Customs Duty
p. 65 · Read in the full issue
flood of Imports
Fiji’S Reliance On
[?]S Causing Concern
i N increase of £lOO,OOO in the I. annual contribution from [ revenue to Fiji’s Development und, and an increase from 1,000,000 to £6,000,000 in the loan rogramme, were announced by the •overnor (Sir Ronald Garvey) in is opening address at the Budget ission of the Legislative Council ; Suva in November.
The Governor said that although iji’s trade balance for the year was cely to be adverse, there was wide iterest in new crops and indus ial development was proceeding tsifactorily, if slowly.
To the end of October, 312,000 ses of bananas had been shipped, id the total for the year might ach the 1953 record of 382,200 ses. Increasing interest was be g taken in cocoa, and the quality ocolate made from small samples own in Fiji had been extremely couraging. Pepper, a recently troduced crop, was growing and liting well.
IHE Acting Financial Secretary (Mr. R. Major) told the Council that a surplus of £65,024 was ;imated for 1955, but, because of penditure below estimates, the rplus might be nearer £300,000. rhe estimate of revenue was 410,015, and expenditure £5,444,991. ie new revenue estimate was f 2,000 over the original estimate, ised mainly by a rise of £206,000 customs receipts and an extra 1,000 defence reimbursement by w Zealand. tfr. Major referred to the itounding, and possibly alarm [” volume of imports this year, e result, he said, would probably an adverse trade balance of DOO,OOO. Unless export income re increased, Fiji’s ability to pay the imports from which the con erable import duty total was de ed, might be impaired, and this uld be reflected in the services ivided.
Revenue in 1956 is estimated at J 55,874 and expenditure at )00,574, giving a surplus of ,300. This surplus might be re ied by up to £40,000 as a result measures to be introduced in the dget session.
Vith regard to Fiji’s Development -n, Mr. Major said that although [nited Kingdom grant of £2,000,000 i been hoped for, the allocation 3 £Stg.7oo,ooo. While disappoint , this did not close the door to uture application for a supple
ntary grant.
lS a result of the adoption of the
education plan, the Development Plan had been expanded from £8,074,000 to £8,711,000. It was pro posed to raise £6,000,000 by loan £777,000 by grant, and £840,000 (in cluding the extra £100,000) from revenue, leaving a shortfall of £1,094,000.
Mr. Major said it was proposed to face the shortfall because there might be a carry-over from the first plan, they might not be able to complete a very ambitious pro gramme in the time set down, and there was also the hope of a supple mentary grant. If the worst came to the worst, they could “cut the cost to suit the cloth.”
THE heavy reliance on import duties was a matter of some
concern, said Mr. Major. A careful watch would be kept so that steps could be taken, if necessary, to pre vent any unbalance in revenue and expenditure by curtailing expendi ture on unessentials.
Reserves were very slender, and the Colony had no surplus of fat to tide it over a lean year.
Mr. Major said that the wharf schemes at both Suva and Lautoka would be proceeded with.
The 1955 wage award for Govern ment labour on the lower scales will cost the Government £200,000 The Budget allocates £150,000 for additional houses for civil servants The Acting Financial Secretary said that a survey had shown that 69 more houses were required at Suva and 199 in country districts.