital in increasing capacity for airfreight export expansion, and in the Terminal upgrade which is vital to the Fiji Tourism sector remaining internationally competitive. Upgrades of facilities at Nausori should be addressed in the immediate future.

It was of concern to the Joint Conference that the roading network continues to have critical shortcomings. In particular the Ba-Lautoka corridor is suffering from overloaded timber trucks and water bottle containers. Combined with increased use of roads for the transport, of coal for instance, and a decline in the use of rail track (reflecting the decline in the sugar industry) the need to strengthen the long term planning process for future road demands and rehabilitation of the network, is a matter for early action by the Fiji Government. The Conference noted that there is road congestion in Suva and recommended that there should be long term planning to establish manufacturing outside urban centres. The benefits are seen to include reduction of demand on strained resources and urban population drift.

2.4 Power

Recognising the critical importance of electric power to tourism and investment in Fiji the Joint Conference noted that diesel generators were making up shortfalls in capacity. Given the cost and environmental issues involved in that solution the Conference called for the Fiji Government to revisit the second stage of Monosavu - it is time to build a larger dam.

The Joint Conference called for a co-ordinated approach to the various power initiatives currently underway. Private power initiatives supplying to the national grid are to be encouraged.

2.5 Capital Works Opportunities

The Joint Conference welcomed the increase in the number of projects planned or underway across a broad range of sectors, particularly in the tourist industry where F$425 million worth of projects were noted. After several years of inactivity these developments were seen as a sign of a turnaround in Fiji's economic fortunes. The infrastructural needs to support these developments assumed even greater importance.

2.6 General Issues

A need for general stability and accountability was identified. Structured reform of agencies was sought, and it was noted that aid agencies were 'tagging' aid to improve the prospects for its effectiveness.

Some barriers to infrastructure investment were noted

• an overloaded court system
• a need for certification of equipment for safety
• a need to contract out administrative and regulatory matter
• a need for rigorous policing and consistent application of regulation

3.1 Of primary concern are the agriculture sector and bio-security issues which act as a barrier to Fiji exports to New Zealand and a threat to the viability of the industry in Fiji generally. By way of example the inability to comply with NZ regulatory requirements has prevented expansion of flower/plant exports in New Zealand.

Land tenure uncertainties remain a concern to the Joint Councils, as it is a disincentive to long term agriculture investment and diversification into non-traditional agricultural production. The Fiji Government was urged by the Joint Conference to give priority to resolving the land tenure issues.

The Joint Conference welcomed the New Zealand (and Australian ) Government's willingness to co-ordinate aid programmes to avoid duplication of effort and to better target application of aid moneys.

The Joint Conference urged the Fiji Government to look at the whole chain of activity in the agricultural sector from growing through processing to export. In particular ensuring that Fiji continues to develop those existing activities which it does well as a priority.

The Joint Conference has requested an increase in Technology and support especially better training methods and to help develop small scale production and training methods of agricultural products.

3.2 Policy Implementation

The Joint Conference noted with concern that numerous reports have been prepared and presented through the auspices of aid agencies but with disappointing implementation of recommendations. Government and aid agencies were urged to focus future efforts on implementation of existing data and recommendations.

3.3 Processing Industries

The Joint Conference urged the Fiji Government to identify niche sectors suitable for development of small-scale agriculture and aquaculture industries, and in particular processing of fruit and vegetable products to add value to locally-produced raw materials.

3.4 Organically Grown Produce

Real potential for organically-grown produce was identified by the Conference which noted that Fiji was well suited to capitalise on the growing industrial demand for such produce.

3.5 Dairy

A deterioration in infrastructure and herd quality was viewed with concern by the Joint Conference. Improvement in pasture quality was seen as a necessary first step in resuscitation this sector, along with agreed investment in processing capacity.

3.6 Fisheries

A review of Fiji's approach to licensing of foreign fishing fleets, along with an increase in investment in local fleet capacity and fish processing plant is seen as a matter for early attention by the Fiji Government. More rigorous enforcement and increases in penalties for non-complying participants is also urged.

3.7 Forestry

More local processing of valuable forestry resources, especially mahogany, is seen as being of primary importance to the future development of this sector.

4.1 The Joint Conference welcomed the increase in visitor numbers and the return to greater capacity utilisation in the tourism sector, which is expected to exceed pre-coos levels during the current year. It was noted that cruise-vessel visitor numbers are not currently included in visitor arrival numbers, an anomaly which could be easily rectified.

4.2 Development of a low cost airline to alternative Airports would be welcomed by the Joint Conference. Concern was expressed at Nausori airport where there needed to be improvements in the terminal and runway for maximum uplift by aircraft.

4.3 In regard to departure taxes in both countries the Joint Conference urged the respective governments to provide for the airline to collect such charges on behalf of the relevant authorities.

4.4 To better assist visitor arrivals into Fiji, a revision of the arrival form is sought - New Zealand's form is seen as an appropriate model.

4.5 There is growing concern from the tourist industry that with the increase in visitor arrival the current Fiji Institute School of Hospitality and Tourism will not be able to supply industry requirements. The Fiji Government is strongly urged to secure funds to allow for construction to start on the new school at Namaka in Nadi.

4.6 That consideration is given to increasing the number of hotels available. Rooms are in short supply during peak months at popular areas of Mamanucas, Western Fiji and the Coral Coast

5.1 Many issues discussed at the Joint Conference are seen as long term planning matters which take time to implement. Other forums which make similar recommendations such as the Fiji Employers Federation need to form a co-ordinated joint approach to these issues. The Joint Councils have resolved to explore ways in which they can promote that initiative.

5.2 The Joint Conference urged the Executives of the respective Councils to regularly report on progress on addressing recommendations in communiques issued by the joint conferences, including required updates to the joint website. Quarterly reviews by each Council will be undertaken.

5.3 The Joint Conference remains concerned at law and order in Fiji, while acknowledging that the media has from time to time sensationalised incidents to the detriment of Fiji's reputation with consequent flow on effects, particularly in the tourism industry. Further action to improve the law and order situation is urged.

5.4 Institutional reform remains an issue with Joint Conference calling for government and other participants to adopt international best-practice in the delivery of public sector service to the business community.