Kiribati business survey shows land issues impede business

Transcript

Moves are underway in Kiribati to ease the way for companies to do business.

A survey by the Kiribati Chamber of Commerce has thrown up many challenges faced by companies in Kiribati and the chamber plans to lobby the government to improve the business environment.

Annell Husband reports.

Pressure on land is central to many of the challenges facing Kiribati's most populated areas - from erosion caused by climate change to water and sanitation issues related to overcrowding. It's no surprise, then, that many of the nearly 400 businesses interviewed in the Kiribati Business Survey complained of difficulty in finding premises. The chamber's secretary says the situation is especially bad on the main atoll, Tarawa - home to about half of the population of 100,000. Katarina Tosinga says it can take a long time to get a lease for land, much of which is owned by government.

KATARINA TOSINGA: And also quite problematic with the landowners because there's a system of having to consult landowners, but also it is government lease. When you go to consult landowners they know that they can charge you very high fees - there's no standardised sort of practice for that. And, well, actually,  Kiribati is quite small of land, so there's quite limited land.

Mrs Tosinga says the survey revealed other obstacles to starting a business including the shortage of skilled workers and high costs such as electricity and freight. There are also issues of location and favouritism when it comes to hooking up to services.

KATARINA TOSINGA: Also perhaps they're given problems of the location of where the business may be - that can also contribute to that. You may be located further away so it's taking a long time. And probably one of the problems encountered when you have to do it quickly [is] you may be pushed back. You know, 'We'll come to you, we'll get to you when we've finished with these ones'.

Mrs Tosinga says such concerns are included in the cabinet paper the Chamber of Commerce is preparing with the commerce ministry. The International Labour Organisation funded the survey and the director of its Pacific office, David Lamotte, says similar studies in other countries have provided immediate tangible benefits to both the government and the private sector.

DAVID LAMOTTE: The other thing that gave benefit to the chamber is that they now have feedback from their members on the types of services they should provide. And it's an interesting read. They now know more strategically what are the kinds of services they want from their members.

David Lamotte says Fiji is conducting a business survey and Vanuatu has just completed one.