Prime Minister Hon. Jotham Napat and Deputy Prime Minister Hon. Johnny Koanapo
In Accordance with the Key Decisions of the Council of Ministers
- Central Business District (CBD) Update
Deputy Prime Minister Hon. Johnny Koanapo highlighted the impact on employment and businesses due to the challenges facing the CBD. He emphasized that while the CBD area may be small, it contributes significantly to the country’s economy. Currently, over 800 people have lost their jobs as a result of the closure of the CBD. This figure is based on reports from both the government and private sector, but the actual number may be higher. The closure is particularly affecting the Accommodation Sector, Retail Sector, and Small Businesses such as Mama Handicraft. In response, the Vanuatu Government has put in place several measures to support demolition efforts and the recovery of the CBD.
a) Government Allocated Funds for Demolition:
Hon. Koanapo announced that the government has allocated 312,000,000 Vatu to address the demolition of unsafe buildings within the CBD area. While it is the responsibility of private sector owners to demolish their buildings, the government will intervene if needed, providing assistance with the cost of demolition. However, this support will not be provided as free money; the government’s involvement will be to ensure safe and rapid demolition to facilitate the full restoration of the CBD.
b) Wage Subsidy Allocation:
An additional 561,000,000 Vatu has been allocated to the wage subsidy. Hon. Koanapo stressed that this is not a new initiative, as the country saw a similar approach during the COVID period. He warned businesses that received this money must ensure it is passed on to their employees as intended. If businesses fail to comply, the government will take disciplinary action. The wage subsidy will be administered for a period of 3 months.
c) Support for Small and Medium Businesses:
In support of micro-businesses affected by the earthquake, the government has allocated 62,400,000 Vatu for the Small Medium Business Grant. Reports indicate that approximately 1,000 small businesses have been impacted, and this grant aims to help them recover.
d) Earthquake Banking Facility:
To further assist businesses, the government is preparing to offer a 1,000,000,000 Vatu loan guarantee. This facility will help businesses affected by the recent earthquake and will involve negotiations with banks that are willing to support these businesses.
e) VAT Exemptions for Construction Materials:
The government is considering providing 100,000,000 Vatu in VAT exemptions on construction materials to support recovery efforts in the construction sector.
f) School Fee Subsidy:
There is also the possibility of a 197,400,000 Vatu subsidy to support school fees for both private and vocational schools.
g) Vanuatu Tourism Organization Marketing Grant:
A total of 100,000,000 Vatu has been allocated for the Vanuatu Tourism Organization’s marketing grant. This fund is specifically aimed at boosting tourism confidence, particularly in Port Vila.
Total Government Allocation:
In total, the government has allocated 2,262,800,000 Vatu to support these initiatives. These funds are ready to be rolled out to assist businesses, individuals, and sectors affected by recent events.
(All allocated amounts are subject to specific terms and conditions to ensure appropriate expenditure of public funds, as endorsed by the Council of Ministers.)
Hon. Koanapo further noted that an administrative cost of 30,000,000 Vatu has been allocated for overseeing the implementation and management of the stimulus package.
Hon. Koanapo reassured businesses not to panic, emphasizing that the Council of Ministers has finalized the processes and budgets. Prime Minister Hon. Jotham Napat has already written to the Vanuatu Parliament, requesting the Appropriation Bill be debated and approved before 31st March 2025.
