Stimulating investment in pearl farming in ... - World Fish Center

• Legislative review is underway to provide a sound basis for commercialaquaculture.Why not grow pearls in Solomon Islands?• Pearls are a competitive product and the pay-back time on investment is likely tobe many years• Black-lip spat settlement is variable between years and sites and not alwaysstrong. Extensive spat collection sites and/or hatchery backup may be required• Populations of white-lip pearl oysters are currently insufficient to allowcommercially viable quotas of wild stock. A hatchery may be required• Land tenure in some parts of the Solomon Islands is confused and unreliable.Careful site selection and negotiation, with the support of the Ministry will berequired• Investors will need to set up and maintain harmonious relationships with localcommunities• In-country markets are currently weak but growing• The country has a record of political instability, although since the arrival ofRAMSI in July 2003 this has not been evident• National and (especially) provincial authorities have limited capacity to developand enforce regulations and agreements. Careful negotiation and support of theMinistry will be required• There is no strong history of aquaculture within the country; the only currentaquaculture being small scale culture of seaweed, giant clams and corals.These issues have been grouped and addressed under three subheadings: Security of investment (government stability, security of tenure, physical security) Taxation and incentives Labour4.1 Security of investment4.1.1 Governance and lawBoth National and Provincial Governments in Solomon Islands prioritise decentralisedinvestment, creation of rural jobs and income opportunities and increased exportearnings; pearl farming scores well all round and government interference in theinvestment process is unlikely. Solomon Islands government is not based around politicalparties, but around loose and dynamic groupings of independent politicians. While thereis much news of “political instability” in Solomon Islands, this largely concerns whoshould be Prime Minister and thus in charge of patronage, while external relations withChina/Taiwan and Australia are also a matter of debate. There are few discernibledifferences in policy among the various groupings and major shifts relating to foreigninvestment seem unlikely with changing governments.Establishing investments in Solomon Islands has become simpler in recent years. Undercurrent regulations, a company to be set up to farm pearls would need first to apply under16