Breakout 1_Henry Sanday

Report
Pacific Local Government Forum
Port Moresby, PNG
20-21 May 2014
Henry Sanday
Suva, Fiji
[email protected]
Outline of Presentation
•
•
•
•
Motivation
Power & Influence of Local Governments
Doing Business Rankings
Regulations for Starting a Business
Formal sector
Informal sector
• Key Issues
• Suggested Way Forward
Motivation
• Recurring Donor/Govt concern on difficulties with doing business
• PLGF 2010: LG economic strategies to provide for ”enabling
conducive business environments through effective planning,
regulation and service delivery”
• PIPSO (2012): “high level of bureaucracy in companies
registration and local government business licences”
• PIC Development Plans: commitments to create an enabling
national policy climate supportive of private sector-led growth
• World Bank: deteriorating DB regulatory rankings since 2006
• PROBLEM? Rising cost of domestic bureaucracy at LG level
Power & Influence of Local Governments
“The firestorm in the Middle East was sparked by a
single act of protest: Muhammad Bouazizi, a young
Tunisian fruit seller, set himself on fire when
municipal inspectors made it impossible for him to
eke out a modest living. He later died of his injuries.”
Source: The Economist, 26 February 2011, p.60
Doing Business Rankings, 2006 & 2014
Source: World Bank (2014) www.doingbusiness.org
2006 (of 175)
Fiji 29
Samoa 36
Tonga 46
PNG 53
Vanuatu 54
Palau 57
Kiribati 58
Sol Is 61
RMI 86
FSM 105
2014 (of 189)
Tonga 46
Samoa 61
Fiji 62
Vanuatu 74
Sol Is 97
Palau 100
PNG 113
RMI 114
Kiribati 122
FSM 156
Performance of PICs in Starting a Business, 2014
Source: World Bank Doing Business 2014, www.doingbusiness.org
Samoa
Ranking
2010/
2014
No. of
ProceDures
Days to
Start a
Business
Cost (%
income
/capita)
19/33
4
9
9.6
Authority
Days
Fees
Reforms
since
2006
Min of Revenue
4
WST500
+1: 2010
Business Licensing
(US$215)
Tonga
31/42
4
16
7.7
Min of Labour,
Comm&Industry
7
TOP120
(US$65)
+2: 2009
& 2012
RMI
36/56
5
17
12.8
Majuro LG
7
US$150-5k
Nil
Sol Is
111/82
7
9
47.5
Honiara City
Council
1-3
SB$2.7k
+1: 2012
NCDC
20
PNG
77/101
6
53
13.0
(US$360)
PGK50
Nil
(US$25)
FSM
81/106
7
16
144.4
Municipality
2
US$100
Nil
Vanuatu
110/126
8
35
46.2
Dept of Customs
& Inland Rev
1
VT20k-1m
+1: 2012
(US$8,500)
Palau
106/129
8
28
3.8
Revenue Dept &
Koror State
3-5
US$50
Nil
Fiji
107/147
11
59
23.1
Suva City
Council
7-14
FJ$500
-2: 2012 &
2013
Betio Town
Council
7-14
Kiribati
120/156
7
31
22.7
(US$270)
AU$600
(US$585)
Nil
Reforms to Starting a Business
Source: World Bank Doing Business 2014, www.doingbusiness.org
PIC
Year
Reform Details
Samoa
2010
Removed minimum capital requirement & simplified other
procedures
Tonga
2009
New license regulations reforms
2012
New electronic system at the registry
Sol Is
2012
New online registration process
Vanuatu
2012
Reduced time required for company registration at VFSC &
issued provisional licenses at the Dept. of Customs
Fiji
2012
Added requirement for company registration:
Obtain a Tax Identification Number
Added requirements for new/renewed Business Licence:
Obtain Fire & OHS compliance certificates
2013
Starting a Business, Suva, FIJI, 2014
(Source: Doing Business 2014 Report, www.doingbusiness.org)
Procedure
Authority
Days
Cost (FJ$)
