Fiji water bottlers cease product sales

Bloggers, Vore’s ‘Robin Hood’ has been dipping too much from the same source, that these sources are now fighting back in order to survive. This latest move by the Fiji Water Bottlers Industry goes to show just how fragil is the state of our economy!

Chodo’s asking for detailed submissions by this Thursday and then be able to condense them all and have a Cabinet Paper ready by next Thursday is simply ludicrous. He maybe smart, but not brilliant to be able to make a proper and informed Report to Cabinet.

SV wonders just how many in Cabinet (Eveli x 2) would be able to understand his Report. ‘Robin Hood’s’ reputation is already crumbling around him and his claim of being a financial genius is being exposed as a farce for all to see.

07 JUL 2008

All Fiji-based water bottling firms, particularly publicly-listed companies, have ceased sales of the commodity to retailers and wholesalers until the excise duty issue is resolved with government authorities. Industry spokesman Jai Dayal, the director of Dayals (Fiji) Artesian Waters Limited – bottlers of Island Chill, says submissions have been made to the interim Government to support them rather than holding them back.All ten players in Fiji’s bottled water industry will make written submissions to the interim Minister for Public Utilities (Water & Energy) Mahendra Chaudhry to express major issues they now face with the increased tax on bottled water exports. Dayal confirmed after their meeting with Chaudhry in Suva this morning that all submissions are to be made by Thursday this week.

Local bottlers of artesian water last week decided to immediately cease production in retaliation to the increased duty of 20 cents per litre duty imposed on bottled water exports and those for domestic consumption as well. They collectively agreed that this would be their stand until what they described as an “extraordinary attack” against the bottled water industry was resolved.

“We’re now been told to make individual submissions to the minister (Chaudhry) so he can consider our case,” Dayal told Fijilive. “We have to convince him that the increased duty is too costly for us and we have to get this done by Thursday so he can table it in Cabinet’s next meeting,” he said. “We have to convince him that the 20 cents per litre is too costly, unprecedented and unaffordable.”

Fiji Islands Revenue and Customers Authority (FIRCA) chief executive officer Jitoko Tikolevu said Chaudhry reietarted his submission to Cabinet saying mineral water was a scarce resource and that the industry must give back a fair share to the resource owners and Government.

He added imposing excise duty and export duty were just examples of ways this could be achieved. “Given the urgency to resolve the matter, Minister (Chaudhry) has asked the industry to come up with detail submissions for his consideration and he will then make recommendations to the Cabinet at its 15 July 2008 meeting,” Tikolevu said.

Dayal said for his company alone, the 20 cents per litre imposed on bottled water exports meant an extra 30 per cent per litre on the company’s operating expenditure. “In some cases, our operating costs go up as far as 45 per cent and that is substantial given that our margin is fairly small,” he said.

These ten bottlers met Chaudhry today: Warwick Pleass of Pleass Beverage in Walu Bay, Suva; David Roth of Fiji Water; Anuj Patel of Flour Mills of Fiji’s VTY; Steve Johnson of Mr Pure; Jai Dayal of Island Chill; Mohammed Altaf of Aqua Pacific; Mohammed Nafiz of Diamond Aqua; Jilyin Wong of Tappoos Beverage; Sam Ahmed of Fresh Spring Limited; and Ritesh Naidu of Mineral Waters of Fiji.



24 Responses to “Fiji water bottlers cease product sales”

  1. Groggymaster Says:

    I agree with the principle of charging a royalty and an excise tax for access to mineral resources by businesses, on some basis that is economic.
    The arbitrary imposition of excise tax and export tax of 10c per L and 20c per L does appear high. Other than Fiji Water which has an established high-end market, other bottlers wil struggle to export their products.
    When Fiji needs to bolster its export earnings and foreign exchange reserves, Chodo gleefully throughs the spanner in the works.
    This won’t be his last asinine dictatorial arbitrary decision that is ruining Fiji’s economy.
    Who is running the show ? Vore or Chodo.

  2. Jese Waqalekaleka Says:

    Well GM, the question is not how much can you tax, but whether the climate allows for the taxation?

    All things being equal, it may not matter, but these illegal pigs have brought it upon themselves, unfortunately the rest of Fiji has to suffer!

  3. Jese Waqalekaleka Says:

    BTW, I don’t think the Eveli’s will have an inkling of Chodo’s Report anyway?

  4. Jese Waqalekaleka Says:

    I meant, the Eveli’s will have no inkiling of Chodo’s Report because they are both blockheads!

