Additional Government Guarantee for the Pacific Fishing Company Limited, commonly known as PAFCO.

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Salutation

  • Honorable Speaker Sir,
  • Honorable Ministers and Assistant Ministers,
  • Honorable Leader of Opposition,
  • Honorable Members of Parliament,
  • Ladies & Gentlemen

Introduction

  1. I rise to support the Motion before this Honourable House on the additional Government Guarantee for the Pacific Fishing Company Limited, commonly known as PAFCO.
  1. The Minister for Finance has outlined the financial, legal and technical basis for the guarantee. I will therefore focus on its wider national significance, the future direction of PAFCO and the expectations that must accompany Government support.

 

PAFCO’S NATIONAL AND COMMUNITY SIGNIFICANCE

  1. PAFCO is more than a State-owned enterprise. For decades, it has been an important part of the economic and social life of Levuka, Ovalau and the wider Lomaiviti Province. It provides employment and supports families, suppliers, transport operators, service providers and small businesses.
  1. Its contribution extends beyond the factory gates. When PAFCO performs well, wages and business income circulate through the local economy. A significant contraction would affect not only the company and its employees, but also the wider community.
  2. Government recognises this responsibility. However, the social importance of PAFCO cannot justify ongoing commercial underperformance. The best protection for its workers and communities is a well-governed, productive and financially sustainable company.

A BUSINESS AT A TURNING POINT

  1. The departure of Bumble Bee has fundamentally changed PAFCO’s operating environment. The company can no longer rely on the same commercial arrangements for market access and raw-material supply. This is a significant challenge, but it is also an opportunity to modernise the business and build greater independence.
  1. Government’s objective is not to replace one dominant customer with another. PAFCO must develop a broader customer base, diversify its markets and strengthen its control over supply, processing, marketing and distribution.
  1. This will reduce its exposure to any single commercial partner and make the company more resilient.

NEW MARKETS AND COMMERCIAL OPPORTUNITIES

  1. PAFCO has begun developing new commercial relationships, including its relationship with Frinsa in Spain and opportunities to supply the European Union market.
  1. The 2027 forecasts indicate potential sales of approximately $28 million in canned products, $6.2 million in Skipjack loins and $10 million in Albacore loins.
  1. PAFCO is also working to strengthen its relationship with Pacific Islands Tuna in the United States. The proposed resumption of Albacore processing for this market could utilise up to 800 tonnes annually, with an estimated value of $6.8 million to $7 million, subject to market demand.
  1. These opportunities are encouraging, but forecasts are not guaranteed revenue. Their achievement will depend on reliable fish supply, international prices, exchange rates, processing capacity, product quality and market conditions.
  1. The Board and Management must convert these opportunities into firm contracts, production, exports and sustainable revenue.

SECURING SUSTAINABLE RAW MATERIALS

  1. A processing operation cannot succeed without a reliable supply of fish. PAFCO has therefore had to take greater responsibility for securing its own raw materials.
  1. Its agreement with Hotrock Pte Limited, the supply arrangements being explored with Frinsa’s purchasing team and negotiations with a local Albacore supplier are important steps towards broadening its supply base.
  1. These arrangements must be commercially sound and consistent with Fiji’s fisheries laws, licensing requirements and conservation obligations. Supply must be traceable and meet international food-safety and quality standards.
  1. PAFCO should also maximise opportunities for Fiji-flagged vessels, local fishers, domestic suppliers and supporting businesses, where commercially and operationally viable. The long-term value of our fisheries depends on managing the resource responsibly, not simply increasing the volume processed.

BUILDING A FIJIAN FISHERIES VALUE CHAIN

  1. Fiji is a maritime nation, and our fisheries resources are an important source of food, employment, exports and economic opportunity. We must ensure that a greater share of the value generated from these resources is retained in Fiji.
  1. Our ambition must extend beyond supplying raw fish. Where commercially viable, Fiji should increase local processing, develop higher-value products, strengthen packaging and branding, improve logistics and distribution, and build the skills needed to compete in international markets.
  1. PAFCO can play a central role in this effort. Its future should be connected to a stronger national fisheries value chain—from sustainable resource access and local supply through to processing, product development, exports and international distribution.
  1. This will support economic diversification, create opportunities for local businesses and strengthen foreign-exchange earnings.

