More Taxes For Fiji

Governor’s Grim Warning

From Our Own Correspondent SUVA, August 2.

THE backwash of a debate at the previous session caught Fiji’s Legislative Council to-day when the Governor (Sir Brian Freeston) dealt with the Colony’s finances in the course of his opening address.

At the previous session, said the Governor, the unofficial members were practically united in their opposition in principle to export taxes on primary pro ducts.

“While bowing to their wishes for the moment, I reserved liberty of action for the future,” he added.

Since then he had been in communica tion with the Secretary of State for the Colonies, the Governor continued, and he had been informed at some length that, in circumstances such as now prevail in Fiji, not only were export taxes on primary products proper forms of taxa tion but they were also necessary forms.

“The Secretary of State has urged this Government to reconsider its decision to abandon even temporarily the tax on sugar and the proposed tax on copra,” said the Governor.

“Very significantly, the Secretary of State pointed out that he would have great difficulty in sanctioning the Colony’s approach to the capital market for a development loan unless he was satisfied that all alternative sources of finance were being fully utilised. And it is evident from his remarks that, in the absence of a tax on sugar and a tax on copra, in times such as the present, he would be hard to convince that all other available sources of finance were being fully utilised.”

The Governor recalled that at the March session he had stated that the Government had no wish to impose taxa tion merely for taxation’s sake and that his final decision would be based on the probable outcome of the financial year.

It now appeared that the revenue esti mate of just over £2,900,000 would be realised, or nearly realised. At the same time, shortages of staff and materials had held up many of the Government’s major projects.

Therefore, said the Governor, he had decided not to reopen the question of the sugar and copra taxes at the present session, but he warned the Council that “both taxes will be very much to the fore in the Government’s mind when drawing up the financial plans for 1950.”

Editorial Note

THIS is just another reflection of the Socialist policy that is crippling Britain, disturbing the Empire and embarrassing British relations with the United States.

What are the peculiar conditions in the Colony of Fiji, referred to by the Secre tary of State for the Colonies, which make it desirable that taxes should be imposed on the colony’s primary indus tries? Actually, there is no essential dif ference between the Fiji of 1939 and the Fiji of 1949; and the principle of keeping the tax-gatherer’s clutching hand off primary production is as sound now, as then.

The difference is in Britain herself.

The British people have elected to go off on an economic orgy with a Socialist Government; and, after four years of it, they are getting deeper into a financial morass. The British people themselves are now poor, and groaning under the load of intolerable taxation, and their politicians think that the Colonies should be dragged down to the same level. Fiji essentially is a country of private enter prise; but Fiji, in relation to taxation, is to be treated as if it were part of the set-up which has nationalised coal and transport, and is trying to nationalise steel.

Taxation of sugar and copra surely will come. Copra, for a year or two, may bear the impost; but it may do fatal harm to the precariously-balanced sugar industry.

Mr. J. R. Elliott, accountant of the Bank of New Zealand, Suva, Fiji, has been transferred on promotion to the New Plymouth branch as accountant. He will be replaced in Suva by Mr. W. J. G.

Roach, who is expected to arrive in Fiji at the end of August.