Local Government in Asia and the Pacific: A Comparative Study

Country paper: Fiji

  Description of the Country
  Evolution of Local Government
  Local Government Categories
  Local Government Functions
  Local Government Finances
  Personnel Systems
  Central-Local Links
  Public Participation
  The Way Ahead
  References

Brief Description of the Country and its National/State Government Structure

Demography

Fiji is located in the South Pacific Ocean between latitude 15 and 22 degrees South and longitude 175 degrees East and 178 degrees West. The national territory contains some 330 islands, only about 100 of these are inhabited. The total land area is 18,272 square kilometres. The two largest islands, Viti Levu and Vanua Levu, account for about 87 per cent of the total land area and contain most of the population and economic activities. Overall population density in 1996 was 42.3 persons per square kilometre. The islands of the Fiji Group are volcanic in origin and generally mountainous. Only 16 percent of Fiji's landmass is suitable for agriculture. Major river systems are the areas of intensive agricultural activity and river deltas are cultivated extensively. Several of the larger urban centres are located in or near the river deltas. The climate is subtropical and is conducive to the production of a variety of tropical products. However, the country lies within an area occasionally traversed by tropical cyclones, mostly during the months of November to April. On average, some ten to twelve cyclones per decade affect some part of Fiji and two or three can be very severe, causing serious damage to crops, buildings and infrastructure.

In 1996, the population amounted to 772,655 with a multi-ethnic composition: Fijians 51 per cent; Indians 43 per cent and others 6 per cent. The category others comprises people of Chinese, European, partly European, Rotuman and other origins. The estimated annual rate of population growth is 1.6 per cent. The main features of population growth during the last decade, as identified by the Bureau of Statistics are:

• Declining growth rates overall, recording an inter-censal growth rate of 8 per cent, being the lowest growth rate between censuses since the 1901 census;
   
• Smallest increment in population size in recent decades, with international migration being the most significant determinant;
   
• Dramatic change in the ethnic composition of total population, with native Fijians now accounting for the majority;
   
• Intensified urbanization, more especially by Fijians;
   
• Decrease in the proportion as well as the size of the overall rural population.

In 1995, life expectancy at birth was estimated to be 61.4 years for males and 65.2 for females. Access to health care is 100 per cent and access to safe water is 95.9 per cent in urban areas and 68.8 per cent in rural areas.

Fiji's central position in the South Pacific region has been strengthened by recent developments in sea and air communications as well as transport. Today Fiji plays a major role in regional affairs and is generally recognized as the focal point of the South Pacific. The economy is based largely on agriculture, mining and tourism and considerable emphasis is placed on expansion of exports. The Gross Domestic Product per capita in 1995 was estimated to be FJ$ 2,976 (US$ 2,083). The consumer price index, with a base of 100 in 1987 was 152 in 1994. The 1996 census indicated a workforce of 241,160 of whom 19,668 or 8.2 per cent were unemployed. Some 10 per cent of the population are believed to be living below the poverty line. The national economic policy emphasizes the deregulation of the economy and transfer of state enterprises to the private sector.

Land policy plays a crucial role in national development as well as in many aspects of local government and urban management. Some 83 per cent of the land in Fiji are classified as Native land, 10 per cent as freehold and some six per cent as State land. Native land is owned by individual land-owning units and is administered by the Native Lands Trust Board on behalf of the owners. Native lands may be leased for different urban uses for varying periods of time but not sold like freehold. Lands within Fijian villages are declared as native reserve and the land under reserve usually extends beyond the villages to include native lands required for use by the landowners. These lands cannot be leased to non-Fijians. State land is administered by the Director of Lands and is leased for varying periods for all types of uses. Land information systems are fairly advanced and all maps and land records are regularly updated. Urban development in Fiji has reached a stage where in most urban centres State land and freehold land are already developed and future development would have to be accommodated mainly on native land. The current mechanisms for the development of native land do not fully meet demand in many urban centres and this is causing the growth of squatter settlements in peri-urban areas as well as legal difficulties for municipal councils to collect the land rates due from unalienated native land located within municipal boundaries.

The growth of urban settlements has been a constant feature of Fiji's development and the provisional results of the 1996 census indicates that urban dwellers comprise 46.4 per cent of the total population, compared to 38.7 per cent in 1986. This is because of increasing densities within the urban boundaries and additional population from extensions made to urban boundaries during the 1996 census to include settlements adjacent to urban areas where economic activity had become predominantly non-agricultural. Overall, the urban population increased by 29.3 per cent between 1986 and 1996, resulting in an annual growth rate of 2.6 per cent. This growth is due to natural population growth as well as migration from the rural areas. At the time of the 1986 census the population resident in proclaimed municipalities was 136,755, that in the peri-urban areas 126,786 and that in the unincorporated towns 13,492. During the intercensal period the boundaries of some towns were extended in accordance with the legislation to cover the peri-urban areas. For the 1996 census urban centres were demarcated to include peri-urban areas adjacent to municipal boundaries.

