Sharp Legco Discussion On

Fiji Swallows its Taxation Pill

Sharp Legco Discussion On Leave Privileges

Burma December, there were some lively demonstrations in Fiji in relation to financial and economic matters—but all seem to have ended in the air except a decision to reduce the proposed pilotage charges by half. (See p. 118).

The are the events of the period HESE are tne eveuu> u referred to— council • When the Leg N mber 21, opened its session on Novemoe , the Government v a^ U of exports, duction in the val^ e f failure of C° lon ys mal expendimeet the needs of normal expc ture, and (in consequence) an crease in persona l income tax. a m charges on all J l ™ po ™ s embers 0 f • The non-official Legco then flatly refusedi the mated expenditure m the Govern ment’s Budget, unW they we shown how the camea out the Fiscal Committees request

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against new taxation packed the Suva Town Hall on November 26. and demanded greater economy in administration, and the develop policies which would better provide for the Colony’s needs, • A struggle between the Finance section of the Government, and the unofficial members, came to a head Legislative Council on De cember 4 |r he n Mr W. G. Johnson amend ment to the adoption of the Estimates, that the o-rant for the nrovision of leave ° n a transpor taUon for public servants be redU ced by £42.000. Johnson amendment was defeated by 2Q votes t 0 10 There “official” members (mostly

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heads of Departments) and 14 non official members (elected and nom non-officials voted with the Departmental heads. But e ven i they had not, the Budget would have been put through by the Govern ment, using its official majority.

Search for Economics The Finance Secretary, (Mr. E. R.

Bevington) again and again chal lenged the non-official opponents of his budget to show where greater economies could be effected with out wrecking the administrative machinery. , ... .

This eventually brought the ls ?^ e down to a consideration of tne £lOO,OOO or so of annual expendi ture, represented in “leave and passage privileges”. (See special article on page 47).

Acrimonious Discussion

The non-official members turned their guns heavily upon the cost of leave privileges, and urged that all public servants should postpone their leave during the critical months of 1959, and thus save £42,000.

The official members pointed out that officials had come to Fiji on a clear understanding regarding salaries and privileges, and any such change would be a breach of con tract.

They said that it was becoming increasingly difficult to get skilled and experienced administrative officers the Fiji administration might be adversely affected.

Non-official members retorted that they thought they could take care of that.

The discussion at times became a little acrimonious.

Mr. A. I. N. Deoki, an Indian member, pointed out that the non official members had spent a week trying to effect economies; but the Government, using its official majority, was rejecting all proposals.

“Let us abolish the Select Com mittee and have an open go in the Council here, and not waste our time in the Select Committee”, said Mr. Deoki.

“. . .If the Government is going to threaten that officers, being de prived of some of their nrivileges, are likely to leave, I will make a threat myself—that we will run this country ourselves.’

Education v. Economic Needs

The discussion continued over several days, and brought out in teresting points.

The new Finance Secretary, Mr.

Bevington, meeting a steady barrage of criticism, acquitted himself well —considering that he had only re turned to Fiji six weeks before, after a lengthy period of service in Borneo; and was associated with an equally new Governor.

Mr. H. P. Ritchie, Deputy Finance Secretary, pointed out that taxation per head now was £2 above the 1956 level—and of that £2, 24/6 was absorbed by additional medical and education services. Expenditure on education had increased by 123 per cent, between 1953 and 1959.

He argued that, under present conditions in Fiji, it would be wise to give less thought to social ser vices, and more to strengthening the Colony’s economy.

Mr. Ritchie thought it unfortunate that it was necessary to increase in come tax—if possible, other ways should be found. If income tax went too high, capital might be steered away from Fiji—and that should be avoided. • Finally, on December 11, the Council accepted the controversial 1959 Budget (which provides for an expenditure of £6,712,177, and in creased taxation).