Employers in Fiji are calling on the government to reassess the allocation of funds raised through the Fiji National University (FNU) levy. This levy, which constitutes a mandatory one percent tax on total gross emoluments, was initially intended to enhance workforce training and development across the nation. However, changes instituted by a previous administration have redirected the majority of these funds, leaving only ten percent available for training purposes.
The Fiji Commerce and Employers Federation (FCEF) has formally submitted its concerns to the Parliamentary Standing Committee on Economic Affairs, highlighting that only $2.3 million out of the $23 million raised in the 2022 levy was allocated for training. Deepak Rathod, a board member of FCEF, emphasizes that this misallocation undermines efforts to upskill the workforce and raises constitutional issues since such levies should typically receive parliamentary approval.
In response to these grievances, Minister for Employment, Productivity and Industrial Relations, Agni Deo Singh, has indicated that the government will investigate these concerns further. The proposed adjustments under the Work Care Bill continue to mirror this problematic distribution of funds, which has raised alarm within the business community.
Previously reported concerns also indicate a broader issue with resource allocation and efficiency regarding workforce training funds, as noted by the FCEF during their submission to the government. Employers express frustration over the lack of transparency and efficacy in how these funds are managed, fearing it stifles potential growth and skilled labor development.
This tumultuous situation holds the potential for positive change, as the ongoing dialogue between government officials and business stakeholders may pave the way for more equitable and transparent financial practices that prioritize workforce development. The aim now is to foster collaboration that not only benefits employers but enhances the overall skill set of the workforce in Fiji, reinforcing the foundation for sustainable economic growth in the future.
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