Business & Tourism – Page 81 – Minivan News

Trade Ministry to require English or Dhivehi food labels by June

The Trade Ministry has said that all food items manufactured or imported to the Maldives from June for the purpose of trade should contain information about a product in Dhivehi or English on its packaging.

The new requirements will call for information concerning the ingredients used, the weight or measurements of the finished product, the country and date of origin, shelf-life and instructions on usage to be included on any goods being sold.

”The deadline set for labelling of food items already imported to the Maldives in accordance with the above requirements is 31 May 2011,” said the Trade Ministry in a press release.

The ministry said this announcement was made under Article 12 of Act number 1/96 (Consumer Protection Act) and any business found by officials of violating the ruling will see its owner fined Rf100,000 (US$7843).

”If an imported food item does not include the above information, it should be labelled in English or Dhivehi prior to the trading of the item in any inhabited island of Maldives,” the statement said.

“If any food items are not labelled according to these requirements after 1 June 2011, the owner of the business will be fined up to the amount of Rf100,000.”

The Trade Ministry was unable to comment further on the decision at the time of going to press.

Correction: An earlier headline for this story stated that labels would be required to be dual language. This has been clarified as English or Dhivehi.

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Mid-market appeal amongst 2011 tourism challenges

As a growing number of Asian markets like India begin flocking to the Maldives for their holiday escapes, the country’s tourism minister believes the government’s goal of providing more middle-market beds to “compliment” premium resort properties will boost the industry in the long run.

As the country continues to look at potential revamps for how it markets itself in the tourism market, Dr Mariyam Zulfa, Minister for Tourism, Arts and Culture, told Minivan News that the Maldives risked being seen as a destination with “too many” premium beds.

However, Zulfa said that in looking to diversify towards more mid-market tourism, the issue of replacing the country’s current “Sunny Side of Life” ad slogan remained under industry consultation – including over whether it should be changed at all.

Zulfa’s comments were made as new findings published by the Pacific Asia Travel Association (PATA) and the Nielsen Company found the Maldives was among several destinations like China, Indonesia and Bangladesh to be attracting increasing interest from Indian travellers.

“The diversification in destinations indicates a greater sense of adventurism and discovery that should be heartening for tourism as a whole, and a clear symptom of a confident Indian consumer mimicking their country’s confidence and prominence,” Neilson Company Executive Director Surekha Poddar stated in the report.

“The Indian traveller is set to become a prized possession as potential spending power and disposition to travel to new countries increases.”

Zulfa said that with income levels in nations like China and India growing in general on a daily basis, the Maldives was beginning to see “exponential growth” in the number of visitors from both of these markets.

“The government has introduced a mid-market policy focusing on three to four star resorts,” she said. “These are being introduced to complement the premium beds we have here.”

Although not willing to speculate if these tourism developments were directly related, Zulfa said that more middle market properties was seen as a move that would be cater to a changing customer demographic.

“Premium beds alone are not suitable for visitors from the South of Asia. We need to look at how to reach out to them,” she said. “These tourists have very different vacation habits to more established markets like Europe.”

Slogan talks

Zulfa claimed that opinion was currently divided on the direction to take on marketing the Maldives to travellers around the world, particularly the merits of changing “the sunny side of life” slogan – one that has been in service for eleven years.

“We will be having informal discussions whilst we will be at the Internationale Tourismus Börse (ITB) – a tourism trade show being held between March 9-13 in Berlin,” she said. “Right now, we have two levels of feedback, one of which is that it [still] works.”

Zulfa added that if a decision was taken to keep the slogan, it would perhaps need to be reintegrated or redesigned with a “more modern” aesthetic.

“There is another reasoning that suggests that although the wording is OK, it is too general,” she said. “The slogan is now 11 years old and perhaps to fill the premium beds we have, a new slogan may be needed to reinvigorate the market. This will be discussed during consultations at the ITB.”

Zulfa said that work was nonetheless continuing on a Maldivian marketing strategy despite uncertainty on the final product.

