Cost £200,000

New Guinea Administration To

Australian Taxpayers Will Find Mr. Ward's Plans an Expensive Luxury

Canberra, Sept. 8.

ESTIMATES released with the Budget here this week show the Govern ment expects the new Papua-New Guinea Administration, established under Mr. Ward’s recently-passed Bill, to cost £150,000, in the year ending June 30, 1946.

Another estimate shows that £50,000 is to be used for the development and wel fare of Papuan and New Guinea natives during the same twelve months.

In the Defence and War Services divi sion of the Estimates, the sum of £343,000 is provided for the coming year. This represents a huge increase of £264,837 on the total expenditure for 1944-45 of £78,163.

This £343,000 includes provision of £lOO,OOO (to be recovered) for next year, for advance to the Australian-New Guinea Production Trust Account for the Australian-New Guinea Production Board.

It further includes the estimated costs for the new Administration and for native welfare (mentioned above).

Another item in this estimated War Services’ expenditure is £l,OOO, also to be recovered, for advance to the New Guinea Copra Control Board. Yet another £31,000 of the total has been earmarked as 1945- 46 payments on account of the New Guinea and Papuan Administrations.

Printing and consolidation of laws of New Guinea and Papua have been esti mated to cost £9,000.

Main reason for the 400 per cent, increase on last year’s War Services’ expenditure of £78,163 is the inclusion of £2OO 000 covering new administration expenses and funds for native develop ment and welfare. The first item last year had no equivalent, and the second cost £7O. „ , This coming year’s £lOO,OOO, for advance to the Production Trust Account, is double last year’s £50,000 expenditure.

The Copra Control Board, allocated only £l,OOO in the Estimates, cost £6,906 during 1944-45.

Cost Of Canberra Department

ESTIMATED appropriation for the

Department of External Territories for the year ending June 30, 1946, is £4O 000 This exceeds last year’s expendi ture of £35,374 by £4,626. . .

The appropriation is divided into two sections —£28.000 for administrative costs of the Department and £12,000 for ship ping and mail services to Pacific Islands.

The whole of this year’s £4.626 increase is taken up by new administrative costs.

The estimate of £12,000, the same as last year’s expenditure, is intended to cover shipping and mail services to Papua, New Guinea, Solomon Islands, Norfolk Island, Lord Howe Island, and the New Hebrides.

The 1945-46 Budget shows that the cost of the Department of External Territories is returning to 1942 levels: 1941- £45,389 1942- 24,577 1943- 19,607 1944- 35,374 1945- (estimated) .. .. 40,900 A Budget statement of the receipts and expenditure of the Trust Fund during the year ended June 30, 1945, shows New Guinea expenditure as £97,538 and receipts as £198,955. Papuan receipts and expenditure were £91,454 and £43,353 respectively.

Editorial Note

IN pre-Jap-invasion days Australia’s

Pacific Territories were nearly self supporting : they did not cost the Australian taxpayer very much. Both Papua and New Guinea received an occa sional loan; Australia provided some £30,000 per annum as a mail-steamer subsidy and a few more thousands per annum as bounties on Territories’ pro ducts; and about £40,000 p.a. to cover the cost of the Department.

Under the Ward plan, private enter prise (the “exploiters”) is being kept out of the Territories, and practically all economic machinery is to be provided by the Government-controlled Production Control Board. Theoretically, the Board does all the trading in the Territories, and is supposed to make profits. The fact remains that the Board had to be given an advance of £50,000 last year, from public funds, and £lOO,OOO this year.

This is the additional expenditure faced by Australia, on account of her Pacific Territories, in 1945-46: For the new New Guinea Pro visional Government £150,000 Native welfare 50,000 Advance for Production Control Board 1000“ Printing of laws y » uuu £309,000 This is in addition to the customary expenditure of £40,000 for the Canberra Department and £l2 000 for shipping subsidies.