Drugs, Fuel, Comparisons with NZ, Teachers, Wages

Check out the new Quote for the Week in the right sidebar and 

scroll down to Friday's postings and Weekend Reading.

NOO33. ESSENTIAL DRUG PRICES DOWN 30%. Prices of 74 basic essential pharmaceutical products that are under price control will be reduced by an average of 30% from next Friday but "lifestyle" drugs, on which pharmacists will be able to make high profits, will not be affected. Pharmacies will be required to display the basic drugs under price control.

In making this announcement Commerce Commission chairman Dr Mahendra Reddy said “Government has been concerned for some time with regard to the high and increasing prices of pharmaceutical products, in particular, essential drugs, and  their variability within a small geographical location.” he said.

Dr Reddy said there were several implications from these two issues: First, low income households could be deprived of accessing essential drugs; secondly, an unhealthy population creates additional costs to Government’s health system, and  thirdly that  lack of full information on drug prices implies those seeking drugs may end up buying drugs from pharmacies whose prices are much higher relative to those whose prices are low.

N0034. BUT FUEL PRICES ROCKET. Today the price per litre of motor spirit will increase by 16 cents to F$2.37, diesel by 12 cents to $2.07, Premix outboard fuel price by 20 cents to $2.33. and kerosene by 11 cents to $1.68. This will obviously impact heavily on the transport industry where govenment controls prices.

The Fiji Bus Operators Association said they are ready to absorb the increase as no further submissions will be made to the government to cushion the effects of the increase.

However, Fiji Taxi Union general secretary, Rishi Ram said he will write to the Transport Minister and LTA Board requesting them to consider the earlier submission for the survival of taxi industry.

Fiji has no control over the price it pays for imported fuel which has recently increased in price due the Northern hemisphere winter where fuel is also used for heating and power generation. This is a major reason why government is pushing micro-hydro and other local fuel saving projects.--  Based on 2011, No:0083/AG

N0035. NZ FUEL COSTS EVEN HIGHER. Fiji is now paying F$2.37 a litre for standard petrol, but New Zealand motorists are paying NZ$1.975 or  F$2.785,  41 cents a litre more than Fiji.  If only we'd had a coup, I could blame it on John Key.

N0036. NO JOY FOR NZ. Unlike Fiji's anti-govt bloggers who rejoyce at every economic setback for their homeland, I take no comfort from the fact that the NZ economy is barely growing and may have actually shrunk late last year. This fact is recorded to show that many of Fiji's economic problems have nothing to do with the 2006 Coup.

N0037. MORE TEACHERS RECRUITED. the Ministry of Education reports it will recruit 200 to 240 new teachers this year to replace the 167 who retired last year, those who have changed occupations, who are on in-service training and others who left for overseas. Deputy Secretary Josefa Sania said the "teachers will be replaced by graduates from Fiji's tertiary institutions ...  We have enough graduates from these institutions."

Fiji has approximately 5,000 primary and 3,000 secondary teachers. The overall pupil-teacher ratio has decreased slightly to about 20, but like most averages the ratio is misleading.  Rural school ratios are sometimes as low as 1:10 but in urban schools, most particularly in Suva and Lautoka, the ratio is between 1:45 and 1:50. -- Based partly on 2011, No:0056/MOI.

N0038. BARR KEEPING FINGERS CROSSED. Chairman of the Wages council, Fr Kevin Barr, is keeping his fingers crossed that the PM's Office would consider its recommendation and move forward the implementation date for the new Wages order which is expected to come into force from May this year. He said more detailed information is needed on the workforce to ensure appropriate levels of wages are paid for the various sectors.The lack of information on numbers employed in each sector and the work they perform is a challenge in setting out fair levels of wages and salary.

It is understood that government wants three economics professors to determine minimum wages but the Wages Council prefers a formula, used by many other countries, based on the cost of living. Employers prefer one based on inflation and productivity. The Wages Council would also prefer determination to be made by a group more representative of the social sciences.