Luganville Municipal Council (LMC) has responded to public concerns over expatriate-owned businesses operating in residential areas.

Town Clerk Reynold Surmat said the Council has taken note of these comments and will ensure that expat businesses are located only in areas approved for their operations.

He addressed ongoing work at the former Sarakata Youth Cooperative site, now owned by Mr. Chen Jinqiu. Mr. Surmat explained that the current activity there is limited to demolition of old buildings, and no business operations have been permitted at this stage.

“If there are plans for redevelopment, the owner must submit an application to the planning office. It will go through the Planning Committee and then to the full Council for approval,” Mr. Surmat said.

He emphasized that any decision to approve a business in a residential zone rests entirely with the Municipal Council.

For businesses already established in residential areas through past approvals, Mr. Surmat noted it would be unfair to reverse those decisions. However, moving forward, the Council will carefully assess any new applications from expatriate investors wishing to operate in residential zones.

The Council stressed that proper planning is essential to support the town’s growth while protecting local businesses from unfair competition.