“TOTAL dividends amounting to R188 million have been received from parastatal organisations that have exceeded expectations.
Government companies such as Seypec (Seychelles Petroleum Company) and Nouvobanq did exceedingly well in terms of profits made for the year, thereby giving government more dividends.
Dividends from the Seychelles Marketing Board (SMB) from past accumulated profits were also received.”
The Minister for Finance, Danny Faure, said this when he delivered Budget 2007 before the National Assembly on Tuesday.
“Whilst government is giving subventions to some parastatals, we have to recognize those that require no funding from government at all; the likes of Seypec, Air Seychelles, Nouvobanq, Seychelles Savings Bank, Development Bank and SMB.”
“Three parastatals that I would like to say a few words on are SMB, Air Seychelles and Seypec.
“Mr Speaker, I have only last week made a statement on SMB's role in our new economy. I am today once again reiterating that SMB will operate as a trade facilitator and a trade regulator in compliance with government's policies, with the aim of ensuring adequate and regular supplies of basic commodities at fair prices,” Minister Faure said.
He said that Seypec was created to secure and supply the country's energy requirements and that over the years, it has grown to add a shipping arm which manages three tankers and have recently merged with ex-SNOC (Seychelles National Oil Company) and now handles the petroleum exploration activities.
“In 2006, despite oil prices having peaked, Seypec in collaboration with government was able to finance all the domestic consumption needs of around US$50 million. This can be compared to US$38.5 million in 2005 and US$28 million in 2004,” Minister Faure said.
He said that despite the higher prices and increased consumption, Seypec was able to make record profits, with the turnover in 2006 expected to be SR1.6 billion. The company continues to do extremely well in its international operations, which are the re-export of petroleum products and tanker operations.
In the first 10 months of operation in 2006, profits on international operations were in excess of US$31 million. Today there are 48 Seychellois working as crew or being trained to join the tanker fleet and more are expected next year, he said.
He said that as for the oil exploration programme, Seypec continues to play an active role through promotion and assisting the oil companies that currently have acreage or negotiating for prospective acreage.
“In early May we saw the arrival of the seismic vessel Geo-Mariner to acquire data south of Mahe including the Coetivy and Platte banks, now being processed in Perth Australia for further analysis,” the minister said.
On Air Seychelles, he said that the national flag carrier and its 668 staff continue to brave the challenges of the aviation industry with a good performance record despite tougher competition and high increases in fuel.
“The airline is already 100% e-ticketing compliant well in advance of the IATA deadline of the end of 2007,” he said.
Minister Faure noted that the new inter-island short aircraft has improved Mahe-Praslin connections and international passenger figures look very good ahead of the arrival of the new aeroplanes on order to meet the needs of new hotel rooms that will come on line.
“Air Seychelles is a success story. The Creole Spirit continues to motivate the management and staff,” he said, noting that the increase in subvention to parastatals is mainly because of additional funds of SR60 million given to the Public Utilities Corporation (PUC), namely on account of the increase in fuel prices that has impacted negatively on the expenditure pattern of the organization.
Under subventions to parastatals, the main allocations next year will be SR50 million to PUC, SR25 million for the operations of SBC, SR 15 million to the Seychelles Public Transport Corporation for their smooth functioning, SR8.4 million to Seychelles Institute of Management, SR8 million to Island Development Corporation (IDC), SR 5.7 million for Property Management Company , SR 4.3 million for Seychelles Investment Bureau and SR3.5 million for Small Enterprise Promotion Agency and SR1 million to L'Union Estate.
Minister Faure said that SR18.52 million more than this year has also been provided for some of these parastatals such as SBC for their Union Vale station relocation, IDC for building of basic infrastructure and environmental requirements to accommodate the new developments taking place on the islands and for SIM, to enhance the courses being offered inclusive of a special training programme for the public sector employees.