Public Service Pay in

Wartime Western Samoa Has Typical Budgetary Problem

From Our Own Correspondent APIA, Sept. 20.

IN two sessions on August 7, and August 12-19, the Legislative Council discussed the Territory’s economic position and the financial difficulties of the Administration.

Recommendation for drastic changes in the Government’s financial policy are to be submitted to the N.Z. Government.

The Acting-Administrator (Mr. Turn bull) pointed to the effects of the war in Western Samoa, which has been hit vitally in the depressed condition of the copra industry and the shortage of ships.

The financial difficulties were mirrored in the financial estimates tabled for con sideration of the Council.

HON. O. F. NELSON, seconded by Hon.

Leleua, asked for legislation to en able licensed traders to recover bona fide debts from native Samoans by legal proc°ss. Other debts apart from trade debts, are recoverable now. The lack of protection regarding trade debts had caused numbers of European and Samoan traders to lose their jobs or suffer terms of imprisonment. Samoans, rightfully asking for equal treatment with Europeans in civic privileges, must also accept equal responsibility for their obligations.

Samoan members said that opinions among native Samoans were divided. It was decided to defer the motion until the views of the Fono of Faipule have been obtained.

A RESOLUTION of the Council, moved by Hon. O. P. Nelson and s°conded by Hon. Faalava’au, was passed, ex pressing sympathy with the British Empire in its present struggle, and ex pressing the hope that free institutions may prevail.

THE Acting-Administrator said the fihancial position for the year end ing March 31, 1940 was as follows: Expenditure .. .. £135,648 Revenue £131,416 Deficit £4,231 As revenue included £2,826 transferred from Building Reserve, the excess ex penditure was £7,058.

Public works expenditure was heavier than usual on account of £lO,OOO spent on storm damage. Apart from this, the bulk of expenditure was incurred in con nection with the social services, Health, Education and Native Departments.

Expenditure in past years on health, education and native departments shows increasing benefits derived by the Samoan people.

In the first three months of this year, £IO,OOO less revenue was received than in last year, and the position has further deteriorated, due to decreased trade.

Should they reduce expenditure, or in crease revenue by taxation? The Admini stration wished to maintain, as far as possible, the social services, particularly the health department. Public works ex penditure had been reduced by £13,000, but a deficit of £17,000 still was expected.

Health.

Education.

Native. £ £ £ 1934-5 . . 13,937 4,910 5.385 1935-6 . . 17,797 4,877 5,539 ' 1936-7 . . 19,636 5,619 6,810 1937-8 . . 22,579 7.539 7,320 1938-9 . . 25,904 8,553 8.433 1939’-40 . . 29.147 9,526 8,928

After providing for a deficit of £7,058 for last year, there still was an accumulated surplus of £41,873.

Hon. O. P. Nelson, elected European member, commenting on the outlook, said the Samoans could, at; the worst, re turn to their old methods of living with out imported food and luxuries. It would be very difficult, if not impossible, for Western Samoa to contribute to war funds to any great extent. If exports would come to the estimated total of £186,000 (which was very doubtful) the estimated expenditure of £122,484 would leave only £62,526 for a population of 60,000. If overseas markets for copra be come worse, the estimated £12,375 from export duty on copra would not be ob tained, nor would £30,000 from import duties come to hand, a large portion of which is contributed by copra producers— mostly Samoans, from their purchase of dutiable goods out of the proceeds of their copra.

The Government, he said, had already reduced the export duty on copra by 10/a ton, but since then overseas markets had further declined. It might be better for the Government to forego the whole copra export duty, to enable merchants to pay nroducers better prices, resulting in increased revenue from import duties.

The only way to meet the reduction of revenue was a corresponding reduction in public expenditure, which did not neces sarily mean a material curtailment in essential services. The Samoan public service should voluntarily agree to a salaries reduction before it was done com pulsorily. The salaries of highly paid officials must be reduced.

Last year, 52 European officials from New Zealand received £24,280 in salaries, an average of £467 per annum. Some specialists, like the Chief Medical Officer and the Crown Solicitor could not be re placed by local appointees, but many other positions could be so filled, at some relief to public funds.

The Samoan elected member, Hon.

Faalava'au, pointed out that, while in creases in the low salaries of Samoan officials were refused, owing to shortage of funds, the very high salaries of Euro pean officials remain the same.

A Select Committee was formed to examine the estimates and report back to the Council.

The Treasurer gave figures regarding the first quarter of the current financial year. As at June 30, 1940. the exports were £65,845 compared with £59,235 for the same period of last year, an increase due to the cocoa export figures—mostly the result of an accumulation. Over the same period, the import figures decreased by £2,000.

The unofficial members of the Select Committee on the estimates made many recommendations for saving. Expenditure on European education, European police, officials’ ’ residences, salaries of various European officials, fares for same from and to New Zealand, Treasury and Customs expenditure, the harbour con tract and other items were criticised. The reimposition of the native poll tax was also suggested—and opposed by native members, who argued that the Samoans contribute indirectly through import duties.

The recommendations will be submitted to the New Zealand Minister.

In reply to Mr. Nelson, the Acting- Administrator stated that the salaries of the N.Z. officials are fixed by the N.Z.

Public Service Commissioner, and the pay roll is now considerably lower. The Administration policy was to employ local people in preference to imported officials, but it was hard to get efficient local people—the best were employed by local firms The current estimates would have to

be reviewed, owing to reduced export duties and import duties. The Public Service should not be singled out any more than any other section of the com munity. The cost of living had increased.

The Treasurer said that direct and in direct taxation worked out at about £ll2/- ner head, which did not seem excessive* In the year ended 31/3/40, on a population basis of 57,000, the public debt of £102,210 was £1 15/5 per head.

The Director of Education opposed the reimposition of school fees for European children, which would be a great hard ship, especially for the Euronesian com munity, many of whom are landless and jobless.

Mr. Nelson claimed that Samoans and non-official Europeans had already suffered a serious reduction of their standard of living, so that officials would not be the first to suffer or bear sacri fices. They have, so far, not suffered at all. If salaries in New Zealand had in creased, it must be pointed out that the value of N.Z. primary products had also increased.

Mrs. Spence, wife of Captain R. A.

Spence, M. 0., of the Bth Military Dis trict, has joined her husband in Port Moresby. They were formerly well known residents of Rabaul.