1. Name reservation
Companies Office
8
$5.65
2. Due compliance
Private Lawyer
3
$1,200
3. Name registration*
Companies Office
21
$150-200
4. Tax registration*
FRCA Tax Office
7-14
FOC
5. Premises inspection*
FRCA Tax Office
1
FOC
6. Submit TIN (Tax ID No.)
Companies Office
1
FOC
7. Training levy
National Training Council
3
FOC
8. Fire safety**
National Fire Authority
7-14
$50-100
9. Occupational health & safety
Ministry of Labour
3
$90
10. Business licence
Suva City Council
7-14
300
11. Social security**
National Provident Fund
7-14
FOC
59
23.1% inc/capita
TOTAL (11 procedures)
* Simultaneous procedures
SCC Business Licence Requirements, 2014
Source: www.suvacity.org
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Completed application form: SCC, Victoria Parade
Company registration certificate: Companies Office, Victoria Parade
Investment Fiji certificate (if foreign-owned): Investment Fiji, Victoria Parade
Tax registration certificate: FRCA, Queen Elizabeth Drive, Nasese
Health licence (if applicable): Min. of Health, Toorak
Name, contacts & photos of Directors/Owners: Applicant
Landlord’s consent letter (if renting): Applicant & Landlord
Liquor licence (if applicable): Min. of Justice, Victoria Parade
Fire compliance certificate: National Fire Authority, Argo St, Walu Bay
Occupational health & safety certificate: Min. of Labour, Civic House (behind SCC)
Building completion certificate: SCC, Victoria Parade
Environment certificate (if applicable): Environment Dept, Raojibhai Patel St
Processing fees ($23.00): SCC, Victoria Parade
Applicants to submit completed form + 2 copies of each licence & certificate
Comparison of Licensing Categories & Fees
Suva City: 390 licence categories; fees FJD4.61 - FJD4,603.50
Lae City: 49 categories; 107 licences; fees PGK106 – PGK5,000 (Source: Lae Chamber)
Honiara City: 172 categories; fees SBD116 - SBD116,000 (Source: Honiara City Council)
SCC Hawkers Licence Requirements, 2014
Source: www.suvacity.org
APPLICATION FOR HAWKERS / STREET TRADERS PERMIT UNDER
THE SUVA AREA [HAWKERS AND STREET TRADERS] BY – LAW, 1997
Name of Applicant: Mr / Mrs / Miss: _____________________________________________
Fathers Name: _______________________________________________________________
Occupation of Applicant: _______________________________________________________
Parents Occupation: ___________________________________________________________
Residential Address H/ N ____________________________ Street / Road: ________________
Ward: ___________________________________________ (For Suva Residents)
City or Town: _____________________________________
Postal Address: _______________________________________________________________
Phone Number: ___________________________________
Last License Number: ______________________________Expiry Date: ___________________
Do you or any members of your family operate any stall in Suva Market, Curio And or Handicraft Centre or a street
trader’s pitch or any other Hawkers License
If yes, Please give details
________________________________________________________________________________
Type Of Goods/ Products to be sold : __________________________________________________
________________________________________________________________________________
WITNESS:
NAME: ______________________________________
ADDRESS: ____________________________________ PHONE CONTACT: ___________________
SIGNATURE: _________________________
{SIGNATURE OF APPLICANT}__________________________ {DATE}___________________
REQUIREMENTS
**2 Passport photo **2 copies of suppliers letter **2 copies of TIN Registration letter
**2 copies of HEALTH License **2 copies of consent Letter
FOR OFFICIAL USE ONLY
A. Business License Section
New Application / Renewal: _________________________________________________________________
Method of Business Operation: Street Trader: Hand cart or Table / Hawker: in box, Basket or tray, Carried or
borne by hawker in box, Bicycle, motor Vehicle, or other type of conveyance herein specified_____________
Location of Business Operation: ______________________________________________________________
B. Administration Department
Comments by Enforcement Officer: ___________________________________________________________
________________________________________________________________________________________
Comments By Admin Department (if applicable)_________________________________________________
________________________________________________________________________________________
Approved/Not Approved Director Admin/Operation:______________________________________________
C. Health Department Health requirements checked and remarks below:
________________________________________________________________________________________
Date: _____________ Designation: ___________________ Signature: _______________________________
Approved / Not Approved Director Health: _____________________________________________________
D. Engineering Department Requirements checked and remarks below:
________________________________________________________________________________________
Date: _____________ Designation: _______________ Signature: ___________________________________
Approved / Not Approved Director Engineers: ___________________________________________________
E. Finance Department
Remarks of Business License Officer: __________________________________________________________
______________________________________________________________________________
Approved / Not Approved
Director Finance: ____________________________________
Key Issues
• Capacity constraints & internal/external delays
• National vs. Local Government regulations
• DB rankings important but actual reforms to
improve regulatory services more important
• Excessive red tape at LG level
• LG-Regulator & LG-Private Sector disconnects
• New fees & regulations without consultation
• Non-availability /different forms of authorities
• Informal sector issues
Suggested Way Forward
1. LGs: to be empowered & adequately resourced
 One-stop information centres
 Standardised application forms
2. Regulatory reforms:
 Local/National Govt consistency
 Combined regulatory functions & extended times
3. Informal sector: need voice & empowerment
4. LG Dialogue with Regulators, Formal/Informal sectors
Partners: LGs, LGA, National Govts, CLGF Pacific & Donors
The high cost of doing business,
in both the formal and informal
sectors, is an area requiring
attention, not only at National
Government level but also at
LOCAL GOVERNMENT level.
Vinaka vakalevu

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