New law to restrict firms

FOREIGNERS operating small to medium businesses will get a year’s notice to leave the country or make investment in larger businesses under a proposed new legislation. Trade, Commerce and Industry Minister Richard Maru said this when replying to a question in parliament on Tuesday from Northern Governor Gary Juffa who raised concern about foreigners owning “most restricted businesses” meant for locals. “The law will be ready before the end of this year,” Maru said. “We will empower our people to reclaim ownership of businesses such as “tucker-shops, trade stores and restaurants” and take control of our economy. About 90% of the businesses in the formal sector are now at the hands of foreigners while our fellow citizens own only 10%. We have lost our birth right.” Maru, who is the former managing director of the National Development Bank, said the government had allocated K130 million to reintroduce the bank’s Stret Pasin Stoa scheme. He said that the country did not have reserve business regulations. But under the national goals and directive principles such businesses were supposed to be owned by the indigenous people. The minister said a parliamentary bi-partisan committee and an indigenous business council would be established to conduct a comprehensive review all the businesses in the country. “If we don’t review it, we will be marginalised citizens and we won’t recover our birth right. “We must consider joint-venture arrangements with foreign investors. “If they don’t like this arrangement, they won’t be allowed to invest in the country. Economic giants like China have such arrangements,” Maru said. Source: The National, Thursday 14th February, 2013