A distinct feature of urban development in Fiji is the primacy of Suva and the metropolitan area, which is demonstrated by adding the populations of the adjacent areas of Lami and Nausori to the population of the Suva Urban Centre. The metropolitan total of 207,984 people represents a total of 27 per cent of the national population and 58 per cent of the urban population. Lautoka, the next largest city accounts for 12 per cent of the urban population.

In addition to the urban population recorded by the census, there are increasing numbers of non-agricultural settlements along important roads outside some of the main urban areas. The location of such settlements is often decided by factors such as unsuitability for agricultural use, land tenure and land cost. Some of these settlements are being developed without the necessary approvals in zoning, land subdivision, provision of services and building construction and there is no security of tenure. Some of these settlements have been initiated through the entrepreneurship of landowners to meet a strong demand for affordable land for housing. It is the policy of the relevant government authorities to provide peri-urban settlements with basic amenities such as water supply and electricity. A further characteristic that needs to be considered is that most urban centres serve as regional centres for viable agricultural hinterlands and also as employment centres for large numbers of people who have their residences in the agricultural settlements outside the urban centres. Moreover, major secondary schools in the District are located in urban centres. Consequently, there is an influx of daily population into the urban centres that is considerable compared to the resident urban centre population.

Table 1. Population of Urban Centres (1996)

Source: Fiji Bureau of Statistics, Statistical News, 21 February, 1997

* Denotes Urban Centres not incorporated as a Town under the Local Government Act.

** The Urban Centre includes the municipality and the adjacent peri-urban area, e.g. Suva Urban Centre includes the peri-urban settlement known as Nasinu, lying between Suva and Nausori which in October 1997 was undergoing the statutory process for consideration for designation as a Town under the Local Government Act.

National governmental and political structure

Fiji gained Independence in 1970 and became a Dominion within the Commonwealth, with a Governor-General representing the British Queen and a Prime Minister as the head of the government. It was declared a republic in 1987 after two military coups d'état. A new Constitution, formulated in 1990, was implemented in 1992. This Constitution provided for a President as Head of State and a Prime Minister as the head of government. In accordance with that Constitution a Constitution Review Commission (CRC) undertook a comprehensive review through an extensive system of public consultations. A revised Constitution, which is based on the recommendations of the CRC and which addresses many of the shortcomings of the previous one, was adopted in July 1997. Fiji rejoined the Commonwealth in September 1997, after having been suspended in 1987.

Fiji's Parliament largely follows the procedures and customs of the British Parliament. It has a parliamentary system of government, with a President as Head of State and a Prime Minister as the head of the government. The Parliament has a two-chamber system with an Upper House, the Senate and a Lower House, the House of Representatives. Under the current Constitution, communal constituencies elect parliamentarians to the House of Representatives but members of the Senate are nominated. A multi-party system of representation has been a regular characteristic of national political activity in Fiji since the 1940s and this characteristic has been provided for in the new Constitution.

The parliamentary leader of the party that has most of the seats in the House of Representatives becomes Prime Minister. He or she and other Ministers form the Cabinet. Government policies are made by the Cabinet and special subcommittee coordinate and plan details of government activities. In addition, the Cabinet also advises the President on governmental matters. Ministries undertake the administration of governmental affairs with defined portfolios. As of September 1997 there were seventeen ministries each having jurisdiction over relevant government departments or units staffed by career public servants that do not relinquish their appointments upon a change of government. Since the late 1980s, the government has been pursuing policies aimed at reducing and reforming the role of the public sector. There are a number of statutory bodies and government-owned corporations that have responsibility over certain defined functions. These include telecommunications, electricity, radio and television, ports, social security funds, native lands and housing. Boards comprising governmental and private sector representatives direct all of these bodies but there is no representation of municipal councils even though local governments exist.

Sub-national government

At sub-national level, governmental and administrative activities are undertaken through four distinct systems: the government administration, the Fijian administration for matters concerning exclusively native affairs, the municipal administration and rural local authorities.