Mohamed ‘Sim’ Ibrahim, Secretary General of the Maldives Association of Tourism Industry (MATI), said that MATI did not itself have an opinion on the final outcome of any possible slogan revamp. However, Ibrahim said that MATI hoped to see greater study and research into what the industry itself would prefer to see in terms of branding and marketing.

“We don’t think enough is being done, [in terms of studying the slogan issue],” he said. “We would like to see more cooperation from resorts, airlines, travel companies and other major stakeholders in the Maldives tourism industry.”

From the outset, 2011 is proving to be a year of change for Maldivian tourism, with the implementation of Tourism Goods and Services Tax (GST) on January 1 that placed an additional charge of 3.5 percent on a host of services supplied by the travel industry.

Mohamed said that although he believed that adoption of the GST among service operators had gone “smoothly”, MATI held “serious issues” with the tax related to payments and other technical issues.

The MATI secretary general said he was unable to provide more details about the concerns at present, but added that the association was looking to hold a meeting with resort chains over the issues.

Zulfa claimed that the implementation of the GST had so far gone well for the industry, with no major complaints received concerning the charges.

“Most operators in the tourism industry agree that the 3.5 percent GST is a very reasonable amount to pay,” she said.

“This is a way that more people can equitably benefit from tourism.”

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Allegations of STO’s blackmarket oil deals with Burma “politically motivated”: Gayoom

Former President Maumoon Abdul Gayoom has lashed out at comments made by the Presidential Commission yesterday that top-level officials from the former administration were involved in blackmarket oil deals with the Burmese military junta.

The allegations were first published in India’s The Week magazine on Friday. In the article, CNN-IBN Chief National Correspondent Sumon K Chakrabarti described Gayoom’s half brother and former STO Chairman Abdulla Yameen as “the kingpin” of a scheme to buy subsidised oil through the State Trading Organisation’s branch in Singapore and sell it on through an entity called ‘Mocom Trading’ to the Burmese military junta, at a black market premium.

The article, which has since been published on the magazine’s website, also claimed that Singaporean police were investigating the incidence of shipping fraud linked to STO Singapore. It drew heavily from a draft report from forensic accountancy firm Grant Thorton, commissioned by the Maldives government to investigate financial records on three hard drives pertaining to STO Singapore’s operations.

Gayoom has claimed that the allegations by the Presidential Commission were politically motivated. Newspaper Haveeru reported Gayoom as distancing himself from the STO, quoting the former President as saying that “I [had] no connections with the STO when I was the president and after that.

“STO has a board and a Chairman that oversee all the operations of the company. I never [got] involved in the matters of STO. The company will reveal its annual financial report at its General Meeting every year and discuss on the matters [raised in the report],” Haveeru reported Gayoom as saying.

“The commission is trying to tarnish my reputation because of the support given to me by the residents of the islands and the success DRP achieved in the local council election,” he reportedly added.

Yameen dismissed the allegations as “absolute rubbish” following the publication of Chakrabarti’s original story in The Week.

He acknowledged using the STO to send funds to his children in Singapore during his time as chairman, but denied doing so money following his departure from the organisation.

“After I left, I did not do it. In fact I did not do it 3 to4 years before leaving the STO. I used telegraphic transfer,” he told Minivan News.

Yameen also denied being under investigation by the Singaporean police.

Asked to confirm whether the STO Singapore had been supplying fuel to Myanmar during his time as chair of the board, “it could have been – Myanmar, Vietnam, the STO is an entrepreneurial trade organisation. It trades [commodities like] oil, cement, sugar, rice to places in need. It’s perfectly legitimate. “

In a subsequent interview with VTV’s ‘Fas Manzaru’ program, Yameen acknowledged flying to Burma during a period when the STO faced a rice shortage, “a very long time ago.” He had not visited in the past 16 years, he said.

“Perhaps this government is afraid that with my supposed Myanmar military links, I might bring over weapons from that country and overthrow this [Maldivian] government. But I have to say that those military officials in the Burmese government are ones I have never met. I don’t even know them,” Yameen told VTV.

He also announced that he was “ready to offer anyone 90 percent” of the alleged US$800 million in laundered money cited by The Week article, “if they locate it for me.”

“I only want 10 percent. If I get US$800 million now, 10 percent of that will suffice for me. Even if I get around US$80 million dollars, it will be enough for me,” Yameen said.

