Govt should look at other options than to increase guarantee for Fiji Airways – Ratu Naiqama

Opposition Leader, Ratu Naiqama Lalabalavu says the Government should consider other practical options than to increase the Government guarantee for Fiji Airways.

Ratu Naiqama says there are signals that Fiji will continue to have short term supply chain problems and most importantly the price of crude oil will continue to rise which will put a lot of pressure on production resulting in price increases that will lead to the increase in inflation rate.

He says an additional $106.4 million to the existing open guarantee or $455 million total contingency liability for Government is surely unprecedented in Fiji’s history.

Ratu Naiqama further says the major risk associated with our contingency liability is with Fiji Airways and Fiji Development Bank.

He says despite the risk, the Government continues to facilitate additional guarantees for these two organisations.

The Opposition Leader adds with direct support of over $250 million from Australia, New Zealand and the European Union, the Government should at least provide fiscal space to cushion against the impact of the pandemic through targeted investment and instead it has decided to give out the money to drive consumption.