Prime Minister Hon. Voreqe Bainimarama’s Response to the 2020-2021 National Budget

Mister Speaker,

I rise to deliver my response to the 2020-2021 National Budget.

Mr Speaker, the end of the coronavirus pandemic is no closer in sight and the fate of the world economy is no clearer. In the ten days since we announced this budget, another two and a half million COVID cases have been confirmed. In truth, that number is likely far higher, but global testing is still yet to match the pace of new infections.

But as shocking as the sheer number of new cases is, this pandemic’s most staggering statistic –– by far –– has been the astronomical sums governments have marshalled to stimulate their economies.

As we gather to debate this budget, every government on Earth is cranking out recession-halting levels of spending. We’re talking about trillions upon trillions of dollars, Mr Speaker, figures we’ve never seen before.

Why? Because the world’s foremost financial leaders all seem to get what some members opposite cannot fathom, that this could be the world’s worst-ever economic crisis. And this COVID-fuelled economic fallout will only end if governments step in to stop it.

If you’ve spent this pandemic locked in the Novotel and Holiday Inn I don’t expect you to comprehend that greater, global picture. You can’t take a view on this new era of economics when you can’t see further than your own party’s future, and your own rank and privilege.

But with regards to some supposed economists, I’m not sure what excuse they have for the pathetic quality of their commentary on this budget. Mr Speaker, let me be clear: We have no problem debating policy –– that’s the point of democracy. But what bothers me, Mr Speaker, is that these people aren’t interested in well-intended debate. They aren’t even interested in reality, much less real analysis.

These are people who –– disturbingly –– have made full-time careers out of rooting for Fiji to fail. That’s how they make their money. And this crisis has exposed there are no lengths to which they won’t go –– and there are no lies they won’t tell –– to keep themselves in business.

We all remember, when COVID arrived at our shores, these same critics claimed we had no plan, no ideas and no solutions for beating the virus. With over 100 days since our last case of COVID-19 among the public, you’d think we’d be owed an apology. But no, these people don’t make a living by making amends. Instead, they simply hope we forget their false prophecies and then they move on to the next round of doomsday predictions.

Now, they say we have no clue how to solve this economic crisis and they’re attacking the stimulus we’ve announced to fight it. It’s okay when other nations, like Australia –– who just announced its largest ever budget deficit since the Second World War –– do the same. But they blame Fiji for doing exactly what every other government knows must be done. Mr Speaker, don’t take my word for it, Fiji’s strategy of smart borrowing has been widely endorsed, including by the United Nations. Our multilateral partners see the prudency behind all of our budgets, Mr Speaker. These are institutions run by actual economists, with whole teams dedicated to reviewing our economy. And they trust Fiji, that’s why they’ve stood with us through this crisis.

Mr Speaker, the Opposition can shut their eyes to these global realties all they want, I really don’t care. I put my stock in the international economic experts over failed former professors. But no Fijian should be blind to the hardship our people are facing. Nobody’s ego should block their view of what is at stake here. We have an economy to save, by any means necessary. We have people to serve. We have jobs to sustain and new ones to create. And anyone with eyes can see that every dollar of the well-structured, carefully targeted two-billion-dollar stimulus package in this budget has been allocated to do exactly that.

First and foremost, Mr Speaker, this budget gives help where it’s needed most, granting $100 million in direct government unemployment assistance, not only to those whose jobs have been lost but to those who are working on reduced hours.

You’d think, Mr Speaker, that 100-million-dollar figure would be worthy of a front-page headline. Unfortunately, the Fiji Times prefers to parrot cherry-picked levels of debt servicing payments –– on debt that, they failed to mention, was mostly accrued prior to 2007. But that’s no surprise. I could literally announce we’ve found the cure to the coronavirus, and the Fiji Times would run a front-page story on what Biman had for breakfast.

Mr Speaker, aside from direct government assistance, the Water Authority of Fiji has extended their policy of ensuring impacted families won’t have their water cut off just because they cannot pay their bills. That policy will remain through March of next year.

In a 50/50 split with EFL, Government is directly paying for half of the first 100 units of energy used by low-income Fijian families every month.

We’re providing concessional loans to MSME enterprises, and micro entrepreneur loans to those out-of-work Fijians looking to repurpose unique skills.

The social security we’ve built over the years remains. Free education is funded. Social welfare payments are being paid. Subsidised transportation to school continues. Free textbooks are paid for.