“Therefore this time for anyone who helps locate this [money], I am ready to hand over 90 percent of all that into the finder’s name.”

Yameen called on police to investigate the matter alongside previous allegations in the Indian press that President Nasheed had consumed alcohol.

“I welcome investigation. But if investigations are being done, then it should also be investigated when an Indian newspaper publishes such defamatory material against the President,” Yameen said.

The Presidential Commission has meanwhile stated that details of the alleged racketeering would be disclosed on conclusion of the investigation, in collaboration “with international parties”.

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Plane as day: Mega takes off on back of Chinese tourism boom

The Maldives’ newest international airline, Mega Global Maldives, has just completed its maiden international flight between Hong Kong and Gan, delivering over 230 passengers to resorts in the southern atolls.

The charter flight was the first of what Mega intends to become a weekly service, delivering thousands of tourists a month under an arrangement between the airline, participating resorts, and Chinese tour operators.

Minivan News spoke to Mega’s CEO George Weinmann, a former rocket and satellite engineer with aerospace giant Boeing, as he stood on the beach of Herathera resort surrounded by “235 very happy guests about to go sailing – they are already talking about when they’re coming back.”

Weinmann has lived in China for seven years and believes that the potential of the Chinese market in the Maldives is being underestimated by an industry focused on its traditional, European-centric market.

“My first experience of the Maldives was on honeymoon with my wife, who is Chinese,” he said. “At the time I was looking for an investment opportunity and saw a big market that was developing fast – it has since exceeded our expectations.

“The Chinese market is deep and very rich. We believe there are further improvements to how the market is targeted and served.”

In 2010 the number of arrivals from China eclipsed arrivals from all other destinations, for the first time in the Maldives’ history. The influx of Chinese guests at resorts has been credited with partially cushioning the industry from the economic crisis in Europe, particularly during the warmer off-season when many sun-seeking Europeans have the option of travelling to closer countries such as Greece and Spain.

Weinmann believes that many resorts haven’t given the Chinese market the attention it requires to develop, in the mistaken belief that the boom in Chinese visitors is a temporary anomaly – a belief perhaps stemming from the trend among many Chinese guests to stay 2-3 days, while their European counterparts log an average of 10-14 days per visit.

“I don’t agree with that idea at all,” says Weinmann. “It’s a little like going back to the 1950s and saying that while the US is making a resurgence, Europe is still the place to be.”

The Chinese, he said, had become one of the biggest-spending tourism demographics in destinations such as France, with a per-person spend “substantially higher that most other [nationalities] visiting the EU. That was not a fluke – it was developed over five years.”

He noted that a colleague in China “has booked 60,000 airline seats to the EU on the basis of that demand from tour operators, and is booking more because of the demand.”

In the Maldives, Weinmann predicts eventual demand for an additional 20 resorts catering to the Chinese market, open all year round. Unlike the European sector, he explains, the Chinese market “doesn’t drop in volume. The weakest months for China are March and April, but that’s the start of the honeymoon season in Korea.”

Mega was unlikely to see competition from the much larger Chinese and Hong Kong carriers, Weinmann suggests, because they still regarded the Maldives as a niche market.

“There currently no flights from Asia that arrive in the Maldives in day time, which is not convenient for either the resorts or the seaplane operators,” he said. “We are seeing travel agents who are not satisfied with the schedules.”

Mega’s initial focus on charter flights in conjunction with tour operators and resorts not only ensures an early steady steam of income for the fledgling airline, but allows development of the product for Chinese visitors. Weinmann explains: “The benefit for us is that as a Maldivian airline we can start the whole resort experience with clients the moment they step on the plane. Tour operators like that.”

The collaboration with resorts and the early focus on the south of the Maldives, had meant a great deal of early support for the airline from resorts such as Shangri La and Herathera, Weinmann says.

“The southern resorts are very keen to have us, and have put together a very attractive package [for us]. We flew some Chinese guest relations officers with us to Herathera, several of our senior management speak Chinese, and the resorts are hiring some people from Thailand who have experience with the language.”

