31 Jul 2006

Fiji business warns of financial crisis

1:23 pm on 31 July 2006

Business leaders in Fiji say the country is lurching towards a financial crisis and the government should slash the take-home pay of public servants.

The Chamber of Commerce has echoed calls from the Reserve Bank for the government to cut its operating costs to prevent any further interest rate rises.

The president of the chamber, Taito Waradi, says the national economy is in trouble and a pay cut would be the quickest way to revive it.


The operating cost of government is a big chunk of the budget so if you have to make an immediate impact, you'll need to look at areas that can make that impact. Because we cannot wait for the next three months to do something.

DUR 13'

Mr Waradi says the government needs to bring in measures to discourage import consumption and reduce national debt.

He says the worst case scenario would be a devaluation of the Fiji dollar.