Government administration

Fiji is divided into 14 provinces, each comprising of a number of Districts. For administrative purposes the country is divided into four Divisions (Northern, Eastern, Southern and Western) each comprising of two or more provinces. Divisional Commissioners and District Officers, whose main function is to coordinate all governmental services and development activities respectively, head the Divisions and Districts. Divisional and District Development Committees, comprising public servants and private individuals, prepare programmes for development to be carried out through government funds.

Fijian administration

The Fijian Affairs Board, constituted under the Fijian Affairs Act (Cap. 120) governs all matters concerning the administration of native Fijian affairs, including Fijian custom services. The Board refers certain matters to the Great Council of Chiefs, constituted by the President under the same Act. The fourteen provinces are administrative units each governed by a Provincial Council with an executive head (Roko Tui). The functions of the Provincial Councils are: "to promote the health, welfare and good government of Fijians resident in the province and to carry out such other duties and functions which the Minister or the Fijian Affairs Board may see fit to delegate to such council". The councils have similar powers as are vested in municipal councils, including making of by-laws, levying of rates and control of building construction in Fijian villages. The Fijian Affairs Board approves the appointment of these executive heads and approves all rates and by-laws applied by the Provincial Councils. The basic unit in the system of Fijian Administration is the village (Koro) headed by a Turaga-ni-Koro elected or appointed by the villagers. Several Koros form an administrative sub-unit of a province (Tikina). A province consists of a number of Tikinas.

Municipal government

The major urban centres are proclaimed City or Town under the Local Government Act (Cap. 125) and are administered by councils elected by the eligible population residing within proclaimed boundaries. The Ministry of Local Government, Housing and the Environment has overall responsibility over municipal government.

Rural local authorities

All areas outside the jurisdiction of proclaimed cities, towns and Fijian villages come under the purview of the rural local authorities, which are public health authorities constituted under the Public Health Act (Cap. 111). Their primary responsibility is to control public health, building construction and other matters governed by The Public Health Act. Many of them have considerable peri-urban housing development power but they have no rating powers even though under the Town Planning Act they are the planning Authority for their areas. The Central Board of Health, constituted by the Minister for Health, maintains overall coordination of the activities of the rural local authorities.

Evolution of Local Government, its Legal and Political Background

Historical development of local government

Fiji became a British Crown Colony after the Chiefs ceded Fiji to the British Crown under the Deed of Cession of 10 October 1874.This deed was executed in Levuka which was the largest urban centre of that time, being the main seaport servicing commercial activities in eastern Fiji. A colonial administration was set up, with its capital in Levuka.

Local government was first established in Fiji under the Towns Ordinance of 1877.The Town of Levuka was proclaimed under this legislation. As a result of the changing economic geography of Fiji after the introduction of indentured labour from India and of the need for a deep water harbour, an urban centre was established at Suva, the present capital. Suva was proclaimed a Town in 1881.

With the expansion of sugar plantations in western Viti Levu and northern Vanua Levu urban centres grew up in the vicinity of the big sugar mills (e.g. Lautoka, Labasa, Ba and Nausori). Other urban centres grew at the point of navigational limit on rivers that were part of the sugar cane transportation system (e.g. Nadi).

Townships were proclaimed under the Municipal Institutions Ordinance of 1909 that was succeeded by the Townships Ordinance. Town Boards that comprised mainly nominated members and a number of civil servants serving in their ex-officio capacities administered townships. The Local District Officer, who was the head of the government administration in the District usually headed the Boards.

Suva and Lautoka were each proclaimed as a Town under the Local Government (Towns) Ordinance (1935) and were administered by elected councils. Legislation covering municipalities was streamlined with the enactment of the Local Government Act of 1972, after which the Township Boards were designated as Towns. Suva was proclaimed a city in 1952 and Lautoka in 1977.

Table 2. Proclamation of Local Authorities and Dates of Incorporation

In late 1997 the statutory process was in train for the proclamation of a Town over Nasinu, a large peri-urban settlement between Suva and Nausori. In addition, a proposal for the creation of a town covering the urban development at Navua and the tourism-oriented development at the adjacent Pacific Harbour was under public exhibition.

Local Government Categories and Hierarchies

Prior to Fiji gaining Independence, a membership system of government was introduced, whereby selected Members of the then Legislative Council, assumed responsibility for specific functions of government, including local government. After Fiji obtained Independence in 1970, the Local Government Act was enacted in 1972. It consolidated and amended, as necessary, the various colonial ordinances that governed towns and townships. Under this Act the administration of towns was transferred to elected councils. The Act was consolidated and amended in 1980.

