Fiji Gold Industry is

Double-Taxed But the British Empire Needs the Dollar Funds It Can Provide

Suva, May 20.

FIGURES issued by the Suva Chamber of Commerce in May make it clear why little or no prospecting is be ing carried on in Fiji, and why gold pro duction in the mines already in operation is not being pushed as it might.

The Vatukoula mines, during 1945, not only paid income tax on profits, but paid a royalty of 5 per cent, and a Port and Service Tax, on their exported gold of 1 per cent. The gold industry is the most highly taxed in the Colony and, although it has contributed much to the present prosperity of Fiji, the Government has shown no disposition towards modifying the situation.

After Lend-Lease came into operation, and there was not the same necessity to create dollar credits, gold production was not given any priority. However, Lend-Lease has now ceased, and there is a great need of dollar funds. A recent Colonial Office statement says: “ . . .It now becomes of first importance that gold production in the Colonial Empire should be increased wherever possible. . .

If equipment, fuel and skilled labour are required for this purpose, the authorities concerned in the United Kingdom are prepared to assist as far as possible in procuring these.”

So far, however, the Government of Fiji has not shown any inclination to act on the Colonial Secretary’s words and is making no move to encourage increased production.

The local Chamber of Commerce states, in its report, that “while present values of ore are maintained, existing mines are likely to continue operations whether the royalty charge is made or not, but the effect of these taxes is to discourage the crushing of low-grade, or marginal, ore.”

If the mines at Vatukoula are not pro ducing as fast as some people feel is desirable, a contributory cause may be found in the high taxation in Australia and New Zealand, where most of Loloma and Emperor shareholders reside.

The last dividend paid by Loloma was 1/- per share, in mid-1944. Emperor, on the other hand, has twice made repay ments of capital, and the formerly paid up share of 10/- is now paid up only to 6/-.

From Australia and New Zealand, to day, we hear that one of the largest factors in the slow return of industry to a peacetime basis is excessive taxation.

It would be unfortunate if the Govern ment of Fiji slaughtered the Colony’s infant industries by the same methods.