Without Morobe!

Imagine New Guinea Without Morobe!

Some Comments on Roads, Royalties and Deficits

From Our Own Correspondent WAU, July 24.

THE efforts made by Mr. Green (Kal goorlie) in May and June in the Aus tralian Parliament, to have the New Guinea gold royalty of 5 per cent, re viewed are appreciated in the Territory.

Canberra, however, does not prepare or control the Territory’s budget; and Can berra has not authorised the squandering of from £50,000 to £lOO,OOO per year, de rived from royalties through a period of eight years or more, on everything ex cept that for which the levy of 5 per cent, was imposed—namely, the construction of a road from Salamaua to Wau.

On May 5, the Australian Minister stated: “The survey is being made in ten sections, so that there will be no delay of any kind. The road will be constructed as early as possible”. Six weeks later, the Prime Minister stated: “Prom the papers which have come before me within the last few days, I can say that all pre liminary steps are being taken expedit iously”.

But the position now is obscure. The question of financing the undertaking Is said to be causing difficulty.

The estimated cost is £150.000. Of this amount, £125,000 has been promised by subscribers to the loan. Is the Administra tion unable to find the small balance of £25.000 for a project which should prove a good 4 per cent, investment? We have heard that the Administration has re ceived authority to operate on the Super annuation and Coinage Reserve Funds, which have a credit of £207,000, to pro vide for any deficiency in the fund for the construction of this road.

Timber, a valuable asset growing in profusion on oup Morobe heights, enters into the road construction plan. But min ing interests are not asking for a road suitable for transporting large lumber, but a road for supplies and machinery, the latter of which is brought in in rea sonably small parts.

Even with a new industry ready to be opened up, it appears that a matter of £25,000 is holding up the road. Would not the £4O 000 which,> it is reported, has been squandered on the Mount Hagen-Sepik patrol, have been much better invested in a road giving improved industrial activities and increased revenue?

There are two courses open. One is to get ahead with construction. The other is to remit 4 per cent, of the present 5 per cent, royalty forthwith, and be con tent with the £600.000 which already has been received from this source and used in other ways.

Imagine the state in which the Terri tory finances would be without Morobe goldfieki. Even with its large contribution f£ 100.000 per annum from rovalty alone disregarding customs and all other forms of revenue collected from the mining in dustry) it is understood that the Terri torial balance at June 30 of this year a This, from a surplus of £60,000 at June 30, 1938 rtwelve months after the eruption) is—to put it mildly— a sad state of affairs. , Re X- Z ather William O’Connell has joined the Sacred Heart Mission in the Arawe District, New Britain