Solomon Islands

Finance

How to Meet £8,000 Deficit

From Our Own Correspondent TULAGI, November 28.

SINCE last writing, the main topic of conversation has been the an nual advisory council meeting, which was timed to go off on October 28, but missed fire until November 11. owing to the absence of the Resident Commissioner on his mission of en quiry into the damage done by the San Christoval ’quake and tidal wave.

Ill-health took a hand and pre vented the Bishop of Melanesia and Mr. Geoff. Clift from being present at the council meeting, but Mr. Donald McKinnon (the father of the House) and Major Hewitt (manager of Levers Pacific Plantations Pty. Ltd.) very ably carried the banner of the unofficial side, being supported somewhat by Geoff. Clift, from his bed in Tulagi hospital.

The Government benches (?) were occupied by the Resident Commissioner (president), Messrs. Hyne (Actg. Judi cial Commissioner), Kidson (Govern ment Secretary) and Johnson (Treas urer and Customs).

In his opening address, the Resident Commissioner soon made it plain that the outstanding business was the bal ancing of the budget. Import revenue, he said, for the six months ending September, stood at £12,200, and at this rate would show a deficit on esti mate for the year of about £10,700.

Copra exports for the six months showed 9,901 tons. An export tax had been reimposed on April 1, on a slid ing scale of 5 per cent, on island value of copra, which is reckoned at £7 below London quotation on the Monday prior to the arrival of steamer in the group.

This, of course, would take up a little of the slack, but altogether it looks as though a further £8,000 will have

to be subtracted from surplus funds at the end of the year.

Retrenchment will have to take place but it can be done gradually. This was favoured rather than salary re duction, as those retrenched can either be pensioned off or fitted in somewhere else.

The cost of living, said the Resident Commissioner, has not really been reduced, while soup and meat was slightly cheaper, other things are dearer —and soaps are no cheaper!

Another dash of sly humour came when Major Hewitt remarked that, in the absence of the Bishop, the nat ives were not represented at the meet ing.

On the other hand, “the natives have four representatives,” said the Presi dent; and thus once more the old “Protectorate” bug-bear was aired.

Not to be outdone in humour, Mr.

Geoff. Clift, sent along his testimony favouring the proposed new stamp is sue. Said Geoff.; “There seems no reason why this Government should not follow the example of others and make a profit out of the idiosyncrasies of philatelists.”

In sorting out possible avenues of income a motion was put to increase the import duty from 121 to 15 per cent., but it was turned down on the show of hands and there is to be no alteration at all, so the ponular plea to reduce the tobacco tax fell flat.

It is to be recommended that the “minimum” wage he abolished and wage fixing left to supply and de mand. On paper this appears, if granted, to give us what we have been asking for —reduction of wages to bring us more into line with other copra producing centres; but whether there will be unity of employers remains to be seen, and if not. the chances are that the cost of labour will go even higher.

Again, steps are to be taken to that the native gets a fair deal, and much depends on what is considered to be a fair deal. Traders, said the Resident Commissioner, must be pre

pared to accept less profit, but as that would be an impossibility under pre sent circumstances, seeing nothing from nought leaves a whole heap of the same stuff, traders are amused rather than apprehensive.

The old suggestion of a Legislative Council (this time nominee) was made, but, “the time is not yet ripe,” saith the higher authorities, and there are those of us who agree, for it is more than doubtful that it would be an ad vantage, all things considered. The present Council —at least over the last couple of sessions—hag done very well indeed and business has been put through with a dignity and sincerity of purpose that must have been most marked and refreshing to anyone hav ing witnessed, say, a N.S.W. State Par liamentary session.