Eventually the airline hopes to operate a scheduled service, and potentially a domestic connection between Male’ and Gan to connect the Gan-Hong Kong route to more of the Maldives “as the market develops.”

The potential for opening other domestic routes was limited by the 264 seats on the company’s 767, but Weinmann says he sees potential to develop routes between the Maldives, Korea, Thailand and India, the latter for business travel as well as tourism – “the Indian [tourism] market is about two years behind China”, he suggests.

Weinmann says Mega has learned from the experiences of Air Maldives, the national flag carrier that declared bankruptcy in 2000 after ambitious over-expansion into international routes.

“I’m very aware of Air Maldives, and although didn’t experience it myself I have from the point of view of some of our staff who did,” he says. “A new airline has to be careful of its own success – if you get the market right it can be tempting to expand quickly. But each plane is a huge one-time cost, and several planes in a row can quickly deplete your financial resources. Then if you realise you haven’t got the market quite right, your expenses are very high and you have to hope you have very deep pockets. We have been very careful about how quickly we have developed.”

Setting up a new airline is not without obstacles, but Weinmann says Mega has been able to overcome those placed in its way so far. As a local carrier it was, he says, gratifying to see bodies such as the Civil Aviation Authority show “enthusiasm for us to succeed.”

Tourism Minister Dr Mariyam Zulfa said the resort industry was “on the right track” in adapting to rising demand from China, and noted that the Ministry had issued a circular to resorts requesting they provided safely regulations to Chinese guests in Mandarin – tourist fatalities last year were disproportionately Chinese nationals, mostly in snorkeling-related accidents.

There remained, Zulfa said, not enough mid-market beds, which was why the government was pushing for small-to-medium enterprise to develop 3-4 star hotels to compliment the luxury resorts that already existed in the country – a concept Weinmann agrees with: “the Maldives’ geography makes it unique, because the one-resort one-island concept means it can naturally segment the market based on demand.”

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“Efficiency” at heart of business concerns for expatriate insurance plan: MNCCI

The Maldives National Chamber of Commerce and Industry (MNCCI) has called for greater efficiency in how the country’s labour and immigration officials deal with processing expatriate workers before imposing measures requiring employers to provide insurance packages for foreign staff upon arrival.

Immigration Controller Ilyas Hussein Ibrahim told Haveeru this week that although new applicants for work visas in the Maldives would now be required to have an insurance policy provided to them, a similar requirement for existing expatriate workers expected to come into place in March had been postponed.

Ahmed Adheeb Abdul Gafoor, Treasurer of the MNCCI, has said that although the business organisation does not hold any objections to insuring employees, it was hoping for more consistent and efficient processing of paper work for expatriate workers before implementing a system of mandatory insurance.

Notable issues of concern selected by the MNCCI’s Treasurer included difficulties in acquiring insurance for expatriate workers before they had arrived within the Maldives, the time frame afforded to industry to implement the changes and the actual relationships between the government and insurance providers over the new requirements.

“The current levels of bureaucracy involved with dealing with immigration and labour authorities for expatriates is very inefficient,” he said. “Under the insurance plans, there is no defining of expatriates coming here, so we are having to follow the same procedure for every single foreign worker at the moment.

Adheeb told Minivan News that there has been “concern”, particularly in “high turnover employment areas” such as construction, about the exact requirements for each type of employee bought into the country.

“High turnover [of staff] is a big problem, particularly in the case of small construction projects – of about three months,” he said. “It may be preferable to bring workers out for six months instead of the three required and whenever one expatriate returns home, we have to go through the same insurance process for each employee.

Adheeb claimed that protecting expatriates and keeping skilled workers within the Maldives was very important for business development.

“We have to accept that the Maldives does not have enough local labour force to meet the country’s requirements,” he said. “We need to keep hold of skilled expatriates.”

When asked whether measures such as insurance may bring greater accountability for businesses requiring expatriate labour, Adheeb claimed that a number of construction groups already had their own insurance plans in place and added that he was in favour of insurance programmes over all.

“We have some concerns over this move; for starters, we would like to see the current procedures in dealing with bureaucracy made more efficient,” he said. “I would like to see faster service, some companies are fast tracked [through the application process] but this is not the same for all businesses.”

