The Board of NLTB held its bi-monthly meeting in Suva on 18th December 2003. Major issues of public interest that were discussed are listed below:

1. Income Performance

Income from the cane dependent regions of North/Western (Lautoka) and Northern (Labasa) continued to be below budget. This is directly related to the reduction in cane production. This is an issue that will receive the close attention of Management moving into 2004. Further research will be taken to further identify the cause of the problem as well as possible solutions.

It inevitably means that NLTB will have to redirect its attention on developments in non-cane areas e.g. Tourism, Land Development, Forestry, as well as the alternative agricultural products being considered as part of ADB's review of the sugar industry. In general the Board has requested Management to keep a close watch on costs.

2. Residential and Agricultural Subdivisions

A number of subdivisions that the Board has been working on recently have received publicity in the news. Details of some of these are as follows:

(i) Sakoca Stage 1, Tacirua - 80 lots are going to be developed commencing January 2004. This has meant the relocation of 150- 200 squatters on the site. Stage 2 will follow where those dislocated from Stage 1 can be accommodated.

(ii) Khalsa Road, Tacirua - Landowners have been dismantling squatter homes in this area. The Board is in no way involved in this exercise but has been present to ensure that the interests of its legal tenants are protected. Discussions are on going with Housing Authority to develop this site.

The Board will be looking at other potential developers if a deal is not concluded with the Housing Authority.

(iii) Sauniwaqa Subdivision, Nakasi - This is an agriculture subdivision and work on Stage 1 is progressing on schedule. Stages 2 & 3 will follow.

(iv) Narara & Vunidakua Subdivisions - Progress on these two sites have been slow however we expect more sales in future.

The NLTB as the biggest landlord in Fiji is doing its part in the alleviations of the squatter problem. There are other sites being developed outsidse of Suva. It is important to point out that the NLTB is the only authority that can issue leases on native land.

3. Head Office Building - Renovation works should be completed by the end of this year. The current work also include the installation of a stand-by generator and additional water storage tank facilities.

4. Strategic Corporate Plan 2004/2006 - The Board approved the revised Corporate Plan for the NLTB that will take over the next three years.

5. Vanua Development Corporation Limited - The Board approved the establishment of this investment Company with immediate effect. The Board also approved the appointment of the Directors for the Board:

1. Mr Keni Dakuidreketi, NLTB Board - Chairman
2. Mr Nalin Patel, G Lal & Co - Director
3. Mr Daniel Whippy, Carpenters Fiji Ltd - Director
4. Mr Isoa Kaloumaira, Fijian Trust Fund - Director
5. Mr Kalivati Bakani, NLTB GM - Director

The Company is expected to commence operations from early 2004, following Government's approval of an interest-free loan of $1m to finance the Company. Other current investments of NLTB will be transferred to the Company. Initially the NLTB will be the sole shareholder. It is envisaged that this will be opened up to landowners in future. The primary objective of the Company is to invest in viable, profitable ventures, generating additional revenue for the Board. Over time this may lead to a reduction in poundage increasing distributable funds to landowners.

6. Lako Mai Case - Almost one year to the day since NLTB re-entered this lease, we are on the verge of finalising a deal. This will see the finalisation of a new lease to a New Zealand group to recommence a tourism operation on this Malolo site. The new arrangement should be sealed in mid-January 2004.

7. We would like to extend our thanks to the press for your assistance in disseminating information about NLTB in 2003. We hope that this relationship extends into 2004.

Merry Christmas to you all and a Happy New Year! NLTB offices will be closed from today and re-open on Monday 5th January 2004.

K BAKANI
GENERAL MANAGER