But this budget doesn’t settle for keeping families afloat for the next few months, Mr Speaker, that’s not what any leader with vision will ever settle for. That is not what the Fijian people expect of us.

The tens of thousands of Fijians who have already lost jobs and working hours to this pandemic are Fijians who want to work, Mr Speaker, Fijians who need to work.

When your job is lost, you lose more than a pay check. You lose a sense of purpose. You lose a piece of who you are as a person; as a wife, as a husband, as a provider for your family. The countless Fijians I’ve met with need help now –– and they will get it. But these Fijians want more than just a handout, they want the dignity of working again. They want their businesses open again. They want to see their country come back from the brink.

Mr Speaker, we can’t make these hardworking people whole if we stick our head in the sand, hoard cash, do nothing, and wait out the years it may take for this crisis to blow over.

We need to work our way out of this crisis now, by bringing jobs back wherever and however we can.

We need to build our way out of this crisis now, by pushing forward with construction and empowering Fijians to build their own homes.

We need to innovate our way out of this crisis now, by getting businesses open again, and helping new businesses to begin.

Government is leading by example in keeping people fully employed. Cabinet Ministers and members of parliament have taken a 20% pay cut and Permanent Secretaries and the CEOs and Heads of Commissions and Independent Bodies have taken a 10% salary reduction –– but that’s where the cuts end. We won’t be slashing the salaries of the civil servants we need to help put this economy back on its feet and to support the people who have suffered the most, much to the disappointment of Hon. Prasad.

Mr Speaker, across the country, we have construction projects that are ready to begin. These are projects for which approvals have been sought and every box has been ticked, save for the ground-breaking.

Take for example, the new Nakasi Police Station. Should we not press forward with its construction and create 200 jobs that last two years, allowing those Fijians to earn a living? And when it’s all said and done, we’ve built a new police station so our children will not have to, we’ve created a source of employment for the new police officers we’re committed to hire, all while paying the salaries of construction workers the entire way.

Of course we should built it. And that is why we are also pressing ahead with the CWM Hospital Projects, the Lautoka Police Station, the Nadi Police Station, the Ba Court House, the Prime Minister’s Office Complex and other projects, the construction of which will employ over 1,600 Fijians. Mr Speaker, these aren’t rich people. These are ordinary, hard-working Fijians whose skills ought to be earning them a living.

We’ve also strengthened support to families looking to build or buy their first homes, spurring more jobs in construction and realising more of our people’s right to housing. These aren’t rich people either. Many are young people, Fijians who ought to be building and owning homes of their own.

Road by road, building by building, and house by house, every cent spent of this stimulus will help employ people, build confidence, and ripple throughout the entire economy, ultimately landing in our people’s pockets.

But government can’t go at it alone. We need the private sector with us. That’s why our stimulus package comes alongside the largest tax cut in Fijian history, and a range of new measures to cut through the red-tape of doing business in Fiji.

What some supposed economists fail to understand, Mr Speaker, is that Fijian businesses are made up of Fijians. When they do well, our people do well. And when we cut taxes on these businesses and make it easier and cheaper to do business, those savings help keep people employed, recoup investments made in our economy, and incentivise even more investments to be made. And Mr Speaker, when we lower the duty reductions on over 1,600 items. businesses can do more than create and sustain employment, consumers can see the discounts in the goods and services they offer. Those 1,600 items include food, like potatoes and sardines. They include basic hygiene products like toothbrushes. And they include clothing, hardware and knitting tools, and they include items essential to many businesses. So, everyday Fijians not only stand a better chance at being employed, their salaries will go further at the supermarkets.

Mr Speaker, with respect to foreign affairs, we’ve cut the operating costs of our foreign service through the closure of five missions that –– frankly –– have not been recouping government’s investment. None of these missions are disappearing altogether; their country accreditations will simply shift to nearby missions which will maintain Fiji’s friendships around the world, our development partners understand that. It’s a more streamlined strategy of diplomacy, one that many other countries follow, and one we know will earn Fijian taxpayers more reliable returns on our investments.

Mr Speaker, we promised cane growers a guaranteed price per tonne of 85 dollars for three full seasons. That promise will be delivered. The first three payments of the third season will be paid at $70 per tonne, but in the fourth and final wash-up payment, we’ll make up the full amount of $85 per tonne, as we always do. Mr Speaker, our growers know they can count on this government. In total, we’ve provided nearly $300 million in direct support to cane farmers over the past seven years. Cane growing is the only agricultural sector to which we guarantee a price per tonne, and that relief comes on top of the cane planting grant, the building of new cane access roads, the subsidisation of fertiliser and weedicide, the buying of new trucks, the assistance we grant new farmers, and our commitment to accelerating mechanization, will all which are fully funded this year.

