FIJI ECONOMY CONTRACTING!

"THE economy is likely to contract further as a result of the nurses' strike, says the University of the South Pacific's Dr Mahendra Reddy.

Dr Reddy, the Associate Professor of Economics, said the strike had affected the general morale of the working class and would affect spending.

"People, regardless of whether they are affected, will be concerned about the overall economic state of the country and thus will be cautious about spending," said Dr Reddy.

He said there was an overall concern about the interim Government's ability to govern.

"A strike by public servants is the last thing any government would want to have during its tenure," he said.

"All attention is focused now on the strike. Investors are concerned about any implications on instability arising from this strike and therefore, may hold on to any major projects for the time being."

Dr Reddy said these were not good aspects for an already struggling economy.
The Reserve Bank of Fiji last week said the economy was projected to contract by 3.1 per cent this year.

Dr Reddy said the interim Government must immediately meet the unions and establish a social compact in which a progressive restoration of the wage cut was mapped out.

"To date we have only considered across the board wage restoration," he said.
Dr Reddy said there was a need to look at a progressive and staggered wage restoration.

For example, in December low wage earners, those earning below $15,000 could have a five per cent restoration while the rest have a one per cent increase, he said.

Dr Reddy said the remaining four per cent could be subject to the state of the economy next year. Attempts to contact interim Finance Minister Mahendra Chaudhry and interim Minister for Public Service Poseci Bune were unsuccessful.

Permanent secretary in the Prime Minister's Office Parmesh Chand said Dr Reddy's concern about the interim Government's ability to govern was the view of an academic.

"And if academics were to get in touch with reality then they would not be teaching theory and concepts," said Mr Chand.

"So really it is easy for them to say that from an academic's view point."
Mr Chand said academics had been saying the public sector was too large and that the Government spent most of its money on public sector.

He said the pay cut was one of the measures taken as part of the interim government's reform to contain the cost of running public service in the face of a contracting economy. "FijiTimes online

Dr. Reddy seems to have an unexaggerated view of the state of our economy unlike Mr. Chaudary's statements that the economy is stable.

Right now, it seems to be very unstable due to the biggest negative factor, THE ILLEGAL TAKEOVER OF A DEMOCRATICALLY ELECTED GOVERNMENT.

It seems the Illegals want to continue to gloss over the dreadful state of our economy to hide their bungling but the truth will always prevail!

Nothing has turned out right since the Illegals took over. In fact things have worsened on their watch.

It maybe time now for them to close up shop, retire to the barracks and do what they are trained to do best, PROTECT the nation NOT DESTROY it! Mahendra Chaudary should go back to the FLP office and restrtaegise. Obviously, his best laid plans do not seem to be working as he thought.

Due to the Illegals bungling we have :

1. Down turn in the tourism sector and related services

2. Closure of Vatukoula Mine

3. Strike actions of unions due to unnecessary paycuts to civil servants and lowering of

retirement age

4. According to RBF, the economy will contract by 3.1% compared to their initial 2.5% prediction. A huge variance that is hitting the poor the hardest with the increase in cost of almost everything.

The Illegals must remove themselves or be removed.....by force if worse comes to worst.

Bring back DEMOCRACY. Let the people have their say. Let them decide who should rule them, not a bunch of failed politicians and miltary wannabes..........

DEMOCRACY NOW! POWER TO THE PEOPLE!