After the military coup of 1987, Government Decree no. 21 of 25 February 1988, empowered the Minister responsible for Urban Development to appoint members of the council on a yearly basis. At the same time the provisions in the Local Government Act relating to the election of councillors were repealed. Matters were returned to normal after 1993 when new elections were held in accordance with the Act.

The political composition of the elected councils indicates that most elected councillors represent one or other of the major political parties active at the national level. It is quite normal in the local government sphere for the majority in a council to come from a political party different from that in power at the national level. There have been very few cases of independent councillors or those representing organizations that are not political parties, such as the Ratepayers Associations. In Suva City Council a number of political parties in recent years have decided to work together as a Ratepayer's Association. The Constitution Review Committee, in its review of the Constitution, declined a request for a certain number of seats on municipal councils to be reserved for community groups.

Under the Local Government Act and other legislation, local authorities are charged with responsibilities that include issues concerning public health, town planning, subdivision of land, roads and traffic, markets, purity of foods and licensing of businesses, including shops, restaurants and hotels. At the National Economic Summit held in 1995, one of the resolutions passed was that local government should play an active role in facilitating economic development and growth. Over the years certain functions initiated by local councils or the private sector (e.g. electric power supply in towns) were taken over by the government when it decided to consolidate certain services on a national basis in order to achieve efficiency and economy of scale. During 1995 the fire services managed by the various city and town councils were taken over by the newly constituted National Fire Authority and the fire equipment and personnel of all local authorities were transferred to this new authority. Local government did not have any direct recognition in the 1990 national Constitution nor does it have any recognition in the revised Constitution of 1997.

The Constitution Review Commission considered that the Constitution should not expressly recognise local government or guarantee local government autonomy. However, it recommended that: "the Government should commission a broad and comprehensive review of all local government arrangements in Fiji to be carried out by an independent and broadly representative body. The review should, in the light of modern needs, re-examine the organization, functions and powers of all the existing local government bodies provided by law. The terms of reference should include a review of the Local Government Act (Cap. 125). Ministerial supervisory powers over local government and electoral arrangements should also be re-examined. It should also include a review of the operation of those bodies that exist without a statutory basis. The reviewing body, among other things, should be required to inquire into appropriate democratic systems of local government for rural areas".

Organization of local government

The Local Government Act Cap. 125, makes provision for the Constitution, by the Minister for Local Government, of two classes of municipalities, i.e. cities and towns and districts. As of October 1997, there were two Cities (Suva and Lautoka) and nine Towns (Ba, Labasa, Lami, Levuka, Nadi, Nausori, Savusavu, Sigatoka and Tavua). There are as of yet no Districts proclaimed under the Act. The Act also provides for the Minister for Local Government to upgrade an existing Town to be a City. The 1980 amendment to the Act provided for the appointment of a Local Government Committee to undertake certain functions including the undertaking of enquiries relating to proposals by local authorities to extend their boundaries. The national Electoral Commission divides each city and town into wards such that each ward has the same number of adult inhabitants, but this criterion may be varied to take into account geographical features, means of communication and density and mobility of the population. The Act provides for the Constitution of a council for the government of each municipality. Legally each council is a body corporate with perpetual succession and a common seal. The Electoral Commission decides on the number of councillors that constitutes a council as well as the number of councillors from each ward. This Commission also conducts the municipal elections. However, these were suspended after the military coup in 1987 until 1993 during which period the Minister appointed the councillors under a decree of 1988.

Every person of or over the age of twenty-one years who is a citizen of Fiji and who is the occupier or owner of land or house within the municipality is eligible to be enrolled as an elector. In addition, commercial concerns operating in the municipality and deceased estates have the right to nominate electors. The Act also prescribes the qualifications and disqualifications for electors within a municipality who wish to be elected as a councillor. Voting is not compulsory but this matter is currently under review. A councillor may hold office for a period of three years and is eligible for re-election. A Mayor who is elected annually by the council from among the councillors heads each council. The councillors may elect the mayor for further one-year terms. The mayor's primary functions are to chair meetings of the Council and to represent the council at civic functions. In meetings of the Council, the Mayor does not have the power of veto but has a casting vote. He is not involved in the day-to-day administration of the council's operations. The one-year term of the Mayor is not considered to be a drawback since the council's overall policy and its development programme is formulated by the whole council and the executive staff abolishment is usually of a permanent nature. In addition to the elected councillors, the Minister may nominate advisers to assist the Council and such advisers are entitled to attend meetings of the council but they do not have a right to vote. Municipal councils are required to hold meetings each month and are empowered to make their own rules of procedure to supplement the provisions of the Act. Councils are also required to annually transmit to the Minister a copy of the financial statement prepared by the council together with a report of the auditor thereof as well as a report containing a summary of the proceedings and activities of the council during the preceding year.