Again, I’m not sure why some media keep parroting lies from failed politicians without even seeking comment from government. Luckily, our cane growers are well familiar with how our payment system functions –– even if some newspapers are not.

Mr Speaker, it’s clear that certain media don’t want the truth on cane growing, they don’t want the truth on how we’re responsibly managing our deficit, and they don’t want the truth on customs duties reduction or any of the other measures in this budget. We know that because they don’t ever bother asking government for comment. And on the rare days they do, they don’t press “print” until they get the final spin-job from the Opposition.

But the truth is, Mr Speaker, no matter who you are or where you are in Fiji, this budget brings relief you need and builds confidence in our economy, preparing us for a recovery like we’ve never seen.

Fijians know what it takes to mount a comeback. We know what it means to be down and out. We know what it feels like to have the odds stacked against us, and still manage to seize victory from the jaws of defeat.

Of course, there are the times we’ve watched our Flying Fijians overcome a double-digit deficit to pull-off a miracle first-place finish. But we haven’t only watched miraculous comebacks, Mr Speaker, we’ve each been part of them. I’m talking about how we –– as a nation –– rose to our feet in the aftermath of our hemisphere’s strongest-ever storm. I’m talking about how we –– as one people –– shut the door on decades of ethnic division to build a strong and united Fiji. These are the great comeback stories of Fijian history, Mr Speaker. And when we pass this budget we will begin another.

Mr Speaker, at the opening of this session of Parliament, the leader of the Opposition – if that’s still his title –– arrogantly labelled all of Fiji as a nation of “low morale”. He attacked ordinary voters, he attacked our disciplined forces, he even attacked our rugby players and His Excellency the President, demeaning the patriotism and undermining the positivity in the hearts of so many of our people.

As Hon Rabuka ranted that day, the novel coronavirus was just beginning to ravage Wuhan, China. In the coming months, it would spread around the entire world. In March, it arrived on the shores of Fiji –– presenting the greatest-ever test of our resilience and national morale.

Mr Speaker, the Fiji that Hon Rabuka manufactured in his mind was not the real Fiji; the real Fiji rallied together in the face of COVID-19. It was not a nation of “low morale” that stood united to confront that deadly challenge. No, Mr Speaker, the real Fiji is a nation of patriots –– proud patriots. Women and men who were prepared to endure the sleepless nights it took to keep our people safe. Fijians who sacrificed all they could to keep the virus at bay. And we accomplished that goal. We saved our people from catastrophe, and we did it together, without the help of anyone who doubted our determination to succeed.

Then, we reopened our economy. Now, we’re taking that recovery forward with maybe the boldest national budget in Fiji’s history. All while the Opposition have kept busy hacking away at each other for power, rueing false predictions and rooting for Fiji to fail.

Mr Speaker, let this serve as a lesson to everyone: You don’t build morale by breaking people down. You don’t build morale by wishing for the worst. You do it by building confidence. You do it by staying positive. You do it both by listening and by being decisive when the urgency is greatest. That is what my government did, that is what we will continue to do. And if you believe in this country, if you believe in our people, I urge you to stand with us. Be part of Fiji’s greatest-ever comeback, get behind this budget, get behind our game plan, and let’s get Fiji back to work.

This is a people’s budget, Mr Speaker. A budget for people who share our optimism and who believe we can comeback from this once-in-a-century crisis. And we’re grateful to every Fijian who shared their stories and solutions with us to help put this budget forward. Thank you to the teachers, the doctors, nurses, boat captains, and police officers. Thank you to the business owners, and thank you to the tourism workers and hotel operators. Thank you to the Fijians in rural pockets of this country and in our maritime regions. Thank you to the homebuilders and construction workers, thank you to garment factory employees, thank you to the fishermen and women, thank you to handicraft makers, cane growers, farmers, the cooks in our kitchens and the musicians, artists and artisans. Thank you to every parent and grandparent who has put their faith in our long-term vision –– a vision they can trust serves their children and grandchildren most of all.

I thank the Honourable Attorney-General and Minister for Economy and his team for putting forward the budget Fiji needs in this moment of challenge. And I thank our people, not only for helping get us this far, but for your belief in our ability to take us forward. Together, let’s lead the next, great comeback of Fijian history.

Thank you, Mr Speaker.