A RESPONSIBLE APPROACH TO GOVERNMENT SUPPORT

  1. As Minister responsible for Public Enterprises, I emphasise that State ownership carries a duty to protect assets that ultimately belong to the people of Fiji. PAFCO must be governed professionally, with clear commercial objectives, capable leadership, sound financial management, transparent reporting and accountability for results.
  1. The guarantee should be treated as a time-bound measure to support a defined commercial transition, not as a substitute for sound management or a permanent source of finance. The associated fiscal exposure must be monitored carefully.
  1. Government expects the guarantee to be supported by clear conditions, regular financial and operational reporting, risk controls and measurable milestones. The Board and Management must demonstrate how the support will stabilise the company, improve its performance and reduce its dependence on further Government assistance.
  1. Any future request for additional support must be considered on its merits and against evidence of performance, the company’s financial position and the public interest.
  2. Government must be able to assess not only what support has been provided, but what it has delivered. The objective must be a credible pathway towards commercial sustainability and a reduced need for Government guarantees.

CLEAR EXPECTATIONS AND ACCOUNTABILITY

  1. Government expects PAFCO to diversify its customers and markets; secure reliable and competitive raw-material supplies; improve productivity and capacity utilisation; control costs; strengthen financial management; and develop higher-value products and export opportunities.
  1. These expectations must be translated into a practical performance framework. The Board should report regularly on production, capacity utilisation, export volumes and revenue, operating costs, financial performance, customer concentration, raw-material security and progress against the company’s restructuring plan.
  1. Government should also be able to assess the wider public value of its support. This includes jobs created and retained, workforce training, occupational health and safety, local procurement, opportunities for local fishers and businesses, value added in Fiji and compliance with fisheries and environmental requirements. Meaningful engagement with workers and the communities of Ovalau and Lomaiviti must remain part of the company’s approach.
  1. These measures will allow Parliament and the people of Fiji to see whether the guarantee is delivering lasting economic and social benefits.
  1. The Ministry of Public Enterprises will maintain appropriate oversight, while respecting the responsibility of the Board and Management to run the company. The Board must provide strategic direction; Management must execute; and both must be accountable for results. Government cannot manage the company on their behalf.

PROTECTING LIVELIHOODS THROUGH A STRONGER BUSINESS

  1. Behind this Motion are workers, families and communities whose livelihoods are connected to PAFCO. Their interests matter.
  1. But lasting protection does not come from maintaining an unsustainable business through repeated Government support. It comes from building a company that can compete, grow and provide secure employment because it is productive and commercially successful.
  1. The people of Ovalau and Lomaiviti deserve an enterprise with a future—one that supports local businesses, develops skills, attracts investment and provides opportunities for the next generation.

CONCLUSION

  1. Mr Speaker Sir, PAFCO is at a defining point in its history. The departure of a long-standing commercial partner has changed its operating environment, but it does not have to determine the company’s future. PAFCO has opportunities to develop new markets, strengthen supply arrangements and take greater responsibility for its commercial direction.
  1. Government supports this transition, but that support must lead to stronger governance, higher productivity, diversified markets, sustainable raw-material supply, greater value addition and improved export performance. Above all, it must lead to a commercially sustainable PAFCO that contributes to Fiji’s economy and supports the people of Ovalau and Lomaiviti.
  1. Our objective is not simply to preserve the PAFCO of yesterday. It is to build a more resilient and competitive company that retains greater value in Fiji, creates sustainable employment and makes responsible use of our fisheries resources.
  1. The guarantee provides an opportunity. The responsibility now rests with the Board and Management to deliver the results expected of them. Government will maintain appropriate oversight and accountability for the use of public support.
  1. With those remarks, Mr Speaker Sir, I support the Motion.
  1. Vinaka vakalevu, Mr Speaker Sir.
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