Villages in urban centres

A feature of almost all city and town councils is the location of Fijian villages within the built-up area of the municipality, although not necessarily within the municipal boundary. These villages enjoy many of the benefits from the services and amenities provided by the council but do not pay any municipal rates. As a result only ad hoc arrangements are being made with the council for the provision of specific services, especially garbage disposal. In the case of the Fijian villages in the Nadi urban centre, arrangements are made with a private company for the disposal of garbage. There has been a growing trend in most of the urban villages for the construction of buildings in permanent materials, as a result of which these villages are consolidating their character of being part of the built environment of the town.

Municipal councils may, with the approval of the Fijian Affairs Board and the Minister, make by-laws concerning the manner in which Fijian villages may be incorporated in the municipality, for the method by which rates may be levied in such Fijian villages and for the minimum standard which is required to be attained in the construction of buildings. So far no initiatives are known to have been made in this regard. In the case of Lautoka City Council the village of Namoli is within the municipal boundary and city rates have been levied for many years. However, no payments have been made by or on behalf of the landowners and the arrears in the payment of rates have mounted to FJ$ 297,445 by the end of 1995. This amount may be compared to the council's total rate of $ 2,075,699 in 1995. As many attempts over the years to resolve the matter have proved unsuccessful the matter is to be resolved through the legal system.

The government has established an Urban Fijian Programme Unit within the Ministry of Fijian Affairs to address the problems and needs of Fijians living in urban centres. Among the matters that have received specific attention is the question of the inclusion of Fijian villages into the municipal boundaries. Besides the government has set out the principles for exploring the inclusion of those Fijian villages that are located within urban areas with full consultation with the people of the villages and other related authorities. Such consultation must take into consideration that:

• The village was in existence before the municipality came into being and the sacrifice made by the villagers in compromising their traditional village lifestyle by allowing urban development to occur around the villages;
   
• The villagers have contributed significantly towards the development of the municipality through the use of their land;
   
• Fijian sensitivities are linked to the sacred surroundings, life style and milieu;
   
• Villages included in the municipalities shall be assessed for special rates only for special services provided. Villages shall not be assessed for general rates and such exemption is granted under section 60 of the Local Government Act.

Committee structure of councils

Councils appoint standing or special committees for consideration, enquiry, management or regulation of specific types of matters. However a council may not delegate any of its powers and duties relating to borrowing money, making a rate, making by-laws, executing a contract, or instituting a legal action. Most local authorities appoint committees for specific functions such as finance; personnel and industrial matters, town planning, building development, land subdivision, development works, etc. Nadi Town Council, being located in an area of considerable tourism activity and next to the country's main international airport, has appointed a Tourism Committee which coordinates its activities with the Fiji Visitors Bureau. In all Councils the terms of reference for each committee are clearly set. In accordance with the Act, many councils appoint persons who are not councillors to these committees to provide information and advice on particular matters. Some committees appoint a number of subcommittees, usually of limited duration, to consider special matters.

Joint committees

The Act also provides for the appointment of joint committees among municipal councils, provincial councils established under the Fijian Affairs Act and a rural local authority constituted under the Public Health Act, for purposes in which they are jointly interested. To date, no such joint committees have been appointed but proposals are advanced to form one such committee for the management of the new garbage dump a Naboro outside Suva. This joint committee is to comprise the Suva City Council, the Lami Town Council, the Suva Rural Local Authority and the Namosi Provincial Council, as each of these bodies would be involved in the management of the disposal site.

Local Government Functions

Each council is required under the Local Government Act to do all such things lawful and expedient to promote the health, welfare and convenience of the inhabitants of the municipality and to preserve amenities. Specific functions of municipalities elaborated in the Act include public utility services, purchase of land and dealings in land, housing schemes to provide dwellings for persons of small means, streets and drainage. Under the above broad provisions councils undertake a large variety of developmental works and services.

Traffic management

This includes construction and maintenance of roads, footpaths and traffic junctions, street and traffic lights, parking metres and municipal car parks as well as bus stations.

Public health

This includes policing under the Public Health Act, including inspections of residential, commercial and industrial premises, policing under the Pure Foods Act and Regulations, construction and maintenance of drains, mosquito control works, rodent control, stray dogs' removal, solid waste collection and disposal, gully emptier service for dislodging septic tanks and community health education through health education programmes conducted on mosquito breeding and proper refuse disposal. In addition to the above, particular emphasis is placed on reducing the incidence of litter in municipalities, for which a specific legal mandate is provided under the Anti-Litter Decree. All Councils organize regular clean up campaigns and free collection of garden refuse is undertaken as a way of fostering participation in the upkeep of the municipal environment. Councils take an active role in the observation of the National Environment Week.

