Hundreds of jobs, local fishing businesses and the wider economy of Levuka are expected to benefit from an additional $20 million Government guarantee for the Pacific Fishing Company Limited (PAFCO), which will support borrowing to fund factory upgrades, improve production capacity, secure reliable tuna supplies and help the company access new export markets.
Parliament has unanimously approved the additional guarantee for PAFCO, allowing the company to borrow from financial institutions without the guarantee being restricted to a particular bank or lender.
The guarantee will be valid for a period of five years, from 1st November 2026 to 30th November 2031, and PAFCO will be exempted from paying a guarantee fee.
This means the Government will back PAFCO's borrowing, and if the company is unable to repay the loan, the Government will be responsible for settling the outstanding amount.
The guarantee will remain in place until the borrowed money is fully repaid, even if the repayment extends beyond the five-year period.
While moving the motion, Minister for Finance Esrom Immanuel says PAFCO is a 99.6 percent Government-owned public enterprise established in 1963, and employs around 870 to 1,000 workers, including permanent, casual and indirect workers, with women making up more than 60 percent of its workforce.
Immanuel says following the departure of Bumble Bee, PAFCO's major tuna buyer and long-standing commercial partner, in July this year, the company has had to move away from a business model heavily dependent on one customer and develop new local and overseas markets.
He says PAFCO has secured a new partnership with FIRSA Group, a Spanish company founded in 1961 and one of Europe's largest canned tuna and seafood manufacturers.
He adds that the partnership is expected to help PAFCO access international markets and strengthen its export opportunities.
Immanuel says the company has identified three critical priorities, which are securing customers in local and export markets, securing sustainable and reliable raw material supplies, particularly tuna, and financing its transition through adequate working capital and capital investments.
He says the additional $20 million will fund capital projects designed to modernise and upgrade the plant and processing equipment, improve operational efficiency, increase production capacity and strengthen compliance with international food safety and quality standards.
He says without Government support, PAFCO cannot fund the capital expenses needed to upgrade its plant and equipment.
He says the additional guarantee, together with the existing Government guarantee, will bring the total Government guarantee ceiling for PAFCO to approximately $31.3 million.
Opposition MP Premila Kumar says the Opposition supports the motion because the livelihoods of hundreds of Fijian families, particularly in Levuka, Ovalau and the wider Lomaiviti group, are at stake.
However, Kumar says their support should not be mistaken for confidence in the management of the company.
She says when PAFCO struggles, the impact goes beyond the factory gates, affecting shops, market vendors, transport operators, suppliers and the wider economy of Ovalau.
Kumar questions whether previous support delivered the results promised and says Parliament needs to know what went wrong and what will be done differently this time.
She also raises concerns that PAFCO's last annual report submitted to Parliament was for 2019, with six years of reports still outstanding.
She is calling on the responsible Minister to provide a progress update to Parliament at least every six months.
Kumar questioned the handling of the public enterprise portfolio, saying it has been moved between different ministers, including the Prime Minister, the Minister for Multi-Ethnic Affairs and the Minister for Industries and Commerce.
She says public enterprises are supposed to generate money for the country, but if they are not properly looked after, Government's liabilities will continue increasing as it keeps guaranteeing loans and providing financial assistance without getting returns.
Kumar says public enterprises need to be looked after very well, as the Government must ensure there is a return on the money being provided.
Opposition MP Parveen Bala also supports the guarantee but says Parliament is owed the truth about how PAFCO reached its current situation.
Bala questions when the Government first knew Bumble Bee intended to leave and seeks details of the new Spanish partner, including the terms, volumes, prices and duration of the agreement.
He says a clear transition and business plan must explain how workers will be protected while the factory is rebuilt, retrained and restarted.
Bala says the Opposition's support is based on the Government providing details of the new agreement, regular six-monthly reports to Parliament and assistance for workers who have been sent home.
Minister for Lands and Mineral Resources, Filimoni Vosarogo also supports the guarantee, saying supporting PAFCO will mean greater economic participation, more jobs for Fijians, stronger business links, enhanced export earnings and increased opportunities in the fisheries industry.
Vosarogo says Government support must be matched by accountability and performance, with PAFCO's board, management and workforce expected to strengthen governance, improve operational efficiency and increase productivity.
Recalling his childhood in Levuka, he says he hopes the Government's support will help the town once again become a prominent place to live, providing employment and opportunities for the people of Lomaiviti.
Minister for Fisheries and Forestry Alitia Bainivalu also supports the guarantee, saying the Government is working to secure sustainable fish supplies through dedicated fishing licences and negotiations with regional and international partners.
Bainivalu says PAFCO's new partnership with FIRSA Group will serve as a bridge to premium international markets, while the Ministry works to ensure a continuous supply of raw materials to keep the factory operating.
She says combining raw material security with access to European markets will help maximise national export earnings and bring long-term financial stability to Fiji's maritime economy.
Bainivalu says the Government guarantee will help PAFCO modernise and expand its operations, while protecting hundreds of jobs and supporting local fishers, cooperatives and small businesses across Lomaiviti.
Meanwhile, Deputy Prime Minister Manoa Kamikamica clarified that Bumble Bee's departure was linked to tariffs introduced by US President Donald Trump, which led the company to move its operations to Mexico.
Kamikamica says the Government's recognition of the Interim Economic Partnership Agreement with the European Union allowed Fiji to source tuna from other countries and supply it duty-free to the EU, and this is what helped PAFCO secure the new Spanish market.
He says some of PAFCO's canning equipment is ageing and is more deserving of a place in a museum than being used for production.
He says the additional Government guarantee will help modernise the factory, improve production capacity and efficiency, and allow PAFCO to meet increased demand locally and internationally.
In his response, Immanuel says this is a whole-of-Government approach to ensure PAFCO survives, consolidates and grows, as well as ensuring the economy of Levuka and Ovalau survives, consolidates and grows.
Immanuel says several ministries will assist with duty exemptions, tax matters, fish supply, licensing, infrastructure, port access and international trade arrangements.
Responding to concerns about PAFCO's outstanding reports, he says the company's accounts are normally consolidated with those of other public enterprises.
He says the accounts have been completed up to 2024, while the annual reports are up to 2023.
He adds that the board and management will update past reports and provide regular updates to the Ministry of Public Enterprises and the Ministry of Finance to ensure progress is measured against the company's projections.
