By Lauren A.E. Schuker for the Wall Street Journal
Bottled-drink company Fiji Water said it reopened its facility in the South Pacific country for which it is named, following a two-day standoff with the local government over taxes.
Fiji Water, which is owned by billionaire investors Lynda Resnick and Stewart Resnick, closed its bottling plant Monday, sending about 400 workers home, in response to a move by the Fiji government to impose a steep tax increase on companies that extract large volumes of water from the country. Fiji Water was the sole company affected by the increase.
Over the past day, Fiji Water lawyers Craig Cooper and Marigold Moody met with Fiji government officials, including Prime Minister Voreqe Bainimarama, seeking to resolve the dispute. After the meetings, Fiji Water agreed to accept the tax increases and reopened the plant 8 a.m. local time on Wednesday.
"Fiji Water is committed to working with the Fijian government and remains dedicated to helping the country's economy and its people," the company's president, John Cochran, said in a statement.
Earlier this week, Commodore Bainimarama, who came to power in a 2006 coup, said he would welcome a rival taking over Fiji Water's assets if the company refused to comply with the government's tax increases.
Fiji Water, which was started in 1996 by Canadian businessman David Gilmour, has deep ties to Fiji. Its water comes from an artesian aquifer in the Yaqara Valley, a remote part of Fiji's main island. Almost all of the company's workers are Fijians.
On Monday, the company idled those employees, saying it would pay them two weeks' salary. However, it said it has called them back to work for Wednesday's re-opening.
Fiji Water accounts for about 2% of the $10.6 billion U.S. bottled-water market, making it one of the biggest imported waters in the U.S.
The Resnicks' holding company, Roll International Corp., bought Fiji Water in 2004 from Mr. Gilmour, who also founded a resort in the country. Fiji Water's sales rose to $141 million in 2008 from $78 million in 2005 but fell last year to $85 million.
This blog is a result of the heavy censoring of the media by Fiji's dictatorship regime.
NEWS WORTHY COMMENTS BY YOU!
Few weeks ago Coup 4.5 reported the saga between Fiji One's Satish Narayan and Bainimarama's daughter. Yesterday June 17, 2013 Satish Narayan received his walking papers from Fiji One.
It is understood that Bainimarama called a board member of Fiji One, Padam Lala and told him if Fiji One wants their License in tact, they will have to sack Satish Narayan.
Padam Lala instructed Tarun Patel to sack Satish Narayan immediately, If Patel wanted to keep his job.
The employees of FBC were told of the firing of Narayan way before the employees of Fiji One were made aware of.
Lets hope that Fiji One will not find themselves as part of the FBC in near future. on Burrow: ITUC will push for Commission of Inquiry on Fiji
@2:36 what illegal AG go underground sorry!!! too late.Mr Illegal AG your file is within the military Intel not with Rokoura(PM's office) whom you paid to hide and destroyed files against you that went straight to PM.
Anything against you that son of Neel sharma in HR RFMF rings the bell to Aziz, then you meant to let the complaint follow the channel where you intercept all files against you at PM's office thru Rokoura who hide and destroyed them and you know what he forges PM's singnature on some files and put a [FA]File Away notice on it.
These meant all complaints against you gather dust at Rokoura's residence or he destroyed it completely.
Your private deals with Ports,AFL,TFL,IF etc all filed and kept not there in Fiji its overseas mate !!!
Khaiyum you are comfortable becoz all complaints against you had been filed away by this man Rokoura,not now Mr illegal want to be smart you are exposed to the root!!!
he too one of those used taukei(bought)by you so you can loot as much as you on Burrow: ITUC will push for Commission of Inquiry on Fiji
Editor, we learn from a Fiji Times report that Minister for Housing, Environment, Local Government and Urban Development Colonel Samuela Saumatua has resigned "for personal reasons" according to a statement issued by the Ministry of Information yesterday (FT 18/6).
Be that as it may, my question is why should the Attorney-general Aiyaz Saiyad-Khaiyum "assume the position om an acting basis until a successor was appointed"?
Is Mr Khaiyum the only capable man in the illegal military regime in Fiji? Doesn't he have enough portfolios already?
What would this new addition take the total number of portfolio being handled by this Fiji superman? sincerely, rajend naidu sydney on Burrow: ITUC will push for Commission of Inquiry on Fiji
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9 comments:
Considering the success of Fiji Water in the US and around the world. I was a bit sceptical about aborting the operation in Fiji. Even a 20% tax would still work for Fiji Water. They have to resist to make it look like a genuine rebelious move but Ayass is smart. The only problem is more money in their pockets bloody IG.
Why do I have the feeling that this is not the end of the story? With decreasing sales of Fiji Water in the US market (2009 production was only half the 2008 output) it might make a lot of sense for Fiji Water to stick to the 3.5 million liter limit and avoid the tax increase.
Gee - todays 2 main papers carried interesting insight into both their roles in this current politically charged climate.
Alleged military alligned FS simply stated "following discussions Fiji Water will
re open".
Despite yesterday completly ignoring breaking story regarding Fiji Waters threat to close down & leave - former anti regime Fiji Times to day proclaimed "Fiji Water caves in to demands".
Quite a role reversal in any language.
Can only hope NewsCorp patriach & his underlings are keeping a close eye on whats going on?
One things certain - current lessee
seems determined to carve his own unique chapter into this Mastheads long & colorful history.
Sounds great of Fiji to repay Fiji Water $4-$5 million of VAT. The fact of the matter is that FIRCA takes this money from Fiji Water in the first place and then repays it months later. It is a loan from Fiji Water to Fiji. They are supposed to repay Fiji Water within 30 days but never do. Another reason for investors not to invest in Fiji.
what does jake think of all this? he can usually put a good spin on things
Jake is cleaning Bai's dog house.
Is Fiji water just building up inventory so that they can move to NZ soon and tell Bainimara to go to hell
What started out as pretence that the corporation’s position is stronger than it really is ended with an embarrassing back down for the man stood his ground?
One cannot out fox an old fox.
For every Fijian born post 1970 and those yet to see the light of day ought to thank their lucky stars they have a true and equitable leader at the helm.
Bainimarama is still alive and doing very well.
Jake
Of course Fiji Water would reopen, they are raking in millions. It really is money for nothing for them. These people are billionaires...They WILL NOT close their money making machin. John Cochran talks about caring for the people of Fiji and it's economy..all they are caring about is filling their own pockets.
So is Frank..hopefully the 15% tax will go towards the econmy and its people as opposed to lining Frank and his cronies pockets.
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