A spokesperson for the Department of Immigration and Emmigration was unable to respond to calls from Minivan News at the time of going to press.

However, Immigration Controller Ibrahim told Haveeru this week that policies for determining whether suitable insurance policies and enforcing the new insurance rules were in place had not been decided upon, but he was confident employers were getting to grips with the measures.

“Because of the announcement, many people have begun insuring. It is something that must be done in the future. But right now only the new foreign workers are required to insure,” he told the paper.

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Mahloof cautious, but happy, over civil service salary reinstatement

Newly reinstated civil service salary rates that revoke wage cuts introduced back in 2009 should be affordable under the latest state budget, even amidst pressure to reduce the nation’s spending, Dhivehi Rayyithunge Party (DRP) MP Ahmed Mahloof has claimed.

Mahloof, who has been outspoken over some of the amendments passed into the 2011 state budget, said that he was “very happy” that the government had moved to revoke a 15 per cent reduction in civil servant salaries that were approved as part of the final budget within parliament.

The MP said he believed that the additional levels of expenditure could be well managed within the budget, especially if the government cut down on the number of political appointees it employed.

“We have been managing these wage levels for a long time, I don’t see there should be any difficulty in maintaining them,” Mahloof said. “However, the government could cut the number of appointees to reduce the budget further.”

Following the decision to reinstate the wages of civil servants and political appointees to similar level before respective cuts of 15 per cent and 20 per cent were made back in 2009, the government estimates that expected revenue for the year will ensure the salaries are sustainable.

The government has come under considerable pressure from the International Monetary Fund (IMF) to reduce the country’s budgetary deficit, which it has aimed to cut to about 16 per cent in its finance plans for 2011 from a figure of 26.5 per cent announced by President Mohamed Nasheed in November.

However, Mahloof told Minivan News that he was “deeply concerned” about how long the government would consider retaining the wages for after upcoming council elections had been concluded in February.

“I am really happy about the salaries reinstatement, but I see this as a political stunt,” he said. “The president has increased the salaries of the civil service before; the last time ahead of parliamentary elections. We will have to see if they remain in place and for how long.”

The passing of the budget has not been without controversy over the last week, leading to protests involving NGOs, political activists and civil service workers on Male’s streets over proposed amendments to increase the wages and privileges afforded to MPs.

According to Mahloof, the civil servant wage rises had been the result of recommendations forwarded by opposition members.

The DRP MP claimed he would now be turning his attention to addressing concerns over the affordability of possible rises in the salary of his peers in the Majlis that have proved unpopular amongst demonstrators outside of parliament last week.

“Amendments have also be sent concerning the proposed Rf20,000 wage increases,” added Mahloof.

Despite Mahloof’s concerns over the length of government commitment to the salary levels, acting Finance Minister Mahmood Razee said the reinstatement of civil service wages had been an important commitment for government that had not previously been affordable.

“We have had to match our expenditure to revenue,” the acting Finance Minister said. “We are working with the civil service closely on our plans.”

However, in considering other budget recommendations passed by parliamentary majority, such as increasing the salaries and privileges afforded to MPs, Razee said that they would “certainly have to be reviewed” in terms of affordability within the current projected budget of about Rf12.6bn.

“I will be saying the same to the president,” he added.

Razee had previously said that presidential approval would still be required for any amendments to be passed relating to salaries within the Majlis.

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UNDP hands over pearl culture project to Thulhaidhoo community

A joint venture to develop pearl culture in Thulhaidhoo, Baa Atoll, established by the United Nations Development Programme (UNDP) and the Ministry of Fisheries and Agriculture has been handed over to the island’s co-operative society.

The pearl culture project was first launched in 2008 after Thulhaidhoo’s islanders began expressing interest in the developments and the possible commercial opportunities available through such a scheme.

Dr Aiminath Jameel, acting Minister for Fisheries and Agriculture, joined senior officials of the UNDP in a special ceremony to hand over the project to local islanders.

During the ceremony, certificates were awarded to islanders who had completed training workshops concerning pearl culture management.

