Australia Loosens Purse-Strings

With Big Budget Grant to P-NG

By providing £8,750,000 as a grant to Papua-New Guinea, the Australian Federal Budget for 1955-56 has set a record. The previous year’s grant was £1,621,711 less, and ten years ago the sum was only £252,740.

WITH rising costs in every avenue of expenditur e—salaries, materials, transport and so on — the grant is not abnormal if the present intensive policy in P-NG is to be maintained.

I And there seems no likelihood of any change, particularly in view of reported favourable comments made by the all-party Parliamentary members who visited the Territory in July. The estimated total expenditure for 1955-56 is put down as £11,880,500, and of this, £3,100,000, or 26.3 per cent., is expected to come from revenue within the Territory.

I Constructional costs are claimed to be assisted by the “greater use of resources within the Territory” fcuch as more skilled labour amongst native workers, and local timber

Supplies.

TOTAL expenditure on capital works (building houses, offices, hospitals, schools, roads, wharves, bridges, electric power and water supply) in 1952-53 totalled £1,195,812, and the estimates for 1955-56 put the figure at £3,963,000 —a tidy in jrease in three years. ■ Biggest increase is the building instruction programme, which cost £350,708 in 1952-53 and has jumped :o £1,750,000.

If any pruning had to be done t would seem fair enough, with all

the talk of the Territory’s strategic value, to grant a portion of the De fence Vote for such necessities as roads, bridges and wharves, a sug gestion which has already been made in some quarters.

The increased building expendi ture is the natural result of in creased staff, which in 1955 numbered 1,918 compared with 447 in 1946 and 1,130 in 1949.

It is intended to add a further 300 personnel during the coming period, of whom 113 are professional and technical, 104 administrative and clerical and 83 general staff.

This number includes replacements.

Officers are provided now with every amenity imaginable and there should be no difficulty in obtaining recruits for the Service, although in the past, for some reason, it does not appear to have been too popular, despite the absence of in come tax. rTDICATIONS of what P-NG is doing economically are shown in the trade figures.

In 1948-49 total trade amounted to £11,700,000, imports £7,500,000 and exports £4,100,000.

In 1953-54 total trade amounted to £26,200,000, imports £15,100,000 and exports £11,100,000.

It was still on the wrong side of the ledger, but nevertheless they are figures with which everyone can be happy and, providing world

prices for P-NG products maintain their high level, there does not appear to be much to worry about.

The growth of native co-operatives is remarkable. Total turn-over in creased by 55 per cent, in the last year and amounted to £962,603.

Activities in all departments are being stepped up for the “future benefit of all,” and there seems no reason to suspect that the present tempo of modernising P-NG will abate, providing generous grants can be obtained from Australia.

That extensive progress has been made in Administration organisa tions during the post-war period there can be no question.

Whether such expansion within a decade and such financial cost is warranted remains to be seen in future years in the economic and ethical characteristics of the native people themselves.

It is for them, and them virtually alone, that Australia loosens her purse-strings in such a generous manner.