Now Need

Fiji Does Not

More Export Tax

From Our Own Correspondent

Suva, Nov. 25.

DESPITE the ringing of alarm bells at intervals since the publication of the correspondence between the Gover nor of Fiji and the Secretary of State for the Colonies on the subject of the pro posed copra tax and the raising, at least temporarily, of the sugar export tax, neither levy will be brought up again at the present Budget session of the Legis lative Council.

The Governor (Sir Brian Freeston), in his opening address, at the Legislative Council, said: “At this time last year the honourable unofficial members of this council declared their conversion, with remarkable unan imity, to the economic doctrine that all export taxes are radically vicious.”

The Government, he continued, re mained firmly of the opinion that taxes on exported commodities, for which the price received by the producer showed a substantial margin over his costs of pro duction, were a fair, proper and conveni ent means of raising revenue.

Referring -to the published correspon dence between himself and the Secretary of State, Sir Brian said: “I venture to ex press the hope that the study which they have no doubt given to the facts and arguments in support of the true faith set out in Council Paper No. 21 of 1949, will have reconverted them from this moment ary lapse into economic heresy.”

“Be that as it may,” the Governor con tinued, “I wish to make it clear beyond

any possibility of ambiguity that, if and when the time should come for looking for fresh sources of revenue, nothing that has been said or done in the last 12 months will deter me or my successors in office from regarding export taxes on prosperous commodities as a wholly legitimate source of such additional revenue.”

The Governor repeated his statement, made during previous debates on the sub ject, that the Government had no inten tion of increasing taxes merely for the sake of taxation.

At the present time, he said, the Gov ernment’s fiscal requirements for 1950 seemed likely to be fully covered without the need for new taxation. “I do not propose to introduce a copra export tax, even at nominal rates, at this session,” he added, “or to move for the reimposition of an export tax on sugar.”

There was, however, an additional fac tor. The revised Development Plan en visaged the borrowing on the external market for the developmental purposes of something over £1,000,000.

“We see no necessity for any such bor rowing in 1950, but in 1951, or at any rate in 1952, we shall probably wish to place, in London or perhaps in Wellington or Sydney, the first instalment of a De velopment Loan,” said the Governor, and quoted the repeated London injunction that the British Government’s support for external borrowing by Fiji would depend on its being satisfied that local resources were being fully utilised.

Such an attitude was eminently reason able in the interests of both the lender and the borrower, and if these oossible circumstances arose, and if the Govern ment found that copra, or sugar, or both, could stand an export tax without detri ment, it would have no hesitation what ever in imposing it, the Governor con cluded.

WITH revenue at a little over £3,101,000 and expenditure at £2,922,000, the Financial Secretary has budgeted for a surplus of just over £179,000.

The Government subsidy on imported flour, reintroduced after the rise in price which followed the September devaluation of currencies, is estimated at £150,000. (This will keep the price in Fiji down to a pound.) To prevent a rise in the price of petrol and petroleum products a resolution has been moved in the council to reduce the duty on petrol by sd. a gallon and on kerosene by 4d. a gallon. These reduc tions will cost £70,000 a year.

The plural of spouse is spice.