Economic Development Zone concept added to Constitution
Constitutional (9th) amendment Act No. 7 of 2025 has been cleared for assent by the Supreme Court paving way for the Economic Development Zone concept to be added to the Constitution.
The bill was passed by majority of the house but during the April/ May parliament sitting but His Excellency, Nikenike Vurobaravu having considered that Item 1A of the Amendment is inconsistent with Article 5(1)(k) and Article 16(1) of the Constitution, referred it to the Supreme Court for its opinion, pursuant to his powers under Article 16(4) of the Constitution.
The Bill has eight (8) Items, but the President says he is only concerned with Items 1A which provides:
““1A Paragraph 5(1)(k)
Repeal the paragraph, substitute
(k) equal treatment under the law or administrative action, except that no law shall be inconsistent with this sub-paragraph in so far as it makes provision for the:
(i) Special benefit, welfare, protection or advancement of females, children and young persons, members of under privileged groups or inhabitants of less developed areas; and
(ii) Purpose of economic development zones.”
The grounds of the Referral are that:
“(a) Article 5(1)(k) provides for the fundamental rights of the most vulnerable groups of individuals – female, children, young persons and/or members of under-privileged groups or persons living in less developed areas.
“(b) The legislature has added a sub-paragraph to the existing paragraph (k). The intent of this phrase “purpose of economic development zones” is ambiguous.
“(c) The new category has no connection to the protection of the rights of the most vulnerable groups of people. It is a separate concept that can be regulated through existing legislation or new legislation and state tax policies.
“(d) Lastly, Item 1A of the Constitution (Ninth) (Amendment) Act No. 7 of 2025 is not supported by Article 16(1) of the Constitution which require Parliament to create laws that promote peace, order and good Government of Vanuatu.”
Chief Justice, Vincent Lunabek stated in the judgment he issued yesterday that the issue considered by the court is if the Bill [Item 1A] is inconsistent with Article 5(1)(k) and Article 16(1) of the Constitution.
After discussing relevant laws relating to the matter the Chief Justice rule that the answer the question “Is the Bill [Item 1A] inconsistent with Article 16(1) of the Constitution?’ is “in the negative, no”.
He added that the Referral Authority (RA) “conceded that the Bill does not appear to infringe the rights protected under Article 5 of the Constitution”.
“The R.A. conceded that subject to the Constitution, the Parliament of Vanuatu is given plenary powers by Article 16 (1) of the Constitution and in the exercise of those powers it may repeal or alter existing laws.
“The Item 1A of the Constitution (Ninth) Amendment Act No. 7 of 2025 (“the Bill”) is not inconsistent with Article 16 (1) of the Constitution.”
The amendment will become law once assented by the Head of State.
The government plans to create economic development zones to give exceptions and attracted investors to boost investment and economic development.
