Fiji Water has closed its operations in the South Pacific country that gives the brand its name and its product, saying that it was being singled out by the military government for a massive tax increase. This came as no surprise to those who had been following developments on the island.
Last week, in its annual budget, the Fiji government quietly announced changes to the Water Resource Tax Promulgation that was first introduced in 2009 for the extraction of ground water for the purpose of bottling for human consumption. The prelude to the budget announcement was the expulsion of Fiji Water’s local chief executive, David Roth. This triggered the resignation of Fiji’s immigration minister and de facto Prime Minister, Ratu Epeli Ganilau – who had refused to sign the order deporting the American.
Speaking from China, Fiji’s military ruler Commodore Frank Bainimarama said David Roth “had been acting in a manner prejudicial to good governance and public order by interfering in the domestic affairs and governance of Fiji.”
As the tax hike was confirmed, American owners Stewart and Lynda Rae Resnick promptly laid off the 400 strong workforce and closed the plant.
The company has always maintained that it tries to stay out of the island nation’s often violent politics, though as Anna Lenzer’s 2009 investigation for Mother Jones magazine makes clear, that’s essentially impossible in a place like Fiji.
In the past, Lynda Resnick has described Fiji as having “a rogue government that changes every five years with a new coup. Sometimes it’s very hard to be in Fiji, but we do it.”
This is not the first time Fiji Water has closed its plant. In 2008, it shut down operations threatening the employment of 700 people. That action prompted the interim government to drop a planned $0.20 per litre tax.
But this time? Fiji Water can only come from Fiji, so what next?
For years, Fiji Water has been hitting the headlines. Often criticised for its air-miles and frequently cited as the furthest travelling all of the luxury water brands, Fiji has staunchly defended its carbon-negative environmental credentials and its positive contribution to the local economy. And it is the water of the stars, sipped by Obama and proudly carried by the likes of Paris Hilton, Celine Dion and Mary J Blige.
An online source quoted Fiji Water spokeswoman Amber Eyerly as saying: “Fiji Water is still assessing where it will source water after the plant closure”.
Fiji, maybe?
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