Markets

All councils and rural local authorities build and maintain markets primarily for the sale of vegetables and marine produce. Stalls are rented out to persons residing within or outside the municipal boundary. Rural local authorities construct the market buildings from the funds accumulated from the stall charges only as they do not have the legal authority to generate revenue by levying municipal rates.

Public amenities

This includes construction and maintenance of public conveniences and swimming pools. Some councils provide library services but many have found them to be expensive to maintain efficiently but have continued to provide this service as a public amenity. Efforts by some councils to hand over this service to the Fiji Library Service have been unsuccessful. The Levuka Town Council, being the first capital and the site of important events in the history of the nation, undertakes maintenance of a number of historical buildings and sites. Most of this work is funded from the rates revenue.

Recreation

This includes the construction and maintenance of parks and gardens, botanic gardens, children's parks, major sports stadiums in consultation with the Fiji Sports Council. Town beautification programmes include tree-planting programmes, an active role in the observation of National Harbour Day and control over advertising.

Waste management

All councils provide a solid waste disposal service to remove household, commercial and industrial waste. In most councils the refuse disposal and garbage collection undertaken six days a week and additional services are provided during clean up campaigns. There has been a growing trend towards contracting out this function to local contractors and the experience of most councils has been satisfactory.

Many councils have found difficulty seeking satisfactory sites for garbage disposal to replace the current sites which are located on environmentally unsatisfactory sites. Sigatoka Town Council has been notified by the Director of Lands to vacate the present dumpsite at the sand dunes. However, until now the council has had no option but to continue since it has been unsuccessful in acquiring an alternative site despite considerable efforts. Nadi Town Council does not own a garbage dump of its own and uses the one operated by the Lautoka City Council. Potential sites it has identified have been considered to be unsuitable on account of possible interference with the operations at the international airport, potential leaching from sites in the hills behind the town and probable damage to the marine environment from sites close to the foreshore. Lautoka City Council's garbage dump, located on state land in the delta of a neighbouring creek and accessible through unalienated native land, has had its access occasionally blocked by native owners of the access road land. Garbage disposal in the Suva metropolitan area has reached a critical situation since the dumpsite on the foreshore in the adjacent town of Lami has become the source of a range of environmental problems.

In order to address the issue of garbage disposal the government has set up a National Waste Management Committee that has been actively pursuing possible solutions. In the case of the Suva metropolitan region a new site has been selected some twelve kilometres from the city after feasibility studies indicate suitability from environmental aspects. For other areas, while the search for the necessary alternative sites is proceeding, serious consideration is being given to alternatives to dumping for land fill, including converting waste to energy through incineration and through the use of biowaste.

Land and building development

Some councils have been able to engage in land and building development projects to promote development within their areas. The Lautoka Town Council successfully undertook a medium size land subdivision project for private housing. The Nadi Town Council undertook an industrial subdivision on State land in order to facilitate relocation of industries not conforming to the town-planning scheme. The project was successful, except that the stipulation of the Director of Lands restricting the generation of a profit denied an opportunity to the council to make a surplus. The initial tenants made this surplus in the value of the subdivided industrial sites. The Suva and Nadi Councils have constructed office and commercial buildings respectively for rental to the public. The Councils in Suva, Lautoka and Savusavu have undertaken Land reclamation projects on the foreshore for civic, commercial and industrial purposes.

Town planning and land subdivision

Municipal councils are designated as planning authorities under the Town Planning Act Cap. 139. They are required to prepare land use planning schemes and relevant town planning development control provisions for the area under their jurisdiction and control all land and building development in accordance with the national legislation covering town planning, subdivision of land, public health, traffic and related issues. The actions include the preparation and public exhibition of a provisional planning scheme, calling for public objections and the preparation of the council's comments on the objections for submission to the Director of Town and Country Planning for his review. The town planning function also includes surveillance of illegal developments to bring them into conformity with the planning scheme. Regular updating of the planning scheme is undertaken as well as the consideration of isolated applications for re-zoning.

