8 July 1998

Outcomes of the 1998 South Pacific Forum Economic Ministers Meeting

The Assistant Treasurer, Senator Rod Kemp, said today that the Australian Government welcomed the outcomes of the 1998 Forum Economic Ministers Meeting (FEMM) held at Nadi, Fiji on 6-7 July 1998.

Senator Kemp said he was pleased with the outcomes of the FEMM in relation to implementing the Action Plan to promote good economic management that was agreed at the inaugural FEMM held in Cairns last July. Despite the economic difficulties being faced by a number of countries in the region as a result of the Asian financial crisis, Ministers re-committed themselves to further economic reform as the key to improving the climate for private investment in the region, fostering greater competitiveness and raising sustainable levels of growth.

Senator Kemp reported to the meeting that Australia continued to progress its own important reform agenda. He made particular mention of the introduction of world class legislation in the areas of financial system regulation and fiscal reporting and transparency since last years FEMM.

Senator Kemp emphasised that further economic reform in the region was strongly in Australias national interest and Australia remained committed to helping countries in their reform efforts.

Senator Kemp noted that Australia welcomed efforts at trade liberalisation by Pacific Island Countries and encouraged countries to continue these efforts. On the topic of achieving free trade amongst FEMM members, he noted this had been the subject of lengthy discussion and Ministers had agreed that more work needed to be done in developing a framework for further Ministerial consideration, including the issues of preferential/non preferential approaches and WTO consistency.

Senator Kemp announced at the FEMM Australian support to help Pacific Island Countries strengthen the efficiency and integrity of their customs departments (for further details, see Press Release Number 34). This fulfils a commitment made by Australia at last years FEMM and was welcomed by FEMM members.

Senator Kemp also welcomed FEMM support for Australias suggestion that FEMM members call on the IMF to supplement its technical assistance and training in the region. He noted that FEMM members may have the potential to gain significantly from the IMFs extensive experience in helping countries on practical improvements in the development and conduct of fiscal policy.

8 July 1998
Nadi, Fiji

Contact:
Penny Farnsworth,
Assistant Treasurers Office
61 2 6277 7360