Solomon Govt Cancels Soltai Tuna $19M Debtff

Soltai, the country’s only canned tuna exporter, has been relieved of almost $19 million debt it owed the national Government.

The removal of Soltai’s debt follows news of Japan’s gift of two new fishing boats and Soltai’s signing of a major export deal with Tri Marine, a leading international tuna trading company. “Together these events mean Soltai’s future as Western Province’s premier exporter has never looked brighter,” caretaker Minister of Finance, Peter Boyers said.

At a signing ceremony at its headquarters in Noro, Western Province Premier Alex Lokopio, thanked the minister for his personal efforts to remove the debt. Healso noted the regional and national importance of Soltai. “Soltai is the gem of Solomon Islands exporting. It is one of too few large industries where Solomon Islanders own, process and add value to exports, rather than sending off commodities like raw fish or logs for someone else to make money from. This makes the survival and prosperity of Soltai vitally important for both Western Province and Solomon Islands as a whole,” the premier said.

Soltai chairman, Fred Seda also acknowledged the importance of the debt relief. “Soltai is internationally recognized as supplier of the world’s best tuna. Removing Soltai’s biggest liability will enable it to enhance its processing activities and increase its exports to Europe, Japan and the Pacific region. This will allow Soltai to realise its potential,” Mr Seda said.

The removal of Soltai’s debt is part of a Government program to review all Provincial Government and State Owned Enterprise (SOE) debts.

“Debt built up during the tensions by Provincial Governments and State Owned Enterprises have been crippling Solomon Islands. The Government recognises this and has been working to reduce this burden. In return the Government is demanding that any debt relief be matched by improvements in Government or SOE services to Solomon Islanders,” Mr. Boyers said.

“Everyone benefits from this debt repayment, Soltai’s future is assured, Soltai’s has undertaken binding commitments to make management and operational improvements it can now afford and the Western Province and national economies benefit,” the minister added.

The cancellation of the debt of Soltai by the government was part of the conditions mentioned by Tri-Marine International for starting a closer strategic cooperation with Soltai, in producing pre-cooked tuna loins, and catering canned tuna for the EU market. Solomon has duty free access to the EU.