Suva and Lautoka City Councils have their own by-laws for land subdivision. Under these they examine and approve all proposals for land subdivision and engineering works and undertake inspections throughout the construction period to ensure compliance with the approved standards. They also approve the survey plans prior to these being lodged in the office of the Registrar of Titles. All other city councils as well as rural local authorities have the opportunity to comment on proposals for land subdivision within their areas lodged with the Director of Town and Country Planning in accordance with the subdivision of the Land Division Act Cap. 140.

Building control

Municipal councils receive and process all applications for building, including extensions, demolitions and remodelling, to ensure that the building proposals conform to the town planning scheme and building and health regulations. This function includes inspection of the building during the construction process to ensure compliance with the building standards and to acceptable levels of workmanship in the quality of construction. In addition, councils undertake investigations for unauthorized developments and non-conforming uses. An important aspect of this function is the advisory service provided to prospective developers on the requirements of the major legislation and by-laws.

Fair rent administration

The Town Clerks of both the Suva and Lautoka City Councils are designated as the Fair Rents Officer under the Fair Rents Act for the resolution of rental disagreements between landlords and tenants.

Dredging of rivers

The large rivers beside the towns of Ba, Labasa, Nadi and Nausori are subject to regular silting arising from agricultural activities upstream. These towns suffer from severe flooding during the rainy seasons and especially during the cyclones. Damage caused to buildings and infrastructure is often considerable but the town councils do not have the financial capacity to undertake the necessary dredging of the riverbeds to avoid the flooding. This is a national problem, caused by activities undertaken in the river catchments located well beyond the municipal boundaries. Suva City Council, sometimes with financial support from the government, undertakes regular dredging of Nabakalou creek that flows through the central business district.

Subcontracting of services

In line with the global trends towards privatization of services there is some consideration being given to involving the private sector in the provision of some of the municipal services. Actions taken so far are not actual privatization of the service but contracting out of specific services. For example, the Lautoka City Council has contracted out services concerning garbage removal, street sweeping and washing, cleaning of market and public conveniences, drain cleaning and grass cutting, maintenance of traffic lights, street lights and the floodlights at the major sports stadium.

General

Municipal government is the second tier of government in Fiji and has important responsibilities to discharge in the overall development of the nation. With increasing population density and urban development their responsibilities are expanding continuously and councils are placing emphasis on their role in environmental management at local level. This increase in responsibilities is not matched by new initiatives of municipalities to mobilize more revenue. Furthermore, although an increasing portion of the national tax income is collected in municipalities, there is very limited financial assistance from the government to municipalities. In order to increase the efficiency of the available resources the Labasa Town Council has adopted a set of policy guidelines for its operations and approved a three-year development programme. Some of the smaller town councils appear to have very limited revenue to be able to provide the full range of local government services.

Rural local authority functions

Rural local authorities cover large areas outside towns and deal with varying amounts of urban development within their boundaries. In addition to their main function as public health authorities, they undertake a variety of functions usually undertaken by urban local authorities such as building control, town planning and garbage disposal, arranging dislodging of septic tanks and issuing business licences.

Local Government Finances

Municipalities are self-financing authorities funding a large part of operations from the revenues generated from the land tax (generally known as the town rate) and other local incomes. Councils base the town rates on the Unimproved Capital Value of land (UCV); the income from this source usually accounts for some two thirds of the total income. State land within a municipality is legally exempt from the payment of rates but the Director of Lands pays a grant-in-lieu approximately equal to the rate calculated for the UCV. The remaining income stems from rents of commercial premises, fees from the market and the bus stations, business licence fees, building fees and parking fees. The level of income from building fees declined in many municipalities after the military coup of 1987 but a number of councils had recovered to the pre-1987 levels by around 1995. Financial grants from the government are very rare and are only given for specific development projects. The National Fire Authority withdrew the grant that used to be provided for the maintenance of the fire service upon the take over of that service in 1995.

Most councils raise loans from the local capital market to finance capital development works. Loan finance is usually available from commercial banks, insurance companies and the Fiji National Provident Fund with repayment periods usually extending over 15 years. Security for the loan is a government guarantee or a debenture over the Council's income and assets. Councils manage their funds through the operation of distinct funds such as the General Fund for normal operations, the Loan Rate Fund for servicing outstanding loans and other specific funds. For example, Suva City Council also operates a Streetlight Rate Fund. The rates are struck annually as part of the annual budget and are set at different levels for different purposes. The Local Government Act empowers councils to levy rates up to 10 per cent per dollar of the UCV for the general rate and up to an additional five per cent for loan purposes.

