Constructive Critics

Fiji’S Immediate

Finance Problems

Indian Traders Ad As Constructive Critics

The recommendations of t Fiji Fiscal Review Committee

recently before the Fiji Legis;

tive Council, and in some cas

already accepted—have been t

fore a committee of Fiji busim men, of which Mr. R. Prasad

secretary.

THOSE recommendations h a been very closely examined, me especially in relation to th likely effect upon the future econoi of the Colony. The following is summary of the opinions express by the businessmen. The major of the latter are members of t Indian community.

Generally, the comments ma while critical, were reasonable, cc structive and expressed in moden terms.

Strong objection was lodg' against some of the committee ]

commendations, namely:—

That the scale of capital e penditure in Fiji should be 3 duced.

Expenditure on capital develc ment is required to ensure f employment and increase in prodi tivity. In this period, when une: ployment has beco m e serio expenditure to create more emplc ment and, at the same ti rr increased productivity is mOl desirable, the businessmen said.

That loan money, additional that already estimated, should t be raised.

Loans from abroad are most o sirable. We are experienci

(Continued on page 149)

economic recession caused by the balance-of-payment’s deficits. Loans will not only increase the Govern ment revenue immediately but also reduce the pressure on the balance of payments.

It is true that there will be in terest charges on the loan; but we cannot look at the pennies and for get the pounds.

That the percentage of recurrent expenditure on medical and education services should not be permitted to increase until a much greater direct return to revenue

I is made, or until the taxable I capacity of the Colony is greatly ■ in oven I That social and other services I should not be expanded until the I: Colony is producing more income I to enable it to pay for such ser

\ vices. .

That, as a general principle, r fees for services should recoup the 1 full cost of such services to Gov ernment.

That higher education be paid I for in full by the recipient. f That each water supply should be treated as a separate entity f and, in each case, water should k be charged for at a rate which I will ensure that the supply is

: self-supporting.

Essential services like health and -education are important basic re quirements for the progress and [Prosperity of any society. Welfare of the people, their progress and prosperity, is the accepted function of every Government.

Therefore, our Government should provide the services, and no one should be deprived of them because of lack of ability to pay directly. If these services are not provided the community will have to bear even a greater expenditure.

Education facilities should be in creased to meet the demand of in

creasing population.

I Any cut in proper education ex penditure is a false economy. We need more and more of our trained men and women to relieve our de pendability for service on over seas recruitment. Government should encourage and give priorities in its employment to local people. This would, to say the least, effect con siderable economy.

Charges on health services should be as little as possible and the pro posed expenditure for obstetrical annex at the CWM Hospital should not be postponed.

We suggest that the Government should look into the possibilities of an “insurance system”, as practised somewhat in Australia. We also suggest the Government should look into the question of setting up lotteries to raise money.

Any attempt to make water sup plies self-supporting will be oppressive to the poorer people.

The Government should continue its policy of building more roads for economic development, but should not charge the full cost even after f taking into account the immediate benefit derived from the roads and the Government’s use of them.

That the Government should effect economies.

That the Government should re duce its expenditure on personal r emoluments by 5 per cent, at the . earliest possible date or, prefer ' ably, should effect a saving of 5 [ ver cent, on total recurrent ex [ penditure (excluding public debt l and pensions and gratuities).

To us (the businessmen’s views continue), these recommendations,

when put together, mean unemploy ment. But we are not against proper economies. Therefore we suggest economies in this manner: (1) Waste in Government expendi ture should be stopped without delay. We have in mind not only general waste in admin istration, but also in capital ex penditure—an example-of which is brought out in the PWD’s estimate of works. (2) Overseas leave and passage grants: (a) Tour leaves should be granted less frequently in view of the very large (estimated) annual expendi ture of £120,000. (b) For purpose of permanent economy, tour leave and passage grants should be given to an officer after the completion of 10 and 20 years’ service, or on re tirement. (c) Passage grants to employees recruited from overseas should be given only to their home countries. (3) Rent recoverable from Civil Servants should go up, to 15 per cent, of the Civil Servant’s salary. (4) Interest on loans to Civil Servants should be increased to the current bank rate. (5) Not only Civil Servants, but also Government Institutions should pay for water at the same rate as the general public. (6) The increase in Public Service salaries by way of “post allow ances” was introduced in a critical period, and should be suspended. (7) Local recruitments—All possible action should be taken to give Government employment to local people.