  5. Mark Manning Says:

    The IG is trying to take the simple road rather than being creative . Shows the level of skills within the Military !

  6. Mark Manning Says:

    By the way , if anyone suspects that e-mails etc. are being illegally intercepted within Australia , then please notify the Australian authorities . ASIO would be very interested given the potential for terrorism from Fiji now . It would definitely come under the threat to national security umbrella which ASIO is responsible for I’m sure .

  7. breadtomatoe Says:

    This Dayal chap was a strong snake supporter and got fiji water in toruble – now he is getting his own medicine form the snake

  8. Linus Says:

    While I agree with you all about the horrible snake & his tricks!!1 I wonder if the bottled water cos. ALL owned by Kaidia or Vulagi as far as I know; Are they paying a fair price to the ITaukei for use of resources and land??
    While the water they off draw maybe renewable over time, won’t it affect our supplies of Fresh Water for the rest of Fiji??

  9. Jean d’Ark Says:

    Frank may be dumb, but I suspect that even he is now able to see that the Snake has been nothing but a liability to the IG of late.

    The only thing he bring to the party is the support of the Indian people – but how long can that last if he keeps botching everything he touches like the Sugar industry and FDB and Government revenues and the Bus Strike and the Water debacle etc.?

    Rabuka’s SVT Cabinet bungled most of the things they did for five straight years of Government! So on that scale, Chodo is now approaching two straight years of clueless sabotage!

    And it’s amazing how similar his tunnel-visioned, “my mandate” arrogance has now become to the way he was acting before Speight kicked him out in 2000!

  10. Mark Manning Says:

    Ten Green Bottles

    Ten green bottles sitting on a wall
    If one green bottle should accidentally fall,
    There will be nine green bottles hanging on the wall

    Nine green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be eight green bottles hanging on the wall

    Eight green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be seven green bottles hanging on the wall

    Seven green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be six green bottles hanging on the wall

    Six green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be five green bottles hanging on the wall

    Five green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be four green bottles hanging on the wall

    Four green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be three green bottles hanging on the wall

    Three green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be two green bottles hanging on the wall

    Two green bottles sitting on a wall
    If one green bottle should accidentally fall
    There will be one green bottle sitting on the wall

    One green bottle sitting on a wall
    If one green bottle should accidentally fall
    There will be no green bottles sitting on the wall
    There are no green bottles sitting on the wall

  11. Mark Manning Says:

  12. Peace Pipe Says:

    Strange that the snake is all of a sudden concerned about the resource owner saying they have to have a fair share of the cake. Can he carry the same message into the land tenacy and qoliqoli resource owners.

    If he still carries on with the water tax would the resource woners see any part of it or is it just a lie and deception to justify his money grab.

    It is appearing that the coffers is drying up since his plans are not materialising and money is not forthcoming as anticipated. So the snake spread his tentacles into any nook and cranny to find money. And its not gonna get any better since desperation will drive the snake into doing things that are irrational and counter productive even at the cost of jobs like the water saga where jobs were lost due to his imposition of the water tax.

  13. Moremoni Says:

    U guys shud check out this blogsite has interesting news…

  14. Corruption Fighter Says:

    @ Jean d’Ark. Chaudhry won’t allow the Sugar Cane Growers Council to hold elections – now that tells you something. There is no question of an electoral system, so why put the elections off until 2010.

    Chaudhry has some idea that he can punish the water bottlers because they defy him but do sweetheart deals for other investors. What he doesn’t realize is that there will be NO serious investors if this is the way a Government acts. Investment in Fiji will be left to crooks and conmen.

  15. LUVfiji Says:

    @Moremoni – obviously u havent noticed that the site is on SV’s blogroll !! We have been there and back!

  16. natewaprince Says:

    Instead of looking into the bus owners plight,the regime is investigating if they have broken any conditions of their license.

    And instead of talking with the water bottlers,they are also trying to screw them for the stand they are taking.

    What a joke!!!!!!!!!!!!!!!!!!!!!!!

  17. Budhau Says:

    Come on guys – why can’t you do the math. The Fiji water costs about US$4.00/case and that includes the shipping to the US. In the US they sell for about US$50.00/case.
    The difference may not be all profit – but whatever money they make – none of that benefits Fiji. How about they bring that money to Fiji, pay taxes on it and then, being the investor friendly country that we are, we allow this company to repatriate that money back to its parent company.

