Parliament is gearing up for an important debate today regarding a motion that proposes an increase in the government guarantee for the Fiji Sugar Corporation (FSC). Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, has put forth the initiative, which seeks to raise the government guarantee from $200 million to $300 million. This adjustment is intended to cover FSC’s domestic borrowings for the timeframe from August 1, 2022, to May 31, 2028.
The motion is grounded in section 145(1) of the Constitution and Standing Order 131, which facilitate such government support. In addition to increasing the guarantee, FSC will be relieved from the typical government guarantee fee, providing significant financial relief to the corporation.
The government’s dedication to supporting the FSC highlights its acknowledgment of the sugar industry’s critical role in the Fijian economy. As the industry grapples with persistent challenges, this initiative aims to enable FSC to meet its financial obligations while working towards operational recovery.
Previous parliamentary discussions have revealed the financial burdens the FSC is facing, with Finance Minister Professor Biman Prasad indicating that the government currently holds $293 million in guaranteed debts, both domestically and internationally. This situation emphasizes the necessity for collaboration with the FSC to effectively manage fiscal risks.
Some opposition members have raised concerns over the long-term sustainability of such guarantees, particularly in light of significant issues within the industry, such as large areas of land once used for sugarcane cultivation now remaining unused. They have called for greater accountability from FSC’s management as well as the development of effective operational strategies to rejuvenate the sugar sector.
Despite the existing hurdles, the motion to enhance the government guarantee represents a proactive measure that could facilitate better funding for the FSC and steer the industry toward a more resilient future. This initiative not only acknowledges the sugar industry’s essential role in Fiji’s economic framework but also sets the stage for improvements in the operational efficiency and financial viability of the FSC. The support reflects a hopeful outlook for the future of the sugar sector in Fiji, aiming to revitalize this pivotal industry.