”We are surrounded by water, so we can benefit and improve our lives if we learn more about the sea,” said Dr Aiminath. ”I’m very glad that islanders of Thulhaidhoo have took the initiative and co-operated in the pearl culture project.”

Dr Aiminath noted that Thulhaidhoo was an island that has always been famous for handicraft.

”My advice to those who achieved the certificates is to make good use of what they learnt instead of keeping it filed,” she said, while praising the Marine Research Centre of the Fisheries Ministry and the UNDP for their work on the project.

Chairperson of Thulhaidhoo co-operative society, Mohamed Ali Manik, said the group would aim to deliver the knowledge of pearl culture to the next generation and urged all the islanders to take part in the project.

”This co-operative society is aimed to all the islanders,” Manik said. ”I urge everyone, especially young people to take part in the pearl culture society.”

After the ceremony, jewelry such as necklaces and rings made of pearl sourced from around Thulhaadhoo were viewed as a demonstration of the potential opportunities available from the project.

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New Year brings new tourism tax to Maldives

The New Year has potentially ushered in a new era for the Maldives’ lucrative holiday market as a Tourism Goods and Services Tax today comes into effect placing an additional charge of 3.5 per cent on a host of services supplied by the country’s travel industry.

The new tax is set to be levied on a wide of services; from room rates at resorts, guest houses and liveaboards, to tourist vessel hire and the cost of food and drink, diving schools and domestic transportation.

Speaking this week to the Agence France-Presse (AFP) service, acting Finance Minister Mahmood Razee claimed that the implementation of the new tax represented a government strategy aiming to roll out more direct national funding from Maldivian industries, where operators like resort owners have not previously been required to pay profit or income tax.

“It will gradually be extended to other [business] sectors… to reduce relying on indirect taxes, especially import duties that hurt the poor,” Razee told the AFP.

Mohamed Maleeh Jamal, Secretary General for the Maldives Association of Travel Agents and Tour operators (MATATO), said that as an organisation, it was not against a service tax within the travel market, yet he claimed that concerns existed how the funds would be implemented.

“We as MATATO have concern over the negative impact there may be from the tax on local travel agents in the Maldives, which unlike other travel markets, has no law protecting [domestic] operators,” he told Minivan News. “This can make it hard to be competitive when foreign operators are also working directly with resorts and the industry to obtain strong value.”

Pointing to key travel markets like the UK that have themselves last year instigated amended departure taxes such as an Air Passenger Duty (APD), Jamal said he believed there was international industry concern over the “Maldives becoming a more expensive destination”. He claimd that the taxation developments could hamper the country’s competitiveness against other holiday hotspots.

However, the MATATO Secretary General said that the association did not have issues with the actual figure of 3.5 per cent being added to services in itself and remained positive that MPs would still be able to help try and alleviate some industry concerns over the new tax rates.

“We are hoping we can discuss measures with parliament that will help protect local travel agents,” he said.

With the new rates in place as of today, Jamal said that the industry had already begun working with tax authorities to ensure its members and the wider travel industry understood how to deal with the new system.

“Some of our [travel] agencies have not quite been clear on how the tax works,” he said. “It takes time to become familiarised with such a new system.”

In looking back, 2010 had be seen as providing a positive turnaround in visitor figures.

Official statistics from the Ministry of Tourism, Arts and Culture released in November reported year-on-year visitor growth of 21.8 for the first ten months of the year.

Between January to October 2010, the official ministry figures showed that 63.3 percent of visitors to the Maldives came from European markets. Asia Pacific territories contributed 32.3 percent of overall travel demand to the country during the same period.

Publication of the figures followed a period of turbulence for the tourism industry towards the end of the year generated by media coverage of a video recording of a ‘false wedding’ conducted at the Vilu Reef Resort and Spa. Footage leaked onto video sharing sites like Youtube depicted some staff members mocking a Swiss couple in the local dialect of Dhivehi during a vow renewal ceremony being leaked online. The incident garnered both local and international coverage.

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Controversial salary amendments not yet approved, say MPs

MPs “have not taken pay increases”, Deputy Speaker of Parliament Ahmed Nazim has said, despite the Rf20,000 wage hikes for MPs included in the 2011 state budget approved yesterday.

