axiom in solomon islands, page-4

PM offers 5-year tax holiday for investors.

Saturday, 23 October 2010

PRIME Minister Danny Philip yesterday used the second Australia-Solomon Islands' Business Forum in Brisbane to market the National Coalition for Reform and Advancement (NCRA) Government's comprehensive policy reforms amidst upbeat assessment of the economy.

He spoke of the mining, tourism and fisheries as industries with potential investment opportunities.

In a move designed to realise setting up proposed growth centres in the rural areas, the Prime Minister announced a five-year tax holiday is under consideration for companies willing to invest there. "To encourage foreign investment in rural areas of Solomon Islands, the Government is considering granting a five-year tax holiday to companies wishing to do so," Mr Philip said. "A lesser time scale in terms of tax holiday will apply to those who wish to invest in urban centres," Prime Minister Philip told the gathering.

Australia was represented at the meeting by its Parliamentary Secretary for Trade, Justine Elliot. The Prime Minister emphasised the importance of the business Forum, saying it provides a window of opportunity for cooperation between governments and the private sector.

"The Forum provides a unique opportunity to hear about what investment opportunities there are in Solomon Islands and, indeed, any difficulties that we can work through. And there are investment opportunities," he said.

"On the other side of the spectrum, I consider this Forum important because it provides the Solomon Islands' Government a window of opportunity to outline the trade and investment policies of the Government," Mr Philip said.
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On mining, he reiterated earlier statements that landowners should feel free to work with investors of their choosing rather than be coerced by a third party into an arrangement which might not be in the resource owners' best interest.
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"The message I wish to leave with you today is that there are boundless investment opportunities in the mining sector in Solomon Islands," he told business representatives attending the one-day Forum, the second since its inaugural meeting last year.

On fisheries, he told the gathering that Solomon Islands boasts one of the richest fishing grounds in the South Pacific. Our shores and seas are spawning grounds for the demanding species in Asian and European fish markets.
"Onshore fishing has abundant potential for commercial purposes," the Prime Minister said."All I can say is that there are opportunities in the fishery sector for genuine investors."

The deputy Governor of the Central Bank, Gane Simbe, and Honiara-based representatives of the World Bank, all gave an upbeat assessment of the economy. Mr Simbe told the gathering that the Solomon Islands economy performed better this year, projecting an even better growth next year. He said the banks assessment is that Solomon Islands would record 4% growth this year.

"Our assessment is that next year the economy will grow by between 7 per cent to 9 per cent," he said. He also told the gathering that commercial banks have "surplus liquidity" or money for lending, but businesses were not borrowing largely because they wanted to see the outcome of this years national election.

World Bank representatives based in Honiara said that it too was confident the Solomon Islands' economy would grow, given the stable security setting in the country. The World Bank sees future growth in four main sectors including, agriculture, labor mobility and natural resources.

http://www.solomonstarnews.com/news/national/8634-pm-offers-5-year-tax-holiday-for-investors
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the full article at

http://www.islandsbusiness.com/islands_business/index_dynamic/containerNameToReplace=MiddleMiddle/focusModuleID=19393/overideSkinName=issueArticle-full.tpl

POLITICS: NEW PM DANNY PHILIP PROMISES THE BACON
But will he get the support to deliver?

October 17, 2010

Solomon Islands new Prime Minister, Danny Philip, was elected on August 25.
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There are two major areas the new government has identified as centerpiece for the comprehensive reforms it envisages in its yet-to-be-released policy statement. Both are to do with reforms-comprehensive reforms-as opposed to the common piecemeal approach.
Resource owners would be the big winner in changes to be undertaken under Fundamental Reforms. This, he said, calls for changes to the constitution, which rightly or wrongly, extends ownership of resources to the state.

The devastation of the ethnic uprising in recent years was the result of resource owners being left out by the system to feel as if they were merely spectators.
The Preamble of the Constitution, for example, says that ownership of resources is vested in resource owners and the state, "While this was cleverly done by those who put our constitution together, it misrepresents the fundamental tenets of our land tenure system in regards to ownership."
"The result has been devastating as we saw in the 1998-2003 ethnic tension. Today, the perception persists. Land or resource owners are merely spectators with no say in what goes on in their land, for example. This is particularly true when it comes down to sharing of the benefits deriving from their resources."
"It seems the resource owners (our people) are forever subjected to a disadvantageous end of the benefits sharing spectrum. Resource owners feel the system has ignored them, relegating them to the periphery."
"They are right to feel the way they do. To them, the interchange between ownership and security no longer exists."
"My government believes that as long as the status quo remains, the feeling of resentment [by our people] over resource ownership and development will continue. [We are] fully aware of these critical issues and will address them in our Fundamental Reforms," he said.

Customary land, natural forests, minerals resources, rivers, lakes, lagoon and, so on, will be targeted with the objective of returning ownership to the rightful owners.
He promised the Solomon Islands Chamber of Commerce and Industry that a number of legislative measures would be in place to ensure the rights of resource owners are recognised and upheld.
Philip blamed government red tape for contributing to what he described as "protracted delays in moving major investment projects forward."
"The objective of the exercise [Fundamental Reform] is to put resource owners in the drivers seat. The government will continue to merely play the facilitating and regulatory functions," the Prime Minister said.
(continued)