The Fiji Commerce and Employers Federation (FCEF) has praised the government’s plan to initiate an independent inquiry into the contentious 1 percent Fiji National University (FNU) levy, which has faced criticism for its previous misallocation. The announcement was made by Deputy Prime Minister and Minister for Finance Prof. Biman Prasad during the disbursement of the FCEF-TSLS Graduate Business Start-Up Grant Scheme last month.
The FCEF has raised concerns about the long-standing obligation for employers to contribute this levy to fund worker training and upskilling, which dates back to 1973. However, since 2019, significant portions of these funds have been diverted to cover government medical schemes and worker compensation, with only 10 percent allocated for training. Prof. Prasad acknowledged the FCEF’s concerns, promising that the government’s review will precede any legislative changes.
FCEF Chief Executive Edward Bernard expressed cautious optimism regarding the government’s commitment, indicating that this inquiry represents a significant advancement in their ongoing dialogue. Bernard stated, “This is different from DPM’s response a few weeks ago when I asked him — he said that he will look into it.” He emphasized that the levy contributes approximately $35 million to $40 million annually, highlighting the necessity of restoring its original purpose for training.
This situation mirrors earlier discussions regarding the government’s funding practices related to the FNU levy. Reports indicated that from the total collected in 2022, only a fraction was used for actual training while vast sums were allocated elsewhere, such as 50 percent towards medical schemes—a shift that has sparked widespread discontent among employers. With the proposed Work Care Bill also facing scrutiny for maintaining these distribution patterns, there is hope that the government’s current approach could lead to much-needed reforms.
Employers are hopeful that ongoing engagements with the government will create a more transparent and equitable allocation of funds, ultimately enhancing workforce training and supporting economic growth. This optimism suggests that with collaborative efforts, Fiji could build a more skilled labor force ready to meet the challenges of changing economic demands.
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