Commentary

In New Guinea —New

Taxes for Old?

RESIDENTS of Papua-New Guinea feel that the imposition of in come taxation cannot be very much longer delayed—most of them are prepared for it in 1959 —so the $64 question is not so much “if” and “when”, as “how much”, and —even more important—what re lief can they expect in other direc tions when income tax comes in?

If the experience of residents of other Pacific Territories can be re garded as a guide (see article, page 17, this issue) they would be de luding themselves if they believed that they would emerge from any income tax deal better off.

Governments, world over, are re luctant to quit any taxation field once having entered it, even when they have invented another tax that should logically take the place of an old one.

There are only two alternative reasons why the Administration would enter the income-tax field in Papua-New Guinea: (1) That they expect to raise more revenue. (2) That they really believe what the planters have been telling them all these years—that is, that export taxes on primary industries are sectional taxation and unjust.

If they enter the field of income taxation only because of (2), and only to recoup the revenue—to wit, about £500,000 per annum—that they would lose on export duty, then in come tax probably would be a good thing, and certainly quite altruistic of the Administration which would be committed to setting up a whole lot of expensive and complicated tax-gathering machinery merely to ensure that all members of the com munity contributed to that £500,000, and not just the planters.

There is no real reason to suppose the Administration (or the Aus tralian Government) cares enough about planters to do this, so we must accept the fact that the only yalid reason that the Administration would introduce income taxation would be because of (1) —that is, that they want more revenue.

The revenue would have to pay for the cost of setting up and main

taining a tax-gathering organisa

tion and it would have to make a handsome profit besides. To make mis dream come true, Territorians ire just going to have to contribute i bit more in cold cash.

The planter won’t escape either, M course; he may not have to con tribute so much in export duty on ms copra, rubber or cocoa (although ie cannot be sure of this, either), jut he certainly is going to have *> pay his income tax.

No one who has not done busi ness outside the tax-free heaven of Papua-New Guinea can have any conception of the nightmare of con ducting an enterprise under the Aus tralian taxation set-up. For a be ginning, every business is going to need more clerical staff to cope with the added accounting, recording and form-filling that must be done.

Secondly, his business will no longer be his own. What goes on in his establishment will also be the business of the Taxation Com missioner. That is only the begin ning; there are other problems.

On the Administration side there will be plenty of troubles in a mixed community where European, Asians and natives are in business.

The year 1959 seems a propitious one for the introduction of income tax to the Territory, The Liberal Government has just gone back for another three-year term, and so can turn its thoughts from the big problems (such as licking Dr. Evatt) to the smaller ones (such as ad ministering P-NG).

In addition, the big oil companies have announced their intention of staying in the Territory for a while longer. One of the supposed reasons for not introducing income taxation last year was the belief that it might administer the coup de grace to the hesitating oil companies.

Finally, the fact that the oil companies are staying for the time being, has put heart into other business in the Territory and so, with phenomenally high prices for copra, this could therefore be con sidered a very good time to intro duce a new tax slug. ☆ ☆ ☆

The lan Crouch —

Another Lesson

HHHE disappearance of the Hong .L kong-built schooner lan Crouch, on her delivery voyage to Port Adelaide, has come too soon on the tail of the unexplained Mela nesian disaster of last July, for anyone’s comfort —and it was in evitable that it should give the wild boys of Sydney Sunday journalism a field-day on the last date in November.

Four years ago, when the Joyita started the recent crop of sea mysteries, th£ disappearance of passengers and crew was laid to the credit of the Japanese. For the present series, however, the Japs are out, and the torch has been passed to the Russians, “Red Subs clue to missing ships”, said the Sunday Telegraph. And went on: “There is strong evidence that another ship was destroyed by a

submarine in the Pacific this year.

This was the 300-ton Melanesian which disappeared near the Solo mon Islands. Experts ruled out the possibility that she may have been destroyed by a tidal wave or by an underwater eruption”.

Experts meaning the members of the formal commission of in quiry, two of whom had been taken to Honiara at considerable expense —also ruled out the possibility that she had been sunk by a submarine —Red, White or Blue. But to have said that would have spoiled Sun day for interested Sydneysiders.

But having ruled out the possi bilities of sea monsters, wicked Japanese, Red Submarines, the supernatural, and Flying Saucers with little Green Men, we are still left with a great big question mark: What does happen to these small ships? How can they disappear from regular shipping lanes, with out so much as an SOS message?

The answer probably lies in the fact that in small-ships operation, even without the unnatural hazards of the present time —Red subs and Flying Saucers —there are still suf ficient natural ones to provide that long chain of circumstance that occasionally ends in disaster.

Engines fail, and in small vessels it then is only a matter of time before the radio fails, also. Radio transmitters also fail of their own accord, and in any event, the radio officer usually has other duties and certainly does not stand a 24-hour watch. If it is a matter of panic stations, he may not be able to get to his transmitter in time.

Since the Joyita mystery, the regulations that govern the opera tions of small ships have been tightened up considerably in many South Pacific territories; but until such times as the movements of small vessels are controlled as rigidly as the movements of com mercial aircraft, there will always be room for disaster —and doubt.

The case of the lan Crouch is very much in point. She was, it is stated, equipped with radio trans mitters and receivers. She was, it is also stated, scheduled to call in the Philippines and New Britain on her way to Port Adelaide —no doubt for bunkers, water, etc.

