The Murder of Islands Trade

Vol. 1.—No. 2. September, 1930.

IF any evidence were wanted to prove that Australian officialdom is mur dering Australia’s trade with the Pacific territories and colonies—which is the contention of The Pacific Islands Monthly, and the main reason for its establishment—it has been provided during the past month. The Federal Government has imposed a 10 per cent.

Customs duty on aeroplanes and min ing machinery entering New Guinea; it has compelled consignees to pay the new 2½ per cent, primage tax on all copra entering this country; and by some weird twisting of the official mind, it has found that bananas from Norfolk Island are subject to the sales tax of 2½ per cent.

One examines each of these items, by itself, with growing amazement.

How can any country, which has almost ruined itself in the untimely establishment of secondary industries, deliberately do things which will close against it one of the most accessible and friendly markets for its manufac tured goods! If one takes the three together, and tries to examine the national or trade policy behind them, one can only ask helplessly, Is this country mad?

Take, for example, the imposition of a heavy tax on mining and develop mental machinery entering New Guinea. The whole subject is dealt with, with admirable restraint, in an article in this issue by Mr. Freeman.

But three points may be emphasised here. The first is that the New Guinea administration will receive 5 per cent, royalty on all gold produced in New Guinea, which probably will yet make it the richest administration in the Pacific. The second is that much of the mining machinery for New Guinea is being made in Australia, by Aus tralian workmen. The effect of the tax, of course, will be to drive machi nery orders to other countries, where cheaper production will probably off set the new customs tax. The third is that Australia is under a pledge to do everything possible to encourage de velopmental enterprises in New Guinea—otherwise she has no right to the mandate.

Everyone knows that idiotic imposts and regulations (since removed) drove away from Sydney a trade in copra that was worth millions per annum to Australia. But Sydney’s geographical situation ensures still a modified traf fic in copra. Large shipments come here for the Lever soap works, etc.

The Commonwealth has included these imports in its 2½ per cent, primage tax. The inevitable effect, of course, is to drive away more of the copra traf fic. Every ton that can he converted into oil and soap in other countries, will go to other countries, of course — and payment will, of course, go back to the Islands in the shape of goods— from other countries.

Norfolk Island is part of the Com monwealth. Bananas are a primary product. Yet the gentlemen of the taxation service decided that N.I. bananas, coming to Sydney, shall pay sales tax of 2½ per cent. It is an

untenable position, and to be soon aban doned. It is only another example of the attitude of the unimaginative of ficial mind towards the vital question of protecting Australian trade and developing her markets.

The long-neglected Northern Territory now has a representative in the Fed eral Parliament. Is it not time that a similar arrangement was made in the interests of Papua, Norfolk Island and New Guinea Mandated Territory, so that those communities, whose future is bound up with Australia, may not be entirely inarticulate when of ficialdom muddles around with their vital interests?