Political Stir In

Fiji

Anti-Tax Demand By European- Indian Bloc :: Governor Adjourns Council

APOLITICAL stir has been caused by a split on finance in the Fiji Legis lative Council (which consists of 15 Unofficial Members —5 Europeans, 5 Fijian, 5 Indian—and 16 Official Mem bers); and by a newspaper charge that the Unofficials have entered into an un precedented alliance against the Govern ment.

The Governor, having arranged a guaranteed price for copra for nine years, proposes a tax on copra. To strong pro tests he has replied that other Fiji inter ests are taxed—why not copra?

Legislative Council met on November 12, and adjourned as usual to allow Un official Members to consider the Estimates in Finance Committee. The Estimates were generally approved. Council resumed on Tuesday, Nov. 23.

Discussion that day (23rd) showed European and Indian Unofficials demand ing removal of import duty on sharps (for Indians) and flour (for all classes).

The Governor said that already taxes equal to £65,000 had been taken off food stuffs; any further reduction would mean that subsidies must come off, and consumers would gain nothing.

The Indians pressed the matter to a division. Unofficials voted solidly for re mission of the duties, but were defeated by the Official bloc vote.

Next day (24th) “Fiji Times” made the following sensational charge: “It is alleged that all the European

Unofficial Members agreed that if the Indian Members would join a solid front of opposition to the Copra Tax Bill, full support would in turn be given to an Indian demand for the removal of the Residential Tax, the Sugar Export Tax and the duty on imported sharps and flour, “This scheme, assuming that the Gov ernment could be pushed into agreement, would result in the freeing of the Indians from virtually all effective taxation in return for Indian aid in blocking the Copra Tax Bill.”

The newspaper challenged the Unoffi cials to deny the charge. No denial was made.

The newspaper said that the Fijian Members had been led into this unpre cedented and undesirable alliance by the Europeans, but they might now recede from that position. The Fijians, who are the largest producers of Copra, might, however, fight for a reduction in the pro posed tax from £3 to £1 per ton.

On Nov. 24 and 25, in a strained atmos phere, the Unofficials demanded that the Government spend its £1,700,000 reserve on public works and financial reforms designed to reduce living costs. In reply to the Officials’ argument that some re serve must be kept in case of a slump.

Sir Hugh Ragg advocated a loan of £3,000,000, if necessary.

The Governor pointed out that Un officials, having apparently approved of the Estimates, were now throwing them back into the melting-pot.

On Nov. 26 the Governor, in order to give Members a chance of calm reflec tion, adjourned the Council until Decem ber 20. He said: “I have been given to understand that the Unofficial Members have agreed that it is the Government’s duty to drop the Copra Tax, the Sugar Tax, the Residen tial Tax and the import duty on flour and sharps. I am not a mathematician, but I believe the loss of revenue sug gested is some £250,000 per annum.”

A difference of opinion in Council on the Colony’s financial policy is quite understandable; but the spectacle of the European Members (who include leading figures like Sir Hugh Ragg and Mr.

Maurice Scott) entering with Indian Members into the kind of alliance described by the newspapers has left a very sour taste in the mouth of the European and Fijian communities, who already have been greatly troubled by Indian demands.