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Fiji rejects pacific currency Original Source Link: (May no longer be active)
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Fiji rejects Pacific currency
Venkat Raman
Fiji would resist any attempt to introduce a single currency for Pacific Island countries, Prime Minister Laisenia Qarase said during the 34th Pacific Forum meeting in Auckland.
“It is totally out of tune for Fiji. It is far-fetched and will not work at least as far as we are concerned and we will oppose any move in the direction,” he told The National Business Review.
“The Fiji dollar has done well and will continue to remain in favour of exporters, importers and investors. I do not think creation of a single currency will help our economy,” Mr Qarase said.
“The euro is still struggling and many countries appear to be having second thoughts on its effectiveness and we will not make such a mistake.”
The idea of a single currency for the Pacific Island countries came from an Australian Senate committee report, though Prime Minister John Howard said it was premature.
“I think we should crawl before we walk,” he said. The report also urged the forum to tackle drug trafficking, money laundering and terrorism.
Melbourne's The Age reported an Australian briefing paper with similar porposals was distributed to Pacific leaders.
Mr Howard has reportedly confirmed the existence of the briefing paper but refused to discuss its contents. It reportedly urged Pacific nations to consider "the merits of a regional approach to monetary and exchange rate policy."
Plans include the creation of a regional central bank, a single currency a currency board and adopt the Australian dollar. It also calls for pooling of regional resources in justice and security-related areas.
It advocates "a regional unit to respond to complex transnational crime and terrorism issues."
A regional financial intelligence unit to oversee and investigate financial transactions and police money laundering is also reportedly proposed.
Canberra’s assertive influence in the South Pacific was seen by other Pacific leaders as a cause for concern but none objected to Australia’s decision to contribute $A12.5 million to the Pacific Region HIV/Aids project over the next five years and a number of aid-backed programmes to foster economic development of the Pacific Island countries.
Mr Howard announced a major Australian initiative to improve transport services, including shipping and civil aviation among the South Pacific countries.
“Pacific Island countries have a continuing need to have access to effective and sustainable transport links but many Pacific airlines and shipping lines are currently facing severe challenges in continuing to provide economically viable services,” he said.
Australia will fund a Pacific aviation and shipping scoping study for the purpose, he said but did not give details. It is understood the study will include technical areas and identify areas to pool regional resources to ensure their ongoing viability and reliability.
The forum also discussed the possibility of establishing a regional airline, effectively merging a few carriers that are in financial trouble but again Mr Qarase ruled out the possibility of including his country’s national flag carrier, Air Pacific.
“Air Pacific is a profitable airline and has been registering impressive growth. The airline is also an effective partner in our efforts to boost tourism. Air Pacific will continue to operate on its own,” Mr Qarase said.
He said his country’s foreign trade and exchange earnings were severely affected after the May 2000 coup.
“New Zealand is an important trade partner and a number of avenues are being explored to boost exports. We have an unfavourable balance of trade with New Zealand,” he said.
The 16-member forum includes Australia, Cook Islands, Federated States of Micronesia, Fiji Islands, Kiribati, Marshall Islands, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
Interest in the forum nations goes well beyond the Pacific. Its dialogue partners include the US, Canada, France, UK, China, South Korea, Japan, European Union, Malaysia, Indonesia, the Philippines and India.
India’s External Affairs Minister Vinod Khanna cancelled his visit to New Zealand to attend the forum as an observer, since his government was facing an opposition-backed no-confidence motion.
17-Aug-2003
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