    With my form four education – this economic crap is beyond me, but they said something about the Fiji Water if shut down for a week – at US$4.00/case comes out to be about $3 million per week, about US$150 million per year. What if we were to get the US$50.00/case – that sounds more like US$1.5 billion/ year.
    Why isn’t someone trying to tax the $1.5 billion.

    What Chaudary is proposing is peanuts for these guys – and BTW they will just pass the additional US 12 cents to the consumer.

    The guy who stated the business, probably recouped his investment in a few years – and then that sale of the company for US$50 million – and Fiji does not have capital gains tax.

    And our Fiji government had given these guys a tax holiday.

    Could it be that Chaudary is investing in a new water bottling plant in Haryana (pure Ganges water)- of course with all the tax holidays and all that.

  18. natewaprince Says:

    Close the bottling plants,stop the buses,berth the fishing boats,close the hotels,civil servants on strike.Cripple this regime and bleed whatever funds are left in the national kitty.

    Lets hear the coolie minister admit that the illegal regime is bankrupt.

  19. natewaprince Says:

    Hmmmmm… the windows plse someone,quickly dammit !!!!!!!!!!!!

  20. Budhau Says:

    With my form four education – this economic thingie is confusing.
    So Fiji Water’s cost for a case is US$4.00 that includes shipping – They sell this stuff in the US for $50.00. I understand that all $46.00 is not profit but a large part of that is.

    Someone said that if Fiji Water shuts down for a week there is a loss of $3 million (@ $4.00 a case) – therefore, in one year the revenue as far as Fiji is concerned is $150 million @ $4.00/case.

    How about we tell Fiji Water that they get all the money back to Fiji, that $50.00/case revenue, that would be about $1.5 billion a year, pay taxes on it and then, since they are foreign investors, we allow them to repatriate the money back to their parent company.

    The dude who started the company probably recovered his investments in the first few years, than sold the company for US$50 million – BTW, since Fiji does not have any capital gains tax, did Fiji get any of that $50 million.

    And the government of Fiji gave these guys some kinda tax holiday.

    (BTW – someone should check to see if Chaudary did not invest his $2 million in some watter bottling plant in Haryana – because why else would he be wanting a piece of the action from these water bottling companies. )

  21. groggy Says:

    At the end of the day the Government needs some money. From what i hear that Fiji Water is only a few company that ploughs alot of money back in to the community for their enhancement of their livelyhood.

    All this to give back to resource owners is all crap. Why doesn’t choodoo advise the people of Fiji of the 20c/litre how much goes to the resource owner. Well if you see the land acts anything below a certain feet belongs to the landowner after that it belongs to Government. SO all the extraction is been done below the landowner or resource owners entitle as per the current Acts.

    SDL had tried to fix these anamoly and these also goes with the sea resources. Rose bud how you make your money is one thing what goes back to the resource owner is another thing. What did the cane farmers or FSC give back to the resource owner peanuts for the million they made. Yes extracting water and tealing your land is different in nature but they both reduce the econmic value of that land by its over use.

    These is just about payback and finding ways to fill the cofferes of Government. He has to do this to make sure he is meeting his KPI one way or another. He doesn’t give 2 hoots about anyone else it how good he looks and how he feels his pocket.

    I wonder what happened to the Pesidents Hummer that he was going to buy from Carpenters.

  22. Wailei Says:

    I think Fiji Water.. are giving back to the people.. check the website above. the employ over 300 people there…

  23. Puf-Military Says:

    SV, answered your own question in your original post. MPC isn’t smart enough to solve the problems he created, despite his claims to a “financial genius”. Simply because he has no formal training or education (no qualification) in the area of finance, commerce or anything relevant. Which is why he has all sorts of holes in his theories.

    Then you have infants like rosebud with his self admitted form 4 education trying to enlighten us with his cosmetic comments. Thanks, u must not have got the memo. The country’s in a deep hole from the mess the high and mighty IG have created.

    People are already struggling with the high cost of living, now more are bereft of their employment. Fiji Water alone employs 300 people, breadwinners for their respective families.

    If you slay the golden goose, no more eggs. Result: in the long term everyone is hungry

  24. FijiGirl Says:

    Chodo actually thinks we believe he gives a sh*t about the environment!

    That snake would sell the soul of his own grandmother if he thought there was profit to be gained (for him).

    He is desperate for money to keep this illegal junta in clover.

    Why doesn’t he tax alcolhol? Especially when FWCC has proven the social costs for domestic violence which, mostly, is fueled by alcohol.

    The snake’s plans are at their most vulnerable…

    God bless Fiji

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