Deputy Speaker Nazim said the proposed wage hikes must receive additional approval by the Majlis before they can take effect.

Despite “cross party support” for budgetary amendments allowing additional MP privileges like salary increases, he said, no wage hikes have actually been approved. Nazim anticipates that the proposals, considered a possible means of improving parliament’s “productivity”, would come under review in March after the recess.

The claims were made at the first session of the Mjalis since it passed the 2011 state budget. It opened to chants of “We need cash” from protesters gathered near the parliament building, angry over the salary amendments passed as part of a budget said to be aimed at cost-cutting.

However, acting Finance Minister Mahmood Razee said he believed the budget had been passed relatively well. He added that any amendments such as those suggested for MPs’ salaries – passed yesterday by a majority of members – would still ultimately require presidential approval.

In addition, the acting Finance Minister said, all amendments would ideally fulfil the commitment to keep the budget at about Rf12.37bn for the year ahead.

These commitments are also focused on trying to ensure a budget deficit of around 16 per cent, which has been sought in an attempt to appease institutions such as the International Monetary Fund (IMF), which suspended finance to the country earlier this year over concerns about it living beyond its means.

However, Nazim, who also serves as Deputy Leader of the opposition People’s Alliance (PA) party, rebuked the optimism shown by the acting finance Minister. He added that concerns remained among some “opposition and independent MPs” over a lack of detail in the budget, such as in the funding of enterprises like the Maldives National Broadcasting Corporation (MNBC).

Addressing the topic of MPs salaries outlined under amendments to parliamentary privileges, Nazim claimed the salaries were not solely a “money issue”, but were also part of an attempt to test methods for improved “productivity” among the Majlis.

“The amendments were not to do with spending cuts, the salary structures have been amended as part of measures to increase productivity among members, which will be reviewed by parliament’s Public Accounts Committee,” he said. “The figure of Rf20,000 is an upper ceiling level that parliament will look to see whether it can be increased, it doesn’t mean anything has been passed.”

“We are not taking a pay rise,” Nazim added.

In looking at the wider budget, Nazim stressed that there remained concerns among some MPs over a number of proposed amendments to the budget, such as those concerning MNBC, that had been dismissed by Parliamentary speaker Abdullah Shahid as “not in the budget”.

Citing the 2010 budget that he claimed had not outlined funding for the MNBC, Nazim said the government still provided a total of Rf54m for monthly salaries to the broadcaster, which had not been accounted for once again in the latest state finances.

The Deputy Speaker also noted that the state-owned Maldives National Shipping Limited, which had required Rf84 million from the government’s contingency budget in 2009 had also required another Rf48 million so far this year.

In light of the recent privatisation agreement with Indian infrastructure group GMR to manage Male’ International Airport, Nazim asked why the government had “not sold off” the shipping enterprise to aid finances.

“The government refused to give this contingency budget out before it was brought to the Majlis,” he said. “They have not cooperated with parliament. Though there have been improvements since the acting [Finance] Minister came in, we still believe there has been systematic abuse of the system.”

From a government perspective, Acting Finance Minister Razee claimed that he believed budget discussions had “actually gone quite well”.

He said the approved budget was within the Rf12.37bn first projected earlier this month, but amendments would require it to “take some funds from existing programmes” so they could be invested elsewhere.

Razee said he remained hopeful that the funding would not significantly impact the proposed target for an annual budget deficit of 16 per cent.

However, he conceded that possible amendments to programmes within the budget could yet “be more significant” in terms of their financial impact than anticipated.

When asked if passing proposed amendments to parliamentary privileges such as increased wages for MPs was a failure for a budget aimed at cost reduction, Razee said that the proposals were not part of the government’s original plan.

“These [privileges] were amendments to existing bills,” he said. “Obviously, these amendments that have been provided would have to be approved by the president, who would decide if there was enough revenue to support such an increase.”

Razee added that he did not have the figures on the exact numbers of MPs and party members who had voted to approve the amendments that included the privileges, though he confirmed they “had been passed by the majority”.

“I can’t say why people voted for it, the amendments had included allowances to independent institutions so perhaps they were confused,” he claimed.

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