She certainly did not call at Rabaul, and presumably she did not call at Manila. It might have been thought that the owners would know the proposed route of the vessel, and that she would report to them from time to time. She obviously did not, and this was accepted as normal. The owners did not become concerned until the vessel was over due in Port Adelaide —five weeks after she had left Hongkong. Even in early December, the owners be lieved she would still turn up.

If anything did happen to the ship it could have occurred anywhere between Adelaide and China.

If the Master had been compelled to file something equivalent to a

"‘flight plan”, before he left Hong kong, the area where he struck his trouble could have been pin-pointed much closer than that; search and rescue operations then would have been that much simpler.

Something fantastic may have happened to the lan Crouch — although the chances are that it was just one of those hazards of the sea. But if it has to be fantastic, then it is more likely to have occurred in the North Pacific —where there are Chinese pirates, and a war on between the two varieties of Chinese —than in the South Pacific where we know some of Their submarines are occasionally sighted, but where we have abso lutely no proof that They sink small ships or castaway their passengers and crew. ☆ it ☆

What Could Follow the

Australian Election

THE Territories of the South Pacific Islands could be directly affected in two ways by the resounding victory of the Menzies Government in the Australian general election: • In a wide re-shuffle of the Australian Cabinet, Mr. Paul Hasluck could be given new in structions and a different policy to follow as Minister for Territories. • Australia could show more initiative, and more drive, in bring ing about a re-alignment of the administrative responsibilities of the six nations primarily responsible for the government of the 16 Colonies and Territories of the South Pacific (now associated, for consultation only, in the South Pacific Com mission) .

We soon should know about the first. So far as the second is concerned, we only can await the slow grinding of the mills of the Canberra gods.

Throughout Papua and New Guinea, Mr. Hasluck is held in respect, because of his ability, and because no other Australian Minister for Territories has shown anything like his interest and activity in relation to Territory affairs.

But—where any sentiment is ex pressed—he is disliked by both official and unofficial classes because of his temperamental inability to delegate the more important tasks of administration to other and competent people.

The stubbornness—amounting to fanaticism—with which he insists that all major decisions shall be made by himself or by Canberra bureaucrats has partially crippled the New Guinea Administration chiefs, tended to demoralise the public service rank and file, and

rendered the Legislative Council practically useless as an instru ment of government.

Much has been accomplished in P-NG—but it has been mostly by weight of money, rather than by Administration team-work. So much more could have been done if the eagerness and skill of the public officials, and the practical know how of the unofficials had been harnessed, by wise Ministerial guid ance, to the tens of millions which Australia has made available, as a free gift, since 1950.

Every major Territory and Colony of the South Pacific today is seek ing help and/or guidance—especially Australian and Dutch New Guinea, the Solomons, the New Hebrides, Fiji, Western Samoa.

A general revision of constitutional powers and practices, and a con sideration of the possibility of closer relations between these Territories, are needed; and Australia, as the chief country of the South Pacific, should give a lead.

It may well be that our friendly neighbours in New Caledonia and French Oceania where recent political events clearly show a need for policy re-orientations—would be glad to join in.

Probably, of all the Ministers in office today, none is better qualified to plan and speak, in relation to South Pacific affairs generally, than Mr. R. G. Casey, Australia’s Minister for External Affairs. Aus tralian policy, directed and shaped by Messrs. Menzies and Casey, could establish a new era in South Pacific international affairs. ☆ ☆ ☆

Could Land Hunger Be

Satisfied in Solomons?

TROUBLES based on the owner ship and availability of land are boiling up in all the Territories in the South Pacific. Some could be serious, very soon.

There are three main factors. The

chief one is the recovery and steac growth of the indigenous populatior especially in the Polynesian ar part-Polynesian communities. (For years ago, every population was d< dining.) Another is a natural d< mand for land made by the Asia races which have settled in tl Islands —especially the Indians i Fiji. The third is the large-sca alienation of land bought by in migrant Europeans from the natu owners around the turn of tl century.

Various recent incidents point 1 a worsening problem.

The virile Micronesian peop have over-populated the Gilbe Islands atolls, and new lands ai being sought for them. Only a fe weeks ago, Gilbertese who had bee transplanted to the Phoenix Islam atolls —without success —were move on again to the western Solomon!

Surveys show that Fiji’s availab land, suitable in soil and locatio is not greatly in excess of the for« seeable needs of the growing Fijia population. Meanwhile, the ir dustrious Indian community of Fi. now in excess of 175,000, are insis; ing that, if they are to experient orderly growth and developmer the Indian people must have land.

There were some sharp exchange in Samoa last month, over lar matters. The Samoan population now 100,000, and growing fast. TB new Legislative Assembly, with ne powers, is taking a lively interest ; land ownership. A section of tM Samoan members argue that certa:, classes of lands which long ago we:: alienated from native ownershj should go back to the districts an villages. The High Commission* has reminded them that preser land dispositions were fixed by 8 international commission after e:: haustive inquiry and “should coi tinue to be fully respected”.

But European and part-Europes interests in Samoa, whose land righr now are regarded as threaten© want a more definite reassuram than that; and some very stror representations have been made the High Commissioner and to tK NZ Government.

In Tonga, as land leases held I Europeans expire, they are practically every case not renewed! the lands return to occupation T the Tongan population, which steadily increasing.

This problem of land availabilii. is general.

But it is not seen in the Briti.i Solomon Islands—the largest arcld pelago, next to New Guinea, in tld South Pacific, and one of the mo fertile. There are only 100,000 peopj there, and room for many million* If there was a greater degree union between these various Terr'; tories, there would be room in tld Solomons for all the peoples of the South Pacific, for i long time to come.