However, most councils levy a total rate of 1.0 to 2.5 dollar cents. In some councils there have been considerable political objections to raising the level of rates beyond current levels. Consequently, in many cases the level of rates levied has not kept up with the rate of inflation and there has been at least one case of deficit budgeting in recent years. Agricultural lands within municipal boundaries are rated at a lower level compared to land under urban use. The UCV is based on the value of land in its original state, disregarding the nature or value of buildings and other improvements on the land. A town-planning scheme is a prerequisite for the valuation process. Reassessment of the UCV is undertaken every six years and is usually undertaken by the Valuation Unit of the Lands Department. The City Councils use private valuers for this exercise. There is growing concern among some councils that the UCV system of valuation does not result in an equitable sharing of the financial burden since sites with considerable building development and with land uses benefiting from various types of municipal services, are levied at the same rate as vacant or underdeveloped lands. There is a consensus that instead of switching entirely to a new system, possibly based on the Improved Capital Value (ICV) or on the Assessed Annual Value based on rental, Councils should choose between the different valuation systems, possibly one which would value properties in accordance with the level of use of the municipal services.

Arrears in town rates

A matter of increasing concern is the growing level of arrears in the collection of rates, which is sometimes more than the total rate levied for the year. These arrears have mounted to serious levels due to less than optimal collection of the annual rate and the low level of collection of the outstanding rate. The level of collection of the annual rate is usually 60-70 per cent and the collection of arrears 10-20 per cent. For example, in 1995 Sigatoka Town Council collected 70 per cent of the annual rate and only six per cent of the arrears, resulting in a collection level of 40 per cent of the rates due. Sigatoka Council's rate levy for 1997, based on 2.08 cents to the dollar of the UCV was $ 160,500 whereas the rate arrears at the end of December 1996 was $ 387,351.Similarly, Lautoka City Council's rate levy for 1997 was $ 2,097,920 and the arrears in rates was $ 2,938,517.

In order to collect the arrears of rates councils do have recourse to the law, which includes the charging of a 10 per cent interest on all outstanding rates and the power to repossess property for this purpose. In the Suva City Council the recovery of the arrears in payment of rates is the main function of the Council's legal staff. Many Councils believe that commercial concerns are that the rate of interest charged on overdue rates is less than the rate of interest charged for commercial loans. Some councils consider that the ability to register a caveat on property with arrears so as to ensure the payment of the arrears prior to any dealings on the land would strengthen their capacity to collect arrears. In some cases a large part of the arrears is due from unalienated native Land; these lands have a native Fijian land-owning unit but the land is not leased. In the case of Sigatoka Town Council, the arrears of rates on native land account for some 75 per cent of the total arrears. The situation is similar in the case of Lami town, lying on the western side of Suva City. The insufficient capacity for the development of native lands ripe for development is thus affecting the efficiency of certain councils. Not only are the arrears mounting on unalienated land, but the potential for rates generated from sites that could be developed on those unalienated lands and the rental income that could be generated for the native owners is not realized.

The pattern of expenditure by most councils indicates that the large bulk of annual expenditures is devoted to recurrent expenses such as personnel costs, maintenance of infrastructure and providing various services. A very limited amount is devoted to new capital works that usually include reconstruction or improvement of roads and drains. During 1996-1997 the Suva City Council constructed a commercial office complex that is to generate rent revenue. In Levuka Town the municipal boundaries were revised to exclude some native land due to the inability of the owners and residents to pay municipal rates. No council has been able to establish a financial reserve out of savings from annual revenues.

Accounts and audits

The annual accounts of each council are audited each year by the Auditor General of Fiji. The accounts as well as the report of the Auditor General are tabled in Parliament. The Auditor General sometimes contracts the audit function to major audit firms in the private sector. Councils do not have any involvement with the Public Accounts Committee. Councils are not subject to normal income or corporate tax but all services provided by the Councils are subject to Value Added Tax that is accrued by the government. At present the financial accounting of all municipalities except Lautoka City Council is undertaken on a cash basis but it is planned to change to the accrual system of accounting from 1998. Under this system the performance and financial position of councils will be measured in ways similar to those in the private sector, providing a better appreciation of the council's assets and liabilities, allowing the measurement of the full cost of providing goods and services and setting the framework for better internal control.

Financial review

The whole matter of municipal finances has been the subject of considerable discussion between the Ministry and the municipal councils. In 1993 the Minister appointed a Financial Review Committee for Municipalities to review the rating and other income powers and resources of local authorities. The Committee, headed by a senior financial manager, considered all the issues at length and presented a wide set of recommendations in October 1994. Some of the recommendations have been accepted and implemented; some of the more complex proposals and those requiring legislative changes are under active discussion between the Ministry and the Local Government Association.

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